H.F. 854 Section 1. Section 256.183, subsection 1, unnumbered 1 paragraph 1, Code 2025, 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 “d” 7 through “j” “k” , except that institutions defined in paragraph 8 “c” of this subsection are exempt from the requirements of 9 paragraphs “a” and “b” : 10 Sec. 2. Section 256.183, subsection 1, Code 2025, is amended 11 by adding the following new paragraph: 12 NEW PARAGRAPH . k. Adopt a policy for compliance with 13 chapter 261K. 14 Sec. 3. Section 256.183, subsection 3, Code 2025, is amended 15 to read as follows: 16 3. “Eligible institution” means an institution of higher 17 learning located in Iowa which is operated privately and 18 not controlled or administered by any state agency or any 19 subdivision of the state, which is not exempt from taxation 20 under section 501(c)(3) of the Internal Revenue Code, and which 21 meets all of the criteria in subsection 1 , paragraphs “d” 22 through “j” “k” , and is a school of barbering and cosmetology 23 arts and sciences licensed under chapter 157 and is accredited 24 by a national accrediting agency recognized by the United 25 States department of education. For the fiscal year beginning 26 July 1, 2017, such a school of barbering and cosmetology arts 27 and sciences shall provide a matching aggregate amount of 28 institutional financial aid equal to at least seventy-five 29 percent of the amount received by the institution’s students 30 for Iowa tuition grant assistance under section 256.191 . For 31 the fiscal year beginning July 1, 2018, the school of barbering 32 and cosmetology arts and sciences shall provide a matching 33 aggregate amount of institutional financial aid equal to at 34 least eighty-five percent of the amount received in that fiscal 35 -1- LSB 1434HV (2) 91 je/jh 1/ 4

H.F. 854 year. Commencing with the fiscal year beginning July 1, 2019, 1 and each succeeding fiscal year, the matching aggregate amount 2 of institutional financial aid shall be at least equal to the 3 match provided by eligible institutions under section 261.9, 4 subsection 3 , paragraph “a” , Code 2023. 5 Sec. 4. NEW SECTION . 261K.1 Definitions. 6 As used in this chapter, unless the context otherwise 7 requires: 8 1. “Department” means the department of education. 9 2. “Diversity, equity, and inclusion” means the same as 10 defined in section 261J.1, as enacted by 2024 Iowa Acts, ch. 11 1152, §31. 12 3. “Diversity, equity, and inclusion office” means the same 13 as defined in section 261J.1, as enacted by 2024 Iowa Acts, ch. 14 1152, §31. 15 4. “Private institution of higher education” means an 16 accredited private institution as defined in section 256.183 or 17 an eligible institution as defined in section 256.183. 18 Sec. 5. NEW SECTION . 261K.2 Diversity, equity, and 19 inclusion office prohibited. 20 1. A private institution of higher education shall not, 21 except as otherwise provided by federal or state law or 22 accreditation standards, establish, sustain, support, or staff 23 a diversity, equity, and inclusion office. 24 2. Subsection 1 shall not be construed to cover or affect a 25 private institution of higher education’s funding of any of the 26 following: 27 a. Academic course instruction. 28 b. Research or creative works by the private institution 29 of higher education’s students, faculty, or other research 30 personnel, and the dissemination of such research or creative 31 works. 32 c. Activities of registered student organizations. 33 d. Arrangements for guest speakers and performers with 34 short-term engagements. 35 -2- LSB 1434HV (2) 91 je/jh 2/ 4

H.F. 854 e. Mental or physical health services provided by licensed 1 professionals. 2 3. Subsection 1 shall not be construed as prohibiting bona 3 fide qualifications based on sex that are reasonably necessary 4 to the normal operation of private higher education. 5 Sec. 6. NEW SECTION . 261K.3 Enforcement. 6 1. Any person may report a private institution of higher 7 education’s potential violation of section 261K.2 to the 8 attorney general. The attorney general shall provide notice 9 of such report to the department and the institution within 10 fifteen days. No later than thirty days after receiving such 11 notice, the institution shall do one of the following: 12 a. Correct the violation and provide documentation of the 13 correction to the attorney general and the department. 14 b. Provide documentation to the attorney general and the 15 department demonstrating that the action of the institution 16 upon which the report was based was not a violation of section 17 261K.2. 18 2. If, upon the conclusion of the thirty-day period 19 provided in subsection 1, the institution has not complied 20 with subsection 1, paragraph “a” , or provided documentation 21 under subsection 1, paragraph “b” , that demonstrates to 22 the satisfaction of the attorney general that a violation 23 of section 261K.2 did not occur, the institution shall be 24 ineligible to participate in the tuition grant program under 25 chapter 256, subchapter VII, part 4, subpart B, as of the 26 next academic year beginning thereafter. If either action is 27 carried out by the institution by October 1 of an academic 28 year, eligibility shall be restored as of the next academic 29 year beginning after such action is carried out. The attorney 30 general shall notify the college student aid commission to this 31 effect. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanation’s substance by the members of the general assembly. 35 -3- LSB 1434HV (2) 91 je/jh 3/ 4

H.F. 854 This bill prohibits a private institution of higher 1 education, as defined in the bill, from establishing, 2 sustaining, supporting, or staffing a diversity, equity, and 3 inclusion office, as defined in the bill. The prohibition does 4 not apply if otherwise provided by federal or state law or 5 accreditation standards. The bill specifies activities that 6 the bill shall not be construed to prohibit. 7 The bill authorizes any person to report a private 8 institution of higher education’s potential violation of the 9 requirements of the bill to the attorney general, who shall 10 provide notice of such report to the department of education 11 and the institution within 15 days. No later than 30 days 12 after receiving such notice, the institution is required to 13 take one of two actions. 14 The institution shall either correct the violation and 15 provide documentation of the correction to the attorney general 16 and the department or provide documentation to the attorney 17 general and the department demonstrating that the action of 18 the institution upon which the report was based was not a 19 violation. 20 If within the 30-day period the institution has not 21 corrected the violation or provided documentation that 22 demonstrates to the satisfaction of the attorney general that a 23 violation did not occur, the institution shall be ineligible 24 to participate in the Iowa tuition grant program as of the 25 next academic year beginning thereafter. If either action is 26 carried out by the institution by October 1 of an academic 27 year, eligibility shall be restored as of the next academic 28 year beginning after such action is carried out. 29 -4- LSB 1434HV (2) 91 je/jh 4/ 4