SECOND REGULAR SESSION

HOUSE BILL NO. 2151 103RD GENERAL ASSEMBLY

INTRODUCED BY REPRESENTATIVE WILSON.

4747H.01I JOSEPH ENGLER, Chief Clerk

AN ACT To repeal section 173.2553, RSMo, and to enact in lieu thereof one new section relating to grants for postsecondary education.

Be it enacted by the General Assembly of the state of Missouri, as follows:

Section A. Section 173.2553, RSMo, is repealed and one new section enacted in lieu 2 thereof, to be known as section 173.2553, to read as follows: 173.2553. 1. There is hereby established a "Fast Track Workforce Incentive Grant", 2 and any moneys appropriated by the general assembly for this program shall be deposited in 3 the fund created in subsection 13 of this section and shall be used to provide grants for 4 Missouri citizens to attend an approved Missouri postsecondary institution of their choice in 5 accordance with the provisions of this section. 6 2. The definitions of terms set forth in section 173.1102 shall be applicable to such 7 terms as used in this section [and section 173.2554]. In addition, the following terms shall 8 mean: 9 (1) "Active apprentice status", formal participation in an apprenticeship that meets 10 any related requirements as defined by the organization providing the apprenticeship or the 11 United States Department of Labor; 12 (2) "Board", the coordinating board for higher education; 13 (3) "Eligible apprentice", an individual who: 14 (a) Is a citizen or permanent resident of the United States; 15 (b) Is a Missouri resident as determined by reference to standards promulgated by the 16 coordinating board; 17 (c) Has active apprentice status in an eligible apprenticeship;

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 2151 2

18 (d) Has an adjusted gross income as reported on [their] such individual's Missouri 19 individual income tax return that does not exceed [eighty] one hundred thousand dollars for 20 married filing joint taxpayers or [forty] fifty thousand dollars for all other taxpayers, with 21 such caps adjusted annually beginning on January 1, 2027, based on the rate of inflation 22 according to the Consumer Price Index for All Urban Consumers for the United States, 23 or its successor index, as such index is defined and officially reported by the United 24 States Department of Labor, or its successor agency; and 25 (e) Is twenty-five years of age or older at the time of entering the apprenticeship or 26 has not been enrolled in a postsecondary education program, other than one related to the 27 current apprenticeship, for the prior two calendar years; 28 (4) "Eligible apprenticeship", a United States Department of Labor approved 29 apprenticeship, as defined under 29 CFR Part 29, conducted within the state of Missouri that 30 prepares a participant to enter employment in an area of occupational shortage as determined 31 by the coordinating board; 32 (5) "Eligible program of study", a program of instruction: 33 (a) Resulting in the award of a certificate, undergraduate degree, or other industry- 34 recognized credential; and 35 (b) That has been designated by the coordinating board as preparing students to enter 36 an area of occupational shortage as determined by the board; 37 (6) "Eligible student", an individual who: 38 (a) Has completed and submitted a FAFSA for the academic year for which the grant 39 is requested or if the student is enrolled, or is enrolling, with an eligible training provider that 40 does not participate in federal student aid programs, has provided documentation of their 41 adjusted gross income as determined by the board; 42 (b) Is a citizen or permanent resident of the United States; 43 (c) Is a Missouri resident for at least two years prior to receiving a grant pursuant to 44 the fast track workforce incentive grant program as determined by reference to standards 45 promulgated by the coordinating board, provided that this paragraph shall not apply to an 46 individual who is an active duty member of the Armed Forces of the United States who has 47 been transferred to the state of Missouri, or his or her spouse; 48 (d) Is enrolled, or plans to enroll, at least half-time as a student in an eligible 49 undergraduate program of study offered by an approved public, private, or virtual institution, 50 as defined in section 173.1102 or by an eligible training provider; 51 (e) Has an adjusted gross income, as reported on the FAFSA or other documentation 52 as determined by the board, that does not exceed [eighty] one hundred thousand dollars for 53 married filing joint taxpayers or [forty] fifty thousand dollars for all other taxpayers, with 54 such caps adjusted annually beginning on January 1, 2027, based on the rate of inflation HB 2151 3

55 according to the Consumer Price Index for All Urban Consumers for the United States, 56 or its successor index, as such index is defined and officially reported by the United 57 States Department of Labor, or its successor agency; and 58 (f) Is twenty-five years of age or older at the time of enrollment or has not been 59 enrolled in an educational program for the prior two academic years; 60 (7) "Eligible training provider", a training organization listed in the state of Missouri 61 eligible training provider system maintained by the office of workforce development in the 62 department of higher education and workforce development that has been in continuous 63 legal operation within the state of Missouri for no fewer than twelve consecutive months 64 as determined by the department; 65 (8) "FAFSA", the Free Application for Federal Student Aid, as maintained by the 66 United States Department of Education; 67 (9) "Fast track grant", an amount of moneys paid by the state of Missouri to a student 68 under the provisions of this section; 69 (10) "Graduation", completion of a program of study as indicated by the award of a 70 certificate, undergraduate degree, or other industry-recognized credential; 71 (11) "Qualifying employment", full-time employment of a Missouri resident at a 72 workplace located within the state of Missouri, or self-employment while a Missouri resident, 73 with at least fifty percent of an individual's annual income coming from self-employment, 74 either of which result in required returns of income in accordance with section 143.481; 75 (12) "Recipient", an eligible student, an eligible apprentice, a renewal apprentice, or a 76 renewal student who receives a fast track grant under the provisions of this section; 77 (13) "Related educational costs", direct costs incurred by an individual as part of an 78 eligible apprenticeship program, such as, but not limited to, tools, books, and uniforms; 79 (14) "Renewal apprentice", an eligible apprentice who remains in compliance with 80 the provisions of this section, has received the grant as an initial apprentice, maintains active 81 apprentice status, and who has not received a bachelor's degree; 82 (15) "Renewal student", an eligible student who remains in compliance with the 83 provisions of this section, has received a grant as an initial recipient, maintains a cumulative 84 grade point average of at least two and one-half on a four-point scale or the equivalent, makes 85 satisfactory academic degree progress as defined by the institution, with the exception of 86 grade point average, and has not received a bachelor's degree. 87 3. Standards of eligibility for renewed assistance shall be the same as for an initial 88 award of financial assistance; except that, for a renewal student, an applicant shall 89 demonstrate a grade point average of two and one-half on a four-point scale, or the equivalent 90 on another scale. 91 4. Eligibility for a grant expires upon the earliest of: HB 2151 4

92 (1) Receipt of the grant for four semesters or the equivalent; 93 (2) Receipt of a bachelor's degree; or 94 (3) For an eligible student, reaching two hundred percent of the time typically 95 required to complete the program of study. 96 5. The coordinating board shall initially designate eligible programs of study by 97 January 1, 2020, in connection with local education institutions, regional business 98 organizations, and other stakeholders. The coordinating board shall annually review the 99 list of eligible programs of study and occupations relating to eligible apprenticeships and 100 make changes to the program list as it determines appropriate. 101 6. The coordinating board shall be the administrative agency for the implementation 102 of the program established by this section [and section 173.2554]. The coordinating board 103 shall promulgate reasonable rules and regulations for the exercise of its functions and the 104 effectuation of the purposes of this section [and section 173.2554]. The coordinating board 105 shall prescribe the form and the time and method of filing applications and supervise the 106 processing thereof. The coordinating board shall determine the criteria for eligibility of 107 applicants and shall evaluate each applicant's eligibility. The coordinating board shall select 108 qualified recipients to receive grants, make such awards of financial assistance to qualified 109 recipients, and determine the manner and method of payment to the recipients. 110 7. The coordinating board shall determine eligibility for renewed assistance on the 111 basis of annual applications. As a condition to consideration for initial or renewed assistance, 112 the coordinating board may require the applicant and the applicant's spouse to execute forms 113 of consent authorizing the director of revenue to compare financial information submitted by 114 the applicant with the Missouri individual income tax returns of the applicant, and the 115 applicant's spouse, for the taxable year immediately preceding the year for which application 116 is made, and to report any discrepancies to the coordinating board. 117 8. Grants shall be awarded in an amount equal to the actual tuition and general fees 118 charged of an eligible student, after all federal nonloan aid, state student aid, and any other 119 governmental student financial aid are applied. If a grant amount is reduced to zero due to the 120 receipt of other aid, the eligible student shall receive an award of up to five hundred dollars or 121 the remaining cost of attendance as calculated by the institution after all nonloan student aid 122 has been applied, whichever is less, per academic term. Grants shall also be awarded in an 123 amount equal to the related educational costs for an eligible apprentice after all other 124 governmental assistance provided for the apprenticeship has been applied. 125 9. If appropriated funds are insufficient to fund the program as described, students 126 and apprentices applying for renewed assistance shall be given priority until all funds are 127 expended. HB 2151 5

128 10. An eligible student [that] who is the recipient of financial assistance may transfer 129 from one approved public, private, or virtual institution, or eligible training provider to 130 another without losing eligibility for assistance under this section, but the coordinating board 131 shall make any necessary adjustments in the amount of the award. If a recipient of financial 132 assistance at any time is entitled to a refund of any tuition or fees under the rules and 133 regulations of the institution in which he or she is enrolled, the institution shall pay the 134 portion of the refund that may be attributed to the grant to the coordinating board. The 135 coordinating board shall use these refunds to make additional awards under the provisions of 136 this section. 137 11. Persons who receive fast track grants under this section shall be required to 138 submit proof of residency and qualifying employment to the coordinating board for higher 139 education within thirty days of completing each twelve months of qualifying employment 140 until the three-year employment obligation is fulfilled. 141 12. Under section 23.253 of the Missouri sunset act: 142 (1) The provisions of the new program authorized under this section shall sunset 143 automatically on August 28, 2029, unless reauthorized by an act of the general assembly; and 144 (2) If such program is reauthorized, the program authorized under this section shall 145 sunset automatically six years after the effective date of the reauthorization; and 146 (3) This section shall terminate on December thirty-first of the calendar year 147 immediately following the calendar year in which the program authorized under this section 148 is sunset. 149 13. (1) There is hereby created in the state treasury the "Fast Track Workforce 150 Incentive Grant Fund". The state treasurer shall be custodian of the fund. In accordance with 151 sections 30.170 and 30.180, the state treasurer may approve disbursements. The fund shall be 152 a dedicated fund and, upon appropriation, moneys in the fund shall be used solely by the 153 coordinating board for the purposes of this section. 154 (2) Notwithstanding the provisions of section 33.080 to the contrary, any moneys 155 remaining in the fund at the end of the biennium shall not revert to the credit of the general 156 revenue fund. 157 (3) The state treasurer shall invest moneys in the fund in the same manner as other 158 funds are invested. Any interest and moneys earned on such investments shall be credited to 159 the fund. 160 14. The coordinating board shall have the authority to promulgate rules to implement 161 the provisions of this section. Any rule or portion of a rule, as that term is defined in section 162 536.010, that is created under the authority delegated in this section shall become effective 163 only if it complies with and is subject to all of the provisions of chapter 536 and, if applicable, 164 section 536.028. This section and chapter 536 are nonseverable and if any of the powers HB 2151 6

165 vested with the general assembly pursuant to chapter 536 to review, to delay the effective 166 date, or to disapprove and annul a rule are subsequently held unconstitutional, then the grant 167 of rulemaking authority and any rule proposed or adopted after August 28, 2019, shall be 168 invalid and void. ✔

Statutes affected:
Introduced (4747H.01): 173.2553