SB 200 – This act modifies the ability of state educational institutions to issue bonds and incur debt. This act removes the authority of the Missouri Development Finance Board, Missouri Health and Educational Facilities Authority, Missouri Housing Development Commission, and the Environmental Improvement and Energy Resources Authority to issue loans to state educational institutions.
This act prohibits a state educational institution from issuing revenue bonds or incurring debt for the payment of revenue bonds from any source, unless approved by the Missouri Higher Education Loan Authority. The Authority may only approve the issuance of revenue bonds by a state educational institution or make a loan to a state educational institution when the following conditions are met: the institution must receive an "A" or better bond credit rating by an independent credit rating service; the authority has evaluated the ability of the institution to increase tuition and fees and finds no impediment for the payment of bonds or repayment of the loan; the institution has already put in place a tuition or fee increase, or other revenue stream, to pay the bonds or repay the loan prior to the actual bond issuance or incurrence of the debt; and the ability of the institution to pay the bonds or repay the loan is not contingent on state funding that has not been granted. If the institution has not already increased tuition or fees or put a new revenue stream in place, the authority may approve the bonds or loan if an independent credit rating service determines that the institution has existing tuition, fees, and revenues at a sufficient level to pay the bonds or repay the loan.
In addition, any issuance of revenue bonds by state educational institutions under chapter 176 must be approved by the Missouri Higher Education Loan Authority.
MICHAEL RUFF