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5829S.02C
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SENATE COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 1207
AN ACT
To repeal sections 173.365, 173.445, and 173.831,
RSMo, and to enact in lieu thereof four new sections
relating to education.
Be it enacted by the General Assembly of the State of Missouri, as follows:
Section A. Sections 173.365, 173.445, and 173.831, RSMo,
are repealed and four new sections enacted in lieu thereof, to
be known as sections 162.192, 173.365, 173.445, and 173.831, to
read as follows:
162.192. 1. For purposes of this section, "financial
ledger" means a searchable, machine-readable, publicly
accessible database maintained by a school district or
charter school that:
(1) Sets forth all financial transactions conducted
with school district or charter school funds, including, but
not limited to, the school funds established pursuant to
section 165.011;
(2) Is available without login credentials,
registration, or fees;
(3) Is downloadable and exportable in formats
including, but not limited to, comma-separated values (CSV)
format and Microsoft Excel format;
(4) Records all transactions using Missouri financial
accounting manual classification categories, as applicable;
and
(5) Includes the following minimum required data
fields for each financial transaction, and is searchable and
filterable by such fields, at minimum:
(a) Transaction date;
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(b) Transaction amount;
(c) Revenue or expenditure designation;
(d) Fund code;
(e) Function code;
(f) Object code;
(g) Vendor or payee name; and
(h) Description or memo field.
2. Notwithstanding any provision of law to the
contrary, each school district and charter school shall
maintain a financial ledger on its publicly accessible
website. The homepage of each public or charter school's
website shall include a direct link to the financial ledger
of the school district or charter school that has oversight
responsibility for that public or charter school. The link
shall make the financial ledger accessible within one click,
shall be clearly labeled as a link to the school district's
or charter school's financial ledger, and shall be
functional and mobile-responsive. The department may
provide standardized language or icons that public and
charter schools may use for the purpose of ensuring
compliance with this subsection.
3. A school district's or charter school's financial
ledger shall be updated at least monthly. Details of each
calendar month's financial transactions shall be posted no
later than forty-five days after the close of that calendar
month.
4. For historical record keeping purposes, a school
district or charter school shall maintain complete financial
ledger data on its publicly accessible website for no fewer
than five prior fiscal years.
5. A school district or charter school may redact
protected personal information on the financial ledger only
to the extent required by applicable law. Vendor names,
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amounts, and accounting codes shall not be redacted.
Payroll data may be presented in aggregated form where
disclosure of individual information is restricted.
6. Debt obligations shall be posted in a separate
section of the financial ledger, with disclosure of the
following information:
(1) Outstanding debt balances;
(2) Issuance dates;
(3) Repayment schedules;
(4) Annual debt service amounts; and
(5) Debt service as a percentage of total expenditures.
7. The department may provide or approve standardized
templates or platforms a school district or charter school
may use to comply with the provisions of this section. A
school district or charter school may use a third-party
template or platform that is approved by the department.
8. The department may provide guidance to assist
school districts and charter schools in complying with the
provisions of this section. Such guidance may include:
(1) High-level expenditure summaries by classification
category under the Missouri financial accounting manual;
(2) Standardized definitions of terms to be used in
the financial ledger; and
(3) Clear explanations of methodology and limitations
applicable to the compilation and presentation of financial
ledger data.
9. School districts and charter schools shall annually
certify compliance with this section to the department. The
department shall promulgate rules establishing procedures
and timelines for school districts and charter schools to
certify compliance.
10. If the department finds that any school district
or charter school has violated a provision of this section,
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the department may withhold up to one percent of the state
aid to which the school district or charter school is
entitled under chapter 160 or 163 for the current school
year until the school district or charter school proves to
the satisfaction of the department that the school district
or charter school is no longer in violation of this section.
11. The department shall establish a process for
members of the public to file complaints with the department
if they believe a school district or charter school has
violated any provision of this section. The department may
establish a public compliance dashboard on the department's
website to enable members of the public to check whether a
particular school district or charter school is certified as
in compliance with the provisions of this section.
12. The department shall promulgate rules to implement
the provisions of this section. Any rule or portion of a
rule, as that term is defined in section 536.010, that is
created under the authority delegated in this section shall
become effective only if it complies with and is subject to
all of the provisions of chapter 536 and, if applicable,
section 536.028. This section and chapter 536 are
nonseverable and if any of the powers vested with the
general assembly pursuant to chapter 536 to review, to delay
the effective date, or to disapprove and annul a rule are
subsequently held unconstitutional, then the grant of
rulemaking authority and any rule proposed or adopted after
August 28, 2026, shall be invalid and void.
173.365. 1. 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
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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.
2. The authority shall observe the privacy and
confidentiality provisions of federal and state law in its
operations including the protection of financial information
and trade secrets. Notwithstanding any other provision of
law to the contrary, including chapters 109, 173, or 610:
(1) Public records may be closed by the authority to
the extent they relate in any way to student loan servicing
by the authority, including, but not limited to, records
pertaining to the performance of a student loan servicing
contract, payments made or received pursuant to such
contract, or business relationships or communications
related to operations or performance pursuant to such
contract, provided this closure shall not be applicable to
records requests by other Missouri governmental entities; and
(2) Nothing in subdivision (3) of subsection 1 of
section 173.385 shall be deemed be deemed to be a waiver of
any legal defense of the authority, including, but not
limited to, sovereign immunity in any of its forms.
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173.445. The higher education loan authority is
assigned to the department of higher education and workforce
development. The authority shall annually file with the
director of said department and with the joint committee on
education a report of its previous year's income,
expenditures and bonds or other forms of indebtedness issued
and outstanding.
173.831. 1. As used in this section, the following
terms mean:
(1) "Academic skill intake assessment", a criterion-
referenced assessment of numeracy and literacy skills with
high reliability and validity as determined by third-party
research;
(2) "Accredited", holding an active accreditation from
one of the seven United States regional accreditors
including, but not limited to, the Middle States Commission
on Higher Education, the New England Association of Schools
and Colleges, the Higher Learning Commission, the Northwest
Commission on Colleges and Universities, the Southern
Association of Colleges and Schools, the Western Association
of Schools and Colleges, and the Accrediting Commission for
Community and Junior Colleges, as well as any successor
entities or consolidations of the above including, but not
limited to, AdvancEd or Cognia;
(3) "Adult dropout recovery services" includes, but is
not limited to, sourcing, recruitment, and engagement of
eligible students, learning plan development, active
teaching, and proactive coaching and mentoring, resulting in
an accredited high school diploma and pathway to post
secondary education opportunities;
(4) "Approved program provider", a public, not-for-
profit, or other entity that meets the requirements of
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subdivision (2) of subsection 3 of this section or any
consortium of such entities;
(5) "Average cost per graduate", the amount of the
total program funding reimbursed to an approved program
provider for each cohort during the period of time from the
beginning of the same cohort through the subsequent twelve
months after the close of the same cohort, divided by the
total number of students who graduated from the same cohort
within twelve months after the close of the same cohort or
enrollment in postsecondary education;
(6) "Career pathways coursework", one or more courses
that align with the skill needs of industries in the economy
of the state or region that help an individual enter or
advance within a specific occupation or occupational cluster;
(7) "Career placement services", services designed to
assist students in obtaining employment, such as career
interest self-assessments and job search skills such as
resume development and mock interviews;
(8) "Coaching", proactive communication between the
approved program provider and the student related to the
student's pace and progress through the student's learning
plan;
(9) "Cohort", students who enter the program between
July first and June thirtieth of each program year;
(10) "Department", the department of elementary and
secondary education;
(11) "Employability skills certification", a
certificate earned by demonstrating professional
nontechnical skills through assessment, portfolio, or
observation;
(12) "Graduate", a student who has successfully
completed all of the state and approved program provider
requirements in order to obtain a high school diploma;
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(13) "Graduation rate", the total number of graduates
from a cohort who graduated within twelve months after the
close of the cohort divided by the total number of students
included in the same cohort;
(14) "Graduation requirements", course and credit
requirements for the approved program provider's accredited
high school diploma;
(15) "High school diploma", a diploma issued by an
accredited institution;
(16) "Industry-recognized credential", an education-
related credential or work-related credential that verifies
an individual's qualification or competence issued by a
third party with the relevant authority to issue such
credential;
(17) "Learning plan", a documented plan for courses or
credits needed for each individual in order to complete
program and approved program provider graduation
requirements;
(18) "Mentoring", a direct relationship between a
coach and a student to facilitate the completion of the
student's learning plan designed to prepare the student to
succeed in the program and the student's future endeavors;
(19) "Milestones", objective measures of progress for
which payment is made to an approved program provider under
this section such as earned units of high school credit,
attainment of an employability skills certificate,
attainment of an industry-recognized credential, attainment
of a technical skills assessment, and attainment of an
accredited high school diploma;
(20) "Program", the workforce diploma program
established in this section;
(21) "Request for qualifications", a request for
interested potential program providers to submit evidence
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that they meet the qualifications established in subsection
3 of this section;
(22) "Stackable credential", a third-party credential
that is part of a sequence of credentials that can be
accumulated over time to build up an individual's
qualifications to advance along a career pathway;
(23) "Student", a participant in the program
established in this section who is twenty-one years of age
or older, who is a resident of Missouri, and who has not yet
earned a high school diploma;
(24) "Technical skills assessment", a criterion-
referenced assessment of an individual's skills required for
an entry-level career, or additional training in a technical
field, or other postsecondary opportunities;
(25) "Transcript evaluation", a documented summary of
credits earned in previous public or private accredited high
schools compared with the program and approved program
provider graduation requirements;
(26) "Unit of high school credit", credit awarded
based on a student's demonstration that the student has
successfully met the content expectations for the credit
area as defined by subject area standards, expectations, or
guidelines.
2. There is hereby established the "Workforce Diploma
Program" within the department of elementary and secondary
education to assist students with obtaining a high school
diploma and developing employability and career technical
skills. The program may be delivered in campus-based,
blended, or online modalities.
3. (1) Before September 1, 2022, and annually
thereafter, the department shall issue a request for
qualifications for interested program providers to become
approved program providers and participate in the program.
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(2) Each approved program provider shall meet all of
the following qualifications:
(a) Be an accredited high school diploma-granting
entity;
(b) Have a minimum of two years of experience
providing adult dropout recovery services;
(c) Provide academic skill intake assessments and
transcript evaluations to each student. Such academic skill
intake assessments may be administered in person or online;
(d) Develop a learning plan for each student that
integrates graduation requirements and career goals;
(e) Provide a course catalog that includes all courses
necessary to meet graduation requirements;
(f) Offer remediation opportunities in literacy and
numeracy, as applicable;
(g) Offer employability skills certification, as
applicable;
(h) Offer career pathways coursework, as applicable;
(i) Ability to provide preparation for industry-
recognized credentials or stackable credentials, a technical
skills assessment, or a combination thereof; and
(j) Offer career placement services, as applicable.
(3) Upon confirmation by the department that an
interested program provider meets all of the qualifications
listed in subdivision (2) of this subsection, an interested
program provider shall become an approved program provider.
4. (1) The department shall announce the approved
program providers before October sixteenth annually, with
authorization for the approved program providers to begin
enrolling students before November fifteenth annually.
(2) Approved program providers shall maintain approval
without reapplying annually if the approved program provider
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has not been removed from the approved program provider list
under this section.
5. All approved program providers shall comply with
requirements as provided by the department to ensure:
(1) An accurate accounting of a student's accumulated
credits toward a high school diploma;
(2) An accurate accounting of credits necessary to
complete a high school diploma; and
(3) The provision of coursework aligned to the
academic performance standards of the state.
6. (1) Except as provided in subdivision (2) of this
subsection, the department shall pay an amount as set by the
department to approved program providers for the following
milestones provided by the approved program provider:
(a) Completion of each half unit of high school credit;
(b) Attainment of an employability skills
certification;
(c) Attainment of an industry-recognized credential,
technical skills assessment, or stackable credential
requiring no more than fifty hours of training;
(d) Attainment of an industry-recognized credential or
stackable credential requiring at least fifty-one but no
more than one hundred hours of training;
(e) Attainment of an industry-recognized credential or
stackable credential requiring more than one hundred hours
of training; and
(f) Attainment of an accredited high school diploma.
(2) No approved program provider shall receive funding
for a student under this section if the approved program
provider receives federal or state funding or private
tuition for that student. No approved program provider
shall charge student fees of any kind including, but not
limited to, textbook fees, tuition fees, lab fees, or
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participation fees unless the student chooses to obtain
additional education offered by the approved program
provider that is not included in the state-funded program.
(3) Payments made under this subsection shall be
subject to an appropriation made to the department for such
purposes.
7. (1) Approved program providers shall submit
monthly invoices to the department before the eleventh
calendar day of each month for milestones met in the
previous calendar month.
(2) The department shall pay approved program
providers in the order in which invoices are submitted until
all available funds are exhausted.
(3) The department shall provide a written update to
approved program providers by the last calendar day of each
month. The update shall include the aggregate total dollars
that have been paid to approved program providers to date
and the estimated number of enrollments still available for
the program year.
8. Before July sixteenth of each year, each provider
shall report the following metrics to the department for
each individual cohort, on a cohort-by-cohort basis:
(1) The total number of students who have been funded
through the program;
(2) The total number of credits earned;
(3) The total number of employability skills
certifications issued;
(4) The total number of industry-recognized
credentials, stackable credentials, and technical skills
assessments earned for each tier of funding;
(5) The total number of graduates;
(6) The average cost per graduate once the stipulated
time to make such a calculation has passed; and
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(7) The graduation rate once the stipulated time to
make such a calculation has passed.
9. (1) Before September sixteenth of each year, each
approved program provider shall conduct and submit to the
department the aggregate results of a survey of each
individual cohort, on a cohort-by-cohort basis, who
graduated from the program of the approved program provider
under this section. The survey shall be conducted in the
year after the year in which the individuals graduate and
the next four consecutive years.
(2) The survey shall include at least the following
data collection elements for each year the survey is
conducted:
(a) The individual's employment status, including
whether the individual is employed full time or part time;
(b) The individual's hourly wages;
(c) The individual's access to employer-sponsored
health care; and
(d) The individual's postsecondary enrollment status,
including whether the individual has completed a
postsecondary certificate or degree program.
10. (1) Beginning at the end of the second fiscal
year of the program, the department shall review data from
each approved program provider to ensure that each is
achieving minimum program performance standards including,
but not limited to:
(a) A minimum fifty percent average graduation rate
per cohort; and
(b) An average cost per graduate per cohort of seven
thousand dollars or less.
(2) Any approved program provider that fails to meet
the minimum program performance standards described in
subdivision (1) of this subsection shall be placed on
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probationary status for the remainder of the fiscal year by
the department.
(3) Any approved program provider that fails to meet
the minimum program performance standards described in
subdivision (1) of this subsection for two consecutive years
shall be removed from the approved program provider list by
the department.
11. (1) No approved program provider shall
discriminate against a student on the basis of race, color,
religion, national origin, ancestry, sex, sexuality, gender,
or age.
(2) If an approved program provider determines that a
student would be better served by participating in a
different program, the approved program provider may refer
the student to the state's adult basic education services.
12. (1) There is hereby created in the state treasury
the "Workforce Diploma Program Fund", which shall consist of
any grants, gifts, donations, bequests, or moneys
appropriated under this section. The state treasurer shall
be custodian of the fund. In accordance with sections
30.170 and 30.180, the state treasurer may approve
disbursements. The fund shall be a dedicated fund and, upon
appropriation, moneys in the fund shall be used solely as
provided in this section.
(2) Notwithstanding the provisions of section 33.080
to the contrary, any moneys remaining in the fund at the end
of the biennium shall not revert to the credit of the
general revenue fund.
(3) The state treasurer shall invest moneys in the
fund in the same manner as other funds are invested. Any
interest and moneys earned on such investments shall be
credited to the fund.
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13. The director of the department may promulgate all
necessary rules and regulations for the administration of
this section. Any rule or portion of a rule, as that term
is defined in section 536.010, that is created under the
authority delegated in this section shall become effective
only if it complies with and is subject to all of the
provisions of chapter 536 and, if applicable, section
536.028. This section and chapter 536 are nonseverable and
if any of the powers vested with the general assembly
pursuant to chapter 536 to review, to delay the effective
date, or to disapprove and annul a rule are subsequently
held unconstitutional, then the grant of rulemaking
authority and any rule proposed or adopted after August 28,
2022, shall be invalid and void.
14. [Under section 23.253 of the Missouri sunset act:
(1) The provisions of the new program authorized under
this section shall automatically sunset six years after
August 28, 2022, unless reauthorized by an act of the
general assembly; and
(2) If such program is reauthorized, the program
authorized under this section shall automatically sunset
twelve years after the effective date of the reauthorization
of this section; and
(3) This section shall terminate on September first of
the calendar year immediately following the calendar year in
which the program authorized under this section is sunset.
15.] If any provision of this section or its
application to any person or circumstance is held invalid,
such determination shall not affect the provisions or
applications of the remainder of this act which may be given
effect without the invalid provision or application, and to
that end the provisions of this section are severable.