House File 663 - Introduced HOUSE FILE 663 BY UPMEYER (COMPANION TO LSB 2669XS BY GRONSTAL) A BILL FOR An Act relating to interstate student tuition reciprocity 1 agreements involving certain postsecondary educational 2 institutions, creating a tuition refund fund, appropriating 3 moneys from the fund, and including effective date 4 provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 2669YH (5) 86 kh/rj

H.F. 663 Section 1. Section 261G.4, subsections 1 and 2, Code 2015, 1 are amended to read as follows: 2 1. Notwithstanding any other provision of law to the 3 contrary, a participating nonresident institution shall not 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 section 714.17, subsections 2 and 3 , or sections 714.18 , 7 714.20 , and 714.21 , and 714.23, or section 714.24, subsections 8 1, 2, 3, 4, and 5 , or section 714.25, if the provisions of an 9 interstate reciprocity agreement prohibit such registration or 10 compliance. 11 2. Notwithstanding any other provision of law to the 12 contrary, a participating resident institution shall be 13 required to register under chapter 261B or to comply with the 14 registration and disclosure requirements of chapter 261 or 261B 15 or section 714.17, subsections 2 and 3 , or sections 714.18 , 16 714.20 , and 714.21 , 714.23, or section 714.24, subsections 1, 17 2, 3, 4, and 5 , or section 714.25, if the provisions of the 18 interstate reciprocity agreement require such registration or 19 compliance. 20 Sec. 2. Section 714.23, Code 2015, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 4A. a. A student who does not receive a 23 tuition refund up to the full refund of tuition charges due to 24 the effect of an interstate reciprocity agreement under 261G.4, 25 subsection 1, may apply to the attorney general for a refund 26 in a sum that represents the difference between any tuition 27 refund received from the school and the full refund of tuition 28 charges. For purposes of this subsection, “full refund of 29 tuition charges” means the monetary sum of the refund for which 30 the student would be eligible pursuant to the application of 31 this section. 32 b. A tuition refund fund is created as a separate fund 33 in the office of the treasurer of state under the control 34 of the attorney general. Moneys credited to the fund shall 35 -1- LSB 2669YH (5) 86 kh/rj 1/ 3

H.F. 663 include amounts appropriated by the general assembly and moneys 1 received as a result of a court order, judgment, or settlement 2 which specifically directs that moneys be used for the purpose 3 of providing student tuition refunds, or which authorizes the 4 attorney general to use moneys for any other purpose at the 5 discretion of the attorney general. All moneys credited to 6 the fund are appropriated and made available to the attorney 7 general for such purposes. For each fiscal year, the attorney 8 general may expend all moneys in the fund to provide tuition 9 refunds to eligible students. Notwithstanding section 8.33, 10 any balance in the fund on June 30 of each fiscal year shall not 11 revert to the general fund of the state, but shall be available 12 for purposes of this subsection in subsequent fiscal years. 13 Notwithstanding section 12C.7, interest or earnings on the 14 moneys in the fund shall be credited to the fund. 15 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 16 immediate importance, takes effect upon enactment. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 This bill allows the provisions of an interstate student 21 tuition reciprocity agreement entered into and administered, or 22 recognized, by the college student aid commission to override 23 the registration and disclosure provisions of Code sections 24 714.23, which regulates postsecondary educational program 25 refund policies, and 714.25, which establishes disclosure 26 requirements for proprietary schools, as those sections apply 27 to participating postsecondary educational institutions. The 28 bill also creates within the state treasury a tuition refund 29 fund under the control of the attorney general. 30 The bill amends Code section 714.23 to provide that a 31 student who, because of the effect of an interstate reciprocity 32 agreement, does not receive the full tuition refund as would 33 otherwise be required under the Code provision, may apply to 34 the attorney general for a refund in a sum that represents the 35 -2- LSB 2669YH (5) 86 kh/rj 2/ 3

H.F. 663 difference between any tuition refund received from the school 1 and the full refund of tuition charges as otherwise required. 2 Moneys credited to the fund shall include amounts 3 appropriated by the general assembly and moneys received as 4 a result of a court order, judgment, or settlement which 5 specifically directs that moneys be used for the purpose of 6 providing student tuition refunds or which authorizes the 7 attorney general to use moneys for any other purpose at the 8 discretion of the attorney general. 9 All moneys credited to the tuition refund fund are 10 appropriated and made available to the attorney general for 11 such purposes. Moneys in the fund do not revert to the general 12 fund of the state but remain available for tuition refund 13 purposes in subsequent fiscal years. Notwithstanding Code 14 section 12C.7, interest or earnings on the moneys in the fund 15 shall be credited to the fund. 16 The bill takes effect upon enactment. 17 -3- LSB 2669YH (5) 86 kh/rj 3/ 3