House File 421 - Introduced HOUSE FILE 421 BY COMMITTEE ON EDUCATION (SUCCESSOR TO HF 186) A BILL FOR An Act relating to the Iowa tuition grants program administered 1 by the college student aid commission and including 2 effective date and retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1769HV (1) 90 jda/jh

H.F. 421 DIVISION I 1 FOR-PROFIT INSTITUTIONS 2 Section 1. IOWA TUITION GRANTS —— FOR-PROFIT 3 INSTITUTIONS. For the period beginning December 1, 2022, and 4 ending June 30, 2023, and for purposes of section 261.16A, an 5 “eligible institution”, as defined in section 261.9, subsection 6 3, paragraph “a”, shall include an institution of higher 7 learning accredited by the higher learning commission which, 8 effective January 8, 2010, was purchased by an institution that 9 was not exempt from taxation under section 501(c)(3) of the 10 Internal Revenue Code and which, effective December 1, 2022, 11 was purchased by an entity located in this state that is exempt 12 from taxation under section 501(c)(3) of the Internal Revenue 13 Code. 14 Sec. 2. EFFECTIVE DATE. This division of this Act, being 15 deemed of immediate importance, takes effect upon enactment. 16 Sec. 3. RETROACTIVE APPLICABILITY. This division of this 17 Act applies retroactively to December 1, 2022. 18 DIVISION II 19 IOWA TUITION GRANTS PROGRAM 20 Sec. 4. Section 261.9, subsection 3, Code 2023, is amended 21 to read as follows: 22 3. “Eligible institution” means an institution of higher 23 learning located in Iowa which is operated privately and 24 not controlled or administered by any state agency or any 25 subdivision of the state, which is not exempt from taxation 26 under section 501(c)(3) of the Internal Revenue Code, and 27 which meets all of the criteria in subsection 1 , paragraphs 28 “d” through “i” , and the criteria in paragraphs “a” or “b” as 29 follows: 30 a. Is accredited by the higher learning commission and 31 which, effective January 8, 2010, purchased an accredited 32 private institution that was exempt from taxation under section 33 501(c) of the Internal Revenue Code , or whose students were 34 eligible to receive tuition grants in the fiscal year beginning 35 -1- LSB 1769HV (1) 90 jda/jh 1/ 4

H.F. 421 July 1, 2003. The eligible institution shall annually provide 1 a matching aggregate amount of institutional financial aid 2 which shall increase by the percentage of increase each 3 fiscal year of funds appropriated for Iowa tuition grants 4 under section 261.25, subsection 2 , to a maximum match of one 5 hundred percent as initiated under section 261.9, subsection 1 , 6 paragraph “b” , Code 2005. 7 b. Is is a barber school licensed under section 158.7 8 or a school of cosmetology arts and sciences licensed under 9 chapter 157 and is accredited by a national accrediting agency 10 recognized by the United States department of education. 11 For the fiscal year beginning July 1, 2017, an eligible 12 institution under this paragraph such a barber school or school 13 of cosmetology arts and sciences shall provide a matching 14 aggregate amount of institutional financial aid equal to at 15 least seventy-five percent of the amount received by the 16 institution’s students for Iowa tuition grant assistance 17 under section 261.16A . For the fiscal year beginning July 1, 18 2018, the institution barber school or school of cosmetology 19 arts and sciences shall provide a matching aggregate amount 20 of institutional financial aid equal to at least eighty-five 21 percent of the amount received in that fiscal year. Commencing 22 with the fiscal year beginning July 1, 2019, and each 23 succeeding fiscal year, the matching aggregate amount of 24 institutional financial aid shall be at least equal to the 25 match provided by eligible institutions under section 261.9, 26 subsection 3, paragraph “a” , Code 2023 . 27 Sec. 5. Section 261.16A, subsection 2, Code 2023, is amended 28 to read as follows: 29 2. Extent of grant. 30 a. A qualified full-time resident student enrolled in an 31 eligible institution that meets the criteria of section 261.9, 32 subsection 3 , paragraph “a” , may receive tuition grants for 33 not more than eight semesters of undergraduate study or the 34 equivalent; a qualified part-time resident student enrolled 35 -2- LSB 1769HV (1) 90 jda/jh 2/ 4

H.F. 421 in the eligible institution may receive tuition grants for 1 not more than sixteen semesters of undergraduate study or the 2 equivalent. 3 b. A qualified full-time resident student enrolled in an 4 eligible institution that meets the criteria of section 261.9, 5 subsection 3 , paragraph “b” , may receive tuition grants for not 6 more than four semesters or the equivalent of two full years 7 of study. However, if a student resumes study after at least 8 a two-year absence, the student may again be eligible for the 9 specified amount of time, except that the student shall not 10 receive assistance for courses for which credit was previously 11 received. 12 Sec. 6. Section 261.25, subsection 2, Code 2023, is amended 13 to read as follows: 14 2. There is appropriated from the general fund of the state 15 to the commission for each fiscal year the sum of five hundred 16 thousand dollars for tuition grants for qualified students 17 who are enrolled in eligible institutions. Of the moneys 18 appropriated under this subsection , not more than one hundred 19 thousand dollars annually shall be used for tuition grants to 20 qualified students who are attending an eligible institution 21 under section 261.9, subsection 3 , paragraph “b” . 22 EXPLANATION 23 The inclusion of this explanation does not constitute agreement with 24 the explanation’s substance by the members of the general assembly. 25 This bill relates to the Iowa tuition grants program 26 administered by the college student aid commission. Under 27 the program, the commission awards tuition grants to Iowa 28 residents enrolled at eligible institutions, which Code section 29 261.9 defines as one of Iowa’s eligible private colleges and 30 universities. The bill provides that, for the period beginning 31 December 1, 2022, and ending June 30, 2023, and for purposes 32 of the program, the term “eligible institution” includes 33 an institution of higher learning accredited by the higher 34 learning commission which, effective January 8, 2010, was 35 -3- LSB 1769HV (1) 90 jda/jh 3/ 4

H.F. 421 purchased by an institution that was not exempt from taxation 1 under section 501(c)(3) of the Internal Revenue Code and which, 2 effective December 1, 2022, was purchased by an entity located 3 in this state that is exempt from taxation under section 4 501(c)(3) of the Internal Revenue Code. The bill establishes 5 that this provision takes effect upon enactment and applies 6 retroactively to December 1, 2022. The bill makes conforming 7 changes. 8 -4- LSB 1769HV (1) 90 jda/jh 4/ 4