Bill Text: IA SF2124 | 2013-2014 | 85th General Assembly | Introduced

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Bill Title: A bill for an act relating to the duties and authority of the college student aid commission relating to the registration of certain postsecondary schools, to interstate reciprocity agreements, and to registration fees collected by the commission. (See SF 2271.)

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2014-02-06 - Subcommittee, Quirmbach, Boettger, and Hart. S.J. 214. [SF2124 Detail]

Download: Iowa-2013-SF2124-Introduced.html

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Senate File 2124 - Introduced
SENATE FILE 2124
BY QUIRMBACH and BOETTGER
A BILL FOR
An Act relating to the duties and authority of the college
student aid commission relating to the registration of
certain postsecondary schools, to interstate reciprocity
agreements, and to registration fees collected by the
commission.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 261.2, subsection 11, paragraph a, Code
2014, is amended to read as follows:
a. The institutions are not required to register under
chapter 261B or the institutions are participating resident
institutions as defined in section 261G.2 that volunteer to
register under section 261B.11B .
Sec. 2. Section 261.2, Code 2014, is amended by adding the
following new subsection:
NEW SUBSECTION . 13. Enter into and administer,
or recognize, an interstate reciprocity agreement for
the provision of postsecondary distance education by a
postsecondary institution pursuant to chapter 261G. The
commission shall adopt rules establishing application
procedures and criteria for the authorization of postsecondary
institutions providing postsecondary distance education under
interstate reciprocity agreements pursuant to chapter 261G
and for the review and approval of interstate reciprocity
agreements the commission may enter into or recognize pursuant
to this subsection and chapter 261G. The commission may accept
an authorization granted by another state to a postsecondary
institution under an interstate reciprocity agreement to
deliver postsecondary distance education.
Sec. 3. Section 261B.8, subsection 3, Code 2014, is amended
to read as follows:
3. A postsecondary registration fund is created in the
state treasury under the control of the commission. Fees
collected under this section shall be deposited in the general
postsecondary registration fund of the state . Moneys in the
fund are appropriated to the commission and shall be used by
the commission to administer this chapter and chapter 261G.
Notwithstanding section 8.33, moneys in the fund shall not
revert to the general fund of the state at the end of a fiscal
year. Notwithstanding section 12C.7, interest or earnings on
moneys in the fund shall be credited to the fund.
Sec. 4. NEW SECTION . 261B.11B Voluntary registration.
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A school or other postsecondary educational institution
that is exempt under section 261B.11 may voluntarily register
under chapter 261B in order to comply with chapter 261G or
for purposes of institutional eligibility under 34 C.F.R.
§600.9(a).
Sec. 5. NEW SECTION . 261G.1 Purpose.
The purpose of this chapter is to authorize the college
student aid commission to enter into or recognize agreements
that will create interstate reciprocity in the regulation of
postsecondary distance education for the purpose of encouraging
cost savings for students and greater efficiencies and
effectiveness for institutions of higher education providing
distance education.
Sec. 6. NEW SECTION . 261G.2 Definitions.
1. “Commission” means the college student aid commission
created pursuant to section 261.1.
2. “Interstate reciprocity agreement” means an interstate
reciprocity agreement entered into and administered, or
recognized, by the commission in accordance with section 261.2,
subsection 13.
3. “Participating institution” means an institution that
meets the definition of subsection 4 or 5.
4. “Participating nonresident institution” means a
postsecondary institution without a physical presence in
Iowa that is offering instructional programs or courses in
Iowa leading to a degree, is a member in good standing in an
interstate reciprocity agreement, and is registered with and
regulated by a state agency or authority that is a member in
good standing in an interstate reciprocity agreement.
5. “Participating resident institution” means a
postsecondary institution located in Iowa that is a member in
good standing in an interstate reciprocity agreement and is
offering instructional programs or courses in Iowa leading
to a degree, including but not limited to the following
institutions:
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a. A community college as defined in section 260C.2.
b. An institution of higher learning governed by the state
board of regents.
c. An accredited private institution as defined in section
261.9.
d. A school or postsecondary educational institution that
voluntarily registers with the commission pursuant to section
261B.11B in order to comply with this chapter or for purposes
of institutional eligibility under 34 C.F.R. §600.9(a).
6. “Physical presence” means any of the following:
a. Establishing a physical location in Iowa for students to
receive synchronous or asynchronous instruction.
b. Requiring students to physically meet in a location in
Iowa for instructional purposes.
c. Establishing an administrative office in Iowa, for any of
the following purposes:
(1) Providing information to prospective students or the
general public about the institution, for enrolling students,
or for providing services to enrolled students.
(2) Providing office space to instructional or
noninstructional staff.
(3) Establishing an Iowa mailing address, street address,
or telephone number.
Sec. 7. NEW SECTION . 261G.3 Execution of duties.
The commission shall only enter into or recognize an
interstate reciprocity agreement if the agreement contains
sufficient consumer protection provisions and is otherwise in
the best interests of students enrolled in institutions of
higher education in this state.
Sec. 8. NEW SECTION . 261G.4 Effect of agreement.
1. Notwithstanding any other provision of law to the
contrary, a participating nonresident institution shall not be
required to register under chapter 261B or to comply with the
registration and disclosure requirements of chapter 261 or 261B
or sections 714.17, 714.18, 714.19, 714.20, 714.21, 714.21A,
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714.23, 714.24, or 714.25 if the provisions of an interstate
reciprocity agreement prohibit such registration or compliance.
2. Notwithstanding any other provision of law to the
contrary, a participating resident institution shall be
required to register under chapter 261B or to comply with the
registration and disclosure requirements of chapter 261 or 261B
or sections 714.17, 714.18, 714.19, 714.20, 714.21, 714.21A,
714.23, 714.24, or 714.25 if the provisions of the interstate
reciprocity agreement require such registration or compliance.
3. A participating institution offering instructional
programs or courses under an interstate reciprocity agreement
entered into or recognized by the commission must notify the
commission of any change of status relating in any way to the
interstate reciprocity agreement.
4. This chapter shall not be construed to prevent the
commission or the state from requiring a school or other
postsecondary educational institution to register under chapter
261B or from taking enforcement action against a participating
institution in any of the following circumstances:
a. A participating nonresident institution leaves or
otherwise ceases to be a member in good standing in an
interstate reciprocity agreement.
b. The participating institution is physically or
administratively housed in a state that does not join or ceases
to be a member in good standing in an interstate reciprocity
agreement entered into or recognized by the commission.
c. The discovery of acts or omissions subject to the
enforcement action but which occurred prior to the commission’s
entering into or recognizing an interstate reciprocity
agreement.
5. Students attending a participating nonresident
institution are ineligible for state student financial aid
programs established under chapter 261.
Sec. 9. NEW SECTION . 261G.5 Postsecondary registration
fees.
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1. The commission shall set by rule and collect a
nonrefundable initial registration fee and a renewal of
registration fee from each participating institution that
voluntarily registers with the commission pursuant to section
261B.11B in order to comply with this chapter or for purposes
of institutional eligibility under 34 C.F.R. §600.9(a).
2. Fees shall be set by rule not more than once each
year and shall be based upon the costs of administering this
chapter.
3. Fees collected under this section shall be deposited in a
separate account in the postsecondary registration fund created
pursuant to section 261B.8, subsection 3, and shall be used for
purposes of administering this chapter.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill relates to the college student aid commission’s
duties and authority to register postsecondary schools and to
enter into and administer, or recognize, interstate reciprocity
agreements. The bill also provides for the collection and
appropriation of fees collected when schools and postsecondary
institutions register with the commission.
The bill creates new Code chapter 261G, and establishes that
the purpose of the Code chapter is to authorize the commission
to enter into or recognize agreements that will create
interstate reciprocity in the regulation of postsecondary
distance education for the purpose of encouraging cost savings
for students and greater efficiencies and effectiveness for
institutions of higher education providing distance education.
The commission shall only enter into or recognize an interstate
reciprocity agreement if the agreement contains sufficient
consumer protection provisions and is otherwise in the best
interest of students enrolled in institutions of higher
education in this state.
The bill permits the provisions of an interstate reciprocity
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agreement to override the registration provisions of Code
chapter 261B, the compliance requirements for registration and
disclosure under Code chapters 261 and 261B, and compliance
with Code sections 714.17 through 714.25, relating to unlawful
advertising and selling of educational courses, evidence of
financial responsibility, exemptions for certain educational
institutions, one lifetime contract per person limitation,
civil and criminal penalties, refund policies, and disclosure.
The bill provides that new Code chapter 261G shall not
prevent the commission or the state from requiring a school or
other postsecondary educational institution to register under
Code chapter 261B or from taking enforcement action against
a participating institution if a participating nonresident
institution leaves or otherwise ceases to be a member in
good standing in an interstate reciprocity agreement, the
postsecondary institution is physically or administratively
housed in a state that does not join or ceases to be a member
in good standing in an interstate reciprocity agreement, or
for acts or omissions subject to the enforcement action which
occurred prior to the commission entering into or recognizing
an interstate reciprocity agreement.
The bill provides that students attending a participating
nonresident institution are ineligible for state student
financial aid programs.
The bill amends Code section 261.2, which provides for
the commission’s duties, to direct the commission to enter
into and administer, or recognize, an interstate reciprocity
agreement for the provision of postsecondary distance education
by a postsecondary institution under new Code chapter 261G.
The commission must adopt rules establishing application
procedures and criteria for the authorization of postsecondary
institutions providing postsecondary distance education under
interstate reciprocity agreements and for the review and
approval of such agreements. The commission may accept an
authorization granted by another state to deliver postsecondary
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distance education under an interstate reciprocity agreement.
Currently, students receiving state-funded scholarships
and grants cannot use such scholarships and grants at schools
required to register under Code chapter 261B. The bill
provides that the limitation does not apply to a resident
postsecondary institution that is exempt from the registration
requirements of Code chapter 261B and is participating in an
interstate reciprocity agreement to provide postsecondary
distance education. However, the bill also provides that a
school or other postsecondary educational institution that is
exempt from registering under Code chapter 261B may voluntarily
register to comply with Code chapter 261G or for purposes of
institutional eligibility under the federal Higher Education
Act of 1965, as amended.
Under current law, registration fees collected under Code
chapter 261B are deposited in the general fund of the state.
The bill creates a postsecondary registration fund in the state
treasury under the control of the commission for fees collected
for postsecondary school registration required pursuant to Code
chapter 261B and for registration of schools and postsecondary
institutions that volunteer to register with the commission.
The fees are appropriated to the commission and must be
deposited into a separate account in the new fund and used for
the administration of the new Code chapter.
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