HOUSE BILL NO. 1451 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE RIGGS.
2946H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To amend chapter 620, RSMo, by adding thereto five new sections relating to workforce development, with a penalty provision.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 620, RSMo, is amended by adding thereto five new sections, to be 2 known as sections 620.541, 620.2022, 620.2024, 620.2026, and 620.2028, to read as follows: 620.541. 1. There is hereby created in the state department of economic 2 development the "Office of Workforce Coordinator". 3 2. The office of workforce coordinator shall be composed of one individual who 4 shall be the director. The office of workforce coordinator shall serve as a critical driver 5 of workforce development in Missouri by fostering collaboration, aligning resources, 6 and equipping individuals and businesses with the tools needed for success. 7 3. The director shall operate independently from the Missouri workforce 8 development board but shall work in collaboration with board members to achieve the 9 following: 10 (1) Identify programs, tools, best practices, and resources to support the success 11 of individuals, employers, and communities in the future of work by focusing on 12 parameters including, but not limited to: 13 (a) Define the key skills and mindsets that serve individuals and employers in the 14 future of work; 15 (b) Ensure that Missourians are ready for work and equipped with the necessary 16 education, training, skills, and competencies; and
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. HB 1451 2
17 (c) Understand the needs of small and medium-sized businesses, underserved 18 populations, and diverse regions in their digital transformation journey; 19 (2) Seamlessly integrate programs and coordinate services and make them easy 20 for all workforce system stakeholders to access and navigate by: 21 (a) Ensuring customers can easily navigate and are comprehensively served 22 across all workforce programs; and 23 (b) Aligning and leveraging resources available to support workforce 24 development efforts through interagency partnerships and collaboration; 25 (3) Understand the future of workforce needs for target populations that are left 26 behind in the current economy by: 27 (a) Acknowledging that the population in Missouri comes from diverse 28 backgrounds and faces various obstacles to achieving success. To ensure success, the 29 office of workforce coordinator needs to determine how to align and promote programs 30 to better serve underserved population areas. The office of workforce coordinator shall 31 focus on efforts to support people with disabilities and mid-career professionals seeking 32 solutions to improve their overall growth and achieve integration and advancement in 33 business; and 34 (b) Supporting all individuals including, but not limited to, people with 35 disabilities, veterans, foster youth, adult learners, and second-chance populations to 36 prepare them to achieve career success and close gaps in labor-force participation; 37 (4) Plan and encourage the application of knowledge and skills in the real-world 38 environment to develop career and college readiness where employers can coach 39 participants for career development activities and work-based learning opportunities 40 including, but not limited to: 41 (a) Virtual job shadowing that allows an individual to observe an occupation 42 through the use of videos; 43 (b) Job simulation in which an individual participates and gains experience in 44 aspects of an occupation through simulation; 45 (c) Entering into written cooperative arrangements under which employers are 46 allowed to provide instruction such as career and technical education instruction to 47 bolster job opportunities in technical and health care fields; and 48 (d) Conducting outreach to and establishing partnerships for recruitment and 49 supportive services with organizations that serve marginalized populations; 50 (5) Ensure that there is a process in place that gathers feedback continuously 51 and systematically from all partners and in a variety of methods, is reviewed regularly, 52 and is shared with partner programs in Missouri to improve experiences; HB 1451 3
53 (6) Foster awareness of and provide access to workforce support among workers 54 transitioning from declining career pathways to growing emerging jobs; 55 (7) Focus on quantum computing with expansion of skill sets and core 56 competencies toward knowledge regarding circuit processors and chips, application of 57 quantum science and technology, semiconductor retooling, new software languages, and 58 analytical and model-building skills specific to quantum computing; 59 (8) Provide timely, relevant workforce solutions that enable employers to find 60 and retain the qualified workers needed to be successful and globally competitive; and 61 (9) Assist workers in obtaining the skills necessary to fill critical occupations as 62 identified by each industry. 63 4. The office of workforce coordinator shall focus on making employment 64 resources available for individuals with disabilities by: 65 (1) Implementing a statewide strategy to facilitate economic stability for 66 individuals with disabilities; 67 (2) Promoting successful economic, social, and community integration; 68 (3) Identifying and addressing issues related to integration into the workforce; 69 (4) Working toward enhanced inclusion and equitable opportunities for 70 individuals with disabilities and addressing concerns raised by disability populations; 71 (5) Coordinating with other entities to identify and eliminate barriers to 72 prosperity for individuals with disabilities; and 73 (6) Promoting the implementation of disability support through community- 74 based initiatives and nonprofit organizations, which promotion includes, but is not 75 limited to, economic opportunities, increased access to resources, and state education 76 and outreach. 77 5. The office of workforce coordinator shall focus on making employment 78 resources available for formerly incarcerated individuals by: 79 (1) Evaluating workforce development programs for incarcerated individuals 80 and individuals reentering the community and creating an employer toolkit as a 81 resource; 82 (2) Providing information about rehabilitation and work opportunities available 83 to incarcerated individuals and formerly incarcerated individuals to promote the 84 individual's successful rehabilitation, reentry, and reintegration into the community; 85 and 86 (3) Developing and recommending training programs in conjunction with the 87 state department of corrections to provide incarcerated individuals with education, 88 training, and experience to prepare for career opportunities upon release. HB 1451 4
620.2022. 1. Sections 620.2022 to 620.2028 shall be known and may be cited as 2 the "Workforce Housing Tax Incentives Program". 3 2. As used in sections 620.2022 to 620.2028, the following terms mean: 4 (1) "Brownfield site", an abandoned, idled, or underutilized property where 5 expansion or redevelopment is complicated by real or perceived environmental 6 contamination. A "brownfield site" includes property contiguous with the site on 7 which the property is located. A "brownfield site" does not include property that has 8 been placed, or is proposed for placement, on the national priorities list established 9 under the federal Comprehensive Environmental Response, Compensation, and 10 Liability Act, 42 U.S.C. Section 9601 et seq.; 11 (2) "Community", any of the fifteen most populous cities in this state, as 12 determined by the most recent decennial census; 13 (3) "Department", the Missouri department of economic development; 14 (4) "Disaster recovery housing project", a qualified housing project located in a 15 community that is a declared state disaster as defined under section 190.275 or disaster 16 area as defined under section 184.805 and is eligible for the Federal Emergency 17 Management Agency (FEMA) Individual Assistance program; 18 (5) "Governing body", the board, the body, or the persons in whom the powers 19 of a political subdivision as a body corporate, or otherwise, are vested; 20 (6) "Grayfield site", a property meeting the following requirements: 21 (a) The property has been developed and has infrastructure in place but the 22 property's current use is outdated or prevents a better or more efficient use of the 23 property. Such property includes vacant, blighted, obsolete, or otherwise underutilized 24 property; and 25 (b) The property's improvements and infrastructure are at least twenty-five 26 years old and one or more of the following conditions exist: 27 a. Thirty percent or more of a building located on the property that is available 28 for occupancy has been vacant or unoccupied for twelve months or more; 29 b. The assessed value of the improvements on the property has decreased by 30 twenty-five percent or more; 31 c. The property is currently being used as a parking lot; or 32 d. The improvements on the property no longer exist; 33 (7) "Greenfield site", a site that does not meet the definition of a brownfield site 34 or grayfield site. A project proposed at a site located on previously undeveloped land or 35 agricultural land shall be presumed to be a greenfield site; 36 (8) "Housing business", a business that is a housing developer, housing 37 contractor, or nonprofit organization that completes a housing project in the state; HB 1451 5
38 (9) "Housing project", a project located in this state meeting the requirements of 39 section 620.2024; 40 (10) "Multi-use building", a building whose street-level ground story is used for 41 a purpose other than residential, and whose upper story or stories are currently used 42 primarily for a residential purpose, or will be used primarily for a residential purpose 43 after completion of the housing project associated with the building; 44 (11) "Program", the workforce housing tax incentives program administered 45 under sections 620.2022 to 620.2028; 46 (12) "Qualified rehabilitation project", a project for the rehabilitation of 47 property in this state that meets the following criteria: 48 (a) The property is at least one of the following: 49 a. Property listed on the National Register of Historic Places or eligible for such 50 listing; 51 b. Property designated as of historic significance to a district listed in the 52 National Register of Historic Places or eligible for such designation; 53 c. Property or district designated a local landmark by a community ordinance; 54 or 55 d. A barn constructed prior to 1937; 56 (b) The property meets the physical criteria and standards for rehabilitation 57 established by the department by rule. To the extent applicable, the physical standards 58 and criteria shall be consistent with the United States Secretary of the Interior's 59 Standards for Rehabilitation; and 60 (c) The project has qualified rehabilitation expenditures that meet or exceed the 61 following: 62 a. In the case of commercial property, expenditures totaling at least fifty 63 thousand dollars or fifty percent of the assessed value of the property, excluding the 64 land, prior to rehabilitation, whichever is less; or 65 b. In the case of property other than commercial property including, but not 66 limited to, barns constructed prior to 1937, expenditures totaling at least twenty-five 67 thousand dollars or twenty-five percent of the assessed value, excluding the land, prior 68 to rehabilitation, whichever is less; 69 (13) "Qualifying new investment", costs that are directly related to the 70 acquisition, repair, rehabilitation, or redevelopment of a housing project in this state. A 71 "qualifying new investment" includes costs that are directly related to new construction 72 of dwelling units if the new construction occurs in a distressed workforce housing 73 community. The amount of costs that may be used to compute "qualifying new 74 investment" shall not exceed the costs used for the first one hundred fifty thousand HB 1451 6
75 dollars of value for each dwelling unit that is part of a housing project. A "qualifying 76 new investment" does not include the following: 77 (a) The portion of the total cost of a housing project that is financed by federal, 78 state, or local government tax credits, grants, forgivable loans, or other forms of 79 financial assistance that do not require repayment, excluding the tax incentives provided 80 under sections 620.2022 to 620.2028; or 81 (b) If a housing project includes the rehabilitation, repair, or redevelopment of 82 an existing multi-use building, the portion of the total acquisition costs of the multi-use 83 building, including a proportionate share of the total acquisition costs of the land upon 84 which the multi-use building is situated, that are attributable to the street-level ground 85 story that is used for a purpose that is other than residential; 86 (14) "Tax credit" or "tax credits", a credit or credits issued by the department 87 against the tax otherwise due under chapter 143 or 148, excluding withholding tax 88 imposed under sections 143.191 to 143.265; 89 (15) "Tax incentive", a state measure that is intended to encourage individuals 90 and businesses to spend moneys or save moneys by reducing the amount of tax that they 91 have to pay including, but not limited to, tax credits and refunds of sales and use tax 92 issued under this program. 620.2024. 1. To receive workforce housing tax incentives under sections 2 620.2022 to 620.2028, a proposed housing project shall meet the following requirements: 3 (1) The housing project includes at least one of the following: 4 (a) Four or more single-family dwelling units; 5 (b) One or more multiple dwelling unit buildings, each containing three or more 6 individual dwelling units; or 7 (c) Two or more dwelling units located in the upper story of an existing multi-use 8 building; 9 (2) The housing project consists of any of the following: 10 (a) Rehabilitation, repair, or redevelopment at a brownfield or grayfield site that 11 results in new dwelling units; 12 (b) The rehabilitation, repair, or redevelopment of dilapidated dwelling units; 13 (c) The rehabilitation, repair, or redevelopment of dwelling units located in the 14 upper story of an existing multi-use building; 15 (d) For a housing project located in a community that meets program 16 requirements under paragraph (a) of subdivision (1) of this subsection, development at a 17 greenfield site; or 18 (e) For a disaster recovery housing project as defined under section 620.2022, 19 development at a greenfield site; HB 1451 7
20 (3) (a) Except as provided in paragraph (b) of this subdivision, the average 21 dwelling unit cost shall not exceed the maximum amount established by the department 22 for each fiscal year for the applicable project type and project location. The department 23 shall establish the maximum average dwelling unit cost for a housing project that 24 includes single-family dwelling units or multiple dwelling unit buildings, or both. In 25 establishing each maximum average dwelling unit cost, the department shall primarily 26 consider the most recent annual United States Census Bureau Building Permits Survey 27 and historical program data; and 28 (b) If the housing project involves the rehabilitation, repair, redevelopment, or 29 preservation of property described in subdivision (12) of subsection 2 of section 30 620.2022, the average dwelling unit cost shall not exceed one hundred twenty-five 31 percent of the maximum average dwelling unit cost established by the department for 32 the applicable housing project type and housing project location as provided in 33 paragraph (a) of this subdivision; and 34 (4) The dwelling units, when completed and made available for occupancy, meet 35 the United States Department of Housing and Urban Development's housing quality 36 standards as set forth in 24 CFR 982 and all applicable local safety standards. 620.2026. 1. (1) A housing business seeking workforce housing tax incentives 2 provided under section 620.2028 shall apply to the department in the manner prescribed 3 by the department's rules. The department may accept applications during one or more 4 annual application periods to be determined by the department by rule. 5 (2) The application shall include the following: 6 (a) Information establishing local participation in the housing project, including: 7 a. A resolution in support of the housing project by the governing body of the 8 community where the housing project will be located; and 9 b. Documentation of local matching funds pledged for the housing project in an 10 amount equal to at least one thousand dollars per dwelling unit including, but not 11 limited to, a funding agreement between the housing business and the governing body of 12 the community where the housing project will be located. For purposes of this 13 subparagraph, local matching funds shall be in the form of cash or cash equivalents or 14 in the form of a local property tax exemption, rebate, refund, or reimbursement; 15 (b) Information evidencing an agreement between the business and the 16 department specifying the requirements that will be met to confirm eligibility and the 17 requirements shall be maintained throughout the period of the agreement in order to 18 retain the incentives or financial assistance received. The department shall consult with 19 the governing body of the community during negotiations relating to the agreement. 20 The agreement shall contain a report submitted to the department by a business, HB 1451 8
21 together with its application, describing all violations of environmental law or worker 22 safety law within the last five years. If, upon review of the application, the department 23 fi