PURPOSE: This rule sets forth policies and procedures of the Coordinating Board for Higher Education regarding the certification of public and private institutions of higher education so that their full-time students may qualify for participation in the state’s Financial Assistance Program, established by sections 173.200–173.230, RSMo.

1. (1) Definitions.

   1. (A) Approved institution means an approved private institution or approved public institution.
   2. (B) Approved private institution means an educational institution as defined in section 173.205.2, RSMo.
   3. (C) Approved public institution means an educational institution as defined in section 173.205.3, RSMo.
   4. (D) Coordinating Board for Higher Education or CBHE means the Coordinating Board for Higher Education created by the Omnibus State Reorganization Act, Law 1974, p. 530.
   5. (E) Department of Higher Education or department means the Department of Higher Education created by the Omnibus State Reorganization Act, Law 1974, p. 530.
   6. (F) Student Financial Assistance Program and Financial Assistance Program means the program of financial assistance as set forth in sections 173.200—173.230, RSMo.

2. (2) Policy.

   1. (A) The CBHE is charged by statute to promulgate reasonable rules to effect the purposes of the state’s Student Financial Assistance Program. In establishing this rule of institutional eligibility, the CBHE is guided principally by the constitution of Missouri, the provisions of sections 173.205—173.230, RSMo and decisions of the Supreme Court of Missouri construing the sections and the Missouri Constitution and other pertinent statutory and constitutional provisions.
   2. (B) The CBHE will administer the Student Financial Assistance Program to assist financially qualified full-time students enrolled in an approved institution of higher education.

3. (3) Institutional Eligibility.

   1. (A) Approved Institutions. To be an approved private institution, an educational institution in the state, in addition to meeting other criteria set forth in section 173.205.2, RSMo, must be operated privately under the control of an independent board. To be an approved institution, an educational institution, in addition to meeting other criteria set forth in section 173.205.2, RSMo in the case of an approved private institution and section 173.205.3, RSMo in the case of an approved public institution, must be an educational institution which permits faculty members to select textbooks without influence or pressure by any source.

   2. (B) Condition Affecting Status of Independent Board of Private Institution. To be an approved private institution, an institution must be a nonprofit educational institution operated privately under the control of an independent board and not directly controlled or administered by any public agency or political subdivision, in addition to meeting other conditions referred to in subsection (3)(A). To qualify as an approved private institution for the purposes of this rule, an institution’s governing board must meet the following minimum criteria:

      1. 1. The governing board, under the gov-

erning instrument of the institution, shall possess and exercise final decision-making authority for the institution;

1. 2. The governing board shall be com-

posed of a number of members as fixed or provided for in the governing instrument of the institution, who shall serve for terms of definite duration;

1. 3. Each member of the governing board

shall be free to exercise judgment independently in the interests of the institution without being controlled in the exercise of judgment by any person or authority; and

1. 4. The members of the governing board

shall be immune from removal by any authority during their respective terms, except for cause. For purposes of this criterion, cause shall not include any reason based upon religious affiliation, including failure to follow the directives of any purported superior authority, religious or otherwise.

1. (C) Condition Affecting Textbook Selection. To be an approved institution, an institution must permit faculty members to select textbooks without influence or pressure by any source, in addition to meeting other conditions referred to in section (3). For the purposes of this criterion, the selection of textbooks within individual departments or schools by faculty curriculum committees shall not be considered inconsistent with the requirement that, to be an approved institution, the institution must permit faculty members to select textbooks without influence or pressure by any source. 6 CSR 10-2
2. (D) No educational institution offering a course of study leading only to a degree in theology or divinity shall be eligible to be certified under the rule as an approved institution.

1. (4) Procedures.

   1. (A) All institutions currently holding an approved institution status shall retain the status for a period of three (3) years (December 16, 1981), from the effective date of this rule (December 16, 1978), unless that status is terminated by operation of section (3) or subsection (4)(C).
   2. (B) Any institution not holding an approved institution status on December 16, 1978, in order for students attending the institution to be eligible to participate in the Student Financial Assistance Program, shall make application to the CBHE to be certified as an approved institution. Applications under this subsection for approved institution status shall be made on forms provided by the CBHE. Upon certification of an institution as an approved institution by the CBHE, the status of an approved institution shall continue for a period of three (3) years from the date of certification unless earlier terminated for changes in operation specified in section (3) or subsection (4)(C).
   3. (C) During a period in which an institution is certified as an approved institution, if a substantial change occurs in the governing structure of the institution, in the hiring policies of the institution pertaining to administration, faculty and staff, in the admissions policies of the institution, in the textbook selection procedures of the institution, in the level of programs or degrees offered by the institution, in the qualification for accreditation of the institution by the North Central Association of Colleges and Secondary Schools, in the institution’s record of compliance with lawfully promulgated CBHE policies and procedures or in any other matter affecting the criteria set forth in section 173.205.2 or 173.205.3, RSMo, the CBHE may consider whether to terminate the institution’s approved status because of this change. Whenever any such change shall occur, the institution shall notify the CBHE in writing within thirty (30) days after the change occurs. The CBHE, before it makes a decision on the status of an approved institution, at its own discretion, may hold one (1) or more public hearings under the procedures set forth in subsection (4)(G) of this rule.
   4. (D) In the event the approved institution status of an institution is terminated before the expiration of the three (3)-year term, the institution, after that, may apply to the CBHE for recertification on forms provided by the CBHE.
   5. (E) An approved institution, if it desires to continue its status as an approved institution, may apply for renewal of its approved institution status by filing an application for recertification as an approved institution at least sixty (60) days prior to the normal expiration of a certification period. An application for recertification as an approved institution shall be made to the CBHE on forms provided by the department.
   6. (F) Upon receipt of a completed institutional application form, the CBHE may certify or recertify the institution as an approved institution, or deny certification as an approved institution. The CBHE may base its decision on the information submitted by the institution, on the institution’s record of compliance with CBHE policies and procedures, and on any other information that the CBHE deems reliable. The CBHE, at its own discretion, may hold one (1) or more public hearing(s) regarding the merits of the application.
   7. (G) In the event the CBHE requires a hearing to be held, the CBHE shall so advise the institution within a reasonable amount of time. The advice to the institution shall state the time and place of the hearing and the issues of concern to the CBHE. The institution shall publish conspicuous notices of the hearing in its buildings and on its grounds, in areas accessible to staff, faculty and students, which notices shall set forth that the hearing is to be held, its date, time, location and purpose, the telephone number and mailing address of the Commissioner of Higher Education at the Department of Higher Education and advice that comments concerning the issues identified by the CBHE may be communicated to the Commissioner of Higher Education.
   8. (H) The decision to certify, recertify, decertify or reject initial certification of an institution as an approved institution shall rest solely within the discretion of the CBHE.

AUTHORITY: section 173.210, RSMo (1994).* Original rule filed June 9, 1978, effective Dec. 16, 1978. Amended: Filed Dec. 15, 1988, effective April 1, 1989. *Original authority 1972, amended 1979.