EXPLANATION-Matter enclosed in bold-faced brackets [thus] in this bill is not enacted
and is intended to be omitted in the law.
FIRST REGULAR SESSION
SENATE BILL NO. 416
103RD GENERAL ASSEMBLY
INTRODUCED BY SENATOR BLACK.
0782S.01I KRISTINA MARTIN, Secretary
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Section A. Section 173.2553, RSMo, is repealed and one 1
new section enacted in lieu thereof, to be known as section 2
173.2553, to read as follows:3
173.2553. 1. There is hereby established a "Fast 1
Track Workforce Incentive Grant", and any moneys 2
appropriated by the general assembly for this program shall 3
be deposited in the fund created in subsection 13 of this 4
section and shall be used to provide grants for Missouri 5
citizens to attend an approved Missouri postsecondary 6
institution of their choice in accordance with the 7
provisions of this section. 8
2. The definitions of terms set forth in section 9
173.1102 shall be applicable to such terms as used in t his 10
section and section 173.2554. In addition, the following 11
terms shall mean: 12
(1) "Active apprentice status", formal participation 13
in an apprenticeship that meets any related requirements as 14
defined by the organization providing the apprentices hip or 15
the United States Department of Labor; 16
(2) "Board", the coordinating board for higher 17
education; 18 SB 416 2
(3) "Eligible apprentice", an individual who: 19
(a) Is a citizen or permanent resident of the United 20
States; 21
(b) Is a Missouri resident as determined by reference 22
to standards promulgated by the coordinating board; 23
(c) Has active apprentice status in an eligible 24
apprenticeship; 25
(d) Has an adjusted gross income as reported on their 26
Missouri individual income tax retu rn that does not exceed 27
[eighty] one hundred thousand dollars for married filing 28
joint taxpayers or [forty] fifty thousand dollars for all 29
other taxpayers, adjusted annually based on the rate of 30
inflation according to the Consumer Price Index beginning 31
January 1, 2026; and 32
(e) Is twenty-five years of age or older at the time 33
of entering the apprenticeship or has not been enrolled in a 34
postsecondary education program, other than one related to 35
the current apprenticeship, for the prior two calen dar years; 36
(4) "Eligible apprenticeship", a United States 37
Department of Labor approved apprenticeship, as defined 38
under 29 CFR Part 29, conducted within the state of Missouri 39
that prepares a participant to enter employment in an area 40
of occupational shortage as determined by the coordinating 41
board; 42
(5) "Eligible program of study", a program of 43
instruction: 44
(a) Resulting in the award of a certificate, 45
undergraduate degree, or other industry -recognized 46
credential; and 47
(b) That has been designated by the coordinating board 48
as preparing students to enter an area of occupational 49
shortage as determined by the board; 50 SB 416 3
(6) "Eligible student", an individual who: 51
(a) Has completed and submitted a FAFSA for the 52
academic year for which the grant is requested or if the 53
student is enrolled, or is enrolling, with an eligible 54
training provider that does not participate in federal 55
student aid programs, has provided documentation of their 56
adjusted gross income as determined by the board; 57
(b) Is a citizen or permanent resident of the United 58
States; 59
(c) Is a Missouri resident for at least two years 60
prior to receiving a grant pursuant to the fast track 61
workforce incentive grant program as determined by reference 62
to standards promulgated by the coordinating board, provided 63
that this paragraph shall not apply to an individual who is 64
an active duty member of the Armed Forces of the United 65
States who has been transferred to the state of Missouri, or 66
his or her spouse; 67
(d) Is enrolled, or plans to enroll, at least half - 68
time as a student in an eligible undergraduate program of 69
study offered by an approved public, private, or virtual 70
institution, as defined in section 173.1102 or by an 71
eligible training provide r; 72
(e) Has an adjusted gross income, as reported on the 73
FAFSA or other documentation as determined by the board, 74
that does not exceed [eighty] one hundred thousand dollars 75
for married filing joint taxpayers or [forty] fifty thousand 76
dollars for all other taxpayers, adjusted annually based on 77
the rate of inflation according to the Consumer Price Index 78
beginning January 1, 2026 ; and 79
(f) Is twenty-five years of age or older at the time 80
of enrollment or has not been enrolled in an educational 81
program for the prior two academic years; 82 SB 416 4
(7) "Eligible training provider", a training 83
organization listed in the state of Missouri eligible 84
training provider system maintained by the office of 85
workforce development in the department of higher e ducation 86
and workforce development; 87
(8) "FAFSA", the Free Application for Federal Student 88
Aid, as maintained by the United States Department of 89
Education; 90
(9) "Fast track grant", an amount of moneys paid by 91
the state of Missouri to a studen t under the provisions of 92
this section; 93
(10) "Graduation", completion of a program of study as 94
indicated by the award of a certificate, undergraduate 95
degree, or other industry -recognized credential; 96
(11) "Qualifying employment", full -time employment of 97
a Missouri resident at a workplace located within the state 98
of Missouri, or self -employment while a Missouri resident, 99
with at least fifty percent of an individual's annual income 100
coming from self-employment, either of which result in 101
required returns of income in accordance with section 102
143.481; 103
(12) "Recipient", an eligible student, an eligible 104
apprentice, a renewal apprentice, or a renewal student who 105
receives a fast track grant under the provisions of this 106
section; 107
(13) "Related educational costs", direct costs 108
incurred by an individual as part of an eligible 109
apprenticeship program, such as, but not limited to, tools, 110
books, and uniforms; 111
(14) "Renewal apprentice", an eligible apprentice who 112
remains in complianc e with the provisions of this section, 113
has received the grant as an initial apprentice, maintains 114 SB 416 5
active apprentice status, and who has not received a 115
bachelor's degree; 116
(15) "Renewal student", an eligible student who 117
remains in compliance with t he provisions of this section, 118
has received a grant as an initial recipient, maintains a 119
cumulative grade point average of at least two and one -half 120
on a four-point scale or the equivalent, makes satisfactory 121
academic degree progress as defined by the institution, with 122
the exception of grade point average, and has not received a 123
bachelor's degree. 124
3. Standards of eligibility for renewed assistance 125
shall be the same as for an initial award of financial 126
assistance; except that, for a renewal stu dent, an applicant 127
shall demonstrate a grade point average of two and one -half 128
on a four-point scale, or the equivalent on another scale. 129
4. Eligibility for a grant expires upon the earliest 130
of: 131
(1) Receipt of the grant for four semesters or the 132
equivalent; 133
(2) Receipt of a bachelor's degree; or 134
(3) For an eligible student, reaching two hundred 135
percent of the time typically required to complete the 136
program of study. 137
5. The coordinating board shall initially designate 138
eligible programs of study by January 1, 2020, in connection 139
with local education institutions, regional business 140
organizations, and other stakeholders. The coordinating 141
board shall annually review the list of eligible programs of 142
study and occupations r elating to eligible apprenticeships 143
and make changes to the program list as it determines 144
appropriate. 145 SB 416 6
6. The coordinating board shall be the administrative 146
agency for the implementation of the program established by 147
this section and section 173. 2554. The coordinating board 148
shall promulgate reasonable rules and regulations for the 149
exercise of its functions and the effectuation of the 150
purposes of this section and section 173.2554. The 151
coordinating board shall prescribe the form and the time a nd 152
method of filing applications and supervise the processing 153
thereof. The coordinating board shall determine the 154
criteria for eligibility of applicants and shall evaluate 155
each applicant's eligibility. The coordinating board shall 156
select qualified recipients to receive grants, make such 157
awards of financial assistance to qualified recipients, and 158
determine the manner and method of payment to the recipients. 159
7. The coordinating board shall determine eligibility 160
for renewed assistance on the ba sis of annual applications. 161
As a condition to consideration for initial or renewed 162
assistance, the coordinating board may require the applicant 163
and the applicant's spouse to execute forms of consent 164
authorizing the director of revenue to compare finan cial 165
information submitted by the applicant with the Missouri 166
individual income tax returns of the applicant, and the 167
applicant's spouse, for the taxable year immediately 168
preceding the year for which application is made, and to 169
report any discrepancie s to the coordinating board. 170
8. Grants shall be awarded in an amount equal to the 171
actual tuition and general fees charged of an eligible 172
student, after all federal nonloan aid, state student aid, 173
and any other governmental student financial aid ar e 174
applied. If a grant amount is reduced to zero due to the 175
receipt of other aid, the eligible student shall receive an 176
award of up to five hundred dollars or the remaining cost of 177 SB 416 7
attendance as calculated by the institution after all 178
nonloan student aid has been applied, whichever is less, per 179
academic term. Grants shall also be awarded in an amount 180
equal to the related educational costs for an eligible 181
apprentice after all other governmental assistance provided 182
for the apprenticeship has been ap plied. 183
9. If appropriated funds are insufficient to fund the 184
program as described, students and apprentices applying for 185
renewed assistance shall be given priority until all funds 186
are expended. 187
10. An eligible student that is the recipient o f 188
financial assistance may transfer from one approved public, 189
private, or virtual institution, or eligible training 190
provider to another without losing eligibility for 191
assistance under this section, but the coordinating board 192
shall make any necessary a djustments in the amount of the 193
award. If a recipient of financial assistance at any time 194
is entitled to a refund of any tuition or fees under the 195
rules and regulations of the institution in which he or she 196
is enrolled, the institution shall pay the p ortion of the 197
refund that may be attributed to the grant to the 198
coordinating board. The coordinating board shall use these 199
refunds to make additional awards under the provisions of 200
this section. 201
11. Persons who receive fast track grants under th is 202
section shall be required to submit proof of residency and 203
qualifying employment to the coordinating board for higher 204
education within thirty days of completing each twelve 205
months of qualifying employment until the three -year 206
employment obligation is fulfilled. 207
12. Under section 23.253 of the Missouri sunset act: 208 SB 416 8
(1) The provisions of the new program authorized under 209
this section shall sunset automatically on August 28, 2029, 210
unless reauthorized by an act of the general assembly; and 211
(2) If such program is reauthorized, the program 212
authorized under this section shall sunset automatically six 213
years after the effective date of the reauthorization; and 214
(3) This section shall terminate on December thirty - 215
first of the calendar year immediately following the 216
calendar year in which the program authorized under this 217
section is sunset. 218
13. (1) There is hereby created in the state treasury 219
the "Fast Track Workforce Incentive Grant Fund". The state 220
treasurer shall be cust odian of the fund. In accordance with 221
sections 30.170 and 30.180, the state treasurer may approve 222
disbursements. The fund shall be a dedicated fund and, upon 223
appropriation, moneys in the fund shall be used solely by 224
the coordinating board for the purp oses of this section. 225
(2) Notwithstanding the provisions of section 33.080 226
to the contrary, any moneys remaining in the fund at the end 227
of the biennium shall not revert to the credit of the 228
general revenue fund. 229
(3) The state treasurer shall invest moneys in the 230
fund in the same manner as other funds are invested. Any 231
interest and moneys earned on such investments shall be 232
credited to the fund. 233
14. The coordinating board shall have the authority to 234
promulgate rules to implement the provisions of this 235
section. Any rule or portion of a rule, as that term is 236
defined in section 536.010, that is created under the 237
authority delegated in this section shall become effective 238
only if it complies with and is subject to all of the 239
provisions of chapter 536 and, if applicable, section 240 SB 416 9
536.028. This section and chapter 536 are nonseverable and 241
if any of the powers vested with the general assembly 242
pursuant to chapter 536 to review, to delay the effective 243
date, or to disapprove and annul a rule are subsequently 244
held unconstitutional, then the grant of rulemaking 245
authority and any rule proposed or adopted after August 28, 246
2019, shall be invalid and void. 247