- House Committee Substitute -

HCS/SB 745 - This act makes several changes to higher education law.

STUDENT AND FACULTY REPRESENTATIVES - This act makes several changes in the representation on the governing bodies of public colleges and universities. These changes affect the governing boards at the University of Missouri, Lincoln University, Truman State University, and the four-year state colleges and universities. These provisions are similar to SCS/HCS/HBs 1363 & 906

The student representative to the governing board of each of these institutions shall receive reimbursement for expenses related to board meeting attendance. The student representative shall have paid all student fees and tuition prior to appointment to the board and while serving on the board, unless alternative arrangements have been made and agreed to by the student and the institution.

The student representatives may attend closed meetings of the board unless the voting board members who are present unanimously vote to exclude them from the closed meeting.

The act establishes a faculty member representative as a nonvoting member of each institution's governing body. A panel of three names of full-time faculty members is to be submitted to the Governor by each institution's faculty governing association. From the panel of names, the Governor will appoint the faculty member representative, with the advice and consent of the Senate. Faculty appointments to the Board of Curators of the University of Missouri will rotate among each of the 4 campuses, beginning with the Columbia campus, followed by the Kansas City campus, the Rolla campus, and the St. Louis campus. The faculty member representative at each institution must be a U.S. citizen and a Missouri resident. Faculty member representatives shall serve two year terms and receive reimbursement for necessary expenses of attending board meetings. Faculty member representatives may attend closed meetings of the board unless the voting board members who are present unanimously vote to exclude them from the closed meeting. Provisions for filling faculty vacancies on the boards are specified.

The act requires that confidentiality, as provided by board policy and law, apply to all members and representatives on the governing boards and allows any member or representative to voluntarily recuse himself from any board deliberation or proceeding.

HIGHER EDUCATION SAVINGS PLAN - This act creates the "MOSTARS Higher Education Savings Program". The program shall be administered by the MOSTARS Higher Education Savings Board which is established in this act. Powers and duties of the Board are granted to develop and implement the program.

The Board may enter into a savings program agreement with a contributor person on behalf of beneficiary who intends to attend a college or university. An agreement shall not guarantee that the beneficiary will be admitted to, allowed to continue to attend or graduate from a college or university. A participation agreement shall clearly disclose any risk associated with depositing moneys with the Board. No more than eight thousand dollars may be contributed annually pursuant to a participation agreement.

Any participant may cancel a participation agreement at will. Return of funds may be subject to penalties established by the Board.

The assets of the savings program and any income therefrom shall be exempt from all taxation by the state or any of its political subdivisions. Income earned or received from the fund by any participant or beneficiary shall not be subject to state income tax. Contributions made to the savings plan shall not be counted towards the calculation of gross income for state income tax purposes.

Rules promulgated by the Board shall be subject to review by the Joint Committee on Administrative Rules.

The Director of Investment of the State Treasurer's office shall review the financial status and investment policy of the program as well as the participation rate in the program and report the findings annually to the Board.

Money accruing to and deposited in individual accounts shall not be part of "total state revenues" as defined in sections 17 and 18 of Article X of the Missouri Constitution and the expenditure of such revenues shall not be an expense of state government under section 20 of Article X of the Missouri Constitution.

This portion of the act is similar to SB 862.

REGULATION OF INDEPENDENT COLLEGES AND UNIVERSITIES - The Coordinating Board for Higher Education shall not penalize independent institutions for failure to comply with Board policies by withholding funds or withdrawing accreditation status. The Coordinating Board shall not prevent independent institutions from establishing new courses, programs or locations nor limit student financial assistance to the institution.

DEFAULTED HIGHER EDUCATION LOANS - The act provides for the revocation, suspension, nonrenewal or nonissuance of professional licenses of those in default on the repayment of any student loan administered by the Department of Higher Education.

The Department of Higher Education shall provide the names of individuals in default on the repayment of any student loan to the Director of the Division of Professional Registration, the State Board of Education, the Clerk of the Supreme Court, and the Director of the Department of Insurance.

The Department of Higher Education shall establish a procedure for determining when a person has made satisfactory arrangements to ensure repayment of a student loan in default. Appeal procedures for persons aggrieved by decisions made by the Department are provided.

The Department of Higher Education may garnish any state payment, including income tax refunds and lottery winnings, to persons in default on student loans administered by the Department.

The act authorizes the following actions in cases where individuals have defaulted on their student loans and have not made satisfactory arrangements to ensure repayment:

(a) Licenses to teach will not be issued or renewed and will be suspended or revoked by the State Board of Education;

(b) Licenses for insurance agents and brokers will not be issued or renewed by the Department of Insurance;

(c) Licenses for those regulated by boards and commissions within the Division of Professional Registration will not be issued or renewed;

(d) Persons will not be allowed to take the bar exam and will not be admitted to the Missouri bar and attorneys will not be allowed to renew their annual license fee;

(5) Specifies that attorneys who in bad faith avoid the repayment of any student loan have engaged in professional misconduct and may be removed or suspended from practice. If a student loan is discharged by a bankruptcy proceeding, an attorney's behavior may be reviewed to determine if it constitutes bad faith; and

(6) Requires the Division of Professional Registration to maintain a registry of licensees, in which the student loan repayment status of each licensee is indicated.

The act prohibits adverse licensing actions in cases in which an individual has defaulted on a student loan and has not made satisfactory arrangements to ensure repayment, but the most recent notice from the Department of Higher Education indicates that satisfactory arrangements to ensure repayment have been made.

This portion of the act is similar to HB 926.

RULEMAKING - Rules promulgated by the State Board of Education pursuant to Chapters 160 and 161, RSMo, and rules promulgated by the Coordinating Board for Higher Education pursuant to Chapter 173, RSMo, must comply with Chapter 536, RSMo. Rules currently in effect shall remain in effect, and any new rules are considered nonseverable from the authority of the Joint Committee on Administrative Rules to review agency rules.

OTTO FAJEN