Iowa-2011-SF125-Introduced

S.F. 125 Section 1. Section 261B.2, subsections 2 and 3, Code 2011, 1 are amended to read as follows: 2 2. “Degree” means a postsecondary credential conferring 3 on the recipient the title of associate, bachelor, master, 4 or doctor, or an equivalent title , signifying educational 5 attainment based on any one or a combination of study or the 6 equivalent experience or achievement testing. A postsecondary 7 degree under this chapter shall not include an honorary degree 8 or other unearned degree . 9 3. “Presence” means maintaining an address within Iowa 10 a physical location in Iowa from which a school offers any 11 portion of a course of instruction in person or by distance 12 education or correspondence study, or conducts advertising, 13 recruiting, enrollment, program coordination, administration, 14 or any other activity related to the school’s operations . 15 Sec. 2. Section 261B.2, Code 2011, is amended by adding the 16 following new subsections: 17 NEW SUBSECTION . 2A. “Offered in this state” means the 18 school offers any portion of a course of instruction at a 19 physical location in this state. 20 NEW SUBSECTION . 2B. “Postsecondary credential” means 21 a degree, diploma, or certificate signifying postsecondary 22 educational attainment following completion of a postsecondary 23 instructional program. A postsecondary credential conferred 24 under this chapter shall not include an honorary credential or 25 other unearned credential. A postsecondary credential under 26 this chapter does not mean a certificate of completion of a 27 course of instruction. 28 Sec. 3. Section 261B.2, subsection 4, paragraph b, Code 29 2011, is amended to read as follows: 30 b. Provides a postsecondary instructional program or course 31 leading to a degree postsecondary credential . 32 Sec. 4. Section 261B.3, Code 2011, is amended to read as 33 follows: 34 261B.3 Registration. 35 -1- LSB 1204SV (3) 84 kh/sc 1/ 7

S.F. 125 1. Except as provided in section 261B.11 , a school that 1 shall register with the commission if the school maintains or 2 conducts one or more courses of instruction offered in this 3 state , including courses of instruction by correspondence or 4 other distance delivery method, offered in this state or which 5 if the school has a presence in this state and offers courses 6 in this state or in other states or foreign countries shall 7 register with the commission . 8 a. Registrations shall be renewed every four years or and 9 shall be amended upon any substantive change in location , 10 program offerings, or accreditation. A school makes a 11 substantive change in a program offering when the school 12 proposes to offer or modify a program that requires the 13 approval of the state board of education or any other state 14 agency authorized to approve the school or its program in this 15 state. 16 b. Registration shall be made on application forms approved 17 and supplied made available by the commission and at the time 18 and in the manner prescribed by the commission. Upon receipt 19 of a complete and accurate registration application, the 20 commission shall issue an acknowledgment of document filed and 21 send it to the school. 22 2. The commission may request require a school to provide 23 additional information as the commission deems necessary 24 to enable the commission to determine the accuracy and 25 completeness of the information contained in the evaluate a 26 school’s registration application. 27 3. If the commission believes that false, misleading, 28 or incomplete information has been submitted in connection 29 with an application for registration, the commission may deny 30 registration. The commission shall conduct a hearing on the 31 denial if a hearing is requested by a school. The commission 32 may withhold an acknowledgment of document filed pending the 33 outcome of the hearing. Upon a finding after the hearing 34 that information contained in the registration application is 35 -2- LSB 1204SV (3) 84 kh/sc 2/ 7

S.F. 125 false, misleading, or incomplete, the commission shall deny an 1 acknowledgment of document filed to the school. The commission 2 shall make the final decision on each registration. However, 3 the decision of the commission is subject to judicial review in 4 accordance with section 17A.19 . 5 3. 4. The commission shall adopt rules under chapter 17A 6 for the implementation of this chapter . 7 Sec. 5. Section 261B.3A, Code 2011, is amended to read as 8 follows: 9 261B.3A Requirements. 10 1. In order to register, a school shall be accredited 11 by an agency or organization approved or recognized by the 12 United States department of education or a successor agency, 13 be approved by any other state agency authorized to approve 14 the school in this state, and, subsequently, be approved for 15 operation by the commission. 16 2. A practitioner preparation program , as defined in 17 section 272.1, operated by a school that applies to register 18 the program in accordance with this chapter shall, in order to 19 register, be accredited by an agency or organization approved 20 or recognized by the United States department of education or a 21 successor agency, be approved by the state board of education 22 pursuant to section 256.7, subsection 3 , and, subsequently, be 23 approved for operation by the commission. 24 3. The commission may grant a provisional registration to 25 a school that is not accredited by an agency or organization 26 that is recognized by the United States department of education 27 or its successor agency. The commission shall determine 28 the duration of the provisional registration. During the 29 provisional registration period, the school shall, at six-month 30 intervals, submit to the commission documentation of its 31 progress toward achieving accreditation. The commission may 32 renew the school’s provisional registration at its discretion 33 based on documentation that the school is making progress 34 toward accreditation. 35 -3- LSB 1204SV (3) 84 kh/sc 3/ 7

S.F. 125 3. 4. Nothing in this chapter shall be construed to exempt 1 a school from the requirements of chapter 490 or 491 . 2 Sec. 6. Section 261B.4, subsections 5, 11, and 13, Code 3 2011, are amended to read as follows: 4 5. The degrees postsecondary credentials granted by the 5 school. 6 11. The names or titles and a description of the courses and 7 degrees postsecondary credentials to be offered. 8 13. The academic and instructional methodologies and 9 delivery systems to be used by the school and the extent to 10 which the school anticipates each methodology and delivery 11 system will be used, including , but not limited to , classroom 12 instruction, correspondence, electronic telecommunications, 13 independent study, and portfolio experience evaluation. 14 Sec. 7. Section 261B.7, Code 2011, is amended to read as 15 follows: 16 261B.7 Unauthorized representation. 17 Neither a A school nor its or a school’s officials or 18 employees shall not advertise or represent that the school is 19 approved or accredited by the commission or the state of Iowa 20 nor shall it use the registration as a . However, a registered 21 school shall reference in promotional materials that the school 22 is registered by the commission on behalf of the state of Iowa 23 and provide the commission’s contact information for students 24 who wish to register a complaint about the school . 25 Sec. 8. Section 261B.8, subsections 1 and 3, Code 2011, are 26 amended to read as follows: 27 1. The commission shall set by rule and collect , as 28 applicable, a nonrefundable application fee from each 29 registration applicant, and an initial registration fee , a 30 registration amendment fee, and a renewal of registration fee 31 from each registered school. 32 3. a. A postsecondary registration fund is created in 33 the state treasury under the control of the commission. 34 Fees collected under this section shall be deposited in the 35 -4- LSB 1204SV (3) 84 kh/sc 4/ 7

S.F. 125 general postsecondary registration fund of the state and are 1 appropriated to the commission for purposes of administering 2 this chapter. 3 b. The moneys credited to the postsecondary registration 4 fund are not subject to section 8.33, and moneys in the fund 5 shall not be transferred, used, obligated, appropriated, 6 or otherwise encumbered except as provided by law. 7 Notwithstanding section 12C.7, subsection 2, interest or 8 earnings on moneys deposited in the postsecondary registration 9 fund shall be credited to the fund . 10 Sec. 9. Section 261B.9, subsection 5, Code 2011, is amended 11 to read as follows: 12 5. Whether the postsecondary credential or certificate 13 issued, awarded, or credited to a student upon completion 14 of the course or the fact of completion of the course is 15 applicable toward a degree granted by the school and, if so, 16 under what circumstances the application will be made. 17 Sec. 10. Section 261B.11, subsections 1, 2, 4, 7, 9, and 11, 18 Code 2011, are amended to read as follows: 19 1. Schools and educational programs conducted by firms, 20 corporations, or persons solely for the training of their own 21 employees. 22 2. Apprentice or other training programs provided by labor 23 unions solely to members or applicants for membership. 24 4. Seminars, refresher courses, and programs of instruction 25 sponsored by professional, business, or farming organizations 26 or associations solely for the members and employees of members 27 of these organizations or associations. 28 7. Schools or courses of instruction or courses of 29 training that are offered by a vendor solely to the purchaser 30 or prospective purchaser of the vendor’s product when the 31 objective of the school or course is to enable the purchaser 32 or the purchaser’s employees to gain skills and knowledge to 33 enable the purchaser to use the product. 34 9. Postsecondary educational institutions licensed by the 35 -5- LSB 1204SV (3) 84 kh/sc 5/ 7

S.F. 125 state of Iowa under section 157.8 or 158.7 prior to July 1, 1 2009, to conduct business operate as a school of cosmetology 2 arts and sciences or a barber school in the state. 3 11. Postsecondary educational institutions offering 4 programs limited to nondegree specialty vocational training 5 programs for which the school does not award a postsecondary 6 credential . 7 Sec. 11. NEW SECTION . 261B.11A Ineligibility for state 8 student financial aid programs. 9 1. Students attending schools required to register under 10 this chapter are ineligible for state student financial aid 11 programs established under chapter 261. 12 2. A school required to register under this chapter is 13 prohibited from offering state aid or advertising that state 14 aid is or may be available to students attending the school. 15 EXPLANATION 16 This bill modifies Code chapter 261B which regulates the 17 registration of postsecondary schools by the college student 18 aid commission. Modifications include provisions which provide 19 that students attending such schools are ineligible for state 20 student financial aid programs, authorize the commission 21 to require additional information from schools, establish 22 registration application and registration amendment fees, and 23 establish a postsecondary registration fund comprised of the 24 registration fees collected by the commission. The moneys in 25 the fund are appropriated to the commission for purposes of 26 administering the chapter. 27 The bill specifies that schools that maintain or conduct one 28 or more courses of instruction offered in this state or which 29 have a presence in this state and offer courses in this state 30 or other states or foreign countries are required to register 31 with the commission. The Code chapter currently includes 32 exceptions for certain schools and educational programs. 33 Currently, registrations must be renewed every four years 34 and upon substantive change in location or accreditation. To 35 -6- LSB 1204SV (3) 84 kh/sc 6/ 7

S.F. 125 this renewal requirement, the bill adds that registrations 1 shall be amended upon any substantive change in program 2 offering. A substantive change in program offering is defined 3 as when a school proposes to offer a program that requires the 4 approval of the state board of education or other state agency. 5 The bill authorizes the commission to require additional 6 information from a school if the additional information is 7 deemed necessary in order to evaluate the school’s registration 8 application. A registered school’s promotional materials shall 9 reference that it is registered with the commission and shall 10 include the commission’s contact information for students who 11 wish to register a complaint about the school. 12 The commission is also authorized to grant a provisional 13 registration, the duration of which is to be determined by the 14 commission, to a school that is not accredited by an agency or 15 organization recognized by the U.S. department of education. 16 During the provisional registration period, the school must 17 submit to the commission, at six-month intervals, documentation 18 regarding its progress toward achieving accreditation. The 19 commission may renew the provisional registration at its 20 discretion based on documentation that the school is making 21 progress toward accreditation. 22 The bill prohibits schools required to register with the 23 commission from offering state aid or advertising that state 24 aid is or may be available to students attending the school. 25 The bill makes changes to the Code chapter’s definitions of 26 “degree”, “presence”, and “school” and adds definitions for 27 “offered in this state” and “postsecondary credential”. 28 The Code currently authorizes the commission to issue a 29 cease and desist order to a school it believes is in violation 30 of Code chapter 261B and to seek judicial enforcement of the 31 order. Also, a violation of the Code chapter constitutes 32 an unlawful practice under Code section 714.16, relating to 33 consumer fraud. 34 -7- LSB 1204SV (3) 84 kh/sc 7/ 7