FIRST REGULAR SESSION [TRULY AGREED TO AND FINALLY PASSED] SENATE COMMITTEE SUBSTITUTE FOR HOUSE BILL NO TH GENERAL ASSEMBLY AN ACT

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1 FIRST REGULAR SESSION [TRULY AGREED TO AND FINALLY PASSED] SENATE COMMITTEE SUBSTITUTE FOR HOUSE BILL NO TH GENERAL ASSEMBLY 0733S.03T 2013 AN ACT To repeal sections , , , , , , , , , , , , , , , , , , , , , , , , , and , RSMo, and to enact in lieu thereof ten new sections relating to job training programs, with an emergency clause for a certain section. Be it enacted by the General Assembly of the state of Missouri, as follows: Section A. Sections , , , , , , , , , , , , , , , , , , , , , , , , , and , 4 RSMo, are repealed and ten new sections enacted in lieu thereof, to be known as sections , , , , , , , , , and , to read as follows: This section, section , and sections to [, and 2 sections to ] shall be known and may be cited as the "Jobs Now Act" There shall be created a "Jobs Now Recommendation Committee", comprised of 4 representatives of the department of economic development, the department of agriculture, the 5 department of natural resources, and the department of transportation. The committee shall 6 establish application materials and procedures for development agencies to apply to the board 7 for grants or low-interest or interest-free loans for the purpose of funding jobs now projects Applications shall be submitted simultaneously to the committee and the board. The 9 committee shall review the applications and prepare and submit analyses and recommendations EXPLANATION Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language.

2 SCS HB to the board for a determination as to approval or denial of grants or loans from the jobs now 11 fund In reviewing applications, the board shall give preference to redevelopment projects 13 that protect natural resources or rehabilitate existing dilapidated or inadequate infrastructure in 14 areas defined under section After reviewing applications and such other information as the board may require, the 16 board may grant all or a part of a grant or loan request, provided the board determines: 17 (1) The jobs now project: 18 (a) Will not happen without the grant or loan from the board; or 19 (b) Will have a significant local economic impact; or 20 (c) Demonstrates high levels of job creation; 21 (2) In the case of a low-interest or interest-free loan, the jobs now project will generate 22 sufficient revenues or the borrower will otherwise have sufficient revenues available to enable 23 the borrower to repay the loan to the jobs now fund, along with any interest to be charged; and 24 (3) No loan or grant may exceed two million dollars The repeal and reenactment of sections [,] and , [and ,] and the enactment of sections , , , , and shall 3 expire on January 1, 2006, if no essential industry retention projects have been approved by the 4 department of economic development by December 31, If an essential industry retention 5 project has been approved by the department of economic development by December 31, 2005, 6 the repeal and reenactment of sections [,] and , [and ,] and the enactment 7 of sections , , , , and shall expire on January 1, Notwithstanding any other provision of law to the contrary, the time for approval of 9 essential industry retention projects as identified in subsection 1 of this section is extended until 10 December 31, 2007, and if an essential industry retention project has been approved by the 11 department of economic development by December 31, 2007, the provisions of subsection 1 of 12 this section shall expire on January 1, The provisions of sections to shall be known and may be 2 cited as the "Tax Credit Accountability Act of 2004" As used in sections to , the following terms mean: 4 (1) "Administering agency", the state agency or department charged with administering 5 a particular tax credit program, as set forth by the program's enacting statute; where no 6 department or agency is set forth, the department of revenue; 7 (2) "Agricultural tax credits", the agricultural product utilization contributor tax credit 8 created pursuant to section , the new generation cooperative incentive tax credit created 9 pursuant to section , the family farm breeding livestock loan tax credit created under

3 SCS HB section , the qualified beef tax credit created under section , and the wine and 11 grape production tax credit created pursuant to section ; 12 (3) "All tax credit programs", or "any tax credit program", the tax credit programs 13 included in the definitions of agricultural tax credits, business recruitment tax credits, community 14 development tax credits, domestic and social tax credits, entrepreneurial tax credits, 15 environmental tax credits, financial and insurance tax credits, housing tax credits, redevelopment 16 tax credits, and training and educational tax credits; 17 (4) "Business recruitment tax credits", the business facility tax credit created pursuant 18 to sections to and section , the enterprise zone tax benefits created 19 pursuant to sections to , the business use incentives for large-scale development 20 programs created pursuant to sections to , the development tax credits created 21 pursuant to sections to , the rebuilding communities tax credit created pursuant 22 to section , the film production tax credit created pursuant to section , the 23 enhanced enterprise zone created pursuant to sections to , and the Missouri 24 quality jobs program created pursuant to sections to ; 25 (5) "Community development tax credits", the neighborhood assistance tax credit created 26 pursuant to sections to , the family development account tax credit created 27 pursuant to sections to , the dry fire hydrant tax credit created pursuant to 28 section , and the transportation development tax credit created pursuant to section ; 30 (6) "Domestic and social tax credits", the youth opportunities tax credit created pursuant 31 to section and sections to , the shelter for victims of domestic 32 violence created pursuant to section , the senior citizen or disabled person property tax 33 credit created pursuant to sections to , the special needs adoption tax credit and 34 children in crisis tax credit created pursuant to sections to , the maternity home 35 tax credit created pursuant to section , the surviving spouse tax credit created pursuant 36 to section , the residential treatment agency tax credit created pursuant to section , the pregnancy resource center tax credit created pursuant to section , the food 38 pantry tax credit created pursuant to section , the health care access fund tax credit 39 created pursuant to section , the residential dwelling access tax credit created pursuant 40 to section , and the shared care tax credit created pursuant to section ; 41 (7) "Entrepreneurial tax credits", the capital tax credit created pursuant to sections to , the certified capital company tax credit created pursuant to sections to , the seed capital tax credit created pursuant to sections to , the new 44 enterprise creation tax credit created pursuant to sections to , the research tax 45 credit created pursuant to section , the small business incubator tax credit created

4 SCS HB pursuant to section , the guarantee fee tax credit created pursuant to section , and 47 the new generation cooperative tax credit created pursuant to sections to ; 48 (8) "Environmental tax credits", the charcoal producer tax credit created pursuant to 49 section , the wood energy tax credit created pursuant to sections to , and 50 the alternative fuel stations tax credit created pursuant to section ; 51 (9) "Financial and insurance tax credits", the bank franchise tax credit created pursuant 52 to section , the bank tax credit for S corporations created pursuant to section , 53 the exam fee tax credit created pursuant to section , the health insurance pool tax credit 54 created pursuant to section , the life and health insurance guaranty tax credit created 55 pursuant to section , the property and casualty guaranty tax credit created pursuant to 56 section , and the self-employed health insurance tax credit created pursuant to section ; 58 (10) "Housing tax credits", the neighborhood preservation tax credit created pursuant to 59 sections to , the low-income housing tax credit created pursuant to sections to , and the affordable housing tax credit created pursuant to sections to ; 62 (11) "Recipient", the individual or entity who is the original applicant for and who 63 receives proceeds from a tax credit program directly from the administering agency, the person 64 or entity responsible for the reporting requirements established in section ; 65 (12) "Redevelopment tax credits", the historic preservation tax credit created pursuant 66 to sections to , the brownfield redevelopment program tax credit created 67 pursuant to sections to , the community development corporations tax credit 68 created pursuant to sections to , the infrastructure tax credit created pursuant to 69 subsection 6 of section , the bond guarantee tax credit created pursuant to section , the disabled access tax credit created pursuant to section , the new markets tax 71 credit created pursuant to section , and the distressed areas land assemblage tax credit 72 created pursuant to section ; 73 (13) "Training and educational tax credits", the [community college] Missouri works 74 new jobs tax credit and Missouri works retained jobs credit created pursuant to sections 7 5 [ to ] to A claimant who is unemployed and has been determined to be an insured 2 worker shall be eligible for benefits for any week only if the deputy finds that: 3 (1) The claimant has registered for work at and thereafter has continued to report at an 4 employment office in accordance with such regulations as the division may prescribe; 5 (2) The claimant is able to work and is available for work. No person shall be deemed 6 available for work unless such person has been and is actively and earnestly seeking work. Upon

5 SCS HB the filing of an initial or renewed claim, and prior to the filing of each weekly claim thereafter, 8 the deputy shall notify each claimant of the number of work search contacts required to constitute 9 an active search for work. No person shall be considered not available for work, pursuant to this 10 subdivision, solely because he or she is a substitute teacher or is on jury duty. A claimant shall 11 not be determined to be ineligible pursuant to this subdivision because of not actively and 12 earnestly seeking work if: 13 (a) The claimant is participating in training approved pursuant to Section 236 of the 14 Trade Act of 1974, as amended, (19 U.S.C.A. Sec. 2296, as amended); 15 (b) The claimant is temporarily unemployed through no fault of his or her own and has 16 a definite recall date within eight weeks of his or her first day of unemployment; however, upon 17 application of the employer responsible for the claimant's unemployment, such eight-week period 18 may be extended not to exceed a total of sixteen weeks at the discretion of the director; 19 (3) The claimant has reported [in person] to an office of the division as directed by the 20 deputy, but at least once every four weeks, except that a claimant shall be exempted from the 21 reporting requirement of this subdivision if: 22 (a) The claimant is claiming benefits in accordance with division regulations dealing 23 with partial or temporary total unemployment; or 24 (b) The claimant is temporarily unemployed through no fault of his or her own and has 25 a definite recall date within eight weeks of his or her first day of unemployment; or 26 (c) [The claimant resides in a county with an unemployment rate, as published by the 27 division, of ten percent or more and in which the county seat is more than forty miles from the 28 nearest division office; 29 (d)] The director of the division of employment security has determined that the claimant 30 belongs to a group or class of workers whose opportunities for reemployment will not be 31 enhanced by reporting [in person], or is prevented from reporting due to emergency conditions 32 that limit access by the general public to an office that serves the area where the claimant resides, 33 but only during the time such circumstances exist Ineligibility pursuant to this subdivision shall begin on the first day of the week which the 36 claimant was scheduled to claim and shall end on the last day of the week preceding the week 37 during which the claimant does report [in person] to the division's office; 38 (4) Prior to the first week of a period of total or partial unemployment for which the 39 claimant claims benefits he or she has been totally or partially unemployed for a waiting period 40 of one week. No more than one waiting week will be required in any benefit year. During 41 calendar year 2008 and each calendar year thereafter, the one-week waiting period shall become 42 compensable once his or her remaining balance on the claim is equal to or less than the

6 SCS HB compensable amount for the waiting period. No week shall be counted as a week of total or 44 partial unemployment for the purposes of this subsection unless it occurs within the benefit year 45 which includes the week with respect to which the claimant claims benefits; 46 (5) The claimant has made a claim for benefits within fourteen days from the last day 47 of the week being claimed. The fourteen-day period may, for good cause, be extended to 48 twenty-eight days; 49 (6) The claimant has reported to an employment office to participate in a reemployment 50 assessment and reemployment services as directed by the deputy or designated staff of an 51 employment office, unless the deputy determines that good cause exists for the claimant's failure 52 to participate in such reemployment assessment and reemployment services. For purposes of this 53 section, "reemployment services" may include, but not be limited to, the following: 54 (a) Providing an orientation to employment office services; 55 (b) Providing job search assistance; and 56 (c) Providing labor market statistics or analysis; 57 Ineligibility under this subdivision shall begin on the first day of the week which the claimant 58 was scheduled to report for the reemployment assessment or reemployment services and shall 59 end on the last day of the week preceding the week during which the claimant does report in 60 person to the employment office for such reemployment assessment or reemployment services; 61 (7) The claimant is participating in reemployment services, such as job search assistance 62 services, as directed by the deputy if the claimant has been determined to be likely to exhaust 63 regular benefits and to need reemployment services pursuant to a profiling system established 64 by the division, unless the deputy determines that: 65 (a) The individual has completed such reemployment services; or 66 (b) There is justifiable cause for the claimant's failure to participate in such 67 reemployment services A claimant shall be ineligible for waiting week credit or benefits for any week for 69 which the deputy finds he or she is or has been suspended by his or her most recent employer for 70 misconduct connected with his or her work. Suspensions of four weeks or more shall be treated 71 as discharges (1) Benefits based on "service in employment", [defined] described in subsections 73 7 and 8 of section , shall be payable in the same amount, on the same terms and subject 74 to the same conditions as compensation payable on the basis of other service subject to this law; 75 except that: 76 (a) With respect to service performed in an instructional, research, or principal 77 administrative capacity for an educational institution, benefits shall not be paid based on such 78 services for any week of unemployment commencing during the period between two successive

7 SCS HB academic years or terms, or during a similar period between two regular but not successive terms, 80 or during a period of paid sabbatical leave provided for in the individual's contract, to any 81 individual if such individual performs such services in the first of such academic years (or terms) 82 and if there is a contract or a reasonable assurance that such individual will perform services in 83 any such capacity for any educational institution in the second of such academic years or terms; 84 (b) With respect to services performed in any capacity (other than instructional, research, 85 or principal administrative capacity) for an educational institution, benefits shall not be paid on 86 the basis of such services to any individual for any week which commences during a period 87 between two successive academic years or terms if such individual performs such services in the 88 first of such academic years or terms and there is a contract or a reasonable assurance that such 89 individual will perform such services in the second of such academic years or terms; 90 (c) With respect to services described in paragraphs (a) and (b) of this subdivision, 91 benefits shall not be paid on the basis of such services to any individual for any week which 92 commences during an established and customary vacation period or holiday recess if such 93 individual performed such services in the period immediately before such vacation period or 94 holiday recess, and there is reasonable assurance that such individual will perform such services 95 immediately following such vacation period or holiday recess; 96 (d) With respect to services described in paragraphs (a) and (b) of this subdivision, 97 benefits payable on the basis of services in any such capacity shall be denied as specified in 98 paragraphs (a), (b), and (c) of this subdivision to any individual who performed such services at 99 an educational institution while in the employ of an educational service agency, and for this 100 purpose the term "educational service agency" means a governmental agency or governmental 101 entity which is established and operated exclusively for the purpose of providing such services 102 to one or more educational institutions. 103 (2) If compensation is denied for any week pursuant to paragraph (b) or (d) of 104 subdivision (1) of this subsection to any individual performing services at an educational 105 institution in any capacity (other than instructional, research or principal administrative capacity), 106 and such individual was not offered an opportunity to perform such services for the second of 107 such academic years or terms, such individual shall be entitled to a retroactive payment of the 108 compensation for each week for which the individual filed a timely claim for compensation and 109 for which compensation was denied solely by reason of paragraph (b) or (d) of subdivision (1) 110 of this subsection (1) A claimant shall be ineligible for waiting week credit, benefits or shared work 112 benefits for any week for which he or she is receiving or has received remuneration exceeding 113 his or her weekly benefit amount or shared work benefit amount in the form of:

8 SCS HB (a) Compensation for temporary partial disability pursuant to the workers' compensation 115 law of any state or pursuant to a similar law of the United States; 116 (b) A governmental or other pension, retirement or retired pay, annuity, or other similar 117 periodic payment which is based on the previous work of such claimant to the extent that such 118 payment is provided from funds provided by a base period or chargeable employer pursuant to 119 a plan maintained or contributed to by such employer; but, except for such payments made 120 pursuant to the Social Security Act or the Railroad Retirement Act of 1974 (or the corresponding 121 provisions of prior law), the provisions of this paragraph shall not apply if the services performed 122 for such employer by the claimant after the beginning of the base period (or remuneration for 123 such services) do not affect eligibility for or increase the amount of such pension, retirement or 124 retired pay, annuity or similar payment. 125 (2) If the remuneration referred to in this subsection is less than the benefits which would 126 otherwise be due, the claimant shall be entitled to receive for such week, if otherwise eligible, 127 benefits reduced by the amount of such remuneration, and, if such benefit is not a multiple of one 128 dollar, such amount shall be lowered to the next multiple of one dollar. 129 (3) Notwithstanding the provisions of subdivisions (1) and (2) of this subsection, if a 130 claimant has contributed in any way to the Social Security Act or the Railroad Retirement Act 131 of 1974, or the corresponding provisions of prior law, no part of the payments received pursuant 132 to such federal law shall be deductible from the amount of benefits received pursuant to this 133 chapter A claimant shall be ineligible for waiting week credit or benefits for any week for 135 which or a part of which he or she has received or is seeking unemployment benefits pursuant 136 to an unemployment insurance law of another state or the United States; provided, that if it be 137 finally determined that the claimant is not entitled to such unemployment benefits, such 138 ineligibility shall not apply (1) A claimant shall be ineligible for waiting week credit or benefits for any week for 140 which the deputy finds that such claimant's total or partial unemployment is due to a stoppage 141 of work which exists because of a labor dispute in the factory, establishment or other premises 142 in which such claimant is or was last employed. In the event the claimant secures other 143 employment from which he or she is separated during the existence of the labor dispute, the 144 claimant must have obtained bona fide employment as a permanent employee for at least the 145 major part of each of two weeks in such subsequent employment to terminate his or her 146 ineligibility. If, in any case, separate branches of work which are commonly conducted as 147 separate businesses at separate premises are conducted in separate departments of the same 148 premises, each such department shall for the purposes of this subsection be deemed to be a

9 SCS HB separate factory, establishment or other premises. This subsection shall not apply if it is shown 150 to the satisfaction of the deputy that: 151 (a) The claimant is not participating in or financing or directly interested in the labor 152 dispute which caused the stoppage of work; and 153 (b) The claimant does not belong to a grade or class of workers of which, immediately 154 preceding the commencement of the stoppage, there were members employed at the premises 155 at which the stoppage occurs, any of whom are participating in or financing or directly interested 156 in the dispute. 157 (2) "Stoppage of work" as used in this subsection means a substantial diminution of the 158 activities, production or services at the establishment, plant, factory or premises of the employing 159 unit. This definition shall not apply to a strike where the employees in the bargaining unit who 160 initiated the strike are participating in the strike. Such employees shall not be eligible for waiting 161 week credit or benefits during the period when the strike is in effect, regardless of diminution, 162 unless the employer has been found guilty of an unfair labor practice by the National Labor 163 Relations Board or a federal court of law for an act or actions preceding or during the strike On or after January 1, 1978, benefits shall not be paid to any individual on the basis 165 of any services, substantially all of which consist of participating in sports or athletic events or 166 training or preparing to so participate, for any week which commences during the period between 167 two successive sport seasons (or similar periods) if such individual performed such services in 168 the first of such seasons (or similar periods) and there is a reasonable assurance that such 169 individual will perform such services in the later of such seasons (or similar periods) Benefits shall not be payable on the basis of services performed by an alien, unless 171 such alien is an individual who was lawfully admitted for permanent residence at the time such 172 services were performed, was lawfully present for purposes of performing such services, or was 173 permanently residing in the United States under color of law at the time such services were 174 performed (including an alien who was lawfully present in the United States as a result of the 175 application of the provisions of Section 212(d)(5) of the Immigration and Nationality Act). 176 (1) Any data or information required of individuals applying for benefits to determine 177 whether benefits are not payable to them because of their alien status shall be uniformly required 178 from all applicants for benefits. 179 (2) In the case of an individual whose application for benefits would otherwise be 180 approved, no determination that benefits to such individual are not payable because of such 181 individual's alien status shall be made except upon a preponderance of the evidence A claimant shall be ineligible for waiting week credit or benefits for any week such 183 claimant has an outstanding penalty which was assessed based upon an overpayment of benefits, 184 as provided for in subsection 9 of section

10 SCS HB The directors of the division of employment security and the division of workforce 186 development shall submit to the governor, the speaker of the house of representatives, and the 187 president pro tem of the senate no later than October 15, 2006, a report outlining their 188 recommendations for how to improve work search verification and claimant reemployment 189 activities. The recommendations shall include, but not limited to how to best utilize 190 "greathires.org", and how to reduce the average duration of unemployment insurance claims. 191 Each calendar year thereafter, the directors shall submit a report containing their 192 recommendations on these issues by December thirty-first of each year For purposes of this section, a claimant may satisfy reporting requirements 194 provided under this section by reporting by internet communication or any other means 195 deemed acceptable by the division of employment security The following additional terms used in sections to shall 2 mean: 3 (1) "Agreement", the agreement between a qualified company, a community college 4 district, and the department concerning a training project. Any such agreement shall 5 comply with the provisions of section ; 6 (2) "Board of trustees", the board of trustees of a community college district 7 established under the provisions of chapter 178; 8 (3) "Certificate", a new or retained jobs training certificate issued under section ; 10 (4) "Committee", the Missouri works job training joint legislative oversight 11 committee, established under the provisions of section ; 12 (5) "Department", the Missouri department of economic development; 13 (6) "Employee", a person employed by a qualified company; 14 (7) "Full-time employee", an employee of the qualified company who is scheduled 15 to work an average of at least thirty-five hours per week for a twelve-month period, and 16 one to whom the qualified company offers health insurance and pays at least fifty percent 17 of such insurance premiums; 18 (8) "Local education agency", a community college, two-year state technical college, 19 or technical career education center; 20 (9) "Missouri works training program", the training program established under 21 sections to ; 22 (10) "New capital investment", costs incurred by the qualified company at the 23 project facility after acceptance by the qualified company of the proposal for benefits from 24 the department or the approval of the notice of intent, whichever occurs first, for real or 25 personal property, that may include the value of finance or capital leases for real or

11 SCS HB personal property for the term of such lease at the project facility executed after 27 acceptance by the qualified company of the proposal for benefits from the department or 28 approval of the notice of intent; 29 (11) "New job", the number of full-time employees located at the project facility 30 that exceeds the project facility base employment less any decrease in the number of 31 full-time employees at related facilities below the related facility base employment. No job 32 that was created prior to the date of the notice of intent shall be deemed a new job. An 33 employee who spends less than fifty percent of his or her work time at the facility is still 34 considered to be located at a facility if he or she receives his or her directions and control 35 from that facility, is on the facility's payroll, one hundred percent of the employee's income 36 from such employment is Missouri income, and the employee is paid at or above the 37 applicable percentage of the county s average wage; 38 (12) "New jobs credit", the credit from withholding remitted by a qualified 39 company provided under subsection 6 of section ; 40 (13) "Notice of intent", a form developed by the department, completed by the 41 qualified company, and submitted to the department that states the qualified company's 42 intent to request benefits under this program; 43 (14) "Project facility", the building or buildings used by a qualified company at 44 which new or retained jobs and any new capital investment are or will be located. A 45 project facility may include separate buildings located within sixty miles of each other such 46 that their purpose and operations are interrelated, provided that, if the buildings making 47 up the project facility are not located within the same county, the average wage of the new 48 payroll must exceed the applicable percentage of the highest county average wage among 49 the counties in which the buildings are located. Upon approval by the department, a 50 subsequent project facility may be designated if the qualified company demonstrates a 51 need to relocate to the subsequent project facility at any time during the project period; 52 (15) "Project facility base employment", the greater of the number of full-time 53 employees located at the project facility on the date of the notice of intent or, for the 54 twelve-month period prior to the date of the notice of intent, the average number of 55 full-time employees located at the project facility. In the event the project facility has not 56 been in operation for a full twelve-month period, the average number of full-time 57 employees for the number of months the project facility has been in operation prior to the 58 date of the notice of intent; 59 (16) "Qualified company", a firm, partnership, joint venture, association, private 60 or public corporation whether organized for profit or not, or headquarters of such entity 61 registered to do business in Missouri that is the owner or operator of a project facility,

12 SCS HB offers health insurance to all full-time employees of all facilities located in this state, and 63 pays at least fifty percent of such insurance premiums. For the purposes of sections to , the term "qualified company" shall not mean: 65 (a) Gambling establishments (NAICS industry group 7132); 66 (b) Retail trade establishments (NAICS sectors 44 and 45), except with respect to 67 any company headquartered in this state with a majority of its full-time employees engaged 68 in operations not within the NAICS codes specified in this subdivision; 69 (c) Food services and drinking places (NAICS subsector 722); 70 (d) Public utilities (NAICS 221 including water and sewer services); 71 (e) Any company that is delinquent in the payment of any nonprotested taxes or 72 any other amounts due the state or federal government or any other political subdivision 73 of this state; 74 (f) Any company requesting benefits for retained jobs that has filed for or has 75 publicly announced its intention to file for bankruptcy protection. However, a company 76 that has filed for or has publicly announced its intention to file for bankruptcy may be a 77 qualified company provided that such company: 78 a. Certifies to the department that it plans to reorganize and not to liquidate; and 79 b. After its bankruptcy petition has been filed, it produces proof, in a form and at 80 times satisfactory to the department, that it is not delinquent in filing any tax returns or 81 making any payment due to the state of Missouri, including but not limited to all tax 82 payments due after the filing of the bankruptcy petition and under the terms of the plan 83 of reorganization; 84 (g) Educational services (NAICS sector 61); 85 (h) Religious organizations (NAICS industry group 8131); 86 (i) Public administration (NAICS sector 92); 87 (j) Ethanol distillation or production; or 88 (k) Biodiesel production. 89 Notwithstanding any provision of this section to the contrary, the headquarters, 90 administrative offices, or research and development facilities of an otherwise excluded 91 business may qualify for benefits if the offices or facilities serve a multistate territory. In 92 the event a national, state, or regional headquarters operation is not the predominant 93 activity of a project facility, the jobs and investment of such operation shall be considered 94 eligible for benefits under this section if the other requirements are satisfied; 95 (17) "Related company": 96 (a) A corporation, partnership, trust, or association controlled by the qualified 97 company;

13 SCS HB (b) An individual, corporation, partnership, trust, or association in control of the 99 qualified company; or 100 (c) Corporations, partnerships, trusts, or associations controlled by an individual, 101 corporation, partnership, trust, or association in control of the qualified company. As used 102 in this subdivision, "control of a corporation" shall mean ownership, directly or indirectly, 103 of stock possessing at least fifty percent of the total combined voting power of all classes 104 of stock entitled to vote; "control of a partnership or association" shall mean ownership 105 of at least fifty percent of the capital or profits interest in such partnership or association; 106 "control of a trust" shall mean ownership, directly or indirectly, of at least fifty percent 107 of the beneficial interest in the principal or income of such trust; and ownership shall 108 be determined as provided in Section 318 of the Internal Revenue Code of 1986, as 109 amended; 110 (18) "Related facility", a facility operated by the qualified company or a related 111 company located in this state that is directly related to the operations of the project facility 112 or in which operations substantially similar to the operations of the project facility are 113 performed; 114 (19) "Related facility base employment", the greater of the number of full-time 115 employees located at all related facilities on the date of the notice of intent or, for the 116 twelve-month period prior to the date of the notice of intent, the average number of 117 full-time employees located at all related facilities of the qualified company or a related 118 company located in this state; 119 (20) "Retained jobs", the average number of full-time employees of a qualified 120 company located at the project facility during each month for the calendar year preceding 121 the year in which the notice of intent is submitted; 122 (21) "Retained jobs credit", the credit from withholding remitted by a qualified 123 company provided under subsection 6 of section ; 124 (22) "Targeted industry", an industry or one of a cluster of industries identified 125 by the department by rule following a strategic planning process as being critical to the 126 state's economic security and growth; 127 (23) "Training program", the Missouri works training program established under 128 sections to ; 129 (24) "Training project", the project or projects established through the Missouri 130 works training program for the creation or retention of jobs by providing education and 131 training of workers; 132 (25) "Training project costs", all necessary and incidental costs of providing 133 program services through the training program, including:

14 SCS HB (a) Training materials and supplies; 135 (b) Wages and benefits of instructors, who may or may not be employed by the 136 eligible industry, and the cost of training such instructors; 137 (c) Subcontracted services; 138 (d) On-the-job training; 139 (e) Training facilities and equipment; 140 (f) Skill assessment; 141 (g) Training project and curriculum development; 142 (h) Travel directly to the training project, including a coordinated transportation 143 program for training if the training can be more effectively provided outside the 144 community where the jobs are to be located; 145 (i) Payments to third-party training providers and to the eligible industry; 146 (j) Teaching and assistance provided by educational institutions in the state of 147 Missouri; 148 (k) In-plant training analysis, including fees for professionals and necessary travel 149 and expenses; 150 (l) Assessment and preselection tools; 151 (m) Publicity; 152 (n) Instructional services; 153 (o) Rental of instructional facilities with necessary utilities; and 154 (p) Payment of the principal, premium, and interest on certificates, including 155 capitalized interest, issued to finance a project, and the funding and maintenance of a debt 156 service reserve fund to secure such certificates; 157 (26) "Training project services", includes, but shall not be limited to, the following: 158 (a) Job training, which may include, but not be limited to, preemployment training, 159 analysis of the specified training needs for a qualified company, development of training 160 plans, and provision of training through qualified training staff; 161 (b) Adult basic education and job-related instruction; 162 (c) Vocational and skill-assessment services and testing; 163 (d) Training facilities, equipment, materials, and supplies; 164 (e) On-the-job training; 165 (f) Administrative expenses equal to fifteen percent of the total training costs; 166 (g) Subcontracted services with state institutions of higher education, private 167 colleges or universities, or other federal, state, or local agencies; 168 (h) Contracted or professional services; and 169 (i) Issuance of certificates, when applicable.

15 SCS HB The department shall establish a "Missouri Works Training Program" 2 to assist qualified companies in the training of employees in new jobs and the retraining 3 or upgrading of skills of full-time employees in retained jobs as provided in sections to The training program shall be funded through appropriations to the 5 funds established under sections and The department shall, to the 6 maximum extent practicable, prioritize funding under the training program to assist 7 qualified companies in targeted industries There is hereby created the "Missouri Works Job Training Joint Legislative 9 Oversight Committee". The committee shall consist of three members of the Missouri 10 senate appointed by the president pro tempore of the senate and three members of the 11 house of representatives appointed by the speaker of the house. No more than two of the 12 members of the senate and two of the members of the house of representatives shall be 13 from the same political party. Members of the committee shall report to the governor, the 14 president pro tempore of the senate, and the speaker of the house of representatives on all 15 assistance to industries under the provisions of sections to provided during 16 the preceding fiscal year. The report of the committee shall be delivered no later than 17 October first of each year. The director of the department shall report to the committee 18 such information as the committee may deem necessary for its annual report. Members 19 of the committee shall receive no compensation in addition to their salary as members of 20 the general assembly but may receive their necessary expenses while attending the meetings 21 of the committee, to be paid out of the joint contingent fund The department shall publish guidelines and may promulgate rules and 23 regulations governing the training program. Any rule or portion of a rule, as that term is 24 defined in section , that is created under the authority delegated in this section shall 25 become effective only if it complies with and is subject to all of the provisions of chapter and, if applicable, section This section and chapter 536 are nonseverable and 27 if any of the powers vested with the general assembly pursuant to chapter 536 to review, 28 to delay the effective date, or to disapprove and annul a rule are subsequently held 29 unconstitutional, then the grant of rulemaking authority and any rule proposed or adopted 30 after August 28, 2013, shall be invalid and void The department shall make program applications and guidelines available 32 online The department may contract with other entities for the purposes of carrying out 34 the provisions of the training program established in sections to Any 35 assistance through the training program shall be provided under an agreement.

16 SCS HB Prior to the authorization of any application submitted through the training 37 program, the department shall verify the applicant's tax payment status and offset any 38 delinquencies as provided in section Any taxpayer who is awarded benefits under sections to and who 40 files for bankruptcy under Chapter 7 of the United States Bankruptcy Code, Title U.S.C., as amended shall immediately notify the department, shall forfeit such benefits, and 42 shall repay the state an amount equal to any state tax credits already redeemed and any 43 withholding taxes already retained The Missouri job development fund, formerly established in the state 2 treasury by section , shall now be known as the "Missouri Works Job Development 3 Fund" and shall be administered by the department for the training program. The fund 4 shall consist of all moneys which may be appropriated to it by the general assembly and 5 also any gifts, contributions, grants, or bequests received from federal, private or other 6 sources, including, but not limited to, any block grant or other sources of funding relating 7 to job training, school-to-work transition, welfare reform, vocational and technical 8 training, housing, infrastructure, development, and human resource investment programs 9 which may be provided by the federal government or other sources The department may provide financial assistance through the training program 11 to qualified companies that create new jobs which will result in the need for training, or 12 that make new capital investment relating directly to the retention of jobs in an amount at 13 least five times greater than the amount of any financial assistance. Financial assistance 14 may also be provided to a consortium of qualified companies organized to provide common 15 training to the consortium members' employees. Funds in the Missouri works job 16 development fund shall be appropriated, for financial assistance through the training 17 program, by the general assembly to the department and shall be administered by a local 18 educational agency certified by the department for such purpose. Except for 19 state-sponsored preemployment training, no qualified company shall receive more than 20 fifty percent of its training program costs from the Missouri works job development fund. 21 No funds shall be awarded or reimbursed to any qualified company for the training, 22 retraining, or upgrading of skills of potential employees with the purpose of replacing or 23 supplanting employees engaged in an authorized work stoppage. Upon approval by the 24 department, training project costs, except the purchase of training equipment and training 25 facilities, shall be eligible for reimbursement with funds from the Missouri works job 26 development fund. Notwithstanding any provision of law to the contrary, no qualified 27 company within a service industry shall be eligible for assistance under this subsection

17 SCS HB unless such qualified company provides services in interstate commerce, which shall mean 29 that the qualified company derives a majority of its annual revenues from out of the state The department may provide assistance, through appropriations made from the 31 Missouri works job development fund, to business and technology centers. Such assistance 32 shall not include the lending of the state's credit for the payment of any liability of the 33 fund. Such centers may be established by Missouri community colleges, or state-owned 34 postsecondary technical colleges, to provide business and training services for growth 35 industries as determined by current labor market information The Missouri community college job training program fund, formerly 2 established in the state treasury by section , shall now be known as the "Missouri 3 Works Community College New Jobs Training Fund" and shall be administered by the 4 department for the training program. The department of revenue shall credit to the fund, 5 as received, all new jobs credits. The fund shall also consist of any gifts, contributions, 6 grants, or bequests received from federal, private, or other sources. The general assembly, 7 however, shall not provide for any transfer of general revenue funds into the fund. Moneys 8 in the fund shall be disbursed to the department under regular appropriations by the 9 general assembly. The department shall disburse such appropriated funds in a timely 10 manner into the special funds established by community college districts for training 11 projects, which funds shall be used to pay training project costs. Such disbursements shall 12 be made to the special fund for each training project in the same proportion as the new 13 jobs credit remitted by the qualified company participating in such project bears to the 14 total new jobs credit from withholding remitted by all qualified companies participating 15 in projects during the period for which the disbursement is made. All moneys remaining 16 in the fund at the end of any fiscal year shall not lapse to the general revenue fund, as 17 provided in section , but shall remain in the fund The Missouri community college job retention training program fund, formerly 19 established in the state treasury by section , shall now be known as the "Missouri 20 Works Community College Job Retention Training Fund" and shall be administered by 21 the department for the Missouri works training program. The department of revenue shall 22 credit to the fund, as received, all retained jobs credits. The fund shall also consist of any 23 gifts, contributions, grants, or bequests received from federal, private, or other sources. 24 The general assembly, however, shall not provide for any transfer of general revenue funds 25 into the fund. Moneys in the fund shall be disbursed to the department under regular 26 appropriations by the general assembly. The department shall disburse such appropriated 27 funds in a timely manner into the special funds established by community college districts 28 for projects, which funds shall be used to pay training program costs, including the

18 SCS HB principal, premium, and interest on certificates issued by the district to finance or 30 refinance, in whole or in part, a project. Such disbursements by the department shall be 31 made to the special fund for each project in the same proportion as the retained jobs credit 32 from withholding remitted by the qualified company participating in such project bears 33 to the total retained jobs credit from withholding remitted by qualified companies 34 participating in projects during the period for which the disbursement is made. All 35 moneys remaining in the fund at the end of any fiscal year shall not lapse to the general 36 revenue fund, as provided in section , but shall remain in the fund The department of revenue shall develop such forms as are necessary to 38 demonstrate accurately each qualified company's new jobs credit paid into the Missouri 39 works community college new jobs training fund or retained jobs credit paid into the 40 Missouri works community college job retention training fund. The new or retained jobs 41 credits shall be accounted as separate from the normal withholding tax paid to the 42 department of revenue by the qualified company. Reimbursements made by all qualified 43 companies to the Missouri works community college new jobs training fund and the 44 Missouri works community college job retention training fund shall be no less than all 45 allocations made by the department to all community college districts for all projects. The 46 qualified company shall remit the amount of the new or retained jobs credit, as applicable, 47 to the department of revenue in the same manner as provided in sections to A community college district, with the approval of the department in 50 consultation with the office of administration, may enter into an agreement to establish a 51 training project and provide training project services to a qualified company. As soon as 52 possible after initial contact between a community college district and a potential qualified 53 company regarding the possibility of entering into an agreement, the district shall inform 54 the department of the potential training project. The department shall evaluate the 55 proposed training project within the overall job training efforts of the state to ensure that 56 the training project will not duplicate other job training programs. The department shall 57 have fourteen days from receipt of a notice of intent to approve or disapprove a training 58 project. If no response is received by the qualified company within fourteen days, the 59 training project shall be deemed approved. Disapproval of any training project shall be 60 made in writing and state the reasons for such disapproval. If an agreement is entered 61 into, the district and the qualified company shall notify the department of revenue within 62 fifteen calendar days. In addition to any provisions required under subsection 5 of this 63 section for a qualified company applying to receive a retained job credit, an agreement 64 may provide, but shall not be limited to: