SF 361 (LSB 1257XS (1) 91)

SENATE FILE 361

BY  BOUSSELOT

A BILL FOR

An Act establishing the armed forces reserve component scholarship program within the college student aid commission.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  256.211A  Armed forces reserve component scholarship program.
   1.  As used in this section:
   a.  “Active duty” means “active duty” as defined in 10 U.S.C. §101(d)(1), except that the term does not include active duty for training or attendance at a service school.
   b.  “Commission” means the college student aid commission.
   c.  “Eligible institution” means a community college as defined in section 260C.2, an institution of higher learning under the control of the state board of regents, or an accredited private institution as defined in section 256.183.
   d.  “Eligible student” means an Iowa resident who meets all of the following requirements:
   (1)  Is a member of a reserve component of the army, navy, air force, marine corps, coast guard, or space force of the United States, located in this state, while receiving scholarship award payments issued pursuant to this section.
   (2)  Satisfactorily completed required initial active duty training.
   (3)  Maintains satisfactory performance of duty upon return from initial active duty training.
   (4)  Is enrolled as a full-time student in an eligible institution, and maintains satisfactory academic progress toward any of the following:
   (a)  An associate degree.
   (b)  A baccalaureate degree.
   (c)  A postsecondary certificate, diploma, or degree, conferring no more than an associate degree, that is awarded by an eligible institution and earned in a program of study that leads to a high-demand job designated by the workforce development board or a community college pursuant to section 84A.1B, subsection 14, and that is authorized for federal student aid under Tit. IV of the federal Higher Education Act of 1965, as amended.
   (5)  Completes and submits application forms required by the commission, including the free application for federal student aid, and applies for all nonrepayable state and federal financial aid for which the individual is eligible.
   (6)  Is certified by the United States army reserve command, or another military reserve component command, as meeting the requirements of this section.
   e.  “Financial need” means the difference between the student’s financial resources available, including any nonrepayable financial aid under any other state or federal program, and the student’s anticipated expenses while attending an eligible institution.
   f.  “Full-time” means enrollment in at least twelve semester hours or the equivalent.
   2.  The armed forces reserve component scholarship program is established to be administered by the commission for members of the reserve forces of the United States armed forces who are enrolled as full-time students in an eligible institution.
   3.  a.  A qualified student who is enrolled as a full-time student in an eligible institution may receive a scholarship under this section for not more than the equivalent of eight semesters of study.
   b.  Scholarships awarded pursuant to this section shall not exceed the following amounts:
   (1)  If the eligible student is enrolled in a community college as defined in section 260C.2, the lesser of the eligible student’s financial need or one hundred percent of the resident tuition and mandatory fees charged by the community college.
   (2)  If the eligible student is enrolled in an institution of higher learning under the control of the state board of regents, or an accredited private institution as defined in section 256.183, the lesser of the eligible student’s financial need or one hundred percent of the average resident tuition and mandatory fees for undergraduate study charged by the institutions of higher learning.
   4.  If the amount appropriated in a fiscal year for purposes of this section is insufficient to provide scholarships to all who apply for the armed forces reserve component scholarship program and who are determined to be eligible for the program, the commission shall determine the distribution of scholarships. Eligibility and scholarship award determination shall not be based upon an eligible student’s unit or the location at which drills are attended.
   5.  If an eligible student discontinues attendance before the end of any semester, or the equivalent, after receiving scholarship payments, the entire amount of any refund due to that eligible student, up to the full amount of all of the annual scholarship payments made, shall be paid by the eligible institution to the commission. This subsection shall not apply to an eligible student who discontinues attendance due to the eligible student being ordered to active duty.
   6.  The eligibility of applicants shall be certified by the United States army reserve command or another military reserve component command. Scholarship awards under this section shall be paid to the eligible institution by the commission upon receipt of certification by the eligible institution as to the accuracy of charges made and as to the attendance and academic progress of the eligible student at the eligible institution. The commission shall maintain an annual record of the number of participants in the armed forces reserve component scholarship program and the dollar value of the scholarship awards issued.
   7.  A member of a reserve component of the army, navy, air force, marine corps, coast guard, or space force of the United States, located in this state, is ineligible for a scholarship award under this section if any of the following apply:
   a.  The member has met the educational requirements for a baccalaureate degree.
   b.  The member was discharged from any branch of the armed forces under other than honorable conditions.
   8.  Scholarships awarded under this section may be used by the recipient for the recipient’s cost of attendance as defined in Tit. IV, part B, of the federal Higher Education Act of 1965, as amended.
   9.  If an eligible student is ordered to active duty during the time in which the eligible student is enrolled in an eligible institution and receiving scholarship awards under this section, the commission may waive or modify any statutory or regulatory provision applicable to the armed forces reserve component scholarship program to ensure that, with regard to the eligible student, all of the following occur:
   a.  The eligible student is able to utilize any scholarships awarded to the eligible student under this section within five years after the eligible student’s enlistment obligation in a reserve component of the armed forces ends.
   b.  Administrative requirements placed on the eligible student are minimized, to the extent possible, without impairing the integrity of the armed forces reserve component scholarship program, to ease the burden on the eligible student and to avoid inadvertent technical violations or defaults.
   10.  Notwithstanding section 8.33, moneys appropriated for purposes of this section which remain unencumbered or unobligated at the close of the fiscal year for which the funds were appropriated shall not revert but shall be available for expenditure for the following fiscal year for purposes of this section.
   11.  The commission shall adopt rules pursuant to chapter 17A to administer this section.
    Sec. 2.  CODE EDITOR DIRECTIVE.  The Code editor shall designate section 256.211A, as enacted in this Act, as a new section within chapter 256, subchapter VII, part 4, subpart G, and may redesignate the preexisting subpart and correct internal references as necessary, including references to subpart headnotes.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill establishes the armed forces reserve component scholarship program within the college student aid commission for members of the reserve forces of the United States armed forces who are enrolled as full-time students in an eligible institution. The bill provides that a qualified student who is enrolled as a full-time student in an eligible institution may receive a scholarship under the program for not more than the equivalent of eight semesters of study. If the eligible student is enrolled in a community college, the amount of the eligible student’s scholarship shall not exceed the lesser of the eligible student’s financial need or 100 percent of the resident tuition and mandatory fees charged by the community college. If the eligible student is enrolled in an institution of higher learning under the control of the state board of regents, or an accredited private institution, the amount of the eligible student’s scholarship shall not exceed the lesser of the eligible student’s financial need or 100 percent of the average resident tuition and mandatory fees for undergraduate study charged by the institutions of higher learning.
   The bill provides that if the amount appropriated in a fiscal year is insufficient to provide scholarships to all who apply for the program and who are determined to be eligible for the program, the commission shall determine the distribution of scholarships.
   The bill provides that if an eligible student discontinues attendance before the end of any semester, or the equivalent, after receiving scholarship payments, the entire amount of any refund due to that eligible student, up to the full amount of all of the annual scholarship payments made, shall be paid by the eligible institution to the commission. This provision does not apply to an eligible student who discontinues attendance due to the eligible student being ordered to active duty.
   Scholarship awards under the program are required to be paid to the eligible institution by the commission upon receipt of certification by the eligible institution as to the accuracy of charges made and as to the attendance and academic progress of the eligible student at the eligible institution. The bill requires the commission to maintain an annual record of the number of participants in the program and the dollar value of the scholarship awards issued.
   The bill provides that a member of a reserve component of the army, navy, air force, marine corps, coast guard, or space force of the United States, located in this state, is ineligible for a scholarship award under the program if the member has met the educational requirements for a baccalaureate degree or if the member was discharged from any branch of the armed forces under other than honorable conditions.
   If an eligible student is ordered to active duty during the time in which the eligible student is enrolled in an eligible institution and receiving scholarship awards under the program, the commission is authorized to waive or modify any statutory or regulatory provision applicable to the program to ensure that the eligible student is able to utilize any scholarships awarded to the eligible student under the program within five years after the eligible student’s enlistment obligation in a reserve component of the armed forces ends, and to ensure that administrative requirements placed on the eligible student are minimized, to the extent possible.
   The bill requires the commission to adopt rules to administer the program.
   The bill defines “active duty”, “commission”, “eligible institution”, “eligible student”, “financial need”, and “full-time”.