H.F. 2385 Section 1. Section 84A.6, subsection 4, Code 2018, is 1 amended by striking the subsection. 2 Sec. 2. Section 261.130, Code 2018, is amended to read as 3 follows: 4 261.130 Skilled workforce shortage Community college tuition 5 grant program. 6 1. A skilled workforce shortage community college tuition 7 grant may be awarded to any resident of Iowa who is admitted 8 and in attendance as a full-time or part-time student in 9 a career-technical or career option program to pursue an 10 associate’s associate degree or other training credential at a 11 community college in the state, and who establishes financial 12 need. 13 2. Skilled workforce shortage tuition grants shall be 14 awarded only to students pursuing a career-technical or career 15 option program in an industry identified as having a shortage 16 of skilled workers by a community college after conducting a 17 regional skills gap analysis or by the department of workforce 18 development in the department’s most recent quarterly report 19 pursuant to section 84A.6, subsection 4 . To qualify for a 20 community college tuition grant, an individual must meet all of 21 the following conditions: 22 a. Have achieved a cumulative high school grade point 23 average upon graduation of at least two on a four-point grade 24 scale, or its equivalent if another grade scale is used. 25 However, if the individual is an adult learner or cannot 26 otherwise provide evidence of meeting the required cumulative 27 grade point average, the individual, prior to receiving a 28 grant under this program, must enroll at least part time for 29 one semester, or the equivalent, in a program of study at a 30 community college and maintain satisfactory academic progress 31 during the semester, or the equivalent, as defined by the 32 community college. 33 b. Enter into an agreement with the college student aid 34 commission in which the qualified student agrees to reside and 35 -1- LSB 5743YH (7) 87 kh/jh 1/ 6

H.F. 2385 be employed in this state within six months after receiving a 1 credential or associate degree from a community college under 2 this program. The agreement shall require repayment of the 3 total grant amount awarded to the grant recipient, in whole 4 or in part, if the grant recipient chooses to reside or be 5 employed outside of the state within the three-year period 6 following obtainment of the credential or associate degree for 7 which the grant was awarded. However, the commission shall not 8 require a grant recipient to repay any grant amount received 9 unless the individual was informed of the three-year residency 10 and employment requirement in writing before initial acceptance 11 of the grant awarded under this section. 12 3. The amount of a skilled workforce shortage community 13 college tuition grant shall not exceed the lesser of one-half 14 of a student’s tuition and mandatory fees for an approved 15 career-technical or career option a program leading to a 16 credential or associate degree or the amount of the student’s 17 established financial need. 18 4. All classes identified by the community college 19 as required for completion of the student’s approved 20 career-technical or career option program shall be considered a 21 part of the student’s career-technical or career option program 22 for the purpose of determining the student’s eligibility 23 for a grant. Notwithstanding subsection 5 , if a student is 24 making satisfactory academic progress but the student cannot 25 complete a career-technical or career option the program in 26 the time frame allowed for a student to receive a skilled 27 workforce shortage community college tuition grant as provided 28 in subsection 5 because additional classes are required to 29 complete the program, the student may continue to receive a 30 skilled workforce shortage tuition grant extension for not 31 more than one additional enrollment period semester, or the 32 equivalent . 33 5. a. A Except as provided in subsection 4, a qualified 34 full-time student may receive skilled workforce shortage 35 -2- LSB 5743YH (7) 87 kh/jh 2/ 6

H.F. 2385 community college tuition grants for not more than four 1 semesters or the trimester or quarter equivalent of two full 2 years of study. A qualified part-time student enrolled in a 3 course of study including at least three semester hours but 4 fewer than twelve semester hours , or the trimester or quarter 5 equivalent , may receive skilled workforce shortage community 6 college tuition grants for not more than eight semesters or the 7 trimester or quarter equivalent of two full years of full-time 8 study. 9 b. However, if a student resumes study after at least a 10 two-year absence, the student may again be eligible for the 11 specified amount of time, except that the student shall not 12 receive assistance for courses for which credit was previously 13 received. 14 6. A skilled workforce shortage community college 15 tuition grant shall be awarded on an annual basis, requiring 16 reapplication by the student for each year. Payments under 17 the grant shall be allocated equally among the semesters or 18 quarters , or the equivalent, of the year upon certification 19 by the community college that the student is in full-time or 20 part-time attendance in a career-technical or career option 21 program consistent with the requirements of this section . If 22 the student discontinues attendance before the end of any term 23 after receiving payment of the grant, the entire amount of any 24 refund due that student, up to the amount of any payments made 25 under the annual grant, shall be paid by the community college 26 to the state. 27 7. If a student receives financial aid under any other 28 program, the full amount of that financial aid shall be 29 considered part of the student’s financial resources available 30 in determining the amount of the student’s financial need for 31 that period. 32 8. a. The college student aid commission may defer the 33 residency or three-year employment requirement of the agreement 34 entered into pursuant to subsection 2, paragraph “b” , under 35 -3- LSB 5743YH (7) 87 kh/jh 3/ 6

H.F. 2385 either of the following circumstances: 1 (1) In consultation with the department of workforce 2 development, the commission determines that there are no 3 employment positions available that would reasonably allow the 4 grant recipient to meet the requirements of the agreement. 5 (2) The commission determines that special circumstances 6 exist. 7 b. If the commission authorizes a period of deferment 8 under this subsection that ends on a date certain, the grant 9 recipient shall begin or resume employment or residency in 10 this state, as appropriate, or become subject to repayment as 11 provided in paragraph “c” . 12 c. The written agreement under subsection 2, paragraph “b” , 13 shall provide that if the grant recipient fails to meet the 14 residency or employment requirements and the grant recipient is 15 not granted a period of deferment under this subsection, the 16 grant converts into a loan and the grant recipient shall repay 17 the total grant amount received based on one of the following 18 options, as determined by the commission: 19 (1) On a pro rata basis at an interest rate and on a 20 schedule as determined by the commission for each year the 21 grant recipient does not meet the residency or employment 22 requirements of the agreement and this section. 23 (2) In its entirety at an interest rate and on a schedule as 24 determined by the commission. 25 8. 9. The commission shall administer this program and 26 shall: 27 a. Provide application forms for distribution to students by 28 Iowa high schools and community colleges. 29 b. Adopt rules for approving career-technical or career 30 option programs in industries identified by the department of 31 workforce development pursuant to section 84A.6, subsection 4 32 programs for which grants may be awarded under this section ; 33 determining financial need; defining residence and employment 34 for the purposes of this section ; processing and approving 35 -4- LSB 5743YH (7) 87 kh/jh 4/ 6

H.F. 2385 applications for grants; and determining priority for grants. 1 c. Approve and award grants on an annual basis. 2 d. Make an annual report to the governor and general 3 assembly. The report shall include the number of students 4 receiving assistance , the number of grant recipients who earn a 5 credential or associate degree and are meeting the terms of the 6 agreements entered into pursuant to subsection 2, the number 7 of grant recipients receiving deferrals, and the industries 8 identified by the community colleges and by the department of 9 workforce development pursuant to section 84A.6, subsection 10 4 , for which students were admitted to a career-technical 11 or career option program commission’s recommendations for 12 modifications to the program . 13 9. 10. Each applicant, in accordance with the rules 14 established by the commission, shall: 15 a. Complete and file an application for a skilled workforce 16 shortage community college tuition grant. 17 b. Be responsible for the submission of the financial 18 information required for evaluation of the applicant’s need for 19 a grant, on forms determined by the commission. 20 c. Report promptly to the commission any information 21 requested. 22 d. Submit a new application for reevaluation of the 23 applicant’s eligibility to receive a second-year renewal of the 24 grant. 25 Sec. 3. COLLEGE STUDENT AID COMMISSION. There is 26 appropriated from the general fund of the state to the college 27 student aid commission for the fiscal year beginning July 1, 28 2018, and ending June 30, 2019, the following amount, or so 29 much thereof as is necessary, to be used for the purposes 30 designated: 31 For the community college tuition grant program established 32 in section 261.130, as amended by this Act, if enacted: 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 36,000,000 34 EXPLANATION 35 -5- LSB 5743YH (7) 87 kh/jh 5/ 6

H.F. 2385 The inclusion of this explanation does not constitute agreement with 1 the explanation’s substance by the members of the general assembly. 2 This bill modifies the skilled workforce shortage tuition 3 grant program administered by the college student aid 4 commission by changing the name of the program to the community 5 college tuition grant program, changing the requirements for 6 qualification, requiring the student to enter into an agreement 7 with the commission, and providing that the grant pays the 8 lesser of the student’s tuition and mandatory fees for not more 9 than the equivalent of two full years of study at a community 10 college, or the amount of the student’s financial need for that 11 period. The bill appropriates $36 million from the general 12 fund of the state for FY 2018-2019 to the college student aid 13 commission for the program. 14 Under the bill, the students may pursue an associate degree 15 or other credential at a community college, and are not limited 16 to enrollment in approved career-technical or career option 17 program. 18 The bill requires that students enter the program with a 19 minimum cumulative grade point average of 2.0 on a 4.0 scale. 20 If a student cannot provide evidence of a satisfactory grade 21 point average, prior to receiving a grant under the program, 22 the student must attend the community college at least part 23 time for one semester and maintain satisfactory academic 24 progress. 25 Qualified students must enter into an agreement to reside 26 and be employed in the state for three years after receiving a 27 credential from the community college. If a grant recipient 28 fails to meet the residency or employment requirements of the 29 agreement, the total grant amount, in whole or in part, becomes 30 a loan. However, the commission may defer the residency or 31 employment requirements if the commission finds there are no 32 employment opportunities for the grant recipient or special 33 circumstances exist. The bill makes a conforming change. 34 -6- LSB 5743YH (7) 87 kh/jh 6/ 6