House Study Bill 94 - IntroducedA Bill ForAn Act 1relating to the registration of postsecondary schools by
2the college student aid commission and student eligibility
3for state student financial aid programs.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 261B.3, subsection 4, Code 2017, is
2amended to read as follows:
   34.  If a school fails to meet any of the registration
4criteria, or if the commission believes that false, misleading,
5or incomplete information has been submitted in connection with
6an application for registration, or if the school has engaged
7in conduct prohibited under section 261B.13,
the commission
8may deny, suspend, or revoke registration and the school shall
9not operate in Iowa or otherwise offer its programs to Iowa
10residents
. The commission shall conduct a hearing on the
11denial if a hearing is requested by a school. Upon a finding
12after the hearing that the school fails to meet any of the
13registration criteria, or that information contained in the
14registration application is false, misleading, or incomplete,
15the commission shall deny registration. The commission shall
16make the final decision on each registration. However, the
17decision of the commission is subject to judicial review in
18accordance with section 17A.19.

19   Sec. 2.  Section 261B.3A, subsection 3, Code 2017, is amended
20to read as follows:
   213.  The commission may grant a provisional registration to
22a school that is not accredited by an agency or organization
23that is recognized by the United States department of education
24or its successor agency while the school is seeking authority
25to provide programs under that accreditation at a location in
26this state
. The commission shall determine the duration of the
27provisional registration. During the provisional registration
28period, the school shall, at six-month intervals, submit to
29the commission documentation of its progress toward achieving
30accreditation
 receiving authorization. The commission may
31renew the school’s provisional registration at its discretion
32if the documentation submitted indicates that the school is
33making progress toward accreditation authorization.
34   Sec. 3.  Section 261B.6, Code 2017, is amended to read as
35follows:
-1-   1261B.6  List of schools.
   2The commission shall maintain a list of registered schools
3and the list and the information submitted under sections
4261B.3 and 261B.4
 this chapter are public records under chapter
522.
6   Sec. 4.  Section 261B.9, unnumbered paragraph 1, Code 2017,
7is amended to read as follows:
   8Prior to the commencement of a course of instruction and
9prior to the receipt of a tuition charge or fee for a course
10of instruction, a school shall provide written disclosure
11to students of the following information accompanied by a
12statement that the information is being provided in compliance
13with this section
:
14   Sec. 5.  Section 261B.11A, Code 2017, is amended to read as
15follows:
   16261B.11A  Ineligibility for state student aid programs.
   171.  Students attending schools required to register under
18this chapter are ineligible for state student financial aid
19programs established under chapter 261. This subsection does
20not apply to students attending a for-profit accredited private
21institution as defined in section 261.25, subsection 2.

   222.  A school required to register under this chapter that
23 is prohibited from offering state aid or advertising shall not
24advertise
that state aid is or may be available to students
25attending the school.
26EXPLANATION
27The inclusion of this explanation does not constitute agreement with
28the explanation’s substance by the members of the general assembly.
   29This bill relates both to a requirement that certain
30postsecondary schools register with and be approved by the
31college student aid commission, and to student eligibility for
32state student financial aid programs.
   33Code chapter 261B requires certain postsecondary schools
34to register with the commission in order to operate in
35Iowa or otherwise offer its programs to Iowa residents.
-2-1Currently, the commission may deny registration and the
2authorization to operate in Iowa to a school that fails to
3meet registration criteria or provides false, misleading, or
4incomplete information in connection with its application
5for registration. The bill authorizes the commission to
6also deny, suspend, or revoke a school’s registration if
7the school engaged in conduct prohibited under Code section
8261B.13. Currently, Code section 261B.13 prohibits a
9postsecondary school from operating in this state if the
10school does not qualify for an exemption and is not accredited
11by an accrediting agency recognized by the U.S. department
12of education. Code section 261B.13 also prohibits a school
13that is registered or otherwise authorized to operate in this
14state from entering into an agreement to conduct a course of
15instruction, confer a degree, or conduct any other aspect of
16its operation with another school that is in violation of the
17Code section.
   18The bill authorizes the commission to grant provisional
19registration to a school if the school is accredited elsewhere
20and is seeking the authorization of the accrediting agency
21or organization to provide programs in Iowa under that
22accreditation.
   23Under the bill, lists and information submitted under the
24Code chapter are public records. The bill strikes a provision
25requiring approved schools to include on written disclosures
26provided to students, prior to the commencement of classes and
27receipt of tuition or fees, a statement that the information
28disclosed is provided in compliance with Code section 261B.9.
   29A Code provision making students who are attending schools
30that are required to register with the commission ineligible
31for state student financial aid programs is, under the bill,
32inapplicable to students attending a for-profit accredited
33private institution, as defined for purposes of the Iowa
34tuition grant.
   35Currently, a school required to register with the commission
-3-1is prohibited from offering state aid or advertising that state
2aid is or may be available to students attending the school.
3The bill provides that a school which is required to register
4with the commission and is prohibited from offering state aid
5shall not advertise that state aid is or may be available to
6students attending the school.
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