S.F. 2124 Section 1. Section 261.2, subsection 11, paragraph a, Code 1 2014, is amended to read as follows: 2 a. The institutions are not required to register under 3 chapter 261B or the institutions are participating resident 4 institutions as defined in section 261G.2 that volunteer to 5 register under section 261B.11B . 6 Sec. 2. Section 261.2, Code 2014, is amended by adding the 7 following new subsection: 8 NEW SUBSECTION . 13. Enter into and administer, 9 or recognize, an interstate reciprocity agreement for 10 the provision of postsecondary distance education by a 11 postsecondary institution pursuant to chapter 261G. The 12 commission shall adopt rules establishing application 13 procedures and criteria for the authorization of postsecondary 14 institutions providing postsecondary distance education under 15 interstate reciprocity agreements pursuant to chapter 261G 16 and for the review and approval of interstate reciprocity 17 agreements the commission may enter into or recognize pursuant 18 to this subsection and chapter 261G. The commission may accept 19 an authorization granted by another state to a postsecondary 20 institution under an interstate reciprocity agreement to 21 deliver postsecondary distance education. 22 Sec. 3. Section 261B.8, subsection 3, Code 2014, is amended 23 to read as follows: 24 3. A postsecondary registration fund is created in the 25 state treasury under the control of the commission. Fees 26 collected under this section shall be deposited in the general 27 postsecondary registration fund of the state . Moneys in the 28 fund are appropriated to the commission and shall be used by 29 the commission to administer this chapter and chapter 261G. 30 Notwithstanding section 8.33, moneys in the fund shall not 31 revert to the general fund of the state at the end of a fiscal 32 year. Notwithstanding section 12C.7, interest or earnings on 33 moneys in the fund shall be credited to the fund. 34 Sec. 4. NEW SECTION . 261B.11B Voluntary registration. 35 -1- LSB 6005XS (7) 85 kh/sc 1/ 7

S.F. 2124 A school or other postsecondary educational institution 1 that is exempt under section 261B.11 may voluntarily register 2 under chapter 261B in order to comply with chapter 261G or 3 for purposes of institutional eligibility under 34 C.F.R. 4 §600.9(a). 5 Sec. 5. NEW SECTION . 261G.1 Purpose. 6 The purpose of this chapter is to authorize the college 7 student aid commission to enter into or recognize agreements 8 that will create interstate reciprocity in the regulation of 9 postsecondary distance education for the purpose of encouraging 10 cost savings for students and greater efficiencies and 11 effectiveness for institutions of higher education providing 12 distance education. 13 Sec. 6. NEW SECTION . 261G.2 Definitions. 14 1. “Commission” means the college student aid commission 15 created pursuant to section 261.1. 16 2. “Interstate reciprocity agreement” means an interstate 17 reciprocity agreement entered into and administered, or 18 recognized, by the commission in accordance with section 261.2, 19 subsection 13. 20 3. “Participating institution” means an institution that 21 meets the definition of subsection 4 or 5. 22 4. “Participating nonresident institution” means a 23 postsecondary institution without a physical presence in 24 Iowa that is offering instructional programs or courses in 25 Iowa leading to a degree, is a member in good standing in an 26 interstate reciprocity agreement, and is registered with and 27 regulated by a state agency or authority that is a member in 28 good standing in an interstate reciprocity agreement. 29 5. “Participating resident institution” means a 30 postsecondary institution located in Iowa that is a member in 31 good standing in an interstate reciprocity agreement and is 32 offering instructional programs or courses in Iowa leading 33 to a degree, including but not limited to the following 34 institutions: 35 -2- LSB 6005XS (7) 85 kh/sc 2/ 7

S.F. 2124 a. A community college as defined in section 260C.2. 1 b. An institution of higher learning governed by the state 2 board of regents. 3 c. An accredited private institution as defined in section 4 261.9. 5 d. A school or postsecondary educational institution that 6 voluntarily registers with the commission pursuant to section 7 261B.11B in order to comply with this chapter or for purposes 8 of institutional eligibility under 34 C.F.R. §600.9(a). 9 6. “Physical presence” means any of the following: 10 a. Establishing a physical location in Iowa for students to 11 receive synchronous or asynchronous instruction. 12 b. Requiring students to physically meet in a location in 13 Iowa for instructional purposes. 14 c. Establishing an administrative office in Iowa, for any of 15 the following purposes: 16 (1) Providing information to prospective students or the 17 general public about the institution, for enrolling students, 18 or for providing services to enrolled students. 19 (2) Providing office space to instructional or 20 noninstructional staff. 21 (3) Establishing an Iowa mailing address, street address, 22 or telephone number. 23 Sec. 7. NEW SECTION . 261G.3 Execution of duties. 24 The commission shall only enter into or recognize an 25 interstate reciprocity agreement if the agreement contains 26 sufficient consumer protection provisions and is otherwise in 27 the best interests of students enrolled in institutions of 28 higher education in this state. 29 Sec. 8. NEW SECTION . 261G.4 Effect of agreement. 30 1. Notwithstanding any other provision of law to the 31 contrary, a participating nonresident institution shall not be 32 required to register under chapter 261B or to comply with the 33 registration and disclosure requirements of chapter 261 or 261B 34 or sections 714.17, 714.18, 714.19, 714.20, 714.21, 714.21A, 35 -3- LSB 6005XS (7) 85 kh/sc 3/ 7

S.F. 2124 714.23, 714.24, or 714.25 if the provisions of an interstate 1 reciprocity agreement prohibit such registration or compliance. 2 2. Notwithstanding any other provision of law to the 3 contrary, a participating resident institution shall be 4 required to register under chapter 261B or to comply with the 5 registration and disclosure requirements of chapter 261 or 261B 6 or sections 714.17, 714.18, 714.19, 714.20, 714.21, 714.21A, 7 714.23, 714.24, or 714.25 if the provisions of the interstate 8 reciprocity agreement require such registration or compliance. 9 3. A participating institution offering instructional 10 programs or courses under an interstate reciprocity agreement 11 entered into or recognized by the commission must notify the 12 commission of any change of status relating in any way to the 13 interstate reciprocity agreement. 14 4. This chapter shall not be construed to prevent the 15 commission or the state from requiring a school or other 16 postsecondary educational institution to register under chapter 17 261B or from taking enforcement action against a participating 18 institution in any of the following circumstances: 19 a. A participating nonresident institution leaves or 20 otherwise ceases to be a member in good standing in an 21 interstate reciprocity agreement. 22 b. The participating institution is physically or 23 administratively housed in a state that does not join or ceases 24 to be a member in good standing in an interstate reciprocity 25 agreement entered into or recognized by the commission. 26 c. The discovery of acts or omissions subject to the 27 enforcement action but which occurred prior to the commission’s 28 entering into or recognizing an interstate reciprocity 29 agreement. 30 5. Students attending a participating nonresident 31 institution are ineligible for state student financial aid 32 programs established under chapter 261. 33 Sec. 9. NEW SECTION . 261G.5 Postsecondary registration 34 fees. 35 -4- LSB 6005XS (7) 85 kh/sc 4/ 7

S.F. 2124 1. The commission shall set by rule and collect a 1 nonrefundable initial registration fee and a renewal of 2 registration fee from each participating institution that 3 voluntarily registers with the commission pursuant to section 4 261B.11B in order to comply with this chapter or for purposes 5 of institutional eligibility under 34 C.F.R. §600.9(a). 6 2. Fees shall be set by rule not more than once each 7 year and shall be based upon the costs of administering this 8 chapter. 9 3. Fees collected under this section shall be deposited in a 10 separate account in the postsecondary registration fund created 11 pursuant to section 261B.8, subsection 3, and shall be used for 12 purposes of administering this chapter. 13 EXPLANATION 14 The inclusion of this explanation does not constitute agreement with 15 the explanation’s substance by the members of the general assembly. 16 This bill relates to the college student aid commission’s 17 duties and authority to register postsecondary schools and to 18 enter into and administer, or recognize, interstate reciprocity 19 agreements. The bill also provides for the collection and 20 appropriation of fees collected when schools and postsecondary 21 institutions register with the commission. 22 The bill creates new Code chapter 261G, and establishes that 23 the purpose of the Code chapter is to authorize the commission 24 to enter into or recognize agreements that will create 25 interstate reciprocity in the regulation of postsecondary 26 distance education for the purpose of encouraging cost savings 27 for students and greater efficiencies and effectiveness for 28 institutions of higher education providing distance education. 29 The commission shall only enter into or recognize an interstate 30 reciprocity agreement if the agreement contains sufficient 31 consumer protection provisions and is otherwise in the best 32 interest of students enrolled in institutions of higher 33 education in this state. 34 The bill permits the provisions of an interstate reciprocity 35 -5- LSB 6005XS (7) 85 kh/sc 5/ 7

S.F. 2124 agreement to override the registration provisions of Code 1 chapter 261B, the compliance requirements for registration and 2 disclosure under Code chapters 261 and 261B, and compliance 3 with Code sections 714.17 through 714.25, relating to unlawful 4 advertising and selling of educational courses, evidence of 5 financial responsibility, exemptions for certain educational 6 institutions, one lifetime contract per person limitation, 7 civil and criminal penalties, refund policies, and disclosure. 8 The bill provides that new Code chapter 261G shall not 9 prevent the commission or the state from requiring a school or 10 other postsecondary educational institution to register under 11 Code chapter 261B or from taking enforcement action against 12 a participating institution if a participating nonresident 13 institution leaves or otherwise ceases to be a member in 14 good standing in an interstate reciprocity agreement, the 15 postsecondary institution is physically or administratively 16 housed in a state that does not join or ceases to be a member 17 in good standing in an interstate reciprocity agreement, or 18 for acts or omissions subject to the enforcement action which 19 occurred prior to the commission entering into or recognizing 20 an interstate reciprocity agreement. 21 The bill provides that students attending a participating 22 nonresident institution are ineligible for state student 23 financial aid programs. 24 The bill amends Code section 261.2, which provides for 25 the commission’s duties, to direct the commission to enter 26 into and administer, or recognize, an interstate reciprocity 27 agreement for the provision of postsecondary distance education 28 by a postsecondary institution under new Code chapter 261G. 29 The commission must adopt rules establishing application 30 procedures and criteria for the authorization of postsecondary 31 institutions providing postsecondary distance education under 32 interstate reciprocity agreements and for the review and 33 approval of such agreements. The commission may accept an 34 authorization granted by another state to deliver postsecondary 35 -6- LSB 6005XS (7) 85 kh/sc 6/ 7

S.F. 2124 distance education under an interstate reciprocity agreement. 1 Currently, students receiving state-funded scholarships 2 and grants cannot use such scholarships and grants at schools 3 required to register under Code chapter 261B. The bill 4 provides that the limitation does not apply to a resident 5 postsecondary institution that is exempt from the registration 6 requirements of Code chapter 261B and is participating in an 7 interstate reciprocity agreement to provide postsecondary 8 distance education. However, the bill also provides that a 9 school or other postsecondary educational institution that is 10 exempt from registering under Code chapter 261B may voluntarily 11 register to comply with Code chapter 261G or for purposes of 12 institutional eligibility under the federal Higher Education 13 Act of 1965, as amended. 14 Under current law, registration fees collected under Code 15 chapter 261B are deposited in the general fund of the state. 16 The bill creates a postsecondary registration fund in the state 17 treasury under the control of the commission for fees collected 18 for postsecondary school registration required pursuant to Code 19 chapter 261B and for registration of schools and postsecondary 20 institutions that volunteer to register with the commission. 21 The fees are appropriated to the commission and must be 22 deposited into a separate account in the new fund and used for 23 the administration of the new Code chapter. 24 -7- LSB 6005XS (7) 85 kh/sc 7/ 7