Senate
File
176
-
Introduced
SENATE
FILE
176
BY
FEENSTRA
A
BILL
FOR
An
Act
relating
to
state
student
assistance
for
students
1
enrolled
in
certain
postsecondary
institutions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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176
Section
1.
Section
261.2,
Code
2011,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
11.
Ensure
that
state
financial
aid
awarded
3
to
a
student
under
a
program
administered
by
the
commission
is
4
not
paid
to
any
for-profit
postsecondary
institution
under
any
5
program
administered
by
the
commission.
6
Sec.
2.
Section
261.9,
subsection
1,
paragraphs
b
and
c,
7
Code
2011,
are
amended
to
read
as
follows:
8
b.
Is
accredited
by
the
north
central
association
of
9
colleges
and
secondary
schools
accrediting
agency
based
10
on
their
requirements,
is
exempt
from
taxation
Qualifies
11
under
section
501(c)(3)
of
the
Internal
Revenue
Code
as
an
12
organization
exempt
from
taxation
,
and
annually
provides
a
13
matching
aggregate
amount
of
institutional
financial
aid
equal
14
to
at
least
seventy-five
percent
of
the
amount
received
in
a
15
fiscal
year
by
the
institution’s
students
for
Iowa
tuition
16
grant
assistance
under
this
chapter
.
Commencing
with
the
17
fiscal
year
beginning
July
1,
2006,
the
matching
aggregate
18
amount
of
institutional
financial
aid
shall
increase
by
the
19
percentage
of
increase
each
fiscal
year
of
funds
appropriated
20
for
Iowa
tuition
grants
under
section
261.25,
subsection
1
,
to
21
a
maximum
match
of
one
hundred
percent.
The
institution
shall
22
file
annual
reports
with
the
commission
prior
to
receipt
of
23
tuition
grant
moneys
under
this
chapter
.
An
institution
whose
24
income
is
not
exempt
from
taxation
under
section
501(c)
of
25
the
Internal
Revenue
Code
and
whose
students
were
eligible
to
26
receive
Iowa
tuition
grant
money
in
the
fiscal
year
beginning
27
July
1,
2003,
shall
meet
the
match
requirements
of
this
28
paragraph
no
later
than
June
30,
2005.
29
c.
Is
a
specialized
college
that
is
accredited
by
the
30
north
central
association
of
colleges
and
secondary
schools
31
accrediting
agency,
qualifies
under
section
501(c)(3)
of
the
32
Internal
Revenue
Code
as
an
organization
exempt
from
taxation,
33
and
which
offers
health
professional
programs
that
are
34
affiliated
with
health
care
systems
located
in
Iowa.
35
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176
Sec.
3.
Section
261.25,
subsections
2
and
6,
Code
2011,
are
1
amended
by
striking
the
subsections.
2
EXPLANATION
3
This
bill
makes
changes
relating
to
state
student
assistance
4
for
students
enrolled
in
certain
postsecondary
institutions.
5
The
bill
directs
the
college
student
aid
commission
to
6
ensure
that
state
financial
aid
awarded
to
a
student
under
7
a
program
administered
by
the
commission
is
not
paid
to
any
8
for-profit
postsecondary
institution.
9
The
bill
amends
language
defining
“accredited
private
10
institutions”
to
provide
that
such
institutions
that
offer
11
health
professional
programs
affiliated
with
Iowa-based
health
12
care
systems,
whose
students
are
eligible
for
Iowa
tuition
13
grants,
must
be
institutions
that
qualify
as
exempt
from
14
taxation
under
the
federal
Internal
Revenue
Code.
15
The
bill
also
strikes
standing
limited
appropriations
for
16
students
attending
certain
defined
for-profit
accredited
17
private
institutions
and
makes
conforming
changes.
18
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