House File 2631 - Introduced
HOUSE FILE
BY COMMITTEE ON EDUCATION
(SUCCESSOR TO HSB 600)
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act creating the Iowa proprietary tuition grant program, and
2 adding a member to represent proprietary institutions to the
3 college student aid commission.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 6426HV 81
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PAG LIN
1 1 Section 1. Section 261.1, subsection 5, Code 2005, is
1 2 amended to read as follows:
1 3 5. Eight Nine additional members to be appointed by the
1 4 governor. One of the members shall be selected to represent
1 5 private colleges, private universities and private junior
1 6 colleges located in the state of Iowa. When appointing this
1 7 member, the governor shall give careful consideration to any
1 8 person or persons nominated or recommended by any organization
1 9 or association of some or all private colleges, private
1 10 universities and private junior colleges located in the state
1 11 of Iowa. One of the members shall be selected to represent
1 12 proprietary institutions located in the state of Iowa. One of
1 13 the members shall be selected to represent community colleges
1 14 located in the state of Iowa. When appointing this member,
1 15 the governor shall give careful consideration to any person or
1 16 persons nominated or recommended by any organization or
1 17 association of Iowa community colleges. One member shall be
1 18 enrolled as a student at a board of regents institution,
1 19 community college, or accredited private institution. One
1 20 member shall be a representative of a lending institution
1 21 located in this state. One member shall be a representative
1 22 of the Iowa student loan liquidity corporation. The other
1 23 three members, none of whom shall be official board members or
1 24 trustees of an institution of higher learning or of an
1 25 association of institutions of higher learning, shall be
1 26 selected to represent the general public.
1 27 Sec. 2. Section 261.2, subsection 2, Code Supplement 2005,
1 28 is amended to read as follows:
1 29 2. Administer the tuition grant program and proprietary
1 30 tuition grant program under this chapter.
1 31 Sec. 3. Section 261.9, subsection 1, paragraph b, Code
1 32 Supplement 2005, is amended to read as follows:
1 33 b. Is accredited by the north central association of
1 34 colleges and secondary schools accrediting agency based on
1 35 their requirements, is exempt from taxation under section
2 1 501(c)(3) of the Internal Revenue Code, and annually provides
2 2 a matching aggregate amount of institutional financial aid
2 3 equal to at least seventy=five percent of the amount received
2 4 in a fiscal year by the institution's students for Iowa
2 5 tuition grant assistance under this chapter. Commencing with
2 6 the fiscal year beginning July 1, 2006, the matching aggregate
2 7 amount of institutional financial aid shall increase by the
2 8 percentage of increase each fiscal year of funds appropriated
2 9 for Iowa tuition grants under section 261.25, subsection 1, to
2 10 a maximum match of one hundred percent. The institution shall
2 11 file annual reports with the commission prior to receipt of
2 12 tuition grant moneys under this chapter. An institution whose
2 13 income is not exempt from taxation under section 501(c) of the
2 14 Internal Revenue Code and whose students were eligible to
2 15 receive Iowa tuition grant money in the fiscal year beginning
2 16 July 1, 2003, shall meet the match requirements of this
2 17 paragraph no later than June 30, 2005.
2 18 Sec. 4. Section 261.9, Code Supplement 2005, is amended by
2 19 adding the following new subsections:
2 20 NEW SUBSECTION. 5A. "Proprietary institution" means a
2 21 for=profit institution of higher learning located in Iowa
2 22 which is not exempt from taxation under section 501(c)(3) of
2 23 the Internal Revenue Code, is operated privately and not
2 24 controlled or administered by any state agency or any
2 25 subdivision of the state, is accredited by the north central
2 26 association of colleges and secondary schools accrediting
2 27 agency based on its requirements, and annually provides a
2 28 matching aggregate amount of institutional financial aid equal
2 29 to at least seventy=five percent of the amount received in a
2 30 fiscal year by the institution's students for proprietary
2 31 tuition grant assistance under this chapter. Commencing with
2 32 the fiscal year beginning July 1, 2006, the matching aggregate
2 33 amount of institutional financial aid shall increase by the
2 34 percentage of increase each fiscal year of funds appropriated
2 35 for proprietary tuition grants under section 261.25,
3 1 subsection 1A, to a maximum match of one hundred percent. The
3 2 institution shall file annual reports with the commission
3 3 prior to receipt of tuition grant moneys under this chapter.
3 4 The institutions defined in this subsection shall meet the
3 5 criteria in subsection 1, paragraphs "d" through "g".
3 6 NEW SUBSECTION. 5B. "Proprietary tuition grant" means an
3 7 award by the state of Iowa to a qualified student who attends
3 8 a proprietary institution as provided in section 261.18.
3 9 Sec. 5. Section 261.9, subsection 7, Code Supplement 2005,
3 10 is amended to read as follows:
3 11 7. "Tuition grant" means an award by the state of Iowa to
3 12 a qualified student under this division, but does not include
3 13 a proprietary tuition grant awarded pursuant to section
3 14 261.18.
3 15 Sec. 6. NEW SECTION. 261.18 PROPRIETARY TUITION GRANTS.
3 16 1. A proprietary tuition grant program is established to
3 17 be administered by the commission.
3 18 2. A proprietary tuition grant may be awarded to a
3 19 resident of Iowa who is admitted and in attendance as a full=
3 20 time or part=time resident student at an accredited
3 21 proprietary institution, establishes financial need, and, in
3 22 accordance with the rules and regulations of the commission,
3 23 meets the following conditions:
3 24 a. Completes and files an application for a proprietary
3 25 tuition grant.
3 26 b. Provides for the submission of the parents'
3 27 confidential statement for processing, the processed
3 28 information to be returned both to the commission and to the
3 29 proprietary institution in which the applicant is enrolling.
3 30 c. Reports promptly to the commission any information
3 31 requested.
3 32 d. Files a new application and parents' confidential
3 33 statement annually, on the basis of which the applicant's
3 34 eligibility for a renewed proprietary tuition grant will be
3 35 evaluated and determined.
4 1 3. A qualified full=time resident student may receive
4 2 state financial aid in the form of proprietary tuition grants
4 3 or Iowa tuition grants for not more than eight semesters of
4 4 undergraduate study or the trimester or quarter equivalent. A
4 5 qualified part=time resident student may receive proprietary
4 6 tuition grants or Iowa tuition grants for not more than
4 7 sixteen semesters of undergraduate study or the trimester or
4 8 quarter equivalent.
4 9 4. The amount of a proprietary tuition grant to a
4 10 qualified full=time student for the fall and spring semesters,
4 11 or the trimester or quarter equivalent, shall be the amount of
4 12 the student's financial need for that period. However, a
4 13 proprietary tuition grant shall not exceed the lesser of the
4 14 following:
4 15 a. The total tuition and mandatory fees for that student
4 16 for two semesters or the trimester or quarter equivalent, less
4 17 the base amount determined annually by the commission, which
4 18 base amount shall be within ten dollars of the average tuition
4 19 for two semesters or the trimester or quarter equivalent of
4 20 undergraduate study at the state universities under the
4 21 control of the board of regents, but in any event the base
4 22 amount shall not be less than four hundred dollars.
4 23 b. For the fiscal year beginning July 1, 2006, and for
4 24 each succeeding fiscal year, four thousand dollars.
4 25 5. The amount of a proprietary tuition grant to a
4 26 qualified full=time student for the summer semester or
4 27 trimester or quarter equivalent shall be one=half the amount
4 28 of the proprietary tuition grant the student receives under
4 29 subsection 4.
4 30 6. The amount of a proprietary tuition grant to a
4 31 qualified part=time student enrolled in a course of study
4 32 including at least three semester hours but fewer than twelve
4 33 semester hours for the fall, spring, and summer semesters, or
4 34 the trimester or quarter equivalent, shall be equal to the
4 35 amount of a proprietary tuition grant that would be paid to a
5 1 full=time student times a number which represents the number
5 2 of hours in which the part=time student is actually enrolled
5 3 divided by twelve semester hours, or the trimester or quarter
5 4 equivalent.
5 5 7. A proprietary tuition grant shall be awarded on an
5 6 annual basis. Payments under the grant shall be allocated
5 7 equally among the semesters, trimesters, or quarters and shall
5 8 be paid at the beginning of each semester, trimester, or
5 9 quarter upon certification by the accredited proprietary
5 10 institution that the student is admitted and in attendance.
5 11 If the student discontinues attendance before the end of any
5 12 semester, trimester, or quarter after receiving payment under
5 13 the grant, the entire amount of any refund due that student,
5 14 up to the amount of any payments made under the annual grant,
5 15 shall be paid by the proprietary institution to the state.
5 16 8. If a student receives financial aid under any other
5 17 program, the full amount of such financial aid shall be
5 18 considered part of the student's financial resources available
5 19 in determining the amount of the student's financial need for
5 20 that period. In no case may the state's total financial
5 21 contribution to the student's education, including financial
5 22 aid under any other state program, exceed the tuition and
5 23 mandatory fees at the proprietary institution the student
5 24 attends.
5 25 9. The commission shall administer this program and shall
5 26 do the following:
5 27 a. Provide application forms and parents' confidential
5 28 statement forms.
5 29 b. Adopt rules and regulations for determining financial
5 30 need, defining tuition and mandatory fees, defining residence
5 31 for the purposes of this section, processing and approving
5 32 applications for proprietary tuition grants, and determining
5 33 priority of grants. The commission may provide for proration
5 34 of funds if the available funds are insufficient to pay all
5 35 approved grants. Such proration shall take primary account of
6 1 the financial need of the applicant. In determining who is a
6 2 resident of Iowa, the commission's rules shall be at least as
6 3 restrictive as those of the board of regents.
6 4 c. Approve and award proprietary tuition grants.
6 5 d. Make an annual report to the governor and general
6 6 assembly, and evaluate the proprietary tuition grant program
6 7 for the period. The commission may require a proprietary
6 8 institution to promptly furnish any information which the
6 9 commission may request in connection with the proprietary
6 10 tuition grant program.
6 11 EXPLANATION
6 12 This bill creates the Iowa proprietary tuition grant
6 13 program for students who are enrolled in and attending for=
6 14 profit, proprietary postsecondary institutions. The program
6 15 is modeled after the Iowa tuition grant program. The bill
6 16 adds to the membership of the college student aid commission a
6 17 member selected to represent proprietary institutions located
6 18 in Iowa.
6 19 DEFINITIONS. The bill defines "proprietary tuition grant"
6 20 and changes the definition of "tuition grant" to provide that
6 21 the term does not include a proprietary tuition grant. The
6 22 bill defines "proprietary institution" as a for=profit
6 23 institution located in Iowa which is not tax=exempt, operated
6 24 privately, is accredited by the north central association of
6 25 colleges and secondary schools accrediting agency, and
6 26 annually provides a matching aggregate amount of institutional
6 27 financial aid in the same percentage amounts required of
6 28 accredited private institutions whose students are eligible
6 29 for the Iowa tuition grant.
6 30 REQUIREMENTS. The institutions must file annual reports
6 31 with the commission and, like accredited private institutions,
6 32 promote equal opportunity and affirmative action efforts in
6 33 the recruitment, appointment, assignment, and advancement of
6 34 personnel at the institution; adopt a policy that prohibits
6 35 unlawful possession, use, or distribution of controlled
7 1 substances by students and employees on property owned or
7 2 leased by the institution or in conjunction with activities
7 3 sponsored by the institution; develop and implement a written
7 4 policy addressing sexual abuse; and adopt a policy to offer
7 5 certain specified options to students who are members of the
7 6 Iowa national guard or reserve forces of the United States and
7 7 who are ordered to state military service or federal service
7 8 or duty.
7 9 STATE FINANCIAL AID LIMITATION. The bill provides that a
7 10 qualified full=time resident student may receive state
7 11 financial aid in the form of proprietary tuition grants or
7 12 Iowa tuition grants for not more than eight semesters of
7 13 undergraduate study or the trimester or quarter equivalent.
7 14 The bill also provides similar language limiting the amount of
7 15 state financial aid qualified part=time resident students may
7 16 receive to not more than 16 semesters of undergraduate study
7 17 or the trimester or quarter equivalent.
7 18 LSB 6426HV 81
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