House Study Bill 542 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED COLLEGE STUDENT AID COMMISSION BILL) A BILL FOR An Act relating to schools that are required to register with 1 the college student aid commission. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5238DP (2) 89 jda/jh
S.F. _____ H.F. _____ Section 1. Section 261B.4, subsection 4, Code 2022, is 1 amended to read as follows: 2 4. The refund policy of the school for the return of 3 refundable portions of tuition, fees, or other charges. 4 The tuition refund policy for Iowa resident students of a 5 for-profit school with at least one program of more than four 6 months in length that leads that offers a course of instruction 7 leading to a recognized educational credential, such as an 8 academic or professional degree, diploma, or license, must 9 comply with section 714.23 . 10 Sec. 2. Section 261B.11, subsection 1, paragraph f, Code 11 2022, is amended by striking the paragraph and inserting in 12 lieu thereof the following: 13 f. A community college established under chapter 260C or an 14 institution of higher learning under the control of the board 15 of regents. 16 Sec. 3. Section 261B.11, subsection 1, paragraphs n and o, 17 Code 2022, are amended by striking the paragraphs. 18 Sec. 4. Section 261B.11, subsection 2, paragraph b, Code 19 2022, is amended to read as follows: 20 b. A for-profit school with at least one program of more 21 than four months in length that leads that offers a course of 22 instruction leading to a recognized educational credential, 23 such as an academic or professional degree, diploma, or 24 license, must submit to the commission a tuition refund policy 25 that meets the conditions of section 714.23 . 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 to schools that are required to register 30 with the college student aid commission. 31 The bill requires that the tuition refund policy for Iowa 32 resident students of a for-profit school governed by Code 33 chapter 261B that offers a course of instruction leading to a 34 recognized educational credential must comply with Code section 35 -1- LSB 5238DP (2) 89 jda/jh 1/ 2
S.F. _____ H.F. _____ 714.23, which provides standards for refund policies and 1 penalties for violating those standards. A violation of Code 2 section 714.23 is a simple misdemeanor. A simple misdemeanor 3 is punishable by confinement for no more than 30 days and a 4 fine of at least $105 but not more than $855. The bill requires 5 the school to submit the refund policy to the college student 6 aid commission. 7 Under current law, the provisions of Code chapter 261B 8 do not apply to colleges and universities authorized by the 9 laws of this state to grant degrees. The bill strikes this 10 exception and replaces it with an exception for community 11 colleges established under Code chapter 260C and institutions 12 of higher learning under the control of the board of regents. 13 Additionally, under current law, the provisions of Code 14 chapter 261B do not apply to either a postsecondary educational 15 institution established in Bettendorf in 1969 to prepare 16 students for the federal communications commission radio 17 broadcasting examination or a school of religious study located 18 in Iowa that was established in Spain in 1982, is affiliated 19 with the department of global missions of open bible churches, 20 grants bachelor’s degrees, and is accredited by a nationally 21 recognized accrediting agency. The bill strikes these 22 exceptions. 23 -2- LSB 5238DP (2) 89 jda/jh 2/ 2