PURPOSE: The Division of Job Development and Training, Department of Economic Development has the responsibility to administer the new or expanding industry training program and to approve or disapprove applications for this program. This rule establishes guidelines for administration of this program.

1. (1) The new or expanding industry training program provides assistance to new or expanding Missouri employers for training, retraining or upgrading the skills of potential employees.

   1. (A) An industry or employer is an entity whose objective is to supply a service or commercially produce and sell an article of trade or commerce.

   2. (B) A new industry is an employer who initiates operation after the date the application for assistance is received by Job Development and Training (JDT) or the Department of Elementary and Secondary Education (DESE).

      1. 1. A change of ownership of an industry

currently operating within the boundaries of the state is not a new industry.

1. 2. A relocation of an existing industry

within the boundaries of the state does not qualify as a new industry at the new location.

1. (C) An expanding industry is an employer who is increasing the size of the company’s existing workforce over the peak employment level of the three hundred sixty-five (365) days prior to receipt of the application by JDT or DESE.
2. (D) Training, retraining and upgrading is the activity that allows employees and potential employees to acquire, refine and improve the level of their occupational skills in order to perform the requirements of their particular job in a more proficient and effective manner.
3. (E) Potential employees are those hired during the training project time frames approved by JDT or DESE.

1. (2) Assistance is available only for employers making investments directly related to an increase in employment which requires training of newly hired employees; or the retraining or upgrading of the skills of existing employees for new jobs created by a new or expanding employer’s investment.

   1. (A) The amount of investment must be submitted in writing to JDT or DESE at the time of application for funding.
   2. (B) The state has the right to investigate the accuracy of the level of capital investment as stated by the applying employer.
2. (3) Assistance is not available to employers when such assistance would result in replacing or supplanting employees engaged in an authorized work stoppage due to a labor dispute.
3. (4) Assistance for training and retraining is available primarily for Missouri residents. The Department of Economic Development may authorize assistance for the training or retraining of non-Missouri residents if it determines that such training or retraining is necessary for the location or retention of an industry in the state and for the creation or preservation of employment for Missouri residents.
4. (5) Assistance may be provided to identify, recruit and screen skilled employees and to locate additional sources of job training funds, including funds assisting economically disadvantaged citizens.

5. (6) Training activities eligible for reimbursement by the new and expanding industry program are—

   1. (A) The wages of instructors, who may or may not be employees of the industry;
   2. (B) Training development costs, including the cost of training of instructors;
   3. (C) Training materials and supplies, including the purchase of packaged training programs when deemed appropriate by the JDT;
   4. (D) Travel directly related to the training program;
   5. (E) Tuition payments to third-party training providers and to the industry when deemed appropriate by the JDT;
   6. (F) Teaching and assistance provided by educational institutions in the state of Missouri;
   7. (G) The leasing, but not the purchase, of training equipment and space; and

   8. (H) On-the-Job Training (OJT).

      1. 1. OJT is training provided to an

employed individual engaged in productive work which provides knowledge or skills essential to the full and adequate performance of the job.

1. 2. During the predesignated period of

OJT, up to fifty percent (50%) of trainee wages are reimbursed to the employer. 4 CSR 195-2

1. 3. The length of On-the-Job Training is

directly tied to—

1. A. The current skill level or back-

ground that the trainees possess prior to training; and

1. B. The skill level required for the job

and the time needed for the average trainee to become productive.

1. (7) On-the-Job Training is available only for the occupational categories which are neither administrative, managerial nor professional.

   1. (A) Occupational titles will be determined through the Dictionary of Occupational Titles

2. (DOT) and any supplements as published by the United States Department of Labor (DOL). Each occupation is coded with a nine (9)-digit or DOT Code.

   1. (B) No OJT is allowed for the training, retraining or upgrading of skills of employees or potential employees for an occupation that has as the first digit of the assigned DOT Code either zero (0) or one (1) and the Specific Vocational Preparation (SVP) level of six (6) or higher.
   2. (C) No OJT is allowed for the training, retraining or upgrading of skills of employees or potential employees for an occupation that has as the first digit of the assigned DOT Code any number two through nine (2—9) and a SVP level higher than seven (7).

   3. (D) The SVP level for each job is determined in the DOL publication, Specific Vocational Preparation Estimates For Occupations in The U.S. Department of Labor Dictionary of Occupational Titles Fourth Edition.

      1. 1. SVP is the amount of time required to

learn the techniques, acquire the information and develop the facility needed for average performance in a specific vocation.

1. 2. Specific vocational training includes:

vocational education, apprentice training, classroom training, OJT and related experience.

1. (8) Except for state sponsored preemployment training, no employer will receive more than fifty percent (50%) of their project training or retraining costs from this program.
2. (9) Proposals for funding by employers must be made on forms approved by and available from JDT or DESE.

3. (10) When reviewing training proposals to determine whether training funds will be approved, the JDT will consider, on an equal basis—

   1. (A) The potential number of new jobs to be created; both in terms of absolute numbers and in terms of percentage increase;
   2. (B) The significance of state funding to the employer’s decision to locate or expand in Missouri;
   3. (C) The economic need of the affected community;
   4. (D) The importance of the industry to the economic development of Missouri; and
   5. (E) The amount of private sector investment in new facilities and equipment.

4. (11) When processing employer applications for funding consideration, JDT will notify private industry councils.

   1. (A) Upon request of an employer, JDT will refer the company to the appropriate service provider of other training programs to ensure economically disadvantaged citizens receive opportunities for employment in newly created jobs.
   2. (B) Upon request of an employer, JDT will provide information to a company about other training programs and JDT will advise the appropriate service provider(s) of the potential expansion.
5. (12) If the new or expanding employer is covered by a collective bargaining agreement, no training project will be approved without written consultation from the appropriate local labor organization.
6. (13) Funds for the new and expanding industry training program will provide contractual services through the DESE for vocational related training or retraining provided by public or private training institutions located outside of Missouri; and for vocational related training provided on-site within Missouri.

AUTHORITY: section 620.472, RSMo (1994). Original rule filed May 4, 1987, effective July 23, 1987. Amended: Filed May 14, 1996, effective Dec. 30, 1996. *Original authority 1986.