S.F. _____ H.F. _____ Section 1. Section 261B.2, subsections 2 and 3, Code 2011, 1 are amended to read as follows: 2 2. “Degree” means a postsecondary credential conferring 3 on the recipient the title of associate, bachelor, master, 4 or doctor, or an equivalent title , signifying educational 5 attainment based on any one or a combination of study or the 6 equivalent experience or achievement testing. A postsecondary 7 degree under this chapter shall not include an honorary degree 8 or other unearned degree . 9 3. “Presence” means maintaining an address within Iowa 10 a physical location in Iowa from which a school offers any 11 portion of a course of instruction in person or by distance 12 education or correspondence study, or conducts advertising, 13 recruiting, enrollment, program coordination, administration, 14 or any other activity related to the school’s operations . 15 Sec. 2. Section 261B.2, Code 2011, is amended by adding the 16 following new subsections: 17 NEW SUBSECTION . 2A. “Offered in this state” means the 18 school offers any portion of a course of instruction at a 19 physical location in this state. 20 NEW SUBSECTION . 2B. “Postsecondary credential” means 21 a degree, diploma, or certificate signifying postsecondary 22 educational attainment following completion of a postsecondary 23 instructional program. A postsecondary credential conferred 24 under this chapter shall not include an honorary credential or 25 other unearned credential. A postsecondary credential under 26 this chapter does not mean a certificate of completion of a 27 course of instruction. 28 Sec. 3. Section 261B.2, subsection 4, paragraph b, Code 29 2011, is amended to read as follows: 30 b. Provides a postsecondary instructional program or course 31 leading to a degree postsecondary credential . 32 Sec. 4. Section 261B.3, Code 2011, is amended to read as 33 follows: 34 261B.3 Registration. 35 -1- LSB 1204DP (13) 84 kh/sc 1/ 7

S.F. _____ H.F. _____ 1. Except as provided in section 261B.11 , a school that 1 shall register with the commission if the school maintains or 2 conducts one or more courses of instruction offered in this 3 state , including courses of instruction by correspondence or 4 other distance delivery method, offered in this state or which 5 if the school has a presence in this state and offers courses 6 in this state or in other states or foreign countries shall 7 register with the commission . 8 a. Registrations shall be renewed every four years or 9 upon any substantive change in location , program offerings, 10 or accreditation. A school makes a substantive change in a 11 program offering when the school proposes to offer or modify 12 a program that requires the approval of the state board of 13 education or any other state agency authorized to approve the 14 school or its program in this state. 15 b. Registration shall be made on application forms approved 16 and supplied made available by the commission and at the time 17 and in the manner prescribed by the commission. Upon receipt 18 of a complete and accurate registration application, the 19 commission shall issue an acknowledgment of document filed and 20 send it to the school. 21 2. The commission may request require a school to provide 22 additional information as the commission deems necessary 23 to enable the commission to determine the accuracy and 24 completeness of the information contained in the evaluate a 25 school’s registration application. 26 3. If the commission believes that false, misleading, 27 or incomplete information has been submitted in connection 28 with an application for registration, the commission may deny 29 registration. The commission shall conduct a hearing on the 30 denial if a hearing is requested by a school. The commission 31 may withhold an acknowledgment of document filed pending the 32 outcome of the hearing. Upon a finding after the hearing 33 that information contained in the registration application is 34 false, misleading, or incomplete, the commission shall deny an 35 -2- LSB 1204DP (13) 84 kh/sc 2/ 7

S.F. _____ H.F. _____ acknowledgment of document filed to the school. The commission 1 shall make the final decision on each registration. However, 2 the decision of the commission is subject to judicial review in 3 accordance with section 17A.19 . 4 3. 4. The commission shall adopt rules under chapter 17A 5 for the implementation of this chapter . 6 Sec. 5. Section 261B.3A, Code 2011, is amended to read as 7 follows: 8 261B.3A Requirements. 9 1. In order to register, a school shall be accredited 10 by an agency or organization approved or recognized by the 11 United States department of education or a successor agency, 12 be approved by any other state agency authorized to approve 13 the school in this state, and, subsequently, be approved for 14 operation by the commission. 15 2. A practitioner preparation program , as defined in 16 section 272.1, operated by a school that applies to register 17 the program in accordance with this chapter shall, in order to 18 register, be accredited by an agency or organization approved 19 or recognized by the United States department of education or a 20 successor agency, be approved by the state board of education 21 pursuant to section 256.7, subsection 3 , and, subsequently, be 22 approved for operation by the commission. 23 3. The commission may grant a provisional registration to 24 a school that is not accredited by an agency or organization 25 that is recognized by the United States department of education 26 or its successor agency. The commission shall determine 27 the duration of the provisional registration. During the 28 provisional registration period, the school shall, at six-month 29 intervals, submit to the commission documentation of its 30 progress toward achieving accreditation. The commission may 31 renew the school’s provisional registration at its discretion 32 based on documentation that the school is making progress 33 toward accreditation. 34 3. 4. Nothing in this chapter shall be construed to exempt 35 -3- LSB 1204DP (13) 84 kh/sc 3/ 7

S.F. _____ H.F. _____ a school from the requirements of chapter 490 or 491 . 1 Sec. 6. Section 261B.4, subsections 5, 11, and 13, Code 2 2011, are amended to read as follows: 3 5. The degrees postsecondary credentials granted by the 4 school. 5 11. The names or titles and a description of the courses and 6 degrees postsecondary credentials to be offered. 7 13. The academic and instructional methodologies and 8 delivery systems to be used by the school and the extent to 9 which the school anticipates each methodology and delivery 10 system will be used, including , but not limited to , classroom 11 instruction, correspondence, electronic telecommunications, 12 independent study, and portfolio experience evaluation. 13 Sec. 7. Section 261B.7, Code 2011, is amended to read as 14 follows: 15 261B.7 Unauthorized representation. 16 Neither a A school nor its or a school’s officials or 17 employees shall not advertise or represent that the school is 18 approved or accredited by the commission or the state of Iowa 19 nor shall it use the registration as a . However, a registered 20 school shall reference in promotional materials that the school 21 is registered by the commission on behalf of the state of Iowa 22 and provide the commission’s contact information for students 23 who wish to register a complaint about the school . 24 Sec. 8. Section 261B.8, subsections 1 and 3, Code 2011, are 25 amended to read as follows: 26 1. The commission shall set by rule and collect , as 27 applicable, a nonrefundable application fee from each 28 registration applicant, and an initial registration fee , a 29 registration amendment fee, and a renewal of registration fee 30 from each registered school. 31 3. a. A postsecondary registration fund is created in 32 the state treasury under the control of the commission. 33 Fees collected under this section shall be deposited in the 34 general postsecondary registration fund of the state and are 35 -4- LSB 1204DP (13) 84 kh/sc 4/ 7

S.F. _____ H.F. _____ appropriated to the commission for purposes of administering 1 this chapter. 2 b. The moneys credited to the postsecondary registration 3 fund are not subject to section 8.33, and moneys in the fund 4 shall not be transferred, used, obligated, appropriated, 5 or otherwise encumbered except as provided by law. 6 Notwithstanding section 12C.7, subsection 2, interest or 7 earnings on moneys deposited in the postsecondary registration 8 fund shall be credited to the fund . 9 Sec. 9. Section 261B.9, subsection 5, Code 2011, is amended 10 to read as follows: 11 5. Whether the postsecondary credential or certificate 12 issued, awarded, or credited to a student upon completion 13 of the course or the fact of completion of the course is 14 applicable toward a degree granted by the school and, if so, 15 under what circumstances the application will be made. 16 Sec. 10. Section 261B.11, subsections 1, 2, 4, 7, 9, and 11, 17 Code 2011, are amended to read as follows: 18 1. Schools and educational programs conducted by firms, 19 corporations, or persons solely for the training of their own 20 employees. 21 2. Apprentice or other training programs provided by labor 22 unions solely to members or applicants for membership. 23 4. Seminars, refresher courses, and programs of instruction 24 sponsored by professional, business, or farming organizations 25 or associations solely for the members and employees of members 26 of these organizations or associations. 27 7. Schools or courses of instruction or courses of 28 training that are offered by a vendor solely to the purchaser 29 or prospective purchaser of the vendor’s product when the 30 objective of the school or course is to enable the purchaser 31 or the purchaser’s employees to gain skills and knowledge to 32 enable the purchaser to use the product. 33 9. Postsecondary educational institutions licensed by the 34 state of Iowa under section 157.8 or 158.7 prior to July 1, 35 -5- LSB 1204DP (13) 84 kh/sc 5/ 7

S.F. _____ H.F. _____ 2009, to conduct business operate as a school of cosmetology 1 arts and sciences or a barber school in the state. 2 11. Postsecondary educational institutions offering 3 programs limited to nondegree specialty vocational training 4 programs for which the school does not award a postsecondary 5 credential . 6 Sec. 11. NEW SECTION . 261B.11A Ineligibility for state 7 student financial aid programs. 8 1. Students attending schools required to register under 9 this chapter are ineligible for state student financial aid 10 programs established under chapter 261. 11 2. A school required to register under this chapter is 12 prohibited from offering state aid or advertising that state 13 aid is or may be available to students attending the school. 14 EXPLANATION 15 This bill modifies Code chapter 261B which regulates the 16 registration of postsecondary schools by the college student 17 aid commission. Modifications include provisions which provide 18 that students attending such schools are ineligible for state 19 student financial aid programs, authorize the commission to 20 require additional information from schools, establish a new 21 registration amendment fee, and establish a postsecondary 22 registration fund comprised of the registration fees collected 23 by the commission. The moneys in the fund are appropriated to 24 the commission for purposes of administering the chapter. 25 The bill specifies that schools that maintain or conduct one 26 or more courses of instruction offered in this state or which 27 have a presence in this state and offer courses in this state 28 or other states or foreign countries are required to register 29 with the commission. The Code chapter currently includes 30 exceptions for certain schools and educational programs. 31 Currently, registrations must be renewed every four years 32 and upon substantive change in location or accreditation. To 33 this renewal requirement, the bill adds that registrations 34 must also be renewed upon any substantive change in program 35 -6- LSB 1204DP (13) 84 kh/sc 6/ 7

S.F. _____ H.F. _____ offering. A substantive change in program offering is defined 1 as when a school proposes to offer a program that requires the 2 approval of the state board of education or other state agency. 3 The bill authorizes the commission to require additional 4 information from a school if the additional information is 5 deemed necessary in order to evaluate the school’s registration 6 application. A registered school’s promotional materials shall 7 reference that it is registered with the commission and shall 8 include the commission’s contact information for students who 9 wish to register a complaint about the school. 10 The commission is also authorized to grant a provisional 11 registration, the duration of which is to be determined by the 12 commission, to a school that is not accredited by an agency or 13 organization recognized by the U.S. department of education. 14 During the provisional registration period, the school must 15 submit to the commission, at six-month intervals, documentation 16 regarding its progress toward achieving accreditation. The 17 commission may renew the provisional registration at its 18 discretion based on documentation that the school is making 19 progress toward accreditation. 20 The bill prohibits schools required to register with the 21 commission from offering state aid or advertising that state 22 aid is or may be available to students attending the school. 23 The bill makes changes to the Code chapter’s definitions of 24 “degree”, “presence”, and “school” and adds definitions for 25 “offered in this state” and “postsecondary credential”. 26 The Code currently authorizes the commission to issue a 27 cease and desist order to a school it believes is in violation 28 of Code chapter 261B and to seek judicial enforcement of the 29 order. Also, a violation of the Code chapter constitutes 30 an unlawful practice under Code section 714.16, relating to 31 consumer fraud. 32 -7- LSB 1204DP (13) 84 kh/sc 7/ 7