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Senate File 376 - IntroducedA Bill ForAn Act 1relating to the Iowa tuition grants program administered
2by the college student aid commission and including
3effective date and retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2FOR-PROFIT INSTITUTIONS
3 Section 1. IOWA TUITION GRANTS — FOR-PROFIT
4INSTITUTIONS. For the period beginning December 1, 2022, and
5ending June 30, 2023, and for purposes of section 261.16A, an
6“eligible institution”, as defined in section 261.9, subsection
73, paragraph “a”, shall include an institution of higher
8learning accredited by the higher learning commission which,
9effective January 8, 2010, was purchased by an institution that
10was not exempt from taxation under section 501(c)(3) of the
11Internal Revenue Code and which, effective December 1, 2022,
12was purchased by an entity located in this state that is exempt
13from taxation under section 501(c)(3) of the Internal Revenue
14Code.
15 Sec. 2. EFFECTIVE DATE. This division of this Act, being
16deemed of immediate importance, takes effect upon enactment.
17 Sec. 3. RETROACTIVE APPLICABILITY. This division of this
18Act applies retroactively to December 1, 2022.
19DIVISION II
20IOWA TUITION GRANTS PROGRAM
21 Sec. 4. Section 261.9, subsection 3, Code 2023, is amended
22to read as follows:
233. “Eligible institution” means an institution of higher
24learning located in Iowa which is operated privately and
25not controlled or administered by any state agency or any
26subdivision of the state, which is not exempt from taxation
27under section 501(c)(3) of the Internal Revenue Code, and
28which meets all of the criteria in subsection 1, paragraphs
29“d” through “i”, and the criteria in paragraphs “a” or “b” as
30follows:
31a. Is accredited by the higher learning commission and
32which, effective January 8, 2010, purchased an accredited
33private institution that was exempt from taxation under section
34501(c) of the Internal Revenue Code, or whose students were
35eligible to receive tuition grants in the fiscal year beginning
-1-1July 1, 2003. The eligible institution shall annually provide
2a matching aggregate amount of institutional financial aid
3which shall increase by the percentage of increase each
4fiscal year of funds appropriated for Iowa tuition grants
5under section 261.25, subsection 2, to a maximum match of one
6hundred percent as initiated under section 261.9, subsection 1,
7paragraph “b”, Code 2005.
8b. Is is a barber school licensed under section 158.7
9or a school of cosmetology arts and sciences licensed under
10chapter 157 and is accredited by a national accrediting agency
11recognized by the United States department of education.
12For the fiscal year beginning July 1, 2017, an eligible
13institution under this paragraph such a barber school or school
14of cosmetology arts and sciences shall provide a matching
15aggregate amount of institutional financial aid equal to at
16least seventy-five percent of the amount received by the
17institution’s students for Iowa tuition grant assistance
18under section 261.16A. For the fiscal year beginning July 1,
192018, the institution barber school or school of cosmetology
20arts and sciences shall provide a matching aggregate amount
21of institutional financial aid equal to at least eighty-five
22percent of the amount received in that fiscal year. Commencing
23with the fiscal year beginning July 1, 2019, and each
24succeeding fiscal year, the matching aggregate amount of
25institutional financial aid shall be at least equal to the
26match provided by eligible institutions under section 261.9,
27subsection 3, paragraph “a”, Code 2023.
28 Sec. 5. Section 261.16A, subsection 2, Code 2023, is amended
29to read as follows:
302. Extent of grant.
31a. A qualified full-time resident student enrolled in an
32eligible institution that meets the criteria of section 261.9,
33subsection 3, paragraph “a”, may receive tuition grants for
34not more than eight semesters of undergraduate study or the
35equivalent; a qualified part-time resident student enrolled
-2-1in the eligible institution may receive tuition grants for
2not more than sixteen semesters of undergraduate study or the
3equivalent.
4b. A qualified full-time resident student enrolled in an
5eligible institution that meets the criteria of section 261.9,
6subsection 3, paragraph “b”, may receive tuition grants for not
7more than four semesters or the equivalent of two full years
8of study. However, if a student resumes study after at least
9a two-year absence, the student may again be eligible for the
10specified amount of time, except that the student shall not
11receive assistance for courses for which credit was previously
12received.
13 Sec. 6. Section 261.25, subsection 2, Code 2023, is amended
14to read as follows:
152. There is appropriated from the general fund of the state
16to the commission for each fiscal year the sum of five hundred
17thousand dollars for tuition grants for qualified students
18who are enrolled in eligible institutions. Of the moneys
19appropriated under this subsection, not more than one hundred
20thousand dollars annually shall be used for tuition grants to
21qualified students who are attending an eligible institution
22under section 261.9, subsection 3, paragraph “b”.
23EXPLANATION
24The inclusion of this explanation does not constitute agreement with
25the explanation’s substance by the members of the general assembly.
26This bill relates to the Iowa tuition grants program
27administered by the college student aid commission. Under
28the program, the commission awards tuition grants to Iowa
29residents enrolled at eligible institutions, which Code section
30261.9 defines as one of Iowa’s eligible private colleges and
31universities. The bill provides that, for the period beginning
32December 1, 2022, and ending June 30, 2023, and for purposes
33of the program, the term “eligible institution” includes
34an institution of higher learning accredited by the higher
35learning commission which, effective January 8, 2010, was
-3-1purchased by an institution that was not exempt from taxation
2under section 501(c)(3) of the Internal Revenue Code and which,
3effective December 1, 2022, was purchased by an entity located
4in this state that is exempt from taxation under section
5501(c)(3) of the Internal Revenue Code. The bill establishes
6that this provision takes effect upon enactment and applies
7retroactively to December 1, 2022. The bill makes conforming
8changes.
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2by the college student aid commission and including
3effective date and retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2FOR-PROFIT INSTITUTIONS
3 Section 1. IOWA TUITION GRANTS — FOR-PROFIT
4INSTITUTIONS. For the period beginning December 1, 2022, and
5ending June 30, 2023, and for purposes of section 261.16A, an
6“eligible institution”, as defined in section 261.9, subsection
73, paragraph “a”, shall include an institution of higher
8learning accredited by the higher learning commission which,
9effective January 8, 2010, was purchased by an institution that
10was not exempt from taxation under section 501(c)(3) of the
11Internal Revenue Code and which, effective December 1, 2022,
12was purchased by an entity located in this state that is exempt
13from taxation under section 501(c)(3) of the Internal Revenue
14Code.
15 Sec. 2. EFFECTIVE DATE. This division of this Act, being
16deemed of immediate importance, takes effect upon enactment.
17 Sec. 3. RETROACTIVE APPLICABILITY. This division of this
18Act applies retroactively to December 1, 2022.
19DIVISION II
20IOWA TUITION GRANTS PROGRAM
21 Sec. 4. Section 261.9, subsection 3, Code 2023, is amended
22to read as follows:
233. “Eligible institution” means an institution of higher
24learning located in Iowa which is operated privately and
25not controlled or administered by any state agency or any
26subdivision of the state, which is not exempt from taxation
27under section 501(c)(3) of the Internal Revenue Code, and
28which meets all of the criteria in subsection 1, paragraphs
29“d” through “i”, and the criteria in paragraphs “a” or “b” as
30follows:
31a. Is accredited by the higher learning commission and
32which, effective January 8, 2010, purchased an accredited
33private institution that was exempt from taxation under section
34501(c) of the Internal Revenue Code, or whose students were
35eligible to receive tuition grants in the fiscal year beginning
-1-1July 1, 2003. The eligible institution shall annually provide
2a matching aggregate amount of institutional financial aid
3which shall increase by the percentage of increase each
4fiscal year of funds appropriated for Iowa tuition grants
5under section 261.25, subsection 2, to a maximum match of one
6hundred percent as initiated under section 261.9, subsection 1,
7paragraph “b”, Code 2005.
8b. Is is a barber school licensed under section 158.7
9or a school of cosmetology arts and sciences licensed under
10chapter 157 and is accredited by a national accrediting agency
11recognized by the United States department of education.
12For the fiscal year beginning July 1, 2017, an eligible
13institution under this paragraph such a barber school or school
14of cosmetology arts and sciences shall provide a matching
15aggregate amount of institutional financial aid equal to at
16least seventy-five percent of the amount received by the
17institution’s students for Iowa tuition grant assistance
18under section 261.16A. For the fiscal year beginning July 1,
192018, the institution barber school or school of cosmetology
20arts and sciences shall provide a matching aggregate amount
21of institutional financial aid equal to at least eighty-five
22percent of the amount received in that fiscal year. Commencing
23with the fiscal year beginning July 1, 2019, and each
24succeeding fiscal year, the matching aggregate amount of
25institutional financial aid shall be at least equal to the
26match provided by eligible institutions under section 261.9,
27subsection 3, paragraph “a”, Code 2023.
28 Sec. 5. Section 261.16A, subsection 2, Code 2023, is amended
29to read as follows:
302. Extent of grant.
31a. A qualified full-time resident student enrolled in an
32eligible institution that meets the criteria of section 261.9,
33subsection 3, paragraph “a”, may receive tuition grants for
34not more than eight semesters of undergraduate study or the
35equivalent; a qualified part-time resident student enrolled
-2-1in the eligible institution may receive tuition grants for
2not more than sixteen semesters of undergraduate study or the
3equivalent.
4b. A qualified full-time resident student enrolled in an
5eligible institution that meets the criteria of section 261.9,
6subsection 3, paragraph “b”, may receive tuition grants for not
7more than four semesters or the equivalent of two full years
8of study. However, if a student resumes study after at least
9a two-year absence, the student may again be eligible for the
10specified amount of time, except that the student shall not
11receive assistance for courses for which credit was previously
12received.
13 Sec. 6. Section 261.25, subsection 2, Code 2023, is amended
14to read as follows:
152. There is appropriated from the general fund of the state
16to the commission for each fiscal year the sum of five hundred
17thousand dollars for tuition grants for qualified students
18who are enrolled in eligible institutions. Of the moneys
19appropriated under this subsection, not more than one hundred
20thousand dollars annually shall be used for tuition grants to
21qualified students who are attending an eligible institution
22under section 261.9, subsection 3, paragraph “b”.
23EXPLANATION
24The inclusion of this explanation does not constitute agreement with
25the explanation’s substance by the members of the general assembly.
26This bill relates to the Iowa tuition grants program
27administered by the college student aid commission. Under
28the program, the commission awards tuition grants to Iowa
29residents enrolled at eligible institutions, which Code section
30261.9 defines as one of Iowa’s eligible private colleges and
31universities. The bill provides that, for the period beginning
32December 1, 2022, and ending June 30, 2023, and for purposes
33of the program, the term “eligible institution” includes
34an institution of higher learning accredited by the higher
35learning commission which, effective January 8, 2010, was
-3-1purchased by an institution that was not exempt from taxation
2under section 501(c)(3) of the Internal Revenue Code and which,
3effective December 1, 2022, was purchased by an entity located
4in this state that is exempt from taxation under section
5501(c)(3) of the Internal Revenue Code. The bill establishes
6that this provision takes effect upon enactment and applies
7retroactively to December 1, 2022. The bill makes conforming
8changes.
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