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 6 kh/je/5 PAG LIN 1 1 Section 1. Section 261.1, subsection 5, Code 2005, is 1 2 amended to read as follows: 1 3 5.EightNine 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 7 19 kh:rj/je/5