H.F. _____ Section 1. Section 256.183, subsection 1, unnumbered 1 paragraph 1, Code 2026, 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 “k” “l” , 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 2026, is amended 11 by adding the following new paragraph: 12 NEW PARAGRAPH . l. Adopt a policy for compliance with 13 chapter 261M. 14 Sec. 3. Section 256.183, subsection 3, Code 2026, 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 “k” “l” , 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 5110YC (2) 91 je/ns 1/ 5

H.F. _____ 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 . 261M.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” includes all of the 10 following: 11 a. Any effort to manipulate or otherwise influence the 12 composition of the faculty or student body with reference to 13 race, sex, color, or ethnicity, apart from ensuring colorblind 14 and sex-neutral admissions and hiring in accordance with state 15 and federal antidiscrimination laws. 16 b. Any effort to promote differential treatment of or 17 provide special benefits to individuals on the basis of race, 18 color, or ethnicity. 19 c. Any effort to promote or promulgate policies and 20 procedures designed or implemented with reference to race, 21 color, or ethnicity. 22 d. Any effort to promote or promulgate trainings, 23 programming, or activities designed or implemented with 24 reference to race, color, ethnicity, gender identity, or sexual 25 orientation. 26 3. “Diversity, equity, and inclusion office” means 27 any division, office, center, or other unit of a private 28 institution of higher education that is responsible for 29 creating, developing, designing, implementing, organizing, 30 planning, or promoting policies, programming, training, 31 practices, activities, or procedures related to diversity, 32 equity, and inclusion. “Diversity, equity, and inclusion office” 33 does not include any of the following: 34 a. An office ensuring legal compliance. 35 -2- LSB 5110YC (2) 91 je/ns 2/ 5

H.F. _____ b. An academic department within a private institution 1 of higher education that exists primarily for the purpose of 2 offering courses for degree credit and that does not establish 3 a policy or procedures to which other departments of the 4 private institution of higher education are subject. 5 c. An office solely engaged in new student recruitment. 6 d. A registered student organization. 7 4. “Private institution of higher education” means an 8 accredited private institution as defined in section 256.183 or 9 an eligible institution as defined in section 256.183. 10 Sec. 5. NEW SECTION . 261M.2 Diversity, equity, and 11 inclusion office prohibited. 12 1. A private institution of higher education shall not, 13 except as otherwise provided by federal or state law or 14 accreditation standards, establish, sustain, support, or staff 15 a diversity, equity, and inclusion office. 16 2. Subsection 1 shall not be construed to cover or affect a 17 private institution of higher education’s funding of any of the 18 following: 19 a. Academic course instruction. 20 b. Research or creative works by the private institution 21 of higher education’s students, faculty, or other research 22 personnel, and the dissemination of such research or creative 23 works. 24 c. Activities of registered student organizations. 25 d. Arrangements for guest speakers and performers with 26 short-term engagements. 27 e. Mental or physical health services provided by licensed 28 professionals. 29 3. Subsection 1 shall not be construed as prohibiting bona 30 fide qualifications based on sex that are reasonably necessary 31 to the normal operation of private higher education. 32 Sec. 6. NEW SECTION . 261M.3 Enforcement. 33 1. A person may report a private institution of higher 34 education’s potential violation of section 261M.2 to the 35 -3- LSB 5110YC (2) 91 je/ns 3/ 5

H.F. _____ attorney general. The attorney general shall provide notice 1 of such report to the department and the institution within 2 fifteen days. No later than thirty days after receiving such 3 notice, the institution shall do one of the following: 4 a. Correct the violation and provide documentation of the 5 correction to the attorney general and the department. 6 b. Provide documentation to the attorney general and the 7 department demonstrating that the action of the institution 8 upon which the report was based was not a violation of section 9 261M.2. 10 2. If, upon the conclusion of the thirty-day period 11 provided in subsection 1, the institution has not complied 12 with subsection 1, paragraph “a” , or provided documentation 13 under subsection 1, paragraph “b” , that demonstrates to 14 the satisfaction of the attorney general that a violation 15 of section 261M.2 did not occur, the institution shall be 16 ineligible to participate in the tuition grant program under 17 chapter 256, subchapter VII, part 4, subpart B, as of the 18 next academic year beginning thereafter. If either action is 19 carried out by the institution by October 1 of an academic 20 year, eligibility shall be restored as of the next academic 21 year beginning after such action is carried out. The attorney 22 general shall notify the college student aid commission to this 23 effect. 24 EXPLANATION 25 The inclusion of this explanation does not constitute agreement with 26 the explanation’s substance by the members of the general assembly. 27 This bill prohibits a private institution of higher 28 education, as defined in the bill, from establishing, 29 sustaining, supporting, or staffing a diversity, equity, and 30 inclusion office, as defined in the bill. The prohibition does 31 not apply if otherwise provided by federal or state law or 32 accreditation standards. The bill specifies activities that 33 the bill shall not be construed to prohibit. 34 The bill authorizes a person to report a private institution 35 -4- LSB 5110YC (2) 91 je/ns 4/ 5

H.F. _____ of higher education’s potential violation of the requirements 1 of the bill to the attorney general, who shall provide 2 notice of such report to the department of education and the 3 institution within 15 days. No later than 30 days after 4 receiving such notice, the institution is required to take 5 one of two actions. The institution shall either correct the 6 violation and provide documentation of the correction to the 7 attorney general and the department or provide documentation to 8 the attorney general and the department demonstrating that the 9 action of the institution upon which the report was based was 10 not a violation. 11 If within the 30-day period the institution has not 12 corrected the violation or provided documentation that 13 demonstrates to the satisfaction of the attorney general that a 14 violation did not occur, the institution shall be ineligible 15 to participate in the Iowa tuition grant program as of the 16 next academic year beginning thereafter. If either action is 17 carried out by the institution by October 1 of an academic 18 year, eligibility shall be restored as of the next academic 19 year beginning after such action is carried out. 20 -5- LSB 5110YC (2) 91 je/ns 5/ 5