S.F. 361 Section 1. NEW SECTION . 256.211A Armed forces reserve 1 component scholarship program. 2 1. As used in this section: 3 a. “Active duty” means “active duty” as defined in 10 U.S.C. 4 §101(d)(1), except that the term does not include active duty 5 for training or attendance at a service school. 6 b. “Commission” means the college student aid commission. 7 c. “Eligible institution” means a community college as 8 defined in section 260C.2, an institution of higher learning 9 under the control of the state board of regents, or an 10 accredited private institution as defined in section 256.183. 11 d. “Eligible student” means an Iowa resident who meets all 12 of the following requirements: 13 (1) Is a member of a reserve component of the army, 14 navy, air force, marine corps, coast guard, or space force 15 of the United States, located in this state, while receiving 16 scholarship award payments issued pursuant to this section. 17 (2) Satisfactorily completed required initial active duty 18 training. 19 (3) Maintains satisfactory performance of duty upon return 20 from initial active duty training. 21 (4) Is enrolled as a full-time student in an eligible 22 institution, and maintains satisfactory academic progress 23 toward any of the following: 24 (a) An associate degree. 25 (b) A baccalaureate degree. 26 (c) A postsecondary certificate, diploma, or degree, 27 conferring no more than an associate degree, that is awarded 28 by an eligible institution and earned in a program of study 29 that leads to a high-demand job designated by the workforce 30 development board or a community college pursuant to section 31 84A.1B, subsection 14, and that is authorized for federal 32 student aid under Tit. IV of the federal Higher Education Act 33 of 1965, as amended. 34 (5) Completes and submits application forms required by 35 -1- LSB 1257XS (1) 91 jda/jh 1/ 6

S.F. 361 the commission, including the free application for federal 1 student aid, and applies for all nonrepayable state and federal 2 financial aid for which the individual is eligible. 3 (6) Is certified by the United States army reserve command, 4 or another military reserve component command, as meeting the 5 requirements of this section. 6 e. “Financial need” means the difference between the 7 student’s financial resources available, including any 8 nonrepayable financial aid under any other state or federal 9 program, and the student’s anticipated expenses while attending 10 an eligible institution. 11 f. “Full-time” means enrollment in at least twelve semester 12 hours or the equivalent. 13 2. The armed forces reserve component scholarship program 14 is established to be administered by the commission for members 15 of the reserve forces of the United States armed forces who are 16 enrolled as full-time students in an eligible institution. 17 3. a. A qualified student who is enrolled as a full-time 18 student in an eligible institution may receive a scholarship 19 under this section for not more than the equivalent of eight 20 semesters of study. 21 b. Scholarships awarded pursuant to this section shall not 22 exceed the following amounts: 23 (1) If the eligible student is enrolled in a community 24 college as defined in section 260C.2, the lesser of the 25 eligible student’s financial need or one hundred percent of the 26 resident tuition and mandatory fees charged by the community 27 college. 28 (2) If the eligible student is enrolled in an institution 29 of higher learning under the control of the state board of 30 regents, or an accredited private institution as defined in 31 section 256.183, the lesser of the eligible student’s financial 32 need or one hundred percent of the average resident tuition 33 and mandatory fees for undergraduate study charged by the 34 institutions of higher learning. 35 -2- LSB 1257XS (1) 91 jda/jh 2/ 6

S.F. 361 4. If the amount appropriated in a fiscal year for purposes 1 of this section is insufficient to provide scholarships 2 to all who apply for the armed forces reserve component 3 scholarship program and who are determined to be eligible for 4 the program, the commission shall determine the distribution of 5 scholarships. Eligibility and scholarship award determination 6 shall not be based upon an eligible student’s unit or the 7 location at which drills are attended. 8 5. If an eligible student discontinues attendance before 9 the end of any semester, or the equivalent, after receiving 10 scholarship payments, the entire amount of any refund due to 11 that eligible student, up to the full amount of all of the 12 annual scholarship payments made, shall be paid by the eligible 13 institution to the commission. This subsection shall not apply 14 to an eligible student who discontinues attendance due to the 15 eligible student being ordered to active duty. 16 6. The eligibility of applicants shall be certified by the 17 United States army reserve command or another military reserve 18 component command. Scholarship awards under this section shall 19 be paid to the eligible institution by the commission upon 20 receipt of certification by the eligible institution as to the 21 accuracy of charges made and as to the attendance and academic 22 progress of the eligible student at the eligible institution. 23 The commission shall maintain an annual record of the number of 24 participants in the armed forces reserve component scholarship 25 program and the dollar value of the scholarship awards issued. 26 7. A member of a reserve component of the army, navy, air 27 force, marine corps, coast guard, or space force of the United 28 States, located in this state, is ineligible for a scholarship 29 award under this section if any of the following apply: 30 a. The member has met the educational requirements for a 31 baccalaureate degree. 32 b. The member was discharged from any branch of the armed 33 forces under other than honorable conditions. 34 8. Scholarships awarded under this section may be used by 35 -3- LSB 1257XS (1) 91 jda/jh 3/ 6

S.F. 361 the recipient for the recipient’s cost of attendance as defined 1 in Tit. IV, part B, of the federal Higher Education Act of 2 1965, as amended. 3 9. If an eligible student is ordered to active duty during 4 the time in which the eligible student is enrolled in an 5 eligible institution and receiving scholarship awards under 6 this section, the commission may waive or modify any statutory 7 or regulatory provision applicable to the armed forces reserve 8 component scholarship program to ensure that, with regard to 9 the eligible student, all of the following occur: 10 a. The eligible student is able to utilize any scholarships 11 awarded to the eligible student under this section within five 12 years after the eligible student’s enlistment obligation in a 13 reserve component of the armed forces ends. 14 b. Administrative requirements placed on the eligible 15 student are minimized, to the extent possible, without 16 impairing the integrity of the armed forces reserve component 17 scholarship program, to ease the burden on the eligible student 18 and to avoid inadvertent technical violations or defaults. 19 10. Notwithstanding section 8.33, moneys appropriated 20 for purposes of this section which remain unencumbered or 21 unobligated at the close of the fiscal year for which the funds 22 were appropriated shall not revert but shall be available for 23 expenditure for the following fiscal year for purposes of this 24 section. 25 11. The commission shall adopt rules pursuant to chapter 17A 26 to administer this section. 27 Sec. 2. CODE EDITOR DIRECTIVE. The Code editor shall 28 designate section 256.211A, as enacted in this Act, as a new 29 section within chapter 256, subchapter VII, part 4, subpart 30 G, and may redesignate the preexisting subpart and correct 31 internal references as necessary, including references to 32 subpart headnotes. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -4- LSB 1257XS (1) 91 jda/jh 4/ 6

S.F. 361 the explanation’s substance by the members of the general assembly. 1 This bill establishes the armed forces reserve component 2 scholarship program within the college student aid commission 3 for members of the reserve forces of the United States armed 4 forces who are enrolled as full-time students in an eligible 5 institution. The bill provides that a qualified student who 6 is enrolled as a full-time student in an eligible institution 7 may receive a scholarship under the program for not more than 8 the equivalent of eight semesters of study. If the eligible 9 student is enrolled in a community college, the amount of the 10 eligible student’s scholarship shall not exceed the lesser of 11 the eligible student’s financial need or 100 percent of the 12 resident tuition and mandatory fees charged by the community 13 college. If the eligible student is enrolled in an institution 14 of higher learning under the control of the state board of 15 regents, or an accredited private institution, the amount of 16 the eligible student’s scholarship shall not exceed the lesser 17 of the eligible student’s financial need or 100 percent of the 18 average resident tuition and mandatory fees for undergraduate 19 study charged by the institutions of higher learning. 20 The bill provides that if the amount appropriated in a fiscal 21 year is insufficient to provide scholarships to all who apply 22 for the program and who are determined to be eligible for the 23 program, the commission shall determine the distribution of 24 scholarships. 25 The bill provides that if an eligible student discontinues 26 attendance before the end of any semester, or the equivalent, 27 after receiving scholarship payments, the entire amount of any 28 refund due to that eligible student, up to the full amount of 29 all of the annual scholarship payments made, shall be paid by 30 the eligible institution to the commission. This provision 31 does not apply to an eligible student who discontinues 32 attendance due to the eligible student being ordered to active 33 duty. 34 Scholarship awards under the program are required to be paid 35 -5- LSB 1257XS (1) 91 jda/jh 5/ 6

S.F. 361 to the eligible institution by the commission upon receipt of 1 certification by the eligible institution as to the accuracy 2 of charges made and as to the attendance and academic progress 3 of the eligible student at the eligible institution. The bill 4 requires the commission to maintain an annual record of the 5 number of participants in the program and the dollar value of 6 the scholarship awards issued. 7 The bill provides that a member of a reserve component 8 of the army, navy, air force, marine corps, coast guard, or 9 space force of the United States, located in this state, is 10 ineligible for a scholarship award under the program if the 11 member has met the educational requirements for a baccalaureate 12 degree or if the member was discharged from any branch of the 13 armed forces under other than honorable conditions. 14 If an eligible student is ordered to active duty during the 15 time in which the eligible student is enrolled in an eligible 16 institution and receiving scholarship awards under the program, 17 the commission is authorized to waive or modify any statutory 18 or regulatory provision applicable to the program to ensure 19 that the eligible student is able to utilize any scholarships 20 awarded to the eligible student under the program within five 21 years after the eligible student’s enlistment obligation in a 22 reserve component of the armed forces ends, and to ensure that 23 administrative requirements placed on the eligible student are 24 minimized, to the extent possible. 25 The bill requires the commission to adopt rules to 26 administer the program. 27 The bill defines “active duty”, “commission”, “eligible 28 institution”, “eligible student”, “financial need”, and 29 “full-time”. 30 -6- LSB 1257XS (1) 91 jda/jh 6/ 6