Missouri Statute | Act | Code |Education And Libraries| US Code - US Statute | Chapter 173 Department Of Higher Education

As used in sections 173.500 to 173.565, unless the context
clearly requires otherwise, the following terms shall mean:

(1) "Applied project", any activity which seeks to utilize, synthesize,
or apply existing knowledge, information, or resources to the resolution
of a specified problem, question, or issue;

(2) "Board of curators", the board of curators for the University of
Missouri;

(3) "Coordinating board", the Missouri coordinating board for higher
education;

(4) "Department", the Missouri department of economic development;

(5) "Institution", any approved private institution or approved public
institution, as these terms are defined in section 173.205, which are
certified as such by the coordinating board;

(6) "Research project", any original investigation for the advancement of
scientific or technological knowledge;

(7) "Small business", an independently owned and operated business as
defined in title 15 U.S.C. section 632A and as described by title 13 CFR
part 21; and

(8) "University", any institution of higher learning located within this
state which has one or more campuses, offers doctoral level degrees,
conducts basic research activities, and is federally or privately
sponsored or funded, or both federally and privately sponsored or funded.
(L. 1982 H.B. 1375 § 2, A.L. 1986 S.B. 426)

There is hereby created the "Higher Education Research Fund"
which shall be administered by the board of curators and which shall
contain such moneys as appropriated to it by the general assembly. Moneys
in the research fund shall be kept separate from all other funds of the
university and shall be expended for the purposes specified in sections
173.500 and 173.515 to 173.535 and for no other purpose. The board of
curators shall provide such information and reports as the coordinating
board may require concerning expenditure from the research fund. (L. 1982
H.B. 1375 § 3 subsec. 1, A.L. 1986 S.B. 426)

The board of curators shall solicit and select proposals for
research projects from persons associated with a university to be funded
pursuant to sections 173.500 to 173.565, according to procedures approved
by the coordinating board. The selection procedures shall provide for
external peer review, assessment of the capacity of each research project
to enhance employment opportunity within this state, and as evaluation of
the potential of each research project to encourage private investment
for a research project that would affect the Missouri economy. The
selection procedures shall give consideration to the recommendations of a
steering committee established by the board of curators and to include at
least one representative each of all eligible institutions. (L. 1982 H.B.
1375 § 3 subsec. 2, A.L. 1986 S.B. 426)

1. Moneys from the research fund shall be used to defray a
maximum of thirty-three and one-third percent or, for small business, a
maximum of sixty-six and two-thirds percent of the expenses associated
with any research project approved by the board of curators for funding
under sections 173.500 to 173.565. The remaining sixty-six and two-thirds
percent or, for small business, the remaining thirty-three and one-third
percent of the expenses associated with any such project shall be
contributed by a source other than the state or federal government. The
board of curators shall approve for funding only those research projects
for which:

(1) Contributions were not committed for the same or related research
prior to August 13, 1982;

(2) Contributions have been obtained entirely from sources other than the
state or federal governments, student fees, institutional endowment or
other moneys used to fund the operating budget of the university; and

(3) Funding is consistent with the purposes of sections 173.500 to
173.565.

2. Only those expenses which are usually and customarily attendant to
academic research shall be provided, including, without limitation,
salaries of the principal investigators and assistants and the purchase
of equipment and supplies. Moneys in the fund shall in no event be used
to defray any portion of costs normally attributable to overhead.

3. Notwithstanding other provisions of sections 173.500 to 173.565 to the
contrary, the board of curators may, in an amount not to exceed
twenty-five percent of any appropriation to the higher education research
fund, use such moneys to defray not more than thirty-three and one-third
percent of the expenses associated with what is considered a "higher
education applied project" as that term is used by sections 173.545 to
173.565 which the board of curators deems to be of unusual promise. (L.
1982 H.B. 1375 § 3 subsec. 3, A.L. 1986 S.B. 426)

Ownership of all equipment and supplies, and any patents or
copyrights which might be developed either directly or indirectly as a
result of the funding provided by sections 173.500 and 173.515 to 173.535
shall be determined in accordance with the applicable rules and
regulations of the university involved in the project. (L. 1982 H.B. 1375
§ 3 subsec. 4, A.L. 1986 S.B. 426)

Reasonable and necessary administrative costs for the
solicitation and evaluation of research project proposals, and for the
preparation of information and reports concerning the research fund,
shall be chargeable to the research fund, subject to the approval of the
board of curators. All other expenses attendant to the administration of
the research fund, including solicitation of private contributions and
the administration of individual grants, shall be borne by the university
involved. Decisions of the board of curators with respect to selection of
research projects shall be final. (L. 1982 H.B. 1375 § 3 subsec. 5, A.L.
1986 S.B. 426)

1. There is hereby created the "Higher Education Applied
Projects Fund" which shall be administered by the department of economic
development and which shall contain such moneys as are appropriated to it
by the general assembly. Moneys in the applied projects fund shall be
kept separate from all other funds of the department and shall be
expended for the purposes specified in sections 173.500 and 173.545 to
173.565, and for no other purpose. The department shall establish
procedures to ensure accountability for the applied projects fund and
shall submit an annual report and such information as the governor may
require concerning the activity of the applied projects fund.

2. Fifty percent of the funds annually allocated by the department of
economic development to defray the expenses associated with applied
projects shall be directed to projects which are intended to produce a
positive economic impact, in such areas as value-added manufacturing and
agriprocessing, upon rural communities as defined in section 620.160,
RSMo. (L. 1982 H.B. 1375 § 4 subsec. 1, A.L. 1986 S.B. 426, A.L. 1989
H.B. 378)

The department shall establish appropriate procedures, in
accordance with the purposes of sections 173.500 to 173.565, for
selection of applied project proposals submitted to it by institutions.
Proposals submitted by the University of Missouri system, directly or
indirectly, shall not be eligible for funding. (L. 1982 H.B. 1375 § 4
subsec. 2, A.L. 1986 S.B. 426)

1. Moneys from the applied projects fund shall be used to defray
a maximum of fifty percent or, for small business, a maximum of sixty-six
and two-thirds percent of the expenses associated with any applied
project approved by the department for funding under sections 173.500 to
173.565, provided that the remaining fifty percent or, for small
business, the remaining thirty-three and one-third percent of the
expenses associated with any such project is contributed by or through
sources other than the state or federal government. The department shall
approve for funding only those applied projects for which:

(1) Contributions were not committed for the same or related applied
projects prior to August 13, 1982;

(2) Contributions have been obtained from sources other than the state or
federal governments, student fees, institutional endowment or other
moneys used to fund the operating budget of any institution;

(3) Enhanced employment opportunity within this state will likely result;
and

(4) Funding of the project is otherwise consistent with the purposes of
sections 173.500 and 173.545 to 173.565.

2. Only those expenses which are usually and customarily attendant to
academic research shall be provided, including, without limitations,
salaries of principal directors and assistants and the purchase of
equipment and supplies. Moneys in the applied projects fund shall in no
event be used to defray costs normally attributed to institutional
overhead. The chargeability of any disputed item shall be determined by
the department, and decisions of the department with respect to selection
of applied projects shall be final. (L. 1982 H.B. 1375 § 4 subsec. 3,
A.L. 1986 S.B. 426)

Ownership of all equipment and supplies, and any patents or
copyrights which might be developed either directly or indirectly as a
result of the funding provided under sections 173.500 and 173.545 to
173.565 shall be governed by the appropriate institution's rules and
regulations applicable to these matters. (L. 1982 H.B. 1375 § 4 subsec. 4)

Reasonable and necessary administrative costs for the
solicitation and evaluation of applied project proposals, and for the
preparation of reports concerning the applied projects fund, shall be
chargeable to the fund, subject to the approval of the director of the
department. All other expenses attendant to the administration of the
applied projects fund, including solicitation of private contributions
and the administration of individual grants, shall be borne by the
appropriate institution. All expenses charged to the applied fund shall
be itemized and shall be included in the department's annual report. (L.
1982 H.B. 1375 § 4 subsec. 5, A.L. 1986 S.B. 426)

As used in sections 173.600 to 173.618, unless the context
clearly requires otherwise, the following terms mean:

(1) "Agent", any employee, solicitor, or other person who, for
remuneration, by any means and at a place away from the school premises
or site of instruction, enrolls or attempts to enroll a resident of this
state in a course or courses of instruction or study offered or
maintained by a proprietary school, wherever located, or otherwise hold
himself out to a resident of this state as representing a proprietary
school for such purpose;

(2) "Board", coordinating board for higher education;

(3) "Certificate", any award that does not have a degree designation;

(4) "Certificate of approval", approval of the board to operate a school
in compliance with the provisions of sections 173.600 to 173.618 and
rules and regulations promulgated pursuant to law;

(5) "Degree", any award, earned or honorary, conferred with the
designation of associate, baccalaureate, masters, professional, or
professional development, specialist, or doctorate;

(6) "Department of higher education", the state department charged with
administering the rules and regulations as provided for herein, operating
within the guidelines approved by the board;

(7) "Operate", to establish, keep, or maintain any facility at a location
or locations in this state where, from, or through which education is
offered or given and shall include contracting with any person, group, or
entity to perform any such act;

(8) "Person", any individual, corporation, partnership, association, or
business entity of any kind or description;

(9) "Proprietary school" or "school", any person not specifically
exempted in section 173.616 or other provisions of sections 173.600 to
173.618, which offers or maintains on either a profit or not-for-profit
basis within the state of Missouri a course or courses of instruction or
study through classroom instruction or correspondence or which grants
certificates or earned or honorary degrees;

(10) "Proprietary school advisory committee" or "committee", a
seven-member committee appointed by the board as provided in section
173.614;

(11) "Public institution", a postsecondary educational institution
established by provisions of Missouri constitution or statutory law or
established by the voters of the district in which it is located, which
is funded fifty percent or more of its operating costs from public funds;
which is governed by a body appointed by the governor and approved by the
senate, or selected by the voters of the district in which it is located,
and which operates on a not-for-profit basis;

(12) "Religious degree" or "religious program", any degree or program
with a specific theological, biblical, divinity, or other religious
designation;

(13) "Rules and regulations", the rules and regulations recommended by
the proprietary school advisory committee and adopted by the board as
authorized and provided for by sections 173.600 to 173.618. (L. 1983 H.B.
560 § 1, A.L. 1991 H.B. 51, et al.)

After one year from September 28, 1983, no proprietary school,
wherever domiciled or having its principal place of business, shall offer
for sale, directly or through an agent, any course or solicit any
prospective student in the state of Missouri without possessing a valid
certificate of approval as required by sections 173.600 to 173.618. (L.
1983 H.B. 560 § 5, subsec. 2)

1. The board shall issue certificates of approval to proprietary
schools that meet the minimum standards established pursuant to the
provisions of sections 173.600 to 173.618.

2. Minimum standards for proprietary schools shall be established in the
rules and regulations and shall require that:

(1) Educational and experience qualifications of directors,
administrators, and instructors are adequate for students to receive
training consistent with the published objectives of the course or
program of study;

(2) The course, curriculum and instruction are of adequate level,
content, and duration to achieve the published objectives for which they
are offered;

(3) The school has adequate facilities and equipment to train, instruct
or educate the number of students enrolled or proposed to be enrolled;

(4) The school has a sound financial structure with sufficient resources
for its continued operation;

(5) The following shall be available in writing to each student: course
outline, course objective, schedule of tuition, fees and other charges,
cancellation and refund policy, appropriate financial aid information,
regulations pertaining to absence, student evaluation, and student
conduct;

(6) The school shall have a fair and equitable refund policy for the
refund of the unused portion of tuition, fees, and other charges in the
event that a student enrolled in the school fails to begin a course,
withdraws, or is discontinued therefrom at any time prior to completion;

(7) Satisfactory standards relating to attendance, progress, and conduct
are established and enforced by the school;

(8) Upon satisfactory completion of training, the student is given a
certificate, diploma, or degree by the school indicating completion of
the course or courses;

(9) No earned certificate or degree may be given, awarded, or granted
solely on the basis of payment of tuition or fee, credit earned at
another school or schools, on the basis of credit for life experience or
other equivalency, on the basis of testing out, on the basis of research
and writing, or solely on the basis of any combination of these factors.
No honorary degree may be given, awarded, or granted by any school which
does not give, award, or grant an earned degree and no fee or other
charge may be assessed for giving, awarding, or granting an honorary
degree;

(10) No school, whether certified or exempted, may advertise as having a
Missouri presence or use a Missouri address on its letterhead in the
absence of that school conducting an actual instructional activity in
this state;

(11) The school or its agents do not utilize advertising of any type
which is untrue, deceptive, or misleading. The name of the school shall
appear in all media advertising;

(12) The school or its agents do not sell or offer to sell material or
service by written, visual, or oral misrepresentation;

(13) Adequate financial and academic records are maintained;

(14) The school is maintained and operated in compliance with all
pertinent ordinances and laws relative to the safety and health of all
persons on the premises;

(15) Governmental student financial aid, including both grants and loans,
awarded through or by the school shall be administered in compliance with
all applicable law and regulations;

(16) Provisions are made by the school to file student transcripts and
all other student records as specified in the rules and regulations with
a repository approved by the board should the school terminate its
operations. Failure to comply with this subdivision in the event of a
school terminating operations shall result in forfeiture of the security
deposit as required by section 173.612.

3. The board shall accept accreditation by national or regional
accrediting agencies recognized by the United States Department of
Education as evidence of partial or complete compliance with standards
established by the board pursuant to this section. Such acceptance shall
be on a school-by-school basis.

4. The board may dispense with investigation of an out-of-state applicant
and may grant a certificate of approval upon payment of the required
fees, provided that in the board's judgment, requirements for approval in
the state, territory, or District of Columbia are substantially equal to
those in force in Missouri at the time application for approval is filed
and upon due proof that such applicant has continually operated a
proprietary school for two years, and holds a current license in the
other state. (L. 1983 H.B. 560 § 6, A.L. 1991 H.B. 51, et al.)

1. Annually, each proprietary school desiring to operate in this
state shall make written application to the board on forms furnished by
the board. Such application shall include the identification of all
locations operated by a proprietary school and shall identify a single
location as a principal facility for the purpose of record keeping and
administration. Any location at which education is offered by a
franchisee of a franchisor approved to operate as a proprietary school
shall be deemed a location within the scope of such franchisor's approval
if such franchisor establishes the course curriculum and guidelines for
teaching at such location.

2. The department of higher education shall review the application and
may conduct an investigation of the applicant to ensure compliance with
the rules and regulations.

3. A certificate of approval is nontransferable. A change in the sole
proprietor of a school, a change in the majority interest of general
partners of a partnership owning a school, or a change in majority of
stock ownership of a school shall for the purpose of sections 173.600 to
173.618 be deemed a transfer of ownership. Within thirty days of a
transfer of ownership the new owner shall make written application to the
board for a new certificate of approval. This application shall be
processed like an initial application, except that the board may issue a
temporary certificate of approval if the chief administrator of the
school furnishes a written statement asserting that all of the conditions
set forth in the rules and regulations are being met or will be met
before offering training or education. A temporary certificate shall be
effective for a maximum of sixty days.

4. Any school denied exemption or a certificate of approval and any
approved school whose certificate is revoked or suspended may appeal to
the administrative hearing commission. (L. 1983 H.B. 560 § 8, A.L. 1991
H.B. 51, et al.)

1. The annual fee for a proprietary school certificate of
approval shall be $.001 per one dollar of net tuition and fees income
(excluding refunds, books, tools and supplies), with a maximum of two
thousand five hundred dollars and a minimum of two hundred fifty dollars
per school. For a school having a certificate of approval for the sole
purpose of recruiting students in Missouri, the net tuition used for this
computation shall be only that paid to the school by students recruited
from Missouri and the fee shall be two hundred fifty dollars plus the
amount produced by the foundation calculation.

2. Any school which operates at two or more locations, or has franchised
schools as provided in section 173.606, may combine tuition and fees for
all locations for the purpose of determining the annual fee payable under
sections 173.600 to 173.618. All fees received shall be deposited in the
state treasury to the credit of general revenue. (L. 1983 H.B. 560 § 11,
A.L. 1991 H.B. 51, et al.)

1. The rights of a school or assignee of a school as holder of
an instrument, account, contract, right, agreement, chattel paper or
other writing, other than a check or draft, received by the school in
payment of tuition or other charges, whether sold, transferred, assigned
or endorsed before or after the obligor has completed the course of
instruction, shall be subject to any and all defenses and setoffs
available to the obligor, notwithstanding any agreement to the contrary.
The preceding sentence shall not apply to payment of tuition or other
charges by credit card transaction on a credit card issued by an issuer
other than the school.

2. The definitions in articles 1, 3 and 9 of chapter 400, RSMo, are
applicable to subsection 1. (L. 1983 H.B. 560 § 7)

1. The board shall, through the department of higher education,
administer, supervise, and enforce the provisions and policies of
sections 173.600 to 173.618 and shall assign the personnel that are
necessary to exercise its powers and duties.

2. The rules and regulations adopted by the board under sections 173.600
to 173.618, together with any amendments thereto, shall be filed with the
office of the secretary of state. The board may:

(1) Issue proprietary school certificates of approval or temporary
certificates of approval to applicants meeting the requirements of
sections 173.600 to 173.618;

(2) Suspend or revoke certificates or temporary certificates of approval,
or place certified schools on probation;

(3) Require each proprietary school to file a security bond covering the
school and its agents to indemnify any student, enrollee or parent,
guardian, or sponsor of a student or enrollee who suffers loss or damage
because of a violation of sections 173.600 to 173.618 by the school, or
because a student is unable to complete the course due to the school's
ceasing operation or because a student does not receive a refund to which
he is entitled. The bond or other security shall cover all the facilities
and locations of a proprietary school and shall not be less than five
thousand dollars or ten percent of the preceding year's gross tuition,
whichever is greater, but in no case shall it exceed twenty-five thousand
dollars. The bond shall clearly state that the school and the agents of
the school are covered by it. The board may authorize the use of
certificates of deposit, letters of credit, or other assets to be posted
as security in lieu of this surety bond requirement;

(4) Collect data from certified proprietary schools appropriate to
establish records and statistics necessary to provide evaluation and
planning by the department of higher education;

(5) Administer sections 173.600 to 173.618 and initiate action to enforce
it.

3. Any school which closes or whose certificate of approval is suspended,
revoked, or not renewed shall, on the approval of the coordinating board,
make partial or full refund of tuition and fees to the students enrolled,
continue operation under a temporary certificate until students enrolled
have completed the program for which they were enrolled, make
arrangements for another school or schools to complete the instruction
for which the students are enrolled, employ a combination of these
methods in order to fulfill its obligations to the students, or implement
other plans approved by the coordinating board.

4. Any rule or portion of a rule promulgated pursuant to sections 173.600
to 173.618 may be suspended by the joint house-senate committee on
administrative rules until such time as the general assembly may by
concurrent resolution signed by the governor reinstate such rule. (L.
1983 H.B. 560 §§ 3, 5 subsec. 1, 10, 12, A.L. 1991 H.B. 51, et al.)

1. The "Proprietary School Advisory Committee" is hereby created
consisting of seven members. All members shall be appointed by the board
and shall be either individual proprietors, general partners of
partnerships, or managerial employees of proprietary schools. The initial
appointment of members to the committee shall be made within sixty days
after September 28, 1983, and shall consist of two members appointed for
terms expiring one year from September 28, 1983, two members appointed
for terms expiring two years from September 28, 1983, and three members
appointed for terms expiring three years from September 28, 1983. The
terms of members initially appointed shall be designated by the board.
Thereafter, each appointment shall be for a term of three years. If a
committee member resigns or for any reason is unable or ineligible to
continue to serve, a new member shall be appointed by the board to fill
the unexpired term.

2. The committee shall organize itself by the election of a chairman and
other officers as needed.

3. The committee shall report to the board at least twice annually and
advise the board on matters within the scope of sections 173.600 to
173.618.

4. The proprietary school advisory committee shall have the following
responsibilities:

(1) To advise the board in the administration of sections 173.600 to
173.618;

(2) To make recommendations with respect to the rules and regulations
establishing minimum standards which are to be adopted by the board; and

(3) To advise the board with respect to grievances and complaints.

5. Members of the committee shall serve without compensation but may be
reimbursed for traveling and other expenses necessarily incurred in the
performance of their duties from funds of the department of higher
education. (L. 1983 H.B. 560 § 4)

1. The following schools, training programs, and courses of
instruction shall be exempt from the provisions of sections 173.600 to
173.618:

(1) A public institution;

(2) Any college or university represented directly or indirectly on the
advisory committee of the coordinating board for higher education as
provided in subsection 3 of section 173.005;

(3) An institution that is certified by the board as an "approved private
institution" under subdivision (2) of section 173.205;

(4) A not-for-profit religious school that is accredited by the American
Association of Bible Colleges, the Association of Theological Schools in
the United States and Canada, or a regional accrediting association, such
as the North Central Association, which is recognized by the Council on
Postsecondary Accreditation and the United States Department of Education.

2. The coordinating board shall exempt the following schools, training
programs and courses of instruction from the provisions of sections
173.600 to 173.618:

(1) A not-for-profit school owned, controlled and operated by a bona fide
religious or denominational organization which offers no programs or
degrees and grants no degrees or certificates other than those
specifically designated as theological, bible, divinity or other
religious designation;

(2) A not-for-profit school owned, controlled and operated by a bona fide
eleemosynary organization which provides instruction with no financial
charge to its students and at which no part of the instructional cost is
defrayed by or through programs of governmental student financial aid,
including grants and loans, provided directly to or for individual
students;

(3) A school which offers instruction only in subject areas which are
primarily for avocational or recreational purposes as distinct from
courses to teach employable, marketable knowledge or skills, which does
not advertise occupational objectives and which does not grant degrees;

(4) A course of instruction, study or training program sponsored by an
employer for the training and preparation of its own employees;

(5) A course of study or instruction conducted by a trade, business or
professional organization with a closed membership where participation in
the course is limited to bona fide members of the trade, business or
professional organization, or a course of instruction for persons in
preparation for an examination given by a state board or commission where
the state board or commission approves that course and school;

(6) A school or person whose clientele are primarily students aged
sixteen or under.

3. A school which is otherwise licensed and approved under and pursuant
to any other licensing law of this state shall be exempt from sections
173.600 to 173.618, but a state certificate of incorporation shall not
constitute licensing for the purpose of sections 173.600 to 173.618.

4. Any school, training program or course of instruction exempted herein
may elect by majority action of its governing body or by action of its
director to apply for approval of the school, training program or course
of instruction under the provisions of sections 173.600 to 173.618. Upon
application to and approval by the coordinating board, such school
training program or course of instruction may become exempt from the
provisions of sections 173.600 to 173.618 at any subsequent time, except
the board shall not approve an application for exemption if the approved
school is then in any status of noncompliance with certification
standards and a reversion to exempt status shall not relieve the school
of any liability for indemnification or any penalty for noncompliance
with certification standards during the period of the school's approved
status. (L. 1983 H.B. 560 § 2, A.L. 1991 H.B. 51, et al.)

1. Any act, method, or practice which violates the provisions of
sections 173.600 to 173.618 shall be an unlawful practice within the
meaning of section 407.020, RSMo, and the board may seek an injunction in
the manner provided in chapter 407, RSMo. The board may exercise the
authority granted in subdivision (2) of subsection 2 of section 173.612
without seeking injunction.

2. Any person convicted of operating a proprietary school without
certificate of approval or a temporary certificate of approval, or of
failure to file bond or security as required by sections 173.600 to
173.618 or of violating any other provision of sections 173.600 to
173.618 is guilty of a class A misdemeanor and upon conviction shall be
punished in the manner provided by law. (L. 1983 H.B. 560 § 9, A.L. 1991
H.B. 51, et al.)

No rule or portion of a rule promulgated under the authority of
sections 173.600 to 173.619 shall become effective unless it has been
promulgated pursuant to the provisions of section 536.024, RSMo. (L. 1991
H.B. 51, et al. § 1, A.L. 1993 S.B. 52, A.L. 1995 S.B. 3)

The following compact, as amended, is approved and this state is
declared to be a party thereto; and agreements, convenants and
obligations therein are binding upon the state of Missouri.

ARTICLE I. PURPOSE

The purpose of the Midwestern Higher Education Compact shall be to
provide greater higher education opportunities and services in the
Midwestern region, with the aim of furthering regional access to,
research in the choice of higher education for the citizens residing in
the several states which are parties to this Compact.

ARTICLE II. THE COMMISSION

A. The compacting states hereby create the Midwestern Higher Education
Commission, hereinafter called the Commission. The Commission shall be a
body corporate of each compacting state. The Commission shall have all
the responsibilities, powers and duties set forth herein, including the
power to sue and be sued, and such additional powers as may be conferred
upon it by subsequent action of the respective legislatures of the
compacting states in accordance with the terms of this Compact.

B. The Commission shall consist of five resident members of each state as
follows: The governor or the governor's designee who shall serve during
the tenure of office of the governor; two legislators, one from each
house (except Nebraska, which may appoint two legislators from its
Unicameral Legislature), who shall serve two-year terms and be appointed
by the appropriate appointing authority in each house of the legislature;
and two other at-large members, at least one of whom shall be selected
from the field of higher education. The at-large members shall be
appointed in a manner provided by the laws of the appointing state. One
of the two at-large members initially appointed in each state shall serve
a two-year term. The other, and any regularly appointed successor to
either at-large member, shall serve a four-year term. All vacancies shall
be filled in accordance with the laws of the appointing states. Any
commissioner appointed to fill a vacancy shall serve until the end of the
incomplete term.

C. The Commission shall select annually, from among its members, a
chairperson, a vice chairperson and a treasurer.

D. The Commission shall appoint an executive director who shall serve at
its pleasure and who shall act as secretary to the Commission. The
treasurer, the executive director and such other personnel as the
Commission may determine, shall be bonded in such amounts as the
Commission may require.

E. The Commission shall meet at least once each calendar year. The
chairperson may call additional meetings and, upon the request of a
majority of the Commission members of three or more compacting states,
shall call additional meetings. Public notice shall be given of all
meetings and meetings shall be open to the public.

F. Each compacting state represented at any meeting of the Commission is
entitled to one vote. A majority of the compacting states shall
constitute a quorum for the transaction of business, unless a larger
quorum is required by the bylaws of the Commission.

ARTICLE III. POWERS AND DUTIES OF THE COMMISSION

A. The Commission shall adopt a seal and suitable bylaws governing its
management and operations.

B. Irrespective of the civil service, personnel or other merit system
laws of any of the compacting states, the Commission in its bylaws shall
provide for the personnel policies and programs of the Compact.

C. The Commission shall submit a budget to the governor and legislature
of each compacting state at such time and for such period as may be
required. The budget shall contain specific recommendations of the amount
or amounts to be appropriated by each of the compacting states.

D. The Commission shall report annually to the legislatures and governors
of the compacting states, to the Midwestern Governors' Conference and to
the Midwestern Legislative Conference of the Council of State Governments
concerning the activities of the Commission during the preceding year.
Such reports shall also embody any recommendations that may have been
adopted by the Commission.

E. The Commission may borrow, accept, or contract for the services of
personnel from any state or the United States or any subdivision or
agency thereof, from any interstate agency, or from any institution,
foundation, person, firm or corporation.

F. The Commission may accept for any of its purposes and functions under
the Compact any and all donations, and grants of money, equipment,
supplies, materials and services (conditional or otherwise) from any
state or the United States or any subdivision or agency thereof, or
interstate agency, or from any institution, foundation, person, firm, or
corporation, and may receive, utilize and dispose of the same.

G. The Commission may enter into agreements with any other interstate
education organizations or agencies and with higher education
institutions located in nonmember states and with any of the various
states of these United States to provide adequate programs and services
in higher education for the citizens of the respective compacting states.
The Commission shall, after negotiations with interested institutions and
interstate organizations or agencies, determine the cost of providing the
programs and services in higher education for use in these agreements.

H. The Commission may establish and maintain offices, which shall be
located within one or more of the compacting states.

I. The Commission may establish committees and hire staff as it deems
necessary for the carrying out of its functions.

J. The Commission may provide for actual and necessary expenses for
attendance of its members at official meeting of the Commission or its
designated committees.

ARTICLE IV. ACTIVITIES OF THE COMMISSION

A. The Commission shall collect data on the long-range effects of the
Compact on higher education. By the end of the fourth year from the
effective date of the Compact and every two years thereafter, the
Commission shall review its accomplishments and make recommendations to
the governors and legislators of the compacting states on the continuance
of the Compact.

B. The Commission shall study issues in higher education of particular
concern to the Midwestern region. The Commission shall also study the
needs for higher education programs and services in the compacting states
and the resources for meeting such needs. The Commission shall, from time
to time, prepare reports on such research for presentation to the
governors and legislatures of the compacting states and other interested
parties. In conducting such studies, the Commission may confer with any
national or regional planning body. The Commission may draft and
recommend to the governors and legislatures of the various compacting
states suggested legislation dealing with problems of higher education.

C. The Commission shall study the need for provision of adequate programs
and services in higher education, such as undergraduate, graduate or
professional student exchanges in the region. If a need for exchange in a
field is apparent, the Commission may enter into such agreements with any
higher education institution and with any of the compacting states to
provide programs and services in higher education for the citizens of the
respective compacting states. The Commission shall, after negotiations
with interested institutions and the compacting states, determine the
cost of providing the programs and services in higher education for use
in its agreements. The contracting states shall contribute the funds not
otherwise provided, as determined by the Commission, for carrying out the
agreements. The Commission may also serve as the administrative and
fiscal agent in carrying out agreements for higher education programs and
services.

D. The Commission shall serve as a clearinghouse on information regarding
higher education activities among institutions and agencies.

E. In addition to the activities of the Commission previously noted, the
Commission may provide services and research in other areas of regional
concern.

ARTICLE V. FINANCE

A. The monies necessary to finance the general operations of the
Commission not otherwise provided for in carrying forth its duties,
responsibilities and powers as stated herein shall be appropriated to the
Commission by the compacting states, when authorized by the respective
legislatures, by equal apportionment among the compacting states.

B. The Commission shall not incur any obligations of any kind prior to
the making of appropriations adequate to meet the same; nor shall the
Commission pledge the credit of any of the compacting states, except by
and with the authority of the compacting state.

C. The Commission shall keep accurate accounts of all receipts and
disbursements. The receipts and disbursements of the Commission shall be
subject to the audit and accounting procedures established under its
bylaws. However, all receipts and disbursements of funds handled by the
Commission shall be audited yearly by a certified or licensed public
accountant and the report of the audit shall be included in and become
part of the annual report of the Commission.

D. The accounts of the Commission shall be open at any reasonable time
for inspection by duly authorized representatives of the compacting
states and persons authorized by the Commission.

ARTICLE VI. ELIGIBLE PARTIES AND ENTRY INTO FORCE

A. The states of Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota,
Missouri, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin shall
be eligible to become party to this Compact. Additional states will be
eligible if approved by a majority of the compacting states.

B. As to any eligible party state, this Compact shall become effective
when its legislature shall have enacted the same into law; provided that
it shall not become initially effective until enacted into law by five
states prior to the 31st day of December 1995.

C. Amendments to the Compact shall become effective upon their enactment
by the legislatures of all compacting states.

ARTICLE VII. WITHDRAWAL, DEFAULT AND TERMINATION

A. Any compacting state may withdraw from this Compact by enacting a
statute repealing the Compact, but such withdrawal shall not become
effective until two years after the enactment of such statute. A
withdrawing state shall be liable for any obligations which it may have
incurred on account of its party status up to the effective date of
withdrawal, except that if the withdrawing state has specifically
undertaken or committed itself to any performance of an obligation
extending beyond the effective date of withdrawal, it shall remain liable
to the extent of such obligation.

B. If any compacting state shall at any time default in the performance
of any of its obligations, assumed or imposed, in accordance with the
provisions of this Compact, all rights, privileges and benefits conferred
by this Compact or agreements hereunder shall be suspended from the
effective date of such default as fixed by the Commission, and the
Commission shall stipulate the conditions and maximum time for compliance
under which the defaulting state may resume its regular status. Unless
such default shall be remedied under the stipulations and within the time
period set forth by the Commission, this Compact may be terminated with
respect to such defaulting state by affirmative vote of a majority of the
other member states. Any such defaulting state may be reinstated by
performing all acts and obligations as stipulated by the Commission.

ARTICLE VIII. SEVERABILITY AND CONSTRUCTION

The provisions of this Compact entered into hereunder shall be severable
and if any phrase, clause, sentence or provision of this Compact is
declared to be contrary to the constitution of any compacting state or of
the United States or the applicability thereof to any government, agency,
person or circumstance is held invalid, the validity of the remainder of
this Compact and the applicability thereof to any government, agency,
person or circumstance shall not be affected hereby. If this Compact
entered into hereunder shall be held contrary to the constitution of any
compacting state, the Compact shall remain in full force and effect as to
the remaining states and in full force and effect as to the state
affected as to all severable matters. The provisions of this Compact
entered into pursuant hereto shall be liberally construed to effectuate
the purposes thereof. (L. 1990 H.B. 1142)

*Contingent expiration date, see § 173.710

Missouri shall appoint members to the midwestern higher
education commission as follows:

(1) The governor or his designee shall be a member;

(2) The speaker of the house of representatives shall appoint one member
of the house and the president pro tem of the senate shall appoint one
member of the senate as members;

(3) Two at-large members from the field of higher education shall be
appointed by the governor with the advice and consent of the senate. (L.
1990 H.B. 1142)

*Contingent expiration date, see § 173.710

1. The governor shall serve on the midwestern higher education
commission for a term concurrent with his term of office.

2. The member of the house of representatives and the member of the
senate shall serve on the midwestern higher education commission for
terms of two years.

3. The at-large members shall serve on the midwestern higher education
commission for terms of four years or upon leaving the field of higher
education or upon leaving the state, whichever occurs first, except that
of the first appointments one at-large member shall serve for a term of
two years and the other shall serve for a term of four years.

4. All vacancies occurring on the midwestern higher education commission
shall be filled in the same manner as originally filled, except that
vacancies created for reasons other than expiration of the term of
membership shall be filled for the remainder of the unexpired term by
appointment by the governor with the advice and consent of the senate.
(L. 1990 H.B. 1142)

*Contingent expiration date, see § 173.710

Sections 173.700, 173.705, 173.708 and this section shall expire
on January 1, 1996, if the midwestern higher education compact does not
become effective prior to December 31, 1995. (L. 1990 H.B. 1142)

The following compact, as amended, is approved and this state is
declared to be a party thereto; and agreements, covenants and obligations
therein are binding upon the state of Missouri.

THE REGIONAL COMPACT

1. Whereas, the said states desire to enter into a compact with each
other providing for the planning and establishment of regional
educational facilities;

2. Now, therefore, in consideration of the mutual agreements, covenants
and obligations assumed by the respective states who are parties hereto
(hereinafter referred as "states"), the said several states do hereby
form a geographical district or region consisting of the areas lying
within the boundaries of the contracting states which, for the purpose of
this compact, shall constitute an area for regional education supported
by public funds derived from taxation by the constituent states and
derived from other sources for the establishment, acquisition, operation
and maintenance of regional educational schools and institutions for the
benefit of citizens of the respective states residing within the region
so established as may be determined from time to time in accordance with
the terms and provisions of this compact.

(1) The states do further hereby establish and create a joint agency
which shall be known as the board of control for southern regional
education (hereinafter referred to as the "board"), the members of which
board shall consist of the governor of each state, ex officio, and four
additional citizens of each state to be appointed by the governor
thereof, at least one of whom shall be selected from the field of
education, and at least one of whom shall be a member of the legislature
of that state. The governor shall continue as a member of the board
during his tenure of office as governor of the state, but the members of
the board appointed by the governor shall hold office for a period of
four years except that in the original appointments, one board member so
appointed by the governor shall be designated at the time of his
appointment to serve an initial term of one year; one board member to
serve an initial term of two years; one board member to serve an initial
term of three years; and the remaining board member to serve the full
term of four years; but thereafter the successor of each appointed board
member shall serve the full term of four years. Vacancies on the board
caused by death, resignation, refusal or inability to serve, shall be
filled by appointment by the governor for the unexpired portion of the
term. The officers of the board shall be a chairman, a vice chairman, a
secretary, a treasurer, and such additional officers as may be created by
the board from time to time. The board shall meet annually and officers
shall be elected to hold office until the next annual meeting. The board
shall have the right to formulate and establish bylaws not inconsistent
with the provisions of this compact to govern its own actions in the
performance of the duties delegated to it including the right to create
and appoint an executive committee and a finance committee with such
powers and authority as the board may delegate to them from time to time.
The board may, within its discretion, elect as its chairman a person who
is not a member of the board, provided such person resides within a
signatory state, and upon such election such person shall become a member
of the board with all the rights and privileges of such membership.

(2) It shall be the duty of the board to submit plans and recommendations
to the states from time to time for their approval and adoption by
appropriate legislative action for the development, establishment,
acquisition, operation and maintenance of educational schools and
institutions within the geographical limits of the regional area of the
states, of such character and type and for such educational purposes,
professional, technological, scientific, literary, or otherwise, as they
may deem and determine to be proper, necessary or advisable. Title to all
such educational institutions when so established by appropriate
legislative actions of the states and to all properties and facilities
used in connection therewith shall be vested in said board as the agency
of and for the use and benefit of the said states and the citizens
thereof, and all such educational institutions shall be operated,
maintained and financed in the manner herein set out, subject to any
provisions or limitations which may be contained in the legislative acts
of the states authorizing the creation, establishment and operation of
such educational institutions.

(3) In addition to the power and authority heretofore granted, the board
shall have the power to enter into such agreements or arrangements with
any of the states and with educational institutions or agencies, as may
be required in the judgment of the board, to provide adequate services
and facilities for graduate, professional and technical education for the
benefit of the citizens of the respective states residing within the
region, and such additional and general power and authority as may be
vested in the board from time to time by legislative enactment of the
said states.

(4) Any two or more states who are parties of this compact shall have the
right to enter into supplemental agreements providing for the
establishment, financing and operation of regional educational
institutions for the benefit of citizens residing within an area which
constitutes a portion of the general region herein created, such
institutions to be financed exclusively by such states and to be
controlled exclusively by the members of the board representing such
states provided such agreement is submitted to and approved by the board
prior to the establishment of such institutions.

(5) Each state agrees that, when authorized by the legislature, it will
from time to time make available and pay over to said board such funds as
may be required for the establishment, acquisition, operation and
maintenance of such regional educational institutions as may be
authorized by the states under the terms of this compact, the
contribution of each state at all times to be in the proportion that its
population bears to the total combined population of the states who are
parties hereto as shown from time to time by the most recent official
published report of the Bureau of Census of the United States of America;
or upon such other basis as may be agreed upon.

(6) This compact shall not take effect or be binding upon any state
unless and until it shall be approved by proper legislative action of as
many as six or more of the states whose governors have subscribed hereto
within a period of eighteen months from the date hereof. When and if six
or more states shall have given legislative approval to this compact
within said eighteen months' period, it shall be and become binding upon
such six or more states sixty days after the date of legislative approval
by the sixth state and the governors of such six or more states shall
forthwith name the members of the board from their states as hereinabove
set out, and the board shall then meet on call of the governor of any
state approving this compact, at which time the board shall elect
officers, adopt bylaws, appoint committees and otherwise fully organize.
Other states whose names are subscribed hereto shall thereafter become
parties hereto upon approval of this compact by legislative action within
two years from the date hereof, upon such conditions as may be agreed
upon at the time. Provided, however, that with respect to any state whose
constitution may require amendment in order to permit legislative
approval of the compact, such state or states shall become parties hereto
upon approval of this compact by legislative action within seven years
from the date hereof, upon such conditions as may be agreed upon at the
time.

(7) After becoming effective this compact shall thereafter continue
without limitation of time provided, however, that it may be terminated
at any time by unanimous action of the states and provided further that
any state may withdraw from this compact if such withdrawal is approved
by its legislature, such withdrawal to become effective two years after
written notice thereof to the board accompanied by a certified copy of
the requisite legislative action, but such withdrawal shall not relieve
the withdrawing state from its obligations hereunder accruing up to the
effective date of such withdrawal. Any state so withdrawing shall ipso
facto cease to have any claim to or ownership of any of the property held
or vested in the board or to any of the funds of the board held under the
terms of this compact.

(8) If any state shall at any time become in default in the performance
of any of its obligations assumed herein or with respect to any
obligation imposed upon said state as authorized by and in compliance
with the terms and provisions of this compact, all rights, privileges and
benefits of such defaulting state, its members on the board and its
citizens shall ipso facto be and become suspended from and after the date
of such default. Unless such default shall be remedied and made good
within a period of one year immediately following the date of such
default this compact may be terminated with respect to such defaulting
state by an affirmative vote of three-fourths of the members of the board
(exclusive of the members representing the state in default), from and
after which time such state shall cease to be a party to this compact and
shall have no further claim to or ownership of any of the property held
by or vested in the board or to any of the funds of the board held under
the terms of this compact, but such termination shall in no manner
release such defaulting state from any accrued obligation or otherwise
affect this compact or the rights, duties, privileges or obligations of
the remaining states thereunder.

3. In witness whereof this compact has been approved and signed by
governors of the several states, subject, to the approval of their
respective legislatures in the manner hereinabove set out, as of the
eighth day of February, 1948. (L. 1990 H.B. 1142 § 1)

*Contingent expiration date, see § 173.721

1. The Missouri coordinating board for higher education is
hereby designated to be the agency of the state of Missouri to administer
the regional education program in cooperation with other southern states.

2. The defrayal of administrative cost of the regional education program,
including payment of the annual membership fee assessed to the state of
Missouri, shall be through general revenue appropriations to the Missouri
coordinating board for higher education. (L. 1990 H.B. 1142 § 2)

*Contingent expiration date, see § 173.721

Sections 173.715, 173.718 and this section shall expire two
years after the formation of the midwestern higher education compact as
contained in sections 173.700 to 173.710 and upon proper notice being
given to the member states of the compact established pursuant to section
173.715. (L. 1990 H.B. 1142 § 3)

1. There is hereby established a "Higher Education Artistic
Scholarship Program". Moneys appropriated by the general assembly or
moneys identified in section 173.252 may be used for this program to
provide scholarships for Missouri citizens to attend an approved public
or private institution of their choice pursuant to the provisions of this
section. Such program shall award a maximum of ten initial artistic
scholarships per year, in the amount of two thousand dollars per
scholarship.

2. As used in this section, the following terms mean:

(1) "Approved private institution", as defined in section 173.205;

(2) "Approved public institution", as defined in section 173.205;

(3) "Artistic talent":

(a) Creation of the visual arts;

(b) Creation of and the performance of music;

(c) Creation of and the performance of theater;

(d) Creation of and the performance of musical theater; and

(e) Creation of and the performance of dance;

(4) "Artistic talent scholarship", an amount of money paid by the state
of Missouri to a qualified college or university student who has
demonstrated exceptional artistic talent pursuant to the provisions of
this section.

3. The coordinating board for higher education shall be the
administrative agency for the implementation of the program established
by this section, and shall:

(1) Promulgate reasonable rules and regulations for the exercise of its
functions and the effectuation of the purposes of this section;

(2) Prescribe the form and the time and method of awarding scholarships
to student artists of exceptional talent, and supervise the processing
thereof; and

(3) Select qualified recipients to receive artistic talent scholarships,
make awards of such artistic talent scholarships to qualified recipients
and determine the manner and method of payment to the recipient.

4. No rule or portion of a rule promulgated under the authority of this
section shall become effective unless it has been promulgated pursuant to
the provisions of section 536.024, RSMo.

5. A student shall be eligible for initial or renewed artistic talent
scholarships if he or she is in compliance with the eligibility
requirement set forth in section 173.215, excluding the requirement of
financial need, and in addition meets the following requirements:

(1) Demonstration of exceptional artistic talent; and

(2) Declaration of intent to complete a college or university program of
studies centered around the art or arts in which he or she has
demonstrated talent for purposes of this section.

6. Artistic talent scholarships are renewable in the amount of two
thousand dollars for each of the sophomore, junior and senior years of
college or university study provided the recipient makes satisfactory
academic degree progress as a full-time student and in addition, for each
of the sophomore, junior and senior years, provides service to the
institution in which enrolled in an academically related assignment.
Students who hold artistic talent scholarships shall continue to enroll
in a program of studies centered around the art or arts in which their
talent is demonstrated for purposes of this section.

7. A recipient of an artistic talent scholarship awarded under this
section may transfer from one approved Missouri public or private
institution to another without losing eligibility for the scholarship. If
a recipient of the scholarship at any time withdraws from an approved
private or public institution so that under the rules and regulations of
that institution he or she is entitled to a refund of any tuition, fees
or other charges, the institution shall pay the portion of the refund
attributable to the scholarship for that term to the coordinating board
for higher education. (L. 1990 H.B. 1142 § 8, A.L. 1993 S.B. 52, A.L.
1995 S.B. 3)

1. There is hereby established a "Higher Education Graduate
Study Scholarship Program" and any moneys appropriated by the general
assembly for this program shall be used to provide scholarships for
Missouri citizens to pursue graduate studies at a college or university
of their choice pursuant to the provisions of this section.

2. The definitions of terms set forth in section 173.205 shall be
applicable to such terms as used in this section except that the terms
"approved private institution" and "approved public institution" shall,
in addition, mean that those institutions offer programs of study beyond
the baccalaureate degree which lead to a certificate or degree award on
the graduate study level for which level of study the institution is
accredited by the North Central Association of Colleges and Schools. The
terms "graduate study scholarship" or "graduate scholarship" mean an
amount of money paid by the state of Missouri to a qualified college or
university graduate student who has demonstrated superior academic
achievement pursuant to the provisions of this section.

3. The coordinating board for higher education shall be the
administrative agency for the implementation of the program established
by this section, and shall:

(1) For each three-year period of academic years, beginning with the
1991-1992 academic year, and based upon manpower needs of the state of
Missouri as determined by the coordinating board, designate an area or
areas of graduate program certificate or degree study for which graduate
study scholarships shall be awarded to qualified Missouri residents, as
provided in this section, during the three-year period;

(2) Promulgate reasonable rules and regulations for the exercise of its
functions and the effectuation of the purposes of this section;

(3) Prescribe the form and the time and method of awarding graduate study
scholarships, and shall supervise the processing thereof; and

(4) Select qualified recipients to receive graduate study scholarships,
make such awards of graduate scholarships to qualified recipients and
determine the manner and method of payment to the recipient.

4. No rule or portion of a rule promulgated under the authority of this
section shall become effective unless it has been promulgated pursuant to
the provisions of section 536.024, RSMo.

5. A student shall be eligible for initial or renewed graduate
scholarship if he or she is in compliance with the eligibility
requirements set forth in section 173.215, excluding the requirement of
financial need, provided the student is enrolled, or has been accepted
for enrollment, as a full-time graduate student in an approved private or
public institution and in addition meets the requirements set forth in
subsections 6* and 7* of this section. However, if the number of
applicants exceeds the number of scholarships or revenues available, the
coordinating board for higher education may consider the financial needs
of the applicant.

6. Graduate study scholarships are awarded for a period of one academic
year. Initial scholarships shall be offered to Missouri residents whose
scores on both the verbal and quantitative sections of the graduate
record examination general test are in the top one percent of all
Missouri students taking the graduate record examination during the
academic year in which the test was taken, or who achieve, to the
satisfaction of the coordinating board for higher education, an
equivalent score on an equivalent graduate or professional examination.
Graduate scholarship recipients are required to maintain a full-time
student status.

7. Initial graduate study scholarships are renewable for one additional
academic year provided the recipient makes satisfactory graduate degree
progress as a full-time student and provided that the program of study
for which the scholarship is awarded requires an additional year of study
to meet minimum requirements, exclusive of thesis, dissertation or
experiential project. Graduate study scholarships are also renewable for
uninterrupted progression of study from one level of graduate degree to
the next higher level of degree study and may further be renewed for one
additional academic year under the same criteria as provided for initial
scholarship renewal.

8. A student who is enrolled or has been accepted for enrollment as a
graduate student, at an approved private or public institution, in a
program study area designated as eligible by the coordinating board for
higher education, beginning with the fall, 1991, term and who meets the
other eligibility requirements for a graduate study scholarship shall,
within the limits of the funds appropriated and made available, be
offered a graduate study scholarship in the amount of two thousand
dollars, which scholarship shall be renewable as provided in this
section. (L. 1990 H.B. 1142 § 9, A.L. 1993 S.B. 52, A.L. 1995 S.B. 3)

*Subsections "12 and 13" appear in original rolls, changed due to
renumbering.

CROSS REFERENCE: Missouri college guarantee fund may be used to fund
graduate study scholarships, RSMo 173.830

The coordinating board for higher education may request
appropriations to match United States Agency for International
Development funds for the purpose of facilitating international student
exchanges. (L. 1990 H.B. 1142 § 10)

All public institutions of higher education, including community
colleges, shall adopt, by January 1, 1992, a conflict of interest policy
for all faculty and staff of such institution. Any such institution not
adopting such a policy shall be governed by a model higher education
conflict of interest policy which shall be promulgated and approved by
the coordinating board for higher education. All public institutions of
higher education shall be governed by the requirements of this section as
well as the provisions of sections 105.450 to 105.498, RSMo. (L. 1991
S.B. 262 § 9)

1. By July 1, 1995, the coordinating board for higher education,
within existing resources provided to the department of higher education
and by rule and regulation, shall have established and implemented a
procedure for annually reporting the performance of graduates of public
high schools in the state during the student's initial year in the public
colleges and universities of the state. The purpose of such reports shall
be to assist in determining how high schools are preparing students for
successful college and university performance. The report produced
pursuant to this subsection shall annually be furnished to the state
board of education for reporting pursuant to subsection 4 of section
161.610, RSMo, and shall not be used for any other purpose.

2. The procedures shall be designed so that the reporting is made by the
name of each high school in the state, with individual student data to be
grouped according to the high school from which the students graduated.
The data in the reports shall be disaggregated by race and sex. The
procedures shall not be designed so that the reporting contains the name
of any student. No grade point average shall be disclosed under
subsection 3 of this section in any case where three or fewer students
from a particular high school attend a particular college or university.

3. The data reported shall include grade point averages after the initial
college year, calculated on, or adjusted to, a four point grade scale;
the percentage of students returning to college after the first and
second half of the initial college year, or after each trimester of the
initial college year; the percentage of students taking noncollege level
classes in basic academic courses during the first college year, or
remedial courses in basic academic subjects of English, mathematics, or
reading; and other such data as determined by rule and regulation of the
coordinating board for higher education. (L. 1993 S.B. 380 § 19 subsecs.
1, 2, 3)

*Contingent expiration date. See section 143.107.

CROSS REFERENCE: Report of vocational education program, high school
students completing course to be combined with report required by this
section, RSMo 161.610

(1996) Contingent referendum provision was found to be an
unconstitutional delegation of legislative authority thereby making
section 143.107 void. Akin v. Director of Revenue, 934 S.W.2d 295
(Mo.banc).

1. Sections 173.775 to 173.796 shall be known as the "Advantage
Missouri Program". This program shall provide loans to and establish a
loan forgiveness program for students in approved educational programs
who become employed in occupational areas of high demand in this state.

2. The "Advantage Missouri Trust Fund" is hereby created in the state
treasury, to be used by the coordinating board for higher education to
provide loans pursuant to sections 173.775 to 173.796. All
appropriations, private donations, and other funds provided to the board
for this program shall be credited to the fund. All funds generated by
loan repayments and any penalties received pursuant to sections 173.787
and 173.790, shall also be credited to the fund. Notwithstanding the
provisions of section 33.080, RSMo, to the contrary, any unexpended
balance in the fund shall not revert to the general revenue fund. (L.
1998 H.B. 1694)

As used in sections 173.775 to 173.796, the following terms mean:

(1) "Board", the coordinating board for higher education;

(2) "Eligible institution", any approved public or private institution of
postsecondary education, as defined in section 173.205 or any other
Missouri private institution that:

(a) Is required by statute to be certified to operate by the board;

(b) Is institutionally accredited by a United States Department of
Education recognized accrediting commission;

(c) Has operated continuously in the state of Missouri for five or more
years;

(d) Has no more than fifty percent of its students in correspondence
programs;

(e) Offers a one-year or two-year certificate, associate or baccalaureate
degree programs, or graduate or professional degree programs; and

(f) Is approved for participation in the advantage Missouri program by
the board;

(3) "Eligible student", an individual who is enrolled full time in an
eligible institution, unless the board approves less than full-time
enrollment, who meets the eligibility requirements pursuant to subsection
1 of section 173.215 and who meets the following additional requirements:

(a) Has received a high school diploma, general educational development
certificate (GED), or its equivalent;

(b) Maintains satisfactory academic progress as determined by the
eligible institution such student attends in pursuing a one-year or two-
year certificate, associate or baccalaureate degree, or graduate or
professional degree. Failure to maintain satisfactory academic progress
shall result in ineligibility for continued participation in the program
and ineligibility for forgiveness of any loan or loans received;

(c) Is not currently confined in any federal or state correctional
facility or jail;

(d) Has not defaulted on the repayment of any previously granted higher
education loan; and

(e) Submits an application provided by the board for participation in the
program;

(4) "Fund", the advantage Missouri trust fund, established in section
173.775; and

(5) "Occupational areas of high demand", specific professions or skill
areas for which the board determines that the state is experiencing a
shortage of qualified employees;

(6) "Program", the advantage Missouri program established pursuant to
sections 173.775 to 173.796. (L. 1998 H.B. 1694)

By August 28, 1998, and by June first of each year thereafter,
the board shall designate occupational areas of high demand in the state.
The board shall also designate professions and skill areas directly
related to the areas of high demand, and the degree programs or
certifications directly leading to employment in such areas. In making
such designations, the board shall consult with the department of labor
and industrial relations, the department of economic development, and
private sector business and labor groups. The board shall also consult
with other private and public agencies and individuals with expertise
related to labor markets, geographic and demographic analysis, and
solicit input from interested parties throughout the state, in order to
ensure that:

(a) The diverse needs of the state are considered; and

(b) That these designations reflect the broad, long-term economic,
educational, and public policy interests of the state in both the public
and private sectors. (L. 1998 H.B. 1694)

An eligible student may participate in the program for up to ten
semesters, or their equivalent, whether consecutive or not, and may be
awarded a loan of up to two thousand five hundred dollars per academic
year by the board, not to exceed a maximum of ten thousand dollars. No
student shall participate in the program more than seven years after
beginning such participation. (L. 1998 H.B. 1694)

Eligible students who are in compliance with program
requirements may qualify for forgiveness of a loan or loans received
through the program by agreeing to be employed in an occupational area of
high demand within the state of Missouri, as determined by the board,
with such employment beginning within one calendar year of graduation by
the individual from an eligible institution, and as outlined in the
contract pursuant to section 173.790. The employment qualifying the
eligible student for loan forgiveness shall be approved by the board. The
board shall approve loan forgiveness on a year-for-year basis, with each
year of approved employment qualifying the student for the forgiveness of
one year's loans. Students electing not to comply with these employment
requirements, or students failing to meet these requirements shall be
required to repay with interest any or all loans received, pursuant to
the contractual provisions described in section 173.790. (L. 1998 H.B.
1694)

1. The board shall enter into a contract with each individual
qualifying for participation in the program at the time the individual
declares a major or decides on a course of study, if a major is not
declared at the institution at which the individual is enrolled. The
written contract shall contain, but not be limited to, the following:

(1) The terms and conditions under which the loan is made, and the
requirements for repayment of the* loan by the student;

(2) A stipulation that, the provisions of section 143.811, RSMo, to the
contrary notwithstanding, no interest shall be assessed on any loan
provided through the program while the student is enrolled full time, or
enrolled part-time with the approval of the board, and meets the
eligibility requirements pursuant to section 173.778;

(3) The terms and conditions for qualifying for forgiveness of loan
proceeds received through the program;

(4) A provision that any financial obligations arising out of a contract
entered into, and any obligations of the individual which are conditioned
thereon, are contingent upon funds being appropriated to the fund and on
the availability of a targeted high demand job; and

(5) The amount of any penalties assessed, in the event repayment of the
loan by the student is not made in accordance with the contract, or the
student fails to maintain eligibility or other requirements of the
program. All such penalties shall be deposited in the fund.

2. Sections 173.775 to 173.796 shall not be construed to require the
board to enter into contracts with individuals who otherwise qualify for
the program when funds are not available for such purpose. (L. 1998 H.B.
1694)

*Word "the" does not appear in original rolls.

Nothing in sections 173.775 to 173.796 shall be construed as a
promise or guarantee by the coordinating board for higher education, or
the state of Missouri that a person will be admitted to a state
institution of higher education or to a particular state institution of
higher education, will be allowed to continue to attend an institution of
higher education after having been admitted, or will be graduated from an
institution of higher education. (L. 1998 H.B. 1694)

1. As used in this section, the term "taxpayer" means an
individual, a partnership, or a corporation as described in section
143.441 or 143.471, RSMo.

2. Any taxpayer may make a contribution to the fund. Within the limits
specified in subsection 3 of this section, a taxpayer shall be allowed a
credit against the taxes imposed pursuant to chapter 143, RSMo, except
for sections 143.191 to 143.265, RSMo, on that individual or entity of up
to fifty percent of the total amount contributed to the fund, not to
exceed one hundred thousand dollars per taxpayer.

3. The department of revenue shall administer the tax credits pursuant to
this section, and shall certify eligibility for the tax credits in the
order applications are received. The total amount of tax credits
certified in any one calendar year shall not exceed five million dollars
annually. Contributions of up to one hundred thousand dollars per annum
per taxpayer may be certified by the department of revenue as a qualified
contribution for purposes of receiving a tax credit under this program.

4. If the amount of tax credit exceeds the total tax liability for the
year in which the tax credit is claimed, the amount that exceeds the
state tax liability may be carried forward for credit against the taxes
imposed pursuant to chapter 143, RSMo, except for sections 143.191 to
143.265, RSMo, for the succeeding ten years, or until the full credit is
used, whichever occurs first.

5. For all tax years beginning on or after January 1, 2005, no tax
credits shall be authorized, awarded, or issued to any person or entity
claiming any tax credit under this section.

6. The provisions of this section shall become effective January 1, 1999.
(L. 1998 H.B. 1694, A.L. 2004 S.B. 1099)

1. There is hereby established the "Missouri College Guarantee
Program" which, from funds dedicated pursuant to subsection 3 of section
313.835, RSMo, shall provide scholarships for Missouri citizens to attend
a Missouri college, university or vocational or technical school of their
choice.

2. The definitions of terms set forth in section 173.205, shall be
applicable to such terms as used in sections 173.810 to 173.827, except
that for purposes of calculating financial need, the calculated cost of
attendance shall not exceed the average calculated cost of attendance at
the campus of the University of Missouri which has the largest total
enrollment, as determined by the coordinating board; and the amount of
book expenses shall not exceed the book allowance established for this
program by the coordinating board. The term "scholarship" means an amount
of money paid by the state of Missouri to a qualified college, university
or vocational or technical school student who has qualified for a
scholarship pursuant to the provisions of sections 173.810 to 173.827.
(L. 1998 H.B. 1519 & 1165 § 173.245 subsecs. 1, 2)

The coordinating board for higher education shall be the
administrative agency for the implementation of the program established
by sections 173.810 to 173.827, and shall:

(1) Promulgate reasonable rules necessary to implement sections 173.810
to 173.827, including rules for granting scholarship deferments;

(2) Implement the form, schedule and method of awarding scholarships as
prescribed by the board established pursuant to section 173.816, and
shall supervise the processing of scholarships at the direction of such
board; and

(3) Select qualified recipients to receive scholarships, make such awards
of scholarships to qualified recipients and determine the manner and
method of payment to the recipient. (L. 1998 H.B. 1519 & 1165 § 173.245
subsec. 3)

There is hereby created the "Missouri College Guarantee Board"
consisting of the state commissioner of elementary and secondary
education, two members of the state board of education selected by the
president of such board, the state commissioner of higher education and
one member of the coordinating board for higher education selected by the
president of such board. Board members from the state board of education
and the coordinating board for higher education shall serve three-year
terms provided that one of the initial members from the state board of
education shall be designated by the president of that board to serve a
term of one year and the initial member from the coordinating board for
higher education shall serve a two-year term. The board shall oversee the
Missouri college guarantee program and shall meet at least annually to
receive a report from the coordinating board for higher education on
program performance. The board, unless otherwise provided in sections
173.810 to 173.827, shall, by majority vote, establish the amount, form,
schedule, eligibility and method of awarding scholarships pursuant to
sections 173.810 to 173.827. (L. 1998 H.B. 1519 & 1165 § 173.245 subsec.
4)

1. A student shall be eligible for an initial or renewed
scholarship if such student is in compliance with the eligibility
requirements set forth in section 173.215, and in addition meets the
following requirements:

(1) Has a cumulative grade point average of at least two and one-half on
a four-point scale or equivalent on the student's high school core
curriculum and has completed a high school curriculum satisfying the
coordinating board's requirements for a college preparatory or technical
preparatory curriculum;

(2) Has received a score of twenty or higher on the general American
College Test (ACT) or a composite verbal and math score of nine hundred
and fifty or higher on the Scholastic Aptitude Test (SAT);

(3) Has not been convicted of or pled guilty to any criminal offense or
been adjudicated to have committed an offense which would constitute a
criminal offense if committed by an adult;

(4) Has substantially participated in extracurricular activities, as
determined by the coordinating board; and

(5) For the purpose of renewal, remains in compliance with the applicable
provisions of section 173.215, and makes satisfactory academic degree
progress as a full-time student.

2. (1) A student seeking a scholarship pursuant to sections 173.810 to
173.827 shall maintain a cumulative grade point average (GPA) of at least
two point five on a four-point scale, or the equivalent on another scale
approved by the program administrator while attending the approved public
or private institution.

(2) If the grade point average of a member who is receiving educational
assistance pursuant to sections 173.810 to 173.827 falls below two point
five on a four-point scale, or the equivalent on another scale, such
member shall retain the educational assistance and shall be placed on
probation under the educational assistance program. Failure to achieve a
current grade point average of at least two point five on a four-point
scale, or the equivalent on another scale for future semesters or
equivalent academic terms shall result in termination of the scholarship
effective as of the next academic term. The member shall be removed from
probation status upon achieving a cumulative grade point average of two
point five on a four-point scale or the equivalent on another scale.

3. Scholarships shall be offered beginning for any academic term
beginning within twenty-four months following the date of graduation from
high school to Missouri high school graduates who meet the requirements
of subsection 1 of this section. The scholarship shall be applicable
toward payment for tuition and other fees and the costs of books and
other education-related expenses. The amount of the scholarship,
regardless of the institution attended, shall not exceed the current
average cost of tuition and fees at the campus of the University of
Missouri which has the largest total enrollment, as determined by the
coordinating board, and a book allowance as determined by the
coordinating board.

4. The amount of scholarship provided under sections 173.810 to 173.827
shall be based upon financial need as determined under sections 173.810
to 173.827, shall be subject to the maximum amount established in
subsection 2 of this section and shall be further reduced by the amount
of any nonloan need-based federal financial aid, all other nonloan
need-based assistance received by or on behalf of the student pursuant to
other provisions of this chapter and any other nonloan need-based state
financial aid which aid or assistance may be used for the purposes
established pursuant to subsection 2 of this section for scholarships
granted pursuant to sections 173.810 to 173.827.

5. A student who is enrolled or has been accepted for enrollment as a
postsecondary student at an approved private or public institution
beginning with the fall 1999 term and who meets the other eligibility
requirements for a scholarship pursuant to sections 173.810 to 173.827
shall, within the limits of the funds appropriated and made available, be
offered a scholarship for the first academic year of study as provided in
sections 173.810 to 173.827. Such scholarship shall be renewable in like
amount annually for the second, third, fourth and fifth academic years,
or as long as the recipient is in compliance with the applicable
eligibility requirements set forth in section 173.215, provided such
years of study are continuous and the student continues to meet
eligibility requirements for the scholarship. If a recipient ceases all
attendance at an approved public or private institution for the purpose
of providing service to a nonprofit organization, a state or federal
government agency or any branch of the armed forces of the United States,
the recipient shall be eligible for a renewal scholarship upon return to
any approved public or private institution, provided the recipient:

(1) Returns to full-time status within twenty-seven months;

(2) Provides verification, in compliance with rules of the coordinating
board, that the service to the nonprofit organization was satisfactorily
completed and was not compensated other than for expenses or that the
service to the state or federal governmental agency or branch of the
armed forces of the United States was satisfactorily completed; and

(3) Meets all other requirements established for eligibility to receive a
renewal scholarship. (L. 1998 H.B. 1519 & 1165 § 173.245 subsecs. 5, 6,
7, 8, 9, A.L. 1999 S.B. 443)

Effective 5-11-99

1. A recipient of a scholarship awarded pursuant to sections
173.810 to 173.827 may transfer from one approved Missouri public or
private institution to another without losing eligibility for the
scholarship. If a recipient of the scholarship at any time withdraws from
an approved private or public institution so that under the rules and
regulations of that institution such recipient is entitled to a refund of
any tuition, fees or other charges, the institution shall pay the portion
of the refund attributable to the scholarship for that term to the
coordinating board for higher education.

2. Other provisions of sections 173.810 to 173.827 to the contrary
notwithstanding, if a recipient has been awarded an initial scholarship
pursuant to the provisions of sections 173.810 to 173.827 but is unable
to use the scholarship during the first academic year because of illness,
disability, pregnancy or other medical need or if a recipient ceases all
attendance at an approved public or private institution because of
illness, disability, pregnancy or other medical need, the recipient shall
be eligible for an initial or renewal scholarship upon enrollment in or
return to any approved public or private institution, provided the
recipient:

(1) Enrolls in or returns to full-time status within twenty-seven months;

(2) Provides verification of sufficient medical evidence documenting an
illness, disability, pregnancy or other medical need of such person to
require that the person will not be able to use the initial or renewal
scholarship during the time period for which it was originally offered;
and

(3) Meets all other requirements established for eligibility to receive
an initial or a renewal scholarship. (L. 1998 H.B. 1519 & 1165 § 173.245
subsecs. 10, 11)

Upon recommendation of the coordinating board, funds may be
appropriated from the Missouri college guarantee fund for distribution by
the coordinating board as grants to any approved public and private
institution which submits an application demonstrating how the
institution will establish and operate a mentoring program which ensures
that at-risk students receiving scholarships pursuant to sections 173.810
to 173.827 have a positive educational experience at the institution. (L.
1998 H.B. 1519 & 1165 § 173.245 subsec. 12)

The "Missouri College Guarantee Fund" is hereby established in
the state treasury. The state treasurer shall administer the fund, and
the moneys in the fund shall be used solely by the coordinating board for
higher education pursuant to sections 173.810 to 173.827 for the awarding
of scholarships to eligible students and for other purposes specified
pursuant to sections 173.810 to 173.827; provided that moneys in the fund
may be used to fund graduate study scholarships provided pursuant to
section 173.727. Any interest which accrues to the fund shall remain in
the fund and shall be used in the same manner as moneys which are
transferred to the fund. Notwithstanding the provisions of section
33.080, RSMo, to the contrary, moneys in the Missouri college guarantee
fund at the end of any biennium shall not be transferred to the credit of
the general revenue fund. (L. 1998 H.B. 1519 & 1165 § 173.248)

CROSS REFERENCE: Gaming commission fund to transfer moneys to the
Missouri college guarantee fund, amount, when, RSMo 313.835

Retirement, severance and associated salary continuance policies
and plans of approved public institutions, as defined in section 173.205,
shall be applied uniformly, consistently and fairly to all similarly
situated officials and employees of such approved public institutions;
and no employee or official shall be singled out for retirement or
severance benefits which are inconsistent with the formally adopted
policies and plans of such approved public institutions. (L. 2000 H.B.
1808)

Effective 7-1-00

1. There is hereby created a "Department of Higher Education",
and the division of higher education of the department of education is
abolished and all its powers, duties, functions, personnel and property
are transferred as provided by the Reorganization Act of 1974, Appendix
B, RSMo.

2. The commission on higher education is abolished and all its powers,
duties, personnel and property are transferred by type I transfer to the
"Coordinating Board for Higher Education", which is hereby created, and
the coordinating board shall be the head of the department. The
coordinating board shall consist of nine members appointed by the
governor with the advice and consent of the senate, and not more than
five of its members shall be of the same political party. None of the
members shall be engaged professionally as an educator or educational
administrator with a public or private institution of higher education at
the time appointed or during his term. The other qualifications, terms
and compensation of the coordinating board shall be the same as provided
by law for the curators of the University of Missouri. The coordinating
board may, in order to carry out the duties prescribed for it in
subsections 1, 2, 3, 7, and 8 of this section, employ such professional,
clerical and research personnel as may be necessary to assist it in
performing those duties, but this staff shall not, in any fiscal year,
exceed twenty-five full-time equivalent employees regardless of the
source of funding. In addition to all other powers, duties and functions
transferred to it, the coordinating board for higher education shall have
the following duties and responsibilities:

(1) The coordinating board for higher education shall have approval of
proposed new degree programs to be offered by the state institutions of
higher education;

(2) The coordinating board for higher education may promote and encourage
the development of cooperative agreements between Missouri public
four-year institutions of higher education which do not offer graduate
degrees and Missouri public four-year institutions of higher education
which do offer graduate degrees for the purpose of offering graduate
degree programs on campuses of those public four-year institutions of
higher education which do not otherwise offer graduate degrees. Such
agreements shall identify the obligations and duties of the parties,
including assignment of administrative responsibility. Any diploma
awarded for graduate degrees under such a cooperative agreement shall
include the names of both institutions inscribed thereon. Any cooperative
agreement in place as of August 28, 2003, shall require no further
approval from the coordinating board for higher education. Any costs
incurred with respect to the administrative provisions of this
subdivision may be paid from state funds allocated to the institution
assigned the administrative authority for the program. The provisions of
this subdivision shall not be construed to invalidate the provisions of
subdivision (1) of this subsection;

(3) In consultation with the heads of the institutions of higher
education affected and against a background of carefully collected data
on enrollment, physical facilities, manpower needs, institutional
missions, the coordinating board for higher education shall establish
guidelines for appropriation requests by those institutions of higher
education; however, other provisions of the Reorganization Act of 1974
notwithstanding, all funds shall be appropriated by the general assembly
to the governing board of each public four-year institution of higher
education which shall prepare expenditure budgets for the institution;

(4) No new state-supported senior colleges or residence centers shall be
established except as provided by law and with approval of the
coordinating board for higher education;

(5) The coordinating board for higher education shall establish admission
guidelines consistent with institutional missions;

(6) The coordinating board shall establish policies and procedures for
institutional decisions relating to the residence status of students;

(7) The coordinating board shall establish guidelines to promote and
facilitate the transfer of students between institutions of higher
education within the state;

(8) The coordinating board shall collect the necessary information and
develop comparable data for all institutions of higher education in the
state. The coordinating board shall use this information to delineate the
areas of competence of each of these institutions and for any other
purposes deemed appropriate by the coordinating board;

(9) Compliance with requests from the coordinating board for
institutional information and the other powers, duties and
responsibilities, herein assigned to the coordinating board, shall be a
prerequisite to the receipt of any funds for which the coordinating board
is responsible for administering; and

(10) If any institution of higher education in this state, public or
private, willfully fails or refuses to follow any lawful guideline,
policy or procedure established or prescribed by the coordinating board,
or knowingly deviates from any such guideline, or knowingly acts without
coordinating board approval where such approval is required, or willfully
fails to comply with any other lawful order of the coordinating board,
the coordinating board may, after a public hearing, withhold or direct to
be withheld from that institution any funds the disbursement of which is
subject to the control of the coordinating board, or may remove the
approval of the institution as an "approved institution" within the
meaning of section 173.205, but nothing in this section shall prevent any
institution of higher education in this state from presenting additional
budget requests or from explaining or further clarifying its budget
requests to the governor or the general assembly.

3. The coordinating board shall meet at least four times annually with an
advisory committee who shall be notified in advance of such meetings. The
coordinating board shall have exclusive voting privileges. The advisory
committee shall consist of thirty-two members, who shall be the president
or other chief administrative officer of the University of Missouri; the
chancellor of each campus of the University of Missouri; the president of
each state-supported four-year college or university, including
Harris-Stowe State University, Missouri Southern State University,
Missouri Western State University, and Lincoln University; the president
of Linn State Technical College; the president or chancellor of each
public community college district; and representatives of each of five
accredited private institutions selected biennially, under the
supervision of the coordinating board, by the presidents of all of the
state's privately supported institutions; but always to include at least
one representative from one privately supported junior college, one
privately supported four-year college, and one privately supported
university. The conferences shall enable the committee to advise the
coordinating board of the views of the institutions on matters within the
purview of the coordinating board.

4. The University of Missouri, Lincoln University, and all other
state-governed colleges and universities, chapters 172, 174 and 175,
RSMo, and others, are transferred by type III transfers to the department
of higher education subject to the provisions of subsection 2 of this
section.

5. The state historical society, chapter 183, RSMo, is transferred by
type III transfer to the University of Missouri.

6. The state anatomical board, chapter 194, RSMo, is transferred by type
II transfer to the department of higher education.

7. All the powers, duties and functions vested in the division of public
schools and state board of education relating to community college state
aid and the supervision, formation of districts and all matters otherwise
related to the state's relations with community college districts and
matters pertaining to community colleges in public school districts,
chapters 163 and 178, RSMo, and others, are transferred to the
coordinating board for higher education by type I transfer. Provided,
however, that all responsibility for administering the federal-state
programs of vocational-technical education, except for the 1202a
post-secondary educational amendments of 1972 program, shall remain with
the department of elementary and secondary education. The department of
elementary and secondary education and the coordinating board for higher
education shall cooperate in developing the various plans for
vocational-technical education; however, the ultimate responsibility will
remain with the state board of education.

8. The administration of sections 163.171 and 163.181, RSMo, relating to
teacher-training schools in cities, is transferred by type I transfer to
the coordinating board for higher education.

9. All the powers, duties, functions, personnel and property of the state
library and state library commission, chapter 181, RSMo, and others, are
transferred by type I transfer to the coordinating board for higher
education, and the state library commission is abolished. The
coordinating board shall appoint a state librarian who shall administer
the affairs of the state library under the supervision of the board.

10. All the powers, duties, functions, and properties of the state
poultry experiment station, chapter 262, RSMo, are transferred by type I
transfer to the University of Missouri, and the state poultry association
and state poultry board are abolished. In the event the University of
Missouri shall cease to use the real estate of the poultry experiment
station for the purposes of research or shall declare the same surplus,
all real estate shall revert to the governor of the state of Missouri and
shall not be disposed of without legislative approval. (L. 1973 1st. Ex.
Sess. S.B. 1 § 13, A.L. 1983 S.B. 113 § 6, A.L. 1985 H.B. 675, A.L. 1999
H.B. 920, A.L. 2003 S.B. 55, A.L. 2005 S.B. 98)

*Originally section 6 of the Reorganization Act of 1974; transferred 1986.

The coordinating board for higher education shall appoint, and
shall fix the powers, duties, and compensation within the limits of
appropriations made for that purpose of, a commissioner of higher
education, who shall be the chief administrative officer of the
coordinating board. (L. 1983 S.B. 113 § 173.085)

The coordinating board for higher education (hereafter referred
to as the coordinating board) shall have the responsibility, within the
provisions of the Constitution of the state of Missouri, for:

(1) Conducting studies of population and enrollment trends affecting
institutions of higher education in the state;

(2) Identifying higher education needs in the state in terms of the
requirements and potential of the young people and in terms of labor
force requirements for the development of commerce and industry, and of
professional and public services;

(3) Developing arrangements for more effective and more economical
specialization among institutions in types of education programs offered
and students served, and for more effective coordination and mutual
support among institutions in the utilization of facilities, faculty and
other resources;

(4) Designing a coordinated plan for higher education in the state
(hereafter referred to as the coordinated plan) and for subregions in the
state, which shall be based on the studies indicated above and on such
others as may be deemed relevant by the coordinating board. (L. 1963 p.
350 § 2)

CROSS REFERENCES: Attendance policies for board of curators of for
University of Missouri, coordinating board's duty to develop, when, RSMo
172.010 Attendance polices for governing board of state colleges and
universities, coordinating board's duty develop, when, RSMo 174.105

The coordinating board, in addition, shall have responsibility,
within the provisions of the constitution and the statutes of the state
of Missouri, for:

(1) Requesting the governing boards of all state-supported institutions
of higher education, and of major private institutions to submit to the
coordinating board any proposed policy changes which would create
additional institutions of higher education, additional residence
centers, or major additions in degree and certificate programs, and make
pertinent recommendations relating thereto;

(2) Recommending to the governing board of any institution of higher
education in the state the development, consolidation, or elimination of
programs, degree offerings, physical facilities or policy changes where
that action is deemed by the coordinating board as in the best interests
of the institutions themselves and/or the general requirements of the
state. Recommendations shall be submitted to governing boards by twelve
months preceding the term in which the action may take effect;

(3) Recommending to the governing boards of state-supported institutions
of higher education, including public junior colleges receiving state
support, formulas to be employed in specifying plans for general
operations, for development and expansion, and for requests for
appropriations from the general assembly. Such recommendations will be
submitted to the governing boards by April first of each year preceding a
regular session of the general assembly of the state of Missouri;

(4) Promulgating rules to include selected off-campus instruction in
public college and university appropriation recommendations where prior
need has been established in areas designated by the coordinating board
for higher education. Funding for such off-campus instruction shall be
included in the appropriation recommendations, shall be determined by the
general assembly and shall continue, within the amounts appropriated
therefor, unless the general assembly disapproves the action by
concurrent resolution;

(5) Coordinating reciprocal agreements between or among Missouri state
institutions of higher education at the request of one or more of the
institutions party to the agreement, and between or among Missouri state
institutions of higher education and publicly supported higher education
institutions located outside the state of Missouri at the request of any
Missouri institution party to the agreement;

(6) Administering the nurse training incentive fund;

(7) Conducting, in consultation with each public four-year institution's
governing board and the governing board of technical colleges and
community colleges, a review every five years of the mission statements
of the institutions comprising Missouri's system of public higher
education. This review shall be based upon the needs of the citizens of
the state as well as the requirements of business, industry, the
professions and government. The purpose of this review shall be to ensure
that Missouri's system of higher education is responsive to the state's
needs and is focused, balanced, cost-effective, and characterized by
programs of high quality as demonstrated by student performance and
program outcomes. As a component of this review, each institution shall
prepare, in a manner prescribed by the coordinating board, a mission
implementation plan for the coordinating board's consideration and
approval. If the coordinating board determines that an institution has
qualified for a mission change or additional targeted resources pursuant
to review conducted under this subdivision and subdivision (8) of this
subsection, the coordinating board shall submit a report to the general
assembly that outlines the proposed mission change or targeted state
resources. No change of mission for an institution under this subdivision
establishing a statewide mission shall become effective until the general
assembly approves the proposed mission change by concurrent resolution,
except for the institution defined pursuant to subdivision (1) of section
174.010, RSMo, and has been approved by the coordinating board and the
institutions for which the coordinating board has recommended a statewide
mission prior to August 28, 1995. The effective date of any mission
change under this subdivision shall be the first day of July immediately
following the approval of the concurrent resolution by the general
assembly as required under this subdivision, and shall be August 28,
1995, for any institution for which the coordinating board has
recommended a statewide mission which has not yet been implemented on
such date. Nothing in this subdivision shall preclude an institution from
initiating a request to the coordinating board for a revision of its
mission; and

(8) Reviewing applications from institutions seeking a statewide mission.
Such institutions shall provide evidence to the coordinating board that
they have the capacity to discharge successfully such a mission. Such
evidence shall consist of the following:

(a) That the institution enrolls a representative cross-section of
Missouri students. Examples of evidence for meeting this requirement
which the institution may present include, but are not limited to, the
following: enrolling at least forty percent of its Missouri resident,
first-time degree-seeking freshmen from outside its historic statutory
service region; enrolling its Missouri undergraduate students from at
least eighty percent of all Missouri counties; or enrolling one or more
groups of special population students such as minorities, economically
disadvantaged, or physically disadvantaged from outside its historic
statutory service region at rates exceeding state averages of such
populations enrolled in the higher educational institutions of this state;

(b) That the institution offers one or more programs of unusual strength
which respond to a specific statewide need. Examples of evidence of
meeting this requirement which the institution may present include, but
are not limited to, the following: receipt of national, discipline-
specific accreditation when available; receipt of independent
certification for meeting national or state standards or requirements
when discipline- specific accreditation is not available; for
occupationally specific programs, placement rates significantly higher
than average; for programs for which state or national licensure is
required or for which state or national licensure or registration is
available on a voluntary basis, licensure or registration rates for
graduates seeking such recognition significantly higher than average; or
quality of program faculty as measured by the percentage holding terminal
degrees, the percentage writing publications in professional journals or
other appropriate media, and the percentage securing competitively
awarded research grants which are higher than average;

(c) That the institution has a clearly articulated admission standard
consistent with the provisions of subdivision (4) of subsection 2 of
section 173.005 or section 174.130, RSMo;

(d) That the institution is characterized by a focused academic
environment which identifies specific but limited areas of academic
emphasis at the undergraduate, and if appropriate, at the graduate and
professional school levels, including the identification of programs to
be continued, reduced, terminated or targeted for excellence. The
institution shall, consistent with its focused academic environment, also
have the demonstrable capacity to provide significant public service or
research support that address statewide needs for constituencies beyond
its historic statutory service region; and

(e) That the institution has adopted and maintains a program of
continuous quality improvement, or the equivalent of such a program, and
reports annually appropriate and verifiable measures of institutional
accountability related to such program. Such measures shall include, but
not be limited to, indicators of student achievement and institutional
mission attainment such as percentage of students meeting institutional
admission standards; success of remediation programs, if offered; student
retention rate; student graduation rate; objective measures of student,
alumni, and employer satisfaction; objective measures of student learning
in general education and the major, including written and oral
communication skills and critical thinking skills; percentage of students
attending graduate or professional schools; student placement, licensure
and professional registration rates when appropriate to a program's
objectives; objective measures of successful attainment of statewide
goals as may be expressed from time to time by the coordinating board or
by the general assembly; and objective measures of faculty teaching
effectiveness. In the development and evaluation of these institutional
accountability reports, the coordinating board and institutions are
expected to use multiple measures of success, including nationally
developed and verified as well as locally developed and independently
verified assessment instruments; however, preference shall be given to
nationally developed instruments when they are available and if they are
appropriate. Institutions which serve or seek to serve a statewide
mission shall be judged to have met the prerequisites for such a mission
when they demonstrate to the coordinating board that they have met the
criteria described in this subdivision. As a component of this process,
each institution shall prepare, in a manner prescribed by the
coordinating board, a mission implementation plan for the coordinating
board's consideration and approval. (L. 1963 p. 350 § 3, A.L. 1988 H.B.
1456, A.L. 1990 H.B. 1429, A.L. 1995 S.B. 340)

The coordinating board is directed to submit a written report to
the governor or governor-elect at least forty-five days prior to the
opening of each regular session of the general assembly and to submit the
same report to the general assembly within five days after the opening of
each regular session. The report shall include:

(1) A statement of the initial coordinated plan for higher education in
Missouri, together with subsequent changes and implementations;

(2) A review of recent changes in enrollments and programs among
institutions of higher education in the state;

(3) A review of requests and recommendations made by the coordinating
board to institutions of higher education in accordance with section
173.030 and of the college's or university's response to requests and
recommendations, including noncompliance therewith;

(4) The coordinating board's recommendations for development and
coordination in state-supported higher education in the forthcoming
biennium, within the context of the long-range coordinated plan;

(5) The coordinating board's budget recommendations for each
state-supported college or university for the forthcoming biennium. (L.
1963 p. 350 § 4)

The coordinating board for higher education shall be authorized
to:

(1) Serve as the official state agency to plan for, define and recommend
policies concerning the allocation of federal funds where such funds,
according to provisions of federal legislation, are to be received and
allocated through an official state agency;

(2) Apply for, receive, and utilize funds which may be available from
private nonprofit foundations and from federal sources for research on
higher education needs and problems in the state;

(3) Subcontract for research and planning services from individuals,
colleges or universities, or nonprofit corporations. (L. 1963 p. 350 § 5)

1. The coordinating board for higher education may submit
requests for appropriations for the purposes of the coordinating board
contracting with Missouri independent colleges and universities or
publicly supported higher education institutions or coordinating agencies
located outside the state of Missouri to provide professional or graduate
programs of instruction for Missouri citizens or research services for
the state of Missouri. At the time of submission for appropriations, the
coordinating board shall demonstrate to the general assembly that the
program or service fulfills a state manpower or research need that is not
available in Missouri's public universities in the area in which such is
located. Such agreements or contracts shall be entered into and approved
as otherwise provided by law.

2. A Missouri independent college or university to be eligible to enter
into such a contract shall be designated as an approved private
institution as defined in the provisions of section 173.205. Publicly
supported institutions of higher education located outside the state of
Missouri shall possess the equivalent approval of what would be required
if such institutions were located in this state.

3. Nothing in this section shall be construed so as to prohibit the
coordinating board for higher education from approving the development of
a new program of instruction at a public college or university if in the
judgment of the coordinating board the development of a new program is in
the best educational and fiscal interests of the state of Missouri. (L.
1986 S.B. 630 § 1, A.L. 1988 H.B. 1456)

1. The coordinating board for higher education shall determine
the number of students receiving a maximum Pell grant in each Missouri
public two-year and four-year college and university in fiscal year 1988.

2. Based on the enrollment numbers established in subsection 1 of this
section, the coordinating board shall request in subsequent fiscal years
an appropriation based on the criteria established in subsection 3 of
this section. In determining the number of students receiving a maximum
Pell grant, only students meeting the following criteria shall be
included. Such students shall:

(1) Apply for and be eligible for a maximum Pell grant;

(2) Be in-state students;

(3) Maintain satisfactory academic progress;

(4) Not receive more than one thousand dollars annually in guaranteed
student loans; and

(5) Not receive a Missouri student grant.

3. To be eligible to receive appropriations, public institutions shall:

(1) Increase the number of students meeting the criteria established in
subsection 2 of this section at a percentage established annually by the
coordinating board;

(2) Document in-state status of such students and submit academic
progress policies related to such students to the coordinating board.

4. The coordinating board shall, in consultation with the heads of the
public two-year and four-year colleges and universities, establish a
formula based on the cost of instruction to reimburse public institutions
for a portion of the cost of increasing the number of students meeting
the criteria established in subsection 2 of this section.

5. The coordinating board shall, in consultation with the heads of the
public two-year and four-year colleges and universities, establish rules
and regulations on the participation of part-time undergraduate students
enrolled in a degree or certificate granting program. (L. 1988 H.B. 1456
§ 20)

CROSS REFERENCE: Access to higher education trust fund, definitions and
procedure, RSMo 166.200 to 166.242

1. As used in this section, the following terms shall mean:

(1) "Board", the Missouri coordinating board for higher education;

(2) "Department", the Missouri department of higher education;

(3) "Fund", the risk sharing revolving fund;

(4) "Institution", any institution of postsecondary education, including
a university, college, vocational and technical school, and other
postsecondary institution, located within the state of Missouri;

(5) "Institutional fee", an annual fee assessed against institutions by
the department based on a calculation approved by the United States
Secretary of Education;

(6) "Rate", the cohort default rate determined by the United States
Secretary of Education;

(7) "Secretary", the United States Secretary of Education;

(8) "State fee", a fee assessed against the state of Missouri and paid to
the secretary as required by federal law.

2. The Missouri coordinating board for higher education shall administer
the "Student Loan Default State Risk Sharing Program" established
pursuant to the Omnibus Budget Reconciliation Act of 1993, P.L. 103-66,
and shall calculate, assess, collect, and authorize payment of the state
fee to the secretary.

3. The department shall annually authorize payment from the fund of any
fee assessed by the secretary under the Omnibus Budget Reconciliation Act
of 1993, as amended, P.L. 103-66, on behalf of the state and shall
collect, pursuant to this section, fees from educational institutions to
cover this cost.

4. The "Risk Share Revolving Fund" is hereby established in the state
treasury and shall consist of money appropriated to the fund by the
general assembly, institutional fees, gifts, grants, and bequests from
federal, private, or other sources made for the purpose of paying the
state fee to the secretary. Any balance in the fund, not in excess of two
times the total amount appropriated, paid or transferred to the fund
during the preceding fiscal year shall not be subject to transfer to the
general revenue fund pursuant to section 33.080, RSMo.

5. All moneys collected by the department in institutional fees shall be
paid into the state treasury and credited to the fund.

6. The department may contract with public agencies or private persons or
organizations for the purpose of carrying out the provisions of this
section.

7. The board shall, by rule, determine the procedures for the collection
of the annual institutional fees. If an institution fails to pay the
assessed fee, the attorney general for the state of Missouri may initiate
proceedings to collect the assessed fee.

8. The board shall develop and promulgate rules pursuant to and shall
administer the provisions of this section.

9. Independent or private guarantors of student loans of students
attending Missouri institutions shall file an annual report at no charge
by each October fifteenth with the department stating, for the
immediately preceding period of October first through September thirtieth
and for each month therein and for each Missouri institution, the total
number of loans guaranteed, the total dollar amount of such loans, the
total number and amount of loans entering repayment, the total number and
amount of loans for which default claims were paid, the total number and
amount of loans for which bankruptcy claims were paid, the total number
and amount of loans for which death claims were paid, and the total
number and amount of loans for which total and permanent disability
claims were paid. (L. 1994 S.B. 583)

The board may adopt rules as authorized in this chapter pursuant
to the provisions of this section and chapter 536, RSMo. No rule or
portion of a rule promulgated under the authority of this chapter shall
become effective unless it has been promulgated pursuant to the
provisions of section 536.024, RSMo. (L. 1993 S.B. 52 § 173.080, A.L.
1995 S.B. 3)

1. Any Missouri resident who is at least sixty-five years of age
on or before August first of a school year and who possesses the
qualifications set forth in this section shall be awarded a scholarship
to a state educational institution, as the term is defined in section
176.010, RSMo, of the person's choice. Such scholarship shall consist of
an exemption from tuition at the institution attended. Persons seeking a
scholarship pursuant to this section shall provide documentation of age
to the institution attended and shall satisfy all other necessary
entrance requirements of the school of their choice in order to be
eligible to receive a scholarship.

2. Certification and eligibility for the tuition benefits provided under
this section, including satisfaction of applicable entrance requirements,
shall be determined by the chosen educational institution.

3. Each state educational institution shall determine the number of
students who may receive the tuition benefit based on available class
space after tuition-paying students have enrolled. No institution shall
be required to provide tuition benefits to any person if the institution
is already providing tuition benefits to at least as many students as the
number of students established pursuant to this subsection.

4. If a recipient of a scholarship pursuant to this section is found no
longer eligible for tuition benefits under this section by the
institution while enrolled in a course of study, the scholarship shall be
terminated on the date the member is found no longer eligible for tuition
benefits.

5. A person receiving a scholarship pursuant to this section shall take
all tuition-free courses on a noncredit basis and shall satisfy all
course prerequisites of the institution.

6. An institution may charge a registration fee, not to exceed
twenty-five dollars per semester, from any person receiving a scholarship
at that institution pursuant to this section. (L. 1998 H.B. 1694)

*(Transferred 2000; formerly 173.241)

In recognition of the role of education in modern society and
its influence upon whether or not a citizen will beneficially contribute
to his state and community by his talents and developed abilities, and in
recognition that educational opportunity should not be limited by the
financial means of the student, and in further recognition of the public
purposes designated by the United States through the Higher Education Act
of 1965, P.L. 89-329, as amended, and the National Vocational Student
Loan Insurance Act of 1965, P.L. 89-287, the general assembly of the
state of Missouri declares that state assistance to postsecondary
students will benefit the state economically and culturally and is a
public purpose of great importance. (L. 1967 1st Ex. Sess. p. 894 § 1,
A.L. 1978 H.B. 891)

As used in sections 173.095 to 173.187 the following terms mean:

(1) "Board", the Missouri coordinating board for higher education;

(2) "Borrower", any person who has become legally obligated to repay a
loan made under the student loan program or that person's guardian,
trustee, estate, or other person legally responsible for defending
against or satisfying borrower's obligations under the student loan
program;

(3) "Department", the Missouri department of higher education;

(4) "Earnings", compensation paid or payable for personal services,
whether denominated wages, salary, commission, bonus, or otherwise;

(5) "Eligible borrower", any person attending or the parent of a
dependent attending an eligible institution;

(6) "Eligible institution", any institution of postsecondary education,
including a university, college, vocational and technical school, and
other postsecondary institution, which has been approved for purposes of
participation in the Missouri student loan program by the department and
the United States Secretary of Education;

(7) "Eligible lender", any bank, savings and loan association, credit
union, insurance company, pension fund, eligible educational institution
lender, or the department, or the federal Student Loan Marketing
Association or other secondary market operation;

(8) "Employer", any person, partnership, association, corporation,
institution, governmental body, unit or agency, school district or
municipal corporation, or any other entity employing one or more persons
for a salary, wage, commission or other compensation, or any
self-employed borrower;

(9) "Fund", the state guaranty student loan fund;

(10) "LLR fund", the lender of last resort revolving fund established in
section 173.187;

(11) "Program", the Missouri guaranteed student loan program. (L. 1967
1st Ex. Sess. p. 894 § 2, A.L. 1978 H.B. 891, A.L. 1981 H.B. 326, A.L.
1988 H.B. 1456, A.L. 1994 S.B. 583)

1. The board shall determine the basic policies for the loan
program and shall promulgate rules and regulations necessary to establish
the loan program and to carry out the purposes of sections 173.095 to
173.180. The basic policies of the board and all rules and regulations
promulgated pursuant to sections 173.095 to 173.180 shall be designed to
encourage maximum involvement and participation by lenders and financial
institutions in the student loan program. Lenders and financial
institutions shall be encouraged by institutions of higher education to
maximize the number of loans available to students. It shall be the
responsibility of the coordinating board for higher education to
establish guidelines and criteria for institutions of higher education
for usage in maximizing the availability of student loans. The department
shall be the administrative agency for the implementation of the program,
and may employ such personnel as is necessary, in excess of the number
provided in subsection 2 of section 6 of the omnibus state reorganization
act of 1974, to administer the provisions of sections 173.095 to 173.230.

2. All reports relating to the program which are now or may hereafter be
required by the federal government shall also be submitted to the
director of the office of administration and to the senate and house
appropriations committees. (L. 1978 H.B. 891, A.L. 1981 H.B. 326, A.L.
1993 S.B. 52, A.L. 1994 S.B. 583)

1. The department is authorized to issue certificates of
guarantee covering student loans by eligible lenders which meet the
requirements of sections 173.095 to 173.180 and the regulations of the
board adopted hereunder to eligible borrowers, and to pay from the fund
to an eligible lender the amount established by federal law in the event
the student defaults. Upon payment of the loss the department shall be
subrogated to all the rights of the eligible lender.

2. The department shall charge for each guaranteed loan a special loan
insurance premium established by federal law which shall be paid to the
department by the borrower. Amounts so received shall be used by the
department to pay the costs of administering the program and to guarantee
student loans.

3. The department is authorized to originate loans, including lender of
last resort loans. All moneys to originate loans, including lender of
last resort loans, shall be paid from a fund established for that
purpose, including the lender of last resort revolving fund created under
section 173.187.

4. The total outstanding guaranteed loans shall at no time exceed an
amount which, according to sound actuarial judgment as determined by the
state auditor, can be guaranteed by the fund. (L. 1967 1st Ex. Sess. p.
894 § 3, A.L. 1978 H.B. 891, A.L. 1981 H.B. 326, A.L. 1994 S.B. 583)

1. After the department has paid a loss on a defaulted loan and
has entered a statement of claim in which it determines and sets forth
the existence, nature and amount of the money due it by the defaulting
borrower and a proposed payment schedule, the department may issue an
order directing any employer of the borrower to withhold or pay over to
the department money due or to become due to the department.

2. Before issuing the order as provided in subsection 1 of this section,
the department shall serve on the borrower the statement of claim and
shall inform the borrower that the department intends to initiate
proceedings to collect the debt through deductions from earnings. The
department shall also provide a copy of this section or an explanation of
the borrower's rights under this section.

3. The department shall provide the borrower with an opportunity to
inspect and copy records related to the defaulted loans.

4. The department shall provide the borrower with the opportunity to
enter into a written agreement with the department under terms agreeable
to the department to establish a schedule for the repayment of the debt.

5. The department shall provide the borrower with the opportunity to have
a hearing before an impartial hearing officer appointed by the department
but who is not under the control or supervision of the board or
department. The procedures for the hearing shall be the same as those for
contested cases under chapter 536, RSMo. Upon the borrower's filing of a
request for a hearing in compliance with the rules of the board, the
department shall stay the commencement of collection proceedings for the
debt described in the statement of claim until the department issues an
order provided for in subsection 6, 7, or 8, of this section.

6. At the earliest practicable date but not later than sixty days after
the filing of the request for the hearing, the hearing officer shall file
with the department his written decision which states specifically his
findings in regard to those matters set forth in the department's
statement of claim. The hearing officer shall also determine and include
in his decision the terms of the repayment schedule which shall be the
same as that set forth by the department in its statement of claim unless
he finds no good cause to enter that schedule. Upon receipt of the
hearing officer's decision, the department shall issue an order to pay
debt which adopts the findings in the decision as to the existence,
nature and amount of the debt and as to the repayment schedule.

7. When a borrower properly requests a hearing under the board's rules
and when the hearing officer does not issue a decision within sixty days
of the department's having received the request for the hearing, the
department shall issue an order withdrawing the statement of claim and
serve it upon the borrower with a copy of this subsection. After such an
order is entered, the department shall not use the provisions of this
section in regard to the loans set forth in the statement of claim, but
may use any other remedy provided by law to recover the moneys owed the
department. The order issued by the department shall not have the effect
of precluding any other administrative or judicial tribunal from deciding
any claim brought by the department or other party against the borrower
or from deciding any factual or legal issue relevant to such claim.

8. When a borrower does not make a proper timely request for a hearing,
the department may issue and serve on the borrower an order to pay debt
which contains as its provisions the content of the statement of claim
including the proposed repayment schedule.

9. The borrower may seek judicial review of any order to pay debt under
sections 536.100 to 536.140, RSMo.

10. Upon issuing an order to pay debt, but not less than thirty days
after the statement of claim was served on the borrower, the department
may issue an order to withhold earnings which directs any employer of the
borrower to withhold and pay over to the department money due or to
become due the borrower. The employer shall withhold from the earnings
the amount specified in the order, except that the total amount withheld
shall not exceed ten percent of the borrower's earnings after deduction
from those earnings of any amount required by law to be withheld. When
the borrower voluntarily makes a written request that money due or to
become due him be withheld or applied to the debt or that more than the
ten percent maximum be withheld from his earnings, the employer shall
comply with that request as if so ordered by the department.

11. Subject to the provisions of section 454.505, RSMo, an order to
withhold earnings shall have the same force and effect in regard to the
employer as any other garnishment.

12. No employer or other payor who complies with an order to withhold
earnings shall be liable to the borrower, or to any other person claiming
rights derived from the borrower, for wrongful withholding. An employer
who fails or refuses to withhold or pay the amounts as ordered under this
section shall be liable to the department in an amount equal to the
amount which became due the department during the relevant period and
which, under the order, should have been withheld and paid over.

13. An employer shall not discharge, refuse to hire or otherwise
discipline an employee as a result of an order to withhold and pay over
certain money authorized by this section. Any employer who does so is
guilty of an infraction.

14. Service on the borrower or on the employer pursuant to this section
or pursuant to rules promulgated under this section may be made on the
borrower or employer, respectively or on other party in the manner
provided for service of process in a civil action by a duly authorized
process server appointed by the department, or by certified mail, return
receipt requested, to the borrower's last known address or to the
employer's address. The department may appoint any disinterested party,
including, but not necessarily limited to, employees of the department,
to serve such process. For purposes of this section, a borrower or an
employer who does not accept receipt of service by certified mail or a
borrower who has not provided the department his new or correct address
is deemed to have been served as of the date on which the certified mail
is mailed.

15. The board may promulgate rules to carry out the provisions of this
section, including, but not limited to, rules pertaining to proceedings
before the hearing officer and before the department and rules pertaining
to procedures to be followed by employers to comply with the order to
withhold and pay over earnings. (L. 1988 H.B. 1456)

1. The "State Guaranty Student Loan Fund" is established and
shall consist of money appropriated to it by the general assembly,
charges, gifts, grants and bequests from federal, private or other
sources made for the purpose of assisting students in financing their
education. Notwithstanding the provisions of section 33.080, RSMo, no
portion of the fund shall be transferred to the general revenue fund,
except that in appropriations made for the fiscal year beginning July 1,
1982, the general assembly shall transfer six hundred thousand dollars
from the fund to the general revenue fund, and any appropriation made to
the fund shall not lapse, but the board shall hold the fund in the same
manner as the curators of the University of Missouri and the other state
educational institutions are directed to hold funds not subject to lapse
or transfer.

2. All moneys recovered by the department for payments made on previously
defaulted guaranteed loans shall be paid promptly into the state treasury
and credited to the fund.

3. The fund shall be administered by the department. (L. 1967 1st Ex.
Sess. p. 894 § 4, A.L. 1978 H.B. 891, A.L. 1982 S.B. 831)

Effective 4-30-82

CROSS REFERENCE: State guaranty student loan fund abolished subject to
exemption, RSMo 33.571

Moneys in the fund, both unobligated and obligated as a reserve,
which in the judgment of the board are not currently needed for the
payment of defaults of guaranteed loans, may be invested by the state
treasurer, and any income therefrom shall be deposited to the credit of
the fund. (L. 1967 1st Ex. Sess. p. 894 § 5, A.L. 1978 H.B. 891)

The board may:

(1) Enter into agreements with and receive grants from the United States
government in connection with federal programs of assistance to students
of postsecondary education;

(2) Contract with public agencies or private persons or organizations for
the purpose of carrying out the administrative functions imposed upon it
by sections 173.095 to 173.180;

(3) Call upon agencies of the state which have actuarial or financial
expertise for consultation and advice, and upon any agency of the state
for assistance in the location of delinquent borrowers. (L. 1981 H.B. 326)

The board, by rules and regulations, shall determine the policy
of collections and recovery of loans, including the use of private
collection agencies or assigning loans to the United States Secretary of
Education. Pursuant to the rules and regulations of the board the
department may institute action to recover any amount due the program in
any loan transaction, use private collection agencies, or otherwise carry
out the policy set by the board. (L. 1967 1st Ex. Sess. p. 894 § 7, A.L.
1978 H.B. 891, A.L. 1994 S.B. 583)

The board shall adopt and promulgate regulations establishing
standards for determining eligible institutions, eligible lenders, and
eligible borrowers under sections 173.095 to 173.180. These standards
shall include, but are not limited to, the following:

(1) The student's enrollment in an eligible institution, where his good
standing and workload meet the criteria of the institution;

(2) The total guaranteed loans made to a student for one academic year;

(3) The aggregate insured unpaid principal of all guaranteed loans made
to any student;

(4) The loans received by the student other than those guaranteed under
the provisions of sections 173.095 to 173.180;

(5) The need of the student for the loan;

(6) The proportion of guaranteed outstanding student loans in default or
potential default status from individual institutions or lenders;

(7) The percentage of the enrolled students at an institution who have
guaranteed student loans and then withdraw; and

(8) The proportion of students at an institution having received
guaranteed loans. (L. 1967 1st Ex. Sess. p. 894 § 8, A.L. 1978 H.B. 891,
A.L. 1981 H.B. 326, A.L. 1994 S.B. 583)

1. The board shall adopt regulations establishing standards for
determining eligibility of loan agreements to be guaranteed under the
provisions of sections 173.095 to 173.180. The regulations shall provide
for, but shall not be limited to, the following:

(1) The requirement or nonrequirement of security or endorsement;

(2) The manner and time of repayment of the principal and interest;

(3) The maximum rate of interest;

(4) The right of the borrower to accelerate payments without penalty;

(5) The amount of the guarantee charge;

(6) The effective period of the guarantee;

(7) The percent of the loan covered by the guarantee;

(8) The assignability of loans by the lender;

(9) Procedures in the event of default by the borrower;

(10) The due diligence effort on the part of lenders for collection of
guaranteed loans;

(11) Collection assistance and supplemental preclaims assistance to be
provided to lenders; and

(12) The extension of the guarantee in consideration of eligible
deferments or forbearances.

2. The eligibility of any person for a student loan under the provisions
of sections 173.095 to 173.180 shall not be determined or otherwise
affected by any considerations of that person's race, religion, sex,
creed, color, location of residence, or choice of eligible institution.
(L. 1967 1st Ex. Sess. p. 894 § 10, A.L. 1978 H.B. 891, A.L. 1981 H.B.
326, A.L. 1994 S.B. 583)

The regulations of the board for the program shall be filed with
the secretary of state as provided by statute before they shall become
effective. (L. 1967 1st Ex. Sess. p. 894 § 10, A.L. 1978 H.B. 891)

1. Independent or private guarantors of student loans of
Missouri residents attending Missouri postsecondary educational
institutions shall be subject to the following provisions in order to be
eligible to guaranty such loans:

(1) No such loan shall be guaranteed for attendance at a correspondence
school, at a school which has been suspended or terminated from
eligibility for the Missouri guaranteed student loan program by the
Missouri guaranty agency, at a school which is not designated as an
eligible institution for the Missouri guaranteed student loan program by
the Missouri guaranty agency or at a school which has been designated as
an eligible institution but does not participate;

(2) Each such guarantor of student loans shall file an annual report by
each August fifteenth with the Missouri coordinating board for higher
education giving, for the immediately preceding period of July first
through June thirtieth and for each month therein and for each Missouri
postsecondary institution attended by Missouri residents for which loans
were guaranteed, the total number of loans guaranteed and the total
dollar amount of such loans;

(3) The coordinating board for higher education shall develop and
promulgate rules pursuant to and shall administer the provisions of these
requirements. The coordinating board shall take reasonable action to
identify and notify affected guaranty agencies, lenders and postsecondary
educational institutions. (L. 1986 H.B. 1356 § 2 subsec. 1)

1. The "Lender of Last Resort Revolving Fund" is hereby
established in the state treasury and shall consist of funds received
from the United States Secretary of Education, charges, gifts, grants,
and bequests from federal, private or other sources made for the purpose
of assisting students in financing their education. No portion of the
fund shall be transferred to the general revenue fund.

2. The fund shall be administered by the program. (L. 1994 S.B. 583)

1. Any business firm, as defined in section 32.105, RSMo, may
make a donation to the "Missouri Higher Education Scholarship Donation
Fund", which is hereby created in the state treasury. A donating business
firm shall receive a tax credit as provided in this section equal to
fifty percent of the amount of the donation, except that tax credits
shall be awarded each fiscal year in the order donations are received and
the amount of tax credits authorized shall total no more than two hundred
and fifty thousand dollars for each fiscal year.

2. The department of revenue shall grant tax credits approved under this
section which shall be applied in the order specified in subsection 1 of
section 32.115, RSMo, until used. The tax credits provided under this
section shall be refundable, and any tax credit not used in the fiscal
year in which approved may be carried over the next five succeeding
calendar or fiscal years until the full credit has been claimed.

3. No tax credit authorized under this section may be applied against any
tax applied in a tax year beginning prior to January 1, 1995.

4. All revenues credited to the fund shall be used, subject to
appropriations, to provide scholarships authorized under sections 173.197
to 173.199, and for no other purpose.

5. For all tax years beginning on or after January 1, 2005, no tax
credits shall be authorized, awarded, or issued to any person or entity
claiming any tax credit under this section. (L. 1994 H.B. 1248 & 1048 §
17, A.L. 2004 S.B. 1099)

Sections 173.197 to 173.199 shall be known and may be cited as
the "Higher Education Scholarship Program". The general assembly hereby
finds and declares that Missouri citizens should be encouraged to pursue
academic disciplines necessary for the future economic well-being of this
state to maintain competitiveness in a global economy; therefore, the
purpose of sections 173.197 to 173.199 is to increase the number of
students pursuing and receiving undergraduate degrees in mathematics,
science, and foreign languages, and to increase the number of students
pursuing and receiving graduate degrees in mathematics, science,
engineering and foreign languages, by offering scholarships and
fellowships as incentives to pursue such disciplines. (L. 1993 H.B. 566 §
14)

1. There is hereby established the "Undergraduate Scholarship
Program", which shall be administered by the coordinating board for
higher education. The program shall, upon appropriation, provide
scholarships, subject to the eligibility criteria enumerated in this
section, for persons who pursue an undergraduate degree in the fields of
mathematics, chemistry, physics, astronomy, geology, life sciences,
teacher's education in mathematics or science, and foreign languages.

2. The amount of any scholarship granted under the undergraduate
scholarship program shall be five thousand dollars, except that in no
event shall the total amount of any scholarship received under this
section plus the amount of any scholarship received under the higher
education academic scholarship program, otherwise known as the "bright
flight program", pursuant to section 173.250, exceed five thousand
dollars.

3. In order to be eligible to receive a scholarship pursuant to this
section, a person shall:

(1) Be a United States citizen and a Missouri resident in the third,
fourth, or fifth year of study at any public or private institution of
higher education in this state and have completed at least sixty hours of
accredited higher education study at any public or private institution of
higher education in this state;

(2) Rank in the top fifteenth percentile in either the SAT (Scholastic
Aptitude Test) or the ACT (American College Test);

(3) Be a full-time student at any public or private institution of higher
education in this state;

(4) Be a declared major in one of the academic disciplines enumerated in
subsection 1 of this section;

(5) Agree to submit to the exit examination developed under subsection 4
of this section.

4. The coordinating board for higher education shall, in consultation
with academic experts in the respective disciplines in this state,
administer comprehensive exit examinations in each field of academic
discipline enumerated in subsection 1 of this section to be administered
every year. Such examinations shall be selected so as to measure the
breadth of knowledge of the examinee and allow for novel and creative
ideas in the respective discipline.

5. The coordinating board shall analyze the results of the exit
examination administered pursuant to subsection 4 of this section. If, in
the opinion of the coordinating board, three years after implementation
of the undergraduate scholarship program in a particular field of study,
average scores on exit examinations of scholarship recipients fall below
the fiftieth percentile, new undergraduate scholarships in that
particular academic discipline at that particular institution of higher
education shall be discontinued for a period of one year.

6. All scholarships issued pursuant to sections 173.197 to 173.199 may be
renewed annually if the coordinating board is satisfied that the
recipient is making satisfactory academic progress. (L. 1993 H.B. 566 §
15)

1. There is hereby established the "Graduate Fellowship Program"
which shall be administered by the coordinating board for higher
education. The program shall, upon appropriation, provide fellowships,
subject to the eligibility criteria enumerated in this section, for
persons who pursue a graduate degree in the fields of mathematics,
chemistry, physics, geology, astronomy, life sciences, foreign languages,
engineering, and agricultural sciences.

2. The amount of any fellowship granted under the graduate fellowship
program for the pursuit of a master's degree in any of the disciplines
enumerated in subsection 1 of this section shall be eight thousand
dollars.

3. The coordinating board shall award scholarships in an amount of eight
thousand dollars for the pursuit of a doctorate degree in any of the
disciplines enumerated in subsection 1 of this section.

4. In order to be eligible to receive a scholarship or fellowship
pursuant to this section, a person shall be a United States citizen and a
Missouri resident who scores in the top twenty-fifth percentile of the
GRE (Graduate Record Examination) test.

5. Any scholarship or fellowship awarded pursuant to sections 173.197 to
173.199 shall be expended only at a public or private institution of
higher education in the state of Missouri. (L. 1993 H.B. 566 § 16)

The general assembly, giving due consideration to the historical
and continuing interest of the people of the state of Missouri in
encouraging deserving and qualified youths to realize their aspirations
for higher education, finds and declares that higher education for
residents of this state who desire such an education and are properly
qualified therefor is important to the welfare and security of this state
and the nation, and consequently is an important public purpose. The
general assembly finds and declares that the state can achieve its full
economic and social potential only if every individual has the
opportunity to contribute to the full extent of his capabilities and only
when financial barriers to his economic, social and educational goals are
removed. It is, therefore, the policy of the general assembly and the
purpose of sections 173.200 to 173.230 to establish a financial
assistance program to enable qualified full-time students to receive
nonreligious educational services in a public or private institution of
higher education of their choice. (L. 1972 S.B. 613 § 1, A.L. 1979 H.B.
544)

(1976) Held, §§ 173.200 to 173.235 are constitutional and do not violate
Art. I, Sec. 6 or 7, Art. III, Sec. 38(a), Art. IX, Sec. 8 or Art. X,
Sec. 3 of the Const. of Missouri or the first amendment to the Const. of
the United States. Two judges concur in opinion, one concurs in separate
opinion, and three judges dissent. Americans United v. Rogers (Mo.), 538
S.W.2d 711.

The financial assistance program established under sections
173.200 to 173.230 shall be hereafter known as the "Charles Gallagher
Student Financial Assistance Program". The coordinating board and all
approved private and public institutions in this state shall refer to the
financial assistance program established under sections 173.200 to
173.230 as the Charles Gallagher student financial assistance program in
their scholarship literature, provided that no institution shall be
required to revise or amend any such literature to comply with this
section prior to the date such literature would otherwise be revised,
amended, reprinted or replaced in the ordinary course of such
institution's business. (L. 1997 S.B. 346)

As used in sections 173.200 to 173.230, unless the context
requires otherwise, the following terms mean:

(1) "Academic year", the period from August first of any year through
July thirty-first of the following year;

(2) "Approved private institution", a nonprofit institution, dedicated to
educational purposes, located in Missouri which:

(a) Is operated privately under the control of an independent board and
not directly controlled or administered by any public agency or political
subdivision;

(b) Provides a postsecondary course of instruction at least six months in
length leading to or directly creditable toward a certificate or degree;

(c) Meets the standards for accreditation as determined by either the
North Central Association of Colleges and Secondary Schools or by other
accrediting bodies recognized by the United States Office of Education or
by utilizing accreditation standards applicable to nondegree-granting
institutions as established by the coordinating board for higher
education;

(d) Does not discriminate in the hiring of administrators, faculty and
staff or in the admission of students on the basis of race, color,
religion, sex, or national origin and is in compliance with the Federal
Civil Rights Acts of 1964 and 1968 and executive orders issued pursuant
thereto. Sex discrimination as used herein shall not apply to admission
practices of institutions offering the enrollment limited to one sex;

(e) Permits faculty members to select textbooks without influence or
pressure by any religious or sectarian source;

(3) "Approved public institution", an educational institution located in
Missouri which:

(a) Is directly controlled or administered by a public agency or
political subdivision;

(b) Receives appropriations directly or indirectly from the general
assembly for operating expenses;

(c) Provides a postsecondary course of instruction at least six months in
length leading to or directly creditable toward a degree or certificate;

(d) Meets the standards for accreditation as determined by either the
North Central Association of Colleges and Secondary Schools, or if a
public junior college created pursuant to the provisions of sections
178.370 to 178.400, RSMo, meets the standards established by the
coordinating board for higher education for such public junior colleges,
or by other accrediting bodies recognized by the United States Office of
Education or by utilizing accreditation standards applicable to the
institution as established by the coordinating board for higher education;

(e) Does not discriminate in the hiring of administrators, faculty and
staff or in the admission of students on the basis of race, color,
religion, sex, or national origin and is otherwise in compliance with the
Federal Civil Rights Acts of 1964 and 1968 and executive orders issued
pursuant thereto;

(f) Permits faculty members to select textbooks without influence or
pressure by any religious or sectarian source;

(4) "Coordinating board", the coordinating board for higher education;

(5) "Financial assistance", an amount of money paid by the state of
Missouri to a qualified applicant pursuant to sections 173.200 to 173.230;

(6) "Financial need", the difference between the financial resources
available to an applicant, as determined by the coordinating board, and
the applicant's anticipated expenses, including tuition, mandatory fees,
and board and room while attending an approved private or public
institution of postsecondary education. In determining need the
coordinating board shall employ a formula similar to nationally
recognized comprehensive mechanisms for determining need, such as those
of the American College Testing Program or the College Scholarship
Service;

(7) "Full-time student", an individual who is enrolled in and is carrying
sufficient number of credit hours or their equivalent at an approved
private or public institution to secure the degree or certificate toward
which he is working in no more than the number of semesters or their
equivalent normally required by that institution in the program in which
the individual is enrolled. (L. 1972 S.B. 613 § 2, A.L. 1978 H.B. 1735,
A.L. 1979 H.B. 544)

The coordinating board shall be the administrative agency for
the implementation of the program established by sections 173.200 to
173.235. The coordinating board shall promulgate reasonable rules and
regulations for the exercise of its functions and the effectuation of the
purposes of sections 173.200 to 173.235. It shall prescribe the form and
the time and method of filing applications and supervise the processing
thereof. The coordinating board shall determine the criteria for
eligibility of applicants and shall evaluate each applicant's financial
need. It shall select qualified recipients to receive financial
assistance, make such awards of financial assistance to qualified
recipients and determine the manner and method of payment to the
recipient. The coordinating board shall determine eligibility for renewed
assistance on the basis of annual applications and annual evaluations of
financial needs, giving priority to renewal applicants over new
applicants in dispensing available funds in a given year. In awarding
renewal grants, the coordinating board may increase or decrease the
amount of financial assistance to an applicant if such action is
warranted by a change in the financial condition of the applicant, his
spouse or parents or the availability of funds for that year. As a
condition to consideration for initial or renewed assistance, the
coordinating board may require the applicant, his spouse and parents to
execute forms of consent authorizing the director of revenue of Missouri
to compare financial information submitted by the applicant with the
Missouri individual income tax returns of the applicant, his spouse and
parents for the taxable year immediately preceding the year for which
application is made, and to report any discrepancies to the coordinating
board. (L. 1972 S.B. 613 § 3)

1. An applicant shall be eligible for initial or renewed
financial assistance only if, at the time of his application and
throughout the period during which he is receiving such assistance, he

(1) Is a citizen or a permanent resident of the United States;

(2) Is a resident of the state of Missouri, as determined by reference to
standards promulgated by the coordinating board;

(3) Is enrolled, or has been accepted for enrollment, as a full-time
undergraduate student in an approved private or public institution;

(4) Establishes that he has financial need;

(5) Has never been convicted in any court of an offense which involved
the use of force, disruption or seizure of property under the control of
any institution of higher education to prevent officials or students in
such institutions from engaging in their duties or pursuing their
studies; and

(6) No award shall be made under sections 173.200 to 173.230 to any
applicant who is enrolled, or who intends to use the award to enroll, in
a course of study leading to a degree in theology or divinity.

2. Financial assistance shall be allotted for one academic year, but a
recipient shall be eligible for renewed assistance until he has obtained
a baccalaureate degree, provided such financial assistance shall not
exceed a total of ten semesters or fifteen quarters or their equivalent.
Standards of eligibility for renewed assistance shall be the same as for
an initial award of financial assistance. (L. 1972 S.B. 613 § 4, A.L.
1979 H.B. 544, A.L. 1998 H.B. 1519 & 1165)

An applicant who is enrolled or has been accepted for enrollment
as an undergraduate postsecondary student at an approved private or
public institution after August 13, 1979, and who meets the other
eligibility criteria shall be entitled to financial assistance based
primarily on his financial need and to the extent of his financial need
as determined by the coordinating board, except that effective August 1,
1980, the amount of such grant shall not exceed the least of:

(1) The applicant's demonstrated financial need as determined by the
coordinating board; or

(2) One-half the tuition and mandatory fee charges in effect the prior
academic year at the approved institution the applicant plans to attend;
or

(3) Fifteen hundred dollars; and until that date the grant shall not
exceed the least of:

(1) The applicant's demonstrated financial need as determined by the
coordinating board; or

(2) One-half the fall 1971 tuition and mandatory fee charges at the
approved institution the applicant plans to attend; or

(3) Nine hundred dollars. (L. 1972 S.B. 613 § 5, A.L. 1979 H.B. 544)

If an applicant is granted financial assistance under any other
student aid program, public or private, the full amount of such aid shall
be reported to the coordinating board by the institution and the
recipient. (L. 1972 S.B. 613 § 6)

A recipient of financial assistance may transfer from one
approved public or private institution to another without losing his
eligibility for assistance under sections 173.200 to 173.230, but the
coordinating board shall make any necessary adjustments in the amount of
his award. If a recipient of financial assistance at any time withdraws
from an approved private or public institution so that under the rules
and regulations of that institution he is entitled to a refund of any
tuition, fees, or other charges, the institution shall pay the portion of
the refund to which he may be entitled attributable to the state grant
for that term to the coordinating board. (L. 1972 S.B. 613 § 7, A.L. 1979
H.B. 544)

1. As used in this section, unless the context clearly requires
otherwise, the following terms mean:

(1) "Board", the coordinating board for higher education;

(2) "Grant", the Vietnam veteran's survivors grant as established in this
section;

(3) "Institution of postsecondary education", any approved public or
private institution as defined in section 173.205;

(4) "Survivor", a child or spouse of a Vietnam veteran as defined in this
section;

(5) "Tuition", any tuition or incidental fee or both charged by an
institution of postsecondary education, as defined in this section, for
attendance at the institution by a student as a resident of this state;

(6) "Vietnam veteran", a person who served in the military in Vietnam or
the war zone in Southeast Asia and to whom the following criteria shall
apply:

(a) The veteran was a Missouri resident when first entering the military
service and at the time of death;

(b) The veteran's death was attributable to illness that could possibly
be a result of exposure to toxic chemicals during the Vietnam Conflict;
and

(c) The veteran served in the Vietnam theater between 1961 and 1972.

2. Within the limits of the amounts appropriated therefor, the
coordinating board for higher education shall award annually up to twelve
grants to survivors of Vietnam veterans to attend institutions of
postsecondary education in this state. If the waiting list of eligible
survivors exceeds fifty, the coordinating board may petition the general
assembly to expand the quota. If the quota is not expanded the
eligibility of survivors on the waiting list shall be extended.

3. A survivor may receive a grant pursuant to this section only so long
as the survivor is enrolled in a program leading to a certificate, or an
associate or baccalaureate degree. In no event shall a survivor receive a
grant beyond the completion of the first baccalaureate degree, regardless
of age. No survivor shall receive more than one hundred percent of
tuition when combined with similar funds made available to such survivor.

4. The coordinating board for higher education shall:

(1) Promulgate all necessary rules and regulations for the implementation
of this section;

(2) Determine minimum standards of performance in order for a survivor to
remain eligible to receive a grant under this program;

(3) Make available on behalf of a survivor an amount toward the
survivor's tuition which is equal to the grant to which the survivor is
entitled under the provisions of this section;

(4) Provide the forms and determine the procedures necessary for a
survivor to apply for and receive a grant under this program.

5. In order to be eligible to receive a grant pursuant to this section, a
survivor shall be certified as eligible by a Missouri state veterans
service officer. Such certification shall be made upon qualified medical
certification by a Veterans Administration medical authority that
exposure to toxic chemicals contributed to or was the cause of death of
the veteran, as defined in subsection 1 of this section.

6. A survivor who is enrolled or has been accepted for enrollment as an
undergraduate postsecondary student at an approved institution of
postsecondary education shall receive a grant in an amount not to exceed
the least of the following:

(1) The actual tuition, as defined in this section, charged at an
approved institution where the child is enrolled or accepted for
enrollment; or

(2) The average amount of tuition charged a Missouri resident at the
institutions identified in section 174.020*, RSMo, for attendance as a
full-time student, as defined in section 173.205.

7. A survivor who is a recipient of a grant may transfer from one
approved public or private institution of postsecondary education to
another without losing his entitlement under this section. The board
shall make necessary adjustments in the amount of the grant. If a grant
recipient at any time withdraws from the institution of postsecondary
education so that under the rules and regulations of that institution he
is entitled to a refund of any tuition, fees, or other charges, the
institution shall pay the portion of the refund to which he is entitled
attributable to the grant for that semester or similar grading period to
the board.

8. If a survivor is granted financial assistance under any other student
aid program, public or private, the full amount of such aid shall be
reported to the board by the institution and the eligible survivor.

9. Nothing in this section shall be construed as a promise or guarantee
that a person will be admitted to an institution of postsecondary
education or to a particular institution of postsecondary education, will
be allowed to continue to attend an institution of postsecondary
education after having been admitted, or will be graduated from an
institution of postsecondary education.

10. The benefits conferred by this section shall be available to any
academically qualified surviving children and spouses of Vietnam veterans
as defined in subsection 1 of this section, regardless of the survivor's
age, until December 31, 1995. After December 31, 1995, the benefits
conferred by this section shall not be available to such persons who are
twenty-five years of age or older, except spouses will remain eligible
until the fifth anniversary after the death of the veteran.

11. This section shall expire on December 31, 2015. (L. 1991 H.B. 51, et
al. § 3)

Expires 12-31-15

*Original rolls contain "section 174.030".

1. Any member of the Missouri national guard who possesses the
qualifications set forth in this section may be awarded an educational
assistance grant to an approved public institution or an approved private
institution, as those terms are defined in either section 173.205 or
section 173.778, of his or her choice while he or she is a member of the
Missouri national guard. Funding for educational assistance pursuant to
this section may be requested annually in the budget of the Missouri
national guard. Educational assistance provided pursuant to this section
shall not exceed funds appropriated for that purpose.

2. Educational assistance provided under this section shall not exceed
the least of the following:

(1) The actual tuition, as defined in section 173.260, charged at an
approved institution where the individual is enrolled or accepted for
enrollment; or

(2) The amount of tuition charged a Missouri resident at the University
of Missouri for attendance;

(3) The grants provided under this section may be prorated subject to
appropriations in an amount no less than fifty percent of the limits set
forth in this section.

3. A member of the Missouri national guard seeking educational assistance
pursuant to this section shall provide a certificate of satisfactory
service of his or her Missouri national guard duties from his or her
commanding officer and shall possess all other necessary entrance
requirements of the school of his or her choice and shall maintain a
cumulative grade point average (GPA) of at least two point five on a four
point scale, or the equivalent on another scale approved by the program
administrator, while attending the approved public or private institution.

4. If the grade point average of a member who is receiving educational
assistance pursuant to this section falls below two point five on a four
point scale, or the equivalent on another scale, such member shall retain
the educational assistance and shall be placed on probation under the
educational assistance program. Failure to achieve a current grade point
average of at least two point five on a four point scale, or the
equivalent on another scale for future semesters or equivalent academic
terms shall result in termination of the scholarship effective as of the
next academic term. The member shall be removed from probation status
upon achieving a cumulative grade point average of two point five on a
four point scale or the equivalent on another scale.

5. If a recipient of educational assistance pursuant to this section
ceases to maintain their military affiliation while enrolled in a course
of study or within three years after the completion of a course of study
for any reason except death, disability, or medical disqualification the
educational assistance shall be terminated and the recipient shall repay
any amounts awarded pursuant to this section. For the purposes of this
section, individuals who are called to active duty will be credited for
time served in fulfillment of their three-year obligation.

6. Applicants for educational assistance pursuant to this section shall
meet the qualifications established by section 173.215, except the
provisions of subdivisions (2) and (4) of subsection 1 of section
173.215, and shall be qualified, full-time or part-time students.

7. The educational assistance program established pursuant to this
section shall be administered by the office of the adjutant general of
the Missouri national guard. The Missouri national guard shall establish
guidelines for equitable distribution of educational assistance. (L. 1994
S.B. 583 § 1, A.L. 1995 S.B. 385, A.L. 1998 H.B. 1519 & 1165, A.L. 2000
S.B. 961, A.L. 2005 H.B. 437)

CROSS REFERENCE: Missouri national guard trust fund, disbursements for
scholarships, when, RSMo 41.214

1. Any recipient of a scholarship awarded under this chapter may
postpone attendance at an approved public or private institution and
enter Missouri national guard service or participate in Missouri national
guard programs for a period not to exceed two semesters without losing
eligibility for the scholarship; provided that the recipient returns to
attendance in the semester immediately after such service or
participation ends and no later than the semester immediately following
the end of the eligibility period established in this subsection.

2. To retain scholarship eligibility, the recipient shall:

(1) Notify the institution currently attended, or the institution to be
attended in the case of a new enrollment, prior to the beginning of the
first semester which the student will not attend the institution and for
which the student intends to retain scholarship eligibility under this
section;

(2) Provide to the institution, prior to the beginning of the semester
the recipient intends to return to attendance at the institution, a
certificate of satisfactory service or written confirmation of
participation from his or her commanding officer; and

(3) Comply with all other applicable scholarship eligibility requirements
established under law, rule or policy not in conflict with postponement
of attendance pursuant to subsection 1 of this section. (L. 1995 S.B. 207
merged with S.B. 385)

1. There is hereby established a "Higher Education Academic
Scholarship Program" and any moneys appropriated by the general assembly
for this program shall be used to provide scholarships for Missouri
citizens to attend a Missouri college or university of their choice
pursuant to the provisions of this section.

2. The definitions of terms set forth in section 173.205 shall be
applicable to such terms as used in this section. The term "academic
scholarship" means an amount of money paid by the state of Missouri to a
qualified college or university student who has demonstrated superior
academic achievement pursuant to the provisions of this section.

3. The coordinating board for higher education shall be the
administrative agency for the implementation of the program established
by this section, and shall:

(1) Promulgate reasonable rules and regulations for the exercise of its
functions and the effectuation of the purposes of this section, including
regulations for granting scholarship deferments;

(2) Prescribe the form and the time and method of awarding academic
scholarships, and shall supervise the processing thereof; and

(3) Select qualified recipients to receive academic scholarships, make
such awards of academic scholarships to qualified recipients and
determine the manner and method of payment to the recipient.

4. A student shall be eligible for initial or renewed academic
scholarship if he or she is in compliance with the eligibility
requirements set forth in section 173.215 excluding the requirement of
financial need and undergraduate status, and in addition meets the
following requirements:

(1) Initial academic scholarships shall be offered in the academic year
immediately following graduation from high school to Missouri high school
seniors whose composite scores on the American College Testing Program
(ACT) or the Scholastic Aptitude Test (SAT) of the College Board are in
the top three percent of all Missouri students taking those tests during
the school year in which the scholarship recipients graduate from high
school. In the freshman year of college, scholarship recipients are
required to maintain status as a full-time student;

(2) Academic scholarships are renewable if the recipient remains in
compliance with the applicable provisions of section 173.215 and the
recipient makes satisfactory academic degree progress as a full-time
student.

5. A student who is enrolled or has been accepted for enrollment as a
postsecondary student at an approved private or public institution
beginning with the fall, 1987, term and who meets the other eligibility
requirements for an academic scholarship shall, within the limits of the
funds appropriated and made available, be offered an academic scholarship
in the amount of two thousand dollars for the first academic year of
study, which scholarship shall be renewable in the amount of two thousand
dollars annually for the second, third and fourth academic years or as
long as the recipient is in compliance with the applicable eligibility
requirements set forth in section 173.215, provided those years of study
are continuous and the student continues to meet eligibility requirements
for the scholarship; provided, however, if a recipient ceases all
attendance at an approved public or private institution for the purpose
of providing service to a nonprofit organization, a state or federal
government agency or any branch of the armed forces of the United States,
the recipient shall be eligible for a renewal scholarship upon return to
any approved public or private institution, provided the recipient:

(1) Returns to full-time status within twenty-seven months;

(2) Provides verification in compliance with coordinating board for
higher education rules that the service to the nonprofit organization was
satisfactorily completed and was not compensated other than for expenses
or that the service to the state or federal governmental agency or branch
of the armed forces of the United States was satisfactorily completed; and

(3) Meets all other requirements established for eligibility to receive a
renewal scholarship.

6. A recipient of academic scholarship awarded under this section may
transfer from one approved Missouri public or private institution to
another without losing eligibility for the scholarship. If a recipient of
the scholarship at any time withdraws from an approved private or public
institution so that under the rules and regulations of that institution
he or she is entitled to a refund of any tuition, fees or other charges,
the institution shall pay the portion of the refund attributable to the
scholarship for that term to the coordinating board for higher education.

7. Other provisions of this section to the contrary notwithstanding, if a
recipient has been awarded an initial academic scholarship pursuant to
the provisions of this section but is unable to use the scholarship
during the first academic year because of illness, disability, pregnancy
or other medical need or if a recipient ceases all attendance at an
approved public or private institution because of illness, disability,
pregnancy or other medical need, the recipient shall be eligible for an
initial or renewal scholarship upon enrollment in or return to any
approved public or private institution, provided the recipient:

(1) Enrolls in or returns to full-time status within twenty-seven months;

(2) Provides verification in compliance with coordinating board for
higher education rules of sufficient medical evidence documenting an
illness, disability, pregnancy or other medical need of such person to
require that that person will not be able to use the initial or renewal
scholarship during the time period for which it was originally offered;
and

(3) Meets all other requirements established for eligibility to receive
an initial or a renewal scholarship. (L. 1986 H.B. 1356 § 1, A.L. 1988
H.B. 1456, A.L. 1990 H.B. 1141, A.L. 1990 H.B. 1142, A.L. 1991 H.B. 51,
et al.)

The interest earned prior to fiscal year 1985 on the state
guaranty student loan fund shall be used for the purpose of providing
moneys for student financial aids as determined by the general assembly
in the annual appropriation. (L. 1986 H.B. 1356 § 2 subsec. 2, A.L. 1988
H.B. 1456)

1. There is hereby established the "Kids' Chance Scholarship
Program", to provide scholarships for the children of workers who were
seriously injured or died in a work-related accident or occupational
disease covered by workers' compensation and compensable pursuant to
chapter 287, RSMo, to attend a college, university or accredited
vocational institution of their choice pursuant to the provisions of this
section.

2. The definitions of terms set forth in section 173.205 shall be
applicable to such terms as used in this section.

3. The department of higher education shall be the administrative agency
for the implementation of the program established by this section, and
shall:

(1) Promulgate reasonable rules for the exercise of its functions and the
effectuation of the purposes of this section;

(2) Prescribe the form and the time and method of awarding the
scholarships after reasonably considering the recommendations, if any, of
the board of directors of KIDS' CHANCE Inc. of Missouri, and shall
supervise the processing thereof; and

(3) Select qualified recipients to receive the scholarships, make such
awards of scholarships to qualified recipients and determine the use, the
manner and the method of payment to the recipient after reasonably
considering the recommendations, if any, of the board of directors of
KIDS' CHANCE Inc. of Missouri.

4. A student shall be eligible for an initial or renewed scholarship if,
at the time of application and throughout the period during which the
student is receiving such assistance, he or she is a part-time or
full-time student who:

(1) Is at least seventeen and not more than twenty-two years of age;

(2) Is a Missouri citizen;

(3) Is a child of an employee who was seriously injured or died in a
work-related accident or occupational disease covered by workers'
compensation and compensable pursuant to chapter 287, RSMo;

(4) Is enrolled, or has been accepted for enrollment, as a student in a
private or public institution in Missouri or an accredited vocational
institution in Missouri; and

(5) Establishes financial need.

5. A recipient of a scholarship awarded pursuant to the provisions of
this section may transfer from one public or private institution in
Missouri or accredited vocational institution in Missouri to another
without losing eligibility for the scholarship. If a recipient of the
scholarship at any time withdraws from a private or public institution in
Missouri or accredited vocational institution in Missouri so that under
the rules and regulations of that institution he or she is entitled to a
refund of any tuition, fees or other charges, the institution shall pay
the portion of the refund attributable to the scholarship for that term
to the department of higher education for deposit in this program.

6. The provisions of sections 173.254 to 173.258 shall only apply to
moneys received by the kids' chance scholarship fund or program pursuant
to section 173.258 and shall not apply to any moneys received by the
kids' chance scholarship fund or program from sources other than the
state.

7. Scholarships provided pursuant to the provisions of sections 173.254
to 173.258 shall not exceed the least of the following:

(1) The actual tuition, as defined in section 173.260, charged at an
approved institution pursuant to this section where the individual is
enrolled or accepted for enrollment; or

(2) The amount of tuition charged a Missouri resident at the University
of Missouri for attendance.

8. No rule or portion of a rule promulgated pursuant to the authority of
this section shall become effective unless it has been promulgated
pursuant to the provisions of chapter 536, RSMo. (L. 1998 H.B. 1237, et
al. § 3)

1. The department of higher education shall collect and
distribute funds for the kids' chance scholarship pursuant to section
173.254, however, the department shall not distribute the corpus provided
by section 173.258.

2. There is hereby created in the state treasury the "Kids' Chance
Scholarship Fund", which shall consist of all moneys deposited in the
fund pursuant to section 173.258 and all moneys which may be appropriated
to it by the general assembly, from federal or other sources, including
private donations. Upon termination of the fund, all moneys in the fund
shall be transferred for the use of the division of workers' compensation
for deposit in the fund created by virtue of section 287.690, RSMo.

3. The state treasurer shall administer the fund and credit all interest
to the fund and the moneys in the fund shall be used solely upon
appropriation by the department for the expenses of carrying out its
duties pursuant to this section.

4. Notwithstanding the provisions of section 33.080, RSMo, to the
contrary, moneys in the fund shall not revert to the credit of the
general revenue fund at the end of the biennium. (L. 1998 H.B. 1237, et
al. § 1)

The director of the division of workers' compensation shall
deposit fifty thousand dollars from the premium tax collected pursuant to
section 287.690, RSMo, on the second Monday in October of each year
beginning in 1999 until 2008 into the kids' chance scholarship fund. (L.
1998 H.B. 1237, et al. § 2)

1. As used in this section, unless the context clearly requires
otherwise, the following terms mean:

(1) "Board", the coordinating board for higher education;

(2) "Eligible child", the natural, adopted or stepchild of a public
safety officer or employee, as defined in this section, who is less than
twenty-four years of age and who is a dependent of a public safety
officer or employee or was a dependent at the time of death or permanent
and total disability of a public safety officer or employee;

(3) "Employee", any full-time employee of the department of
transportation engaged in the construction or maintenance of the state's
highways, roads and bridges;

(4) "Grant", the public safety officer or employee survivor grant as
established by this section;

(5) "Institution of postsecondary education", any approved public or
private institution as defined in section 173.205;

(6) "Line of duty", any action of a public safety officer, whose primary
function is crime control or reduction, enforcement of the criminal law,
or suppression of fires, is authorized or obligated by law, rule,
regulation or condition of employment or service to perform;

(7) "Public safety officer", any firefighter, police officer, capitol
police officer, parole officer, probation officer, state correctional
employee, water safety officer, park ranger, conservation officer or
highway patrolman employed by the state of Missouri or a political
subdivision thereof who is killed or permanently and totally disabled in
the line of duty;

(8) "Permanent and total disability", a disability which renders a person
unable to engage in any gainful work;

(9) "Spouse", the husband, wife, widow or widower of a public safety
officer or employee at the time of death or permanent and total
disability of such public safety officer;

(10) "Tuition", any tuition or incidental fee or both charged by an
institution of postsecondary education, as defined in this section, for
attendance at that institution by a student as a resident of this state.

2. Within the limits of the amounts appropriated therefor, the
coordinating board for higher education shall provide, as defined in this
section, a grant for either of the following to attend an institution of
postsecondary education:

(1) An eligible child of a public safety officer or employee killed or
permanently and totally disabled in the line of duty; or

(2) A spouse of a public safety officer killed or permanently and totally
disabled in the line of duty.

3. An eligible child or spouse may receive a grant under this section
only so long as the child or spouse is enrolled in a program leading to a
certificate, or an associate or baccalaureate degree. In no event shall a
child or spouse receive a grant beyond the completion of the first
baccalaureate degree or, in the case of a child, age twenty-four years,
except that the child may receive a grant through the completion of the
semester or similar grading period in which the child reaches his
twenty-fourth year. No child or spouse shall receive more than one
hundred percent of tuition when combined with similar funds made
available to such child or spouse.

4. The coordinating board for higher education shall:

(1) Promulgate all necessary rules and regulations for the implementation
of this section;

(2) Determine minimum standards of performance in order for a child or
spouse to remain eligible to receive a grant under this program;

(3) Make available on behalf of an eligible child or spouse an amount
toward the child's or spouse's tuition which is equal to the grant to
which the child or spouse is entitled under the provisions of this
section;

(4) Provide the forms and determine the procedures necessary for an
eligible child or spouse to apply for and receive a grant under this
program.

5. An eligible child or spouse who is enrolled or has been accepted for
enrollment as an undergraduate postsecondary student at an approved
institution of postsecondary education shall receive a grant in an amount
not to exceed the least of the following:

(1) The actual tuition, as defined in this section, charged at an
approved institution where the child or spouse is enrolled or accepted
for enrollment; or

(2) The amount of tuition charged a Missouri resident at the University
of Missouri for attendance as a full-time student, as defined in section
173.205.

6. An eligible child or spouse who is a recipient of a grant may transfer
from one approved public or private institution of postsecondary
education to another without losing his entitlement under this section.
The board shall make necessary adjustments in the amount of the grant. If
a grant recipient at anytime withdraws from the institution of
postsecondary education so that under the rules and regulations of that
institution he is entitled to a refund of any tuition, fees, or other
charges, the institution shall pay the portion of the refund to which he
is entitled attributable to the grant for that semester or similar
grading period to the board.

7. If an eligible child or spouse is granted financial assistance under
any other student aid program, public or private, the full amount of such
aid shall be reported to the board by the institution and the eligible
child or spouse.

8. Nothing in this section shall be construed as a promise or guarantee
that a person will be admitted to an institution of postsecondary
education or to a particular institution of postsecondary education, will
be allowed to continue to attend an institution of postsecondary
education after having been admitted, or will be graduated from an
institution of postsecondary education.

9. A public safety officer who is permanently and totally disabled shall
be eligible for a grant pursuant to the provisions of this section.

10. An eligible child of a public safety officer or employee, spouse of a
public safety officer or public safety officer shall cease to be eligible
for a grant pursuant to this section when such public safety officer or
employee is no longer permanently and totally disabled. (L. 1987 H.B. 487
§ 1, A.L. 1998 H.B. 1694)

1. There is hereby established the "Marguerite Ross Barnett
Competitiveness Scholarship Program", and any moneys appropriated by the
general assembly for this program shall be used to provide scholarships
for Missouri citizens to attend a Missouri college or university of their
choice pursuant to the provisions of this section.

2. The definitions of terms set forth in section 173.205 shall be
applicable to such terms as used in this section. The term
"competitiveness scholarship" means an amount of money paid by the state
of Missouri to a qualified college or university student pursuant to the
provisions of this section.

3. The coordinating board for higher education shall be the
administrative agency for the implementation of the program established
by this section, and shall:

(1) Promulgate reasonable rules and regulations for the exercise of its
functions and the effectuation of the purposes of this section;

(2) Prescribe the form and the time and method of awarding
competitiveness scholarships, and shall supervise the processing thereof;
and

(3) Select qualified recipients to receive competitiveness scholarships,
make such awards of competitiveness scholarships to qualified recipients
and determine the manner and method of payment to the recipient.

4. A student shall be eligible for initial or renewed competitiveness
scholarship if, at the time of his application and throughout the period
during which he is receiving such assistance, he is a part-time student
who:

(1) Is eighteen years of age or older;

(2) Is employed twenty hours or more per week;

(3) Is a citizen or a permanent resident of the United States;

(4) Is a resident of the state of Missouri, as determined by reference to
standards promulgated pursuant to section 173.140;

(5) Is enrolled, or has been accepted for enrollment, as a part-time
undergraduate student in an approved private or public institution; and

(6) Establishes financial need.

5. A recipient of competitiveness scholarship awarded under the
provisions of this section may transfer from one approved Missouri public
or private institution to another without losing eligibility for the
scholarship. If a recipient of the scholarship at any time withdraws from
an approved private or public institution so that under the rules and
regulations of that institution he is entitled to a refund of any
tuition, fees or other charges, the institution shall pay the portion of
the refund attributable to the scholarship for that term to the
coordinating board for higher education. (L. 1988 H.B. 1456 § 21, A.L.
1992 H.B. 1844)

CROSS REFERENCE: Access to higher education trust fund, definitions and
procedure, RSMo 166.200 to 166.242

There is hereby established as a pilot project the
"International Economic Development Exchange Program". The department of
economic development, with the advice of the advisory committee
established in section 173.265, shall administer the program, except that
the department shall administer the program without additional staff or
salary for such program. The program shall be established to encourage
international exchanges at industrial and commercial business enterprises
for students enrolled in institutions of higher education. Full-time
students who attend institutions of higher education in this state shall
be eligible for financial assistance to attend the student internship
exchange portion of the program in eligible countries other than the
United States. Priority shall be given to business internship exchange
programs of public and private institutions of higher education in this
state, where such programs have been in existence for at least ten
successive years prior to December 23, 1997. The program shall include an
inventory of the number of students involved in such programs, which
shall be maintained by the advisory committee. The program shall also
include the development of methods for fostering international trade
through exchange programs and through business and entrepreneurial
training programs. The program may include the provision of scholarships
and other financial assistance in cooperation with the federal
government, public and private institutions of higher education, and
businesses, to enable students and business people from eligible
countries to study and attend training programs in the United States. (L.
1997 2d Ex. Sess. S.B. 1 § 2 subsec. 1)

Effective 12-23-97

1. There is hereby created an "International Economic
Development Exchange Program Advisory Committee", which shall consist of
five members, to be appointed by the director of the department of
economic development. The committee shall include two persons associated
with institutions of higher education in this state and one resident
business person who deals with international business. Of the five
members, all shall be residents of the state, at least one member shall
be a resident of one of the two largest metropolitan areas of this state,
and at least one member shall not be a resident of one of the two largest
metropolitan areas of this state. The members shall serve three-year
terms. The committee shall meet only in Jefferson City. The committee
shall review the administration of the international economic development
exchange program by the department of economic development. The director
of the department of economic development shall make an annual report of
the program's activities to the governor, the speaker of the house of
representatives and the president pro tem of the senate. Members of the
committee shall serve without compensation but may be reimbursed for
ordinary and necessary expenses incurred in the performance of their
official duties.

2. The program may receive grants, loans and other funding from the
federal government and from private sources. In addition, the general
assembly may appropriate up to one hundred thousand dollars in each
fiscal year for the program; however, such appropriation shall not exceed
an amount equal to the amounts contributed to the program from
nongovernmental sources. (L. 1997 2d Ex. Sess. S.B. 1 § 2 subsecs. 2, 3)

Effective 12-23-97

1. There is hereby established the "Missouri Educational
Employees' Memorial Scholarship Program", and any moneys collected
pursuant to subsection 2 of this section for this program shall be used
to provide scholarships for the children of Missouri educational
employees who died while employed by a Missouri school district to attend
an undergraduate Missouri college or university of their choice pursuant
to the provisions of this section.

2. Any employee of a public school district may have a minimum amount of
one dollar withheld from such employee's paycheck to be donated to the
"Missouri Educational Employees' Memorial Scholarship Fund", which is
hereby created in the state treasury. The fund shall be used to provide
scholarships to eligible students pursuant to this section. All earnings
resulting from the investment of moneys in the fund shall be credited to
the fund. Notwithstanding the provisions of section 33.080, RSMo, to the
contrary, moneys in the fund shall not revert to the credit of the
general revenue fund at the end of the biennium. Moneys in the fund shall
not be a part of total state revenues for the purposes of article X of
the Missouri Constitution.

3. The definitions of terms set forth in section 173.205 shall be
applicable to such terms as used in this section.

4. The coordinating board for higher education shall be the
administrative agency for the implementation of the program established
by this section, and shall:

(1) Promulgate reasonable rules for the exercise of its functions and the
effectuation of the purposes of this section;

(2) Prescribe the form and the time and method of awarding the
scholarships, and shall supervise the processing thereof;

(3) Select qualified recipients to receive the scholarships, make such
awards of scholarships to qualified recipients and determine the manner
and method of payment to the recipient; and

(4) Operate the program in a manner designed to perpetuate the fund.

5. A student shall be eligible for an initial or renewed scholarship if,
at the time of application and throughout the period during which the
student is receiving such assistance, he or she is a part-time or
full-time student who:

(1) Is seventeen years of age or older;

(2) Is a citizen or a permanent resident of the United States;

(3) Is a resident of the state of Missouri, as determined by reference to
standards promulgated pursuant to section 173.140*, RSMo;

(4) Was the child or legal dependent of an educational employee of a
Missouri public school who was enrolled in and regularly contributing to
the program for at least one year and who died while employed by such
school district after August 28, 1999. Such one-year period shall not
apply to persons enrolled during the first year after August 28, 1999, or
to persons employed for less than one year;

(5) Is enrolled, or has been accepted for enrollment, as an undergraduate
student in an approved private or public institution; and

(6) Establishes financial need.

6. A recipient of a scholarship awarded pursuant to the provisions of
this section may transfer from one approved Missouri public or private
institution to another without losing eligibility for the scholarship. If
a recipient of the scholarship at any time withdraws from an approved
private or public institution so that under the rules and regulations of
that institution he or she is entitled to a refund of any tuition, fees
or other charges, the institution shall pay the portion of the refund
attributable to the scholarship for that term to the coordinating board
for higher education for deposit in this program. (L. 1999 H.B. 778 § 1)

*Section 173.140 was repealed by S.B. 583 § A, 1994.

1. As used in this section, the following terms shall mean:

(1) "Foreign government", any government other than the government of the
United States or any state or political subdivision of the United States;

(2) "Foreign legal entity", any legal entity created under the laws of:

(a) A foreign government; or

(b) The United States, or any state of the United States, if a majority
of the ownership of the stock of such legal entity is directly or
indirectly owned, legally or beneficially, by one or more foreign
governments, foreign persons, or legal entities created under the laws of
a foreign government, or if a majority of the membership of any such
entity is composed of foreign persons or legal entities created under the
laws of a foreign government. The term "foreign legal entity" shall
include agents of such entities;

(3) "Foreign person", any individual who is not a citizen or national of
the United States, or any trust territory or protectorate of the United
States. The term "foreign person" shall include agents of such persons;

(4) "Gift", any endowment, gift, grant, contract, award, or property of
any kind;

(5) "Institution of higher education" or "institution", the University of
Missouri, Lincoln University, the state colleges, junior colleges and
teachers' colleges.

2. Every institution of higher education shall disclose to the department
of higher education the amount, terms, restrictions, conditions, and
requirements attached to or made a part of any gift from any foreign
government, foreign legal entity, or foreign person which has a value of
one hundred thousand dollars or more, made to such institution of higher
education in any fiscal year if any term, restriction, condition or
requirement attached to or made a part of any such gift is a violation
of, or would cause the institution of higher education to be in violation
of, any federal or state law relating to discrimination on the basis of
race, creed, color, sex, age, marital status, ethnic background, or
religion. If any foreign government, foreign entity, or foreign person
makes more than one gift to any institution of higher education in any
fiscal year of such institution, such institution shall make the report
required by this subsection if the aggregate value of all gifts from any
one foreign government, foreign legal entity, or foreign person is one
hundred thousand dollars or more in such fiscal year.

3. The information to be furnished to the department of higher education
shall be forwarded to the department no later than thirty days after the
final day of the fiscal year of each institution of higher education, and
shall include:

(1) The amount of each gift and the date on which it was received by the
institution;

(2) When a gift is conditional, a matching gift, or designated for a
particular purpose, the full details of the conditions, matching
provisions or designation;

(3) In the case of a gift by a foreign government, the name of such
government;

(4) In the case of a gift by a foreign legal entity or foreign person,
the name of the foreign country in which such foreign legal entity or
foreign person is principally located or has his principal residence;

(5) The purpose for which the gift will be used; and

(6) The name of the foreign legal entity which made the gift if the gift:

(a) Contains conditions or restrictions regarding the control of
curricula, employment or termination of faculty members, admission of
students, or student fees and tuition; or

(b) Is contingent upon the agreement of the institution to take specific
public positions or actions, or to award honorary degrees.

4. All information disclosed and furnished to the department of higher
education under this section shall be deemed a public record under
sections 610.010 to 610.030, RSMo, and shall be made available by the
department to the general public for inspection, review and copying
during the department's normal business hours. (L. 1985 H.B. 524 § 1)

The Compact for Education is hereby entered into and enacted
into law with all jurisdictions legally joining therein, in the form
substantially as follows:

Article I

Purpose and Policy

A. It is the purpose of this compact to:

1. Establish and maintain close cooperation and understanding among the
executive, legislative, professional, educational and lay leadership on a
nationwide basis at the state and local levels.

2. Provide a forum for the discussion, development, crystallization and
recommendation of public policy alternatives in the field of education.

3. Provide a clearing house of information on matters relating to
educational problems and how they are being met in different places
throughout the nation, so that the executive and legislative branches of
state government and of local communities may have ready access to the
experience and record of the entire country, and so that both lay and
professional groups in the field of education may have additional avenues
for the sharing of experience and the interchange of ideas in the
formation of public policy in education.

4. Facilitate the improvement of state and local educational systems so
that all of them will be able to meet adequate and desirable goals in a
society which requires continuous qualitative and quantitative advance in
educational opportunities, methods and facilities.

B. It is the policy of this compact to encourage and promote local and
state initiative in the development, maintenance, improvement and
administration of educational systems and institutions in a manner which
will accord with the needs and advantages of diversity among localities
and states.

C. The party states recognize that each of them has an interest in the
quality and quantity of education furnished in each of the other states,
as well as in the excellence of its own educational systems and
institutions, because of the highly mobile character of individuals
within the nation, and because the products and services contributing to
the health, welfare and economic advancement of each state are supplied
in significant part by persons educated in other states.

Article II

State Defined

As used in this compact, "state" means a state, territory, or possession
of the United States, the District of Columbia, or the Commonwealth of
Puerto Rico.

Article III

The Commission

A. The Educational Commission of the States, hereinafter called "the
commission", is hereby established. The commission shall consist of seven
members representing each party state. One of such members shall be the
governor; two shall be members of the state legislature selected by its
respective houses and serving in such manner as the legislature may
determine; and four shall be appointed by and serve at the pleasure of
the governor, unless the laws of the state otherwise provide. If the laws
of a state prevent legislators from serving on the commission, six
members shall be appointed and serve at the pleasure of the governor,
unless the laws of the state otherwise provide. In addition to any other
principles or requirements which a state may establish for the
appointment and service of its members of the commission, the guiding
principle for the composition of the membership on the commission from
each party state shall be that the members representing such state shall,
by virtue of their training, experience, knowledge or affiliations be in
a position collectively to reflect broadly the interests of the state
government, higher education, the state education system, local
education, lay and professional, public and non-public educational
leadership. Of those appointees, one shall be the head of a state agency
or institution, designated by the governor, having responsibility for one
or more programs of public education. In addition to the members of the
commission representing the party states, there may be not to exceed ten
non-voting commissioners selected by the steering committee for terms of
one year. Such commissioners shall represent leading national
organizations of professional educators or persons concerned with
educational administration.

B. The members of the commission shall be entitled to one vote each on
the commission. No action of the commission shall be binding unless taken
at a meeting at which a majority of the total number of votes on the
commission are cast in favor thereof. Action of the commission shall be
only at a meeting at which a majority of the commissioners are present.
The commission shall meet at least once a year. In its bylaws, and
subject to such directions and limitations as may be contained therein,
the commission may delegate the exercise of any of its powers to the
steering committee or the executive director, except for the power to
approve budgets or requests for appropriations, the power to make policy
recommendations pursuant to Article IV and adoption of the annual report
pursuant to Article III(J).

C. The commission shall have a seal.

D. The commission shall elect annually, from among its members, a
chairman, who shall be a governor, a vice chairman and a treasurer. The
commission shall provide for the appointment of an executive director.
Such executive director shall serve at the pleasure of the commission,
and together with the treasurer and such other personnel as the
commission may deem appropriate shall be bonded in such amount as the
commission shall determine. The executive director shall be secretary.

E. Irrespective of the civil service, personnel or other merit system
laws of any of the party states, the executive director subject to the
approval of the steering committee shall appoint, remove or discharge
such personnel as may be necessary for the performance of the functions
of the commission, and shall fix the duties and compensation of such
personnel. The commission in its bylaws shall provide for the personnel
policies and programs of the commission.

F. The commission may borrow, accept or contract for the services of
personnel from any party jurisdiction, the United States, or any
subdivision or agency of the aforementioned governments, or from any
agency of two or more of the party jurisdictions or their subdivisions.

G. The commission may accept for any of its purposes and functions under
this compact any and all donations, and grants of money, equipment,
supplies, materials and services, conditional or otherwise, from any
state, the United States, or any other governmental agency, or from any
person, firm, association, foundation, or corporation, and may receive,
utilize and dispose of the same. Any donation or grant accepted by the
commission pursuant to this paragraph or services borrowed pursuant to
paragraph (F) of this article shall be reported in the annual report of
the commission. Such report shall include the nature, amount and
conditions, if any, of the donation, grant, or services borrowed, and the
identity of the donor or lender.

H. The commission may establish and maintain such facilities as may be
necessary for the transacting of its business. The commission may
acquire, hold, and convey real and personal property and any interest
therein.

I. The commission shall adopt bylaws for the conduct of its business and
shall have the power to amend and rescind these bylaws. The commission
shall publish its bylaws in convenient form and shall file a copy thereof
and a copy of any amendment thereto, with the appropriate agency or
officer in each of the party states.

J. The commission annually shall make to the governor and legislature of
each party state a report covering the activities of the commission for
the preceding year. The commission may make such additional reports as it
may deem desirable.

Article IV

Powers

In addition to authority conferred on the commission by other provisions
of the compact, the commission shall have authority to:

1. Collect, correlate, analyze and interpret information and data
concerning educational needs and resources.

2. Encourage and foster research in all aspects of education, but with
special reference to the desirable scope of instruction, organization,
administration, and instructional methods and standards employed or
suitable for employment in public educational systems.

3. Develop proposals for adequate financing of education as a whole and
at each of its many levels.

4. Conduct or participate in research of the types referred to in this
article in any instance where the commission finds that such research is
necessary for the advancement of the purposes and policies of this
compact, utilizing fully the resources of national associations, regional
compact organizations for higher education, and other agencies and
institutions, both public and private.

5. Formulate suggested policies and plans for the improvement of public
education as a whole or for any segment thereof, and make recommendations
with respect thereto available to the appropriate governmental units,
agencies and public officials.

6. Do such other things as may be necessary or incidental to the
administration of any of its authority or functions pursuant to this
compact.

Article V

Cooperation With Federal Government

A. If the laws of the United States specifically so provide, or if
administrative provision is made therefor within the federal government,
the United States may be represented on the commission by not to exceed
ten representatives. Any such representative or representatives of the
United States shall be appointed and serve in such manner as may be
provided by or pursuant to federal law, and may be drawn from any one or
more branches of the federal government, but no such representative shall
have a vote on the commission.

B. The commission may provide information and make recommendations to any
executive or legislative agency or officer of the federal government
concerning the common educational policies of the states, and may advise
with any such agencies or officers concerning any matter of mutual
interest.

Article VI

Committees

A. To assist in the expeditious conduct of its business when the full
commission is not meeting, the commission shall elect a steering
committee of thirty-two members which, subject to the provisions of this
compact and consistent with the policies of the commission, shall be
constituted and function as provided in the bylaws of the commission.
Eight of the voting membership of the steering committee shall consist of
governors, eight shall be legislators, and the remainder shall consist of
other members of the commission. A federal representative on the
commission may serve with the steering committee, but without vote. The
voting members of the steering committee shall serve for terms of two
years, except that members elected to the first steering committee of the
commission shall be elected as follows: sixteen for one year and sixteen
for two years. The chairman, vice chairman, and treasurer of the
commission shall be members of the steering committee and, anything in
this paragraph to the contrary notwithstanding, shall serve during their
continuance in these offices. Vacancies in the steering committee shall
not affect its authority to act, but the commission at its next regularly
ensuing meeting following the occurrence of any vacancy shall fill it for
the unexpired term. No person shall serve more than two terms as a member
of the steering committee; provided that service for a partial term of
one year or less shall not be counted toward the two term limitation.

B. The commission may establish advisory and technical committees
composed of state, local and federal officials, and private persons to
advise it with respect to any one or more of its functions. Any advisory
or technical committee may, on request of the states concerned, be
established to consider any matter of special concern to two or more of
the party states.

C. The commission may establish such additional committees as its bylaws
may provide.

Article VII

Finance

A. The commission shall advise the governor or designated officer or
officers of each party state of its budget and estimated expenditures for
such period as may be required by the laws of that party state. Each of
the commission's budgets of estimated expenditures shall contain specific
recommendations of the amount or amounts to be appropriated by each of
the party states.

B. The total amount of appropriation requests under any budget shall be
apportioned among the party states. In making such apportionment, the
commission shall devise and employ a formula which takes equitable
account of the populations and per capita income levels of the party
states.

C. The commission shall not pledge the credit of any party states. The
commission may meet any of its obligations in whole or in part with funds
available to it pursuant to Article III(G) of this compact, provided that
the commission takes specific action setting aside such funds prior to
incurring an obligation to be met in whole or in part in such manner.
Except where the commission makes use of funds available to it pursuant
to Article III(G) thereof, the commission shall not incur any obligation
prior to the allotment of funds by the party states adequate to meet the
same.

D. The commission shall keep accurate accounts of all receipts and
disbursements. The receipts and disbursements of the commission shall be
subject to the audit and accounting procedures established by its bylaws.
However, all receipts and disbursements of funds handled by the
commission shall be audited yearly by a qualified public accountant, and
the report of the audit shall be included in and become part of the
annual reports of the commission.

E. The accounts of the commission shall be open at any reasonable time
for inspection by duly constituted officers of the party states and by
any person authorized by the commission.

F. Nothing contained herein shall be construed to prevent commission
compliance with laws relating to audit or inspection of accounts by or on
behalf of any government contributing to the support of the commission.

Article VIII

Eligible Parties; Entry Into and Withdrawal

A. This compact shall have as eligible parties all states, territories,
and possessions of the United States, the District of Columbia, and the
Commonwealth of Puerto Rico. In respect of any such jurisdiction not
having a governor, the term "governor", as used in this compact, shall
mean the closest equivalent official of such jurisdiction.

B. Any state or other eligible jurisdiction may enter into this compact
and it shall become binding thereon when it has adopted the same;
provided that in order to enter into initial effect, adoption by at least
ten eligible party jurisdictions shall be required.

C. Adoption of the compact may be either by enactment thereof or by
adherence thereto by the governor; provided that in the absence of
enactment, adherence by the governor shall be sufficient to make his
state a party only until December 31, 1967. During any period when a
state is participating in this compact through gubernatorial action, the
governor shall appoint those persons who, in addition to himself, shall
serve as the members of the commission from his state, and shall provide
to the commission an equitable share of the financial support of the
commission from any source available to him.

D. Except for a withdrawal effective on December 31, 1967 in accordance
with paragraph C of this article, any party state may withdraw from this
compact by enacting a statute repealing the same, but no such withdrawal
shall take effect until one year after the governor of the withdrawing
state has given notice in writing of the withdrawal to the governors of
all other party states. No withdrawal shall affect any liability already
incurred by or chargeable to a party state prior to the time of such
withdrawal.

Article IX

Construction and Severability

This compact shall be liberally construed so as to effectuate the
purposes thereof. The provisions of this compact shall be severable and
if any phrase, clause, sentence or provision of this compact is declared
to be contrary to the constitution of any state or of the United States,
or the application thereof to any government, agency, person or
circumstance is held invalid, the validity of the remainder of this
compact and the applicability thereof to any government, agency, person
or circumstance shall not be affected thereby. If this compact shall be
held contrary to the constitution of any state participating therein, the
compact shall remain in full force and effect as to the state affected as
to all severable matters. (L. 1967 p. 273 § 1)

Pursuant to Article III(I) of the compact, the commission shall
file a copy of its bylaws and any amendment thereto with the secretary of
state. (L. 1967 p. 273 § 2)

The member of the house of representatives who serves on the
commission shall be selected by the speaker of the house, and the member
of the senate shall be selected by the president pro tem. Each
legislative member shall serve at the pleasure of the appointing power.
(L. 1967 p. 273 § 3)

The Missouri members of the commission shall receive no salary,
but shall be reimbursed for actual and necessary expenses. (L. 1967 p.
273 § 4)

This subchapter may be referred to and cited as the "Missouri
Higher Education Loan Authority Act". (L. 1981 H.B. 326)

As used in sections 173.350 to 173.450, the following terms mean:

(1) "Authority", the Missouri higher education loan authority;

(2) "Board", the Missouri coordinating board for higher education;

(3) "Bond resolution", any indenture, resolution or other financing
document pursuant to which revenue bonds, notes or other forms of
indebtedness of the authority are issued or secured;

(4) "Commissioner", the Missouri commissioner of higher education;

(5) "Department", the Missouri department of higher education;

(6) "Secondary education loans", loans or notes originated by banks,
other financial institutions, secondary education institutions or the
authority, the proceeds of which are to be used to pay tuition for
students enrolling for either junior or senior year at a secondary school
which is accredited in accordance with applicable state law. Such loans
shall be available only to the parents or guardians of those students who
undertake courses of instruction for which postsecondary school course
credit may be awarded. Loan proceeds will not be available for any
secondary school instruction which is sectarian in nature. (L. 1981 H.B.
326, A.L. 1994 S.B. 583, A.L. 2003 S.B. 371)

In order to assure that all eligible postsecondary education
students have access to student loans that are guaranteed or insured, or
both, there is hereby created a body politic and corporate to be known as
the "Higher Education Loan Authority of the State of Missouri". The
authority is hereby constituted a public instrumentality and body
corporate, and the exercise by the authority of the powers conferred by
sections 173.350 to 173.450 shall be deemed to be the performance of an
essential public function. The authority shall consist of seven members,
five of whom shall be appointed by the governor by and with the advice
and consent of the senate, each of whom shall be a resident of the state;
and a member of the coordinating board; and the commissioner of higher
education. In making appointments to the authority, the governor shall
take into consideration nominees recommended to him for appointment by
the chairman of the coordinating board. Two of the appointed members
shall be representatives of higher education institutions, one public and
one private, in Missouri, two of the appointed members shall be
representatives of lending institutions in Missouri, and one of the
appointed members shall be representative of the public. The members of
the authority first appointed by the governor shall be appointed to serve
for terms of one, two, three, four and five years, respectively, from the
date of appointment, or until their successors shall have been appointed
and shall have qualified. The initial term of each member is to be
designated by the governor at the time of making the appointment. Upon
the expiration of the initial terms of office, successor members shall be
appointed for terms of five years and shall serve until their successors
shall have been appointed and shall have qualified. Any member shall be
eligible for reappointment. The governor shall fill any vacancy in the
authority for the members he appoints for the remainder of the unexpired
term. Any member of the authority may be removed by the governor for
misfeasance, malfeasance, willful neglect of duty, or other cause after
notice and a public hearing unless the notice or hearing shall be
expressly waived in writing. (L. 1981 H.B. 326, A.L. 1994 S.B. 583)

Four members of the authority shall constitute a quorum for the
purpose of conducting business and exercising the powers of the
authority. Action may be taken by the authority upon the affirmative vote
of at least four of its members. Members may participate in a meeting by
means of conference telephone or similar communications equipment whereby
all persons participating in or attending the meeting can communicate
with each other, and participation in a meeting in this manner shall
constitute presence in person at the meeting for all purposes. Each
meeting of the authority for any purpose whatsoever shall be open to the
public. Notice of meetings shall be given as provided in the bylaws of
the authority. The proceedings and actions of the authority shall comply
with all statutory requirements respecting the conduct of public business
by a public agency. Members of the authority shall receive no
compensation for services but shall be entitled to reimbursement for
necessary expenses, including traveling and lodging expenses, incurred in
the discharge of their duties. Any payment for expenses shall be paid
from funds of the authority. (L. 1981 H.B. 326, A.L. 1994 S.B. 583)

1. The chairman of the coordinating board shall call and convene
the initial organizational meeting of the authority and shall serve as
its chairman pro tem. At the initial meeting and annually thereafter, the
authority shall elect one of its members as chairman and one as vice
chairman. In addition, at the initial meeting and annually thereafter,
the authority shall appoint a secretary and a treasurer either of whom
may be a member of the authority and, if not a member of the authority,
shall receive such compensation as shall be fixed from time to time by
action of the authority. The authority may appoint an executive director
who shall not be a member of the authority and who shall serve at its
pleasure. If an executive director is appointed, he shall receive such
compensation as shall be fixed from time to time by action of the
authority. The authority may designate the secretary to act in lieu of
the executive director. The secretary shall keep a record of the
proceedings of the authority and shall be the custodian of all books,
documents, and papers filed with the authority, the minute books or
journal thereof, and its official seal. The secretary may cause copies to
be made of all minutes and other records and documents of the authority
and may give certificates under the official seal of the authority to the
effect that the copies are true and correct copies, and all persons
dealing with the authority may rely on such certificates. The authority,
by resolution duly adopted, shall fix the powers and duties of its
executive director as it may from time to time deem proper and necessary.

2. The executive director, with approval of the authority, may hire such
additional employees as may be needed to carry out the functions and
purposes of the authority. These employees shall receive such
compensation as shall be fixed from time to time by action of the
authority. (L. 1981 H.B. 326)

Each member of the authority shall execute a surety bond in the
penal sum of fifty thousand dollars or, in lieu thereof, the chairman of
the authority shall execute a blanket bond covering each member and the
employees or other officers of the authority, each surety bond to be
conditioned upon the faithful performance of the duties of the office or
offices covered, to be executed by a surety company authorized to
transact business in this state as surety, and to be approved by the
attorney general and filed in the office of the secretary of state. The
cost of each such bond shall be paid by the authority. (L. 1981 H.B. 326)

Any other provision of the law to the contrary notwithstanding,
it shall not be or constitute a conflict of interest for a trustee,
director, officer, or employee of any educational institution, financial
institution, investment banking firm, brokerage firm, commercial bank or
trust company, or any other firm, person, or corporation to serve as a
member of the authority, provided such trustee, director, officer, or
employee shall abstain from deliberation, action, and vote by the
authority in each instance where the business affiliation of* any such
trustee, director, officer, or employee is involved. (L. 1981 H.B. 326)

*Original rolls contain word "or".

The authority shall have the following powers, together with all
powers incidental thereto or necessary for the performance thereof:

(1) To have perpetual succession as a body politic and corporate;

(2) To adopt bylaws for the regulation of its affairs and the conduct of
its business;

(3) To sue and be sued and to prosecute and defend, at law or in equity,
in any court having jurisdiction of the subject matter and of the parties;

(4) To have and to use a corporate seal and to alter the same at pleasure;

(5) To maintain an office at such place or places in the state of
Missouri as it may designate;

(6) To issue bonds or other forms of indebtedness to obtain funds to
purchase student loan notes or finance student loans, or both, including
those which are guaranteed under the provisions of sections 173.095 to
173.187, or under the provisions of the federal Higher Education Act of
1965, as amended, or secondary education loans, or scholarships which
have been converted to loans under the Missouri teacher education
scholarship program provided for in sections 160.276 to 160.283, RSMo.
Such bonds or other forms of indebtedness shall be payable from and
secured by a pledge of revenues derived from or by reason of the
ownership of student loan notes or financing of student loans, or both,
and investment income or shall be payable from and secured as may be
designated in a bond resolution authorized by the authority. Such bonds
or other forms of indebtedness shall not constitute a debt or liability
of the state of Missouri or of any political subdivision thereof;

(7) To cause proceeds of any bond or any other form of indebtedness to be
used to purchase student loan notes or finance student loans, or both,
including those which are guaranteed under section 173.110, or guaranteed
under the federal Higher Education Act of 1965, as amended, or secondary
education loans, or scholarships which have been converted to loans under
the Missouri teacher education scholarship program provided for in
sections 160.276 to 160.283, RSMo;

(8) To sell or enter into agreements to sell student loan notes acquired
pursuant to subdivision (7) of this section, and any agreement to sell
student loan notes guaranteed under section 173.110 shall be subject to
prior approval of the department. Such agreements to sell student loan
notes shall be limited only by the terms of the bond resolution
authorizing the issue of the bonds or other forms of indebtedness, but
shall not be limited by any other provision of law limiting the sale of
such student loan notes;

(9) To accept appropriations, gifts, grants, bequests, and devises and to
utilize or dispose of the same to carry out its purpose;

(10) To make and execute contracts, releases, compromises, and other
instruments necessary or convenient for the exercise of its powers, or to
carry out its purpose;

(11) To collect reasonable fees and charges in connection with making and
servicing its loans, notes, bonds, obligations, commitments, and other
evidences of indebtedness, and in connection with providing technical,
consultative and project assistant services. Such fees and charges shall
be used to pay the costs of the authority;

(12) To invest any funds not required for immediate disbursement in
obligations of the state of Missouri or of the United States government
or any instrumentality thereof, the principal and interest of which are
guaranteed by the state of Missouri, or the United States government or
any instrumentality thereof, or certificates of deposit or time deposits
of federally insured banks, or federally insured savings and loan
associations or of insured credit unions, or, with respect to moneys
pledged or held under a trust estate or otherwise available for the
owners of bonds or other forms of indebtedness, any investment authorized
under the bond resolution governing the security and payment of such
obligations or repurchase agreements for the specified investments;

(13) To acquire, hold and dispose of personal property for its purposes;

(14) To enter into agreements or other transactions with any federal or
state agency, any person and any domestic or foreign partnership,
corporation, association or organization;

(15) To take any necessary actions to be qualified to issue tax-exempt
bonds or other forms of tax-exempt indebtedness pursuant to the
applicable provisions of the Internal Revenue Code of 1986, as amended;

(16) To take any necessary actions to be qualified to issue bonds or
other forms of indebtedness, the interest on which is not exempt from
federal income taxation;

(17) To service student loans for any owner thereof, regardless of
whether such student loans are originated in this state or out of this
state. (L. 1981 H.B. 326, A.L. 1986 H.B. 1356, A.L. 1990 S.B. 740, A.L.
1994 S.B. 583, A.L. 2003 S.B. 371)

CROSS REFERENCE: Multinational banks, securities and obligations of,
investment in, when, RSMo 409.950

The authority shall not, under any circumstances, be the
originator of any federally guaranteed student loan, except for
consolidation of existing student loans, parent loans for undergraduate
students (PLUS), and upon designation by the commissioner as lender of
last resort. (L. 1988 H.B. 1456, A.L. 1994 S.B. 583, A.L. 2003 H.B. 221
merged with S.B. 346)

Bonds of the authority may be issued as serial bonds, as term
bonds, or as a combination of both types. All such bonds issued by the
authority shall be payable solely from and secured by a pledge of
revenues derived from or by reason of the ownership of student loan notes
and investment income or as may be designated in a bond resolution
authorized by the authority. Such bonds may be executed and delivered by
the authority at any time and from time to time, may be in such form and
denomination or denominations and of such terms and maturities, may be in
fully registered form or in bearer form, registrable either as to
principal or interest or both, may bear such conversion privileges, may
be payable in such installment or installments and at such time or times
not exceeding forty years from the date of the issuance thereof, may be
payable at such place or places whether within or without the state of
Missouri, may bear interest at such rate or rates per annum as determined
by the authority without regard to section 108.170, RSMo, may be made
payable at such time or times and at such place or places, may be
evidenced in such manner, may be executed by such officers of the
authority, may have attached thereto, in the case of bearer bonds or
bonds registrable as to principal only, interest coupons bearing the
facsimile signature of the secretary of the authority, and may contain
such provisions not inconsistent herewith, all as shall be provided in
the bond resolution or resolutions of the authority whereunder the bonds
shall be authorized to be issued. If deemed advisable by the authority,
there may be retained in the bond resolution under which any bonds of the
authority are authorized to be issued an option to call for redemption in
advance of maturity all or any part of such bonds as may be specified in
the bond resolution, at such price or prices, upon the giving of such
notice or notices, and upon such terms and conditions as may be set forth
in the bond resolution and as may be recited on the face of the bonds,
but nothing in this section shall be construed to confer upon the
authority the right or option to call for redemption in advance of
maturity any bonds except as may be provided in the bond resolution under
which they shall be issued. The bonds of the authority may be sold at
public or private sale for such price, in such manner, and from time to
time as may be determined by the authority notwithstanding the provisions
of section 108.170, RSMo, and the authority may pay all expenses,
premiums, and commissions which it may deem necessary or advantageous in
connection with the issuance thereof from the proceeds of the bonds.
Other forms of indebtedness issued by the authority shall have such terms
as may be provided in a bond resolution authorized by the authority. Any
such indebtedness may bear interest at such rates and be sold in such
manner as may be determined by the authority notwithstanding the
provisions of section 108.170, RSMo, and the authority may pay all
expenses, premiums and commissions which it may deem necessary or
advantageous in connection with the issuance thereof from proceeds
therefrom or from other funds of the authority. (L. 1981 H.B. 326, A.L.
1986 H.B. 1356, A.L. 1994 S.B. 583, A.L. 2003 H.B. 221 merged with S.B.
346)

Issuance by the authority of one or more series of bonds or
other forms of indebtedness shall not preclude it from issuing other
bonds or other forms of indebtedness in connection with the same purpose
or any other purpose hereunder, but the bond resolution whereunder any
subsequent bonds or other forms of indebtedness may be issued shall
recognize and protect any prior pledge made for any prior issue of bonds
or other forms of indebtedness. Any issue of bonds or other forms of
indebtedness of the authority at any time outstanding may be refunded at
any time and from time to time by the authority by the issuance of its
refunding bonds or other forms of indebtedness in such amount as the
authority may deem necessary, but not exceeding the amount sufficient to
refund the principal of the bonds or other forms of indebtedness so to be
refunded together with any unpaid interest thereon and any premiums,
commissions, service fees, and other expenses necessary to be paid in
connection with the refunding. Any such refunding may be effected whether
the bonds or other forms of indebtedness to be refunded then shall have
matured or thereafter shall mature, either by sale of the refunding bonds
or other forms of indebtedness and the application of the proceeds
thereof to the payment of the bonds or other forms of indebtedness being
refunded or by the exchange of the refunding bonds or other forms of
indebtedness for the bonds or other forms of indebtedness being refunded
with the consent of the holder or holders of the bonds or other forms of
indebtedness being refunded, regardless of whether or not the bonds or
other forms of indebtedness being refunded were issued for the same
purpose or any other purpose hereunder and regardless of whether or not
the bonds or other forms of indebtedness proposed to be refunded shall be
payable on the same date or different dates or shall be due serially or
otherwise. (L. 1981 H.B. 326, A.L. 1994 S.B. 583)

All bonds or other forms of indebtedness of the authority and
the interest coupons applicable thereto are hereby made and shall be
construed to be negotiable instruments. (L. 1981 H.B. 326, A.L. 1994 S.B.
583)

The principal of and interest on any bonds issued by the
authority shall be secured by a pledge of the revenues derived from or by
reason of the ownership of student loan notes and investment income or
such other funds as may be designated in a bond resolution authorized by
the authority. The bond resolution under which the bonds are authorized
to be issued may contain any agreements and provisions respecting the
purchase and sale of student loan notes or financing of student loans, or
both, the creation and maintenance of special funds from such revenues or
receipts, and the rights and remedies available in the event of default,
including the designation of a trustee, all as the authority shall deem
advisable and not in conflict with the provisions hereof. The principal
of and interest on any other form of indebtedness issued by the authority
shall be secured in such manner as may be set forth in the bond
resolution authorizing such indebtedness and such bond resolutions may
contain such other agreements and provisions as the authority may
determine. Each pledge, agreement, and indenture made for the benefit or
security of any of the bonds or other forms of indebtedness of the
authority shall continue effective until the principal of and interest
thereon for the benefit of which the same were made shall have been fully
paid or provisions for such payment duly made. In the event of a default
in the payment or in any agreement of the authority made as a part of the
bond resolution under which the bonds or other forms of indebtedness were
issued or secured, the payment or agreement may be enforced by suit,
mandamus, the appointment of a receiver in equity, or any one or more of
these remedies. (L. 1981 H.B. 326, A.L. 1994 S.B. 583)

Bonds or other forms of indebtedness issued under the provisions
of sections 173.350 to 173.450 shall not be deemed to constitute a debt
or liability of the state or of any political subdivision thereof or a
pledge of the full faith and credit of the state or of any such political
subdivision, but shall be payable solely from the funds provided for in
sections 173.350 to 173.450. The issuance of bonds or other forms of
indebtedness under the provisions of sections 173.350 to 173.450 shall
not, directly, indirectly, or contingently, obligate the state or any
political subdivision thereof to levy any form of taxation therefor or to
make any appropriation for their payment. Nothing in this section shall
be construed to authorize the authority to create a debt of the state
within the meaning of the constitution or statutes of the state of
Missouri, and each bond or other form of indebtedness issued by the
authority shall be payable and shall state on its face that it is payable
solely from the funds pledged for its payment in accordance with the bond
resolution authorizing its issuance. The state shall not be liable in any
event for the payment of the principal of or interest on any bonds of the
authority or for the performance of any pledge, mortgage, obligation, or
agreement of any kind whatsoever which may be undertaken by the
authority. No breach of any such pledge, mortgage, obligation, or
agreement may impose any pecuniary liability upon the state or any charge
upon the general credit or taxing power of the state. (L. 1981 H.B. 326,
A.L. 1994 S.B. 583)

The authority is hereby declared to be performing a public
function and to be a separate public instrumentality of the state.
Accordingly, the income of the authority and all properties at any time
owned by the authority shall be exempt from all taxation in the state of
Missouri. For the purposes of section 409.402, RSMo, all bonds or other
forms of indebtedness issued by the authority shall be deemed to be
securities issued by a separate public instrumentality of the state of
Missouri. (L. 1981 H.B. 326, A.L. 1994 S.B. 583)

All expenses of the authority incurred in carrying out the
provisions of sections 173.350 to 173.450 shall be payable solely from
funds provided under such sections, and no liability shall be incurred by
the authority beyond the extent to which moneys shall have been provided;
except that, for the purpose of meeting the necessary expenses of
operation until such date as the authority derives moneys from funds
provided hereunder, the authority shall be empowered to borrow such
moneys as may be required for the necessary expenses of operation, or to
receive advances from funds to be appropriated for this purpose by the
general assembly. The borrowed moneys shall be repaid or shall be
reimbursed to general revenue within a reasonable time after the
authority receives funds as provided in sections 173.350 to 173.450, and
shall be repaid solely from such funds. Nothing in sections 173.350 to
173.450 shall be construed as a restriction upon any powers which the
authority might otherwise have under any laws of this state, but shall be
construed as cumulative of any such powers. Nothing in these sections
shall be construed to deprive the state and its governmental subdivisions
of their respective powers over assets of the authority or to impair any
power thereof of any official or agency of the state and its governmental
subdivisions which otherwise may be provided by law. (L. 1981 H.B. 326)

The proceeds of all bonds or other forms of indebtedness issued
by the authority and of all fees permitted to be charged by the authority
and of other revenues derived shall not be considered to be part of the
revenue of the state within the meaning of article III, section 36, of
the Constitution of Missouri, shall not be required to be deposited into
the state treasury, and shall not be subject to appropriation by the
general assembly. The proceeds, fees, and revenue shall remain under the
exclusive control and management of the authority to be used as required
pursuant to sections 173.350 to 173.450. Student loan notes purchased or
financed shall not be considered to be public property. (L. 1981 H.B.
326, A.L. 1994 S.B. 583)

All banks, bankers, trust companies, savings banks and
institutions, building and loan associations, savings and loan
associations, investment companies, credit unions, insurance companies
and associations, and all executors, administrators, guardians, trustees,
and other fiduciaries legally may invest any sinking funds, moneys or
other funds belonging to them or within their control in any bonds issued
pursuant to sections 173.350 to 173.450. (L. 1981 H.B. 326)

The bonds and other forms of indebtedness issued under the
provisions of this act, the interest thereon, the proceeds received by a
holder from the sale thereof to the extent of the holder's cost of
acquisition, or proceeds received upon redemption prior to maturity or
proceeds received at maturity, and the receipt of such interest and
proceeds shall be exempt from taxation in the state of Missouri for all
purposes except the state estate tax. (L. 1981 H.B. 326, A.L. 1994 S.B.
583)

The higher education loan authority is assigned to the
department of higher education. The authority shall annually file with
the director of said department a report of its previous year's income,
expenditures and bonds or other forms of indebtedness issued and
outstanding. (L. 1981 H.B. 326, A.L. 1994 S.B. 583)

The state of Missouri shall promote research projects and
applied projects as defined by sections 173.500 to 173.565 which will
enhance employment opportunity, stimulate economic development and
encourage private investment. (L. 1982 H.B. 1375 § 1)

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