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.  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
  7 19 kh:rj/je/5