S.F. 432 Section 1. Section 261.2, Code 2015, is amended to read as 1 follows: 2 261.2 Duties of commission. 3 The commission shall: 4 1. Prepare and administer a state plan for a state 5 supported and administered scholarship program. The state 6 plan shall provide for scholarships to deserving students of 7 Iowa, matriculating in Iowa universities, colleges, community 8 colleges, or schools of professional nursing. Eligibility of 9 a student for receipt of a scholarship shall be based upon 10 academic achievement and completion of advanced level courses 11 prescribed by the commission. Provide, in accordance with 12 this chapter, scholarships and grants to eligible residents of 13 the state who are attending Iowa’s postsecondary institutions, 14 and loan repayment for eligible recipients who are employed in 15 Iowa’s workforce. 16 2. Administer the tuition grant program all programs 17 authorized under this chapter ; administer the Iowa state 18 fair scholarship fund established in section 261.62; expend 19 moneys appropriated in section 261.25; and carry out licensing 20 sanctions in accordance with division XV of this chapter . 21 3. Ensure that students receiving state-funded scholarships 22 and grants are attending institutions of higher education that 23 meet both of the following conditions: 24 a. The institutions are located in Iowa and are not 25 required to register under chapter 261B, or the institutions 26 are participating resident institutions as defined in section 27 261G.2 that volunteer to register under section 261B.11B. 28 b. The institutions are eligible to participate in a federal 29 student aid program authorized under Tit. IV of the federal 30 Higher Education Act of 1965, as amended. 31 4. Ensure that recipients of loan repayment programs 32 attended institutions of higher education that were in 33 compliance with chapter 261B and were eligible to participate 34 in a federal student aid program authorized under Tit. IV of 35 -1- LSB 1124SV (3) 86 kh/rj 1/ 7

S.F. 432 the federal Higher Education Act of 1965, as amended, at the 1 time the recipients were enrolled in the institutions. 2 5. Enter into all necessary agreements with the United 3 States secretary of education as required for the purpose of 4 receiving full benefit of the state program incentives offered 5 pursuant to the federal Higher Education Act of 1965, as 6 amended. 7 6. Enter into all necessary agreements with other public 8 or private persons or entities to increase access to education 9 programs that the commission determines meet the postsecondary 10 education needs of Iowa residents, except that no such 11 agreement shall obligate state funds not appropriated by the 12 general assembly for such purpose. In accordance with those 13 agreements, the commission may accept appropriations, gifts, 14 grants, or other aid from those public or private persons or 15 entities, and may establish one or more funds in the state 16 treasury under the control of the commission. Notwithstanding 17 section 12C.7, interest or earnings on moneys in the fund shall 18 be credited to the fund. 19 3. 7. Develop and implement, in cooperation with the state 20 board of regents, the treasurer of state, and other interested 21 constituencies, an educational program and marketing strategies 22 designed to inform parents about the options available for 23 financing a college education and the need to accumulate the 24 financial resources necessary to pay for a college education. 25 The educational program shall include but not be limited to 26 distribution of informational material to public and nonpublic 27 elementary schools for distribution to parents and guardians of 28 five-year and six-year old children. 29 4. 8. Approve transfers from the scholarship and tuition 30 grant reserve fund under section 261.20 . 31 5. 9. Develop and implement, in cooperation with the 32 judicial district departments of correctional services and 33 the department of corrections, a program to assist criminal 34 offenders in applying for federal and state aid available for 35 -2- LSB 1124SV (3) 86 kh/rj 2/ 7

S.F. 432 higher education. 1 6. 10. Develop and implement, in cooperation with the 2 department of human services and the judicial branch, a program 3 to assist juveniles who are sixteen years of age or older and 4 who have a case permanency plan under chapter 232 or 237 or are 5 otherwise under the jurisdiction of chapter 232 in applying 6 for federal and state aid available for higher education. 7 The commission shall also develop and implement the all Iowa 8 opportunity foster care grant program in accordance with 9 section 261.6 . 10 7. 11. a. Adopt rules to establish reasonable registration 11 standards for the approval, pursuant to section 261B.3A , of 12 postsecondary schools that are required to register with the 13 commission in order to operate in this state. The registration 14 standards established by the commission shall ensure that all 15 of the following conditions are satisfied: 16 (1) The courses, curriculum, and instruction offered by 17 the postsecondary school are of such quality and content as 18 may reasonably and adequately ensure achievement of the stated 19 objective for which the courses, curriculum, or instruction are 20 offered. 21 (2) The postsecondary school has adequate space, equipment, 22 instructional material, and personnel to provide education and 23 training of good quality. 24 (3) The educational and experience qualifications of 25 the postsecondary school’s directors, administrators, and 26 instructors are such as may reasonably ensure that students 27 will receive instruction consistent with the objectives of the 28 postsecondary school’s programs of study. 29 (4) Upon completion of training or instruction, students 30 are given certificates, diplomas, or degrees as appropriate by 31 the postsecondary school indicating satisfactory completion of 32 the program. 33 (5) The postsecondary school is financially responsible and 34 capable of fulfilling commitments for instruction. 35 -3- LSB 1124SV (3) 86 kh/rj 3/ 7

S.F. 432 b. The commission shall post an application on the 1 commission’s internet site and shall render a decision on an 2 application for registration within one hundred eighty days of 3 the filing of the application. 4 8. 12. 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 assistance from the 7 programs authorized under this chapter in the previous fiscal 8 year, the amount paid to those individuals under sections 9 261.73 , 261.112 , and 261.116 , and the institutions from which 10 those individuals graduated attended , and that which includes 11 any proposed statutory changes and the commission’s findings 12 and recommendations. 13 9. 13. Require any postsecondary institution whose 14 students are eligible for or who receive assistance under 15 programs administered by the commission and who were enrolled 16 in a school district in Iowa to include in its student 17 management information system the unique student identifiers 18 assigned to the institution’s students while the students were 19 in the state’s kindergarten through grade twelve system. 20 10. Ensure that students receiving state-funded 21 scholarships and grants are attending institutions of higher 22 education that meet all of the following conditions: 23 a. The institutions are not required to register under 24 chapter 261B or the institutions are participating resident 25 institutions as defined in section 261G.2 that volunteer to 26 register under section 261B.11B . 27 b. The institutions are eligible to participate in a federal 28 student aid program authorized under Tit. IV of the federal 29 Higher Education Act of 1965 , as amended. 30 11. 14. Require any postsecondary institution whose 31 students are eligible for or who receive financial assistance 32 under programs administered by the commission to transmit 33 annually to the commission information about the numbers of 34 minority students enrolled in and minority faculty members 35 -4- LSB 1124SV (3) 86 kh/rj 4/ 7

S.F. 432 employed at the institution. The commission shall compile 1 and report the information collected to the general assembly, 2 the governor, and the legislative services agency by March 1 3 annually. 4 12. 15. Enter into and administer, or recognize, an 5 interstate reciprocity agreement for the provision of 6 postsecondary distance education by a postsecondary institution 7 pursuant to chapter 261G . The commission shall adopt 8 rules establishing application procedures and criteria for 9 the authorization of postsecondary institutions providing 10 postsecondary distance education under interstate reciprocity 11 agreements pursuant to chapter 261G and for the review and 12 approval of interstate reciprocity agreements the commission 13 may enter into or recognize pursuant to this subsection and 14 chapter 261G . The commission may accept an authorization 15 granted by another state to a postsecondary institution under 16 an interstate reciprocity agreement to deliver postsecondary 17 distance education. 18 Sec. 2. Section 261.87, subsection 3, paragraph b, Code 19 2015, is amended to read as follows: 20 b. A qualified student at a four-year eligible institution 21 may receive scholarships for not more than the equivalent 22 of two full-time semesters of undergraduate study, or the 23 trimester or quarter equivalent. The qualified student may 24 elect to receive one-half of the total scholarship amount 25 awarded under this section in the first year and the second 26 half in the second year. 27 Sec. 3. Section 261.114, subsection 11, paragraph b, Code 28 2015, is amended to read as follows: 29 b. “Eligible university” means a college or university that 30 meets the requirements of section 261.2, subsection 10 3 , and 31 is an institution of higher learning under the control of the 32 state board of regents or an accredited private institution as 33 defined in section 261.9 . 34 Sec. 4. Section 261G.2, subsection 2, Code 2015, is amended 35 -5- LSB 1124SV (3) 86 kh/rj 5/ 7

S.F. 432 to read as follows: 1 2. “Interstate reciprocity agreement” means an interstate 2 reciprocity agreement entered into and administered, or 3 recognized, by the commission in accordance with section 261.2, 4 subsection 12 15 . 5 EXPLANATION 6 The inclusion of this explanation does not constitute agreement with 7 the explanation’s substance by the members of the general assembly. 8 This bill amends the current duties of the college student 9 aid commission, under Code section 261.2, by eliminating 10 provisions requiring the commission to prepare and administer 11 a state plan for a scholarship program, by consolidating 12 certain authorizations and responsibilities, by authorizing the 13 commission to seek and administer higher education assistance 14 programs under agreements with public and private entities, 15 by striking redundancies relating to administration of the 16 tuition grant and the all Iowa opportunity foster care grant 17 programs, and by moving a provision within the Code section in 18 order to improve the organization of the Code section, though 19 the provision is also amended to require the commission to 20 ensure that individuals benefiting from loan repayment attended 21 postsecondary institutions that were eligible for federal 22 student assistance and were in compliance with Code chapter 23 261B. The bill also makes conforming changes. 24 The commission is currently required to prepare and 25 administer a state plan for a scholarship program for 26 deserving Iowa students matriculating in Iowa’s postsecondary 27 institutions. The bill strikes the requirement for the 28 state plan, though the Code sections establishing commission 29 requirements relating to the Iowa state fair scholarship and 30 the all Iowa opportunity scholarship program remain intact. 31 Commission responsibilities that are provided for in 32 other Code sections within the Code chapter, including 33 responsibilities to administer the Iowa state fair scholarship, 34 to distribute tuition grant funds appropriated by the general 35 -6- LSB 1124SV (3) 86 kh/rj 6/ 7

S.F. 432 assembly, and to carry out licensing sanctions as appropriate, 1 are added under the bill to Code section 261.2. The bill 2 also allows a qualified student at a four-year eligible 3 postsecondary institution to elect to receive the two semesters 4 of the all Iowa opportunity scholarship over a two-year period. 5 The bill does not increase the amount awarded to a student 6 under the program. 7 The bill adds the treasurer of state and other 8 constituencies to the entities with whom the commission must 9 cooperate in developing and implementing an educational program 10 and marketing strategies designed to inform parents about 11 college education financing options. 12 Currently, the commission must submit an annual report 13 to the general assembly relating to loan forgiveness 14 amounts issued, the recipients of loan forgiveness, and the 15 institutions attended by the recipients. The bill expands the 16 requirement beyond loan forgiveness to require that the report 17 include information relating to all assistance authorized under 18 the Code chapter. 19 The bill authorizes the commission to seek and administer 20 higher education assistance programs under agreements with 21 public and private entities; to accept appropriations, gifts, 22 grants, or other aid from those public or private persons or 23 entities; and to establish one or more funds in the state 24 treasury under the control of the commission. Moneys in such a 25 fund earned as income, including interest, are to be credited 26 to the fund. 27 -7- LSB 1124SV (3) 86 kh/rj 7/ 7