HCS HB 1421 -- JOB TRAINING FOR RETAINED JOBS

SPONSOR:  Dempsey

COMMITTEE ACTION:  Voted "do pass" by the Committee on Job
Creation and Economic Development by a vote of 16 to 0 with 1
present.

This substitute allows community college districts to enter into
project agreements, with the approval of the Department of
Economic Development after consultation with the Office of
Administration, with employers who have retained jobs in a stable
industry.  The substitute specifies the requirements for
qualifying employers and defines "stable industry" as one which
has maintained at least 100 employees per year, has agreed to
make a $1 million capital investment, and is at risk of leaving
the state.  Community colleges will provide job training, skills
assessments, and training facilities among other services and may
subcontract with other public or private colleges and
governmental agencies.  The agreements may provide that program
costs be met by receipt of retained jobs credits from
withholding, based on 2.5% of the gross wages paid to employees
in the first 100 retained jobs and 1.5% for any additional
retained jobs.  The employer is responsible for meeting any
shortfall in withholdings.  Community college districts may issue
industrial retained job training certificates to provide funds
for the payment of costs of the programs, with a statewide cap of
$25 million.  The substitute also sets timetables for the
approval of projects; establishes special funds; and regulates
the disbursal of moneys to those funds, certification of
withholdings, and borrowing for and issuance of certificates by
community college districts.

The substitute prohibits a project from using this program if it
is also using the New Jobs Training Program.

The provisions of the substitute will expire six years from the
effective date and no certificates can be sold after July 1,
2014.

FISCAL NOTE:  Not available at time of printing.

PROPONENTS:  Supporters say that the bill is an innovative tool
that can be used for job retention and workforce development
throughout the state and will compliment the Missouri customized
training program.  Missouri does not have a job retention
program, which puts the state at a great disadvantage when
competing for new businesses and jobs.  The customized training
program is the only tool employers have to train their workforce,
but it has seen decreased funding in recent years.  The fast pace
at which technology changes requires that workers be retrained
more frequently than in the past.  The bill will improve the
quality of the state's workforce, increase productivity, retain
and upgrade skills, and create growth opportunities for
businesses.

Testifying for the bill were Representatives Dempsey and Jetton;
Kansas City Business and Technical College; Harley-Davidson Motor
Company; Missouri Economic Development Council; City of Kansas
City; Mineral Area College; Centene Corporation; Missouri Chamber
of Commerce and Industry; Missouri Chamber Federation; St. Louis
Regional Commerce and Growth Association; and Missouri AFL-CIO.

OPPOSITION:  There was no opposition voiced to the committee.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:15 am