House Study Bill 94 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED COLLEGE STUDENT AID COMMISSION BILL) 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 1195DP (7) 87 kh/jh/rj

S.F. _____ H.F. _____ 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 education 23 or its successor agency while the school is seeking authority 24 to provide programs under that accreditation at a location in 25 this state . The commission shall determine the duration of the 26 provisional registration. During the provisional registration 27 period, the school shall, at six-month intervals, submit to 28 the commission documentation of its progress toward achieving 29 accreditation receiving authorization . The commission may 30 renew the school’s provisional registration at its discretion 31 if the documentation submitted indicates that the school is 32 making progress toward accreditation authorization . 33 Sec. 3. Section 261B.6, Code 2017, is amended to read as 34 follows: 35 -1- LSB 1195DP (7) 87 kh/jh/rj 1/ 4

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

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

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