MO HB173

Creates the Missouri Higher Education Savings Program administered by a board consisting of the state treasurer (chairman), commissioner of higher education, commissioner of office of administration, director of economic development, two finance/investment experts appointed by legislative leaders, and one banking expert appointed by the governor.

Grants the board authority to develop and implement the savings program as a qualified state tuition program under Internal Revenue Code Section 529, establish educational programs for participants, enter into agreements with financial institutions, and invest funds for long-term returns.

Removes restrictions on investment vehicles by allowing the board to invest in any investment vehicle that meets prudent person standards under section 105.688, rather than limiting investments to a specified grouping or list.

Establishes board member qualifications including four-year terms for appointed members, proxy voting provisions with a three-proxy limit on quorum, quarterly meetings, and conflict of interest compliance requirements.

Imposes fiduciary duties on board members and employees prohibiting profit from fund transactions, accepting gratuities to influence investment decisions, or conflicts of interest in investment transactions.