HB1694I-Introduced Bill Text
SECOND REGULAR SESSION
HOUSE BILL NO. 1694
89TH GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVES GAW, FARNEN (Co-sponsors), PARKER,
FRANKLIN, DAYS, McLUCKIE, SHELTON (57), HOPPE, STOLL, DAVIS (122) ,
RANSDALL, GUNN, REYNOLDS, LUETKENHAUS, RIBACK WILSON, SCHEVE,
SCHILLING, HILGEMANN, KISSELL, RELFORD, JOHNSON, MONACO, SEIGFREID,
BRAY, DANIEL (42), CAMPBELL, DAVIS (63), SHEAR, CRUMP, BLAND, WILLIAMS
KENNEDY, DeMARCE, MURRAY, THOMPSON (72), WIGGINS, HECKEMEYER,
HARLAN, VAN ZANDT, MAY (108), THOMASON (163), LAKIN, FITZWATER,
LIESE, KOLLER, CLAYTON, BACKER, FRITTS, MAYS (50), SMITH, AUER, CARTER,
HOLLINGSWORTH, HAGAN-HARRELL, OVERSCHMIDT, DOUGHERTY, STOKAN,
FORD, WILLIAMS (159), SALLEE, KASTEN, GASTON, DONOVAN, POUCHE, PATEK,
KAUFFMAN, McCLELLAND, CRAWFORD, HARTZLER (123), GRIESHEIMER,
RIZZO AND WOOTEN.
Read 1st time February 4, 1998 and 1000 copies ordered printed.
ANNE C. WALKER, Chief Clerk
Relating to the Advantage Missouri Program, with an effective date.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section 1. 1. Sections 1 to 8 of this act shall be known as the "Advantage Missouri
Program". This program shall provide loans to and establish a loan forgiveness program
for students in approved educational programs who become employed in occupational
areas of high demand in this state.
2. The "Advantage Missouri Trust Fund" is hereby created in the state treasury, to be
used by the coordinating board for higher education to provide loans pursuant to sections 1
to 8 of this act. All appropriations, private donations, and other funds provided to the
board for this program shall be credited to the fund. All funds generated by loan repayments and any penalties received pursuant to sections 5 and 6 of this act, shall also be
credited to the fund. Notwithstanding the provisions of section 33.080, RSMo, to the
contrary, any unexpended balance in the fund shall not revert to the general revenue fund.
Section 2. As used in sections 1 to 8 of this act, the following terms mean:
(1) "Board", the coordinating board for higher education;
(2) "Eligible institution", any approved public or private institution of postsecondary
education, as defined in section 173.205, RSMo, or any other Missouri private institution
(a) Is required by statute to be certified to operate by the board;
(b) Is institutionally accredited by a United States Department of Education recognized
(c) Has operated continuously in the state of Missouri for five or more years;
(d) Has no more than fifty percent of its students in correspondence programs;
(e) Offers a two-year certificate, or associate or baccalaureate degree programs; and
(f) Is approved for participation in the advantage Missouri program by the board;
(3) "Eligible student", an individual who is enrolled full-time in an eligible institution and
who meets the eligibility requirements pursuant to subsection 1 of section 173.215, RSMo,
and who meets the following additional requirements:
(a) Has received a high school diploma, general educational development certificate
(GED), or its equivalent;
(b) Maintains satisfactory academic progress as determined by the eligible institution such
student attends in pursuing a two-year certificate, or associate or baccalaureate degree.
Failure to maintain satisfactory academic progress shall result in ineligibility for continued
participation in the program and ineligibility for forgiveness of any loan or loans received;
(c) Is not currently confined in any federal or state correctional facility or jail;
(d) Has not defaulted on the repayment of any previously granted higher education loan;
(e) Submits an application provided by the board for participation in the program;
(4) "Fund", the advantage Missouri trust fund, established in section 1 of this act; and
(5) "Occupational areas of high demand", specific professions or skill areas for which the
board determines that the state is experiencing a shortage of qualified employees;
(6) "Program", the advantage Missouri program established pursuant to sections 1 to 8 of
Section 3. By the effective date of this act, and by June first of each year thereafter, the
board shall designate occupational areas of high demand in the state. The board shall also
designate professions and skill areas directly related to the areas of high demand, and the
degree programs or certifications directly leading to employment in such areas. In making
such designations, the board shall consult with the department of labor and industrial
relations, the department of economic development, and private sector business and labor
groups. The board may also consult with other private and public agencies or individuals
with expertise related to labor markets, demographic analysis, or related issues. The board
shall review and make publicly available these designations annually.
Section 4. An eligible student may participate in the program for up to ten semesters, or
their equivalent, whether consecutive or not, or until the initial certificate or degree is
attained, and may be awarded a loan of up to two thousand five hundred dollars per
academic year by the board, not to exceed a maximum of ten thousand dollars.
Section 5. Eligible students who are in compliance with program requirements may qualify
for forgiveness of a loan or loans received through the program by agreeing to be employed
in an occupational area of high demand, as determined by the board, with such employment beginning within one calendar year of graduation by the individual from an eligible
institution, and as outlined in the contract pursuant to section 6 of this act. The employment qualifying the eligible student for loan forgiveness shall be approved by the board.
The board shall use a sliding scale on which to base the amount of loan forgiveness, with
one year of approved employment qualifying the student for up to twenty percent loan
forgiveness, and five years of approved employment qualifying the student for up to one
hundred percent loan forgiveness. Students electing not to comply with these employment
requirements, or students failing to meet these requirements shall be required to repay
with interest any or all loans received, pursuant to the contractual provisions described in
section 6 of this act.
Section 6. 1. The board shall enter into a contract with each individual qualifying for
participation in the program at the time the individual initially enrolls as a first year, full-time student. The written contract shall contain, but not be limited to, the following:
(1) The terms and conditions under which the loan is made, and the requirements for
repayment of loan by the student;
(2) A stipulation that, the provisions of section 143.811, RSMo, to the contrary notwithstanding, no interest shall be assessed on any loan provided through the program while the
student is enrolled full-time and meets the eligibility requirements pursuant to section 2 of
(3) The terms and conditions for qualifying for forgiveness of loan proceeds received
through the program;
(4) A provision that any financial obligations arising out of a contract entered into, and
any obligations of the individual which are conditioned thereon, are contingent upon funds
being appropriated to the fund; and
(5) The amount of any penalties assessed, in the event repayment of the loan by the student
is not made in accordance with the contract, or the student fails to maintain eligibility or
other requirements of the program. All such penalties shall be deposited in the fund.
2. Sections 1 to 8 of this act shall not be construed to require the board to enter into
contracts with individuals who otherwise qualify for the program when funds are not
available for such purpose.
Section 7. Nothing in sections 1 to 8 of this act shall be construed as a promise or guarantee by the coordinating board for higher education, or the state of Missouri that a person
will be admitted to a state institution of higher education or to a particular state institution
of higher education, will be allowed to continue to attend an institution of higher education
after having been admitted, or will be graduated from an institution of higher education.
Section 8. 1. As used in this section, the term "taxpayer" means an individual, a partnership, or a corporation as described in section 143.441 or 143.471, RSMo.
2. Any taxpayer may make a contribution to the fund. Within the limits specified in
subsection 3 of this section, a taxpayer shall be allowed a credit against the taxes imposed
pursuant to chapter 143, RSMo, except for sections 143.191 to 143.265, RSMo, on that
individual or entity of up to fifty percent of the total amount contributed to the fund, not to
exceed one hundred thousand dollars per taxpayer.
3. The department of revenue shall administer the tax credits pursuant to this section, and
shall certify eligibility for the tax credits in the order applications are received. The total
amount of tax credits certified in any one calendar year shall not exceed five million dollars
annually. Contributions of up to one hundred thousand dollars per annum per taxpayer
may be certified by the department of revenue as a qualified contribution for purposes of
receiving a tax credit under this program.
4. If the amount of tax credit exceeds the total tax liability for the year in which the tax
credit is claimed, the amount that exceeds the state tax liability may be carried forward for
credit against the taxes imposed pursuant to chapter 143, RSMo, except for sections
143.191 to 143.265, RSMo, for the succeeding ten years, or until the full credit is used,
whichever occurs first.
5. The provisions of this section shall become effective January 1, 1999.
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