HF 663 (LSB 2669YH (5) 86)

HOUSE FILE 663

BY  UPMEYER

(COMPANION TO LSB 2669XS BY GRONSTAL)

A BILL FOR

An Act relating to interstate student tuition reciprocity agreements involving certain postsecondary educational institutions, creating a tuition refund fund, appropriating moneys from the fund, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 261G.4, subsections 1 and 2, Code 2015, are amended to read as follows:
   1.  Notwithstanding any other provision of law to the contrary, a participating nonresident institution shall not be required to register under chapter 261B or to comply with the registration and disclosure requirements of chapter 261 or 261B or section 714.17, subsections 2 and 3, or sections 714.18, 714.20, and 714.21, and 714.23, or section 714.24, subsections 1, 2, 3, 4, and 5, or section 714.25, if the provisions of an interstate reciprocity agreement prohibit such registration or compliance.
   2.  Notwithstanding any other provision of law to the contrary, a participating resident institution shall be required to register under chapter 261B or to comply with the registration and disclosure requirements of chapter 261 or 261B or section 714.17, subsections 2 and 3, or sections 714.18, 714.20, and 714.21, 714.23, or section 714.24, subsections 1, 2, 3, 4, and 5, or section 714.25, if the provisions of the interstate reciprocity agreement require such registration or compliance.
    Sec. 2.  Section 714.23, Code 2015, is amended by adding the following new subsection:
   NEW SUBSECTION.  4A.  a.  A student who does not receive a tuition refund up to the full refund of tuition charges due to the effect of an interstate reciprocity agreement under 261G.4, subsection 1, may apply to the attorney general for a refund in a sum that represents the difference between any tuition refund received from the school and the full refund of tuition charges. For purposes of this subsection, “full refund of tuition charges” means the monetary sum of the refund for which the student would be eligible pursuant to the application of this section.
   b.  A tuition refund fund is created as a separate fund in the office of the treasurer of state under the control of the attorney general. Moneys credited to the fund shall include amounts appropriated by the general assembly and moneys received as a result of a court order, judgment, or settlement which specifically directs that moneys be used for the purpose of providing student tuition refunds, or which authorizes the attorney general to use moneys for any other purpose at the discretion of the attorney general. All moneys credited to the fund are appropriated and made available to the attorney general for such purposes. For each fiscal year, the attorney general may expend all moneys in the fund to provide tuition refunds to eligible students. Notwithstanding section 8.33, any balance in the fund on June 30 of each fiscal year shall not revert to the general fund of the state, but shall be available for purposes of this subsection in subsequent fiscal years. Notwithstanding section 12C.7, interest or earnings on the moneys in the fund shall be credited to the fund.
    Sec. 3.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill allows the provisions of an interstate student tuition reciprocity agreement entered into and administered, or recognized, by the college student aid commission to override the registration and disclosure provisions of Code sections 714.23, which regulates postsecondary educational program refund policies, and 714.25, which establishes disclosure requirements for proprietary schools, as those sections apply to participating postsecondary educational institutions. The bill also creates within the state treasury a tuition refund fund under the control of the attorney general.
   The bill amends Code section 714.23 to provide that a student who, because of the effect of an interstate reciprocity agreement, does not receive the full tuition refund as would otherwise be required under the Code provision, may apply to the attorney general for a refund in a sum that represents the difference between any tuition refund received from the school and the full refund of tuition charges as otherwise required.
   Moneys credited to the fund shall include amounts appropriated by the general assembly and moneys received as a result of a court order, judgment, or settlement which specifically directs that moneys be used for the purpose of providing student tuition refunds or which authorizes the attorney general to use moneys for any other purpose at the discretion of the attorney general.
   All moneys credited to the tuition refund fund are appropriated and made available to the attorney general for such purposes. Moneys in the fund do not revert to the general fund of the state but remain available for tuition refund purposes in subsequent fiscal years. Notwithstanding Code section 12C.7, interest or earnings on the moneys in the fund shall be credited to the fund.
   The bill takes effect upon enactment.