House File 561 - Introduced HOUSE FILE 561 BY COMMITTEE ON EDUCATION (SUCCESSOR TO HSB 94) A BILL FOR An Act relating to the registration of postsecondary schools by 1 the college student aid commission and student eligibility 2 for state student financial aid programs. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1195HV (2) 87 kh/jh/rj

H.F. 561 Section 1. Section 261B.3, subsection 4, Code 2017, is 1 amended to read as follows: 2 4. If a school fails to meet any of the registration 3 criteria, or if the commission believes that false, misleading, 4 or incomplete information has been submitted in connection with 5 an application for registration, or if the school has engaged 6 in conduct prohibited under section 261B.13, the commission 7 may deny , suspend, or revoke registration and the school shall 8 not operate in Iowa or otherwise offer its programs to Iowa 9 residents . The commission shall conduct a hearing on the 10 denial if a hearing is requested by a school. Upon a finding 11 after the hearing that the school fails to meet any of the 12 registration criteria, or that information contained in the 13 registration application is false, misleading, or incomplete, 14 the commission shall deny registration. The commission shall 15 make the final decision on each registration. However, the 16 decision of the commission is subject to judicial review in 17 accordance with section 17A.19 . 18 Sec. 2. Section 261B.3A, subsection 3, Code 2017, is amended 19 to read as follows: 20 3. The commission may grant a provisional registration to 21 a school that is not accredited by an agency or organization 22 that is recognized by the United States department of 23 education or its successor agency while the school is seeking 24 authority to provide programs under that accreditation at 25 a location in this state . The commission shall determine 26 the duration of the provisional registration , not to exceed 27 two years . During the provisional registration period, the 28 school shall, at six-month intervals, submit to the commission 29 documentation of its progress toward achieving accreditation 30 receiving authorization . The commission may renew the school’s 31 provisional registration at its discretion if the documentation 32 submitted indicates that the school is making progress toward 33 accreditation authorization . 34 Sec. 3. Section 261B.6, Code 2017, is amended to read as 35 -1- LSB 1195HV (2) 87 kh/jh/rj 1/ 4

H.F. 561 follows: 1 261B.6 List of schools. 2 The commission shall maintain a list of registered schools 3 and the list and the information submitted under sections 4 261B.3 and 261B.4 this chapter are public records under chapter 5 22 . 6 Sec. 4. Section 261B.9, unnumbered paragraph 1, Code 2017, 7 is amended to read as follows: 8 Prior to the commencement of a course of instruction and 9 prior to the receipt of a tuition charge or fee for a course 10 of instruction, a school shall provide written disclosure 11 to students of the following information accompanied by a 12 statement that the information is being provided in compliance 13 with this section : 14 Sec. 5. Section 261B.11A, Code 2017, is amended to read as 15 follows: 16 261B.11A Ineligibility for state student aid programs. 17 1. Students attending schools required to register under 18 this chapter are ineligible for state student financial aid 19 programs established under chapter 261 . This subsection does 20 not apply to students attending a for-profit accredited private 21 institution as defined in section 261.25, subsection 2. 22 2. A school required to register under this chapter that 23 is prohibited from offering state aid or advertising shall not 24 advertise that state aid is or may be available to students 25 attending the school. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill relates both to a requirement that certain 30 postsecondary schools register with and be approved by the 31 college student aid commission, and to student eligibility for 32 state student financial aid programs. 33 Code chapter 261B requires certain postsecondary schools 34 to register with the commission in order to operate in 35 -2- LSB 1195HV (2) 87 kh/jh/rj 2/ 4

H.F. 561 Iowa or otherwise offer its programs to Iowa residents. 1 Currently, the commission may deny registration and the 2 authorization to operate in Iowa to a school that fails to 3 meet registration criteria or provides false, misleading, or 4 incomplete information in connection with its application 5 for registration. The bill authorizes the commission to 6 also deny, suspend, or revoke a school’s registration if 7 the school engaged in conduct prohibited under Code section 8 261B.13. Currently, Code section 261B.13 prohibits a 9 postsecondary school from operating in this state if the 10 school does not qualify for an exemption and is not accredited 11 by an accrediting agency recognized by the U.S. department 12 of education. Code section 261B.13 also prohibits a school 13 that is registered or otherwise authorized to operate in this 14 state from entering into an agreement to conduct a course of 15 instruction, confer a degree, or conduct any other aspect of 16 its operation with another school that is in violation of the 17 Code section. 18 The bill authorizes the commission to grant provisional 19 registration for not more than two years to a school if the 20 school is accredited elsewhere and is seeking the authorization 21 of the accrediting agency or organization to provide programs 22 in Iowa under that accreditation. 23 Under the bill, lists and information submitted under the 24 Code chapter are public records. The bill strikes a provision 25 requiring approved schools to include on written disclosures 26 provided to students, prior to the commencement of classes and 27 receipt of tuition or fees, a statement that the information 28 disclosed is provided in compliance with Code section 261B.9. 29 A Code provision making students who are attending schools 30 that are required to register with the commission ineligible 31 for state student financial aid programs is, under the bill, 32 inapplicable to students attending a for-profit accredited 33 private institution, as defined for purposes of the Iowa 34 tuition grant. 35 -3- LSB 1195HV (2) 87 kh/jh/rj 3/ 4

H.F. 561 Currently, a school required to register with the commission 1 is prohibited from offering state aid or advertising that state 2 aid is or may be available to students attending the school. 3 The bill provides that a school which is required to register 4 with the commission and is prohibited from offering state aid 5 shall not advertise that state aid is or may be available to 6 students attending the school. 7 -4- LSB 1195HV (2) 87 kh/jh/rj 4/ 4