HOUSE FILE 2095

BY  BYRNES, J. TAYLOR, MASCHER, HALL, and WINCKLER

A BILL FOR

An Act eliminating the grants for students attending for-profit accredited private institutions under the tuition grant program affecting the eligibility of such institutions to participate in other student and teacher assistance programs.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 261.9, subsection 1, paragraph b, Code Supplement 2011, is amended to read as follows:
   b.  Is accredited by the north central association of colleges and secondary schools accrediting agency based on their requirements, is exempt from taxation under section 501(c)(3) of the Internal Revenue Code, and annually provides a matching aggregate amount of institutional financial aid equal to at least seventy-five percent of the amount received in a fiscal year by the institution’s students for Iowa tuition grant assistance under this chapter. Commencing with the fiscal year beginning July 1, 2006, the matching aggregate amount of institutional financial aid shall increase by the percentage of increase each fiscal year of funds appropriated for Iowa tuition grants under section 261.25, subsection 1, to a maximum match of one hundred percent. The institution shall file annual reports with the commission prior to receipt of tuition grant moneys under this chapter. An institution whose income is not exempt from taxation under section 501(c) of the Internal Revenue Code and whose students were eligible to receive Iowa tuition grant money in the fiscal year beginning July 1, 2003, shall meet the match requirements of this paragraph no later than June 30, 2005.
    Sec. 2.  Section 261.25, subsections 2 and 5, Code Supplement 2011, are amended by striking the subsections.
EXPLANATION
   This bill eliminates the standing appropriation of $4 million from the general fund of the state for tuition grants for students attending for-profit accredited private postsecondary institutions, and eliminates, from a provision that defines “accredited private institution” for purposes of the tuition grant program, a requirement that a for-profit accredited private institution meet the tuition grant match requirements applicable to nonprofit institutions. 
   The definition of “accredited private institution”, which under the bill no longer includes for-profit accredited private institutions, is also used for purposes of the rules and procedures adopted by the state board of education or the college student aid commission for the approval of para-educator preparation programs offered by postsecondary institutions, waivers to grant temporary relief from state student assistance programs requirements in response to a national emergency, textbook notice requirements, chiropractic forgivable loans, the work-study program, the national guard educational assistance program, minority academic grants for academic success, the teacher shortage forgivable loan program, and the senior year plus program.