PURPOSE: The Division of Job Development and Training, Department of Economic Development has the responsibility to administer the basic industry retraining program. This rule establishes guidelines for administration of this program.

1. (1) The basic industry retraining program provides assistance for existing industries in Missouri for the retraining and upgrading of existing workforce skills which are required to support and result from new capital investments.

   1. (A) Capital investments are purchase(s) or leasing of property, facility(ies) and equipment.
   2. (B) Capital investments are considered substantial if they are, at a minimum, five (5) times greater than the amount of the requested training project’s costs.
   3. (C) The amount of capital investment must be submitted in writing to Job Development and Training (JDT) or the Department of Elementary and Secondary Education (DESE) at the time of application for funding. The state has the right to investigate the accuracy of the level of capital investment as stated by the applying employer.
   4. (D) Assistance under the basic industry retraining program may be made available for industries in Missouri which make new investments in manufacturing without the creation of new employment. Manufacturing is the mechanical or chemical transformation of materials or substances into a new product. A product is considered new if after processing it is ready for use or consumption or ready to become a material for further manufacturing.
   5. (E) Training, retraining and upgrading is the activity that enables an existing workforce to acquire, refine and improve the level of their occupational skills in order to perform the requirements of their particular vocation in a more proficient manner.
2. (2) Assistance is not available when such assistance would result in replacing or supplanting employees engaged in an authorized work stoppage because of a labor dispute.
3. (3) 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. (4) Assistance may be provided to locate additional sources of job training funds, including funds assisting economically disadvantaged citizens.

5. (5) 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%) reimbursement of trainee wages are reimbursed to the employer.

1. 3. The length of OJT 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. (6) OJT 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 number 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 any number two (2) through nine (9) and a Specific Vocational Preparation (SVP) level higher than seven (7).
   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 either zero (0) or one (1) and a SVP level of six (6) or higher.

   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 the average performance in a specific vocation. Specific vocational training includes: vocational education, apprentice training, classroom training, OJT and related experience.

1. (7) Proposals for funding by employers must be made on forms approved by and available from JDT or DESE.

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

   1. (A) The number of jobs in jeopardy of being lost if retraining does not occur;
   2. (B) The cost of normal, ongoing training required for the employer’s industry;
   3. (C) The economic need of the affected community; and
   4. (D) The importance of the industry to the economic development of Missouri.
3. (9) Assistance will not be approved when such assistance exceeds twenty percent (20%) of the value of the directly related capital investment made by the affected employers.
4. (10) If the employer applying for the Basic Industry Retraining Program is covered by a collective bargaining agreement, no training project will be approved without seeking written consultation from the appropriate local labor organization.
5. (11) Funds for the basic industry training program will provide contractual services through the DESE for vocational related training or retraining provided by public or private training institutions within Missouri; and for separately contracted services for vocational-related training or retraining institutions located outside of Missouri and for vocational-related training provided on-site within Missouri.

AUTHORITY: section 620.474, RSMo (1994).* Original rule filed May 4, 1987, effective July 23, 1987. Amended: Filed May 14, 1996, effective Dec. 30, 1996. *Original authority 1986.