Senate File 2267 - Introduced SENATE FILE 2267 BY COMMITTEE ON EDUCATION (SUCCESSOR TO SSB 3167) A BILL FOR An Act concerning oversight of schools offering postsecondary 1 educational programs by the college student aid commission 2 and making penalties applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5342SV (2) 84 je/sc

S.F. 2267 DIVISION I 1 POSTSECONDARY REGISTRATION —— REQUIREMENTS 2 Section 1. Section 261B.2, Code 2011, is amended to read as 3 follows: 4 261B.2 Definitions. 5 As used in this chapter , unless the context otherwise 6 requires: 7 1. “Commission” means the college student aid commission 8 created pursuant to section 261.1 . 9 2. “Course of instruction” means a postsecondary educational 10 program that a school offers through in-person instruction, 11 distance delivery, correspondence study methods, or any 12 combination thereof. 13 2. 3. “Degree” means a postsecondary credential conferring 14 on the recipient the title of associate, bachelor, master, 15 or doctor, or an equivalent title, signifying educational 16 attainment based on any one or a combination of study or 17 the equivalent which may be supplemented by experience or 18 achievement testing. A postsecondary degree under this chapter 19 shall not include an honorary degree or other unearned degree. 20 3. 4. “Presence” means maintaining an address within Iowa 21 a location in Iowa at which a student participates in any 22 structured activity related to a school’s distance education 23 course of instruction, with the exception of proctored 24 examinations. “Presence” also means an address, location, 25 telephone number, or internet protocol address in Iowa from 26 which a school conducts any aspect of its operations. For the 27 purpose of a residential course of instruction offered on a 28 school’s campus that is not located in Iowa, “presence” does not 29 include: 30 a. Occasional, short-term activities conducted at a location 31 in Iowa for the purpose of recruiting students for the school’s 32 residential course of instruction. 33 b. A residency, practicum, internship, clinical, or 34 similar experience that the school permits the student to 35 -1- LSB 5342SV (2) 84 je/sc 1/ 21

S.F. 2267 participate in at a location in Iowa, provided that a person 1 who provides instruction or supervision at the Iowa location is 2 not compensated by the school . 3 4. 5. “School” means an agency of the state or political 4 subdivision of the state, individual, partnership, company, 5 firm, society, trust, association, corporation, or any 6 combination which meets any of the following criteria: 7 a. Is, owns, or operates a nonprofit postsecondary 8 educational institution. 9 b. Provides a postsecondary instructional program or course 10 of instruction leading to a degree. 11 c. Uses in its name the term “college” , “academy” , 12 “institute” , or “university” or a similar term to imply that the 13 person is primarily engaged in the education of students at the 14 postsecondary level, and which makes a charge for its services. 15 5. 6. “Student” means a person who enrolls in or seeks to 16 enroll in a course of instruction offered or conducted by a 17 school. 18 Sec. 2. Section 261B.3, Code 2011, is amended to read as 19 follows: 20 261B.3 Registration. 21 1. Except as provided in section 261B.11 , a school that 22 maintains or shall register with the commission if a person 23 compensated by the school conducts one or more courses any 24 portion of a course of instruction , including courses of 25 instruction by correspondence or other distance delivery 26 method, offered in this state or which if the school otherwise 27 has a presence in this state and offers courses in other states 28 or foreign countries shall register with the commission . 29 a. Registrations shall be renewed every four two years 30 or and shall be amended upon any substantive change in 31 location , program offering, or accreditation. A school makes 32 a substantive change in a program offering when the school 33 proposes to offer or modify a program that requires the 34 approval of the state board of education or any other state 35 -2- LSB 5342SV (2) 84 je/sc 2/ 21

S.F. 2267 agency authorized to approve the school or its program in this 1 state. 2 b. Registration shall be made on application forms approved 3 and supplied made available by the commission and at the time 4 and in the manner prescribed by the commission. Upon receipt 5 of a complete and accurate registration application, the 6 commission shall issue an acknowledgment of document filed and 7 send it to the school. 8 2. The commission may request require a school to provide 9 additional information as the commission deems necessary 10 to enable the commission to determine the accuracy and 11 completeness of the information contained in the evaluate a 12 school’s suitability for registration application . 13 3. The commission shall notify a school in writing of its 14 decision to grant or deny registration and any stipulation 15 associated with the school’s registration. 16 4. If a school fails to meet any of the registration 17 criteria, or if the commission believes that false, misleading, 18 or incomplete information has been submitted in connection 19 with an application for registration, the commission may 20 deny registration. The commission shall conduct a hearing 21 on the denial if a hearing is requested by a school. The 22 commission may withhold an acknowledgment of document filed 23 pending the outcome of the hearing. Upon a finding after the 24 hearing that the school fails to meet any of the registration 25 criteria, or that information contained in the registration 26 application is false, misleading, or incomplete, the commission 27 shall deny an acknowledgment of document filed to the school 28 registration . The commission shall make the final decision on 29 each registration. However, the decision of the commission is 30 subject to judicial review in accordance with section 17A.19 . 31 3. 5. The commission shall adopt rules under chapter 17A 32 for the implementation of this chapter . 33 Sec. 3. Section 261B.3A, Code 2011, is amended to read as 34 follows: 35 -3- LSB 5342SV (2) 84 je/sc 3/ 21

S.F. 2267 261B.3A Requirements. 1 1. In order to register, a school shall be accredited 2 by an agency or organization approved or recognized by the 3 United States department of education or a successor agency, 4 be approved by any other state agency authorized to approve 5 the school in this state, and, subsequently, be approved for 6 operation by the commission. 7 2. A practitioner preparation program , as defined in 8 section 272.1, operated by a school that applies to register 9 the program in accordance with this chapter shall, in order to 10 register, be accredited by an agency or organization approved 11 or recognized by the United States department of education or a 12 successor agency, be approved by the state board of education 13 pursuant to section 256.7, subsection 3 , and, subsequently, be 14 approved for operation by the commission. 15 3. The commission may grant a provisional registration to 16 a school that is not accredited by an agency or organization 17 that is recognized by the United States department of education 18 or its successor agency. The commission shall determine 19 the duration of the provisional registration. During the 20 provisional registration period, the school shall, at six-month 21 intervals, submit to the commission documentation of its 22 progress toward achieving accreditation. The commission may 23 renew the school’s provisional registration at its discretion 24 if the documentation submitted indicates that the school is 25 making progress toward accreditation. 26 3. 4. Nothing in this chapter shall be construed to exempt 27 a school from the requirements of chapter 490 , or 491 , or 714 . 28 Sec. 4. Section 261B.4, Code 2011, is amended to read as 29 follows: 30 261B.4 Registration information. 31 As a basis for registration, schools shall provide the 32 commission with the following information: 33 1. The name or title of the school. 34 2. The As applicable, the principal location of the school 35 -4- LSB 5342SV (2) 84 je/sc 4/ 21

S.F. 2267 in this state, in other states, and in foreign countries, and 1 the location of the place or places in this state, in other 2 states, and in foreign countries where instruction is likely 3 to be given. 4 3. A schedule of the total tuition charges, fees, and other 5 costs payable to the school by a student during the course of 6 instruction . 7 4. The refund policy of the school for the return of 8 refundable portions of tuition, fees, or other charges. 9 The tuition refund policy for Iowa resident students of a 10 for-profit school with at least one program of more than 11 four months in length that leads to a recognized educational 12 credential, such as an academic or professional degree, 13 diploma, or license, must comply with section 714.23. 14 5. The degrees granted by the school. 15 6. 5. The names and addresses of the principal owners of 16 the school or the officers and members of the legal governing 17 body of the school. 18 7. 6. The name and address of the chief executive officer 19 of the school. 20 8. 7. A copy of or a description of the means by which the 21 school intends to comply with section 261B.9 . 22 9. 8. The name of the accrediting agency recognized by the 23 United States department of education or a successor agency 24 which has accredited the school , and the status under which 25 accreditation is held , the name of any other accrediting or 26 licensing entity that has accredited or licensed the school or 27 its programs, a copy of the accrediting or licensure notice 28 issued by the entity, and a record of any sanctions the entity 29 has levied against the school . 30 10. 9. The name, address, and telephone number of a contact 31 person in this state. A school that applies for registration 32 to offer a course of instruction by distance delivery may 33 provide the name and address of its registered agent in Iowa. 34 11. 10. The names or titles and a description of the 35 -5- LSB 5342SV (2) 84 je/sc 5/ 21

S.F. 2267 courses and degrees to be offered in Iowa . 1 12. 11. A description of procedures for the preservation 2 of student records and the contact information to be used 3 by students and graduates who seek to obtain transcript 4 information . 5 13. 12. The academic and instructional methodologies and 6 delivery systems to be used by the school and the extent to 7 which the school anticipates each methodology and delivery 8 system will be used, including , but not limited to , classroom 9 instruction, correspondence, electronic telecommunications 10 distance delivery , independent study, and portfolio experience 11 evaluation. 12 13. The name, title, business address, telephone number, 13 and resume of an Iowa resident compensated by the school to 14 perform duties at a location in Iowa. A school that applies 15 for registration to offer a course of instruction by distance 16 delivery may provide an internet address as the business 17 address for an Iowa resident it compensates to perform duties 18 remotely from a location in Iowa. 19 14. The school’s official Stafford loan cohort default rate 20 as calculated by the United States department of education for 21 the three most recent federal fiscal years, if applicable. 22 15. Average student loan debt upon graduation of students 23 completing programs at the school. 24 16. The graduation rate of undergraduate students as 25 reported to the United States department of education. 26 17. Evidence that the school meets the conditions of 27 financial responsibility established in section 714.18, or that 28 the school qualifies for an exemption under section 714.19 or 29 714.22. 30 Sec. 5. Section 261B.7, Code 2011, is amended to read as 31 follows: 32 261B.7 Unauthorized representation. 33 Neither a A school nor its or a school’s officials or 34 employees shall not advertise or represent that the school is 35 -6- LSB 5342SV (2) 84 je/sc 6/ 21

S.F. 2267 approved or accredited by the commission or the state of Iowa 1 nor shall it use the registration as a reference in promotional 2 materials . However, a registered school shall disclose that 3 the school is registered by the commission on behalf of the 4 state of Iowa and provide the commission’s contact information 5 for students who wish to inquire about the school or file a 6 complaint . 7 Sec. 6. Section 261B.9, subsection 5, Code 2011, is amended 8 to read as follows: 9 5. Whether the postsecondary credential or certificate 10 issued, awarded, or credited to a student upon completion 11 of the course or the fact of completion of the course is 12 applicable toward a degree granted by the school and, if so, 13 under what circumstances the application will be made. 14 Sec. 7. Section 261B.9, Code 2011, is amended by adding the 15 following new subsection: 16 NEW SUBSECTION . 7. The disclosures required by the 17 department of education for an out-of-state school that the 18 board of education approves to offer a practitioner preparation 19 program by distance delivery method. 20 Sec. 8. Section 261B.11, Code 2011, is amended to read as 21 follows: 22 261B.11 Exceptions. 23 1. This chapter does not apply to the following types of 24 schools and courses of instruction: 25 1. a. Schools and educational programs conducted by firms, 26 corporations, or persons solely for the training of their own 27 employees. 28 2. b. Apprentice or other training programs provided by 29 labor unions solely to members or applicants for membership. 30 3. c. Courses of instruction of an avocational or 31 recreational nature that do not lead to an occupational 32 objective. 33 4. d. Seminars, refresher courses, and programs of 34 instruction sponsored by professional, business, or farming 35 -7- LSB 5342SV (2) 84 je/sc 7/ 21

S.F. 2267 organizations or associations for the members and employees of 1 members of these organizations or associations. 2 5. e. Courses of instruction conducted by a public school 3 district or a combination of public school districts. 4 6. f. Colleges and universities authorized by the laws of 5 this state to grant degrees. 6 7. g. Schools or courses of instruction or courses of 7 training that are offered by a vendor solely to the purchaser 8 or prospective purchaser of the vendor’s product when the 9 objective of the school or course is to enable the purchaser 10 or the purchaser’s employees to gain skills and knowledge to 11 enable the purchaser to use the product. 12 8. h. Schools and educational programs conducted by 13 religious organizations solely for the religious instruction of 14 leadership practitioners of that religious organization. 15 9. i. Postsecondary educational institutions licensed by 16 the state of Iowa prior to July 1, 2009, under section 157.8 17 or 158.7 to conduct business operate as schools of cosmetology 18 arts and sciences or as barber schools in the state. 19 10. j. Accredited higher Higher education institutions 20 that meet the criteria established under section 261.92, 261.9, 21 subsection 1 . 22 11. k. Postsecondary educational institutions offering 23 programs limited to nondegree specialty vocational training 24 programs. 25 12. Not-for-profit colleges and universities established 26 and authorized by city ordinance to grant degrees. 27 l. Higher education institutions located in Iowa that are 28 affiliated with health care systems located in Iowa, and which 29 offer health professions programs that are accredited by an 30 accrediting agency recognized by the United States department 31 of education. 32 m. Higher education institutions located in Iowa whose 33 massage therapy curriculum is approved under administrative 34 rules of the professional licensure division of the department 35 -8- LSB 5342SV (2) 84 je/sc 8/ 21

S.F. 2267 of public health and whose instructors are licensed massage 1 therapists under chapter 152C. 2 2. A school that claims an exemption from registration 3 under subsection 1, paragraph “h” , “i” , “k” , “l” , or “m” , must 4 demonstrate to the commission or its designee that it qualifies 5 for the exemption. The school must apply for approval of its 6 exemption claim on an application supplied by the commission. 7 The commission or its designee may approve the school’s 8 exemption claim or deny it. A school whose exemption claim is 9 approved must reapply to renew its exemption no less frequently 10 than every two years. 11 a. A school that is granted an exemption under this section 12 must file evidence of financial responsibility under section 13 714.18 or demonstrate to the commission or its designee that 14 the school qualifies for an exemption under section 714.19 or 15 714.22. 16 b. A for-profit school with at least one program of 17 more than four months in length that leads to a recognized 18 educational credential, such as an academic or professional 19 degree, diploma, or license, must submit to the commission or 20 its designee a tuition refund policy that meets the conditions 21 of section 714.23. 22 3. A school that is denied an exemption claim by the 23 commission or its designee, or that no longer qualifies for 24 a claimed exemption, shall apply for registration or cease 25 operating in Iowa. 26 Sec. 9. NEW SECTION . 261B.11A Ineligibility for state 27 student aid programs. 28 1. Students attending schools required to register under 29 this chapter are ineligible for state student financial aid 30 programs established under chapter 261. 31 2. A school required to register under this chapter is 32 prohibited from offering state aid or advertising that state 33 aid is or may be available to students attending the school. 34 DIVISION II 35 -9- LSB 5342SV (2) 84 je/sc 9/ 21

S.F. 2267 POSTSECONDARY REGISTRATION —— UNLAWFUL ACTIVITY 1 Sec. 10. Section 714.17, Code 2011, is amended to read as 2 follows: 3 714.17 Unlawful advertising and selling of educational 4 courses of instruction . 5 It shall be unlawful for any person, firm, association, 6 or corporation maintaining, advertising, or conducting in 7 Iowa any educational course of instruction for profit, or 8 for tuition charge, whether by classroom instructions , or by 9 correspondence, or by other delivery method to: 10 1. Falsely advertise or represent to any person any matter 11 material to such an educational course of instruction . All 12 advertising of such courses of instruction shall adhere to and 13 comply with the applicable rules and regulations of the federal 14 trade commission as of July 4, 1965 . 15 2. Collect tuition or other charges in excess of one hundred 16 fifty dollars in the case of educational courses offered by 17 correspondence courses of study , in advance of the receipt and 18 approval by the pupil of the first assignment or lesson of such 19 course. Any contract providing for advance payment of more 20 than one hundred fifty dollars shall be voidable on the part of 21 the pupil or any person liable for the tuition provided for in 22 the contract. 23 3. Promise or guarantee employment utilizing information, 24 training, or skill purported to be provided or otherwise 25 enhanced by a an educational course, unless the promisor or 26 guarantor offers the student or prospective student a bona 27 fide contract of employment agreeing to employ said student 28 or prospective student for a period of not less than one 29 hundred twenty days in a business or other enterprise regularly 30 conducted by the promisor or guarantor and in which such 31 information, training, or skill is a normal condition of 32 employment. 33 Sec. 11. Section 714.18, subsection 1, Code 2011, is amended 34 to read as follows: 35 -10- LSB 5342SV (2) 84 je/sc 10/ 21

S.F. 2267 1. Except as otherwise provided in subsection 2 , every 1 person, firm, association, or corporation maintaining or 2 conducting in Iowa any such educational course of instruction 3 by classroom instruction or by correspondence or by other 4 distance delivery method, or soliciting in Iowa the sale of 5 such course, shall file with the college student aid commission 6 all of the following: 7 a. A continuous corporate surety bond to the state of 8 Iowa in the sum of fifty thousand dollars conditioned for 9 on the faithful performance of all contracts and agreements 10 with students made by such person, firm, association, or 11 corporation, or their salespersons; but the aggregate liability 12 of the surety for all breaches of the conditions of the bond 13 shall not exceed the sum of the bond. The surety on the bond 14 may cancel the bond upon giving thirty days’ written notice 15 to the college student aid commission and thereafter shall be 16 relieved of liability for any breach of condition occurring 17 after the effective date of the cancellation. 18 b. A statement designating a resident agent for the purpose 19 of receiving service in civil actions. In the absence of such 20 designation, service may be had upon the secretary of state if 21 service cannot otherwise be made in this state. 22 c. A copy of any catalog, prospectus, brochure, or other 23 advertising material intended for distribution in Iowa. 24 Such material shall state the cost of the educational course 25 offered, the schedule of tuition refunds for portions of the 26 educational course not completed, and if no refunds are to 27 be paid, the material shall so state. Any contract induced 28 by advertising materials not previously filed as provided in 29 this chapter shall be voidable on the part of the pupil or any 30 person liable for the tuition provided for in the contract. 31 Sec. 12. Section 714.18, subsection 2, paragraph a, 32 subparagraphs (1) and (4), Code 2011, are amended to read as 33 follows: 34 (1) A continuous corporate surety bond to the state of 35 -11- LSB 5342SV (2) 84 je/sc 11/ 21

S.F. 2267 Iowa in the sum of fifty thousand dollars or ten percent 1 of the total annual tuition collected, whichever is less, 2 conditioned for on the faithful performance of all contracts 3 and agreements with students made by such school. A school 4 desiring to file a surety bond based on a percentage of annual 5 tuition shall provide to the college student aid commission, in 6 the form prescribed by the commission, a notarized statement 7 attesting to the total amount of tuition collected in the 8 preceding twelve-month period. The commission shall determine 9 the sufficiency of the statement and the amount of the bond. 10 Tuition information submitted pursuant to this subparagraph 11 shall be kept confidential. 12 (4) The college student aid commission may accept a letter 13 of credit from issued by a bank in lieu of and for the amount of 14 the corporate surety bond required by this paragraph “a” 15 subparagraphs (1) through (3), as applicable . 16 Sec. 13. Section 714.19, unnumbered paragraph 1, Code 2011, 17 is amended to read as follows: 18 None of the The provisions of sections 714.17 to 714.22 19 714.21 shall not apply to the following: 20 Sec. 14. Section 714.19, subsections 6 through 8, Code 2011, 21 are amended to read as follows: 22 6. Schools and educational programs conducted by firms, 23 corporations, or persons for the training of their own 24 employees, for which no fee is charged. 25 7. Seminars, refresher courses , and schools of instruction 26 sponsored conducted by professional, business, or farming 27 organizations or associations for the members and employees of 28 members of such organizations or associations. A person who 29 provides instruction under this subsection who is not a member 30 or an employee of a member of the organization or association 31 shall not be eligible for this exemption. 32 8. Private business schools accredited by the accrediting 33 commission for business schools or an acknowledged accrediting 34 agency recognized by the United States department of education 35 -12- LSB 5342SV (2) 84 je/sc 12/ 21

S.F. 2267 or the council for higher education accreditation . 1 Sec. 15. Section 714.19, Code 2011, is amended by adding the 2 following new subsection: 3 NEW SUBSECTION . 10. Private, nonprofit schools that meet 4 the criteria established under section 261.9, subsection 1. 5 Sec. 16. Section 714.23, Code 2011, is amended by adding the 6 following new subsection: 7 NEW SUBSECTION . 01. a. For the purposes of this section 8 and section 714.25, “postsecondary educational program” means 9 a series of postsecondary educational courses that lead to 10 a recognized educational credential such as an academic or 11 professional degree, diploma, or license. 12 b. For the purposes of this section, “school period” means 13 the course, term, payment period, postsecondary educational 14 program, or other period for which the school assessed tuition 15 charges to the student. A school that assesses tuition charges 16 to the student at the beginning of each course, term, payment 17 period, or other period that is shorter than the postsecondary 18 educational program’s length shall base its tuition refund on 19 the amount of tuition costs the school charged for the course, 20 term, or other period in which the student terminated. A 21 school shall not base its tuition refund calculation on any 22 portion of a postsecondary educational program that remains 23 after a student terminates unless the student was charged for 24 that remaining portion of the postsecondary educational program 25 before the student’s termination. 26 Sec. 17. Section 714.23, subsections 1 through 5, Code 2011, 27 are amended to read as follows: 28 1. A person offering a course of instruction at the 29 postsecondary level at least one postsecondary educational 30 program , for profit, that is more than four months in 31 length and leads to a degree, diploma, or license recognized 32 educational credential , shall make a pro rata refund of no less 33 than ninety percent of the tuition for a terminating student to 34 the appropriate agency based upon charges to an Iowa resident 35 -13- LSB 5342SV (2) 84 je/sc 13/ 21

S.F. 2267 student who terminates from any of the school’s postsecondary 1 educational programs in an amount that is not less than 2 ninety percent of the amount of tuition charged to the student 3 multiplied by the ratio of completed number of scheduled school 4 days to the number of calendar days remaining in the school 5 period until the date equivalent to the completion of sixty 6 percent of the scheduled school calendar days of in the school 7 term or course period to the total number of calendar days in 8 the school period until the date equivalent to the completion 9 of sixty percent of the calendar days in the school period . 10 2. Notwithstanding the provisions of subsection 1 , the 11 following tuition refund policy shall apply: 12 a. If a terminating student has completed sixty percent or 13 more of a school term or course that is more than four months in 14 length period , the person offering the course of instruction 15 postsecondary educational program is not required to refund 16 tuition for charges to the student. However, if, at any time, 17 a student terminates a school term or course that is more than 18 four months in length postsecondary educational program due 19 to the student’s physical incapacity or , for a program that 20 requires classroom instruction, due to the transfer of the 21 student’s spouse’s employment to another city, the terminating 22 student shall receive a refund of tuition charges in an amount 23 which that equals the amount of tuition charged to the student 24 multiplied by the ratio of the remaining number of school 25 calendar days in the school period to the total school number 26 of calendar days of in the school term or course period . 27 b. A refund of ninety percent of the tuition for a 28 terminating student shall be paid to the appropriate agency 29 based upon the ratio of completed number of school days to 30 the total school days of the school term or course. A school 31 shall provide to a terminating student a refund of tuition 32 charges in an amount that is not less than ninety percent of 33 the amount of tuition charged to the student multiplied by the 34 ratio of the remaining number of calendar days in the school 35 -14- LSB 5342SV (2) 84 je/sc 14/ 21

S.F. 2267 period to the total number of calendar days in the school 1 period. This paragraph “b” applies to those persons offering 2 courses of instruction at the postsecondary level at least one 3 postsecondary educational program of more than four months in 4 length , for profit, whose cohort default rate for students 5 under the Stafford loan program as defined reported by the 6 United States department of education for the most recent 7 federal fiscal year is more than one hundred ten percent of the 8 national average cohort default rate of all schools for that 9 program for that period the same federal fiscal year or six 10 percent, whichever is higher. 11 3. If the financial obligations of a student are for three 12 or fewer months duration, this section does not apply. In the 13 case of a program in which student progress is measured only in 14 clock hours, all occurrences of “calendar days” in subsections 15 1 and 2 shall be replaced with “scheduled clock hours”. 16 4. Refunds A refund of tuition charges shall be paid 17 provided to the appropriate agency student within thirty 18 forty-five days following the student’s termination date of the 19 school’s determination that a student has terminated from a 20 postsecondary educational program . 21 5. A student who terminates a course of instruction or 22 term postsecondary educational program shall not be charged 23 any fee or other monetary penalty for terminating a course of 24 instruction or term the postsecondary educational program, 25 other than a reduction in tuition refund as specified in this 26 section . 27 Sec. 18. NEW SECTION . 714.24 Additional requirements. 28 1. A required filing of evidence of financial 29 responsibility pursuant to section 714.18 must be completed at 30 least once every two years. 31 2. An entity that claims an exemption under section 714.19 32 or 714.22 must file an exemption claim with the commission. 33 The commission may approve or deny the exemption claim. Except 34 for a school that claims an exemption under section 714.19, 35 -15- LSB 5342SV (2) 84 je/sc 15/ 21

S.F. 2267 subsection 1, 3, or 10, a filing of a claim for an exemption 1 pursuant to section 714.19 or 714.22 must be completed at least 2 once every two years. 3 3. An entity that claims an exemption under section 714.19 4 or 714.22 must file evidence of financial responsibility 5 pursuant to section 714.18 within sixty calendar days following 6 the date upon which conditions that qualify the entity for an 7 exemption under section 714.19 no longer exist. The commission 8 may grant an entity a longer period to file evidence of 9 financial responsibility based on documentation the entity 10 provides to the commission of its substantial progress to 11 comply with section 714.18, subsection 1, paragraph “a” . 12 4. An entity that is required to file evidence of financial 13 responsibility under section 714.18, or an entity that files 14 a claim of exemption under section 714.19 or 714.22, shall 15 utilize required forms approved and supplied by the commission. 16 5. The commission may, at its discretion, require a 17 proprietary school that must comply with section 714.23 to 18 submit its tuition refund policy to the commission for its 19 review and approval. 20 6. The commission and the attorney general may, 21 individually or jointly, adopt rules pursuant to chapter 17A 22 for the implementation of sections 714.18 through 714.25. 23 7. Except as provided in section 714.18, subsection 2, 24 paragraph “a” , the information submitted under sections 714.18, 25 714.22, 714.23, and 714.25 are public records under chapter 22. 26 Sec. 19. Section 714.25, Code 2011, is amended to read as 27 follows: 28 714.25 Disclosure. 29 1. For purposes of this chapter section , unless the 30 context otherwise requires, “proprietary school” means a person 31 offering a course of instruction at the postsecondary level 32 postsecondary educational program , for profit, that is more 33 than four months in length and leads to a degree, diploma, or 34 license recognized educational credential, such as an academic 35 -16- LSB 5342SV (2) 84 je/sc 16/ 21

S.F. 2267 or professional degree, diploma, or license . 1 2. A proprietary school shall, prior to the time a student 2 is obligated for payment of any moneys, inform the student, the 3 college student aid commission, and in the case of a school 4 licensed under section 157.8 , the board of cosmetology arts 5 and sciences or in the case of a school licensed under section 6 158.7 , the board of barbering, of all of the following: 7 a. The total cost of the course of instruction postsecondary 8 educational program as charged by the proprietary school. 9 b. An estimate of any fees which may be charged the 10 student by others which would be required if the student is 11 to successfully complete the course postsecondary educational 12 program and , if applicable, obtain a degree, diploma, or 13 license recognized educational credential . 14 c. The percentage of students who successfully complete 15 the course postsecondary educational program , the percentage 16 who terminate prior to completing the course postsecondary 17 educational program , and the period of time upon which the 18 proprietary school has based these percentages. The reporting 19 period shall not be less than one year in length and shall not 20 extend more than five years into the past. 21 d. If claims are made by the proprietary school as to 22 successful placement of students in jobs upon completion of the 23 course of study proprietary school’s postsecondary educational 24 programs , the proprietary school shall provide the student with 25 all of the following: 26 (1) The percentage of graduating students who were placed 27 in jobs in fields related to the course of instruction 28 postsecondary educational programs . 29 (2) The percentage of graduating students who went on to 30 further education immediately upon graduation. 31 (3) The percentage of students who, ninety days after 32 graduation, were without a job and had not gone on to further 33 education. 34 (4) The period of time upon which the reports required by 35 -17- LSB 5342SV (2) 84 je/sc 17/ 21

S.F. 2267 paragraphs “a” through “c” were based. The reporting period 1 shall not be less than one year in length and shall not extend 2 more than five years into the past. 3 e. If claims are made by the proprietary school as to income 4 levels of students who have graduated and are working in fields 5 related to the proprietary school’s course of instruction 6 postsecondary educational programs , the proprietary school 7 shall inform the student of the method used to derive such 8 information. 9 3. The requirements of subsection 2 shall not apply to 10 a proprietary school that is eligible for federal student 11 financial aid under Tit. IV of the federal Higher Education Act 12 of 1965, as amended. 13 Sec. 20. REPEAL. Section 714.22, Code 2011, is repealed. 14 EXPLANATION 15 This bill makes changes regarding oversight by the college 16 student aid commission of schools offering postsecondary 17 educational programs. 18 Division I of the bill makes various changes relating to the 19 college student aid commission’s registration requirements for 20 postsecondary schools governed by Code chapter 261B. 21 The bill expands the definition of a postsecondary school 22 which maintains a presence in Iowa to include, with certain 23 exceptions, a location in the state at which a student 24 participates in any structured activity related to a school’s 25 distance education course of instruction, as well as any 26 address, location, telephone number, or internet protocol 27 address in Iowa from which the school conducts any aspect of 28 its operations. 29 The bill requires postsecondary schools to renew 30 registration with the commission every two years instead of 31 every four years. 32 The bill allows the commission to grant a provisional 33 registration to a postsecondary school that is not accredited 34 by an agency or organization that is recognized by the United 35 -18- LSB 5342SV (2) 84 je/sc 18/ 21