HCS SS SCS SB 590 -- HIGHER EDUCATION

SPONSOR:  Nodler (Kingery)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Higher
Education by a vote of 11 to 0.

This substitute changes the laws regarding higher education.

POWERS OF THE COORDINATING BOARD OF HIGHER EDUCATION

The Commissioner of Higher Education is authorized to impose
fines on public higher education institutions that willfully
disregard board policies, not to exceed 1% of the institution's
current fiscal year state appropriation.  The funds will be
withheld until the commissioner determines that the institution
has corrected the violation.  Every public higher education
institution must submit to binding dispute resolution when
disputes involve jurisdictional boundaries or the use or
expenditure of any state resources.  In all cases, the arbitrator
will be the commissioner or a designee, whose decision will be
binding on all parties.  Any institution aggrieved by a decision
may appeal it to the full coordinating board, which will make a
final decision.

Currently, the coordinating board issues certificates of approval
to operate in Missouri to certain out-of-state public higher
education institutions that meet minimal standards.  The
substitute exempts the institutions from the current standards,
revokes their certification, and requires recertification under
standards substantially similar to the ones used for in-state
public institutions as of July 1, 2009.  The coordinating board
must promulgate rules for the implementation of the standards by
December 31, 2007.

COORDINATED EDUCATIONAL PLANNING

The Commissioner of Higher Education, the chair of the
Coordinating Board for Higher Education, the Commissioner of
Education, the President of the State Board of Education, and the
Director of the Department of Economic Development are required
to meet and discuss ways in which their departments may
collaborate to achieve an educational system that more adequately
prepares students for the challenges of entering the workforce.
The agencies will jointly make recommendations to the General
Assembly and the Governor on policy initiatives.

SPECIFIC HIGHER EDUCATION INSTITUTIONS

Currently, the University of Missouri annually requests an
appropriation under capital improvements for a program of grants
established for the engineering colleges of the university system
which expires on June 30, 2007.  The substitute will extend the
expiration date to June 30, 2017.

The governors of Missouri State University will serve six-year
terms.  The voting members of the board serving on August 28,
2005, will serve until the expiration of the terms for which they
were appointed; and for those appointed after August 28, 2005,
the terms of office will be established so that no more than
three terms expire in any year.

STUDENT AID

The substitute establishes the following student aid programs:

(1)  A tuition grant for any member of the United States
military, whether active duty, reserve, or national guard, who
served on or after September 11, 2001, and is a citizen of
Missouri, surviving spouses, and children;

(2)  A waiver of tuition and fees at state-funded colleges or
universities for eligible foster children if they are Missouri
residents; have graduated from high school or received a GED
within the last three years; have been accepted for admission at
a state-funded college or university; have applied for other
student financial assistance; have been in foster care under the
Department of Social Services on or after one of the dates
specified in the substitute; complete community service or public
internship as required under the substitute; and apply to the
Coordinating Board for Higher Education; and

(3)  Up to 25 tuition grants for up to 50% of tuition costs, the
actual cost of books up to $500 per semester, and up to $2,000
per semester for room and board for the surviving spouses and
children of any member of the military who was killed in the line
of duty and who was, at the time of enlistment and death, a
citizen of Missouri.

The Department of Revenue will study the fiscal implications of
providing a tax deduction for higher education tuition and fee
expenses for those persons earning less than $100,000 annually
and report the findings to the General Assembly no later than
January 1, 2007.

OTHER PROVISIONS

The assessed value thresholds for tax rates that may be imposed
without voter approval by junior college districts are increased
by $250 million.

Currently, an appointee to the State Board of Education may not
have any connection with a college or university.  The substitute
removes the restriction.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $331,721
to Unknown in FY 2007, $348,571 to Unknown in FY 2008, and
$364,167 to Unknown in FY 2009.  Subject to appropriation,
unknown expected to exceed $100,000.  No impact on Other State
Funds in FY 2007, FY 2008, and FY 2009.

PROPONENTS:  Supporters say that the Coordinating Board has a
rather limited range of powers.  The bill provides some
intermediate level options for dealing with institutions.  The
section on bringing higher education, economic development, and
elementary and secondary education together on a regular basis
will be very helpful in meeting everyone's needs, whether they
are teachers, professors, or employers.

Testifying for the bill were Representative Kingery for Senator
Nodler; Coordinating Board for Higher Education; Dr. Ken Dobbins,
Southeast Missouri State University; Missouri State Teachers
Association; and Greg Burris, Missouri State University.

OPPONENTS:  There was no opposition voiced to the committee.

OTHERS:  Others testifying on the bill say it might be a good
place to address some barriers for students that concern Missouri
Higher Education Loan Authority's ability to originate loans for
tutoring services.

Others testifying on the bill was Missouri Higher Education Loan
Authority.

Becky DeNeve, Senior Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:46 am