SS#6 SCS SB 389 -- HIGHER EDUCATION

This bill changes the laws regarding higher education and the
powers of the Missouri Higher Education Loan Authority (MOHELA).

LEWIS AND CLARK DISCOVERY INITIATIVE

MOHELA is authorized to transfer assets, as specified in the
bill, to the newly created Lewis and Clark Discovery Fund.
MOHELA must distribute $350 million of its assets to the fund no
later than September 30, 2013, and moneys in the fund may be
appropriated by the General Assembly only for capital projects at
public colleges and universities and to the Missouri Technology
Corporation to identify opportunities for commercializing
technologies at these institutions.  Any college or university
that knowingly employs a registered sexual offender will be
ineligible for capital projects funds.

After an initial distribution of $230 million to the fund, the
Department of Economic Development will allocate a percentage,
within the limits specified in the bill, of the state ceiling for
private activity bonds to MOHELA for at least the next 15 years.
If the total distribution of assets is not completed by MOHELA by
September 30, 2013, the ceiling dollar amount received by MOHELA
will be reduced by the percentage of the $350 million not yet
distributed.  MOHELA moneys cannot be used to pay state debts.
Immunity from personal liability is granted to members of MOHELA
for certain decisions.  MOHELA is authorized to issue bonds to
fulfill its obligations regarding the transfer of assets to the
fund and may establish or invest in financial aid programs that
provide student grants and scholarships.

SCHOLARSHIPS

The Coordinating Board for Higher Education will implement the
need-based Access Missouri Financial Assistance Program to
replace the current Charles Gallagher Student Assistance Program
and the Missouri College Guarantee Program.  Applicants must be
Missouri residents who are United States citizens or permanent
residents enrolled as full-time students in an approved public or
private institution.  In order to renew assistance, the applicant
must have at least a 2.5 grade point average on a 4.0 scale.  The
minimum and maximum amount of the award will be $300 to $1,000
for public two-year institutions; $1,000 to $2,150 for public
four-year institutions; and $2,000 to $4,600 for private
institutions.  The award is based on the expected family
contribution rather than the cost of attendance at any individual
institution and will be adjusted every three years based on the
federal Consumer Price Index.  Students and institutions must
report any other assistance to the board.  A recipient of
financial assistance may transfer between approved institutions
without losing eligibility, and the board will adjust the award
accordingly.

The bill establishes the Missouri Teaching Fellows Program and
specifies that certain qualified graduates of Missouri public
higher education institutions who are hired to teach in a school
district that is not accredited may enter into a loan repayment
agreement with the Department of Higher Education.  Students
without educational loans may receive a stipend.  The $5,000
maximum and the final year's $1,000 stipend will be adjusted
annually based on the federal Consumer Price Index.  The
department will establish rules including, but not limited to,
applicant eligibility, selection criteria, and the content of
loan repayment contracts.  The department will create and
maintain a coordinator position to identify, recruit, and select
potential students for the program.

Bright Flight scholarships are increased from $2,000 to $3,000
beginning with Fiscal Year 2011.  Currently, only students with
standardized test scores in the top 3% qualify for the
scholarship.  Beginning with Fiscal Year 2011, students with
scores between the top 3% and 5% will qualify for a $1,000
scholarship.

Any award of assistance, excluding student loans and awards based
solely on academic performance, will be reduced to ensure that no
student's need-based aid will exceed the student's cost of
attendance.  An institution accepting financial assistance in
excess of the cost of attendance must refund the excess to the
board.

HIGHER EDUCATION STUDENT FUNDING

The bill establishes the Higher Education Student Funding Act
which requires, beginning with the 2008-2009 academic year, each
public institution to submit its percentage increase in tuition
for a full-time resident undergraduate to the board by July 1.
For institutions whose tuition is greater than the average
tuition, the percent change in tuition cannot exceed the percent
change of the federal Consumer Price Index over the past year or
zero, whichever is greater.  For institutions whose tuition is
less than the average tuition, the dollar increase in tuition
cannot exceed the product of zero or the percent change in the
index, whichever is greater, times the average tuition.  Limits
on tuition increases do not apply to a community college unless
the college's tuition is greater than or equal to the average
tuition.  If the tuition increase exceeds the limit, the
institution must remit 5% of its current state appropriation to
the board for deposit into the General Revenue Fund, unless the
institution asks for a waiver within 30 days.  The Commissioner
of Higher Education will determine if the waiver is warranted or
recommend to the board that the waiver be denied.  The board will
make the final decision.

Two institutional performance measures negotiated by each
institution and three statewide performance measures developed by
the department must be established by July 1, 2008.  Public
higher education institutions must make pertinent course and
instructor information available on their web sites.

JOINT COMMITTEE ON EDUCATION

The Joint Committee on Education must meet at least twice a year
and will monitor and analyze higher education, as well as
establish the performance measures required by the bill and
report its findings to the General Assembly and the Governor.
The Department of Economic Development is added to the list of
state agencies which are required to provide research assistance
to the committee.  Within three years, the committee will review
the impact of the newly created higher education funding
provisions and a new model for the funding of higher education
institutions.

MISCELLANEOUS PROVISIONS

If a public higher education institution willfully disregards a
coordinating board policy, the commissioner may fine the
institution up to 1% of its current state appropriation.  The
board will hold the funds until the violation is corrected.  If
the violation is not corrected within a year, the fine will be
deposited into the General Revenue Fund.  The institution may
appeal to the board, which will make the final decision.  Every
public higher education institution must submit to binding
dispute resolution involving jurisdictional boundaries or the use
of state resources.  The arbitrator will be the commissioner or a
designee.  Any institution may appeal the decision to the board,
which has the authority to make a final decision.

Currently, the board issues certificates of approval to operate
to out-of-state public higher education institutions which meet
certain standards.  These institutions will be exempt from the
certificate of approval as of July 1, 2008.  The board must hold
out-of-state institutions to requirements similar to public
in-state institutions, and the board must establish rules for
this provision by July 1, 2008.

A public college or university cannot reject an applicant for a
faculty position based solely on the lack of a graduate degree if
the applicant has an undergraduate degree and has served at least
eight years in the General Assembly.

The curators of the University of Missouri may close certain
financial, legal, and tax records of a donor or potential donor.

In order to receive increases in state appropriations, two- and
four-year public institutions must work with the commissioner to
establish agreed-upon competencies for certain entry-level
courses.  The board will establish policies to ensure the
transferability of the courses, and the Department of Elementary
and Secondary Education will align the statewide assessments with
the competencies.

The board of regents of Northwest Missouri State University is
authorized to convey certain property in Nodaway County.

The provisions regarding the Access Missouri Financial Assistance
Program and the Missouri Teaching Fellows Program will expire six
years from the effective date.

Missouri House of Representatives
94th General Assembly, 1st Regular Session
Last Updated July 25, 2007 at 11:22 am