Senate Study Bill 3139 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF EDUCATION BILL) A BILL FOR An Act relating to the elimination of the college student 1 aid commission, the establishment of a college student 2 aid council, and transferring the commission’s duties and 3 responsibilities to the state board of education, the state 4 board of regents, and the department of education; making 5 appropriations; providing for related matters; and including 6 effective date provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 5165XD (35) 84 kh/rj
S.F. _____ H.F. _____ DIVISION I 1 TRANSFER OF COMMISSION DUTIES 2 Section 1. Section 7A.4, subsection 4, Code 2011, is amended 3 by striking the subsection. 4 Sec. 2. Section 7E.7, Code 2011, is amended to read as 5 follows: 6 7E.7 Organizational structure. 7 For organizational purposes only, the following apply: 8 1. The Iowa higher education loan authority shall be 9 attached to the college student aid commission. 10 2. The Iowa advance funding authority shall be considered 11 part of the department of education. The department of 12 education may provide staff assistance and administrative 13 support to the authority. 14 Sec. 3. Section 8A.504, subsection 3, Code Supplement 2011, 15 is amended to read as follows: 16 3. In the case of multiple claims to payments filed under 17 this section , priority shall be given to claims filed by the 18 child support recovery unit or the foster care recovery unit, 19 next priority shall be given to claims filed by the clerk of 20 the district court, next priority shall be given to claims 21 filed by the college student aid commission, next priority 22 shall be given to claims filed by the investigations division 23 of the department of inspections and appeals, and last priority 24 shall be given to claims filed by other state agencies. In the 25 case of multiple claims in which the priority is not otherwise 26 provided by this subsection , priority shall be determined in 27 accordance with rules to be established by the director. 28 Sec. 4. Section 8A.504, subsection 4, Code Supplement 2011, 29 is amended by striking the subsection. 30 Sec. 5. Section 35.9, subsection 2, paragraph b, Code 2011, 31 is amended to read as follows: 32 b. A child eligible to receive state educational assistance 33 under this subsection shall begin postsecondary education prior 34 to reaching age twenty-six, shall not receive more than an 35 -1- LSB 5165XD (35) 84 kh/rj 1/ 80
S.F. _____ H.F. _____ amount equal to five times the highest resident undergraduate 1 tuition rate established per year for an institution of higher 2 learning under the control of the state board of regents 3 during the child’s lifetime, and shall, to remain eligible 4 for assistance, meet the academic progress standards of the 5 postsecondary educational institution. Payments for state 6 educational assistance for a child under this subsection 7 shall be made to the applicable postsecondary educational 8 institution. The college student aid commission department of 9 education may, if requested, assist the department of veterans 10 affairs in administering this subsection . 11 Sec. 6. Section 135.107, subsection 3, paragraph b, 12 subparagraph (3), Code 2011, is amended to read as follows: 13 (3) The center for rural health and primary care may enter 14 into an agreement under chapter 28E with the college student 15 aid commission department of education for the administration 16 of this program. 17 Sec. 7. Section 135.107, subsection 3, paragraph c, 18 subparagraph (3), Code 2011, is amended to read as follows: 19 (3) The center for rural health and primary care may enter 20 into an agreement under chapter 28E with the college student 21 aid commission department of education for the administration 22 of this program. 23 Sec. 8. Section 135.175, subsection 5, paragraph b, Code 24 2011, is amended to read as follows: 25 b. The health care professional and Iowa needs nurses now 26 initiative account. The health care professional and Iowa 27 needs nurses now initiative account shall be under the control 28 of the college student aid commission created in section 261.1 29 department of education as provided in chapter 261 and the 30 moneys in the account shall be used for the purposes of the 31 health care professional incentive payment program and the Iowa 32 needs nurses now initiative as specified in sections 261.128 33 and 261.129 . Moneys in the account shall consist of moneys 34 appropriated or allocated for deposit in or received by the 35 -2- LSB 5165XD (35) 84 kh/rj 2/ 80
S.F. _____ H.F. _____ fund or the account and specifically dedicated to the health 1 care professional and Iowa needs nurses now initiative or the 2 account for the purposes of the account. 3 Sec. 9. Section 135.177, subsection 1, Code Supplement 4 2011, is amended to read as follows: 5 1. The department, in cooperation with the college student 6 aid commission department of education as provided in chapter 7 261 , shall establish a physician assistant mental health 8 fellowship program in accordance with this section . Funding 9 for the program may be provided through the health care 10 workforce shortage fund or the physician assistant mental 11 health fellowship program account created in section 135.175 . 12 The purpose of the program is to determine the effect of 13 specialized training and support for physician assistants in 14 providing mental health services on addressing Iowa’s shortage 15 of mental health professionals. 16 Sec. 10. Section 135.177, subsection 2, paragraph e, Code 17 Supplement 2011, is amended to read as follows: 18 e. A student participating in the program shall be eligible 19 for a stipend of not more than fifty thousand dollars for the 20 twelve months of the fellowship plus related fringe benefits. 21 In addition, a student who completes the program and practices 22 in Iowa in a mental health professional shortage area, as 23 defined in section 135.180 , shall be eligible for up to twenty 24 thousand dollars in loan forgiveness. The stipend and loan 25 forgiveness provisions shall be determined by the department of 26 public health and the college student aid commission department 27 of education , in consultation with the clinical partners. 28 Sec. 11. Section 232.2, subsection 4, paragraph f, 29 subparagraph (5), Code 2011, is amended to read as follows: 30 (5) If the child is interested in pursuing higher education, 31 the transition plan shall provide for the child’s participation 32 in the college student aid commission’s department of 33 education’s program of assistance in applying for federal and 34 state aid under section 261.2 . 35 -3- LSB 5165XD (35) 84 kh/rj 3/ 80
S.F. _____ H.F. _____ Sec. 12. Section 256.7, unnumbered paragraph 1, Code 1 Supplement 2011, is amended to read as follows: 2 Except for the college student aid commission, the 3 commission of libraries and division of library services , and 4 the public broadcasting board and division, the state board 5 shall: 6 Sec. 13. Section 256.7, subsection 22, Code Supplement 7 2011, is amended to read as follows: 8 22. Adopt rules and a procedure for the approval of 9 para-educator preparation programs offered by a public school 10 district, area education agency, community college, institution 11 of higher education under the state board of regents, or an 12 accredited private institution as defined in section 261.9, 13 subsection 1 261.1 . The programs shall train and recommend 14 individuals for para-educator certification under section 15 272.12 . 16 Sec. 14. Section 256.7, Code Supplement 2011, is amended by 17 adding the following new subsection: 18 NEW SUBSECTION . 31. Adopt rules for the administration 19 of chapter 261, including as provided in section 261.3, and 20 chapter 261B. 21 Sec. 15. Section 256.9, unnumbered paragraph 1, Code 22 Supplement 2011, is amended to read as follows: 23 Except for the college student aid commission, the 24 commission of libraries and division of library services , and 25 the public broadcasting board and division, the director shall: 26 Sec. 16. Section 261.1, Code 2011, is amended by striking 27 the section and inserting in lieu thereof the following: 28 261.1 Definitions. 29 As used in this chapter, unless the context otherwise 30 requires: 31 1. “Accredited private institution” means an eligible 32 institution which is operated privately and not controlled or 33 administered by any state agency or any subdivision of the 34 state and which meets the criteria of either paragraphs “a” and 35 -4- LSB 5165XD (35) 84 kh/rj 4/ 80
S.F. _____ H.F. _____ “b” or paragraph “c” as follows: 1 a. Is accredited by the higher learning commission of the 2 north central association of colleges and schools accrediting 3 agency. 4 b. Is exempt from taxation under section 501(c)(3) of 5 the Internal Revenue Code, and annually provides a matching 6 aggregate amount of institutional financial aid equal to 7 at least seventy-five percent of the amount received in a 8 fiscal year by the institution’s students for Iowa tuition 9 grant assistance under this chapter. The matching aggregate 10 amount of institutional financial aid shall increase annually 11 by the percentage of increase each fiscal year of funds 12 appropriated for Iowa tuition grants under section 261.12, 13 to a maximum match of one hundred percent. The institution 14 shall file annual reports with the department prior to receipt 15 of tuition grant moneys under this chapter. For purposes of 16 this subsection and section 261.12, subsection 2, “for-profit 17 accredited private institution” means an institution whose 18 students were eligible to receive tuition grants in the fiscal 19 year beginning July 1, 2003, whose income is not exempt from 20 taxation under section 501(c)(3) of the Internal Revenue Code, 21 and that meets the accreditation requirements of paragraph “a” 22 and the match requirements of this paragraph. A for-profit 23 accredited private institution is ineligible to receive tuition 24 grant funds awarded pursuant to section 261.12, subsection 1. 25 c. Is a specialized college that is accredited by the 26 higher learning commission of the north central association 27 of colleges and schools accrediting agency, and which offers 28 health professional programs that are affiliated with health 29 care systems located in Iowa. 30 2. “Community college” means the same as defined in section 31 260C.2. 32 3. “Course of study” means a postsecondary educational 33 program that an eligible institution offers through any one or 34 a combination of in-person instruction and distance delivery. 35 -5- LSB 5165XD (35) 84 kh/rj 5/ 80
S.F. _____ H.F. _____ 4. “Department” means the department of education. 1 5. “Eligible borrower” means a person, or the parent of 2 a person, who is enrolled or will be enrolled at an eligible 3 institution. An eligible borrower must meet the general 4 eligibility requirements established by the state board. 5 6. “Eligible institution” means a community college, an 6 institution of higher education governed by the state board of 7 regents, or a postsecondary educational institution that is 8 located in Iowa and meets all of the following requirements: 9 a. Submits an annual report in a format approved by the 10 department that includes but is not limited to accurate 11 institutional and student data required by the department 12 for the administration of programs established pursuant to 13 this chapter and to meet policy analysis needs of the general 14 assembly. The report shall include the annual fall enrollment 15 count of full-time, part-time, online, extension, and dual 16 enrollment students determined on the official fall enrollment 17 date set by the United States department of education. The 18 department may withhold payment of funds to students at an 19 otherwise eligible institution if the institution fails to file 20 a timely, accurate, or complete report, until such time as the 21 required reports have been submitted to the department. 22 b. Promotes equal opportunity and affirmative action efforts 23 in the recruitment, appointment, assignment, and advancement of 24 personnel at the institution. 25 c. Adopts a policy to offer not less than the following 26 options to a student who is a member, or the spouse of a member 27 if the member has a dependent child, of the Iowa national guard 28 or reserve forces of the United States and who is ordered to 29 state military service or federal service or duty: 30 (1) Withdraw from the student’s entire registration and 31 receive a full refund of tuition and mandatory fees. 32 (2) Make arrangements with the student’s instructors for 33 course grades, or for incompletes that shall be completed by 34 the student at a later date. If such arrangements are made, 35 -6- LSB 5165XD (35) 84 kh/rj 6/ 80
S.F. _____ H.F. _____ the student’s registration shall remain intact and tuition and 1 mandatory fees shall be assessed for the courses in full. 2 (3) Make arrangements with only some of the student’s 3 instructors for grades, or for incompletes that shall be 4 completed by the student at a later date. If such arrangements 5 are made, the registration for those courses shall remain 6 intact and tuition and mandatory fees shall be assessed for 7 those courses. Any course for which arrangements cannot be 8 made for grades or incompletes shall be considered dropped and 9 the tuition and mandatory fees for the course refunded. 10 d. Is not required to register under chapter 261B. 11 e. Is eligible to participate in a federal student aid 12 program authorized under Tit. IV of the federal Higher 13 Education Act of 1965, as amended. 14 7. “Eligible lender” means a financial or credit 15 institution, insurance company, or other approved lender which 16 meets the standards prescribed by the state board and has 17 executed a lender participation agreement with the department. 18 8. “Eligible student” means a student who complies with all 19 of the following: 20 a. Is a citizen or eligible noncitizen of the United States 21 and a resident of this state. 22 b. Is enrolled and making satisfactory academic progress or 23 accepted for enrollment at an eligible institution. 24 c. Completes and files an application for a scholarship or 25 grant. 26 d. Is responsible for the submission of the parents’ 27 confidential statement for processing, the processed 28 information to be returned both to the department and to the 29 institution in which the applicant is enrolling. 30 e. Reports promptly to the department any information 31 requested. 32 f. Files a new application and parents’ confidential 33 statement annually on the basis of which the applicant’s 34 eligibility for a renewed tuition grant will be evaluated and 35 -7- LSB 5165XD (35) 84 kh/rj 7/ 80
S.F. _____ H.F. _____ determined. 1 g. Has not defaulted on a loan guaranteed by the federal 2 government. 3 9. “Fee” means actual charges in addition to tuition that 4 are consistently assessed to all undergraduate students by an 5 eligible institution. Mandatory fees may differ by program, 6 but must be applied to all students enrolled in a specific 7 program. 8 10. “Financial need” means the difference between the 9 student’s financial resources available, including those 10 available from the student and the student’s parents as 11 determined by a completed parents’ confidential statement and 12 any federal or state program for which the student is eligible, 13 and the student’s anticipated expenses while attending an 14 eligible institution. Financial need shall be determined at 15 least annually. 16 11. “Full-time student” means an eligible student who 17 is enrolled in a course of study including at least twelve 18 semester hours or the equivalent of twelve semester hours. 19 12. “Grant” means an award by the state of Iowa to an 20 eligible student under a program administered by the department 21 pursuant to this chapter. 22 13. “Part-time student” means an eligible student who is 23 enrolled in a course of study including at least three semester 24 hours or the equivalent of three semester hours. 25 14. “Qualified student” means an eligible student who has 26 established financial need and is making satisfactory progress 27 toward graduation. 28 15. “State board” means the state board of education. 29 16. “Tuition grant” means an award by the state of Iowa to a 30 qualified student under 261.10. 31 Sec. 17. Section 261.2, Code Supplement 2011, is amended to 32 read as follows: 33 261.2 Duties of commission department . 34 The commission department shall do all of the following : 35 -8- LSB 5165XD (35) 84 kh/rj 8/ 80
S.F. _____ H.F. _____ 1. a. Prepare and administer a state plan for a state 1 supported state-supported and administered state-administered 2 scholarship program and grant programs . The state plan shall 3 provide for scholarships and grants to deserving students of 4 Iowa, matriculating in Iowa universities, colleges, community 5 colleges, or schools of professional nursing. Eligibility of 6 a student for receipt of a scholarship shall be based upon 7 academic achievement and completion of advanced level courses 8 prescribed by the commission. 9 b. Approve and award scholarships and grants under the state 10 plan. 11 2. Administer the tuition grant program under this chapter . 12 3. 2. Develop and implement, in cooperation with the 13 state board of regents, an educational program and marketing 14 strategies designed to inform students and parents about the 15 options available for financing a college education and the 16 need to accumulate the financial resources necessary to pay for 17 a college education. The educational program shall include 18 but not be limited to distribution of informational material 19 to public and nonpublic elementary schools for distribution to 20 parents and guardians of five-year and six-year old children. 21 4. 3. Approve Administer and approve transfers from the 22 scholarship and tuition grant reserve fund under section 261.20 23 261.4 . 24 5. Develop and implement, in cooperation with the 25 judicial district departments of correctional services and 26 the department of corrections, a program to assist criminal 27 offenders in applying for federal and state aid available for 28 higher education. 29 6. Develop and implement, in cooperation with the 30 department of human services and the judicial branch, a program 31 to assist juveniles who are sixteen years of age or older and 32 who have a case permanency plan under chapter 232 or 237 or are 33 otherwise under the jurisdiction of chapter 232 in applying 34 for federal and state aid available for higher education. 35 -9- LSB 5165XD (35) 84 kh/rj 9/ 80
S.F. _____ H.F. _____ The commission shall also develop and implement the all Iowa 1 opportunity foster care grant program in accordance with 2 section 261.6 . 3 7. 4. a. Adopt rules to establish reasonable registration 4 standards for the approval, pursuant to section 261B.3A , of 5 postsecondary schools that are required to register with the 6 commission in order to operate in this state. The registration 7 standards established by the commission shall ensure that all 8 of the following conditions are satisfied: 9 (1) The courses, curriculum, and instruction offered by 10 the postsecondary school are of such quality and content as 11 may reasonably and adequately ensure achievement of the stated 12 objective for which the courses, curriculum, or instruction are 13 offered. 14 (2) The postsecondary school has adequate space, equipment, 15 instructional material, and personnel to provide education and 16 training of good quality. 17 (3) The educational and experience qualifications of 18 the postsecondary school’s directors, administrators, and 19 instructors are such as may reasonably ensure that students 20 will receive instruction consistent with the objectives of the 21 postsecondary school’s programs of study. 22 (4) Upon completion of training or instruction, students 23 are given certificates, diplomas, or degrees as appropriate by 24 the postsecondary school indicating satisfactory completion of 25 the program. 26 (5) The postsecondary school is financially responsible and 27 capable of fulfilling commitments for instruction. 28 b. The commission shall post Post an application for 29 registration as a school operating as a postsecondary 30 educational institution or providing postsecondary 31 instructional programs on the commission’s its internet 32 site and shall render a decision on an application for 33 registration within one hundred eighty days of the filing of 34 the application. The department shall charge a reasonable 35 -10- LSB 5165XD (35) 84 kh/rj 10/ 80
S.F. _____ H.F. _____ fee to process the applications. The moneys collected from 1 application fees shall be considered a repayment receipt, 2 as defined in section 8.2, and shall be retained by the 3 department. 4 8. 5. Submit by January 15 annually a report to the 5 general assembly which provides, by program, the number of 6 individuals who received loan forgiveness in the previous 7 fiscal year, the amount paid to individuals under sections 8 261.23 , 261.73 , and 261.112 , and the institutions from which 9 individuals graduated, and that includes any proposed statutory 10 changes and Make an annual report to the state board, the 11 governor, and the general assembly on the activities of the 12 department required under this chapter including but not 13 limited to the number of individuals who received scholarships, 14 grants, and loan forgiveness in the previous fiscal year. The 15 report shall include the methodology and manner in which the 16 department makes the determination of awards for programs for 17 which funds are appropriated under this chapter. The report 18 shall also include the commission’s department’s findings and 19 recommendations. 20 9. 6. Require any postsecondary institution whose students 21 are eligible for or who receive assistance under programs 22 administered by the commission department pursuant to this 23 chapter and who were enrolled in a school district in Iowa to 24 include in its student management information system the unique 25 student identifiers assigned to the institution’s students 26 while the students were in the state’s kindergarten through 27 grade twelve system. 28 10. Administer the health care professional incentive 29 payment program established in section 261.128 and the Iowa 30 needs nurses now initiative created in section 261.129 . This 31 subsection is repealed June 30, 2014. 32 11. 7. Ensure that students receiving state-funded 33 scholarships and grants are attending institutions of higher 34 education that meet all of the following conditions: 35 -11- LSB 5165XD (35) 84 kh/rj 11/ 80
S.F. _____ H.F. _____ a. The institutions are not required to register under 1 chapter 261B . 2 b. The institutions are eligible to participate in a federal 3 student aid program authorized under Tit. IV of the federal 4 Higher Education Act of 1965 , as amended. 5 12. 8. Require any postsecondary institution whose 6 students are eligible for or who receive financial assistance 7 under programs administered by the commission department 8 pursuant to this chapter to transmit annually to the commission 9 department information about the numbers of minority students 10 enrolled in and minority faculty members employed at the 11 institution. The commission department shall compile and 12 report the information collected to the general assembly, 13 the governor, and the legislative services agency by March 1 14 annually. 15 9. Maintain an agency operating account as authorized 16 by the federal Higher Education Act of 1965. The department 17 shall credit to this account all moneys provided for the state 18 student loan program by the United States, the state of Iowa, 19 or any of their agencies, departments or instrumentalities, as 20 well as any funds accruing to the program from other sources. 21 The department may expend moneys in the agency operating 22 account as authorized by the federal Higher Education Act 23 of 1965 as necessary to execute the department’s powers and 24 duties under this chapter. Notwithstanding section 8.33, 25 funds on deposit in the operating account shall not revert 26 to the general fund of the state at the close of any fiscal 27 year. The treasurer of state shall invest any funds, including 28 those in the operating account, and, notwithstanding section 29 12C.7, the interest income earned shall be credited back to the 30 appropriate accounts. 31 10. Administer all properties and moneys necessary to 32 execute the department’s powers and duties under this chapter 33 in accordance with the requirements of the federal Higher 34 Education Act of 1965, as amended. 35 -12- LSB 5165XD (35) 84 kh/rj 12/ 80
S.F. _____ H.F. _____ 11. Enter into any agreements with the United States 1 secretary of education or other federal agency as are necessary 2 to provide programs and services administered pursuant to this 3 chapter to current and future Iowa postsecondary students, to 4 the students’ school counselors, parents, and guardians, and 5 to the elementary, secondary, and postsecondary institutions 6 the students attend. 7 12. Administer the college access challenge grant program 8 authorized by 20 U.S.C. § 1141, or its successor program. 9 13. Administer the gaining early awareness and readiness 10 for undergraduate program authorized by 20 U.S.C. § 1070a-21 11 through 1070a-28, or its successor program. 12 14. Enter into any agreements with the United States 13 secretary of education necessary for purposes of receiving the 14 full benefit of state program incentives offered pursuant to 15 the Higher Education Act of 1965. 16 15. Develop and implement programs and other initiatives 17 or services necessary to perform duties that include but are 18 not limited to postsecondary student aid outreach, financial 19 literacy education, career planning, postsecondary student 20 aid program compliance assistance and training, postsecondary 21 student aid program monitoring and compliance relating 22 to eligible institutions, default prevention, and default 23 aversion. 24 16. Conduct college access initiative activities including 25 but not limited to providing publications, programs, training, 26 and internet-based resources for the public relating to college 27 planning, career preparation, and paying for college. As 28 deemed necessary, provide applicants with information about 29 enrollment, placement statistics, and the past default rates 30 of postsecondary institutions. 31 17. Negotiate and contract with private and government 32 agencies for the establishment of financial aid programs; 33 receive gifts of any type for the purpose of establishing, 34 continuing, and increasing financial aid; and administer 35 -13- LSB 5165XD (35) 84 kh/rj 13/ 80
S.F. _____ H.F. _____ any form of financial aid submitted to and accepted for 1 administration by the department. 2 18. Appoint a chief administrative officer to direct and 3 oversee the day-to-day activities of the department required 4 pursuant to this chapter. The chief administrative officer 5 shall have expertise in student financial aid programs, 6 including but not limited to state and federal scholarship and 7 grant programs and federal student aid programs. 8 Sec. 18. Section 261.3, Code 2011, is amended by striking 9 the section and inserting in lieu thereof the following: 10 261.3 Duties of the state board —— decisions final. 11 1. The state board shall adopt rules for the administration 12 of this chapter, including but not limited to rules for the 13 following: 14 a. Standards, guidelines, and procedures for each 15 individual program administered by the department under this 16 chapter. The rules adopted pursuant to this subsection shall 17 provide for the receipt, processing, and administration of 18 student applications and loans; determining financial need 19 and the priority of grants awarded based on financial need; 20 defining tuition and mandatory fees; processing and approving 21 applications for scholarships, grants, and loans; determining 22 eligibility requirements for eligible borrowers; determining 23 priority for grants and loans; awarding tuition grants; 24 establishing procedures for the repayment of loans and for 25 the deferral of loan repayment for purposes including but 26 not limited to fulfillment of obligations such as military 27 service obligations; and defining residence and determining who 28 is a resident of Iowa. The state board may provide for the 29 proration of funds if the available funds are insufficient to 30 pay all approved scholarships or grants. Such proration shall 31 take primary account of the financial need of the applicant. 32 The rules for determining who is a resident of Iowa shall be at 33 least as restrictive as those of the state board of regents. 34 b. Develop and implement a method for allocating moneys 35 -14- LSB 5165XD (35) 84 kh/rj 14/ 80
S.F. _____ H.F. _____ awarded under section 261.11 based upon the need for skills 1 and occupations for which a career and technical education is 2 required. 3 c. Prescribe by rule interest rates for student loans 4 administered by the department. 5 2. For purposes of this chapter, a decision of the state 6 board is final agency action under chapter 17A. 7 Sec. 19. Section 261.4, Code 2011, is amended by striking 8 the section and inserting in lieu thereof the following: 9 261.4 Scholarships and grant reserve fund. 10 1. A scholarship and grant reserve fund is created to assure 11 that financial assistance will be available to all students 12 who are awarded scholarships or grants through programs funded 13 under this chapter. The fund is created as a separate fund in 14 the state treasury, and moneys in the fund shall not revert to 15 the general fund unless, and then only to the extent that, the 16 funds exceed the maximum allowed balance. 17 2. The maximum balance of the scholarship and grant 18 reserve fund is an amount equal to two percent of the funds 19 appropriated to the scholarship and grant programs under 20 this chapter during the preceding fiscal year. Moneys in 21 the account shall only be used to alleviate a current fiscal 22 year shortfall in appropriations for scholarships, grants, and 23 other programs under this chapter. At the conclusion of a 24 fiscal year, any surplus appropriations made to the department 25 for scholarships and grant programs are appropriated to the 26 scholarship and grant reserve fund in an amount equal to the 27 amount of the surplus or the amount necessary to achieve the 28 maximum balance, whichever amount is less. 29 3. Transfers of moneys from the scholarship and grant 30 reserve fund to appropriation accounts in which there is 31 a current fiscal year shortfall may be made only with the 32 prior written approval of the governor. At least two weeks 33 before moneys are transferred from the fund, the department 34 shall notify the chairpersons of the standing appropriations 35 -15- LSB 5165XD (35) 84 kh/rj 15/ 80
S.F. _____ H.F. _____ committees of the general assembly and the co-chairpersons 1 of the education appropriations subcommittee of the proposed 2 transfer. The notice shall include information concerning 3 the amount of and reason for the proposed transfer. The 4 chairpersons shall be given at least two weeks to review and 5 comment on the proposed transfer before the transfer can be 6 made. 7 Sec. 20. Section 261.5, subsections 2, 3, and 4, Code 2011, 8 are amended to read as follows: 9 2. Notwithstanding any other provision of this chapter , in 10 the event of a national emergency declared by the president 11 of the United States by reason of terrorist attack, the 12 commission department may waive or modify any statutory or 13 regulatory provision applicable to state financial aid programs 14 established pursuant to this chapter to ensure, with regard to 15 affected individuals, that the following occurs: 16 a. The financial positions of affected individuals who are 17 state student loan borrowers are not worsened in relation to 18 those loans because of their status as affected individuals. 19 b. Administrative requirements placed on state student 20 loan borrowers are minimized, to the extent possible, without 21 impairing the integrity of the student loan programs, to 22 ease the burden on these borrowers and to avoid inadvertent 23 technical violations or defaults. 24 c. The calculation of “annual adjusted family income” and 25 “available income”, as used in the determination of need for 26 student financial assistance under 20 U.S.C. § 1070 et seq., 27 for affected individuals, or if applicable, for the spouses or 28 dependents of affected individuals, may be modified to mean 29 the sums received in the first calendar year of the award year 30 for which the determination is made, in order to reflect more 31 accurately the financial condition of the affected individuals 32 or their families. 33 3. Notwithstanding any other provision of this chapter , in 34 the event of a national emergency declared by the president 35 -16- LSB 5165XD (35) 84 kh/rj 16/ 80
S.F. _____ H.F. _____ of the United States by reason of terrorist attack, the 1 commission department may grant temporary relief from 2 requirements rendered infeasible or unreasonable, including 3 due diligence requirements and reporting deadlines, by the 4 national emergency, to an institution of higher education under 5 the state board of regents, a community college, an accredited 6 private institution as defined in section 261.9 , eligible 7 lenders, and other entities participating in the state student 8 assistance programs in accordance with this chapter , that are 9 located in, or whose operations are directly affected by, areas 10 that are declared disaster areas by any federal, state, or 11 local official in connection with the national emergency. If 12 the commission department issues a waiver in accordance with 13 this section , the report prepared by the commission department 14 pursuant to section 17A.9A, subsection 5 , shall include 15 examples of measures that a postsecondary institution may take 16 in the appropriate exercise of discretion, as provided in 20 17 U.S.C. § 1087tt, to adjust financial need and aid eligibility 18 determinations for affected individuals. 19 4. This section shall not be construed as a requirement that 20 the commission department exercise the waiver or modification 21 authority provided pursuant to this section on a case-by-case 22 basis. 23 Sec. 21. Section 261.6, Code Supplement 2011, is amended 24 by striking the section and inserting in lieu thereof the 25 following: 26 261.6 Iowa state fair scholarship. 27 The Iowa state fair scholarship fund is established in the 28 office of the treasurer of state to be administered by the 29 department. The rules adopted by the state board for the 30 administration of this chapter pursuant to section 256.7, 31 subsection 31, shall provide, at a minimum, that only residents 32 of Iowa who have actively participated in the Iowa state fair 33 and graduated from an accredited secondary school in Iowa 34 shall be eligible to receive an Iowa state fair scholarship 35 -17- LSB 5165XD (35) 84 kh/rj 17/ 80
S.F. _____ H.F. _____ for matriculation at an eligible institution. Notwithstanding 1 section 12C.7, interest earned on money in the Iowa state fair 2 scholarship fund shall be deposited into the fund and may be 3 used by the department only for Iowa state fair scholarship 4 awards. 5 Sec. 22. Section 261.7, subsections 2 and 3, Code 2011, are 6 amended to read as follows: 7 2. The general assembly recommends that every public 8 and private institution of higher education in this state, 9 including those institutions referenced in chapters 260C and 10 262 and section 261.9 261.1 , post the list of required and 11 suggested textbooks for all courses and the corresponding 12 international standard book numbers for such textbooks at least 13 fourteen days before the start of each semester or term, to 14 the extent possible, at the locations where textbooks are sold 15 on campus and on the website for the respective institution of 16 higher education. 17 3. The college student aid commission department is 18 directed to convey the legislative intent and recommendation 19 contained in this section to every institution of higher 20 education in the state registered pursuant to chapter 261B at 21 least once a year. 22 Sec. 23. NEW SECTION . 261.8 College student aid council. 23 1. A college student aid council is established consisting 24 of twelve members. Membership of the council shall be as 25 follows: 26 a. A member of the state board of regents, or the executive 27 director of the board, as appointed by the state board of 28 regents, who shall serve for a four-year term or until the 29 expiration of the member’s term of office. 30 b. The director of the department or the director’s 31 designee. 32 c. Four members of the general assembly serving as ex 33 officio, nonvoting members who shall serve terms as provided in 34 section 69.16B and shall be appointed as follows: 35 -18- LSB 5165XD (35) 84 kh/rj 18/ 80
S.F. _____ H.F. _____ (1) One representative to be appointed by the speaker of the 1 house of representatives. 2 (2) One representative to be appointed by the minority 3 leader of the house of representatives. 4 (3) One senator to be appointed by the president of the 5 senate after consultation with the majority leader of the 6 senate. 7 (4) One senator to be appointed by the minority leader of 8 the senate. 9 d. A college president appointed by an association which 10 represents the largest number of independent colleges and 11 universities in the state. 12 e. A community college president appointed by an association 13 which represents the largest number of community colleges in 14 the state. 15 f. A college president, appointed by the state board, who 16 represents for-profit colleges and universities in the state. 17 g. Three additional members, none of whom shall be official 18 board members or trustees of an institution of higher learning 19 or of an association of institutions of higher learning, shall 20 be selected by the state board to represent the general public. 21 One of these members shall be enrolled as a student at an 22 eligible institution. 23 2. Except as otherwise provided, members shall serve 24 staggered terms of four years beginning on May 1 of the year 25 of appointment. Vacancies on the council shall be filled 26 in the same manner as the original appointment. A person 27 appointed to fill a vacancy shall commence service on the date 28 of appointment and shall serve only for the unexpired portion 29 of the term. A vacancy shall exist on the council when the 30 student member ceases to be enrolled as a student; such vacancy 31 shall be filled within ninety days. 32 3. The council shall assist the state board with substantial 33 issues which are directly related to college student financial 34 aid and registration of postsecondary schools. The state board 35 -19- LSB 5165XD (35) 84 kh/rj 19/ 80
S.F. _____ H.F. _____ shall refer all substantial issues directly related to college 1 student financial aid and registration of postsecondary schools 2 to the council. The council shall formulate recommendations on 3 each issue referred to it by the state board and shall submit 4 the recommendations to the state board within any time periods 5 specified by the state board. 6 Sec. 24. Section 261.10, Code 2011, is amended by striking 7 the section and inserting in lieu thereof the following: 8 261.10 Iowa tuition grant program. 9 1. An Iowa tuition grant program is established to be 10 administered by the department. An Iowa tuition grant may 11 be awarded to a qualified student who is admitted and in 12 attendance as a full-time or part-time student at an accredited 13 private institution. An Iowa tuition grant issued to a 14 qualified student from funds appropriated under section 261.12, 15 subsection 1, may be used for attendance at a not-for-profit 16 accredited private institution. An Iowa tuition grant 17 issued to a qualified student from funds appropriated under 18 section 261.12, subsection 2, may be used for attendance at 19 a for-profit accredited private institution as provided in 20 section 261.12, subsection 2. 21 2. A qualified full-time student may receive tuition grants 22 for not more than eight semesters of undergraduate study or the 23 equivalent. A qualified part-time student may receive tuition 24 grants for not more than sixteen semesters of undergraduate 25 study or the equivalent. 26 3. a. The amount of a tuition grant to a qualified 27 full-time student for the fall and spring semesters, or the 28 equivalent, shall be the amount of the student’s financial 29 need for that period. However, a tuition grant shall not 30 exceed the lesser of the total tuition and mandatory fees for 31 that student for two semesters or the equivalent, less the 32 base amount determined annually by the department, which base 33 amount shall be within ten dollars of the average tuition for 34 two semesters or the equivalent of undergraduate study at the 35 -20- LSB 5165XD (35) 84 kh/rj 20/ 80
S.F. _____ H.F. _____ state universities under the board of regents, or six thousand 1 dollars. 2 b. The amount of a tuition grant to a qualified full-time 3 student for the summer semester or the equivalent shall be 4 one-half the amount of the tuition grant the student receives 5 under paragraph “a” . 6 c. The amount of a tuition grant to a qualified part-time 7 student enrolled in a course of study including at least three 8 semester hours but fewer than twelve semester hours for the 9 fall, spring, and summer semesters, or the equivalent, shall be 10 equal to the amount of a tuition grant that would be paid to a 11 full-time student times a number which represents the number 12 of hours in which the part-time student is actually enrolled 13 divided by twelve semester hours, or the equivalent. 14 4. A tuition grant may be made annually for the fall, 15 spring, and summer semesters or the equivalent. Payments under 16 the grant shall be allocated equally among the semesters, 17 or their equivalent and shall be paid at the beginning of 18 each semester, or the equivalent, upon certification by the 19 accredited private institution that the student is admitted and 20 in attendance. If the student discontinues attendance before 21 the end of any semester, or the equivalent, after receiving 22 payment under the grant, the entire amount of any refund due 23 that student, up to the amount of any payments made under 24 the annual grant, shall be paid by the accredited private 25 institution to the state. 26 Sec. 25. Section 261.11, Code 2011, is amended by striking 27 the section and inserting in lieu thereof the following: 28 261.11 Career and technical tuition grants. 29 1. A career and technical tuition grant may be awarded to 30 any resident of Iowa who is admitted and in attendance as a 31 full-time or part-time student in a career and technical or 32 career option program at a community college in the state, and 33 who establishes financial need. 34 2. All classes, including liberal arts classes, identified 35 -21- LSB 5165XD (35) 84 kh/rj 21/ 80
S.F. _____ H.F. _____ by the community college as required for completion of the 1 student’s career and technical or career option program shall 2 be considered a part of the student’s career and technical 3 or career option program for the purpose of determining the 4 student’s eligibility for a grant. Notwithstanding subsection 5 3, if a student is making satisfactory academic progress but 6 the student cannot complete a career and technical or career 7 option program in the time frame allowed for a student to 8 receive a career and technical tuition grant as provided 9 in subsection 3 because additional classes are required to 10 complete the program, the student may continue to receive 11 a career and technical tuition grant for not more than one 12 additional enrollment period. 13 3. a. A qualified full-time student may receive career 14 and technical tuition grants for not more than four semesters 15 or the equivalent of two full years of study. A qualified 16 part-time student enrolled in a course of study including at 17 least three semester hours but fewer than twelve semester hours 18 or the equivalent may receive career and technical tuition 19 grants for not more than eight semesters or the equivalent of 20 two full years of full-time study. 21 b. However, if a student resumes study after at least a 22 two-year absence, the student may again be eligible for the 23 specified amount of time. 24 4. a. The amount of a career and technical tuition grant to 25 a qualified full-time student shall not exceed the lesser of 26 one thousand two hundred dollars per year or the amount of the 27 student’s established financial need. 28 b. The amount of a career and technical tuition grant to 29 a qualified part-time student enrolled in a course of study 30 including at least three semester hours but fewer than twelve 31 semester hours or the equivalent shall be equal to the amount 32 of a career and technical tuition grant that would be paid to 33 a full-time student, except that the department shall prorate 34 the amount in a manner consistent with the federal Pell grant 35 -22- LSB 5165XD (35) 84 kh/rj 22/ 80
S.F. _____ H.F. _____ program proration. 1 5. A career and technical tuition grant shall be awarded 2 on an annual basis, requiring reapplication by the student 3 for each year. Payments under the grant shall be allocated 4 equally among the semesters of the year or the equivalent 5 upon certification by the institution that the student is in 6 full-time or part-time attendance in a career and technical or 7 career option program, as defined under rules adopted by the 8 state board. If the student discontinues attendance before 9 the end of any term after receiving payment of the grant, the 10 entire amount of any refund due that student, up to the amount 11 of any payments made under the annual grant, shall be paid by 12 the institution to the state. 13 6. If a student receives financial aid under any other 14 program, the full amount of that financial aid shall be 15 considered part of the student’s financial resources available 16 in determining the amount of the student’s financial need for 17 that period. 18 Sec. 26. Section 261.12, Code 2011, is amended by striking 19 the section and inserting in lieu thereof the following: 20 261.12 Appropriations —— standing limited. 21 1. There is appropriated from the general fund of the state 22 to the department for each fiscal year the sum of forty-three 23 million five hundred thirteen thousand four hundred forty-eight 24 dollars for tuition grants. 25 2. There is appropriated from the general fund of the state 26 to the department for each fiscal year the sum of four million 27 dollars for tuition grants for students attending for-profit 28 accredited private institutions located in Iowa. A for-profit 29 accredited institution which, effective March 9, 2005, or 30 effective January 8, 2010, purchased an accredited private 31 institution that was exempt from taxation under section 501(c) 32 of the Internal Revenue Code, shall be an eligible institution 33 under the tuition grant program. 34 3. There is appropriated from the general fund of the state 35 -23- LSB 5165XD (35) 84 kh/rj 23/ 80
S.F. _____ H.F. _____ to the department for each fiscal year the sum of two million 1 two hundred fifty thousand one hundred eighty-five dollars for 2 career and technical tuition grants. 3 4. This section shall not be construed to be a limitation 4 on any of the amounts which may be appropriated by the general 5 assembly for any program enumerated in this section. 6 5. In the case of a qualified student who was enrolled in an 7 accredited private institution that was exempt from taxation 8 under section 501(c) of the Internal Revenue Code and that was 9 purchased by a for-profit institution effective January 8, 10 2010, and such qualified student continues to be enrolled in 11 the eligible institution in succeeding years, the student shall 12 continue to be eligible to receive funds under subsection 1 13 without a change in the student’s qualification status. 14 Sec. 27. Section 261.18, subsections 3 and 9, Code 2011, are 15 amended to read as follows: 16 3. A qualified full-time student may receive a barber and 17 cosmetology arts and sciences tuition grant for not more than 18 four semesters or the trimester or quarter equivalent of two 19 full years of study. A qualified part-time student enrolled 20 in a course of study including at least three semester hours 21 but fewer than twelve semester hours or the trimester or 22 quarter equivalent may receive barber and cosmetology arts 23 and sciences tuition grants for not more than eight semesters 24 or the trimester or quarter equivalent of two full years of 25 full-time study. However, if a student resumes study after at 26 least a two-year absence, the student may again be eligible for 27 the specified amount of time , except that the student shall not 28 receive assistance for courses for which credit was previously 29 received . 30 9. For purposes of this section , “eligible school” means 31 a barber school licensed under section 158.7 or a school of 32 cosmetology arts and sciences licensed under chapter 157 . An 33 eligible school shall be accredited by a national accrediting 34 agency recognized by the United States department of education 35 -24- LSB 5165XD (35) 84 kh/rj 24/ 80
S.F. _____ H.F. _____ and shall meet the criteria requirements in section 261.9 1 261.1 , subsection 1 6 , paragraphs “d” through “g” . An eligible 2 school shall report promptly to the commission department any 3 information requested. 4 Sec. 28. Section 261.18, subsection 4, paragraph b, Code 5 2011, is amended to read as follows: 6 b. The amount of a barber and cosmetology arts and sciences 7 tuition grant to a qualified part-time student enrolled in a 8 course of study including at least three semester hours but 9 fewer than twelve semester hours or the trimester or quarter 10 equivalent shall be equal to the amount of a barber and 11 cosmetology arts and sciences tuition grant that would be paid 12 to a full-time student, except that the commission department 13 shall prorate the amount in a manner consistent with the 14 federal Pell grant program proration. 15 Sec. 29. Section 261.18, subsections 7 and 8, Code 2011, are 16 amended by striking the subsections. 17 Sec. 30. Section 261.19, subsections 1, 2, and 3, Code 18 Supplement 2011, are amended to read as follows: 19 1. A health care professional recruitment program is 20 established to be administered by the college student aid 21 commission department for Des Moines university. The program 22 shall consist of a loan repayment program for health care 23 professionals. The commission department shall regularly 24 adjust the service requirement under each aspect of the program 25 to provide, to the extent possible, an equal financial benefit 26 for each period of service required. 27 2. A health care professional shall be eligible for the 28 loan repayment program if the health care professional agrees 29 to practice in an eligible rural community in this state. 30 Des Moines university shall recruit and place health care 31 professionals in rural communities which have agreed to provide 32 additional funds for the recipient’s loan repayment. The 33 contract for the loan repayment shall stipulate the time period 34 the recipient shall practice in an eligible rural community in 35 -25- LSB 5165XD (35) 84 kh/rj 25/ 80
S.F. _____ H.F. _____ this state. In addition, the contract shall stipulate that the 1 recipient repay any funds paid on the recipient’s loan by the 2 commission department if the recipient fails to practice in an 3 eligible rural community in this state for the required period 4 of time. 5 3. A health care professional recruitment revolving fund 6 is created in the state treasury as a separate fund under 7 the control of the commission department . The commission 8 department shall deposit payments made by health care 9 professional recruitment program recipients and the proceeds 10 from the sale of osteopathic loans awarded pursuant to 11 section 261.19, subsection 2 , paragraph “b” , Code 2011, moneys 12 appropriated to or received by the department into the health 13 care professional recruitment revolving fund. Moneys credited 14 to the fund shall be used to supplement moneys appropriated 15 for the health care professional recruitment program, for loan 16 repayment in accordance with this section , and to pay for 17 loan or interest repayment defaults by program recipients. 18 Notwithstanding section 8.33 , any balance in the fund on June 19 30 of any fiscal year shall not revert to the general fund of 20 the state. 21 Sec. 31. Section 261.19, subsection 5, Code Supplement 22 2011, is amended by striking the subsection. 23 Sec. 32. Section 261.23, subsections 1, 2, 4, and 5, Code 24 2011, are amended to read as follows: 25 1. A registered nurse and nurse educator loan forgiveness 26 program is established to be administered by the commission 27 department . The program shall consist of loan forgiveness 28 for eligible federally guaranteed loans for registered nurses 29 and nurse educators who practice or teach in this state. 30 For purposes of this section , unless the context otherwise 31 requires, “nurse educator” means a registered nurse who holds 32 a master’s degree or doctorate degree and is employed as a 33 faculty member who teaches nursing as provided in 655 IAC 34 2.6(152) in a nursing education program approved by the board 35 -26- LSB 5165XD (35) 84 kh/rj 26/ 80
S.F. _____ H.F. _____ of nursing at a community college, an accredited private 1 institution, or an institution of higher education governed by 2 the state board of regents. 3 2. Each applicant for loan forgiveness shall, in accordance 4 with the rules of the commission state board , do all of the 5 following: 6 a. Complete and file an application for registered nurse 7 or nurse educator loan forgiveness. The individual shall 8 be responsible for the prompt submission of any information 9 required by the commission department . 10 b. File a new application and submit information as required 11 by the commission department annually on the basis of which the 12 applicant’s eligibility for the renewed loan forgiveness will 13 be evaluated and determined. 14 c. Complete and return, on a form approved by the commission 15 department , an affidavit of practice verifying that the 16 applicant is a registered nurse practicing in this state or a 17 nurse educator teaching at a community college, an accredited 18 private eligible institution , or an institution of higher 19 learning governed by the state board of regents . 20 4. A registered nurse and nurse educator loan forgiveness 21 repayment fund is created for deposit of moneys appropriated 22 to or received by the commission department for use under the 23 program. Notwithstanding section 8.33 , moneys deposited in the 24 fund shall not revert to any fund of the state at the end of any 25 fiscal year but shall remain in the loan forgiveness repayment 26 fund and be continuously available for loan forgiveness under 27 the program. Notwithstanding section 12C.7, subsection 2 , 28 interest or earnings on moneys deposited in the fund shall be 29 credited to the fund. 30 5. The commission department shall submit in a report to 31 the general assembly by January 1, annually, the number of 32 individuals who received loan forgiveness pursuant to this 33 section , where the participants practiced or taught, the 34 amount paid to each program participant, and other information 35 -27- LSB 5165XD (35) 84 kh/rj 27/ 80
S.F. _____ H.F. _____ identified by the commission department as indicators of 1 outcomes from the program. 2 Sec. 33. Section 261.23, subsection 6, Code 2011, is amended 3 by striking the subsection. 4 Sec. 34. Section 261.71, subsection 1, unnumbered paragraph 5 1, Code 2011, is amended to read as follows: 6 A chiropractic graduate student forgivable loan program 7 is established, to be administered by the college student 8 aid commission department for resident graduate students who 9 are enrolled at Iowa chiropractic colleges and universities. 10 A resident graduate student attending an Iowa chiropractic 11 college or university is eligible for loan forgiveness 12 under the program if the student meets all of the following 13 conditions: 14 Sec. 35. Section 261.71, subsection 1, paragraphs c and d, 15 Code 2011, are amended to read as follows: 16 c. The student agrees to practice in an underserved area in 17 the state of Iowa for a period of time to be determined by the 18 commission department at the time the loan is awarded. 19 d. The student has received a loan from moneys appropriated 20 to the college student aid commission department for this 21 program. 22 Sec. 36. Section 261.71, subsections 2 and 3, Code 2011, are 23 amended to read as follows: 24 2. The contract for the loan repayment shall stipulate 25 the time period the chiropractor shall practice in an 26 underserved area in this state. In addition, the contract 27 shall stipulate that the chiropractor repay any funds paid 28 on the chiropractor’s loan by the commission department if 29 the chiropractor fails to practice in an underserved area in 30 this state for the required period of time. Forgivable loans 31 made to eligible students shall not become due, for repayment 32 purposes, until one year after the student has graduated. A 33 loan that has not been forgiven may be sold to a bank, savings 34 and loan association, credit union, or nonprofit agency 35 -28- LSB 5165XD (35) 84 kh/rj 28/ 80
S.F. _____ H.F. _____ eligible to participate in the guaranteed student loan program 1 under the federal Higher Education Act of 1965, 20 U.S.C. 2 § 1071 et seq., by the commission department when the loan 3 becomes due for repayment. 4 3. For purposes of this section “graduate student” means 5 a student who has completed at least ninety semester hours, 6 or the trimester or quarter equivalent, of postsecondary 7 course work at a public higher education institution or at an 8 accredited private institution , as defined under section 261.9 . 9 “Underserved area” means a geographical area included on the 10 Iowa governor’s health practitioner shortage area list, which 11 is compiled by the center for rural health and primary care of 12 the Iowa department of public health. The commission shall 13 adopt rules, consistent with rules used for students enrolled 14 in higher education institutions under the control of the state 15 board of regents, for purposes of determining Iowa residency 16 status of graduate students under this section . The commission 17 shall also adopt rules which provide standards, guidelines, and 18 procedures for the receipt, processing, and administration of 19 student applications and loans under this section . 20 Sec. 37. Section 261.72, Code Supplement 2011, is amended 21 to read as follows: 22 261.72 Chiropractic loan revolving fund. 23 A chiropractic loan revolving fund is created in the 24 state treasury as a separate fund under the control of the 25 commission department . The commission department shall 26 deposit payments made by chiropractic loan recipients and 27 the proceeds from the sale of chiropractic loans, less costs 28 of collection of delinquent chiropractic loans, into the 29 chiropractic loan revolving fund. Moneys credited to the 30 fund shall be used to supplement moneys appropriated for the 31 chiropractic graduate student forgivable loan program, for loan 32 forgiveness to eligible chiropractic physicians, and to pay for 33 loan or interest repayment defaults by eligible chiropractic 34 physicians. Notwithstanding section 8.33 , any balance in the 35 -29- LSB 5165XD (35) 84 kh/rj 29/ 80
S.F. _____ H.F. _____ fund on June 30 of any fiscal year shall not revert to the 1 general fund of the state. 2 Sec. 38. Section 261.73, subsections 1, 2, and 4, Code 2011, 3 are amended to read as follows: 4 1. A chiropractic loan forgiveness program is established 5 to be administered by the commission department . A 6 chiropractor is eligible for the program if the chiropractor is 7 a resident of this state, is licensed to practice under chapter 8 151 , and is engaged in the practice of chiropractic in this 9 state. 10 2. Each applicant for loan forgiveness shall, in accordance 11 with the rules of the commission state board , do all of the 12 following: 13 a. Complete and file an application for chiropractic loan 14 forgiveness. The individual shall be responsible for the 15 prompt submission of any information required by the commission 16 department . 17 b. File a new application and submit information as required 18 by the commission department annually on the basis of which the 19 applicant’s eligibility for the renewed loan forgiveness will 20 be evaluated and determined. 21 c. Complete and return on a form approved by the commission 22 department an affidavit of practice verifying that the 23 applicant meets the eligibility requirements of subsection 1 . 24 4. A chiropractic loan forgiveness repayment fund is 25 created for deposit of moneys appropriated to or received 26 by the commission department for use under the program. 27 Notwithstanding section 8.33 , moneys deposited in the fund 28 shall not revert to any fund of the state at the end of 29 any fiscal year but shall remain in the chiropractic loan 30 forgiveness repayment fund and be continuously available for 31 loan forgiveness under the program. Notwithstanding section 32 12C.7, subsection 2 , interest or earnings on moneys deposited 33 in the fund shall be credited to the fund. 34 Sec. 39. Section 261.73, subsection 5, Code 2011, is amended 35 -30- LSB 5165XD (35) 84 kh/rj 30/ 80
S.F. _____ H.F. _____ by striking the subsection. 1 Sec. 40. Section 261.81, Code 2011, is amended to read as 2 follows: 3 261.81 Work-study program. 4 The Iowa college work-study program is established to 5 stimulate and promote the part-time employment of students 6 attending Iowa postsecondary educational institutions an 7 eligible institution , and the part-time or full-time summer 8 employment of students registered for classes at Iowa 9 postsecondary institutions an eligible institution during the 10 succeeding school year, who are in need of employment earnings 11 in order to pursue postsecondary education. The program shall 12 be administered by the commission department . The commission 13 shall adopt rules under chapter 17A to carry out the program. 14 The employment under the program shall be employment by the 15 postsecondary education institution itself or work in a public 16 agency or private nonprofit organization under a contract 17 between the institution or the commission department and the 18 agency or organization. The work shall not result in the 19 displacement of employed workers or impair or affect existing 20 contracts for services. Moneys used by an institution for the 21 work-study program shall supplement and not supplant jobs and 22 existing financial aid programs provided for students through 23 the institution. 24 Sec. 41. Section 261.82, unnumbered paragraph 1, Code 2011, 25 is amended to read as follows: 26 The college student aid commission department shall do all 27 of the following : 28 Sec. 42. Section 261.82, subsection 2, Code 2011, is amended 29 to read as follows: 30 2. Allocate funds to participating postsecondary education 31 institutions if funds are available to the commission 32 department for that purpose. 33 Sec. 43. Section 261.82, subsections 3 and 5, Code 2011, are 34 amended by striking the subsections. 35 -31- LSB 5165XD (35) 84 kh/rj 31/ 80
S.F. _____ H.F. _____ Sec. 44. Section 261.83, subsection 1, Code 2011, is amended 1 to read as follows: 2 1. An eligible postsecondary education institution is 3 an institution of higher education under the state board 4 of regents, a community college, or an accredited private 5 institution as defined in section 261.9, subsection 1 . The 6 commission department may enter into an agreement with an 7 eligible postsecondary education institution under which the 8 commission department will make grants to the institution for 9 the work-study program. 10 Sec. 45. Section 261.83, subsection 2, paragraphs a and c, 11 Code 2011, are amended to read as follows: 12 a. File the proper forms with the commission department for 13 participation in the program. 14 c. Supervise and evaluate employment and maintain the 15 records required by the commission department . 16 Sec. 46. Section 261.85, Code Supplement 2011, is amended 17 to read as follows: 18 261.85 Appropriation. 19 1. There is appropriated from the general fund of the state 20 to the commission department for each fiscal year the sum 21 of two million seven hundred fifty thousand dollars for the 22 work-study program. 23 2. From moneys appropriated in this section , one 24 million five hundred thousand dollars shall be allocated to 25 institutions of higher education under the state board of 26 regents and community colleges and the remaining dollars 27 appropriated in this section shall be allocated by the 28 commission department on the basis of need as determined by the 29 portion of the federal formula for distribution of work-study 30 funds that relates to the current need of institutions 31 department . 32 Sec. 47. Section 261.86, subsection 1, unnumbered paragraph 33 1, Code Supplement 2011, is amended to read as follows: 34 A national guard educational assistance program is 35 -32- LSB 5165XD (35) 84 kh/rj 32/ 80
S.F. _____ H.F. _____ established to be administered by the college student aid 1 commission department for members of the Iowa national guard 2 who are enrolled as undergraduate students in a community 3 college, an institution of higher learning under the state 4 board of regents, or an accredited private institution eligible 5 institutions . The college student aid commission shall adopt 6 rules pursuant to chapter 17A to administer this section . An 7 individual is eligible for the national guard educational 8 assistance program if the individual meets all of the following 9 conditions: 10 Sec. 48. Section 261.86, subsection 1, paragraph d, Code 11 Supplement 2011, is amended to read as follows: 12 d. Is enrolled as an undergraduate student in a community 13 college as defined in section 260C.2 , an institution of higher 14 learning under the control of the board of regents, or an 15 accredited private institution as defined in section 261.9 , and 16 is maintaining satisfactory academic progress. 17 Sec. 49. Section 261.86, subsections 2 and 4, Code 18 Supplement 2011, are amended to read as follows: 19 2. Educational assistance paid pursuant to this section 20 shall not exceed the resident tuition and fee rate established 21 for institutions of higher learning under the control of the 22 state board of regents. If the amount appropriated in a fiscal 23 year for purposes of this section is insufficient to provide 24 educational assistance to all national guard members who apply 25 for the program and who are determined by the adjutant general 26 to be eligible for the program, the adjutant general shall, 27 in coordination with the commission department , determine the 28 distribution of educational assistance. However, educational 29 assistance paid pursuant to this section shall not be less than 30 fifty percent of the resident tuition and fee rate established 31 for institutions of higher learning under the control of the 32 state board of regents or fifty percent of the tuition and fee 33 rate at the institution attended by the national guard member, 34 whichever is lower. Neither eligibility nor educational 35 -33- LSB 5165XD (35) 84 kh/rj 33/ 80
S.F. _____ H.F. _____ assistance determinations shall be based upon a national guard 1 member’s unit, the location at which drills are attended, or 2 whether the eligible individual is a member of the Iowa army 3 or air national guard. 4 4. The eligibility of applicants and amounts of educational 5 assistance to be paid shall be certified by the adjutant 6 general of Iowa to the college student aid commission 7 department , and all amounts that are or become due to a 8 community college, accredited private institution, or 9 institution of higher learning under the control of the state 10 board of regents under this section shall be paid to the 11 college or institution by the college student aid commission 12 department upon receipt of certification by the president or 13 governing board of the educational eligible institution as 14 to accuracy of charges made, and as to the attendance and 15 academic progress of the individual at the educational eligible 16 institution. The college student aid commission department 17 shall maintain an annual record of the number of participants 18 and the dollar value of the educational assistance provided. 19 Sec. 50. Section 261.87, subsections 1, 4, and 5, Code 20 Supplement 2011, are amended to read as follows: 21 1. Definitions. As used in this division , unless the 22 context otherwise requires : , 23 a. “Commission” means the college student aid commission. 24 b. “Eligible “eligible institution” means a community 25 college established under chapter 260C or an institution of 26 higher learning governed by the state board of regents. 27 c. “Financial need” means the difference between the 28 student’s financial resources available, including those 29 available from the student’s parents as determined by a 30 completed parents’ confidential statement, and the student’s 31 anticipated expenses while attending an eligible institution. 32 d. “Full-time resident student” means an individual resident 33 of Iowa who is enrolled at an eligible institution in a program 34 of study including at least twelve semester hours or the 35 -34- LSB 5165XD (35) 84 kh/rj 34/ 80
S.F. _____ H.F. _____ trimester or quarter equivalent. 1 e. “Part-time resident student” means an individual resident 2 of Iowa who is enrolled at an eligible institution in a 3 program of study including at least three semester hours or the 4 trimester or quarter equivalent. 5 f. “Qualified student” means a resident student who has 6 established financial need and who is meeting all program 7 requirements. 8 4. Discontinuance of attendance —— remittance. If a student 9 receiving a scholarship pursuant to this section discontinues 10 attendance before the end of any academic term, the entire 11 amount of any refund due to the student, up to the amount of any 12 payments made by the state, shall be remitted by the eligible 13 institution to the commission department . The commission 14 department shall deposit refunds paid to the commission 15 department in accordance with this subsection into the fund 16 established pursuant to subsection 5 . 17 5. Fund established. An all Iowa opportunity scholarship 18 fund is created in the state treasury as a separate fund under 19 the control of the commission department . All moneys deposited 20 or paid into the fund are appropriated and made available 21 to the commission department to be used for scholarships 22 for students meeting the requirements of this section . 23 Notwithstanding section 8.33 , any balance in the fund on June 24 30 of each fiscal year shall not revert to the general fund of 25 the state, but shall be available for purposes of this section 26 in subsequent fiscal years. 27 Sec. 51. Section 261.87, subsection 2, unnumbered paragraph 28 1, Code Supplement 2011, is amended to read as follows: 29 An all Iowa opportunity scholarship program is established 30 to be administered by the commission department . The awarding 31 of scholarships under the program is subject to appropriations 32 made by the general assembly. A person who meets all of the 33 following requirements is eligible for the program: 34 Sec. 52. Section 261.87, subsection 2, paragraph g, Code 35 -35- LSB 5165XD (35) 84 kh/rj 35/ 80
S.F. _____ H.F. _____ Supplement 2011, is amended to read as follows: 1 g. Begins enrollment at an eligible institution within two 2 academic years of graduation from high school and continuously 3 receives awards as a full-time or part-time student to maintain 4 eligibility. However, the student may defer participation in 5 the program for up to two years in order to pursue obligations 6 that meet conditions established by the commission state board 7 by rule or to fulfill military obligations. 8 Sec. 53. Section 261.87, subsection 3, paragraph c, Code 9 Supplement 2011, is amended to read as follows: 10 c. Scholarships awarded pursuant to this section shall 11 not exceed the student’s financial need, as determined by the 12 commission department , the average resident tuition rate and 13 mandatory fees established for institutions of higher learning 14 governed by the state board of regents, or the resident tuition 15 and mandatory fees charged for the program of enrollment by 16 the eligible institution at which the student is enrolled, 17 whichever is least. 18 Sec. 54. NEW SECTION . 261.88 All Iowa opportunity foster 19 care grant program. 20 1. The department shall develop and implement, in 21 cooperation with the department of human services and the 22 judicial branch, the all Iowa opportunity foster care grant 23 program in accordance with this section. 24 2. The program shall provide financial assistance for 25 postsecondary education or training to a person who has a high 26 school diploma or a high school equivalency diploma under 27 chapter 259A and is described by any of the following: 28 a. Is age seventeen and is in a court-ordered placement 29 under chapter 232 under the care and custody of the department 30 of human services or juvenile court services. 31 b. Is age seventeen and has been placed in the state 32 training school or the Iowa juvenile home pursuant to a court 33 order entered under chapter 232 under the care and custody of 34 the department of human services. 35 -36- LSB 5165XD (35) 84 kh/rj 36/ 80
S.F. _____ H.F. _____ c. Is age eighteen through twenty-three and is described by 1 any of the following: 2 (1) On the date the person reached age eighteen or during 3 the thirty calendar days preceding or succeeding that date, 4 the person was in a licensed foster care placement pursuant 5 to a court order entered under chapter 232 under the care and 6 custody of the department of human services or juvenile court 7 services. 8 (2) On the date the person reached age eighteen or during 9 the thirty calendar days preceding or succeeding that date, the 10 person was under a court order under chapter 232 to live with a 11 relative or other suitable person. 12 (3) The person was in a licensed foster care placement 13 pursuant to an order entered under chapter 232 prior to being 14 legally adopted after reaching age sixteen. 15 (4) On the date the person reached age eighteen or during 16 the thirty calendar days preceding or succeeding that date, 17 the person was placed in the state training school or the Iowa 18 juvenile home pursuant to a court order entered under chapter 19 232 under the care and custody of the department of human 20 services. 21 3. The program requirements shall include but are not 22 limited to all of the following: 23 a. Program assistance shall cover a program participant’s 24 expenses associated with attending an approved postsecondary 25 education or training program in this state. The expenses 26 shall include tuition and fees, books and supplies, child 27 care, transportation, housing, and other expenses approved by 28 the department. If a participant is attending on less than a 29 full-time basis, assistance provisions shall be designed to 30 cover tuition and fees and books and supplies, and assistance 31 for other expenses shall be prorated to reflect the hours 32 enrolled. 33 b. If the approved education or training program is more 34 than one year in length, the program assistance may be renewed. 35 -37- LSB 5165XD (35) 84 kh/rj 37/ 80
S.F. _____ H.F. _____ To renew the assistance, the participant must annually reapply 1 for the program and meet the academic progress standards of 2 the eligible institution or make satisfactory progress toward 3 completion of the training program. 4 c. A person shall be less than age twenty-three upon both 5 the date of the person’s initial application for the program 6 and the start date of the education or training program for 7 which the assistance is provided. Eligibility for program 8 assistance shall end upon the participant reaching age 9 twenty-four. 10 d. Assistance under the program shall not be provided for 11 expenses that are paid for by other programs for which funding 12 is available to assist the participant. 13 e. The department shall implement assistance provisions in 14 a manner to ensure that the total amount of assistance provided 15 under the program remains within the funding available for the 16 program. 17 Sec. 55. Section 261.93, Code 2011, is amended to read as 18 follows: 19 261.93 Program established —— who qualified. 20 1. An Iowa grant program is established to be administered 21 by the department . 22 2. A grant may be awarded to a resident of Iowa who is 23 admitted and in attendance as a full-time or part-time resident 24 student at an accredited higher education a community college 25 or an institution of higher education governed by the state 26 board of regents, and who establishes financial need. Grants 27 awarded shall be distributed to the appropriate accredited 28 higher education community college or institution of higher 29 education for payment of educational expenses, including 30 tuition, room, board, and mandatory fees, with any balance to 31 be distributed to the student for whom the grant is awarded. 32 Sec. 56. Section 261.93A, Code 2011, is amended to read as 33 follows: 34 261.93A Appropriation —— percentages. 35 -38- LSB 5165XD (35) 84 kh/rj 38/ 80
S.F. _____ H.F. _____ Of the funds appropriated to the college student aid 1 commission department to be allocated for the Iowa grant 2 program for each fiscal year, thirty-seven and six-tenths 3 percent shall be reserved for students attending regents 4 institutions, twenty-five and nine-tenths percent shall 5 be reserved for students attending community colleges, and 6 thirty-six and five-tenths percent shall be reserved for 7 students attending private colleges and universities. Funds 8 appropriated for the Iowa grant program shall be used to 9 supplement, not supplant, funds appropriated for other existing 10 programs at the eligible institutions. 11 Sec. 57. Section 261.111, subsections 1, 3, 4, 6 through 9, 12 Code 2011, are amended to read as follows: 13 1. A teacher shortage forgivable loan program is 14 established to be administered by the college student aid 15 commission department . An individual is eligible for the 16 forgivable loan program if the individual is a resident of 17 this state who is enrolled as a sophomore, junior, senior, 18 or graduate student in an approved practitioner preparation 19 program in a designated area in which teacher shortages are 20 anticipated at an institution of higher learning under the 21 control of the state board of regents or an accredited private 22 institution as defined in section 261.9 . 23 3. Each applicant shall, in accordance with the rules of the 24 commission department , do all of the following: 25 a. Complete and file an application for a teacher shortage 26 forgivable loan. The individual shall be responsible for the 27 prompt submission of any information required by the commission 28 department . 29 b. File a new application and submit information as required 30 by the commission department annually on the basis of which the 31 applicant’s eligibility for the renewed forgivable loan will be 32 evaluated and determined. 33 4. Forgivable loans to eligible students shall not become 34 due until after the student graduates or leaves school. The 35 -39- LSB 5165XD (35) 84 kh/rj 39/ 80
S.F. _____ H.F. _____ individual’s total loan amount, including principal and 1 interest, shall be reduced by twenty percent for each year in 2 which the individual remains an Iowa resident and is employed 3 in Iowa by a school district or an accredited nonpublic school 4 as a practitioner in the teacher shortage area for which the 5 loan was approved. If the commission department determines 6 that the person does not meet the criteria for forgiveness of 7 the principal and interest payments, the commission department 8 shall establish a plan for repayment of the principal and 9 interest over a ten-year period. If a person required to 10 make the repayment does not make the required payments, the 11 commission department shall provide for payment collection. 12 6. The commission shall prescribe by rule the interest rate 13 for the forgivable loan. 14 7. 6. A teacher shortage forgivable loan repayment 15 fund is created for deposit of payments made by forgivable 16 loan recipients who do not fulfill the conditions of the 17 forgivable loan program and any other moneys appropriated to 18 or received by the commission department for deposit in the 19 fund. Notwithstanding section 8.33 , moneys deposited in the 20 fund shall not revert to the general fund of the state at the 21 end of any fiscal year but shall remain in the forgivable loan 22 repayment fund and be continuously available to make additional 23 loans under the program. Notwithstanding section 12C.7, 24 subsection 2 , interest or earnings on moneys deposited in the 25 fund shall be credited to the fund. 26 8. 7. For purposes of this section , unless the context 27 otherwise requires, “teacher” means the same as defined in 28 section 272.1 . 29 9. 8. The commission department shall submit in a report 30 to the general assembly by January 1, annually, the number 31 of students who received forgivable loans pursuant to this 32 section , which institutions the students were enrolled in, and 33 the amount paid to each of the institutions on behalf of the 34 students who received forgivable loans pursuant to this section 35 -40- LSB 5165XD (35) 84 kh/rj 40/ 80
S.F. _____ H.F. _____ and the total amount of loans outstanding, including a schedule 1 of years remaining on the outstanding loans. 2 Sec. 58. Section 261.112, subsections 1, 3, 5, and 6, Code 3 Supplement 2011, are amended to read as follows: 4 1. A teacher shortage loan forgiveness program is 5 established to be administered by the commission department . 6 A teacher is eligible for the program if the teacher is 7 practicing in a teacher shortage area as designated by the 8 department of education pursuant to subsection 2 . For purposes 9 of this section , “teacher” means an individual holding a 10 practitioner’s license issued under chapter 272 , who is 11 employed in a nonadministrative position in a designated 12 shortage area by a school district or area education agency 13 pursuant to a contract issued by a board of directors under 14 section 279.13 . 15 3. Each applicant for loan forgiveness shall, in accordance 16 with the rules of the commission state board , do all of the 17 following: 18 a. Complete and file an application for teacher shortage 19 loan forgiveness. The individual shall be responsible for the 20 prompt submission of any information required by the commission 21 department . 22 b. File a new application and submit information as required 23 by the commission department annually on the basis of which the 24 applicant’s eligibility for the renewed loan forgiveness will 25 be evaluated and determined. 26 c. Complete and return on a form approved by the commission 27 department an affidavit of practice verifying that the 28 applicant is a teacher in an eligible teacher shortage area. 29 5. A teacher shortage loan forgiveness repayment fund 30 is created for deposit of moneys appropriated to or received 31 by the commission department for use under the program. 32 Notwithstanding section 8.33 , moneys deposited in the fund 33 shall not revert to any fund of the state at the end of any 34 fiscal year but shall remain in the loan forgiveness repayment 35 -41- LSB 5165XD (35) 84 kh/rj 41/ 80
S.F. _____ H.F. _____ fund and be continuously available for loan forgiveness under 1 the program. Notwithstanding section 12C.7, subsection 2 , 2 interest or earnings on moneys deposited in the fund shall be 3 credited to the fund. 4 6. The commission department shall submit in a report to 5 the general assembly by January 1, annually, the number of 6 individuals who received loan forgiveness pursuant to this 7 section , which shortage areas the teachers taught in, the 8 amount paid to each program participant, and other information 9 identified by the commission department as indicators of 10 outcomes from the program. 11 Sec. 59. Section 261.112, subsection 7, Code Supplement 12 2011, is amended by striking the subsection. 13 Sec. 60. Section 261.128, subsections 1 and 2, Code 2011, 14 are amended to read as follows: 15 1. The commission department shall establish a health 16 care professional incentive payment program to recruit and 17 retain health care professionals in this state. Funding for 18 the program may be provided through the health care workforce 19 shortage fund or the health care professional and Iowa needs 20 nurses now initiative account created in section 135.175 . 21 2. The commission department shall administer the incentive 22 payment program with the assistance of Des Moines university 23 —— osteopathic medical center. 24 Sec. 61. Section 261.128, subsection 3, unnumbered 25 paragraph 1, Code 2011, is amended to read as follows: 26 The commission state board , with the assistance of Des 27 Moines university —— osteopathic medical center, shall adopt 28 rules pursuant to chapter 17A relating to the establishment 29 and administration of the health care professional incentive 30 payment program. The rules adopted shall address all of the 31 following: 32 Sec. 62. Section 261.128, subsection 3, paragraph b, Code 33 2011, is amended to read as follows: 34 b. The process for awarding incentive payments. 35 -42- LSB 5165XD (35) 84 kh/rj 42/ 80
S.F. _____ H.F. _____ The commission department of education shall receive 1 recommendations from the department of public health regarding 2 selection of incentive payment recipients. The process 3 shall require each recipient to enter into an agreement with 4 the commission department of education that specifies the 5 obligations of the recipient and the commission department 6 prior to receiving the incentive payment. 7 Sec. 63. Section 261.129, subsection 1, paragraphs a, c, and 8 d, Code 2011, are amended to read as follows: 9 a. The commission department shall establish a nurse 10 educator incentive payment program. Funding for the program 11 may be provided through the health care workforce shortage 12 fund or the health care professional and Iowa needs nurses 13 now initiative account created in section 135.175 . For the 14 purposes of this subsection , “nurse educator” means a registered 15 nurse who holds a master’s degree or doctorate degree and is 16 employed as a faculty member who teaches nursing in a nursing 17 education program as provided in 655 IAC 2.6 approved by the 18 board of nursing at a community college, an accredited private 19 institution, or an institution of higher education governed by 20 the state board of regents. 21 c. The nurse educator and the commission department shall 22 enter into an agreement specifying the obligations of the nurse 23 educator and the commission department . If the nurse educator 24 leaves the qualifying teaching position prior to teaching for 25 four consecutive academic years, the nurse educator shall be 26 liable to repay the incentive payment amount to the state, plus 27 interest as specified by rule. However, if the nurse educator 28 leaves the qualifying teaching position involuntarily, the 29 nurse educator shall be liable to repay only a pro rata amount 30 of the incentive payment based on incompleted years of service. 31 d. The commission state board , in consultation with 32 the department of public health, the board of nursing, the 33 department of education, and the Iowa nurses association, 34 shall adopt rules pursuant to chapter 17A relating to the 35 -43- LSB 5165XD (35) 84 kh/rj 43/ 80
S.F. _____ H.F. _____ establishment and administration of the nurse educator 1 incentive payment program. The rules shall include provisions 2 specifying what constitutes a qualifying teaching position. 3 Sec. 64. Section 261.129, subsection 2, paragraphs a, b, and 4 c, Code 2011, are amended to read as follows: 5 a. The commission department shall establish a nursing 6 faculty fellowship program to provide funds to nursing schools 7 in the state, including but not limited to nursing schools 8 located at community colleges, for fellowships for individuals 9 employed in qualifying positions on the nursing faculty. 10 Funding for the program may be provided through the health care 11 workforce shortage fund or the health care professional and the 12 Iowa needs nurses now initiative account created in section 13 135.175 . The program shall be designed to assist nursing 14 schools in filling vacancies in qualifying positions throughout 15 the state. 16 b. The commission department , in consultation with the 17 department of public health, the board of nursing, the 18 department of education, and the Iowa nurses association, and 19 in cooperation with nursing schools throughout the state, shall 20 develop a distribution formula which shall provide that no more 21 than thirty percent of the available moneys are awarded to a 22 single nursing school. Additionally, the program shall limit 23 funding for a qualifying position in a nursing school to no 24 more than ten thousand dollars per year for up to three years. 25 c. The commission state board , in consultation with 26 the department of public health, the board of nursing, the 27 department of education, and the Iowa nurses association, shall 28 adopt rules pursuant to chapter 17A to administer the program. 29 The rules shall include provisions specifying what constitutes 30 a qualifying position at a nursing school. 31 Sec. 65. Section 261.129, subsection 2, paragraph d, 32 unnumbered paragraph 1, Code 2011, is amended to read as 33 follows: 34 In determining eligibility for a fellowship, the commission 35 -44- LSB 5165XD (35) 84 kh/rj 44/ 80
S.F. _____ H.F. _____ department shall consider all of the following: 1 Sec. 66. Section 261.129, subsection 3, paragraphs a and c, 2 Code 2011, are amended to read as follows: 3 a. The commission department shall establish a nurse 4 educator scholarship program. Funding for the program may 5 be provided through the health care workforce shortage fund 6 or the health care professional and the Iowa needs nurses 7 now initiative account created in section 135.175 . The goal 8 of the nurse educator scholarship program is to address the 9 waiting list of qualified applicants to Iowa’s nursing schools 10 by providing incentives for the training of additional nursing 11 educators. For the purposes of this subsection, “nurse 12 educator” means a registered nurse who holds a master’s degree 13 or doctorate degree and is employed as a faculty member who 14 teaches nursing in a nursing education program as provided in 15 655 IAC 2.6 approved by the board of nursing at a community 16 college, an accredited private institution, or an institution 17 of higher education governed by the state board of regents. 18 c. The commission state board , in consultation with 19 the department of public health, the board of nursing, the 20 department of education, and the Iowa nurses association, 21 shall adopt rules pursuant to chapter 17A relating to the 22 establishment and administration of the nurse educator 23 scholarship program. The rules shall include provisions 24 specifying what constitutes a qualifying teaching position and 25 the amount of any scholarship. 26 Sec. 67. Section 261.129, subsection 4, paragraphs a, c, and 27 e, Code 2011, are amended to read as follows: 28 a. The commission department shall establish a nurse 29 educator scholarship-in-exchange-for-service program. 30 Funding for the program may be provided through the 31 health care workforce shortage fund or the health care 32 professional and Iowa needs nurses now initiative account 33 created in section 135.175 . The goal of the nurse educator 34 scholarship-in-exchange-for-service program is to address 35 -45- LSB 5165XD (35) 84 kh/rj 45/ 80
S.F. _____ H.F. _____ the waiting list of qualified applicants to Iowa’s nursing 1 schools by providing incentives for the education of additional 2 nursing educators. For the purposes of this subsection, “nurse 3 educator” means a registered nurse who holds a master’s degree 4 or doctorate degree and is employed as a faculty member who 5 teaches nursing in a nursing education program as provided in 6 655 IAC 2.6 approved by the board of nursing at a community 7 college, an accredited private institution, or an institution 8 of higher education governed by the state board of regents. 9 c. The scholarship-in-exchange-for-service recipient 10 and the commission department shall enter into an agreement 11 specifying the obligations of the applicant and the commission 12 department . If the nurse educator leaves the qualifying 13 teaching position prior to teaching for four consecutive 14 academic years, the nurse educator shall be liable to repay the 15 scholarship-in-exchange-for-service amount to the state plus 16 interest as specified by rule. However, if the nurse educator 17 leaves the qualified teaching position involuntarily, the nurse 18 educator shall be liable to repay only a pro rata amount of the 19 scholarship based on incomplete years of service. 20 e. The commission state board , in consultation with 21 the department of public health, the board of nursing, the 22 department of education, and the Iowa nurses association, 23 shall adopt rules pursuant to chapter 17A relating to the 24 establishment and administration of the nurse educator 25 scholarship-in-exchange-for-service program. The rules 26 shall include the provisions specifying what constitutes 27 a qualifying teaching position and the amount of any 28 scholarship-in-exchange-for-service. 29 Sec. 68. Section 261A.5, Code 2011, is amended to read as 30 follows: 31 261A.5 Creation as public instrumentality. 32 The Iowa higher education loan authority is created as 33 a body politic and corporate. The authority is a public 34 instrumentality and the exercise by the authority of the 35 -46- LSB 5165XD (35) 84 kh/rj 46/ 80
S.F. _____ H.F. _____ powers conferred by this chapter is the performance of an 1 essential public function. The authority is attached to the 2 college student aid commission department of education for 3 administrative purposes. 4 Sec. 69. Section 261D.3, subsection 2, paragraph e, Code 5 2011, is amended to read as follows: 6 e. One alternate member appointed by the Iowa college 7 student aid commission director of the department of education . 8 Sec. 70. Section 261E.2, subsection 4, Code 2011, is amended 9 to read as follows: 10 4. “Eligible postsecondary institution” means an institution 11 of higher learning under the control of the state board of 12 regents, a community college established under chapter 260C , or 13 an accredited private institution as defined in section 261.9 14 261.1 . 15 Sec. 71. Section 261F.2, subsection 1, paragraph a, Code 16 2011, is amended to read as follows: 17 a. Develop, in consultation with the college student 18 aid commission department of education , a code of conduct 19 governing educational loan activities with which the covered 20 institution’s officers, employees, and agents shall comply. 21 Sec. 72. Section 261F.2, subsections 2 and 3, Code 2011, are 22 amended to read as follows: 23 2. The college student aid commission department of 24 education shall provide to covered institutions assistance 25 and guidance relating to the development, administration, and 26 monitoring of a code of conduct governing educational loan 27 activities. 28 3. Except as provided in this section , the college student 29 aid commission department of education is not subject to the 30 duties, restrictions, prohibitions, and penalties of this 31 chapter . 32 Sec. 73. NEW SECTION . 262.83 Minority academic grants for 33 economic success. 34 1. The general assembly finds that the failure of many young 35 -47- LSB 5165XD (35) 84 kh/rj 47/ 80
S.F. _____ H.F. _____ Iowans to complete their education limits their opportunity 1 for a life of fulfillment and hinders the state’s efforts to 2 provide a well-trained workforce for business and industry 3 in Iowa. The general assembly also declares that it is the 4 policy of this state to apply positive measures to ensure 5 that equal opportunities exist for minority persons to 6 pursue their educational goals. Therefore, the Iowa minority 7 academic grants for economic success program is established 8 to be administered by the state board of regents to provide 9 additional funding to the state board of regents institutions, 10 community colleges, and accredited private institutions in 11 order to encourage resident minority students to remain in 12 Iowa, to attend community colleges, private colleges, and 13 universities in Iowa, and to assure that a limited family 14 income will not be a barrier for a minority person to pursue a 15 postsecondary education. 16 2. As used in this section, unless the context otherwise 17 requires: 18 a. “Accredited private institution” means an accredited 19 private institution as defined in section 261.1. 20 b. “Financial need” means the difference between the 21 student’s financial resources, including resources available 22 from the student’s parents and the student, as determined 23 by a completed parents’ financial statement and including 24 any noncampus-administered federal or state grants and 25 scholarships, and the student’s estimated expenses while 26 attending the institution. A student shall accept all 27 available federal and state grants and scholarships before 28 being considered eligible for grants under the Iowa minority 29 academic grants for economic success program. Financial need 30 shall be reconsidered on at least an annual basis. 31 c. “Full-time student” means an individual who is enrolled 32 at an accredited private institution, community college, or 33 board of regents university for at least twelve semester hours 34 or the trimester or quarter equivalent. 35 -48- LSB 5165XD (35) 84 kh/rj 48/ 80
S.F. _____ H.F. _____ d. “Minority person” means an individual who is African 1 American, Hispanic, Asian, or a Pacific Islander, an American 2 Indian, or an Alaskan Native American. 3 e. “Part-time student” means an individual who is enrolled 4 at an accredited private institution, community college, or 5 board of regents university in a course of study including 6 at least three semester hours or the trimester or quarter 7 equivalent of three semester hours. 8 f. “Program” means the Iowa minority academic grants for 9 economic success program established in this section. 10 3. A grant under the program may be awarded to any 11 minority person who is a resident of Iowa, who is accepted 12 for admission or is attending a board of regents university, 13 community college, or an accredited private institution, and 14 who demonstrates financial need. 15 4. Full-time students may receive grants for not more than 16 eight semesters of undergraduate study or the trimester or 17 quarter equivalent of eight semesters of undergraduate study. 18 Part-time students may receive grants for not more than sixteen 19 semesters of undergraduate study or the trimester or quarter 20 equivalent of sixteen semesters of undergraduate study. 21 5. The amount of the grant shall not exceed a student’s 22 yearly financial need or three thousand five hundred dollars, 23 whichever is less. If the student is attending or seeking to 24 enroll in an accredited private institution, fifty percent of 25 the amount of the grant shall be provided by the accredited 26 private institution and fifty percent shall be provided by the 27 state board of regents from state funds appropriated for that 28 purpose. 29 6. Grants shall be awarded on an annual basis and shall 30 be credited by the institution against the student’s tuition, 31 fees, room, and board, at the beginning of each semester, 32 trimester, or quarter in equal installments upon certification 33 by the institution that the student is admitted and attending 34 the institution. 35 -49- LSB 5165XD (35) 84 kh/rj 49/ 80
S.F. _____ H.F. _____ 7. If a student receiving a grant under the program 1 discontinues attendance before the end of any academic period, 2 but after receiving payment of grant moneys for the academic 3 period, the entire amount of any refund due the student, up to 4 the amount of any payments made by the state, shall be remitted 5 by the private institution to the state board of regents. 6 8. In administering the program for the community colleges 7 and the private institutions, the state board of regents shall 8 do all of the following: 9 a. Provide application forms to students enrolled and 10 attending or seeking to enroll and attend community colleges or 11 accredited private institutions. 12 b. Develop and provide confidential financial statement 13 forms to the parents or guardians of students applying for 14 grants under the program. 15 c. Approve and award grants to community colleges and 16 accredited private institutions under the program. 17 d. Adopt rules for determining financial need and residency 18 for the purpose of awarding grants to qualified students, 19 and any other rules necessary for the administration of the 20 program. 21 e. Report annually to the governor and the general assembly 22 on the progress and implementation of the program. 23 f. Require postsecondary institutions that receive moneys 24 from students awarded grants under the program to furnish any 25 information necessary for the implementation or administration 26 of the program. 27 g. Solicit and receive private contributions and federal 28 grants available for purposes of the program. 29 h. Maintain records on the recipients of grants awarded 30 under this section. 31 i. Administer funds appropriated for the Iowa minority 32 academic grants for economic success program to carry out the 33 duties of the state board of regents. 34 j. Provide for the proration of funds among qualified 35 -50- LSB 5165XD (35) 84 kh/rj 50/ 80
S.F. _____ H.F. _____ applicants if funds available are insufficient to pay all 1 approved grants. 2 9. An applicant for a grant under the program shall do all 3 of the following: 4 a. Complete and file an application for a grant on forms 5 provided by the state board of regents. 6 b. Submit the financial information required for evaluation 7 of the applicant’s financial need for a grant. 8 c. Comply with rules and information requests of the state 9 board of regents made in relation to the program. 10 Sec. 74. Section 262.92, subsection 3, Code 2011, is amended 11 to read as follows: 12 3. The board of regents shall adopt rules to establish 13 program guidelines for the universities under the board’s 14 control and for the administration and coordination of program 15 efforts. Rules adopted shall include methods of recording data 16 relating to voucher recipients and making the data available to 17 the college student aid commission department of education . 18 Sec. 75. Section 262.93, Code 2011, is amended to read as 19 follows: 20 262.93 Reports to general assembly. 21 The college student aid commission department of education 22 and the state board of regents each shall submit, by January 23 15 of each year, a report on the progress and implementation 24 of the programs which they administer under sections 261.102 25 through 261.105 , 262.82 , and 262.92 . The reports shall 26 include, but are not limited to, the numbers of students 27 participating in the programs and allocation of funds 28 appropriated for the programs. 29 Sec. 76. Section 272C.4, subsection 10, Code 2011, is 30 amended to read as follows: 31 10. Establish procedures consistent with the provisions 32 of section 261.121, subsection 2 , Code 2011, and sections 33 261.122 through 261.127 , Code 2011, by which, in the board’s 34 discretion, a license shall be suspended, denied, or revoked, 35 -51- LSB 5165XD (35) 84 kh/rj 51/ 80
S.F. _____ H.F. _____ or other disciplinary action imposed, with regard to a licensee 1 subject to the board’s jurisdiction who has defaulted on a 2 repayment or service obligation under any federal or state 3 educational loan or service-conditional scholarship program. 4 Notwithstanding any other provision to the contrary, each board 5 shall defer to the federal or state program’s determination of 6 default upon certification by the program of such a default 7 on the part of a licensee, and shall remove the suspension, 8 grant the license, or stay the revocation or other disciplinary 9 action taken if the federal or state program certifies that 10 the defaulting licensee has agreed to fulfill the licensee’s 11 obligation, or is complying with an approved repayment plan. 12 Licensure sanctions shall be reinstated upon certification that 13 a defaulting licensee has failed to comply with the repayment 14 or service requirements, as determined by the federal or state 15 program. The provisions of this subsection relating to board 16 authority to act in response to notification of default shall 17 apply not only to a licensing board, as defined in section 18 272C.1 , but also to any other licensing board or authority 19 regulating a license authorized by the laws of this state. 20 Sec. 77. Section 303.17, subsection 3, paragraph b, 21 subparagraph (5), subparagraph division (e), Code 2011, is 22 amended to read as follows: 23 (e) A faculty member of an accredited private institution as 24 defined in section 261.9 261.1 . 25 Sec. 78. Section 522B.11, subsection 1, paragraph n, Code 26 Supplement 2011, is amended to read as follows: 27 n. Failing to comply with an administrative or court order 28 related to repayment of loans issued under chapter 261 to the 29 college student aid commission department of education . 30 DIVISION II 31 POSTSECONDARY REGISTRATION —— REQUIREMENTS 32 Sec. 79. Section 261B.2, Code 2011, is amended to read as 33 follows: 34 261B.2 Definitions. 35 -52- LSB 5165XD (35) 84 kh/rj 52/ 80
S.F. _____ H.F. _____ As used in this chapter , unless the context otherwise 1 requires: 2 1. “Commission” means the college student aid commission 3 created pursuant to section 261.1 . “Course of instruction” 4 means a postsecondary educational program that a school 5 offers through in-person instruction, distance delivery, 6 correspondence study methods, or any combination thereof. 7 2. “Degree” means a postsecondary credential conferring 8 on the recipient the title of associate, bachelor, master, 9 or doctor, or an equivalent title, signifying educational 10 attainment based on any one or a combination of study or 11 the equivalent which may be supplemented by experience or 12 achievement testing. A postsecondary degree under this chapter 13 shall not include an honorary degree or other unearned degree. 14 3. “Department” means the department of education. 15 4. “Presence” means maintaining an address within Iowa 16 a location in Iowa at which a student participates in any 17 structured activity related to a school’s distance education 18 course of instruction, with the exception of proctored 19 examinations. “Presence” also means an address, location, 20 telephone number, or internet protocol address in Iowa from 21 which a school conducts any aspect of its operations. For the 22 purpose of a residential course of instruction offered on a 23 school’s campus that is not located in Iowa, “presence” does not 24 include: 25 a. Occasional, short-term activities conducted at a location 26 in Iowa for the purpose of recruiting students for the school’s 27 residential course of instruction. 28 b. A residency, practicum, internship, clinical, or 29 similar experience that the school permits the student to 30 participate in at a location in Iowa, provided that a person 31 who provides instruction or supervision at the Iowa location is 32 not compensated by the school . 33 4. 5. “School” means an agency of the state or political 34 subdivision of the state, individual, partnership, company, 35 -53- LSB 5165XD (35) 84 kh/rj 53/ 80
S.F. _____ H.F. _____ firm, society, trust, association, corporation, or any 1 combination which meets any of the following criteria: 2 a. Is, owns, or operates a nonprofit postsecondary 3 educational institution. 4 b. Provides a postsecondary instructional program or course 5 of instruction leading to a degree. 6 c. Uses in its name the term “college” , “academy” , 7 “institute” , or “university” or a similar term to imply that the 8 person is primarily engaged in the education of students at the 9 postsecondary level, and which makes a charge for its services. 10 5. 6. “State board” means the state board of education. 11 7. “Student” means a person who enrolls in or seeks to 12 enroll in a course of instruction offered or conducted by a 13 school. 14 Sec. 80. Section 261B.3, Code 2011, is amended to read as 15 follows: 16 261B.3 Registration. 17 1. Except as provided in section 261B.11 , a school that 18 maintains or shall register with the department if a person 19 compensated by the school conducts one or more courses any 20 portion of a course of instruction , including courses of 21 instruction by correspondence or other distance delivery 22 method, offered in this state or which if the school otherwise 23 has a presence in this state and offers courses in other states 24 or foreign countries shall register with the commission . 25 a. Registrations shall be renewed every four two years 26 or and shall be amended upon any substantive change in 27 location , program offering, or accreditation. A school 28 makes a substantive change in a program offering when the 29 school proposes to offer or modify a program that requires 30 the approval of the state board or any other state agency 31 authorized to approve the school or its program in this state. 32 b. Registration shall be made on application forms 33 approved and supplied made available by the commission 34 department and at the time and in the manner prescribed by 35 -54- LSB 5165XD (35) 84 kh/rj 54/ 80
S.F. _____ H.F. _____ the commission department . Upon receipt of a complete and 1 accurate registration application, the commission shall issue 2 an acknowledgment of document filed and send it to the school. 3 2. The commission department may request require a school 4 to provide additional information as the department deems 5 necessary to enable the commission to determine the accuracy 6 and completeness of the information contained in the evaluate a 7 school’s suitability for registration application . 8 3. The department shall notify a school in writing of its 9 decision to grant or deny registration and any stipulation 10 associated with the school’s registration. 11 4. If a school fails to meet any of the registration 12 criteria, or if the commission department believes that false, 13 misleading, or incomplete information has been submitted in 14 connection with an application for registration, the commission 15 department may deny registration. The commission department 16 shall conduct a hearing on the denial if a hearing is requested 17 by a school. The commission may withhold an acknowledgment 18 of document filed pending the outcome of the hearing. Upon a 19 finding after the hearing that the school fails to meet any of 20 the registration criteria, or that information contained in the 21 registration application is false, misleading, or incomplete, 22 the commission department shall deny an acknowledgment of 23 document filed to the school registration . The commission 24 department shall make the final decision on each registration. 25 However, the decision of the commission department is subject 26 to judicial review in accordance with section 17A.19 . 27 3. The commission shall adopt rules under chapter 17A for 28 the implementation of this chapter . 29 Sec. 81. Section 261B.3A, Code 2011, is amended to read as 30 follows: 31 261B.3A Requirements. 32 1. In order to register, a school shall be accredited 33 by an agency or organization approved or recognized by the 34 United States department of education or a successor agency, 35 -55- LSB 5165XD (35) 84 kh/rj 55/ 80
S.F. _____ H.F. _____ be approved by any other state agency authorized to approve 1 the school in this state, and, subsequently, be approved for 2 operation by the commission department . 3 2. A practitioner preparation program , as defined in 4 section 272.1, operated by a school that applies to register 5 the program in accordance with this chapter shall, in order to 6 register, be accredited by an agency or organization approved 7 or recognized by the United States department of education or a 8 successor agency, be approved by the state board of education 9 pursuant to section 256.7, subsection 3 , and, subsequently, be 10 approved for operation by the commission department . 11 3. The department may grant a provisional registration to 12 a school that is not accredited by an agency or organization 13 that is recognized by the United States department of education 14 or its successor agency. The department shall determine 15 the duration of the provisional registration. During the 16 provisional registration period, the school shall, at six-month 17 intervals, submit to the department documentation of its 18 progress toward achieving accreditation. The department may 19 renew the school’s provisional registration at its discretion 20 if the documentation submitted indicates that the school is 21 making progress toward accreditation. 22 3. 4. Nothing in this chapter shall be construed to exempt 23 a school from the requirements of chapter 490 , or 491 , or 714 . 24 Sec. 82. Section 261B.4, Code 2011, is amended to read as 25 follows: 26 261B.4 Registration information. 27 As a basis for registration, schools shall provide the 28 commission department with the following information: 29 1. The name or title of the school. 30 2. The As applicable, the principal location of the school 31 in this state, in other states, and in foreign countries, and 32 the location of the place or places in this state, in other 33 states, and in foreign countries where instruction is likely 34 to be given. 35 -56- LSB 5165XD (35) 84 kh/rj 56/ 80
S.F. _____ H.F. _____ 3. A schedule of the total tuition charges, fees, and other 1 costs payable to the school by a student during the course of 2 instruction . 3 4. The refund policy of the school for the return of 4 refundable portions of tuition, fees, or other charges. 5 The tuition refund policy for Iowa resident students of a 6 for-profit school with at least one program of more than 7 four months in length that leads to a recognized educational 8 credential, such as an academic or professional degree, 9 diploma, or license, must comply with section 714.23. 10 5. The degrees granted by the school. 11 6. 5. The names and addresses of the principal owners of 12 the school or the officers and members of the legal governing 13 body of the school. 14 7. 6. The name and address of the chief executive officer 15 of the school. 16 8. 7. A copy of or a description of the means by which the 17 school intends to comply with section 261B.9 . 18 9. 8. The name of the accrediting agency recognized by the 19 United States department of education or a successor agency 20 which has accredited the school , and the status under which 21 accreditation is held , the name of any other accrediting or 22 licensing entity that has accredited or licensed the school or 23 its programs, a copy of the accrediting or licensure notice 24 issued by the entity, and a record of any sanctions the entity 25 has levied against the school . 26 10. 9. The name, address, and telephone number of a contact 27 person in this state. A school that applies for registration 28 to offer a course of instruction by distance delivery may 29 provide the name and address of its registered agent in Iowa. 30 11. 10. The names or titles and a description of the 31 courses and degrees to be offered in Iowa . 32 12. 11. A description of procedures for the preservation 33 of student records and the contact information to be used 34 by students and graduates who seek to obtain transcript 35 -57- LSB 5165XD (35) 84 kh/rj 57/ 80
S.F. _____ H.F. _____ information . 1 13. 12. The academic and instructional methodologies and 2 delivery systems to be used by the school and the extent to 3 which the school anticipates each methodology and delivery 4 system will be used, including , but not limited to , classroom 5 instruction, correspondence, electronic telecommunications 6 distance delivery , independent study, and portfolio experience 7 evaluation. 8 13. The name, title, business address, telephone number, 9 and resume of an Iowa resident compensated by the school to 10 perform duties at a location in Iowa. A school that applies 11 for registration to offer a course of instruction by distance 12 delivery may provide an internet address as the business 13 address for an Iowa resident it compensates to perform duties 14 remotely from a location in Iowa. 15 14. The school’s official Stafford loan cohort default rate 16 as calculated by the United States department of education for 17 the three most recent federal fiscal years, if applicable. 18 15. Average student loan debt upon graduation of students 19 completing programs at the school. 20 16. The graduation rate of undergraduate students as 21 reported to the United States department of education. 22 17. Evidence that the school meets the conditions of 23 financial responsibility established in section 714.18, or that 24 the school qualifies for an exemption under section 714.19 or 25 714.22. 26 Sec. 83. Section 261B.5, Code 2011, is amended to read as 27 follows: 28 261B.5 Changes. 29 If any information provided to the commission department 30 under section 261B.3 or 261B.4 changes, the school shall inform 31 the commission department within ninety days of the effective 32 date of the change in the format specified by the commission 33 department . 34 Sec. 84. Section 261B.6, Code 2011, is amended to read as 35 -58- LSB 5165XD (35) 84 kh/rj 58/ 80
S.F. _____ H.F. _____ follows: 1 261B.6 List of schools. 2 The commission department shall maintain a list of 3 registered schools and the list and the information submitted 4 under sections 261B.3 and 261B.4 are public records under 5 chapter 22 . 6 Sec. 85. Section 261B.7, Code 2011, is amended to read as 7 follows: 8 261B.7 Unauthorized representation. 9 Neither a A school nor its or a school’s officials or 10 employees shall not advertise or represent that the school is 11 approved or accredited by the commission department or the 12 state of Iowa nor shall it use the registration as a . However, 13 a registered school shall reference in promotional materials 14 that the school is registered by the department on behalf 15 of the state of Iowa and provide the department’s contact 16 information for students who wish to inquire about the school 17 or file a complaint . 18 Sec. 86. Section 261B.8, subsection 1, Code 2011, is amended 19 to read as follows: 20 1. The commission department shall set by rule and collect 21 a nonrefundable initial registration fee and a renewal of 22 registration fee from each registered school. Moneys collected 23 as initial registration fees and registration renewal fees 24 shall be considered a repayment receipt, as defined in section 25 8.2, and shall be retained by the department. 26 Sec. 87. Section 261B.8, subsection 3, Code 2011, is amended 27 by striking the subsection. 28 Sec. 88. Section 261B.9, subsection 5, Code 2011, is amended 29 to read as follows: 30 5. Whether the postsecondary credential or certificate 31 issued, awarded, or credited to a student upon completion 32 of the course or the fact of completion of the course is 33 applicable toward a degree granted by the school and, if so, 34 under what circumstances the application will be made. 35 -59- LSB 5165XD (35) 84 kh/rj 59/ 80
S.F. _____ H.F. _____ Sec. 89. Section 261B.9, Code 2011, is amended by adding the 1 following new subsection: 2 NEW SUBSECTION . 7. The disclosures required by the 3 department for an out-of-state school that the state board 4 approves to offer a practitioner preparation program by 5 distance delivery method. 6 Sec. 90. NEW SECTION . 261B.10 Duties of the state board. 7 The state board shall do all of the following: 8 1. Adopt rules under chapter 17A for the implementation of 9 this chapter. 10 2. Establish reasonable registration standards for the 11 approval of postsecondary schools that are required to register 12 with the department in order to operate in this state. The 13 registration standards established by the state board shall 14 ensure that all of the following conditions are satisfied: 15 a. The courses, curriculum, and instruction offered by the 16 postsecondary school are of such quality and content as may 17 reasonably and adequately ensure achievement of the stated 18 objective for which the courses, curriculum, or instruction is 19 offered. 20 b. The postsecondary school has adequate space, equipment, 21 instructional material, and personnel to provide education and 22 training of good quality. 23 c. The educational and experience qualifications of 24 the postsecondary school’s directors, administrators, and 25 instructors are such as may reasonably ensure that students 26 will receive instruction consistent with the objectives of the 27 postsecondary school’s programs of study. 28 d. Upon completion of training or instruction, students are 29 given certificates, diplomas, or degrees as appropriate by the 30 postsecondary school indicating satisfactory completion of the 31 program. 32 e. The postsecondary school is financially responsible and 33 capable of fulfilling commitments for instruction. 34 3. Set by rule registration fees. 35 -60- LSB 5165XD (35) 84 kh/rj 60/ 80
S.F. _____ H.F. _____ Sec. 91. Section 261B.11, Code 2011, is amended to read as 1 follows: 2 261B.11 Exceptions. 3 1. This chapter does not apply to the following types of 4 schools and courses of instruction: 5 1. a. Schools and educational programs conducted by firms, 6 corporations, or persons solely for the training of their own 7 employees. 8 2. b. Apprentice or other training programs provided by 9 labor unions solely to members or applicants for membership. 10 3. c. Courses of instruction of an avocational or 11 recreational nature that do not lead to an occupational 12 objective. 13 4. d. Seminars, refresher courses, and programs of 14 instruction sponsored by professional, business, or farming 15 organizations or associations for the members and employees of 16 members of these organizations or associations. 17 5. e. Courses of instruction conducted by a public school 18 district or a combination of public school districts. 19 6. f. Colleges and universities authorized by the laws of 20 this state to grant degrees. 21 7. g. Schools or courses of instruction or courses of 22 training that are offered by a vendor solely to the purchaser 23 or prospective purchaser of the vendor’s product when the 24 objective of the school or course is to enable the purchaser 25 or the purchaser’s employees to gain skills and knowledge to 26 enable the purchaser to use the product. 27 8. h. Schools and educational programs conducted by 28 religious organizations solely for the religious instruction of 29 leadership practitioners of that religious organization. 30 9. i. Postsecondary educational institutions licensed by 31 the state of Iowa prior to July 1, 2009, under section 157.8 32 or 158.7 to conduct business operate as schools of cosmetology 33 arts and sciences or as barber schools in the state. 34 10. j. Accredited higher education Eligible institutions 35 -61- LSB 5165XD (35) 84 kh/rj 61/ 80
S.F. _____ H.F. _____ that meet the criteria established under as defined in section 1 261.92, subsection 1 261.1 . 2 11. k. Postsecondary educational institutions offering 3 programs limited to nondegree specialty vocational training 4 programs. 5 12. Not-for-profit colleges and universities established 6 and authorized by city ordinance to grant degrees. 7 l. Higher education institutions located in Iowa that are 8 affiliated with health care systems located in Iowa, and which 9 offer health professions programs that are accredited by an 10 accrediting agency recognized by the United States department 11 of education. 12 m. Higher education institutions located in Iowa whose 13 massage therapy curriculum is approved under administrative 14 rules of the professional licensure division of the department 15 of public health and whose instructors are licensed massage 16 therapists under chapter 152C. 17 2. A school that claims an exemption from registration 18 under subsection 1, paragraph “h” , “i” , “k” , “l” , or “m” , must 19 demonstrate to the department or its designee that it qualifies 20 for the exemption. The school must apply for approval of its 21 exemption claim on an application supplied by the department. 22 The department or its designee may approve the school’s 23 exemption claim or deny it. A school whose exemption claim is 24 approved must reapply to renew its exemption no less frequently 25 than every two years. 26 a. A school that is granted an exemption under this section 27 must file evidence of financial responsibility under section 28 714.18 or demonstrate to the department or its designee that 29 the school qualifies for an exemption under section 714.19 or 30 714.22. 31 b. A for-profit school with at least one program of 32 more than four months in length that leads to a recognized 33 educational credential, such as an academic or professional 34 degree, diploma, or license, must submit to the department or 35 -62- LSB 5165XD (35) 84 kh/rj 62/ 80
S.F. _____ H.F. _____ its designee a tuition refund policy that meets the conditions 1 of section 714.23. 2 3. A school that is denied an exemption claim by the 3 department or its designee, or that no longer qualifies for 4 a claimed exemption, shall apply for registration or cease 5 operating in Iowa. 6 Sec. 92. NEW SECTION . 261B.11A Ineligibility for state 7 student 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 Sec. 93. Section 261B.12, subsections 1 and 2, Code 2011, 15 are amended to read as follows: 16 1. When the commission or the commission’s designee 17 believes department determines a school is in violation of this 18 chapter , the commission department shall order the school to 19 show cause why the commission department should not issue a 20 cease and desist order to the school. 21 2. After the school’s response to the show cause order has 22 been reviewed by the commission department , the commission 23 department may issue a cease and desist order to the school if 24 the commission believes department determines that the school 25 continues to be in violation of this chapter . If the school 26 does not cease and desist, the commission department may seek 27 judicial enforcement of the cease and desist order in any 28 district court. 29 DIVISION III 30 POSTSECONDARY REGISTRATION UNLAWFUL ACTIVITY 31 Sec. 94. Section 714.17, Code 2011, is amended to read as 32 follows: 33 714.17 Unlawful advertising and selling of educational 34 courses of instruction . 35 -63- LSB 5165XD (35) 84 kh/rj 63/ 80
S.F. _____ H.F. _____ It shall be unlawful for any person, firm, association, 1 or corporation maintaining, advertising, or conducting in 2 Iowa any educational course of instruction for profit, or 3 for tuition charge, whether by classroom instructions , or by 4 correspondence, or by other delivery method to: 5 1. Falsely advertise or represent to any person any matter 6 material to such an educational course of instruction . All 7 advertising of such courses of instruction shall adhere to and 8 comply with the rules and regulations of the federal trade 9 commission as of July 4, 1965 . 10 2. Collect tuition or other charges in excess of one hundred 11 fifty dollars in the case of educational courses offered by 12 correspondence courses of study , in advance of the receipt and 13 approval by the pupil of the first assignment or lesson of such 14 course. Any contract providing for advance payment of more 15 than one hundred fifty dollars shall be voidable on the part of 16 the pupil or any person liable for the tuition provided for in 17 the contract. 18 3. Promise or guarantee employment utilizing information, 19 training, or skill purported to be provided or otherwise 20 enhanced by a an educational course, unless the promisor or 21 guarantor offers the student or prospective student a bona 22 fide contract of employment agreeing to employ said student 23 or prospective student for a period of not less than one 24 hundred twenty days in a business or other enterprise regularly 25 conducted by the promisor or guarantor and in which such 26 information, training, or skill is a normal condition of 27 employment. 28 Sec. 95. Section 714.18, subsection 1, Code 2011, is amended 29 to read as follows: 30 1. Except as otherwise provided in subsection 2 , every 31 person, firm, association, or corporation maintaining or 32 conducting in Iowa any such educational course of instruction 33 by classroom instruction or by correspondence or by other 34 distance delivery method, or soliciting in Iowa the sale of 35 -64- LSB 5165XD (35) 84 kh/rj 64/ 80
S.F. _____ H.F. _____ such course, shall file with the college student aid commission 1 department of education all of the following: 2 a. A continuous corporate surety bond to the state of 3 Iowa in the sum of fifty thousand dollars conditioned for 4 on the faithful performance of all contracts and agreements 5 with students made by such person, firm, association, or 6 corporation, or their salespersons; but the aggregate liability 7 of the surety for all breaches of the conditions of the bond 8 shall not exceed the sum of the bond. The surety on the 9 bond may cancel the bond upon giving thirty days’ written 10 notice to the college student aid commission department of 11 education and thereafter shall be relieved of liability for any 12 breach of condition occurring after the effective date of the 13 cancellation. 14 b. A statement designating a resident agent for the purpose 15 of receiving service in civil actions. In the absence of such 16 designation, service may be had upon the secretary of state if 17 service cannot otherwise be made in this state. 18 c. A copy of any catalog, prospectus, brochure, or other 19 advertising material intended for distribution in Iowa. 20 Such material shall state the cost of the educational course 21 offered, the schedule of tuition refunds for portions of the 22 educational course not completed, and if no refunds are to 23 be paid, the material shall so state. Any contract induced 24 by advertising materials not previously filed as provided in 25 this chapter shall be voidable on the part of the pupil or any 26 person liable for the tuition provided for in the contract. 27 Sec. 96. Section 714.18, subsection 2, unnumbered paragraph 28 1, Code 2011, is amended to read as follows: 29 A school licensed under the provisions of section 157.8 30 or 158.7 shall file with the college student aid commission 31 department of education the following: 32 Sec. 97. Section 714.18, subsection 2, paragraph a, Code 33 2011, is amended to read as follows: 34 a. (1) A continuous corporate surety bond to the state of 35 -65- LSB 5165XD (35) 84 kh/rj 65/ 80
S.F. _____ H.F. _____ Iowa in the sum of fifty thousand dollars or ten percent of the 1 total annual tuition collected, whichever is less, conditioned 2 for on the faithful performance of all contracts and agreements 3 with students made by such school. A school desiring to file 4 a surety bond based on a percentage of annual tuition shall 5 provide to the college student aid commission department of 6 education , in the form prescribed by the commission department , 7 a notarized statement attesting to the total amount of tuition 8 collected in the preceding twelve-month period. The commission 9 department shall determine the sufficiency of the statement and 10 the amount of the bond. Tuition information submitted pursuant 11 to this subparagraph shall be kept confidential. 12 (2) If the school has filed a performance bond with an 13 agency of the United States government pursuant to federal law, 14 the college student aid commission department of education 15 shall reduce the bond required by this paragraph “a” by an 16 amount equal to the amount of the federal bond. 17 (3) The aggregate liability of the surety for all breaches 18 of the conditions of the bond shall not exceed the sum of 19 the bond. The surety on the bond may cancel the bond upon 20 giving thirty days’ written notice to the college student aid 21 commission department of education and thereafter shall be 22 relieved of liability for any breach of condition occurring 23 after the effective date of the cancellation. 24 (4) The college student aid commission department of 25 education may accept a letter of credit from issued by a bank 26 in lieu of the corporate surety bond required by this paragraph 27 “a” subparagraphs (1) through (3), as applicable . 28 Sec. 98. Section 714.19, unnumbered paragraph 1, Code 2011, 29 is amended to read as follows: 30 None of the The provisions of sections 714.17 to 714.22 31 714.25 shall not apply to the following: 32 Sec. 99. Section 714.19, subsections 6 through 8, Code 2011, 33 are amended to read as follows: 34 6. Schools and educational programs conducted by firms, 35 -66- LSB 5165XD (35) 84 kh/rj 66/ 80
S.F. _____ H.F. _____ corporations, or persons for the training of their own 1 employees, for which no fee is charged. 2 7. Seminars, refresher courses , and schools of instruction 3 sponsored conducted by professional, business, or farming 4 organizations or associations for the members and employees of 5 members of such organizations or associations. A person who 6 provides instruction under this subsection who is not a member 7 or an employee of a member of the organization or association 8 shall not be eligible for this exemption. 9 8. Private business schools accredited by the accrediting 10 commission for business schools or an acknowledged accrediting 11 agency recognized by the United States department of education 12 or the council for higher education accreditation . 13 Sec. 100. Section 714.19, Code 2011, is amended by adding 14 the following new subsection: 15 NEW SUBSECTION . 10. Accredited private institutions as 16 defined in section 261.1. 17 Sec. 101. Section 714.22, subsection 1, Code 2011, is 18 amended to read as follows: 19 1. File a bond or a bond is filed on their behalf by a 20 parent corporation with the college student aid commission 21 department of education as required by section 714.18 . 22 Sec. 102. Section 714.23, Code 2011, is amended by adding 23 the following new subsection: 24 NEW SUBSECTION . 01. a. For the purposes of this section 25 and section 714.25, “postsecondary educational program” means 26 a series of postsecondary educational courses that lead to 27 a recognized educational credential such as an academic or 28 professional degree, diploma, or license. 29 b. For the purposes of this section, “school period” means 30 the course, term, payment period, postsecondary educational 31 program, or other period for which the school assessed tuition 32 charges to the student. A school that assesses tuition charges 33 to the student at the beginning of each course, term, payment 34 period, or other period that is shorter than the postsecondary 35 -67- LSB 5165XD (35) 84 kh/rj 67/ 80
S.F. _____ H.F. _____ educational program’s length shall base its tuition refund on 1 the amount of tuition costs the school charged for the course, 2 term, or other period in which the student terminated. A 3 school shall not base its tuition refund calculation on any 4 portion of a postsecondary educational program that remains 5 after a student terminates unless the student was charged for 6 that remaining portion of the postsecondary educational program 7 before the student’s termination. 8 Sec. 103. Section 714.23, subsections 1 through 5, Code 9 2011, are amended to read as follows: 10 1. A person offering a course of instruction at the 11 postsecondary level at least one postsecondary educational 12 program , for profit, that is more than four months in 13 length and leads to a degree, diploma, or license recognized 14 educational credential , shall make a pro rata refund of no less 15 than ninety percent of the tuition for a terminating student to 16 the appropriate agency based upon charges to an Iowa resident 17 student who terminates from any of the school’s postsecondary 18 educational programs in an amount that is not less than 19 ninety percent of the amount of tuition charged to the student 20 multiplied by the ratio of completed number of scheduled school 21 days to the number of calendar days remaining in the school 22 period until the date equivalent to the completion of sixty 23 percent of the scheduled school calendar days of in the school 24 term or course period to the total number of calendar days in 25 the school period until the date equivalent to the completion 26 of sixty percent of the calendar days in the school period . 27 2. Notwithstanding the provisions of subsection 1 , the 28 following tuition refund policy shall apply: 29 a. If a terminating student has completed sixty percent or 30 more of a school term or course that is more than four months in 31 length period , the person offering the course of instruction 32 postsecondary educational program is not required to refund 33 tuition for charges to the student. However, if, at any time, 34 a student terminates a school term or course that is more than 35 -68- LSB 5165XD (35) 84 kh/rj 68/ 80
S.F. _____ H.F. _____ four months in length postsecondary educational program due 1 to the student’s physical incapacity or , for a program that 2 requires classroom instruction, due to the transfer of the 3 student’s spouse’s employment to another city, the terminating 4 student shall receive a refund of tuition charges in an amount 5 which that equals the amount of tuition charged to the student 6 multiplied by the ratio of the remaining number of school 7 calendar days in the school period to the total school number 8 of calendar days of in the school term or course period . 9 b. A refund of ninety percent of the tuition for a 10 terminating student shall be paid to the appropriate agency 11 based upon the ratio of completed number of school days to 12 the total school days of the school term or course. A school 13 shall provide to a terminating student a refund of tuition 14 charges in an amount that is not less than ninety percent of 15 the amount of tuition charged to the student multiplied by the 16 ratio of the remaining number of calendar days in the school 17 period to the total number of calendar days in the school 18 period. This paragraph “b” applies to those persons offering 19 courses of instruction at the postsecondary level at least one 20 postsecondary educational program of more than four months in 21 length , for profit, whose cohort default rate for students 22 under the Stafford loan program as defined reported by the 23 United States department of education for the most recent 24 federal fiscal year is more than one hundred ten percent of the 25 national average cohort default rate of all schools for that 26 program for that period the same federal fiscal year or six 27 percent, whichever is higher. 28 3. If the financial obligations of a student are for three 29 or fewer months duration, this section does not apply. In the 30 case of a program in which student progress is measured only in 31 clock hours, all occurrences of “calendar days” in subsections 32 1 and 2 shall be replaced with “scheduled clock hours”. 33 4. Refunds A refund of tuition charges shall be paid 34 provided to the appropriate agency student within thirty 35 -69- LSB 5165XD (35) 84 kh/rj 69/ 80
S.F. _____ H.F. _____ forty-five days following the student’s termination date of the 1 school’s determination that a student has terminated from a 2 postsecondary educational program . 3 5. A student who terminates a course of instruction or 4 term postsecondary educational program shall not be charged 5 any fee or other monetary penalty for terminating a course of 6 instruction or term the postsecondary educational program, 7 other than a reduction in tuition refund as specified in this 8 section . 9 Sec. 104. NEW SECTION . 714.24 Additional requirements. 10 1. A required filing of evidence of financial 11 responsibility pursuant to section 714.18 must be completed at 12 least once every two years. 13 2. An entity that claims an exemption under section 714.19 14 or 714.22 must file an exemption claim with the department of 15 education. The department of education may approve or deny the 16 exemption claim. Except for a school that claims an exemption 17 under section 714.19, subsection 1, 3, or 10, a filing of a 18 claim for an exemption pursuant to section 714.19 or 714.22 19 must be completed at least once every two years. 20 3. An entity that claims an exemption under section 714.19 21 or 714.22 must file evidence of financial responsibility 22 pursuant to section 714.18 within sixty calendar days following 23 the date upon which conditions that qualify the entity for an 24 exemption under section 714.19 no longer exist. The department 25 of education may grant an entity a longer period to file 26 evidence of financial responsibility based on documentation 27 the entity provides to the department of education of its 28 substantial progress to comply with section 714.18, subsection 29 1, paragraph “a” . 30 4. An entity that is required to file evidence of financial 31 responsibility under section 714.18, or an entity that files 32 a claim of exemption under section 714.19 or 714.22, shall 33 utilize required forms approved and supplied by the department 34 of education. 35 -70- LSB 5165XD (35) 84 kh/rj 70/ 80
S.F. _____ H.F. _____ 5. The department of education may, at its discretion, 1 require a proprietary school that must comply with section 2 714.23 to submit its tuition refund policy to the department of 3 education for its review and approval. 4 6. The department of education and the attorney general may, 5 individually or jointly, adopt rules pursuant to chapter 17A 6 for the implementation of sections 714.18 through 714.25. 7 7. Except as provided in section 714.18, subsection 2, 8 paragraph “a” , the information submitted under sections 714.18, 9 714.22, 714.23, and 714.25 are public records under chapter 22. 10 Sec. 105. Section 714.25, Code 2011, is amended to read as 11 follows: 12 714.25 Disclosure. 13 1. For purposes of this chapter section , unless the 14 context otherwise requires, “proprietary school” means a person 15 offering a course of instruction at the postsecondary level 16 postsecondary educational program , for profit, that is more 17 than four months in length and leads to a degree, diploma, or 18 license recognized educational credential, such as an academic 19 or professional degree, diploma, or license . 20 2. A proprietary school shall, prior to the time a student 21 is obligated for payment of any moneys, inform the student, the 22 college student aid commission department of education , and in 23 the case of a school licensed under section 157.8 , the board 24 of cosmetology arts and sciences or in the case of a school 25 licensed under section 158.7 , the board of barbering, of all 26 of the following: 27 a. The total cost of the course of instruction postsecondary 28 educational program as charged by the proprietary school. 29 b. An estimate of any fees which may be charged the 30 student by others which would be required if the student is 31 to successfully complete the course postsecondary educational 32 program and , if applicable, obtain a degree, diploma, or 33 license recognized educational credential . 34 c. The percentage of students who successfully complete 35 -71- LSB 5165XD (35) 84 kh/rj 71/ 80
S.F. _____ H.F. _____ the course postsecondary educational program , the percentage 1 who terminate prior to completing the course postsecondary 2 educational program , and the period of time upon which the 3 proprietary school has based these percentages. The reporting 4 period shall not be less than one year in length and shall not 5 extend more than five years into the past. 6 d. If claims are made by the proprietary school as to 7 successful placement of students in jobs upon completion of the 8 course of study proprietary school’s postsecondary educational 9 programs , the proprietary school shall provide the student with 10 all of the following: 11 (1) The percentage of graduating students who were placed 12 in jobs in fields related to the course of instruction 13 postsecondary educational programs . 14 (2) The percentage of graduating students who went on to 15 further education immediately upon graduation. 16 (3) The percentage of students who, ninety days after 17 graduation, were without a job and had not gone on to further 18 education. 19 (4) The period of time upon which the reports required by 20 paragraphs “a” through “c” were based. The reporting period 21 shall not be less than one year in length and shall not extend 22 more than five years into the past. 23 e. If claims are made by the proprietary school as to income 24 levels of students who have graduated and are working in fields 25 related to the proprietary school’s course of instruction 26 postsecondary educational programs , the proprietary school 27 shall inform the student of the method used to derive such 28 information. 29 3. The requirements of subsection 2 shall not apply to 30 a proprietary school that is eligible for federal student 31 financial aid under Tit. IV of the federal Higher Education Act 32 of 1965, as amended. 33 DIVISION IV 34 MISCELLANEOUS PROVISIONS 35 -72- LSB 5165XD (35) 84 kh/rj 72/ 80
S.F. _____ H.F. _____ Sec. 106. REPEAL. Sections 261.9, 261.13 through 261.17A, 1 261.20, 261.22, 261.24, 261.25, 261.35 through 261.39, 261.41 2 through 261.43A, 261.44, 261.48, 261.54, 261.81A, 261.84, 3 261.92, 261.96, 261.97, 261.101 through 261.105, 261.121 4 through 261.127, and 714.22, Code and Code Supplement 2011, are 5 repealed. 6 Sec. 107. TRANSITION PROVISIONS. 7 1. Any scholarship, loan, or grant awarded under a 8 program administered by the college student aid commission in 9 accordance with chapter 261, Code and Code Supplement 2011, 10 prior to the effective date of this Act is valid and shall 11 continue as provided in the terms of the award. On or after the 12 effective date of this Act, such awards shall be administered 13 by the department of education. 14 2. Any rule, regulation, form, order, or directive 15 promulgated by the college student aid commission as required 16 to administer and enforce the provisions of chapters 261 and 17 261B, Code and Code Supplement 2011, shall continue in full 18 force and effect until amended, repealed, or supplemented by 19 affirmative action of the state board of education. 20 3. An administrative hearing or court proceeding arising 21 out of an enforcement action under chapters 261 and 261B, 22 pending on the effective date of this Act, shall not be 23 affected by this Act. Any cause of action or statute of 24 limitation relating to an action taken by the college student 25 aid commission shall not be affected by this Act and such 26 cause of action or statute of limitation shall apply to the 27 state board of education or the department of education, as 28 applicable. 29 4. a. All employees of the college student aid commission 30 shall be considered employees of the department of education on 31 the effective date of this Act without incurring any loss in 32 salary, benefits, or accrued years of service. 33 b. If an employee of the commission is an employee covered 34 under the collective bargaining provisions of chapter 20, that 35 -73- LSB 5165XD (35) 84 kh/rj 73/ 80
S.F. _____ H.F. _____ employee shall also be covered under chapter 20 upon becoming 1 employed by the department of education. 2 c. All employees of the commission becoming employed by 3 the department pursuant to this subsection shall be considered 4 employees for purposes of chapter 97B. 5 5. Any replacement of signs, logos, stationery, insignia, 6 uniforms, and related items that is made due to the effect of 7 this Act shall be done as part of the normal replacement cycle 8 for such items. 9 6. The college student aid commission shall assist the 10 department of education in implementing this Act by providing 11 for an effective transition of powers and duties from one 12 agency to another under chapters 256, 261, and 261B and 13 related administrative rules. To the extent requested by the 14 department of education, such assistance shall include but is 15 not limited to assisting in cooperating with federal agencies 16 such as the United States department of education. 17 7. Any moneys remaining in any account or fund under the 18 control of the college student aid commission on the effective 19 date of this Act and relating to the provisions of this Act 20 shall be transferred to a comparable fund or account under 21 the control of the department of education for such purposes. 22 Notwithstanding section 8.33, the moneys transferred in 23 accordance with this subsection shall not revert to the account 24 or fund from which appropriated or transferred. 25 8. Any registration or contract issued or entered into by 26 the college student aid commission relating to the provisions 27 of chapter 261 or 261B, Code and Code Supplement 2011, in 28 effect on the effective date of this Act shall continue in 29 full force and effect pending transfer of such registration or 30 contract to the department of education. 31 9. Federal funds utilized by the college student aid 32 commission prior to the effective date of this Act to employ 33 personnel necessary for the administration of the commission’s 34 programs shall be applied to and be available for the transfer 35 -74- LSB 5165XD (35) 84 kh/rj 74/ 80
S.F. _____ H.F. _____ of such personnel from the commission office to the department 1 of education. 2 Sec. 108. TRANSITIONAL PROVISION FOR COLLEGE STUDENT 3 AID COUNCIL —— MEMBERS’ TERMS ON THE COLLEGE STUDENT AID 4 COMMISSION. The initial organizational meeting of the college 5 student aid council established pursuant to section 261.8 shall 6 be convened by the director of the department of education. 7 The members serving on the college student aid commission on 8 the effective date of this Act shall serve as the initial 9 members of the college student aid council and shall fulfill 10 the duties of the college student aid council until the end of 11 the terms to which they were appointed under section 261.1, 12 Code and Code Supplement 2011, when members to the council 13 shall be appointed in accordance with section 261.8. 14 Sec. 109. CODE EDITOR AUTHORIZATION. The Code editor may 15 reorganize the sections and divisions of chapter 261 in a 16 manner other than that provided in this Act in order to enhance 17 the chapter’s readability. 18 Sec. 110. EFFECTIVE DATE. This Act takes effect January 1, 19 2013. 20 EXPLANATION 21 This bill strikes provisions relating to the creation of the 22 college student aid commission and transfers the duties and 23 responsibilities over Code chapter 261, administering student 24 financial aid programs, and Code chapter 261B, registering 25 postsecondary schools, to the state board of education and to 26 the department of education. The department is charged with 27 carrying out programs and policies as determined by the state 28 board. The bill establishes a college student aid council 29 to advise the state board. The bill increases the maximum 30 balance of the scholarship and grant reserve fund from 1 to 2 31 percent of the funds appropriated to the scholarship and grant 32 programs, and increases the maximum annual tuition grant award 33 from $4,000 to $6,000. The bill also includes transitional 34 provisions relating to the transfer of employees from the 35 -75- LSB 5165XD (35) 84 kh/rj 75/ 80
S.F. _____ H.F. _____ commission to the department, the validity of awards made 1 by the commission prior to the effective date of the bill, 2 cooperation with federal agencies, transfer of funds, and 3 enforcement actions. 4 DIVISION I —— TRANSFER OF COMMISSION DUTIES. The bill 5 authorizes the department to enter into any agreements with 6 the United States secretary of education or other federal 7 agency that are necessary to provide education programs and 8 services to current and future Iowa postsecondary students and 9 their counselors, parents and guardians, and to elementary, 10 secondary, and postsecondary institutions. The bill also 11 specifically authorizes the department to administer the 12 college access initiative and the gaining early awareness and 13 readiness for undergraduate programs authorized under federal 14 law. 15 The bill requires the department to develop and provide 16 information, materials, and services to eligible lenders, 17 postsecondary institutions, elementary and secondary schools, 18 students, parents, education loan borrowers, and the general 19 public; to develop and implement programs, initiatives and 20 services relating to postsecondary student aid outreach, 21 financial literacy education, career planning, student aid 22 program compliance assistance and training, program monitoring 23 and compliance review, default prevention, default aversion, 24 and defaulted federal student loan collection; and to conduct 25 college access initiative activities as required under federal 26 law. 27 The bill requires the department to expend property and 28 moneys belonging to the agency operating account to execute the 29 department’s powers and duties. 30 The bill establishes a college student aid council 31 consisting of 12 members. Membership on the new council 32 reflects the current membership on the college student aid 33 commission except that the council’s membership includes a 34 college president who represents for-profit colleges and 35 -76- LSB 5165XD (35) 84 kh/rj 76/ 80
S.F. _____ H.F. _____ universities in the state, it does not include a member who 1 represents a lending institution or a member who is repaying or 2 has repaid a student loan guaranteed by the commission, and it 3 has one less member to represent the general public. Except as 4 otherwise provided, members shall serve staggered terms of four 5 years beginning on May 1 of the year of appointment. 6 The council is tasked with assisting the state board with 7 substantial issues which are directly related to college 8 student financial aid and registration of postsecondary 9 schools. The state board shall refer all substantial issues 10 directly related to college student financial aid and 11 registration of postsecondary schools to the council. The 12 council shall formulate recommendations on each issue referred 13 to it by the state board and shall submit the recommendations 14 to the state board within any specified time periods. 15 The initial organizational meeting of the college student 16 aid council shall be called by the director of the department. 17 The members serving on the college student aid commission on 18 the effective date of the bill shall serve as the initial 19 members of the council and shall fulfill the duties of the 20 council until the end of the terms to which they were appointed 21 under Code section 261.1 (Code and Code Supplement 2011), when 22 members to the council shall be appointed in accordance with 23 Code section 261.8. 24 Under the bill, the barber and cosmetology schools must 25 submit an annual report to the department, as other accredited 26 private institutions are required to submit, relating to 27 institution and student data. 28 DIVISION II —— POSTSECONDARY REGISTRATION REQUIREMENTS. 29 The bill expands the definition of a postsecondary school 30 which maintains a presence in Iowa to include, with certain 31 exceptions, a location in the state at which a student 32 participates in any structured activity related to a school’s 33 distance education course of instruction, as well as any 34 address, location, telephone number, or internet protocol 35 -77- LSB 5165XD (35) 84 kh/rj 77/ 80
S.F. _____ H.F. _____ address in Iowa from which the school conducts any aspect of 1 its operations. 2 The bill requires postsecondary schools to renew 3 registration with the department every two years instead of 4 every four years. 5 The bill allows the department to grant a provisional 6 registration to a postsecondary school that is not accredited 7 by an agency or organization that is recognized by the United 8 States department of education. Such a school must report on 9 its progress toward seeking accreditation every six months. 10 Provisional registration may be renewed at the department’s 11 discretion. 12 The bill expands the information a postsecondary school 13 seeking to register must provide to the department. The 14 new requirements include the name, title, business address, 15 telephone number, and resume of an Iowa resident compensated 16 by the school to perform duties at a location in the state; 17 the school’s official Stafford loan cohort default rate as 18 calculated by the United States department of education for the 19 three most recent federal fiscal years; the average student 20 loan debt upon graduation of students completing programs at 21 the school; the graduation rate of undergraduate students as 22 reported to the United States department of education; and 23 evidence that the school meets the conditions of financial 24 responsibility established in Code chapter 714. 25 The bill makes changes to postsecondary schools exempt from 26 Code chapter 261B, including exemptions for schools at which 27 students are eligible for tuition grants under Code chapter 28 261; certain schools affiliated with health care systems; and 29 certain schools offering approved massage therapy curriculums. 30 The bill specifies that students attending schools which 31 must register with the department under Code chapter 261B 32 are ineligible for state student financial aid programs 33 established by Code chapter 261, and such schools may not offer 34 such financial aid or advertise that such financial aid is 35 -78- LSB 5165XD (35) 84 kh/rj 78/ 80
S.F. _____ H.F. _____ available. 1 The bill also makes changes to terminology and other 2 technical changes relating to the department’s registration 3 requirements under Code chapter 261B. 4 DIVISION III —— POSTSECONDARY REGISTRATION —— UNLAWFUL 5 ACTIVITY. The bill makes various changes relating to the 6 department’s oversight functions over the advertising, 7 financial responsibility, tuition refund, and disclosure 8 requirements and restrictions governing certain educational 9 programs and courses under Code chapter 714. 10 The bill amends Code section 714.19, relating to the 11 nonapplicability of Code sections 714.17 to 714.25, governing 12 business and financial practices of sellers of educational 13 courses, to provide that instructors for courses conducted 14 by professional, business, or farming organizations or 15 associations for the members and employees of members of such 16 entities who are not members or employees of members themselves 17 are ineligible for exemption from Code sections 714.17 to 18 714.25. The bill specifies accreditation standards for private 19 business schools exempt from Code sections 714.17 to 714.25. 20 The bill creates a new exemption from Code sections 714.17 21 to 714.25 for private, nonprofit schools eligible for state 22 student financial aid programs authorized under Code chapter 23 261. The bill repeals Code section 714.22, which exempts trade 24 and vocational schools from Code sections 714.17 to 714.25 if 25 certain conditions are met. 26 The bill amends Code section 714.23 to remove the exemption 27 for students with financial obligations of three or fewer 28 months’ duration from standards regarding tuition refund 29 policies. The bill provides for the inclusion of educational 30 programs in which student progress is measured only in clock 31 hours under standards regarding tuition refund policies. The 32 bill also provides that certain tuition refunds must be paid 33 directly to students. A violation of Code section 714.23 is a 34 simple misdemeanor, which is punishable by confinement for not 35 -79- LSB 5165XD (35) 84 kh/rj 79/ 80
S.F. _____ H.F. _____ more than 30 days or a fine of at least $65 but not more than 1 $625 or by both. 2 The bill amends Code section 714.25 to exempt from certain 3 disclosure requirements proprietary schools, as defined in the 4 bill, that are eligible for federal student financial aid under 5 Title IV of the Higher Education Act of 1965. 6 The bill provides that the department and the attorney 7 general may, individually or jointly, adopt rules pursuant 8 to Code chapter 17A to carry out the department’s oversight 9 functions under Code chapter 714. 10 The bill also makes changes to terminology, demonstration 11 of compliance, and exemptions relating to the department’s 12 oversight functions under Code chapter 714. 13 DIVISION IV —— MISCELLANEOUS PROVISIONS. The bill repeals 14 a number of Code sections that have not been funded in 15 recent years, including provisions relating to the Iowa hope 16 loan program, accelerated career education grants, the Iowa 17 guaranteed loan program, guaranteed loan payment program, 18 minority teacher loan payments, repayment of science and 19 mathematics loans, and the Iowa heritage corps. Because of 20 changes in federal law, the bill repeals provisions that 21 authorized the college student aid commission to initiate 22 action to deny, revoke, or suspend any license authorized by 23 state law, to any person who defaulted on an obligation owed 24 or collected by the commission. Provisions relating to the 25 minority academic grants for economic success are transferred 26 to new Code section 262.83, as the state board of regents 27 currently administers the program. 28 The bill includes a number of conforming amendments. 29 The bill takes effect January 1, 2013. 30 -80- LSB 5165XD (35) 84 kh/rj 80/ 80