House File 2322 - Introduced HOUSE FILE 2322 BY JONES and WHEELER A BILL FOR An Act relating to the elimination of the college student 1 aid commission and transferring the commission’s duties 2 and responsibilities to the office of the treasurer of 3 state, eliminating obsolete or unfunded programs, making 4 appropriations, and providing for related matters, and 5 including effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 5745YH (7) 87 kh/jh
H.F. 2322 DIVISION I 1 TRANSFER OF COMMISSION DUTIES 2 Section 1. Section 7A.4, subsection 4, Code 2018, is amended 3 by striking the subsection. 4 Sec. 2. Section 7E.7, subsection 1, Code 2018, is amended 5 to read as follows: 6 1. The Iowa higher education loan authority shall be 7 attached to the college student aid commission office of the 8 treasurer of state . 9 Sec. 3. Section 8A.504, subsections 3 and 4, Code 2018, are 10 amended to read as follows: 11 3. In the case of multiple claims to payments filed under 12 this section , priority shall be given to claims filed by the 13 child support recovery unit or the foster care recovery unit, 14 next priority shall be given to claims filed by the clerk of 15 the district court, next priority shall be given to claims 16 filed under chapter 261 by the college student aid commission 17 office of the treasurer of state , next priority shall be 18 given to claims filed by the investigations division of the 19 department of inspections and appeals, and last priority shall 20 be given to claims filed by other public agencies. In the 21 case of multiple claims in which the priority is not otherwise 22 provided by this subsection , priority shall be determined in 23 accordance with rules to be established by the director. 24 4. The director shall have the authority to enter into 25 reciprocal agreements with the departments of revenue of other 26 states that have enacted legislation that is substantially 27 equivalent to the setoff procedure provided in this section 28 for the recovery of an amount due because of a default on a 29 loan under chapter 261 . A reciprocal agreement shall also 30 be approved by the college student aid commission office of 31 the treasurer of state . The agreement shall authorize the 32 department to provide by rule for the setoff of state income 33 tax refunds or rebates of defaulters from states with which 34 Iowa has a reciprocal agreement and to provide for sending 35 -1- LSB 5745YH (7) 87 kh/jh 1/ 59
H.F. 2322 lists of names of Iowa defaulters to the states with which Iowa 1 has a reciprocal agreement for setoff of that state’s income 2 tax refunds. 3 Sec. 4. NEW SECTION . 12.11 Postsecondary financial 4 assistance for students —— registration of postsecondary schools 5 —— rules. 6 The treasurer shall adopt rules in accordance with chapter 7 17A for the administration of postsecondary state financial 8 assistance programs under chapter 261 and the registration of 9 postsecondary schools under chapter 261B. 10 Sec. 5. Section 15F.401, subsection 1, paragraph c, Code 11 2018, is amended to read as follows: 12 c. The authority, by rule, shall define “accredited colleges 13 and universities” , in consultation with the college student aid 14 commission office of the treasurer of state . 15 Sec. 6. Section 35A.13, subsection 7, paragraph c, 16 subparagraph (2), Code 2018, is amended to read as follows: 17 (2) A child eligible to receive state educational 18 assistance under this paragraph “c” shall begin postsecondary 19 education prior to reaching age twenty-six, shall not receive 20 more than an amount equal to five times the highest resident 21 undergraduate tuition rate established per year for an 22 institution of higher learning under the control of the state 23 board of regents during the child’s lifetime, and shall, to 24 remain eligible for assistance, meet the academic progress 25 standards of the postsecondary educational institution. 26 Payments for state educational assistance for a child under 27 this paragraph “c” shall be made to the applicable postsecondary 28 educational institution. The college student aid commission 29 office of the treasurer of state may, if requested, assist the 30 commission in administering this paragraph “c” . 31 Sec. 7. Section 84A.6, subsection 4, Code 2018, is amended 32 to read as follows: 33 4. The department of workforce development, in consultation 34 with the college student aid commission office of the treasurer 35 -2- LSB 5745YH (7) 87 kh/jh 2/ 59
H.F. 2322 of state , shall issue a quarterly report identifying industries 1 in which the department finds a shortage of skilled workers in 2 this state for the purposes of the skilled workforce shortage 3 tuition grant program established in section 261.130 . 4 Sec. 8. Section 135.107, subsection 3, unnumbered paragraph 5 1, Code 2018, is amended to read as follows: 6 The center for rural health and primary care shall establish 7 a primary care provider recruitment and retention endeavor, to 8 be known as PRIMECARRE. The endeavor shall include a health 9 care workforce and community support grant program and a 10 primary care provider loan repayment program. The endeavor 11 shall be developed and implemented in a manner to promote 12 and accommodate local creativity in efforts to recruit and 13 retain health care professionals to provide services in the 14 locality. The focus of the endeavor shall be to promote 15 and assist local efforts in developing health care provider 16 recruitment and retention programs. The center for rural 17 health and primary care may enter into an agreement with the 18 college student aid commission office of the treasurer of state 19 for the administration of the center’s grant and loan repayment 20 programs. 21 Sec. 9. Section 232.2, subsection 4, paragraph f, 22 subparagraph (5), Code 2018, is amended to read as follows: 23 (5) If the child is interested in pursuing higher education, 24 the transition plan shall provide for the child’s participation 25 in the college student aid commission’s office of the treasurer 26 of state’s program of assistance in applying for federal and 27 state aid under section 261.2 . 28 Sec. 10. Section 256.7, unnumbered paragraph 1, Code 2018, 29 is amended to read as follows: 30 Except for the college student aid commission, the 31 commission of libraries and division of library services , and 32 the public broadcasting board and division, the state board 33 shall: 34 Sec. 11. Section 256.9, unnumbered paragraph 1, Code 2018, 35 -3- LSB 5745YH (7) 87 kh/jh 3/ 59
H.F. 2322 is amended to read as follows: 1 Except for the college student aid commission, the 2 commission of libraries and division of library services , and 3 the public broadcasting board and division, the director shall: 4 Sec. 12. Section 261.2, Code 2018, is amended to read as 5 follows: 6 261.2 Duties of commission treasurer of state . 7 The commission treasurer of state shall do all of the 8 following : 9 1. a. Prepare and administer a state plan for a state 10 supported state-supported and administered state-administered 11 scholarship program and grant programs . The state plan shall 12 provide for scholarships and grants to deserving students of 13 Iowa, matriculating in Iowa universities, colleges, community 14 colleges, or schools of professional nursing. Eligibility of 15 a student for receipt of a scholarship shall be based upon 16 academic achievement and completion of advanced level courses 17 prescribed by the commission. 18 b. Approve and award scholarships and grants under the state 19 plan. 20 2. Administer the tuition grant program under this chapter 21 Provide application forms and parents’ confidential statement 22 forms as necessary for programs administered under this 23 chapter . 24 3. Develop and implement, in cooperation with the state 25 board of regents, an educational program and marketing 26 strategies designed to inform students and parents about the 27 options available for financing a college education and the 28 need to accumulate the financial resources necessary to pay for 29 a college education. The educational program shall include 30 but not be limited to distribution of informational material 31 to public and nonpublic elementary schools for distribution 32 to parents and guardians of five-year and six-year old 33 six-year-old children. 34 4. Approve Administer and approve transfers from the 35 -4- LSB 5745YH (7) 87 kh/jh 4/ 59
H.F. 2322 scholarship and tuition grant reserve fund under section 261.20 1 261.4 . 2 5. Develop and implement, in cooperation with the 3 judicial district departments of correctional services and 4 the department of corrections, a program to assist criminal 5 offenders in applying for federal and state aid available for 6 higher education. 7 6. Develop and implement, in cooperation with the 8 department of human services and the judicial branch, a program 9 to assist juveniles who are sixteen years of age or older and 10 who have a case permanency plan under chapter 232 or 237 or are 11 otherwise under the jurisdiction of chapter 232 in applying for 12 federal and state aid available for higher education. 13 7. a. Adopt rules to establish reasonable registration 14 standards for the approval, pursuant to section 261B.3A , of 15 postsecondary schools that are required to register with 16 the commission treasurer of state in order to operate in 17 this state. The registration standards established by the 18 commission treasurer of state shall ensure that all of the 19 following conditions are satisfied: 20 (1) The courses, curriculum, and instruction offered by 21 the postsecondary school are of such quality and content as 22 may reasonably and adequately ensure achievement of the stated 23 objective for which the courses, curriculum, or instruction are 24 offered. 25 (2) The postsecondary school has adequate space, equipment, 26 instructional material, and personnel to provide education and 27 training of good quality. 28 (3) The educational and experience qualifications of 29 the postsecondary school’s directors, administrators, and 30 instructors are such as may reasonably ensure that students 31 will receive instruction consistent with the objectives of the 32 postsecondary school’s programs of study. 33 (4) Upon completion of training or instruction, students 34 are given certificates, diplomas, or degrees as appropriate by 35 -5- LSB 5745YH (7) 87 kh/jh 5/ 59
H.F. 2322 the postsecondary school indicating satisfactory completion of 1 the program. 2 (5) The postsecondary school is financially responsible and 3 capable of fulfilling commitments for instruction. 4 b. The commission shall post Post an application for 5 registration as a school operating as a postsecondary 6 educational institution or providing postsecondary 7 instructional programs on the commission’s treasurer of state’s 8 internet site and shall render a decision on an application for 9 registration within one hundred eighty days of the filing of 10 the application. 11 8. Submit by January 15 annually a report to the governor 12 and the general assembly which that provides information on 13 the activities of the office of the treasurer in administering 14 this chapter, including , by program, the number of individuals 15 who received scholarships, grants, and loan forgiveness or 16 loan repayment in the previous fiscal year, the amounts paid 17 to or on behalf of individuals under sections 261.73 , 261.112 , 18 and 261.116 the programs , and the institutions from which the 19 individuals graduated , and that includes any proposed statutory 20 changes and the commission’s treasurer of state’s findings and 21 recommendations. 22 9. Require any postsecondary institution whose students 23 are eligible for or who receive assistance under programs 24 administered by the commission treasurer of state under this 25 chapter and who were enrolled in a school district in Iowa to 26 include in its student management information system the unique 27 student identifiers assigned to the institution’s students 28 while the students were in the state’s kindergarten through 29 grade twelve system. 30 10. Ensure that students receiving state-funded 31 scholarships and grants are attending institutions of higher 32 education that meet all of the following conditions: 33 a. The institutions are not required to register under 34 chapter 261B or the institutions are participating resident 35 -6- LSB 5745YH (7) 87 kh/jh 6/ 59
H.F. 2322 institutions as defined in section 261G.2 that volunteer to 1 register under section 261B.11B . 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 11. Require any postsecondary institution whose students 6 are eligible for or who receive financial assistance under 7 programs administered by the commission treasurer of state 8 under this chapter to transmit annually to the commission 9 treasurer of state information about the numbers of minority 10 students enrolled in and minority faculty members employed 11 at the institution. The commission treasurer of state shall 12 compile and report the information collected to the general 13 assembly, the governor, and the legislative services agency by 14 March 1 annually. 15 12. Enter into and administer, or recognize, an interstate 16 reciprocity agreement for the provision of postsecondary 17 distance education by a postsecondary institution pursuant 18 to chapter 261G . The commission In accordance with section 19 12.11, the treasurer of state shall adopt rules pursuant to 20 chapter 17A establishing application procedures and criteria 21 for the authorization of postsecondary institutions providing 22 postsecondary distance education under interstate reciprocity 23 agreements pursuant to chapter 261G and for the review and 24 approval of interstate reciprocity agreements the commission 25 treasurer of state may enter into or recognize pursuant to 26 this subsection and chapter 261G . The commission treasurer of 27 state may accept an authorization granted by another state to 28 a postsecondary institution under an interstate reciprocity 29 agreement to deliver postsecondary distance education. 30 13. Enter into any agreements with the United States 31 secretary of education or other federal agency as are necessary 32 to provide programs and services administered pursuant to this 33 chapter to current and future Iowa postsecondary students, to 34 the students’ school counselors, parents, and guardians, and 35 -7- LSB 5745YH (7) 87 kh/jh 7/ 59
H.F. 2322 to the elementary, secondary, and postsecondary institutions 1 the students attend. 2 14. Negotiate and contract with private and government 3 agencies for the establishment of financial aid programs; 4 receive gifts of any type for the purpose of establishing, 5 continuing, and increasing financial aid; and administer 6 any form of financial aid submitted to and accepted for 7 administration by the treasurer of state. 8 Sec. 13. Section 261.3, Code 2018, is amended by striking 9 the section and inserting in lieu thereof the following: 10 261.3 Duties of the treasurer of state —— decisions final. 11 1. The treasurer of state shall adopt rules for the 12 administration of this chapter in accordance with section 13 12.11, including but not limited to rules for standards, 14 guidelines, and procedures for each individual program 15 administered by the state treasurer under this chapter. The 16 rules adopted pursuant to this subsection shall provide 17 for the receipt, processing, and administration of student 18 applications and loans; interest rates for student loans 19 administered under this chapter; determining financial need 20 and the priority of grants awarded based on financial need; 21 defining tuition and mandatory fees; processing and approving 22 applications for scholarships, grants, and loans; determining 23 eligibility requirements for eligible borrowers; determining 24 priority for grants and loans; awarding tuition grants; 25 establishing procedures for the repayment of loans and for 26 the deferral of loan repayment for purposes including but not 27 limited to fulfillment of obligations such as military service 28 obligations; and defining residence and determining who is a 29 resident of Iowa. The treasurer of state may provide for the 30 proration of funds if the available funds are insufficient to 31 pay all approved scholarships or grants. Such proration shall 32 take primary account of the financial need of the applicant. 33 The rules for determining who is a resident of Iowa shall be at 34 least as restrictive as those of the state board of regents. 35 -8- LSB 5745YH (7) 87 kh/jh 8/ 59
H.F. 2322 2. The treasurer of state may enter into an agreement with 1 the department of revenue or other state agency to administer 2 administrative wage garnishment to collect defaulted debt owed 3 to the treasurer of state under this chapter. 4 3. For purposes of this chapter, a decision of the treasurer 5 of state is final agency action under chapter 17A. 6 Sec. 14. Section 261.4, Code 2018, is amended by striking 7 the section and inserting in lieu thereof the following: 8 261.4 Scholarship and grant reserve fund. 9 1. A scholarship and grant reserve fund is created to assure 10 that financial assistance will be available to all students 11 who are awarded scholarships or grants through programs funded 12 under this chapter. The fund is created as a separate fund in 13 the state treasury, and moneys in the fund shall not revert to 14 the general fund unless, and then only to the extent that, the 15 funds exceed the maximum allowed balance. 16 2. The maximum balance of the scholarship and grant 17 reserve fund is an amount equal to one percent of the funds 18 appropriated to the scholarship and grant programs under 19 section 261.25 during the preceding fiscal year. The moneys 20 in the fund shall be placed in separate accounts within the 21 fund, according to the source and purpose of the original 22 appropriation. Moneys in the various accounts shall only 23 be used to alleviate a current fiscal year shortfall in 24 appropriations for scholarship or grant programs that have 25 the same nature as the programs for which the moneys were 26 originally appropriated. At the conclusion of a fiscal year, 27 any surplus appropriations made to the treasurer of state 28 for scholarship or grant programs are appropriated to the 29 scholarship and grant reserve fund in an amount equal to the 30 amount of the surplus or the amount necessary to achieve the 31 maximum balance, whichever amount is less. 32 3. Transfers of moneys from the scholarship and grant 33 reserve fund to appropriation accounts in which there is a 34 current fiscal year shortfall may be made only with the prior 35 -9- LSB 5745YH (7) 87 kh/jh 9/ 59
H.F. 2322 written approval of the governor. At least two weeks before 1 moneys are transferred from the fund, the treasurer of state 2 shall notify the chairpersons of the standing appropriations 3 committees of the general assembly and the co-chairpersons 4 of the education appropriations subcommittee of the proposed 5 transfer. The notice shall include information concerning 6 the amount of and reason for the proposed transfer. The 7 chairpersons shall be given at least two weeks to review and 8 comment on the proposed transfer before the transfer can be 9 made. 10 4. The treasurer of state shall annually report to the 11 general assembly the methodology and manner in which the 12 treasurer of state makes the determination of awards for 13 programs for which funds are appropriated under section 261.25. 14 Sec. 15. Section 261.5, subsection 2, unnumbered paragraph 15 1, Code 2018, is amended to read as follows: 16 Notwithstanding any other provision of this chapter , in the 17 event of a national emergency declared by the president of the 18 United States by reason of terrorist attack, the commission 19 treasurer of state may waive or modify any statutory or 20 regulatory provision applicable to state financial aid programs 21 established pursuant to this chapter to ensure, with regard to 22 affected individuals, that the following occurs: 23 Sec. 16. Section 261.5, subsections 3 and 4, Code 2018, are 24 amended to read as follows: 25 3. Notwithstanding any other provision of this chapter , in 26 the event of a national emergency declared by the president 27 of the United States by reason of terrorist attack, the 28 commission treasurer of state may grant temporary relief from 29 requirements rendered infeasible or unreasonable, including 30 due diligence requirements and reporting deadlines, by the 31 national emergency, to an institution of higher education under 32 the state board of regents, a community college, an accredited 33 private institution as defined in section 261.9 , eligible 34 lenders, and other entities participating in the state student 35 -10- LSB 5745YH (7) 87 kh/jh 10/ 59
H.F. 2322 assistance programs in accordance with this chapter , that are 1 located in, or whose operations are directly affected by, areas 2 that are declared disaster areas by any federal, state, or 3 local official in connection with the national emergency. If 4 the commission treasurer of state issues a waiver in accordance 5 with this section , the report prepared by the commission 6 treasurer of state pursuant to section 17A.9A, subsection 7 5 , shall include examples of measures that a postsecondary 8 institution may take in the appropriate exercise of discretion, 9 as provided in 20 U.S.C. §1087tt, to adjust financial need and 10 aid eligibility determinations for affected individuals. 11 4. This section shall not be construed as a requirement 12 that the commission treasurer of state exercise the waiver or 13 modification authority provided pursuant to this section on a 14 case-by-case basis. 15 Sec. 17. Section 261.7, subsection 3, Code 2018, is amended 16 to read as follows: 17 3. The college student aid commission treasurer of state 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. 18. Section 261.9, subsection 1, paragraphs b and d, 23 Code 2018, are amended to read as follows: 24 b. Is accredited by the higher learning commission, is 25 exempt from taxation under section 501(c)(3) of the Internal 26 Revenue Code, and annually provides a matching aggregate 27 amount of institutional financial aid equal to at least 28 seventy-five percent of the amount received in a fiscal year by 29 the institution’s students for Iowa tuition grant assistance 30 under this chapter . Commencing with the fiscal year beginning 31 July 1, 2006, the matching aggregate amount of institutional 32 financial aid shall increase by the percentage of increase each 33 fiscal year of funds appropriated for Iowa tuition grants under 34 section 261.25, subsection 1 , to a maximum match of one hundred 35 -11- LSB 5745YH (7) 87 kh/jh 11/ 59
H.F. 2322 percent. The institution shall file annual reports with the 1 commission treasurer of state prior to receipt of tuition grant 2 moneys under this chapter . An institution whose income is 3 not exempt from taxation under section 501(c) of the Internal 4 Revenue Code and whose students were eligible to receive Iowa 5 tuition grant money in the fiscal year beginning July 1, 2003, 6 shall meet the match requirements of this paragraph no later 7 than June 30, 2005. 8 d. Promotes equal opportunity and affirmative action efforts 9 in the recruitment, appointment, assignment, and advancement of 10 personnel at the institution and provides information regarding 11 such efforts to the commission treasurer of state upon request. 12 Sec. 19. Section 261.9, subsection 2, Code 2018, is amended 13 by striking the subsection. 14 Sec. 20. Section 261.12, subsection 1, paragraph a, Code 15 2018, is amended to read as follows: 16 a. The total tuition and mandatory fees for that student 17 for two semesters , or the trimester or quarter equivalent, less 18 the base amount determined annually by the college student 19 aid commission treasurer of state , which base amount shall be 20 within ten dollars of the average tuition for two semesters , or 21 the trimester equivalent , of undergraduate study at the state 22 universities under the board of regents, but in any event the 23 base amount shall not be less than four hundred dollars; or 24 Sec. 21. Section 261.15, Code 2018, is amended to read as 25 follows: 26 261.15 Administration by commission treasurer of state —— 27 rules report . 28 The commission treasurer shall administer this program and 29 shall : 30 1. Provide application forms and parents’ confidential 31 statement forms. 32 2. Adopt rules and regulations for determining financial 33 need, defining tuition and mandatory fees, defining residence 34 for the purposes of this subchapter , processing and approving 35 -12- LSB 5745YH (7) 87 kh/jh 12/ 59
H.F. 2322 applications for tuition grants, and determining priority of 1 grants. The commission may provide for proration of funds 2 if the available funds are insufficient to pay all approved 3 grants. Such proration shall take primary account of the 4 financial need of the applicant. In determining who is a 5 resident of Iowa, the commission’s rules shall be at least as 6 restrictive as those of the board of regents. 7 3. Approve and award tuition grants. 8 4. Make make an annual report to the governor and general 9 assembly, and evaluate the tuition grant program for the 10 period. The commission treasurer of state may require the 11 accredited private institution to promptly furnish any 12 information which the commission treasurer of state may request 13 in connection with the tuition grant program. 14 Sec. 22. Section 261.16, unnumbered paragraph 1, Code 2018, 15 is amended to read as follows: 16 Each applicant, in accordance with the rules and regulations 17 of the commission treasurer of state , shall: 18 Sec. 23. Section 261.16, subsections 2 and 3, Code 2018, are 19 amended to read as follows: 20 2. Be responsible for the submission of the parents’ 21 confidential statement for processing, the processed 22 information to be returned both to the commission treasurer of 23 state and to the college in which the applicant is enrolling. 24 3. Report promptly to the commission treasurer of state any 25 information requested. 26 Sec. 24. Section 261.16A, subsections 5 and 7, Code 2018, 27 are amended to read as follows: 28 5. Commission Treasurer of state’s responsibilities. The 29 commission’s treasurer of state’s responsibilities for 30 administering tuition grants under this section shall be 31 the same as provided under section 261.15 . The commission 32 treasurer of state may require an eligible institution to 33 promptly furnish any information which the commission treasurer 34 may request in connection with the tuition grant program. 35 -13- LSB 5745YH (7) 87 kh/jh 13/ 59
H.F. 2322 7. Reports to commission treasurer of state . An eligible 1 institution shall file annual reports with the commission 2 treasurer of state , as required by the commission treasurer and 3 under section 261.9 , prior to receipt of tuition grant moneys 4 under this chapter . 5 Sec. 25. Section 261.17, subsection 4, paragraph b, Code 6 2018, is amended to read as follows: 7 b. The amount of a vocational-technical tuition grant to 8 a qualified part-time student enrolled in a course of study 9 including at least three semester hours but fewer than twelve 10 semester hours , or the trimester or quarter equivalent , shall 11 be equal to the amount of a vocational-technical tuition 12 grant that would be paid to a full-time student, except that 13 the commission treasurer of state shall prorate the amount 14 in a manner consistent with the federal Pell grant program 15 proration. 16 Sec. 26. Section 261.17, subsection 7, unnumbered paragraph 17 1, Code 2018, is amended to read as follows: 18 The commission treasurer of state shall administer this 19 program and shall: 20 Sec. 27. Section 261.17, subsection 8, unnumbered paragraph 21 1, Code 2018, is amended to read as follows: 22 Each applicant, in accordance with the rules established by 23 the commission treasurer of state , shall: 24 Sec. 28. Section 261.17, subsection 8, paragraphs b and c, 25 Code 2018, are amended to read as follows: 26 b. Be responsible for the submission of the financial 27 information required for evaluation of the applicant’s need for 28 a grant, on forms determined by the commission treasurer of 29 state . 30 c. Report promptly to the commission treasurer of state any 31 information requested. 32 Sec. 29. Section 261.25, subsections 1, 2, and 3, Code 2018, 33 are amended to read as follows: 34 1. There is appropriated from the general fund of the 35 -14- LSB 5745YH (7) 87 kh/jh 14/ 59
H.F. 2322 state to the commission treasurer of state for each fiscal 1 year the sum of forty-six million six hundred thirty thousand 2 nine hundred fifty-one dollars for tuition grants to qualified 3 students who are enrolled in accredited private institutions. 4 2. There is appropriated from the general fund of the state 5 to the commission treasurer of state for each fiscal year the 6 sum of one million five hundred thousand dollars for tuition 7 grants for qualified students who are enrolled in eligible 8 institutions. 9 3. There is appropriated from the general fund of the state 10 to the commission treasurer of state for each fiscal year the 11 sum of one million seven hundred fifty thousand one hundred 12 eighty-five dollars for vocational-technical tuition grants. 13 Sec. 30. Section 261.35, subsection 1, Code 2018, is amended 14 by striking the subsection. 15 Sec. 31. Section 261.35, subsections 2, 3, and 4, Code 2018, 16 are amended to read as follows: 17 2. “Eligible borrower” means a person, or the parent of 18 a person, who is enrolled or will be enrolled at an eligible 19 institution. All eligible borrowers must meet the eligibility 20 requirements established by the commission treasurer of state . 21 3. “Eligible institution” means any postsecondary 22 educational institution which meets the requirements of the 23 provisions of the Higher Education Act of 1965 for student 24 participation in the federal interest subsidy program and the 25 requirements prescribed by rule of the commission treasurer of 26 state . 27 4. “Eligible lender” means a financial or credit 28 institution, insurance company or other approved lender which 29 meets the standards prescribed by the commission treasurer of 30 state and has executed a lender participation agreement with 31 the commission treasurer of state . 32 Sec. 32. Section 261.36, unnumbered paragraph 1, Code 2018, 33 is amended to read as follows: 34 The commission treasurer of state shall have necessary 35 -15- LSB 5745YH (7) 87 kh/jh 15/ 59
H.F. 2322 powers to carry out its purposes and duties under this 1 subchapter , including but not limited to the power to: 2 Sec. 33. Section 261.36, subsections 2, 4, 5, and 6, Code 3 2018, are amended to read as follows: 4 2. Incur and discharge debts including the payment of any 5 defaulted loan obligations which have been guaranteed by the 6 commission treasurer of state . 7 4. Guarantee loans made by eligible lenders to eligible 8 borrowers who are, or whose children are, enrolled or will 9 be enrolled at eligible institutions as at least half-time 10 students as defined by the commission treasurer of state . 11 5. Approve educational institutions as eligible 12 institutions upon their meeting the requirements established by 13 the commission treasurer of state . 14 6. Approve financial or credit institutions, insurance 15 companies or other lenders as eligible lenders upon their 16 meeting the standards established by the commission treasurer 17 of state for making guaranteed loans. 18 Sec. 34. Section 261.37, unnumbered paragraph 1, Code 2018, 19 is amended to read as follows: 20 The duties of the commission treasurer of state under this 21 subchapter shall be as follows: 22 Sec. 35. Section 261.37, subsections 3, 6, 7, and 8, Code 23 2018, are amended to read as follows: 24 3. Collect an insurance premium of not more than the amount 25 authorized by the federal Higher Education Act of 1965. The 26 premium shall be collected by the lender upon the disbursement 27 of the loan and shall be remitted promptly to the commission 28 treasurer of state . 29 6. To reimburse eligible lenders for the amount authorized 30 by the federal Higher Education Act of 1965 on defaulted loans 31 guaranteed by the commission treasurer of state upon receipt 32 of written notice of the default accompanied by evidence that 33 the lender has exercised the required degree of diligence in 34 efforts to collect the loan. 35 -16- LSB 5745YH (7) 87 kh/jh 16/ 59
H.F. 2322 7. To establish an effective system for the collection of 1 delinquent loans, including the adoption of an agreement with 2 the department of administrative services to set off against a 3 defaulter’s income tax refund or rebate the amount that is due 4 because of a default on a loan made under this subchapter . The 5 commission treasurer of state shall adopt rules under chapter 6 17A necessary to assist the department of administrative 7 services in the implementation of the student loan setoff 8 program as established under section 8A.504 . The commission 9 treasurer of state shall apply administrative wage garnishment 10 procedures authorized under the federal Higher Education Act of 11 1965, as amended and codified in 20 U.S.C. §1071 et seq., for 12 all delinquent loans, including loans authorized under section 13 261.38 , when a defaulter who is financially capable of paying 14 fails to voluntarily enter into a reasonable payment agreement. 15 In no case shall the commission treasurer of state garnish more 16 than the amount authorized by federal law for all loans being 17 collected by the commission treasurer of state , including those 18 authorized under section 261.38 . 19 8. To develop and disseminate informational and educational 20 materials to lenders, postsecondary institutions and borrowers. 21 The commission treasurer of state shall provide applicants, 22 as deemed necessary by the commission treasurer of state , 23 with information about the past default rates of borrowers, 24 enrollment, and placement statistics by postsecondary 25 institution. 26 Sec. 36. Section 261.38, subsection 1, Code 2018, is amended 27 to read as follows: 28 1. The commission treasurer of state shall establish an 29 agency operating account as authorized by the federal Higher 30 Education Act of 1965. The commission treasurer of state shall 31 credit to the agency operating account all moneys provided 32 for the state student loan program by the United States, the 33 state of Iowa, or any of their agencies, departments, or 34 instrumentalities, as well as any funds accruing to the program 35 -17- LSB 5745YH (7) 87 kh/jh 17/ 59
H.F. 2322 which are not required for current administrative expenses. 1 The commission treasurer of state may expend moneys in the 2 agency operating account as authorized by the federal Higher 3 Education Act of 1965. 4 Sec. 37. Section 261.38, subsection 4, paragraph a, Code 5 2018, is amended to read as follows: 6 a. The commission treasurer of state may enter into 7 agreements with the Iowa student loan liquidity corporation 8 in order to increase access for students to education loan 9 programs that the commission treasurer of state determines meet 10 the education needs of Iowa residents. The agreements shall 11 permit the establishment, funding, and operation of alternative 12 education loan programs, as described in section 144(b)(1)(B) 13 of the Internal Revenue Code of 1986 as amended, as defined 14 in section 422.3 , in addition to programs permitted under the 15 federal Higher Education Act of 1965. In accordance with those 16 agreements, the Iowa student loan liquidity corporation may 17 issue bonds, notes, or other obligations to the public and 18 others for the purpose of funding the alternative education 19 loan programs. This authority to issue bonds, notes, or other 20 obligations shall be in addition to the authority established 21 in the articles of incorporation and bylaws of the Iowa student 22 loan liquidity corporation. 23 Sec. 38. Section 261.43, Code 2018, is amended to read as 24 follows: 25 261.43 Actions not barred. 26 No lapse of time shall be a bar to any action to recover on 27 any loan guaranteed by the commission treasurer of state . 28 Sec. 39. Section 261.62, Code 2018, is amended to read as 29 follows: 30 261.62 Iowa state fair scholarship. 31 The Iowa state fair scholarship fund is established in 32 the office of treasurer of state to be administered by the 33 commission. The commission treasurer of state, who shall 34 adopt rules pursuant to chapter 17A for the administration of 35 -18- LSB 5745YH (7) 87 kh/jh 18/ 59
H.F. 2322 this section . The rules shall provide, at a minimum, that 1 only residents of Iowa who have actively participated in the 2 Iowa state fair and graduated from an accredited secondary 3 school in Iowa shall be eligible to receive an Iowa state 4 fair scholarship for matriculation at an eligible a community 5 college as defined in section 260C.2, an accredited private 6 institution as defined in section 261.9, or an institution as 7 defined in section 261.35 of higher learning governed by the 8 board of regents . Notwithstanding section 12C.7 , interest 9 earned on money in the Iowa state fair scholarship fund shall 10 be deposited into the fund and may be used by the commission 11 treasurer of state only for Iowa state fair scholarship awards. 12 Sec. 40. Section 261.71, subsection 1, unnumbered paragraph 13 1, Code 2018, is amended to read as follows: 14 A chiropractic graduate student forgivable loan program 15 is established, to be administered by the college student 16 aid commission treasurer of state for resident graduate 17 students who are enrolled at Iowa chiropractic colleges 18 and universities. A resident graduate student attending an 19 Iowa chiropractic college or university is eligible for loan 20 forgiveness under the program if the student meets all of the 21 following conditions: 22 Sec. 41. Section 261.71, subsection 1, paragraphs c and d, 23 Code 2018, are amended to read as follows: 24 c. The student agrees to practice in an underserved area in 25 the state of Iowa for a period of time to be determined by the 26 commission treasurer of state at the time the loan is awarded. 27 d. The student has received a loan from moneys appropriated 28 to the college student aid commission treasurer of state for 29 this program. 30 Sec. 42. Section 261.71, subsections 2 and 3, Code 2018, are 31 amended to read as follows: 32 2. The contract for the loan repayment shall stipulate 33 the time period the chiropractor shall practice in an 34 underserved area in this state. In addition, the contract 35 -19- LSB 5745YH (7) 87 kh/jh 19/ 59
H.F. 2322 shall stipulate that the chiropractor repay any funds paid on 1 the chiropractor’s loan by the commission treasurer of state if 2 the chiropractor fails to practice in an underserved area in 3 this state for the required period of time. Forgivable loans 4 made to eligible students shall not become due, for repayment 5 purposes, until one year after the student has graduated. A 6 loan that has not been forgiven may be sold to a bank, savings 7 association, credit union, or nonprofit agency eligible to 8 participate in the guaranteed student loan program under the 9 federal Higher Education Act of 1965, 20 U.S.C. §1071 et seq., 10 by the commission treasurer of state when the loan becomes due 11 for repayment. 12 3. For purposes of this section “graduate student” means 13 a student who has completed at least ninety semester hours, 14 or the trimester or quarter equivalent, of postsecondary 15 course work at a public higher education institution or at 16 an accredited private institution, as defined under section 17 261.9 . “Underserved area” means a geographical area included 18 on the Iowa governor’s health practitioner shortage area list, 19 which is compiled by the center for rural health and primary 20 care of the Iowa department of public health. The commission 21 treasurer of state shall adopt rules, consistent with rules 22 used for students enrolled in higher education institutions 23 under the control of the state board of regents, for purposes 24 of determining Iowa residency status of graduate students under 25 this section . The commission treasurer shall also adopt rules 26 which provide standards, guidelines, and procedures for the 27 receipt, processing, and administration of student applications 28 and loans under this section . 29 Sec. 43. Section 261.72, Code 2018, is amended to read as 30 follows: 31 261.72 Chiropractic loan revolving fund. 32 A chiropractic loan revolving fund is created in the state 33 treasury as a separate fund under the control of the commission 34 treasurer of state . The commission treasurer of state shall 35 -20- LSB 5745YH (7) 87 kh/jh 20/ 59
H.F. 2322 deposit payments made by chiropractic loan recipients and 1 the proceeds from the sale of chiropractic loans, less costs 2 of collection of delinquent chiropractic loans, into the 3 chiropractic loan revolving fund. Moneys credited to the 4 fund shall be used to supplement moneys appropriated for the 5 chiropractic graduate student forgivable loan program, for loan 6 forgiveness to eligible chiropractic physicians, and to pay for 7 loan or interest repayment defaults by eligible chiropractic 8 physicians. Notwithstanding section 8.33 , any balance in the 9 fund on June 30 of any fiscal year shall not revert to the 10 general fund of the state. 11 Sec. 44. Section 261.73, subsections 1, 2, 4, and 5, Code 12 2018, are amended to read as follows: 13 1. A chiropractic loan forgiveness program is established 14 to be administered by the commission treasurer of state . A 15 chiropractor is eligible for the program if the chiropractor is 16 a resident of this state, is licensed to practice under chapter 17 151 , and is engaged in the practice of chiropractic in this 18 state. 19 2. Each applicant for loan forgiveness shall, in accordance 20 with the rules of the commission treasurer of state , do the 21 following: 22 a. Complete and file an application for chiropractic loan 23 forgiveness. The individual shall be responsible for the 24 prompt submission of any information required by the commission 25 treasurer of state . 26 b. File a new application and submit information as required 27 by the commission treasurer of state annually on the basis 28 of which the applicant’s eligibility for the renewed loan 29 forgiveness will be evaluated and determined. 30 c. Complete and return on a form approved by the commission 31 treasurer of state an affidavit of practice verifying that the 32 applicant meets the eligibility requirements of subsection 1 . 33 4. A chiropractic loan forgiveness repayment fund is 34 created for deposit of moneys appropriated to or received by 35 -21- LSB 5745YH (7) 87 kh/jh 21/ 59
H.F. 2322 the commission treasurer of state for use under the program. 1 Notwithstanding section 8.33 , moneys deposited in the fund 2 shall not revert to any fund of the state at the end of 3 any fiscal year but shall remain in the chiropractic loan 4 forgiveness repayment fund and be continuously available for 5 loan forgiveness under the program. Notwithstanding section 6 12C.7, subsection 2 , interest or earnings on moneys deposited 7 in the fund shall be credited to the fund. 8 5. The commission treasurer of state shall adopt rules 9 pursuant to chapter 17A to administer this section . 10 Sec. 45. Section 261.81, Code 2018, is amended to read as 11 follows: 12 261.81 Work-study program. 13 The Iowa college work-study program is established to 14 stimulate and promote the part-time employment of students 15 attending Iowa postsecondary educational institutions, and the 16 part-time or full-time summer employment of students registered 17 for classes at Iowa postsecondary institutions during the 18 succeeding school year, who are in need of employment earnings 19 in order to pursue postsecondary education. The program shall 20 be administered by the commission. The commission treasurer 21 of state, who shall adopt rules under chapter 17A to carry 22 out the program. The employment under the program shall be 23 employment by the postsecondary education institution itself or 24 work in a public agency or private nonprofit organization under 25 a contract between the institution or the commission treasurer 26 of state and the agency or organization. The work shall not 27 result in the displacement of employed workers or impair or 28 affect existing contracts for services. Moneys used by an 29 institution for the work-study program shall supplement and not 30 supplant jobs and existing financial aid programs provided for 31 students through the institution. 32 Sec. 46. Section 261.83, subsection 1, Code 2018, is amended 33 to read as follows: 34 1. An eligible postsecondary education institution is 35 -22- LSB 5745YH (7) 87 kh/jh 22/ 59
H.F. 2322 an institution of higher education under the state board 1 of regents, a community college, or an accredited private 2 institution as defined in section 261.9, subsection 1 . The 3 commission treasurer of state may enter into an agreement with 4 an eligible postsecondary education institution under which 5 the commission treasurer of state will make grants to the 6 institution for the work-study program. 7 Sec. 47. Section 261.83, subsection 2, paragraphs a and c, 8 Code 2018, are amended to read as follows: 9 a. File the proper forms with the commission treasurer of 10 state for participation in the program. 11 c. Supervise and evaluate employment and maintain the 12 records required by the commission treasurer of state . 13 Sec. 48. Section 261.84, subsection 3, Code 2018, is amended 14 to read as follows: 15 3. Demonstrate financial need. A student’s need shall be 16 determined on the basis of a need analysis system approved for 17 use by the commission treasurer of state or under the federal 18 work-study program. 19 Sec. 49. Section 261.85, Code 2018, is amended to read as 20 follows: 21 261.85 Appropriation. 22 1. There is appropriated from the general fund of the state 23 to the commission treasurer of state for each fiscal year the 24 sum of two million seven hundred fifty thousand dollars for the 25 work-study program. 26 2. From moneys appropriated in this section , one 27 million five hundred thousand dollars shall be allocated 28 to institutions of higher education under the state 29 board of regents and community colleges and the remaining 30 dollars appropriated in this section shall be allocated 31 by the commission treasurer of state on the basis of need 32 as determined by the portion of the federal formula for 33 distribution of work-study funds that relates to the current 34 need of institutions treasurer . 35 -23- LSB 5745YH (7) 87 kh/jh 23/ 59
H.F. 2322 Sec. 50. Section 261.86, subsection 1, unnumbered paragraph 1 1, Code 2018, is amended to read as follows: 2 A national guard educational assistance program is 3 established to be administered by the college student aid 4 commission treasurer of state for members of the Iowa national 5 guard who are enrolled as undergraduate students in a community 6 college as defined in section 260C.2 , an institution of higher 7 learning under the state board of regents, or an accredited 8 private institution as defined in section 261.9 . The college 9 student aid commission treasurer of state shall adopt rules 10 pursuant to chapter 17A to administer this section . An 11 individual is eligible for the national guard educational 12 assistance program if the individual meets all of the following 13 conditions: 14 Sec. 51. Section 261.86, subsections 2 and 4, Code 2018, are 15 amended to read as follows: 16 2. Educational assistance paid pursuant to this section 17 shall not exceed the resident tuition rate established for 18 institutions of higher learning under the control of the state 19 board of regents. If the amount appropriated in a fiscal 20 year for purposes of this section is insufficient to provide 21 educational assistance to all national guard members who 22 apply for the program and who are determined by the adjutant 23 general to be eligible for the program, the adjutant general 24 shall, in coordination with the commission treasurer of state , 25 determine the distribution of educational assistance. However, 26 educational assistance paid pursuant to this section shall 27 not be less than fifty percent of the resident tuition rate 28 established for institutions of higher learning under the 29 control of the state board of regents or fifty percent of 30 the tuition rate at the institution attended by the national 31 guard member, whichever is lower. Neither eligibility nor 32 educational assistance determinations shall be based upon a 33 national guard member’s unit, the location at which drills are 34 attended, or whether the eligible individual is a member of the 35 -24- LSB 5745YH (7) 87 kh/jh 24/ 59
H.F. 2322 Iowa army or air national guard. 1 4. The eligibility of applicants and amounts of educational 2 assistance to be paid shall be certified by the adjutant 3 general of Iowa to the college student aid commission treasurer 4 of state , and all amounts that are or become due to a community 5 college, accredited private institution, or institution of 6 higher learning under the control of the state board of regents 7 under this section shall be paid to the college or institution 8 by the college student aid commission treasurer of state upon 9 receipt of certification by the president or governing board 10 of the educational institution as to accuracy of charges 11 made, and as to the attendance and academic progress of the 12 individual at the educational institution. The college student 13 aid commission treasurer of state shall maintain an annual 14 record of the number of participants and the dollar value of 15 the educational assistance provided. 16 Sec. 52. Section 261.86, subsection 3, paragraph b, 17 subparagraph (3), Code 2018, is amended to read as follows: 18 (3) For each trimester or quarter that the member received 19 educational assistance while attending an institution as a 20 full-time or part-time student, the number of credit hours that 21 are determined to be the semester equivalent by the college 22 student aid commission treasurer of state . 23 Sec. 53. Section 261.87, subsection 1, paragraph a, Code 24 2018, is amended by striking the paragraph. 25 Sec. 54. Section 261.87, subsection 2, unnumbered paragraph 26 1, Code 2018, is amended to read as follows: 27 An all Iowa opportunity scholarship program is established 28 to be administered by the commission treasurer of state . The 29 awarding of scholarships under the program is subject to 30 appropriations made by the general assembly. A person who 31 meets all of the following requirements is eligible for the 32 program: 33 Sec. 55. Section 261.87, subsection 2, paragraph f, Code 34 2018, is amended to read as follows: 35 -25- LSB 5745YH (7) 87 kh/jh 25/ 59
H.F. 2322 f. Begins enrollment at an eligible institution within 1 two academic years of graduation from high school or receipt 2 of a high school equivalency diploma under chapter 259A and 3 continuously receives awards as a full-time or part-time 4 student to maintain eligibility. However, the student may 5 defer participation in the program for up to two years in order 6 to pursue obligations that meet conditions established by the 7 commission treasurer of state by rule or to fulfill military 8 obligations. 9 Sec. 56. Section 261.87, subsections 3, 5, and 6, Code 2018, 10 are amended to read as follows: 11 3. Priority for scholarship awards. Priority for 12 scholarships under this section shall be given to eligible 13 foster care students who meet the eligibility criteria under 14 subsection 2 . Following distribution to students who meet 15 the eligibility criteria under subsection 2 , the commission 16 treasurer of state may establish priority for awarding 17 scholarships using any moneys that remain in the all Iowa 18 opportunity scholarship fund. 19 5. Discontinuance of attendance —— remittance. If a student 20 receiving a scholarship pursuant to this section discontinues 21 attendance before the end of any academic term, the entire 22 amount of any refund due to the student, up to the amount of any 23 payments made by the state, shall be remitted by the eligible 24 institution to the commission. The commission treasurer of 25 state, who shall deposit refunds paid to the commission in 26 accordance with this subsection into the fund established 27 pursuant to subsection 6 . 28 6. Fund established. An all Iowa opportunity scholarship 29 fund is created in the state treasury as a separate fund under 30 the control of the commission treasurer of state . All moneys 31 deposited or paid into the fund are appropriated and made 32 available to the commission treasurer of state to be used for 33 scholarships for students meeting the requirements of this 34 section . Notwithstanding section 8.33 , any balance in the fund 35 -26- LSB 5745YH (7) 87 kh/jh 26/ 59
H.F. 2322 on June 30 of each fiscal year shall not revert to the general 1 fund of the state, but shall be available for purposes of this 2 section in subsequent fiscal years. 3 Sec. 57. Section 261.87, subsection 4, unnumbered paragraph 4 1, Code 2018, is amended to read as follows: 5 A qualified student at an eligible institution may receive 6 scholarships for not more than the equivalent of eight 7 full-time semesters of undergraduate study, excluding summer 8 semesters. A qualified student attending part-time may receive 9 scholarships for not more than the equivalent of sixteen 10 part-time semesters of undergraduate study. Scholarships 11 awarded pursuant to this section shall not exceed the least 12 of the following amounts, as determined by the commission 13 treasurer of state : 14 Sec. 58. Section 261.110, subsections 1, 4, 5, and 6, Code 15 2018, are amended to read as follows: 16 1. A teach Iowa scholar program is established to provide 17 teach Iowa scholar grants to selected high-caliber teachers. 18 The commission treasurer of state shall administer the program 19 in collaboration with the department of education. 20 4. A selected applicant who meets all of the eligibility 21 requirements of this section shall be eligible for a teach Iowa 22 scholar grant for each year of full-time employment completed 23 in this state as a teacher for a school district, charter 24 school, area education agency, or accredited nonpublic school. 25 A teach Iowa scholar grant shall not exceed four thousand 26 dollars per year per recipient. Grants awarded under this 27 section shall not exceed a total of twenty thousand dollars per 28 recipient over a five-year period. If a selected applicant 29 has received a federally guaranteed Stafford loan under the 30 federal family education loan program or the federal direct 31 loan program, a federal direct plus loan, or a federal Perkins 32 loan, the selected applicant may elect to have the commission 33 treasurer of state make payment under the program directly to 34 the selected applicant’s student loan holder. 35 -27- LSB 5745YH (7) 87 kh/jh 27/ 59
H.F. 2322 5. The commission treasurer of state , in collaboration 1 with the department of education, shall adopt rules pursuant 2 to chapter 17A to administer this section . The rules shall 3 include but shall not be limited to a process for use by the 4 commission treasurer of state to determine which eligible 5 applicants will receive teach Iowa scholar grants. 6 6. A teach Iowa scholar fund is established in the state 7 treasury. The fund shall be administered by the commission 8 treasurer of state and shall consist of moneys appropriated 9 by the general assembly and any other moneys received by the 10 commission treasurer of state for deposit in the fund. The 11 moneys in the fund are appropriated to the commission treasurer 12 of state for the teach Iowa scholar program. Notwithstanding 13 section 8.33 , moneys in the fund at the close of the fiscal 14 year shall not revert to the general fund of the state but 15 shall remain available for expenditure for the teach Iowa 16 scholar program for subsequent fiscal years. Notwithstanding 17 section 12C.7, subsection 2 , interest or earnings on moneys in 18 the fund shall be credited to the fund. 19 Sec. 59. Section 261.110, subsection 3, unnumbered 20 paragraph 1, Code 2018, is amended to read as follows: 21 Criteria for eligibility shall be established by the 22 commission treasurer of state and shall include but are not 23 limited to the following: 24 Sec. 60. Section 261.111, subsections 1, 3, 4, 6, 7, and 9, 25 Code 2018, are amended to read as follows: 26 1. A teacher shortage forgivable loan program is 27 established to be administered by the college student aid 28 commission treasurer of state . An individual is eligible for 29 the forgivable loan program if the individual is a resident 30 of this state who is enrolled as a sophomore, junior, senior, 31 or graduate student in an approved practitioner preparation 32 program in a designated area in which teacher shortages are 33 anticipated at an institution of higher learning under the 34 control of the state board of regents or an accredited private 35 -28- LSB 5745YH (7) 87 kh/jh 28/ 59
H.F. 2322 institution as defined in section 261.9 . 1 3. Each applicant shall, in accordance with the rules of the 2 commission treasurer of state , do the following: 3 a. Complete and file an application for a teacher shortage 4 forgivable loan. The individual shall be responsible for the 5 prompt submission of any information required by the commission 6 treasurer of state . 7 b. File a new application and submit information as required 8 by the commission treasurer of state annually on the basis of 9 which the applicant’s eligibility for the renewed forgivable 10 loan will be evaluated and determined. 11 4. Forgivable loans to eligible students shall not become 12 due until after the student graduates or leaves school. The 13 individual’s total loan amount, including principal and 14 interest, shall be reduced by twenty percent for each year in 15 which the individual remains an Iowa resident and is employed 16 in Iowa by a school district or an accredited nonpublic 17 school as a practitioner in the teacher shortage area for 18 which the loan was approved. If the commission treasurer of 19 state determines that the person does not meet the criteria 20 for forgiveness of the principal and interest payments, the 21 commission treasurer of state shall establish a plan for 22 repayment of the principal and interest over a ten-year period. 23 If a person required to make the repayment does not make the 24 required payments, the commission treasurer of state shall 25 provide for payment collection. 26 6. The commission treasurer of state shall prescribe by rule 27 the interest rate for the forgivable loan. 28 7. A teacher shortage forgivable loan repayment fund 29 is created for deposit of payments made by forgivable loan 30 recipients who do not fulfill the conditions of the forgivable 31 loan program and any other moneys appropriated to or received 32 by the commission treasurer of state for deposit in the fund. 33 Notwithstanding section 8.33 , moneys deposited in the fund 34 shall not revert to the general fund of the state at the end 35 -29- LSB 5745YH (7) 87 kh/jh 29/ 59
H.F. 2322 of any fiscal year but shall remain in the forgivable loan 1 repayment fund and be continuously available to make additional 2 loans under the program. Notwithstanding section 12C.7, 3 subsection 2 , interest or earnings on moneys deposited in the 4 fund shall be credited to the fund. 5 9. The commission treasurer of state shall submit in a 6 report to the general assembly by January 1, annually, the 7 number of students who received forgivable loans pursuant to 8 this section , which institutions the students were enrolled 9 in, and the amount paid to each of the institutions on behalf 10 of the students who received forgivable loans pursuant to this 11 section and the total amount of loans outstanding, including a 12 schedule of years remaining on the outstanding loans. 13 Sec. 61. Section 261.112, subsections 1, 3, 5, 6, and 7, 14 Code 2018, are amended to read as follows: 15 1. A teacher shortage loan forgiveness program is 16 established to be administered by the commission treasurer of 17 state . A teacher is eligible for the program if the teacher 18 is practicing in a teacher shortage area as designated by the 19 department of education pursuant to subsection 2 . A person 20 is ineligible for this program if the person receives a grant 21 under section 261.110 or a forgivable loan under section 22 261.111 . For purposes of this section , “teacher” means an 23 individual holding a practitioner’s license issued under 24 chapter 272 , who is employed in a nonadministrative position 25 in a designated shortage area by a school district or area 26 education agency pursuant to a contract issued by a board of 27 directors under section 279.13 . 28 3. Each applicant for loan forgiveness shall, in accordance 29 with the rules of the commission treasurer of state , do the 30 following: 31 a. Complete and file an application for teacher shortage 32 loan forgiveness. The individual shall be responsible for the 33 prompt submission of any information required by the commission 34 treasurer of state . 35 -30- LSB 5745YH (7) 87 kh/jh 30/ 59
H.F. 2322 b. File a new application and submit information as required 1 by the commission treasurer of state annually on the basis 2 of which the applicant’s eligibility for the renewed loan 3 forgiveness will be evaluated and determined. 4 c. Complete and return on a form approved by the commission 5 treasurer of state an affidavit of practice verifying that the 6 applicant is a teacher in an eligible teacher shortage area. 7 5. A teacher shortage loan forgiveness repayment fund is 8 created for deposit of moneys appropriated to or received by 9 the commission treasurer of state for use under the program. 10 Notwithstanding section 8.33 , moneys deposited in the fund 11 shall not revert to any fund of the state at the end of any 12 fiscal year but shall remain in the loan forgiveness repayment 13 fund and be continuously available for loan forgiveness under 14 the program. Notwithstanding section 12C.7, subsection 2 , 15 interest or earnings on moneys deposited in the fund shall be 16 credited to the fund. 17 6. The commission treasurer of state shall submit in a 18 report to the general assembly by January 1, annually, the 19 number of individuals who received loan forgiveness pursuant to 20 this section , which shortage areas the teachers taught in, the 21 amount paid to each program participant, and other information 22 identified by the commission treasurer of state as indicators 23 of outcomes from the program. 24 7. The commission treasurer of state shall adopt rules 25 pursuant to chapter 17A to administer this section . 26 Sec. 62. Section 261.113, subsections 1, 2, 4, 6, 7, 8, and 27 10, Code 2018, are amended to read as follows: 28 1. Program established. A rural Iowa primary care loan 29 repayment program is established to be administered by the 30 college student aid commission treasurer of state for purposes 31 of providing loan repayments for medical students who agree to 32 practice as physicians in service commitment areas for five 33 years and meet the requirements of this section . 34 2. Eligibility. An individual is eligible to apply to 35 -31- LSB 5745YH (7) 87 kh/jh 31/ 59
H.F. 2322 enter into a program agreement with the commission treasurer of 1 state if the individual is enrolled full-time in and receives 2 a recommendation from the state university of Iowa college of 3 medicine or Des Moines university —— osteopathic medical center 4 in a curriculum leading to a doctor of medicine degree or a 5 doctor of osteopathic medicine degree. 6 4. Priority to Iowa residents. The commission treasurer 7 of state shall give priority to eligible students who are 8 residents of Iowa upon enrolling in the university. 9 6. Selection of service commitment area. A loan repayment 10 recipient shall notify the commission treasurer of state of the 11 recipient’s service commitment area prior to beginning practice 12 in the area in accordance with subsection 3 , paragraph “d” . 13 The commission treasurer of state may waive the requirement 14 that the loan repayment recipient practice in the same service 15 commitment area for all five years. 16 7. Rules for additional loan repayment. The commission 17 treasurer of state shall adopt rules to provide, in addition 18 to loan repayment provided to eligible students pursuant to 19 this section and subject to the availability of surplus funds, 20 loan repayment to a physician who received a doctor of medicine 21 or doctor of osteopathic medicine degree from an eligible 22 university as provided in subsection 2 , obtained a license 23 to practice medicine and surgery or osteopathic medicine and 24 surgery in this state, completed the physician’s residency 25 program requirement with an Iowa-based residency program, and 26 is engaged in the full-time practice of medicine and surgery 27 or osteopathic medicine and surgery as specified in subsection 28 3 , paragraph “d” . 29 8. Part-time practice —— agreement amended. A person who 30 entered into an agreement pursuant to subsection 3 may apply 31 to the commission treasurer of state to amend the agreement 32 to allow the person to engage in less than the full-time 33 practice specified in the agreement and under subsection 3 , 34 paragraph “d” . If the commission treasurer of state determines 35 -32- LSB 5745YH (7) 87 kh/jh 32/ 59
H.F. 2322 exceptional circumstances exist, the commission treasurer of 1 state and the person may consent to amend the agreement under 2 which the person shall engage in less than full-time practice 3 of medicine and surgery or osteopathic medicine and surgery 4 specializing in family medicine, pediatrics, psychiatry, 5 internal medicine, or general surgery in a service commitment 6 area for an extended period of part-time practice determined 7 by the commission treasurer of state to be proportional to 8 the amount of full-time practice remaining under the original 9 agreement. 10 10. Trust fund established. A rural Iowa primary care 11 trust fund is created in the state treasury as a separate fund 12 under the control of the commission treasurer of state . The 13 commission treasurer of state shall remit all repayments made 14 pursuant to this section to the rural Iowa primary care trust 15 fund. All moneys deposited or paid into the trust fund are 16 appropriated and made available to the commission treasurer 17 of state to be used for meeting the requirements of this 18 section . Moneys in the fund up to the total amount that an 19 eligible student may receive for an eligible loan in accordance 20 with this section and upon fulfilling the requirements of 21 subsection 3 , shall be considered encumbered for the duration 22 of the agreement entered into pursuant to subsection 3 . 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. 63. Section 261.113, subsection 3, unnumbered 28 paragraph 1, Code 2018, is amended to read as follows: 29 A program agreement shall be entered into by an eligible 30 student and the commission treasurer of state during the 31 eligible student’s final year of study leading to a doctor of 32 medicine or doctor of osteopathic medicine degree. Under the 33 agreement, to receive loan repayments pursuant to subsection 5 , 34 an eligible student shall agree to and shall fulfill all of the 35 -33- LSB 5745YH (7) 87 kh/jh 33/ 59
H.F. 2322 following requirements: 1 Sec. 64. Section 261.113, subsection 3, paragraphs a and d, 2 Code 2018, are amended to read as follows: 3 a. Receive a doctor of medicine or doctor of osteopathic 4 medicine degree from an eligible university and apply for, 5 enter, and complete a residency program approved by the 6 commission treasurer of state . 7 d. Within nine months of graduating from the residency 8 program and receiving a permanent license in accordance with 9 paragraph “b” , engage in the full-time practice of medicine 10 and surgery or osteopathic medicine and surgery specializing 11 in family medicine, pediatrics, psychiatry, internal medicine, 12 or general surgery for a period of five consecutive years in 13 the service commitment area specified under subsection 6 , 14 unless the loan repayment recipient receives a waiver from the 15 commission treasurer of state to complete the years of practice 16 required under the agreement in another service commitment area 17 pursuant to subsection 6 . 18 Sec. 65. Section 261.113, subsection 5, paragraph b, Code 19 2018, is amended to read as follows: 20 b. The commission treasurer of state shall not enter into 21 more than twenty program agreements annually. The percentage 22 of agreements entered into by students attending eligible 23 universities shall be evenly divided. However, if there are 24 fewer applicants at one eligible university, eligible student 25 applicants enrolled in other eligible universities may be 26 awarded the remaining agreements. 27 Sec. 66. Section 261.113, subsection 9, paragraph d, Code 28 2018, is amended to read as follows: 29 d. If a loan repayment recipient fails to fulfill 30 the obligation to engage in practice in accordance with 31 subsection 3 , the recipient shall be subject to repayment to 32 the commission treasurer of state of the loan amount plus 33 interest as specified by rule. A loan repayment recipient who 34 fails to meet the requirements of the obligation to engage in 35 -34- LSB 5745YH (7) 87 kh/jh 34/ 59
H.F. 2322 practice in accordance with subsection 3 may also be subject to 1 repayment of moneys advanced by the service commitment area as 2 provided in any agreement with the service commitment area. 3 Sec. 67. Section 261.114, subsections 1, 2, 3, 4, 6, 7, 8, 4 and 10, Code 2018, are amended to read as follows: 5 1. Program established. A rural Iowa advanced registered 6 nurse practitioner and physician assistant loan repayment 7 program is established to be administered by the college 8 student aid commission treasurer of state for purposes of 9 providing loan repayments for advanced registered nurse 10 practitioner students and physician assistant students who 11 agree to practice as advanced registered nurse practitioners or 12 physician assistants in service commitment areas for five years 13 and meet the requirements of this section . 14 2. Eligibility. An individual is eligible to apply to 15 enter into a program agreement with the commission treasurer of 16 state if the individual is enrolled full-time in and receives 17 a recommendation from an eligible university in a curriculum 18 leading to a doctorate of nursing practice degree or a masters 19 of physician assistant studies degree. 20 3. Program agreements. A program agreement shall be entered 21 into by an eligible student and the commission treasurer of 22 state when the eligible student begins the final year of study 23 in an academic program leading to eligibility for licensure 24 as a nurse practitioner or physician assistant. Under the 25 agreement, to receive loan repayments pursuant to subsection 5 , 26 an eligible student shall agree to and shall fulfill all of the 27 following requirements: 28 a. Receive a graduate-level credential qualifying the 29 credential recipient for a license to practice as an advanced 30 registered nurse practitioner pursuant to chapter 152 or 31 physician assistant pursuant to chapter 148C . 32 b. Within nine months of receiving a degree and obtaining 33 a license in accordance with paragraph “a” , engage in the 34 full-time practice as an advanced registered nurse practitioner 35 -35- LSB 5745YH (7) 87 kh/jh 35/ 59
H.F. 2322 or physician assistant for a period of five consecutive years 1 in the service commitment area specified under subsection 6 , 2 unless the loan repayment recipient receives a waiver from the 3 commission treasurer of state to complete the years of practice 4 required under the agreement in another service commitment area 5 pursuant to subsection 6 . 6 4. Priority to Iowa residents. The commission treasurer 7 of state shall give priority to eligible students who are 8 residents of Iowa upon enrolling in the eligible university. 9 6. Selection of service commitment area. A loan repayment 10 recipient shall notify the commission treasurer of state of the 11 recipient’s service commitment area prior to beginning practice 12 in the area in accordance with subsection 3 . The commission 13 treasurer of state may waive the requirement that the loan 14 repayment recipient practice in the same service commitment 15 area for all five years. 16 7. Rules for additional loan repayment. The commission 17 treasurer of state shall adopt rules to provide, in addition 18 to loan repayment provided to eligible students pursuant to 19 this section and subject to the availability of surplus funds, 20 loan repayment to an advanced registered nurse practitioner or 21 physician assistant who, as provided in subsection 3 , received 22 a degree from an eligible university, obtained a license to 23 practice in this state, and is engaged in full-time practice 24 as an advanced registered nurse practitioner or physician 25 assistant in a service commitment area. 26 8. Part-time practice —— agreement amended. A person who 27 entered into an agreement pursuant to subsection 3 may apply 28 to the commission treasurer of state to amend the agreement 29 to allow the person to engage in less than the full-time 30 practice specified in the agreement and under subsection 3 . 31 If the commission treasurer of state determines exceptional 32 circumstances exist, the commission treasurer of state and 33 the person may consent to amend the agreement under which 34 the person shall engage in less than full-time practice 35 -36- LSB 5745YH (7) 87 kh/jh 36/ 59
H.F. 2322 as an advanced registered nurse practitioner or physician 1 assistant in a service commitment area for an extended period 2 of part-time practice determined by the commission treasurer of 3 state to be proportional to the amount of full-time practice 4 remaining under the original agreement. 5 10. Trust fund established. A rural Iowa advanced 6 registered nurse practitioner and physician assistant trust 7 fund is created in the state treasury as a separate fund 8 under the control of the commission treasurer of state . The 9 commission treasurer of state shall remit all repayments made 10 pursuant to this section to the rural Iowa advanced registered 11 nurse practitioner and physician assistant trust fund. All 12 moneys deposited or paid into the trust fund are appropriated 13 and made available to the commission treasurer of state to be 14 used for meeting the requirements of this section . Moneys in 15 the fund up to the total amount that an eligible student may 16 receive for an eligible loan in accordance with this section 17 and upon fulfilling the requirements of subsection 3 shall be 18 considered encumbered for the duration of the agreement entered 19 into pursuant to subsection 3 . Notwithstanding section 8.33 , 20 any balance in the fund on June 30 of each fiscal year shall not 21 revert to the general fund of the state, but shall be available 22 for purposes of this section in subsequent fiscal years. 23 Sec. 68. Section 261.114, subsection 9, paragraph d, Code 24 2018, is amended to read as follows: 25 d. If a loan repayment recipient fails to fulfill 26 the obligation to engage in practice in accordance with 27 subsection 3 , the recipient shall be subject to repayment to 28 the commission treasurer of state of the loan amount plus 29 interest as specified by rule. A loan repayment recipient who 30 fails to meet the requirements of the obligation to engage in 31 practice in accordance with subsection 3 may also be subject to 32 repayment of moneys advanced by the service commitment area as 33 provided in any agreement with the service commitment area. 34 Sec. 69. Section 261.115, subsections 1, 2, 3, and 5, Code 35 -37- LSB 5745YH (7) 87 kh/jh 37/ 59
H.F. 2322 2018, are amended to read as follows: 1 1. A health care professional recruitment program is 2 established to be administered by the college student aid 3 commission treasurer of state for Des Moines university —— 4 osteopathic medical center. The program shall consist of a 5 loan repayment program for health care professionals. The 6 commission treasurer of state shall regularly adjust the 7 service requirement under each aspect of the program to 8 provide, to the extent possible, an equal financial benefit for 9 each period of service required. 10 2. A health care professional shall be eligible for the 11 loan repayment program if the health care professional agrees 12 to practice in an eligible rural community in this state. Des 13 Moines university —— osteopathic medical center shall recruit 14 and place health care professionals in rural communities which 15 have agreed to provide additional funds for the recipient’s 16 loan repayment. The contract for the loan repayment shall 17 stipulate the time period the recipient shall practice in an 18 eligible rural community in this state. In addition, the 19 contract shall stipulate that the recipient repay any funds 20 paid on the recipient’s loan by the commission treasurer of 21 state if the recipient fails to practice in an eligible rural 22 community in this state for the required period of time. 23 3. A health care professional recruitment fund is created 24 in the state treasury as a separate fund under the control 25 of the commission treasurer of state for deposit of moneys 26 appropriated to or received by the commission treasurer of 27 state for use under the program. Notwithstanding section 8.33 , 28 any balance in the fund on June 30 of any fiscal year shall 29 not revert to the general fund of the state but shall remain 30 in the fund and be continuously available for loan forgiveness 31 under the program. Notwithstanding section 12C.7, subsection 32 2 , interest or earnings on moneys deposited in the fund shall 33 be credited to the fund. 34 5. The commission treasurer of state shall adopt rules 35 -38- LSB 5745YH (7) 87 kh/jh 38/ 59
H.F. 2322 pursuant to chapter 17A to administer this section . 1 Sec. 70. Section 261.116, subsections 1, 2, 4, 5, and 6, 2 Code 2018, are amended to read as follows: 3 1. A registered nurse and nurse educator loan forgiveness 4 program is established to be administered by the commission 5 treasurer of state . The program shall consist of loan 6 forgiveness for eligible federally guaranteed loans for 7 registered nurses and nurse educators who practice or teach in 8 this state. For purposes of this section , unless the context 9 otherwise requires, “nurse educator” means a registered nurse 10 who holds a master’s degree or doctorate degree and is employed 11 as a faculty member who teaches nursing as provided in 655 12 IAC 2.6(152) at a community college, an accredited private 13 institution, or an institution of higher education governed by 14 the state board of regents. 15 2. Each applicant for loan forgiveness shall, in accordance 16 with the rules of the commission treasurer of state , do the 17 following: 18 a. Complete and file an application for registered nurse 19 or nurse educator loan forgiveness. The individual shall 20 be responsible for the prompt submission of any information 21 required by the commission treasurer of state . 22 b. File a new application and submit information as required 23 by the commission treasurer of state annually on the basis 24 of which the applicant’s eligibility for the renewed loan 25 forgiveness will be evaluated and determined. 26 c. Complete and return, on a form approved by the commission 27 treasurer of state , an affidavit of practice verifying that the 28 applicant is a registered nurse practicing in this state or a 29 nurse educator teaching at a community college, an accredited 30 private institution, or an institution of higher learning 31 governed by the state board of regents. 32 4. A registered nurse and nurse educator loan forgiveness 33 repayment fund is created for deposit of moneys appropriated 34 to or received by the commission treasurer of state for use 35 -39- LSB 5745YH (7) 87 kh/jh 39/ 59
H.F. 2322 under the program. Notwithstanding section 8.33 , moneys 1 deposited in the fund shall not revert to any fund of the state 2 at the end of any fiscal year but shall remain in the loan 3 forgiveness repayment fund and be continuously available for 4 loan forgiveness under the program. Notwithstanding section 5 12C.7, subsection 2 , interest or earnings on moneys deposited 6 in the fund shall be credited to the fund. 7 5. The commission treasurer of state shall submit in a 8 report to the general assembly by January 1, annually, the 9 number of individuals who received loan forgiveness pursuant to 10 this section , where the participants practiced or taught, the 11 amount paid to each program participant, and other information 12 identified by the commission treasurer of state as indicators 13 of outcomes from the program. 14 6. The commission treasurer of state shall adopt rules 15 pursuant to chapter 17A to administer this section . 16 Sec. 71. Section 261.130, subsection 8, unnumbered 17 paragraph 1, Code 2018, is amended to read as follows: 18 The commission treasurer of state shall administer this 19 program and shall: 20 Sec. 72. Section 261.130, subsection 9, unnumbered 21 paragraph 1, Code 2018, is amended to read as follows: 22 Each applicant, in accordance with the rules established by 23 the commission treasurer of state , shall: 24 Sec. 73. Section 261.130, subsection 9, paragraphs b and c, 25 Code 2018, are amended to read as follows: 26 b. Be responsible for the submission of the financial 27 information required for evaluation of the applicant’s need for 28 a grant, on forms determined by the commission treasurer of 29 state . 30 c. Report promptly to the commission treasurer of state any 31 information requested. 32 Sec. 74. Section 261A.5, Code 2018, is amended to read as 33 follows: 34 261A.5 Creation as public instrumentality. 35 -40- LSB 5745YH (7) 87 kh/jh 40/ 59
H.F. 2322 The Iowa higher education loan authority is created as 1 a body politic and corporate. The authority is a public 2 instrumentality and the exercise by the authority of the powers 3 conferred by this chapter is the performance of an essential 4 public function. The authority is attached to the college 5 student aid commission treasurer of state for administrative 6 purposes. 7 Sec. 75. Section 261D.3, subsection 2, paragraph e, Code 8 2018, is amended to read as follows: 9 e. One alternate member appointed by the Iowa college 10 student aid commission treasurer of state . 11 Sec. 76. Section 261F.2, Code 2018, is amended to read as 12 follows: 13 261F.2 Code of conduct. 14 1. A covered institution shall do the following: 15 a. Develop, in consultation with the college student 16 aid commission treasurer of state , a code of conduct 17 governing educational loan activities with which the covered 18 institution’s officers, employees, and agents shall comply. 19 b. Publish the code of conduct developed in accordance with 20 paragraph “a” prominently on its internet site. 21 c. Administer and enforce the code of conduct developed in 22 accordance with paragraph “a” . 23 2. The college student aid commission treasurer of state 24 shall provide to covered institutions assistance and guidance 25 relating to the development, administration, and monitoring of 26 a code of conduct governing educational loan activities. 27 3. Except as provided in this section , the college student 28 aid commission treasurer of state is not subject to the duties, 29 restrictions, prohibitions, and penalties of this chapter . 30 Sec. 77. Section 261G.1, Code 2018, is amended to read as 31 follows: 32 261G.1 Purpose. 33 The purpose of this chapter is to authorize the college 34 student aid commission treasurer of state to enter into or 35 -41- LSB 5745YH (7) 87 kh/jh 41/ 59
H.F. 2322 recognize agreements that will create interstate reciprocity 1 in the regulation of postsecondary distance education for the 2 purpose of encouraging cost savings for students and greater 3 efficiencies and effectiveness for institutions of higher 4 education providing distance education. 5 Sec. 78. Section 261G.2, subsection 1, Code 2018, is amended 6 by striking the subsection. 7 Sec. 79. Section 261G.2, subsection 2, Code 2018, is amended 8 to read as follows: 9 2. “Interstate reciprocity agreement” means an interstate 10 reciprocity agreement entered into and administered, or 11 recognized, by the commission treasurer of state in accordance 12 with section 261.2, subsection 12 . 13 Sec. 80. Section 261G.2, subsection 5, paragraph d, Code 14 2018, is amended to read as follows: 15 d. A school or postsecondary educational institution that 16 voluntarily registers with the commission treasurer of state 17 pursuant to section 261B.11B in order to comply with this 18 chapter or for purposes of institutional eligibility under 34 19 C.F.R. §600.9(a) . 20 Sec. 81. Section 261G.3, Code 2018, is amended to read as 21 follows: 22 261G.3 Execution of duties. 23 The commission treasurer of state shall only enter into 24 or recognize an interstate reciprocity agreement if the 25 agreement contains sufficient consumer protection provisions 26 and is otherwise in the best interests of students enrolled in 27 institutions of higher education in this state. 28 Sec. 82. Section 261G.4, subsections 3 and 4, Code 2018, are 29 amended to read as follows: 30 3. A participating institution offering instructional 31 programs or courses under an interstate reciprocity agreement 32 entered into or recognized by the commission treasurer of state 33 must notify the commission treasurer of state of any change 34 of status relating in any way to the interstate reciprocity 35 -42- LSB 5745YH (7) 87 kh/jh 42/ 59
H.F. 2322 agreement. 1 4. This chapter shall not be construed to prevent the 2 commission treasurer of state or the state from requiring 3 a school or other postsecondary educational institution to 4 register under chapter 261B or from taking enforcement action 5 against a participating institution in any of the following 6 circumstances: 7 a. A participating nonresident institution leaves or 8 otherwise ceases to be a member in good standing in an 9 interstate reciprocity agreement. 10 b. The participating institution is physically or 11 administratively housed in a state that does not join or ceases 12 to be a member in good standing in an interstate reciprocity 13 agreement entered into or recognized by the commission 14 treasurer of state . 15 c. The discovery of acts or omissions subject to the 16 enforcement action but which occurred prior to the commission’s 17 treasurer of state’s entering into or recognizing an interstate 18 reciprocity agreement. 19 Sec. 83. Section 261G.5, subsection 1, Code 2018, is amended 20 to read as follows: 21 1. The commission treasurer of state shall set by rule and 22 collect a nonrefundable initial registration fee and a renewal 23 of registration fee from each participating institution that 24 voluntarily registers with the commission treasurer of state 25 pursuant to section 261B.11B in order to comply with this 26 chapter or for purposes of institutional eligibility under 34 27 C.F.R. §600.9(a) . 28 Sec. 84. Section 262.9, subsection 23, Code 2018, is amended 29 to read as follows: 30 23. Direct the administration of the Iowa minority academic 31 grants for economic success program as established in section 32 261.101 262.83 for the institutions under its control. 33 Sec. 85. Section 262.82, subsection 3, Code 2018, is amended 34 to read as follows: 35 -43- LSB 5745YH (7) 87 kh/jh 43/ 59
H.F. 2322 3. As used in this section , “minority educator” means an 1 educator who is a minority person as defined in section 261.102 2 262.83 . 3 Sec. 86. NEW SECTION . 262.83 Minority academic grants for 4 economic success. 5 1. The general assembly finds that the failure of many young 6 Iowans to complete their education limits their opportunity 7 for a life of fulfillment and hinders the state’s efforts to 8 provide a well-trained workforce for business and industry 9 in Iowa. The general assembly also declares that it is the 10 policy of this state to apply positive measures to ensure 11 that equal opportunities exist for minority persons to 12 pursue their educational goals. Therefore, the Iowa minority 13 academic grants for economic success program is established 14 to be administered by the state board of regents to provide 15 additional funding to the state board of regents institutions, 16 community colleges, and accredited private institutions in 17 order to encourage resident minority students to remain in 18 Iowa, to attend community colleges, private colleges, and 19 universities in Iowa, and to assure that a limited family 20 income will not be a barrier for a minority person to pursue a 21 postsecondary education. 22 2. As used in this section, unless the context otherwise 23 requires: 24 a. “Accredited private institution” means an accredited 25 private institution as defined in section 261.1. 26 b. “Financial need” means the difference between the 27 student’s financial resources, including resources available 28 from the student’s parents and the student, as determined 29 by a completed parents’ financial statement and including 30 any noncampus-administered federal or state grants and 31 scholarships, and the student’s estimated expenses while 32 attending the institution. A student shall accept all 33 available federal and state grants and scholarships before 34 being considered eligible for grants under the Iowa minority 35 -44- LSB 5745YH (7) 87 kh/jh 44/ 59
H.F. 2322 academic grants for economic success program. Financial need 1 shall be reconsidered on at least an annual basis. 2 c. “Full-time student” means an individual who is enrolled 3 at an accredited private institution, community college, or 4 board of regents university for at least twelve semester hours 5 or the equivalent. 6 d. “Minority person” means an individual who is African 7 American, Hispanic, Asian, or a Pacific Islander, an American 8 Indian, or an Alaskan Native American. 9 e. “Part-time student” means an individual who is enrolled 10 at an accredited private institution, community college, or 11 board of regents university in a course of study including at 12 least three semester hours or the equivalent. 13 f. “Program” means the Iowa minority academic grants for 14 economic success program established in this section. 15 3. A grant under the program may be awarded to any 16 minority person who is a resident of Iowa, who is accepted 17 for admission or is attending a board of regents university, 18 community college, or an accredited private institution, and 19 who demonstrates financial need. 20 4. Full-time students may receive grants for not more than 21 eight semesters of undergraduate study or the equivalent of 22 eight semesters of undergraduate study. Part-time students 23 may receive grants for not more than sixteen semesters of 24 undergraduate study or the equivalent. 25 5. The amount of the grant shall not exceed a student’s 26 yearly financial need or three thousand five hundred dollars, 27 whichever is less. If the student is attending or seeking to 28 enroll in an accredited private institution, fifty percent of 29 the amount of the grant shall be provided by the accredited 30 private institution and fifty percent shall be provided by the 31 state board of regents from state funds appropriated for that 32 purpose. 33 6. Grants shall be awarded on an annual basis and shall 34 be credited by the institution against the student’s tuition, 35 -45- LSB 5745YH (7) 87 kh/jh 45/ 59
H.F. 2322 fees, room, and board, at the beginning of each semester, or 1 the equivalent, in equal installments upon certification by 2 the institution that the student is admitted and attending the 3 institution. 4 7. If a student receiving a grant under the program 5 discontinues attendance before the end of any academic period, 6 but after receiving payment of grant moneys for the academic 7 period, the entire amount of any refund due the student, up to 8 the amount of any payments made by the state, shall be remitted 9 by the private institution to the state board of regents. 10 8. In administering the program for the community colleges 11 and the private institutions, the state board of regents shall 12 do all of the following: 13 a. Provide application forms to students enrolled and 14 attending or seeking to enroll and attend community colleges or 15 accredited private institutions. 16 b. Develop and provide confidential financial statement 17 forms to the parents or guardians of students applying for 18 grants under the program. 19 c. Approve and award grants to community colleges and 20 accredited private institutions under the program. 21 d. Adopt rules for determining financial need and residency 22 for the purpose of awarding grants to qualified students, 23 and any other rules necessary for the administration of the 24 program. 25 e. Report annually to the governor and the general assembly 26 on the progress and implementation of the program. 27 f. Require postsecondary institutions that receive moneys 28 from students awarded grants under the program to furnish any 29 information necessary for the implementation or administration 30 of the program. 31 g. Solicit and receive private contributions and federal 32 grants available for purposes of the program. 33 h. Maintain records on the recipients of grants awarded 34 under this section. 35 -46- LSB 5745YH (7) 87 kh/jh 46/ 59
H.F. 2322 i. Administer funds appropriated for the Iowa minority 1 academic grants for economic success program to carry out the 2 duties of the state board of regents. 3 j. Provide for the proration of funds among qualified 4 applicants if funds available are insufficient to pay all 5 approved grants. 6 9. An applicant for a grant under the program shall do all 7 of the following: 8 a. Complete and file an application for a grant on forms 9 provided by the state board of regents. 10 b. Submit the financial information required for evaluation 11 of the applicant’s financial need for a grant. 12 c. Comply with rules and information requests of the state 13 board of regents made in relation to the program. 14 Sec. 87. Section 262.92, subsections 2 and 3, Code 2018, are 15 amended to read as follows: 16 2. The board of regents shall establish a voucher program 17 for students in grades seven through twelve. Vouchers may be 18 obtained by any qualified secondary student at any regents’ 19 university upon completion of a college-bound program provided 20 under subsection 1 . Students may receive one voucher for each 21 program. One or more vouchers entitle a student to priority 22 over other persons applying for grants under the Iowa minority 23 academic grants for economic success program established in 24 section 261.101 261.83 . Vouchers shall be submitted with the 25 grant application within one year after a student graduates 26 from high school at any higher education institution which 27 offers grants under the Iowa minority academic grants for 28 economic success program. Vouchers earned can only be used 29 by the person who participated in the college-bound voucher 30 program and are not transferable. Vouchers issued by a 31 university under this program shall be signed by the president 32 of the university. 33 3. The board of regents shall adopt rules to establish 34 program guidelines for the universities under the board’s 35 -47- LSB 5745YH (7) 87 kh/jh 47/ 59
H.F. 2322 control and for the administration and coordination of program 1 efforts. Rules adopted shall include methods of recording data 2 relating to voucher recipients and making the data available to 3 the college student aid commission treasurer of state . 4 Sec. 88. Section 262.93, Code 2018, is amended to read as 5 follows: 6 262.93 Reports to general assembly. 7 The college student aid commission and the state board of 8 regents each shall submit to the general assembly, by January 9 15 of each year, a report on the progress and implementation of 10 the programs which they administer administered by the state 11 board of regents under sections 261.102 through 261.105 262.82, 12 262.83, and 262.92 . By January 31 of each year, the state 13 board of regents shall submit a report to the general assembly 14 regarding the progress and implementation of the program 15 administered pursuant to section 262.82 . The reports report 16 shall include but are not limited to the numbers of students 17 and educators participating in the programs and allocation of 18 funds appropriated for the programs. 19 Sec. 89. Section 522B.11, subsection 1, paragraph n, Code 20 2018, is amended to read as follows: 21 n. Failing to comply with an administrative or court order 22 related to repayment of loans to the college student aid 23 commission treasurer of state . 24 Sec. 90. Section 522D.7, subsection 1, paragraph m, Code 25 2018, is amended to read as follows: 26 m. Failing to comply with an administrative or court order 27 related to repayment of loans to the college student aid 28 commission treasurer of state . 29 Sec. 91. REPEAL. Sections 261.1, 261.20, 261.101, 261.102, 30 261.103, 261.104, 261.105, 261.121, 261.122, 261.123, 261.124, 31 261.125, 261.126, and 261.127, Code 2018, are repealed. 32 DIVISION II 33 POSTSECONDARY REGISTRATION —— TRANSFER OF DUTIES 34 Sec. 92. Section 261B.2, subsection 1, Code 2018, is amended 35 -48- LSB 5745YH (7) 87 kh/jh 48/ 59
H.F. 2322 by striking the subsection. 1 Sec. 93. Section 261B.3, Code 2018, is amended to read as 2 follows: 3 261B.3 Registration. 4 1. Except as provided in section 261B.11 , a school shall 5 register with the commission treasurer of state if a person 6 compensated by the school conducts any portion of a course of 7 instruction in this state or if the school otherwise has a 8 presence in this state. 9 a. Registrations shall be renewed every two years and shall 10 be amended upon any substantive change in location, program 11 offering, or accreditation. A school makes a substantive 12 change in a program offering when the school proposes to offer 13 or modify a program that requires the approval of the state 14 board of education or any other state agency authorized to 15 approve the school or its program in this state. 16 b. Registration shall be made on application forms approved 17 and made available by the commission treasurer of state and 18 at the time and in the manner prescribed by the commission 19 treasurer of state . 20 2. The commission treasurer of state may require a school 21 to provide additional information the commission treasurer of 22 state deems necessary to evaluate a school’s suitability for 23 registration. 24 3. The commission treasurer of state shall notify a school 25 in writing of its decision to grant or deny registration and 26 any stipulation associated with the school’s registration. 27 4. If a school fails to meet any of the registration 28 criteria, or if the commission treasurer of state believes 29 that false, misleading, or incomplete information has been 30 submitted in connection with an application for registration, 31 the commission treasurer of state may deny registration. The 32 commission treasurer of state shall conduct a hearing on the 33 denial if a hearing is requested by a school. Upon a finding 34 after the hearing that the school fails to meet any of the 35 -49- LSB 5745YH (7) 87 kh/jh 49/ 59
H.F. 2322 registration criteria, or that information contained in the 1 registration application is false, misleading, or incomplete, 2 the commission treasurer of state shall deny registration. The 3 commission treasurer of state shall make the final decision on 4 each registration. However, the decision of the commission 5 treasurer of state is subject to judicial review in accordance 6 with section 17A.19 . 7 5. The commission treasurer of state shall adopt rules under 8 chapter 17A for the implementation of this chapter . 9 Sec. 94. Section 261B.3A, subsections 1, 2, and 3, Code 10 2018, are amended to read as follows: 11 1. In order to register, a school shall be accredited 12 by an agency or organization approved or recognized by the 13 United States department of education or a successor agency, 14 be approved by any other state agency authorized to approve 15 the school in this state, and, subsequently, be approved for 16 operation by the commission treasurer of state . 17 2. A practitioner preparation program, as defined in 18 section 272.1 , operated by a school that applies to register 19 the program in accordance with this chapter shall, in order to 20 register, be accredited by an agency or organization approved 21 or recognized by the United States department of education or a 22 successor agency, be approved by the state board of education 23 pursuant to section 256.7, subsection 3 , and, subsequently, be 24 approved for operation by the commission treasurer of state . 25 3. The commission treasurer of state may grant a provisional 26 registration to a school that is not accredited by an agency or 27 organization that is recognized by the United States department 28 of education or its successor agency. The commission treasurer 29 of state shall determine the duration of the provisional 30 registration. During the provisional registration period, the 31 school shall, at six-month intervals, submit to the commission 32 treasurer of state documentation of its progress toward 33 achieving accreditation. The commission treasurer of state may