Senate
Study
Bill
3167
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
EDUCATION/COLLEGE
STUDENT
AID
COMMISSION
BILL)
A
BILL
FOR
An
Act
concerning
oversight
of
schools
offering
postsecondary
1
educational
programs
by
the
college
student
aid
commission
2
and
making
penalties
applicable.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5342DP
(9)
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H.F.
_____
DIVISION
I
1
POSTSECONDARY
REGISTRATION
——
REQUIREMENTS
2
Section
1.
Section
261B.2,
Code
2011,
is
amended
to
read
as
3
follows:
4
261B.2
Definitions.
5
As
used
in
this
chapter
,
unless
the
context
otherwise
6
requires:
7
1.
“Commission”
means
the
college
student
aid
commission
8
created
pursuant
to
section
261.1
.
9
2.
“Course
of
instruction”
means
a
postsecondary
educational
10
program
that
a
school
offers
through
in-person
instruction,
11
distance
delivery,
correspondence
study
methods,
or
any
12
combination
thereof.
13
2.
3.
“Degree”
means
a
postsecondary
credential
conferring
14
on
the
recipient
the
title
of
associate,
bachelor,
master,
15
or
doctor,
or
an
equivalent
title,
signifying
educational
16
attainment
based
on
any
one
or
a
combination
of
study
or
17
the
equivalent
which
may
be
supplemented
by
experience
or
18
achievement
testing.
A
postsecondary
degree
under
this
chapter
19
shall
not
include
an
honorary
degree
or
other
unearned
degree.
20
3.
4.
“Presence”
means
maintaining
an
address
within
Iowa
21
a
location
in
Iowa
at
which
a
student
participates
in
any
22
structured
activity
related
to
a
school’s
distance
education
23
course
of
instruction,
with
the
exception
of
proctored
24
examinations.
“Presence”
also
means
an
address,
location,
25
telephone
number,
or
internet
protocol
address
in
Iowa
from
26
which
a
school
conducts
any
aspect
of
its
operations.
For
the
27
purpose
of
a
residential
course
of
instruction
offered
on
a
28
school’s
campus
that
is
not
located
in
Iowa,
“presence”
does
not
29
include:
30
a.
Occasional,
short-term
activities
conducted
at
a
location
31
in
Iowa
for
the
purpose
of
recruiting
students
for
the
school’s
32
residential
course
of
instruction.
33
b.
A
residency,
practicum,
internship,
clinical,
or
34
similar
experience
that
the
school
permits
the
student
to
35
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participate
in
at
a
location
in
Iowa,
provided
that
a
person
1
who
provides
instruction
or
supervision
at
the
Iowa
location
is
2
not
compensated
by
the
school
.
3
4.
5.
“School”
means
an
agency
of
the
state
or
political
4
subdivision
of
the
state,
individual,
partnership,
company,
5
firm,
society,
trust,
association,
corporation,
or
any
6
combination
which
meets
any
of
the
following
criteria:
7
a.
Is,
owns,
or
operates
a
nonprofit
postsecondary
8
educational
institution.
9
b.
Provides
a
postsecondary
instructional
program
or
course
10
of
instruction
leading
to
a
degree.
11
c.
Uses
in
its
name
the
term
“college”
,
“academy”
,
12
“institute”
,
or
“university”
or
a
similar
term
to
imply
that
the
13
person
is
primarily
engaged
in
the
education
of
students
at
the
14
postsecondary
level,
and
which
makes
a
charge
for
its
services.
15
5.
6.
“Student”
means
a
person
who
enrolls
in
or
seeks
to
16
enroll
in
a
course
of
instruction
offered
or
conducted
by
a
17
school.
18
Sec.
2.
Section
261B.3,
Code
2011,
is
amended
to
read
as
19
follows:
20
261B.3
Registration.
21
1.
Except
as
provided
in
section
261B.11
,
a
school
that
22
maintains
or
shall
register
with
the
commission
if
a
person
23
compensated
by
the
school
conducts
one
or
more
courses
any
24
portion
of
a
course
of
instruction
,
including
courses
of
25
instruction
by
correspondence
or
other
distance
delivery
26
method,
offered
in
this
state
or
which
if
the
school
otherwise
27
has
a
presence
in
this
state
and
offers
courses
in
other
states
28
or
foreign
countries
shall
register
with
the
commission
.
29
a.
Registrations
shall
be
renewed
every
four
two
years
30
or
and
shall
be
amended
upon
any
substantive
change
in
31
location
,
program
offering,
or
accreditation.
A
school
makes
32
a
substantive
change
in
a
program
offering
when
the
school
33
proposes
to
offer
or
modify
a
program
that
requires
the
34
approval
of
the
state
board
of
education
or
any
other
state
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agency
authorized
to
approve
the
school
or
its
program
in
this
1
state.
2
b.
Registration
shall
be
made
on
application
forms
approved
3
and
supplied
made
available
by
the
commission
and
at
the
time
4
and
in
the
manner
prescribed
by
the
commission.
Upon
receipt
5
of
a
complete
and
accurate
registration
application,
the
6
commission
shall
issue
an
acknowledgment
of
document
filed
and
7
send
it
to
the
school.
8
2.
The
commission
may
request
require
a
school
to
provide
9
additional
information
as
the
commission
deems
necessary
10
to
enable
the
commission
to
determine
the
accuracy
and
11
completeness
of
the
information
contained
in
the
evaluate
a
12
school’s
suitability
for
registration
application
.
13
3.
The
commission
shall
notify
a
school
in
writing
of
its
14
decision
to
grant
or
deny
registration
and
any
stipulation
15
associated
with
the
school’s
registration.
16
4.
If
a
school
fails
to
meet
any
of
the
registration
17
criteria,
or
if
the
commission
believes
that
false,
misleading,
18
or
incomplete
information
has
been
submitted
in
connection
19
with
an
application
for
registration,
the
commission
may
20
deny
registration.
The
commission
shall
conduct
a
hearing
21
on
the
denial
if
a
hearing
is
requested
by
a
school.
The
22
commission
may
withhold
an
acknowledgment
of
document
filed
23
pending
the
outcome
of
the
hearing.
Upon
a
finding
after
the
24
hearing
that
the
school
fails
to
meet
any
of
the
registration
25
criteria,
or
that
information
contained
in
the
registration
26
application
is
false,
misleading,
or
incomplete,
the
commission
27
shall
deny
an
acknowledgment
of
document
filed
to
the
school
28
registration
.
The
commission
shall
make
the
final
decision
on
29
each
registration.
However,
the
decision
of
the
commission
is
30
subject
to
judicial
review
in
accordance
with
section
17A.19
.
31
3.
5.
The
commission
shall
adopt
rules
under
chapter
17A
32
for
the
implementation
of
this
chapter
.
33
Sec.
3.
Section
261B.3A,
Code
2011,
is
amended
to
read
as
34
follows:
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261B.3A
Requirements.
1
1.
In
order
to
register,
a
school
shall
be
accredited
2
by
an
agency
or
organization
approved
or
recognized
by
the
3
United
States
department
of
education
or
a
successor
agency,
4
be
approved
by
any
other
state
agency
authorized
to
approve
5
the
school
in
this
state,
and,
subsequently,
be
approved
for
6
operation
by
the
commission.
7
2.
A
practitioner
preparation
program
,
as
defined
in
8
section
272.1,
operated
by
a
school
that
applies
to
register
9
the
program
in
accordance
with
this
chapter
shall,
in
order
to
10
register,
be
accredited
by
an
agency
or
organization
approved
11
or
recognized
by
the
United
States
department
of
education
or
a
12
successor
agency,
be
approved
by
the
state
board
of
education
13
pursuant
to
section
256.7,
subsection
3
,
and,
subsequently,
be
14
approved
for
operation
by
the
commission.
15
3.
The
commission
may
grant
a
provisional
registration
to
16
a
school
that
is
not
accredited
by
an
agency
or
organization
17
that
is
recognized
by
the
United
States
department
of
education
18
or
its
successor
agency.
The
commission
shall
determine
19
the
duration
of
the
provisional
registration.
During
the
20
provisional
registration
period,
the
school
shall,
at
six-month
21
intervals,
submit
to
the
commission
documentation
of
its
22
progress
toward
achieving
accreditation.
The
commission
may
23
renew
the
school’s
provisional
registration
at
its
discretion
24
if
the
documentation
submitted
indicates
that
the
school
is
25
making
progress
toward
accreditation.
26
3.
4.
Nothing
in
this
chapter
shall
be
construed
to
exempt
27
a
school
from
the
requirements
of
chapter
490
,
or
491
,
or
714
.
28
Sec.
4.
Section
261B.4,
Code
2011,
is
amended
to
read
as
29
follows:
30
261B.4
Registration
information.
31
As
a
basis
for
registration,
schools
shall
provide
the
32
commission
with
the
following
information:
33
1.
The
name
or
title
of
the
school.
34
2.
The
As
applicable,
the
principal
location
of
the
school
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in
this
state,
in
other
states,
and
in
foreign
countries,
and
1
the
location
of
the
place
or
places
in
this
state,
in
other
2
states,
and
in
foreign
countries
where
instruction
is
likely
3
to
be
given.
4
3.
A
schedule
of
the
total
tuition
charges,
fees,
and
other
5
costs
payable
to
the
school
by
a
student
during
the
course
of
6
instruction
.
7
4.
The
refund
policy
of
the
school
for
the
return
of
8
refundable
portions
of
tuition,
fees,
or
other
charges.
9
The
tuition
refund
policy
for
Iowa
resident
students
of
a
10
for-profit
school
with
at
least
one
program
of
more
than
11
four
months
in
length
that
leads
to
a
recognized
educational
12
credential,
such
as
an
academic
or
professional
degree,
13
diploma,
or
license,
must
comply
with
section
714.23.
14
5.
The
degrees
granted
by
the
school.
15
6.
5.
The
names
and
addresses
of
the
principal
owners
of
16
the
school
or
the
officers
and
members
of
the
legal
governing
17
body
of
the
school.
18
7.
6.
The
name
and
address
of
the
chief
executive
officer
19
of
the
school.
20
8.
7.
A
copy
of
or
a
description
of
the
means
by
which
the
21
school
intends
to
comply
with
section
261B.9
.
22
9.
8.
The
name
of
the
accrediting
agency
recognized
by
the
23
United
States
department
of
education
or
a
successor
agency
24
which
has
accredited
the
school
,
and
the
status
under
which
25
accreditation
is
held
,
the
name
of
any
other
accrediting
or
26
licensing
entity
that
has
accredited
or
licensed
the
school
or
27
its
programs,
a
copy
of
the
accrediting
or
licensure
notice
28
issued
by
the
entity,
and
a
record
of
any
sanctions
the
entity
29
has
levied
against
the
school
.
30
10.
9.
The
name,
address,
and
telephone
number
of
a
contact
31
person
in
this
state.
A
school
that
applies
for
registration
32
to
offer
a
course
of
instruction
by
distance
delivery
may
33
provide
the
name
and
address
of
its
registered
agent
in
Iowa.
34
11.
10.
The
names
or
titles
and
a
description
of
the
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courses
and
degrees
to
be
offered
in
Iowa
.
1
12.
11.
A
description
of
procedures
for
the
preservation
2
of
student
records
and
the
contact
information
to
be
used
3
by
students
and
graduates
who
seek
to
obtain
transcript
4
information
.
5
13.
12.
The
academic
and
instructional
methodologies
and
6
delivery
systems
to
be
used
by
the
school
and
the
extent
to
7
which
the
school
anticipates
each
methodology
and
delivery
8
system
will
be
used,
including
,
but
not
limited
to
,
classroom
9
instruction,
correspondence,
electronic
telecommunications
10
distance
delivery
,
independent
study,
and
portfolio
experience
11
evaluation.
12
13.
The
name,
title,
business
address,
telephone
number,
13
and
resume
of
an
Iowa
resident
compensated
by
the
school
to
14
perform
duties
at
a
location
in
Iowa.
A
school
that
applies
15
for
registration
to
offer
a
course
of
instruction
by
distance
16
delivery
may
provide
an
internet
address
as
the
business
17
address
for
an
Iowa
resident
it
compensates
to
perform
duties
18
remotely
from
a
location
in
Iowa.
19
14.
The
school’s
official
Stafford
loan
cohort
default
rate
20
as
calculated
by
the
United
States
department
of
education
for
21
the
three
most
recent
federal
fiscal
years,
if
applicable.
22
15.
Average
student
loan
debt
upon
graduation
of
students
23
completing
programs
at
the
school.
24
16.
The
graduation
rate
of
undergraduate
students
as
25
reported
to
the
United
States
department
of
education.
26
17.
Evidence
that
the
school
meets
the
conditions
of
27
financial
responsibility
established
in
section
714.18,
or
that
28
the
school
qualifies
for
an
exemption
under
section
714.19
or
29
714.22.
30
Sec.
5.
Section
261B.7,
Code
2011,
is
amended
to
read
as
31
follows:
32
261B.7
Unauthorized
representation.
33
Neither
a
A
school
nor
its
or
a
school’s
officials
or
34
employees
shall
not
advertise
or
represent
that
the
school
is
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approved
or
accredited
by
the
commission
or
the
state
of
Iowa
1
nor
shall
it
use
the
registration
as
a
.
However,
a
registered
2
school
shall
reference
in
promotional
materials
that
the
school
3
is
registered
by
the
commission
on
behalf
of
the
state
of
Iowa
4
and
provide
the
commission’s
contact
information
for
students
5
who
wish
to
inquire
about
the
school
or
file
a
complaint
.
6
Sec.
6.
Section
261B.9,
subsection
5,
Code
2011,
is
amended
7
to
read
as
follows:
8
5.
Whether
the
postsecondary
credential
or
certificate
9
issued,
awarded,
or
credited
to
a
student
upon
completion
10
of
the
course
or
the
fact
of
completion
of
the
course
is
11
applicable
toward
a
degree
granted
by
the
school
and,
if
so,
12
under
what
circumstances
the
application
will
be
made.
13
Sec.
7.
Section
261B.9,
Code
2011,
is
amended
by
adding
the
14
following
new
subsection:
15
NEW
SUBSECTION
.
7.
The
disclosures
required
by
the
16
department
of
education
for
an
out-of-state
school
that
the
17
board
of
education
approves
to
offer
a
practitioner
preparation
18
program
by
distance
delivery
method.
19
Sec.
8.
Section
261B.11,
Code
2011,
is
amended
to
read
as
20
follows:
21
261B.11
Exceptions.
22
1.
This
chapter
does
not
apply
to
the
following
types
of
23
schools
and
courses
of
instruction:
24
1.
a.
Schools
and
educational
programs
conducted
by
firms,
25
corporations,
or
persons
solely
for
the
training
of
their
own
26
employees.
27
2.
b.
Apprentice
or
other
training
programs
provided
by
28
labor
unions
solely
to
members
or
applicants
for
membership.
29
3.
c.
Courses
of
instruction
of
an
avocational
or
30
recreational
nature
that
do
not
lead
to
an
occupational
31
objective.
32
4.
d.
Seminars,
refresher
courses,
and
programs
of
33
instruction
sponsored
by
professional,
business,
or
farming
34
organizations
or
associations
for
the
members
and
employees
of
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members
of
these
organizations
or
associations.
1
5.
e.
Courses
of
instruction
conducted
by
a
public
school
2
district
or
a
combination
of
public
school
districts.
3
6.
f.
Colleges
and
universities
authorized
by
the
laws
of
4
this
state
to
grant
degrees.
5
7.
g.
Schools
or
courses
of
instruction
or
courses
of
6
training
that
are
offered
by
a
vendor
solely
to
the
purchaser
7
or
prospective
purchaser
of
the
vendor’s
product
when
the
8
objective
of
the
school
or
course
is
to
enable
the
purchaser
9
or
the
purchaser’s
employees
to
gain
skills
and
knowledge
to
10
enable
the
purchaser
to
use
the
product.
11
8.
h.
Schools
and
educational
programs
conducted
by
12
religious
organizations
solely
for
the
religious
instruction
of
13
leadership
practitioners
of
that
religious
organization.
14
9.
i.
Postsecondary
educational
institutions
licensed
by
15
the
state
of
Iowa
prior
to
July
1,
2009,
under
section
157.8
16
or
158.7
to
conduct
business
operate
as
schools
of
cosmetology
17
arts
and
sciences
or
as
barber
schools
in
the
state.
18
10.
j.
Accredited
higher
Higher
education
institutions
19
that
meet
the
criteria
established
under
section
261.92,
261.9,
20
subsection
1
.
21
11.
k.
Postsecondary
educational
institutions
offering
22
programs
limited
to
nondegree
specialty
vocational
training
23
programs.
24
12.
Not-for-profit
colleges
and
universities
established
25
and
authorized
by
city
ordinance
to
grant
degrees.
26
l.
Higher
education
institutions
located
in
Iowa
that
are
27
affiliated
with
health
care
systems
located
in
Iowa,
and
which
28
offer
health
professions
programs
that
are
accredited
by
an
29
accrediting
agency
recognized
by
the
United
States
department
30
of
education.
31
m.
Higher
education
institutions
located
in
Iowa
whose
32
massage
therapy
curriculum
is
approved
under
administrative
33
rules
of
the
professional
licensure
division
of
the
department
34
of
public
health
and
whose
instructors
are
licensed
massage
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therapists
under
chapter
152C.
1
2.
A
school
that
claims
an
exemption
from
registration
2
under
subsection
1,
paragraph
“h”
,
“i”
,
“k”
,
“l”
,
or
“m”
,
must
3
demonstrate
to
the
commission
or
its
designee
that
it
qualifies
4
for
the
exemption.
The
school
must
apply
for
approval
of
its
5
exemption
claim
on
an
application
supplied
by
the
commission.
6
The
commission
or
its
designee
may
approve
the
school’s
7
exemption
claim
or
deny
it.
A
school
whose
exemption
claim
is
8
approved
must
reapply
to
renew
its
exemption
no
less
frequently
9
than
every
two
years.
10
a.
A
school
that
is
granted
an
exemption
under
this
section
11
must
file
evidence
of
financial
responsibility
under
section
12
714.18
or
demonstrate
to
the
commission
or
its
designee
that
13
the
school
qualifies
for
an
exemption
under
section
714.19
or
14
714.22.
15
b.
A
for-profit
school
with
at
least
one
program
of
16
more
than
four
months
in
length
that
leads
to
a
recognized
17
educational
credential,
such
as
an
academic
or
professional
18
degree,
diploma,
or
license,
must
submit
to
the
commission
or
19
its
designee
a
tuition
refund
policy
that
meets
the
conditions
20
of
section
714.23.
21
3.
A
school
that
is
denied
an
exemption
claim
by
the
22
commission
or
its
designee,
or
that
no
longer
qualifies
for
23
a
claimed
exemption,
shall
apply
for
registration
or
cease
24
operating
in
Iowa.
25
Sec.
9.
NEW
SECTION
.
261B.11A
Ineligibility
for
state
26
student
aid
programs.
27
1.
Students
attending
schools
required
to
register
under
28
this
chapter
are
ineligible
for
state
student
financial
aid
29
programs
established
under
chapter
261.
30
2.
A
school
required
to
register
under
this
chapter
is
31
prohibited
from
offering
state
aid
or
advertising
that
state
32
aid
is
or
may
be
available
to
students
attending
the
school.
33
DIVISION
II
34
POSTSECONDARY
REGISTRATION
——
UNLAWFUL
ACTIVITY
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Sec.
10.
Section
714.17,
Code
2011,
is
amended
to
read
as
1
follows:
2
714.17
Unlawful
advertising
and
selling
of
educational
3
courses
of
instruction
.
4
It
shall
be
unlawful
for
any
person,
firm,
association,
5
or
corporation
maintaining,
advertising,
or
conducting
in
6
Iowa
any
educational
course
of
instruction
for
profit,
or
7
for
tuition
charge,
whether
by
classroom
instructions
,
or
by
8
correspondence,
or
by
other
delivery
method
to:
9
1.
Falsely
advertise
or
represent
to
any
person
any
matter
10
material
to
such
an
educational
course
of
instruction
.
All
11
advertising
of
such
courses
of
instruction
shall
adhere
to
and
12
comply
with
the
rules
and
regulations
of
the
federal
trade
13
commission
as
of
July
4,
1965
.
14
2.
Collect
tuition
or
other
charges
in
excess
of
one
hundred
15
fifty
dollars
in
the
case
of
educational
courses
offered
by
16
correspondence
courses
of
study
,
in
advance
of
the
receipt
and
17
approval
by
the
pupil
of
the
first
assignment
or
lesson
of
such
18
course.
Any
contract
providing
for
advance
payment
of
more
19
than
one
hundred
fifty
dollars
shall
be
voidable
on
the
part
of
20
the
pupil
or
any
person
liable
for
the
tuition
provided
for
in
21
the
contract.
22
3.
Promise
or
guarantee
employment
utilizing
information,
23
training,
or
skill
purported
to
be
provided
or
otherwise
24
enhanced
by
a
an
educational
course,
unless
the
promisor
or
25
guarantor
offers
the
student
or
prospective
student
a
bona
26
fide
contract
of
employment
agreeing
to
employ
said
student
27
or
prospective
student
for
a
period
of
not
less
than
one
28
hundred
twenty
days
in
a
business
or
other
enterprise
regularly
29
conducted
by
the
promisor
or
guarantor
and
in
which
such
30
information,
training,
or
skill
is
a
normal
condition
of
31
employment.
32
Sec.
11.
Section
714.18,
subsection
1,
Code
2011,
is
amended
33
to
read
as
follows:
34
1.
Except
as
otherwise
provided
in
subsection
2
,
every
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person,
firm,
association,
or
corporation
maintaining
or
1
conducting
in
Iowa
any
such
educational
course
of
instruction
2
by
classroom
instruction
or
by
correspondence
or
by
other
3
distance
delivery
method,
or
soliciting
in
Iowa
the
sale
of
4
such
course,
shall
file
with
the
college
student
aid
commission
5
all
of
the
following:
6
a.
A
continuous
corporate
surety
bond
to
the
state
of
7
Iowa
in
the
sum
of
fifty
thousand
dollars
conditioned
for
8
on
the
faithful
performance
of
all
contracts
and
agreements
9
with
students
made
by
such
person,
firm,
association,
or
10
corporation,
or
their
salespersons;
but
the
aggregate
liability
11
of
the
surety
for
all
breaches
of
the
conditions
of
the
bond
12
shall
not
exceed
the
sum
of
the
bond.
The
surety
on
the
bond
13
may
cancel
the
bond
upon
giving
thirty
days’
written
notice
14
to
the
college
student
aid
commission
and
thereafter
shall
be
15
relieved
of
liability
for
any
breach
of
condition
occurring
16
after
the
effective
date
of
the
cancellation.
17
b.
A
statement
designating
a
resident
agent
for
the
purpose
18
of
receiving
service
in
civil
actions.
In
the
absence
of
such
19
designation,
service
may
be
had
upon
the
secretary
of
state
if
20
service
cannot
otherwise
be
made
in
this
state.
21
c.
A
copy
of
any
catalog,
prospectus,
brochure,
or
other
22
advertising
material
intended
for
distribution
in
Iowa.
23
Such
material
shall
state
the
cost
of
the
educational
course
24
offered,
the
schedule
of
tuition
refunds
for
portions
of
the
25
educational
course
not
completed,
and
if
no
refunds
are
to
26
be
paid,
the
material
shall
so
state.
Any
contract
induced
27
by
advertising
materials
not
previously
filed
as
provided
in
28
this
chapter
shall
be
voidable
on
the
part
of
the
pupil
or
any
29
person
liable
for
the
tuition
provided
for
in
the
contract.
30
Sec.
12.
Section
714.18,
subsection
2,
paragraph
a,
31
subparagraphs
(1)
and
(4),
Code
2011,
are
amended
to
read
as
32
follows:
33
(1)
A
continuous
corporate
surety
bond
to
the
state
of
34
Iowa
in
the
sum
of
fifty
thousand
dollars
or
ten
percent
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H.F.
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of
the
total
annual
tuition
collected,
whichever
is
less,
1
conditioned
for
on
the
faithful
performance
of
all
contracts
2
and
agreements
with
students
made
by
such
school.
A
school
3
desiring
to
file
a
surety
bond
based
on
a
percentage
of
annual
4
tuition
shall
provide
to
the
college
student
aid
commission,
in
5
the
form
prescribed
by
the
commission,
a
notarized
statement
6
attesting
to
the
total
amount
of
tuition
collected
in
the
7
preceding
twelve-month
period.
The
commission
shall
determine
8
the
sufficiency
of
the
statement
and
the
amount
of
the
bond.
9
Tuition
information
submitted
pursuant
to
this
subparagraph
10
shall
be
kept
confidential.
11
(4)
The
college
student
aid
commission
may
accept
a
letter
12
of
credit
from
issued
by
a
bank
in
lieu
of
and
for
the
amount
of
13
the
corporate
surety
bond
required
by
this
paragraph
“a”
14
subparagraphs
(1)
through
(3),
as
applicable
.
15
Sec.
13.
Section
714.19,
unnumbered
paragraph
1,
Code
2011,
16
is
amended
to
read
as
follows:
17
None
of
the
The
provisions
of
sections
714.17
to
714.22
18
714.21
shall
not
apply
to
the
following:
19
Sec.
14.
Section
714.19,
subsections
6
through
8,
Code
2011,
20
are
amended
to
read
as
follows:
21
6.
Schools
and
educational
programs
conducted
by
firms,
22
corporations,
or
persons
for
the
training
of
their
own
23
employees,
for
which
no
fee
is
charged.
24
7.
Seminars,
refresher
courses
,
and
schools
of
instruction
25
sponsored
conducted
by
professional,
business,
or
farming
26
organizations
or
associations
for
the
members
and
employees
of
27
members
of
such
organizations
or
associations.
A
person
who
28
provides
instruction
under
this
subsection
who
is
not
a
member
29
or
an
employee
of
a
member
of
the
organization
or
association
30
shall
not
be
eligible
for
this
exemption.
31
8.
Private
business
schools
accredited
by
the
accrediting
32
commission
for
business
schools
or
an
acknowledged
accrediting
33
agency
recognized
by
the
United
States
department
of
education
34
or
the
council
for
higher
education
accreditation
.
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Sec.
15.
Section
714.19,
Code
2011,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
10.
Private,
nonprofit
schools
that
meet
3
the
criteria
established
under
section
261.9,
subsection
1.
4
Sec.
16.
Section
714.23,
Code
2011,
is
amended
by
adding
the
5
following
new
subsection:
6
NEW
SUBSECTION
.
01.
a.
For
the
purposes
of
this
section
7
and
section
714.25,
“postsecondary
educational
program”
means
8
a
series
of
postsecondary
educational
courses
that
lead
to
9
a
recognized
educational
credential
such
as
an
academic
or
10
professional
degree,
diploma,
or
license.
11
b.
For
the
purposes
of
this
section,
“school
period”
means
12
the
course,
term,
payment
period,
postsecondary
educational
13
program,
or
other
period
for
which
the
school
assessed
tuition
14
charges
to
the
student.
A
school
that
assesses
tuition
charges
15
to
the
student
at
the
beginning
of
each
course,
term,
payment
16
period,
or
other
period
that
is
shorter
than
the
postsecondary
17
educational
program’s
length
shall
base
its
tuition
refund
on
18
the
amount
of
tuition
costs
the
school
charged
for
the
course,
19
term,
or
other
period
in
which
the
student
terminated.
A
20
school
shall
not
base
its
tuition
refund
calculation
on
any
21
portion
of
a
postsecondary
educational
program
that
remains
22
after
a
student
terminates
unless
the
student
was
charged
for
23
that
remaining
portion
of
the
postsecondary
educational
program
24
before
the
student’s
termination.
25
Sec.
17.
Section
714.23,
subsections
1
through
5,
Code
2011,
26
are
amended
to
read
as
follows:
27
1.
A
person
offering
a
course
of
instruction
at
the
28
postsecondary
level
at
least
one
postsecondary
educational
29
program
,
for
profit,
that
is
more
than
four
months
in
30
length
and
leads
to
a
degree,
diploma,
or
license
recognized
31
educational
credential
,
shall
make
a
pro
rata
refund
of
no
less
32
than
ninety
percent
of
the
tuition
for
a
terminating
student
to
33
the
appropriate
agency
based
upon
charges
to
an
Iowa
resident
34
student
who
terminates
from
any
of
the
school’s
postsecondary
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educational
programs
in
an
amount
that
is
not
less
than
1
ninety
percent
of
the
amount
of
tuition
charged
to
the
student
2
multiplied
by
the
ratio
of
completed
number
of
scheduled
school
3
days
to
the
number
of
calendar
days
remaining
in
the
school
4
period
until
the
date
equivalent
to
the
completion
of
sixty
5
percent
of
the
scheduled
school
calendar
days
of
in
the
school
6
term
or
course
period
to
the
total
number
of
calendar
days
in
7
the
school
period
until
the
date
equivalent
to
the
completion
8
of
sixty
percent
of
the
calendar
days
in
the
school
period
.
9
2.
Notwithstanding
the
provisions
of
subsection
1
,
the
10
following
tuition
refund
policy
shall
apply:
11
a.
If
a
terminating
student
has
completed
sixty
percent
or
12
more
of
a
school
term
or
course
that
is
more
than
four
months
in
13
length
period
,
the
person
offering
the
course
of
instruction
14
postsecondary
educational
program
is
not
required
to
refund
15
tuition
for
charges
to
the
student.
However,
if,
at
any
time,
16
a
student
terminates
a
school
term
or
course
that
is
more
than
17
four
months
in
length
postsecondary
educational
program
due
18
to
the
student’s
physical
incapacity
or
,
for
a
program
that
19
requires
classroom
instruction,
due
to
the
transfer
of
the
20
student’s
spouse’s
employment
to
another
city,
the
terminating
21
student
shall
receive
a
refund
of
tuition
charges
in
an
amount
22
which
that
equals
the
amount
of
tuition
charged
to
the
student
23
multiplied
by
the
ratio
of
the
remaining
number
of
school
24
calendar
days
in
the
school
period
to
the
total
school
number
25
of
calendar
days
of
in
the
school
term
or
course
period
.
26
b.
A
refund
of
ninety
percent
of
the
tuition
for
a
27
terminating
student
shall
be
paid
to
the
appropriate
agency
28
based
upon
the
ratio
of
completed
number
of
school
days
to
29
the
total
school
days
of
the
school
term
or
course.
A
school
30
shall
provide
to
a
terminating
student
a
refund
of
tuition
31
charges
in
an
amount
that
is
not
less
than
ninety
percent
of
32
the
amount
of
tuition
charged
to
the
student
multiplied
by
the
33
ratio
of
the
remaining
number
of
calendar
days
in
the
school
34
period
to
the
total
number
of
calendar
days
in
the
school
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period.
This
paragraph
“b”
applies
to
those
persons
offering
1
courses
of
instruction
at
the
postsecondary
level
at
least
one
2
postsecondary
educational
program
of
more
than
four
months
in
3
length
,
for
profit,
whose
cohort
default
rate
for
students
4
under
the
Stafford
loan
program
as
defined
reported
by
the
5
United
States
department
of
education
for
the
most
recent
6
federal
fiscal
year
is
more
than
one
hundred
ten
percent
of
the
7
national
average
cohort
default
rate
of
all
schools
for
that
8
program
for
that
period
the
same
federal
fiscal
year
or
six
9
percent,
whichever
is
higher.
10
3.
If
the
financial
obligations
of
a
student
are
for
three
11
or
fewer
months
duration,
this
section
does
not
apply.
In
the
12
case
of
a
program
in
which
student
progress
is
measured
only
in
13
clock
hours,
all
occurrences
of
“calendar
days”
in
subsections
14
1
and
2
shall
be
replaced
with
“scheduled
clock
hours”.
15
4.
Refunds
A
refund
of
tuition
charges
shall
be
paid
16
provided
to
the
appropriate
agency
student
within
thirty
17
forty-five
days
following
the
student’s
termination
date
of
the
18
school’s
determination
that
a
student
has
terminated
from
a
19
postsecondary
educational
program
.
20
5.
A
student
who
terminates
a
course
of
instruction
or
21
term
postsecondary
educational
program
shall
not
be
charged
22
any
fee
or
other
monetary
penalty
for
terminating
a
course
of
23
instruction
or
term
the
postsecondary
educational
program,
24
other
than
a
reduction
in
tuition
refund
as
specified
in
this
25
section
.
26
Sec.
18.
NEW
SECTION
.
714.24
Additional
requirements.
27
1.
A
required
filing
of
evidence
of
financial
28
responsibility
pursuant
to
section
714.18
must
be
completed
at
29
least
once
every
two
years.
30
2.
An
entity
that
claims
an
exemption
under
section
714.19
31
or
714.22
must
file
an
exemption
claim
with
the
commission.
32
The
commission
may
approve
or
deny
the
exemption
claim.
Except
33
for
a
school
that
claims
an
exemption
under
section
714.19,
34
subsection
1,
3,
or
10,
a
filing
of
a
claim
for
an
exemption
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pursuant
to
section
714.19
or
714.22
must
be
completed
at
least
1
once
every
two
years.
2
3.
An
entity
that
claims
an
exemption
under
section
714.19
3
or
714.22
must
file
evidence
of
financial
responsibility
4
pursuant
to
section
714.18
within
sixty
calendar
days
following
5
the
date
upon
which
conditions
that
qualify
the
entity
for
an
6
exemption
under
section
714.19
no
longer
exist.
The
commission
7
may
grant
an
entity
a
longer
period
to
file
evidence
of
8
financial
responsibility
based
on
documentation
the
entity
9
provides
to
the
commission
of
its
substantial
progress
to
10
comply
with
section
714.18,
subsection
1,
paragraph
“a”
.
11
4.
An
entity
that
is
required
to
file
evidence
of
financial
12
responsibility
under
section
714.18,
or
an
entity
that
files
13
a
claim
of
exemption
under
section
714.19
or
714.22,
shall
14
utilize
required
forms
approved
and
supplied
by
the
commission.
15
5.
The
commission
may,
at
its
discretion,
require
a
16
proprietary
school
that
must
comply
with
section
714.23
to
17
submit
its
tuition
refund
policy
to
the
commission
for
its
18
review
and
approval.
19
6.
The
commission
and
the
attorney
general
may,
20
individually
or
jointly,
adopt
rules
pursuant
to
chapter
17A
21
for
the
implementation
of
sections
714.18
through
714.25.
22
7.
Except
as
provided
in
section
714.18,
subsection
2,
23
paragraph
“a”
,
the
information
submitted
under
sections
714.18,
24
714.22,
714.23,
and
714.25
are
public
records
under
chapter
22.
25
Sec.
19.
Section
714.25,
Code
2011,
is
amended
to
read
as
26
follows:
27
714.25
Disclosure.
28
1.
For
purposes
of
this
chapter
section
,
unless
the
29
context
otherwise
requires,
“proprietary
school”
means
a
person
30
offering
a
course
of
instruction
at
the
postsecondary
level
31
postsecondary
educational
program
,
for
profit,
that
is
more
32
than
four
months
in
length
and
leads
to
a
degree,
diploma,
or
33
license
recognized
educational
credential,
such
as
an
academic
34
or
professional
degree,
diploma,
or
license
.
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2.
A
proprietary
school
shall,
prior
to
the
time
a
student
1
is
obligated
for
payment
of
any
moneys,
inform
the
student,
the
2
college
student
aid
commission,
and
in
the
case
of
a
school
3
licensed
under
section
157.8
,
the
board
of
cosmetology
arts
4
and
sciences
or
in
the
case
of
a
school
licensed
under
section
5
158.7
,
the
board
of
barbering,
of
all
of
the
following:
6
a.
The
total
cost
of
the
course
of
instruction
postsecondary
7
educational
program
as
charged
by
the
proprietary
school.
8
b.
An
estimate
of
any
fees
which
may
be
charged
the
9
student
by
others
which
would
be
required
if
the
student
is
10
to
successfully
complete
the
course
postsecondary
educational
11
program
and
,
if
applicable,
obtain
a
degree,
diploma,
or
12
license
recognized
educational
credential
.
13
c.
The
percentage
of
students
who
successfully
complete
14
the
course
postsecondary
educational
program
,
the
percentage
15
who
terminate
prior
to
completing
the
course
postsecondary
16
educational
program
,
and
the
period
of
time
upon
which
the
17
proprietary
school
has
based
these
percentages.
The
reporting
18
period
shall
not
be
less
than
one
year
in
length
and
shall
not
19
extend
more
than
five
years
into
the
past.
20
d.
If
claims
are
made
by
the
proprietary
school
as
to
21
successful
placement
of
students
in
jobs
upon
completion
of
the
22
course
of
study
proprietary
school’s
postsecondary
educational
23
programs
,
the
proprietary
school
shall
provide
the
student
with
24
all
of
the
following:
25
(1)
The
percentage
of
graduating
students
who
were
placed
26
in
jobs
in
fields
related
to
the
course
of
instruction
27
postsecondary
educational
programs
.
28
(2)
The
percentage
of
graduating
students
who
went
on
to
29
further
education
immediately
upon
graduation.
30
(3)
The
percentage
of
students
who,
ninety
days
after
31
graduation,
were
without
a
job
and
had
not
gone
on
to
further
32
education.
33
(4)
The
period
of
time
upon
which
the
reports
required
by
34
paragraphs
“a”
through
“c”
were
based.
The
reporting
period
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shall
not
be
less
than
one
year
in
length
and
shall
not
extend
1
more
than
five
years
into
the
past.
2
e.
If
claims
are
made
by
the
proprietary
school
as
to
income
3
levels
of
students
who
have
graduated
and
are
working
in
fields
4
related
to
the
proprietary
school’s
course
of
instruction
5
postsecondary
educational
programs
,
the
proprietary
school
6
shall
inform
the
student
of
the
method
used
to
derive
such
7
information.
8
3.
The
requirements
of
subsection
2
shall
not
apply
to
9
a
proprietary
school
that
is
eligible
for
federal
student
10
financial
aid
under
Tit.
IV
of
the
federal
Higher
Education
Act
11
of
1965,
as
amended.
12
Sec.
20.
REPEAL.
Section
714.22,
Code
2011,
is
repealed.
13
EXPLANATION
14
This
bill
makes
changes
regarding
oversight
by
the
college
15
student
aid
commission
of
schools
offering
postsecondary
16
educational
programs.
17
Division
I
of
the
bill
makes
various
changes
relating
to
the
18
college
student
aid
commission’s
registration
requirements
for
19
postsecondary
schools
governed
by
Code
chapter
261B.
20
The
bill
expands
the
definition
of
a
postsecondary
school
21
which
maintains
a
presence
in
Iowa
to
include,
with
certain
22
exceptions,
a
location
in
the
state
at
which
a
student
23
participates
in
any
structured
activity
related
to
a
school’s
24
distance
education
course
of
instruction,
as
well
as
any
25
address,
location,
telephone
number,
or
internet
protocol
26
address
in
Iowa
from
which
the
school
conducts
any
aspect
of
27
its
operations.
28
The
bill
requires
postsecondary
schools
to
renew
29
registration
with
the
commission
every
two
years
instead
of
30
every
four
years.
31
The
bill
allows
the
commission
to
grant
a
provisional
32
registration
to
a
postsecondary
school
that
is
not
accredited
33
by
an
agency
or
organization
that
is
recognized
by
the
United
34
States
department
of
education.
Such
a
school
must
report
on
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its
progress
toward
seeking
accreditation
every
six
months.
1
Provisional
registration
may
be
renewed
at
the
department’s
2
discretion.
3
The
bill
expands
the
information
a
postsecondary
school
4
seeking
to
register
must
provide
to
the
commission.
The
5
new
requirements
include
the
name,
title,
business
address,
6
telephone
number,
and
resume
of
an
Iowa
resident
compensated
7
by
the
school
to
perform
duties
at
a
location
in
the
state;
8
the
school’s
official
Stafford
loan
cohort
default
rate
as
9
calculated
by
the
United
States
department
of
education
for
the
10
three
most
recent
federal
fiscal
years;
the
average
student
11
loan
debt
upon
graduation
of
students
completing
programs
at
12
the
school;
the
graduation
rate
of
undergraduate
students
as
13
reported
to
the
United
States
department
of
education;
and
14
evidence
that
the
school
meets
the
conditions
of
financial
15
responsibility
established
in
Code
chapter
714.
16
The
bill
makes
changes
to
postsecondary
schools
exempt
from
17
Code
chapter
261B,
including
exemptions
for
schools
at
which
18
students
are
eligible
for
tuition
grants
under
Code
chapter
19
261,
division
II;
certain
schools
affiliated
with
health
care
20
systems;
and
certain
schools
offering
approved
massage
therapy
21
curriculums.
22
The
bill
specifies
that
students
attending
schools
which
23
must
register
with
the
commission
under
Code
chapter
261B
24
are
ineligible
for
state
student
financial
aid
programs
25
established
by
Code
chapter
261,
and
such
schools
may
not
offer
26
such
financial
aid
or
advertise
that
such
financial
aid
is
27
available.
28
Division
I
of
the
bill
also
makes
changes
to
terminology
29
and
other
technical
changes
relating
to
the
commission’s
30
registration
requirements
under
Code
chapter
261B.
31
Division
II
of
the
bill
makes
various
changes
relating
to
32
the
college
student
aid
commission’s
oversight
functions
over
33
the
advertising,
financial
responsibility,
tuition
refund,
and
34
disclosure
requirements
and
restrictions
governing
certain
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educational
programs
and
courses
under
Code
chapter
714.
1
The
bill
amends
Code
section
714.19,
relating
to
the
2
nonapplicability
of
Code
sections
714.17
to
714.21,
governing
3
business
and
financial
practices
of
sellers
of
educational
4
courses,
to
provide
that
instructors
for
courses
conducted
5
by
professional,
business,
or
farming
organizations
or
6
associations
for
the
members
and
employees
of
members
of
such
7
entities
who
are
not
members
or
employees
of
members
themselves
8
are
ineligible
for
exemption
from
Code
sections
714.17
to
9
714.21.
The
bill
specifies
accreditation
standards
for
private
10
business
schools
exempt
from
Code
sections
714.17
to
714.21.
11
The
bill
creates
a
new
exemption
from
Code
sections
714.17
12
to
714.21
for
private,
nonprofit
schools
eligible
for
state
13
student
financial
aid
programs
authorized
under
Code
chapter
14
261.
The
bill
repeals
Code
section
714.22,
which
exempts
trade
15
and
vocational
schools
from
Code
sections
714.17
to
714.21
if
16
certain
conditions
are
met.
17
The
bill
amends
Code
section
714.23
to
remove
the
exemption
18
for
students
with
financial
obligations
of
three
or
fewer
19
months’
duration
from
standards
regarding
tuition
refund
20
policies.
The
bill
provides
for
the
inclusion
of
educational
21
programs
in
which
student
progress
is
measured
only
in
clock
22
hours
under
standards
regarding
tuition
refund
policies.
The
23
bill
also
provides
that
certain
tuition
refunds
must
be
paid
24
directly
to
students.
A
violation
of
Code
section
714.23
is
a
25
simple
misdemeanor,
which
is
punishable
by
confinement
for
not
26
more
than
30
days
or
a
fine
of
at
least
$65
but
not
more
than
27
$625
or
by
both.
28
The
bill
amends
Code
section
714.25
to
exempt
from
certain
29
disclosure
requirements
proprietary
schools,
as
defined
in
the
30
bill,
that
are
eligible
for
federal
student
financial
aid
under
31
Title
IV
of
the
Higher
Education
Act
of
1965.
32
The
bill
provides
that
the
commission
and
the
attorney
33
general
may,
individually
or
jointly,
adopt
rules
pursuant
34
to
Code
chapter
17A
to
carry
out
the
commission’s
oversight
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functions
under
Code
chapter
714.
1
Finally,
division
II
of
the
bill
makes
changes
to
2
terminology,
demonstration
of
compliance,
and
exemptions
3
relating
to
the
commission’s
oversight
functions
under
Code
4
chapter
714.
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