House Study Bill 600
HOUSE FILE
BY (PROPOSED COMMITTEE ON
EDUCATION BILL BY
CHAIRPERSON TYMESON)
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 providing an appropriation.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 261.2, subsection 2, Code Supplement
1 2 2005, is amended to read as follows:
1 3 2. Administer the tuition grant program and proprietary
1 4 tuition grant program under this chapter.
1 5 Sec. 2. Section 261.9, subsection 1, paragraph b, Code
1 6 Supplement 2005, is amended to read as follows:
1 7 b. Is accredited by the north central association of
1 8 colleges and secondary schools accrediting agency based on
1 9 their requirements, is exempt from taxation under section
1 10 501(c)(3) of the Internal Revenue Code, and annually provides
1 11 a matching aggregate amount of institutional financial aid
1 12 equal to at least seventy=five percent of the amount received
1 13 in a fiscal year by the institution's students for Iowa
1 14 tuition grant assistance under this chapter. Commencing with
1 15 the fiscal year beginning July 1, 2006, the matching aggregate
1 16 amount of institutional financial aid shall increase by the
1 17 percentage of increase each fiscal year of funds appropriated
1 18 for Iowa tuition grants under section 261.25, subsection 1, to
1 19 a maximum match of one hundred percent. The institution shall
1 20 file annual reports with the commission prior to receipt of
1 21 tuition grant moneys under this chapter. An institution whose
1 22 income is not exempt from taxation under section 501(c) of the
1 23 Internal Revenue Code and whose students were eligible to
1 24 receive Iowa tuition grant money in the fiscal year beginning
1 25 July 1, 2003, shall meet the match requirements of this
1 26 paragraph no later than June 30, 2005.
1 27 Sec. 3. Section 261.9, Code Supplement 2005, is amended by
1 28 adding the following new subsections:
1 29 NEW SUBSECTION. 5A. "Proprietary institution" means a
1 30 for=profit institution of higher learning located in Iowa
1 31 which is not exempt from taxation under section 501(c)(3) of
1 32 the Internal Revenue Code, is operated privately and not
1 33 controlled or administered by any state agency or any
1 34 subdivision of the state, is accredited by the north central
1 35 association of colleges and secondary schools accrediting
2 1 agency based on its requirements, and annually provides a
2 2 matching aggregate amount of institutional financial aid equal
2 3 to at least seventy=five percent of the amount received in a
2 4 fiscal year by the institution's students for proprietary
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 proprietary tuition grants under section 261.25,
2 10 subsection 1A, to a maximum match of one hundred percent. The
2 11 institution shall file annual reports with the commission
2 12 prior to receipt of tuition grant moneys under this chapter.
2 13 The institutions defined in this subsection shall meet the
2 14 criteria in subsection 1, paragraphs "d" through "g".
2 15 NEW SUBSECTION. 5B. "Proprietary tuition grant" means an
2 16 award by the state of Iowa to a qualified student who attends
2 17 a proprietary institution as provided in section 261.18.
2 18 Sec. 4. Section 261.9, subsection 7, Code Supplement 2005,
2 19 is amended to read as follows:
2 20 7. "Tuition grant" means an award by the state of Iowa to
2 21 a qualified student under this division, but does not include
2 22 a proprietary tuition grant awarded pursuant to section
2 23 261.18.
2 24 Sec. 5. NEW SECTION. 261.18 PROPRIETARY TUITION GRANTS.
2 25 1. A proprietary tuition grant program is established to
2 26 be administered by the commission.
2 27 2. A proprietary tuition grant may be awarded to a
2 28 resident of Iowa who is admitted and in attendance as a full=
2 29 time or part=time resident student at an accredited
2 30 proprietary institution, establishes financial need, and, in
2 31 accordance with the rules and regulations of the commission,
2 32 meets the following conditions:
2 33 a. Completes and files an application for a proprietary
2 34 tuition grant.
2 35 b. Provides for the submission of the parents'
3 1 confidential statement for processing, the processed
3 2 information to be returned both to the commission and to the
3 3 proprietary institution in which the applicant is enrolling.
3 4 c. Reports promptly to the commission any information
3 5 requested.
3 6 d. Files a new application and parents' confidential
3 7 statement annually, on the basis of which the applicant's
3 8 eligibility for a renewed proprietary tuition grant will be
3 9 evaluated and determined.
3 10 3. A qualified full=time resident student may receive
3 11 state financial aid in the form of proprietary tuition grants
3 12 or Iowa tuition grants for not more than eight semesters of
3 13 undergraduate study or the trimester or quarter equivalent. A
3 14 qualified part=time resident student may receive proprietary
3 15 tuition grants or Iowa tuition grants for not more than
3 16 sixteen semesters of undergraduate study or the trimester or
3 17 quarter equivalent.
3 18 4. The amount of a proprietary tuition grant to a
3 19 qualified full=time student for the fall and spring semesters,
3 20 or the trimester or quarter equivalent, shall be the amount of
3 21 the student's financial need for that period. However, a
3 22 proprietary tuition grant shall not exceed the lesser of the
3 23 following:
3 24 a. The total tuition and mandatory fees for that student
3 25 for two semesters or the trimester or quarter equivalent, less
3 26 the base amount determined annually by the commission, which
3 27 base amount shall be within ten dollars of the average tuition
3 28 for two semesters or the trimester or quarter equivalent of
3 29 undergraduate study at the state universities under the
3 30 control of the board of regents, but in any event the base
3 31 amount shall not be less than four hundred dollars.
3 32 b. For the fiscal year beginning July 1, 2006, and for
3 33 each succeeding fiscal year, four thousand dollars.
3 34 5. The amount of a proprietary tuition grant to a
3 35 qualified full=time student for the summer semester or
4 1 trimester or quarter equivalent shall be one=half the amount
4 2 of the proprietary tuition grant the student receives under
4 3 subsection 4.
4 4 6. The amount of a proprietary tuition grant to a
4 5 qualified part=time student enrolled in a course of study
4 6 including at least three semester hours but fewer than twelve
4 7 semester hours for the fall, spring, and summer semesters, or
4 8 the trimester or quarter equivalent, shall be equal to the
4 9 amount of a proprietary tuition grant that would be paid to a
4 10 full=time student times a number which represents the number
4 11 of hours in which the part=time student is actually enrolled
4 12 divided by twelve semester hours, or the trimester or quarter
4 13 equivalent.
4 14 7. A proprietary tuition grant shall be awarded on an
4 15 annual basis. Payments under the grant shall be allocated
4 16 equally among the semesters, trimesters, or quarters and shall
4 17 be paid at the beginning of each semester, trimester, or
4 18 quarter upon certification by the accredited proprietary
4 19 institution that the student is admitted and in attendance.
4 20 If the student discontinues attendance before the end of any
4 21 semester, trimester, or quarter after receiving payment under
4 22 the grant, the entire amount of any refund due that student,
4 23 up to the amount of any payments made under the annual grant,
4 24 shall be paid by the proprietary institution to the state.
4 25 8. If a student receives financial aid under any other
4 26 program, the full amount of such financial aid shall be
4 27 considered part of the student's financial resources available
4 28 in determining the amount of the student's financial need for
4 29 that period. In no case may the state's total financial
4 30 contribution to the student's education, including financial
4 31 aid under any other state program, exceed the tuition and
4 32 mandatory fees at the proprietary institution the student
4 33 attends.
4 34 9. The commission shall administer this program and shall
4 35 do the following:
5 1 a. Provide application forms and parents' confidential
5 2 statement forms.
5 3 b. Adopt rules and regulations for determining financial
5 4 need, defining tuition and mandatory fees, defining residence
5 5 for the purposes of this section, processing and approving
5 6 applications for proprietary tuition grants, and determining
5 7 priority of grants. The commission may provide for proration
5 8 of funds if the available funds are insufficient to pay all
5 9 approved grants. Such proration shall take primary account of
5 10 the financial need of the applicant. In determining who is a
5 11 resident of Iowa, the commission's rules shall be at least as
5 12 restrictive as those of the board of regents.
5 13 c. Approve and award proprietary tuition grants.
5 14 d. Make an annual report to the governor and general
5 15 assembly, and evaluate the proprietary tuition grant program
5 16 for the period. The commission may require a proprietary
5 17 institution to promptly furnish any information which the
5 18 commission may request in connection with the proprietary
5 19 tuition grant program.
5 20 Sec. 6. Section 261.25, subsection 1, Code Supplement
5 21 2005, is amended to read as follows:
5 22 1. There is appropriated from the general fund of the
5 23 state to the commission for each fiscal year the sum of forty=
5 24 nine forty=four million six seven hundred seventy=three six
5 25 thousand five two hundred seventy=five seventeen dollars for
5 26 tuition grants. From the funds appropriated in this
5 27 subsection, an amount equal to ten percent of the funds
5 28 appropriated in this subsection shall be reserved for
5 29 distribution to students attending private institutions whose
5 30 income is not exempt from taxation under section 501(c) of the
5 31 Internal Revenue Code and whose students were eligible to
5 32 receive Iowa tuition grant moneys in the fiscal year beginning
5 33 July 1, 2003. A for=profit institution which, effective March
5 34 9, 2005, purchased an accredited private institution that was
5 35 exempt from taxation under section 501(c) of the Internal
6 1 Revenue Code, shall be an eligible institution under the Iowa
6 2 tuition grant program. In the case of a qualified student who
6 3 was enrolled in such accredited private institution that was
6 4 purchased by the for=profit institution effective March 9,
6 5 2005, and who continues to be enrolled in the eligible
6 6 institution in succeeding years, the amount the student
6 7 qualifies for under this subsection shall be not less than the
6 8 amount the student qualified for in the fiscal year beginning
6 9 July 1, 2004.
6 10 Sec. 7. Section 261.25, Code Supplement 2005, is amended
6 11 by adding the following new subsection:
6 12 NEW SUBSECTION. 1A. There is appropriated from the
6 13 general fund of the state to the commission for each fiscal
6 14 year the sum of four million nine hundred sixty=seven thousand
6 15 three hundred fifty=eight dollars for proprietary tuition
6 16 grants as provided in section 261.18.
6 17 EXPLANATION
6 18 This bill creates the Iowa proprietary tuition grant
6 19 program for students who are enrolled in and attending for=
6 20 profit, proprietary postsecondary institutions. The program
6 21 is modeled after the Iowa tuition grant program, and the bill
6 22 provides a standing annual appropriation from the general fund
6 23 of the state of nearly $5 million to fund the program, while
6 24 reducing the amount appropriated to the tuition grant program
6 25 by the same amount.
6 26 DEFINITIONS. The bill defines "proprietary tuition grant"
6 27 and changes the definition of "tuition grant" to provide that
6 28 the term does not include a proprietary tuition grant. The
6 29 bill defines "proprietary institution" as a for=profit
6 30 institution located in Iowa which is not tax=exempt, operated
6 31 privately, is accredited by the north central association of
6 32 colleges and secondary schools accrediting agency, and
6 33 annually provides a matching aggregate amount of institutional
6 34 financial aid in the same percentage amounts required of
6 35 accredited private institutions whose students are eligible
7 1 for the Iowa tuition grant.
7 2 REQUIREMENTS. The institutions must file annual reports
7 3 with the commission and, like accredited private institutions,
7 4 promote equal opportunity and affirmative action efforts in
7 5 the recruitment, appointment, assignment, and advancement of
7 6 personnel at the institution; adopt a policy that prohibits
7 7 unlawful possession, use, or distribution of controlled
7 8 substances by students and employees on property owned or
7 9 leased by the institution or in conjunction with activities
7 10 sponsored by the institution; develop and implement a written
7 11 policy addressing sexual abuse; and adopt a policy to offer
7 12 certain specified options to students who are members of the
7 13 Iowa national guard or reserve forces of the United States and
7 14 who are ordered to state military service or federal service
7 15 or duty.
7 16 STATE FINANCIAL AID LIMITATION. The bill provides that a
7 17 qualified full=time resident student may receive state
7 18 financial aid in the form of proprietary tuition grants or
7 19 Iowa tuition grants for not more than eight semesters of
7 20 undergraduate study or the trimester or quarter equivalent.
7 21 The bill also provides similar language limiting the amount of
7 22 state financial aid qualified part=time resident students may
7 23 receive to not more than 16 semesters of undergraduate study
7 24 or the trimester or quarter equivalent.
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