SECOND REGULAR SESSION

HOUSE BILL NO. 1694

89TH GENERAL ASSEMBLY

INTRODUCED BY REPRESENTATIVES GAW, FARNEN (Co-sponsors), PARKER, McBRIDE,

FRANKLIN, DAYS, McLUCKIE, SHELTON (57), HOPPE, STOLL, DAVIS (122) , HOSMER, SKAGGS,

RANSDALL, GUNN, REYNOLDS, LUETKENHAUS, RIBACK WILSON, SCHEVE, BARRY,

SCHILLING, HILGEMANN, KISSELL, RELFORD, JOHNSON, MONACO, SEIGFREID, BAUER, GREEN,

BRAY, DANIEL (42), CAMPBELL, DAVIS (63), SHEAR, CRUMP, BLAND, WILLIAMS (121),

KENNEDY, DeMARCE, MURRAY, THOMPSON (72), WIGGINS, HECKEMEYER, HICKEY, FOLEY,

HARLAN, VAN ZANDT, MAY (108), THOMASON (163), LAKIN, FITZWATER, O'TOOLE, LEAKE,

LIESE, KOLLER, CLAYTON, BACKER, FRITTS, MAYS (50), SMITH, AUER, CARTER,

HOLLINGSWORTH, HAGAN-HARRELL, OVERSCHMIDT, DOUGHERTY, STOKAN, STROKER,

FORD, WILLIAMS (159), SALLEE, KASTEN, GASTON, DONOVAN, POUCHE, PATEK, SUMMERS,

KAUFFMAN, McCLELLAND, CRAWFORD, HARTZLER (123), GRIESHEIMER,

RIZZO AND WOOTEN.

Read 1^st time February 4, 1998 and 1000 copies ordered printed.

ANNE C. WALKER, Chief Clerk

L3655.01I

AN ACT

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 that:

(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 accrediting commission;

(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; and

(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 this act.

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 this act;

(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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