Senate Committee Substitute

SCS/SB 389 - This act modifies a number of provisions regarding higher education and the powers of the Missouri Higher Education Loan Authority (MoHELA).

JOINT COMMITTEE ON EDUCATION - SECTION 160.254 - This act modifies the responsibilities of the Committee. Currently, it is within the discretion of the Committee as to how often it meets. This act requires the Committee to meet at least twice a year. The Committee is charged with monitoring, studying, and analyzing the higher education system in the state, as well as monitoring the establishment of performance measures required by this act and reporting on such measures to the General Assembly and the Governor. In addition to current state agencies, the act authorizes the Committee to make requests of the Department of Economic Development.

TRANSFER OF CREDITS - SECTION 173.005.1(7) - Two- and four-year institutions must work with the commissioner of higher education to establish agreed-upon competencies for certain entry-level courses. The coordinating board for higher education shall establish policies to ensure that such courses are accepted in transfer among public institutions.

INSTITUTIONS DISREGARDING BOARD POLICY - SECTION 173.005.1(10) - If an institution willfully disregards a coordinating board policy, the commissioner may order the institution to remit a fine not to exceed one percent of the institution's current state appropriation to the board. The board shall hold the funds until such time as the violation is corrected. If the violation is not corrected within a year, the fine amount shall be deposited into the general revenue fund. The institution may appeal to the full coordinating, which shall make a binding and final decision.

OUT-OF-STATE PUBLIC INSTITUTIONS - SECTIONS 173.005.2(11) & 173.616 - Currently, the coordinating board issues certificates of approval to operate within this state to certain out-of-state public higher education institutions that meet certain minimal standards. This act exempts such institutions, as of July 1, 2008, from certificates of approval. The act requires the coordinating board to hold out-of-state public higher education institutions to criteria similar to those required of public in-state higher education institutions in order for such institutions to operate within this state. The coordinating board shall promulgate rules for the implementation of this act no later than July 1, 2008.

ACTUAL AWARDS OF ASSISTANCE - SECTION 173.093 - Any award of assistance, excluding student loans and awards based solely on academic performance, shall be reduced to ensure that no student receiving state need-based shall receive financial assistance that exceeds the student's cost of attendance. Institutions must, upon request from the department of higher education, provide financial information to determine compliance with this section. An institution that accepts financial assistance in excess of the cost of attendance must refund the excess to the coordinating board.

BINDING DISPUTE RESOLUTION - SECTION 173.125 - The act requires that every public institution of higher education submit to binding dispute resolution with regard to disputes among institutions of higher education that involve jurisdictional boundaries or the use or expenditure of any state resources whatsoever, as determined by the coordinating board. In all cases, the arbitrator shall be the Commissioner of Higher Education or a designee, whose decision shall be binding on all parties. Any institution aggrieved by a decision of the commissioner may appeal the decision to the full coordinating board, which shall have the authority to make a binding and final decision regarding the matter.

LEWIS AND CLARK DISCOVERY INITIATIVE - SECTION 173.475 - The act authorizes MoHELA to cooperate by contract with the department of economic development, the Missouri development finance board, and the curators of the University of Missouri, in connection with the Initiative. The purpose shall be the transfer of certain funds from MoHELA to the development finance board for the use of such funds by the development finance board for capital projects at state educational institutions, except for certain identified capital projects, and by the Missouri technology corporation. Research in life sciences capital projects using MoHELA funds must be consistent with federal law and presidential executive orders in effect on February 1, 2007. Any allocation of private activity bonds in connection with the cooperation agreement creating the Initiative and the resolution of the development finance board shall be for a period not to exceed 11 years.

The act provides immunity from personal liability for members of MoHELA who act or votes on any contract authorized by this section.

HIGHER EDUCATION STUDENT FUNDING ACT - SECTIONS 173.1000 to 173.1006 - Each public institution must submit its percentage increase in the amount of tuition and required fees charged to a full-time resident undergraduate to the coordinating board at least 3 months prior to the beginning of the academic year. If the percentage increase is greater than the percentage increase in the consumer price index over the past year, then such institution must remit to the board an amount equal to 5% of its current year state appropriation, which shall be deposited into the general revenue fund, unless the institution asks for a waiver within 30 days. If an institution exceeds these limits, then such institution must remit to the board an amount equal to 5% of its current year state appropriation, which shall be deposited into the general revenue fund, unless the institution asks for a waiver within 30 days. The commissioner shall recommend to the full board as to whether a waiver should be granted. The full coordinating board shall make a final and binding decision on the appeal.

The coordinating board shall ensure that each public higher education institution makes pertinent information regarding course offerings and instructors available on its website.

The provisions of this section regarding tuition increases do not apply to an institution that charges $100 or less per credit hour.

The act requires that certain performance measures must be established by July 1, 2008. There shall be two institutional measures negotiated by each institution and three state-wide measures developed by the department of higher education.

ACCESS MISSOURI FINANCIAL ASSISTANCE PROGRAM - SECTIONS 173.1101 to 173.1107 - The coordinating board shall be responsible for the implementation of this program, including determining the criteria for eligibility of applicants and selecting qualified recipients to receive financial assistance. Renewals for assistance are based on an annual evaluation of the applicant's expected family contribution. Changes in such contribution may increase or decrease the amount of assistance to an applicant. The act creates the "Access Missouri Financial Assistance Fund" to receive moneys that shall be used solely to provide financial assistance to students.

Assistance is only available to an applicant who is: A U.S. citizen or permanent resident; a Missouri resident; enrolled, or will enroll, as a full-time student in an approved public or private institution; and not intending to obtain a degree in theology or divinity. Applicants who commit criminal offense while in the program are ineligible for renewal. In order to renew assistance, the applicant must demonstrate a grade point average of 2.5 on a 4.0 scale.

The maximum and minimum amounts of awards depend on the type of school: $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 actual award may increase or decrease depending on the expected family contribution. If appropriated funds are insufficient to fund the program, the maximum award shall be reduced across all types of institutions. If appropriated funds exceed the amount necessary to fund the program, the additional funds shall be used to increase the number of recipients. The award amounts shall be adjusted every three years based on the consumer price index.

Any other assistance received by the student shall be reported to the coordinating board by the institution and the student. A recipient of financial assistance may transfer between approved institutions without losing eligibility, and the coordinating board shall make any adjustments to the amount of assistance.

The provisions of the Access Missouri Financial Assistance Program shall sunset in six years.

GALLAGHER STUDENT FINANCIAL ASSISTANCE PROGRAM AND COLLEGE GUARANTEE PROGRAM - SECTIONS 173.200 to 173.230 and SECTIONS 173.810 to 173.830 - The act repeals both of these programs and directs that certain gambling boat boarding fee revenue that currently goes to the Missouri College Guarantee Fund be instead deposited into the Access Missouri Financial Assistance Program.

This act contains an emergency clause.

This act is similar to HCS/SS/SCS/SB 590 (2006).

JIM ERTLE


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