House File 2038 - Introduced HOUSE FILE 2038 BY STONE A BILL FOR An Act relating to matters under the purview of the college 1 student aid commission, including accredited private 2 institutions and eligible institutions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5203YH (2) 89 jda/jh

H.F. 2038 Section 1. Section 261.9, subsection 1, unnumbered 1 paragraph 1, Code 2022, is amended to read as follows: 2 “Accredited private institution” means an institution of 3 higher learning located in Iowa which is operated privately 4 and not controlled or administered by any state agency or 5 any subdivision of the state and which meets the criteria in 6 paragraphs “a” and “b” and all of the criteria in paragraphs 7 “d” through “i” , except that institutions defined in paragraph 8 paragraphs “c” and “0c” of this subsection are exempt from the 9 requirements of paragraphs “a” and “b” : 10 Sec. 2. Section 261.9, subsection 1, Code 2022, is amended 11 by adding the following new paragraph: 12 NEW PARAGRAPH . 0c. Is accredited by the higher learning 13 commission and which, effective January 8, 2010, purchased an 14 accredited private institution that was exempt from taxation 15 under section 501(c) of the Internal Revenue Code, or whose 16 students were eligible to receive tuition grants in the fiscal 17 year beginning July 1, 2003. The institution shall annually 18 provide a matching aggregate amount of institutional financial 19 aid which shall increase by the percentage of increase each 20 fiscal year of funds appropriated for Iowa tuition grants 21 under section 261.25, subsection 2, to a maximum match of one 22 hundred percent as initiated under section 261.9, subsection 1, 23 paragraph “b” , Code 2005. 24 Sec. 3. Section 261.9, subsection 3, Code 2022, is amended 25 to read as follows: 26 3. “Eligible institution” means an institution of higher 27 learning located in Iowa which is operated privately and 28 not controlled or administered by any state agency or any 29 subdivision of the state, which is not exempt from taxation 30 under section 501(c)(3) of the Internal Revenue Code, and 31 which meets all of the criteria in subsection 1 , paragraphs 32 “d” through “i” , and the criteria in paragraphs “a” or “b” as 33 follows: 34 a. Is accredited by the higher learning commission and 35 -1- LSB 5203YH (2) 89 jda/jh 1/ 4

H.F. 2038 which, effective January 8, 2010, purchased an accredited 1 private institution that was exempt from taxation under section 2 501(c) of the Internal Revenue Code , or whose students were 3 eligible to receive tuition grants in the fiscal year beginning 4 July 1, 2003. The eligible institution shall annually provide 5 a matching aggregate amount of institutional financial aid 6 which shall increase by the percentage of increase each 7 fiscal year of funds appropriated for Iowa tuition grants 8 under section 261.25, subsection 2 , to a maximum match of one 9 hundred percent as initiated under section 261.9, subsection 1 , 10 paragraph “b” , Code 2005. 11 b. Is which is a barber school licensed under section 12 158.7 or a school of cosmetology arts and sciences licensed 13 under chapter 157 and is accredited by a national accrediting 14 agency recognized by the United States department of education. 15 For the fiscal year beginning July 1, 2017, an eligible 16 institution under this paragraph subsection shall provide a 17 matching aggregate amount of institutional financial aid equal 18 to at least seventy-five percent of the amount received by 19 the institution’s students for Iowa tuition grant assistance 20 under section 261.16A . For the fiscal year beginning July 21 1, 2018, the institution shall provide a matching aggregate 22 amount of institutional financial aid equal to at least 23 eighty-five percent of the amount received in that fiscal year. 24 Commencing with the fiscal year beginning July 1, 2019, and 25 each succeeding fiscal year, the matching aggregate amount of 26 institutional financial aid shall be at least equal to the 27 match provided by eligible institutions an accredited private 28 institution under subsection 1, paragraph “a” “0c” . 29 Sec. 4. Section 261.16A, subsection 2, Code 2022, is amended 30 to read as follows: 31 2. Extent of grant. 32 a. A qualified full-time resident student enrolled in an 33 eligible institution that meets the criteria of section 261.9, 34 subsection 3 , paragraph “a” , may receive tuition grants for 35 -2- LSB 5203YH (2) 89 jda/jh 2/ 4

H.F. 2038 not more than eight semesters of undergraduate study or the 1 equivalent; a qualified part-time resident student enrolled 2 in the eligible institution may receive tuition grants for 3 not more than sixteen semesters of undergraduate study or the 4 equivalent. 5 b. A qualified full-time resident student enrolled in an 6 eligible institution that meets the criteria of section 261.9, 7 subsection 3 , paragraph “b” , may receive tuition grants for not 8 more than four semesters or the equivalent of two full years 9 of study. However, if a student resumes study after at least 10 a 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 Sec. 5. Section 261.25, subsection 2, Code 2022, is amended 15 to read as follows: 16 2. There is appropriated from the general fund of the 17 state to the commission for each fiscal year the sum of four 18 one hundred fifty-six thousand two hundred twenty dollars for 19 tuition grants for qualified students who are enrolled in an 20 eligible institutions institution . Of the moneys appropriated 21 under this subsection , not more than one hundred thousand 22 dollars annually shall be used for tuition grants to qualified 23 students who are attending an eligible institution under 24 section 261.9, subsection 3 , paragraph “b” . 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 to matters under the purview of the 29 college student aid commission, including accredited private 30 institutions and eligible institutions. 31 The bill removes from the definition of “eligible 32 institution” an institution of higher learning located in Iowa 33 which is operated privately and not controlled or administered 34 by any state agency or any subdivision of the state, which 35 -3- LSB 5203YH (2) 89 jda/jh 3/ 4

H.F. 2038 is not exempt from taxation under section 501(c)(3) of the 1 Internal Revenue Code, and which meets all of the criteria in 2 Code section 261.9, subsection 1, paragraphs “d” through “i”, 3 and is accredited by the higher learning commission and which, 4 effective January 8, 2010, purchased an accredited private 5 institution that was exempt from taxation under section 501(c) 6 of the Internal Revenue Code, or whose students were eligible 7 to receive tuition grants in the fiscal year beginning July 1, 8 2003. The bill relocates this variety of institution into the 9 definition of “accredited private institution”. Pursuant to 10 Code chapter 261, tuition grants are made available to certain 11 students who attend accredited private institutions or eligible 12 institutions. 13 The bill makes conforming changes. 14 -4- LSB 5203YH (2) 89 jda/jh 4/ 4