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House Study Bill 542 - IntroducedA Bill ForAn Act 1relating to schools that are required to register with
2the college student aid commission.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 261B.4, subsection 4, Code 2022, is
2amended to read as follows:
34. The refund policy of the school for the return of
4refundable portions of tuition, fees, or other charges.
5The tuition refund policy for Iowa resident students of a
6for-profit school with at least one program of more than four
7months in length that leads that offers a course of instruction
8leading to a recognized educational credential, such as an
9academic or professional degree, diploma, or license, must
10comply with section 714.23.
11 Sec. 2. Section 261B.11, subsection 1, paragraph f, Code
122022, is amended by striking the paragraph and inserting in
13lieu thereof the following:
14f. A community college established under chapter 260C or an
15institution of higher learning under the control of the board
16of regents.
17 Sec. 3. Section 261B.11, subsection 1, paragraphs n and o,
18Code 2022, are amended by striking the paragraphs.
19 Sec. 4. Section 261B.11, subsection 2, paragraph b, Code
202022, is amended to read as follows:
21b. A for-profit school with at least one program of more
22than four months in length that leads that offers a course of
23instruction leading to a recognized educational credential,
24such as an academic or professional degree, diploma, or
25license, must submit to the commission a tuition refund policy
26that meets the conditions of section 714.23.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
30This bill relates to schools that are required to register
31with the college student aid commission.
32The bill requires that the tuition refund policy for Iowa
33resident students of a for-profit school governed by Code
34chapter 261B that offers a course of instruction leading to a
35recognized educational credential must comply with Code section
-1-1714.23, which provides standards for refund policies and
2penalties for violating those standards. A violation of Code
3section 714.23 is a simple misdemeanor. A simple misdemeanor
4is punishable by confinement for no more than 30 days and a
5fine of at least $105 but not more than $855. The bill requires
6the school to submit the refund policy to the college student
7aid commission.
8Under current law, the provisions of Code chapter 261B
9do not apply to colleges and universities authorized by the
10laws of this state to grant degrees. The bill strikes this
11exception and replaces it with an exception for community
12colleges established under Code chapter 260C and institutions
13of higher learning under the control of the board of regents.
14Additionally, under current law, the provisions of Code
15chapter 261B do not apply to either a postsecondary educational
16institution established in Bettendorf in 1969 to prepare
17students for the federal communications commission radio
18broadcasting examination or a school of religious study located
19in Iowa that was established in Spain in 1982, is affiliated
20with the department of global missions of open bible churches,
21grants bachelor’s degrees, and is accredited by a nationally
22recognized accrediting agency. The bill strikes these
23exceptions.
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2the college student aid commission.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 261B.4, subsection 4, Code 2022, is
2amended to read as follows:
34. The refund policy of the school for the return of
4refundable portions of tuition, fees, or other charges.
5The tuition refund policy for Iowa resident students of a
6for-profit school with at least one program of more than four
7months in length that leads that offers a course of instruction
8leading to a recognized educational credential, such as an
9academic or professional degree, diploma, or license, must
10comply with section 714.23.
11 Sec. 2. Section 261B.11, subsection 1, paragraph f, Code
122022, is amended by striking the paragraph and inserting in
13lieu thereof the following:
14f. A community college established under chapter 260C or an
15institution of higher learning under the control of the board
16of regents.
17 Sec. 3. Section 261B.11, subsection 1, paragraphs n and o,
18Code 2022, are amended by striking the paragraphs.
19 Sec. 4. Section 261B.11, subsection 2, paragraph b, Code
202022, is amended to read as follows:
21b. A for-profit school with at least one program of more
22than four months in length that leads that offers a course of
23instruction leading to a recognized educational credential,
24such as an academic or professional degree, diploma, or
25license, must submit to the commission a tuition refund policy
26that meets the conditions of section 714.23.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
30This bill relates to schools that are required to register
31with the college student aid commission.
32The bill requires that the tuition refund policy for Iowa
33resident students of a for-profit school governed by Code
34chapter 261B that offers a course of instruction leading to a
35recognized educational credential must comply with Code section
-1-1714.23, which provides standards for refund policies and
2penalties for violating those standards. A violation of Code
3section 714.23 is a simple misdemeanor. A simple misdemeanor
4is punishable by confinement for no more than 30 days and a
5fine of at least $105 but not more than $855. The bill requires
6the school to submit the refund policy to the college student
7aid commission.
8Under current law, the provisions of Code chapter 261B
9do not apply to colleges and universities authorized by the
10laws of this state to grant degrees. The bill strikes this
11exception and replaces it with an exception for community
12colleges established under Code chapter 260C and institutions
13of higher learning under the control of the board of regents.
14Additionally, under current law, the provisions of Code
15chapter 261B do not apply to either a postsecondary educational
16institution established in Bettendorf in 1969 to prepare
17students for the federal communications commission radio
18broadcasting examination or a school of religious study located
19in Iowa that was established in Spain in 1982, is affiliated
20with the department of global missions of open bible churches,
21grants bachelor’s degrees, and is accredited by a nationally
22recognized accrediting agency. The bill strikes these
23exceptions.
-2-jda/jh