Bill Text: IA SF472 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the registration of postsecondary schools with the college student aid commission, and to the postsecondary registration fund under the control of the commission.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-02 - Subcommittee: Kraayenbrink, Quirmbach, and Sweeney. S.J. 497. [SF472 Detail]
Download: Iowa-2021-SF472-Introduced.html
Senate
File
472
-
Introduced
SENATE
FILE
472
BY
QUIRMBACH
(COMPANION
TO
HF
375
BY
DOLECHECK)
A
BILL
FOR
An
Act
relating
to
the
registration
of
postsecondary
schools
1
with
the
college
student
aid
commission,
and
to
the
2
postsecondary
registration
fund
under
the
control
of
the
3
commission.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
261B.8,
subsection
3,
Code
2021,
is
1
amended
to
read
as
follows:
2
3.
A
postsecondary
registration
fund
is
created
in
the
state
3
treasury
under
the
control
of
the
commission.
Fees
collected
4
under
this
section
and
any
other
moneys
approved
by
the
5
commission
shall
be
deposited
in
the
postsecondary
registration
6
fund.
Moneys
in
the
fund
are
appropriated
to
the
commission
7
and
shall
be
used
by
the
commission
to
administer
this
8
chapter
and
chapter
261G
for
any
of
the
purposes
set
forth
in
9
subsection
4
.
Notwithstanding
section
8.33
,
moneys
in
the
fund
10
shall
not
revert
to
the
general
fund
of
the
state
at
the
end
11
of
a
fiscal
year.
Notwithstanding
section
12C.7
,
interest
or
12
earnings
on
moneys
in
the
fund
shall
be
credited
to
the
fund.
13
Sec.
2.
Section
261B.8,
Code
2021,
is
amended
by
adding
the
14
following
new
subsection:
15
NEW
SUBSECTION
.
4.
Moneys
in
the
fund
may
be
used
for
any
16
of
the
following
purposes:
17
a.
To
administer
this
chapter
and
chapter
261G.
18
b.
To
procure,
evaluate,
and
store
school
records
needed
to
19
establish
the
validity
of
claims
against
a
school
for
failure
20
to
faithfully
perform
all
contracts
and
agreements.
21
c.
To
pay
institutional
charges
on
behalf
of
Iowans
who
22
enrolled
at
the
school.
23
d.
To
support
an
arrangement
in
which
the
school
provides
24
its
current
students
with
the
opportunity
to
complete
the
25
students’
courses
of
study
when
the
school
closes,
including
26
any
activities
designed
to
facilitate
the
transition
of
such
27
students
to
another
postsecondary
educational
institution.
28
e.
To
pay
private
educational
loan
debt
incurred
by
Iowans
29
for
attendance
at
the
school.
30
f.
To
reimburse
Iowans
who
enrolled
at
the
school
for
other
31
financial
loss,
as
determined
by
the
commission.
32
g.
For
other
purposes
prescribed
by
rule
by
the
commission.
33
Sec.
3.
Section
714.18,
subsection
1,
unnumbered
paragraph
34
1,
Code
2021,
is
amended
to
read
as
follows:
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Except
as
otherwise
provided
in
subsection
2
or
3
,
every
1
Every
person,
firm,
association,
or
corporation
maintaining
2
or
conducting
in
Iowa
any
educational
course
by
classroom
3
instruction
or
by
correspondence
or
by
other
delivery
method,
4
or
soliciting
in
Iowa
the
sale
of
such
course,
shall
file
with
5
the
college
student
aid
commission
,
in
a
format
prescribed
by
6
the
commission,
all
of
the
following:
7
Sec.
4.
Section
714.18,
subsection
1,
paragraph
a,
Code
8
2021,
is
amended
to
read
as
follows:
9
a.
A
continuous
corporate
surety
bond
to
the
state
of
10
Iowa
in
the
sum
of
fifty
thousand
dollars
or
ten
percent
11
of
the
total
annual
tuition
determined
in
accordance
with
12
subsection
2,
whichever
is
less,
conditioned
on
the
faithful
13
performance
of
all
contracts
and
agreements
with
students
made
14
by
such
person,
firm,
association,
or
corporation,
or
their
15
salespersons
;
but
the
.
The
aggregate
liability
of
the
surety
16
for
all
breaches
of
the
conditions
of
the
bond
shall
not
exceed
17
the
sum
of
the
bond.
The
surety
on
the
bond
may
cancel
the
bond
18
upon
giving
thirty
days’
written
notice
to
the
college
student
19
aid
commission
and
thereafter
shall
be
relieved
of
liability
20
for
any
breach
of
condition
occurring
after
the
effective
date
21
of
the
cancellation.
22
Sec.
5.
Section
714.18,
subsections
2,
3,
4,
and
5,
Code
23
2021,
are
amended
to
read
as
follows:
24
2.
A
school
licensed
under
the
provisions
of
section
157.8
25
or
158.7
shall
file
that
files
with
the
college
student
aid
26
commission
the
following:
27
a.
(1)
A
a
continuous
corporate
surety
bond
to
the
state
28
of
Iowa
in
the
a
sum
of
less
than
fifty
thousand
dollars
or
ten
29
percent
of
the
total
annual
tuition
collected,
whichever
is
30
less,
conditioned
on
the
faithful
performance
of
all
contracts
31
and
agreements
with
students
made
by
such
school.
A
school
32
desiring
to
file
a
surety
bond
based
on
a
percentage
of
annual
33
tuition
shall
provide
to
the
college
student
aid
commission,
34
in
the
form
format
prescribed
by
the
commission,
a
notarized
35
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statement
attesting
to
the
total
amount
of
tuition
collected
1
the
school
charged
to
students
in
the
immediately
preceding
2
twelve-month
period
fiscal
year
.
The
commission
shall
3
determine
the
sufficiency
of
the
statement
and
the
amount
of
4
the
bond
or,
as
permitted
under
subsection
3,
letter
of
credit
.
5
Tuition
information
submitted
pursuant
to
this
subparagraph
6
subsection
shall
be
kept
confidential.
7
(2)
If
the
school
has
filed
a
performance
bond
with
an
8
agency
of
the
United
States
government
pursuant
to
federal
9
law,
the
college
student
aid
commission
shall
reduce
the
bond
10
required
by
this
paragraph
“a”
by
an
amount
equal
to
the
amount
11
of
the
federal
bond.
12
(3)
The
aggregate
liability
of
the
surety
for
all
breaches
13
of
the
conditions
of
the
bond
shall
not
exceed
the
sum
of
14
the
bond.
The
surety
on
the
bond
may
cancel
the
bond
upon
15
giving
thirty
days’
written
notice
to
the
college
student
aid
16
commission
and
thereafter
shall
be
relieved
of
liability
for
17
any
breach
of
condition
occurring
after
the
effective
date
of
18
the
cancellation.
19
(4)
3.
a.
The
college
student
aid
commission
may
accept
a
20
letter
of
credit
issued
by
a
state
or
federally
chartered
bank
21
or
credit
union
in
lieu
of
and
for
the
amount
of
the
corporate
22
surety
bond
required
by
subparagraphs
(1)
through
(3),
as
23
applicable
under
subsection
2
.
24
b.
The
statement
required
in
subsection
1
,
paragraph
“b”
.
25
For
purposes
of
this
chapter
and
chapter
261B,
a
letter
of
26
credit
must
meet
all
of
the
following
conditions:
27
(1)
Be
payable
to
the
commission.
28
(2)
Be
valid
for
a
period
of
at
least
one
year
from
the
29
date
of
issuance
and
subject
to
renewal
as
required
by
the
30
commission.
31
(3)
Allow
the
commission
to
draw
one
or
multiple
32
installments
of
the
total
letter
of
credit
amount
upon
making
33
the
required
presentations
to
the
issuer.
34
c.
The
materials
required
in
subsection
1
,
paragraph
“c”
For
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purposes
of
this
section,
“letter
of
credit”
means
a
financial
1
instrument
subject
to
the
provisions
of
chapter
554,
article
5,
2
with
irrevocable
terms
and
conditions
that
cannot
be
modified
3
or
canceled
after
issuance
without
the
consent
of
all
of
the
4
parties
.
5
4.
If
a
letter
of
credit
accepted
by
the
college
student
6
aid
commission
under
subsection
3
is
canceled,
revoked,
not
7
renewed,
or
otherwise
fails
to
be
of
full
force
and
effect,
the
8
school
shall
comply
with
the
provisions
of
subsection
2.
9
3.
5.
This
section
shall
not
apply
to
the
provision
of
10
an
educational
course
of
flight
instruction
under
regulations
11
promulgated
by
the
federal
aviation
administration
for
which
12
students
do
not
pay
tuition
in
advance
of
instruction
and
13
which
students
may
cancel
at
any
time
with
no
further
monetary
14
obligation.
15
Sec.
6.
Section
714.19,
subsections
1,
2,
3,
4,
and
6,
Code
16
2021,
are
amended
to
read
as
follows:
17
1.
Colleges
or
universities
authorized
by
the
laws
of
18
Iowa
or
any
other
state
or
foreign
country
to
grant
degrees
19
A
community
college
established
under
chapter
260C
or
an
20
institution
of
higher
learning
under
the
control
of
the
state
21
board
of
regents
.
22
2.
Schools
of
nursing
accredited
by
the
board
of
nursing
23
or
an
equivalent
public
board
of
another
state
or
foreign
24
country
A
college
or
university
created
or
authorized
by
any
25
other
state
to
grant
degrees,
in
which
state
the
college
or
26
university
maintains
its
principal
domicile
and
from
which
the
27
college
or
university
receives
public
funds
to
support
the
28
operating
costs
of
the
college
or
university
.
29
3.
Public
schools
A
school
district
described
in
chapter
30
274
.
31
4.
Private
and
nonprofit
elementary
or
secondary
schools
32
recognized
by
the
department
of
education
or
a
local
the
board
33
of
directors
of
a
school
board
district
for
the
purpose
of
34
complying
with
chapter
299
and
employing
certified
teachers
35
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licensed
under
chapter
272
.
1
6.
Schools
and
educational
programs
conducted
by
firms,
2
corporations,
or
persons
for
which
no
fee
is
charged
to
any
3
student
or
any
other
party
who
assumes
the
cost
of
education
4
on
the
student’s
behalf
.
5
Sec.
7.
Section
714.19,
subsection
8,
Code
2021,
is
amended
6
by
striking
the
subsection.
7
Sec.
8.
Section
714.23,
Code
2021,
is
amended
to
read
as
8
follows:
9
714.23
Refund
policies
——
penalty.
10
1.
a.
For
the
purposes
of
this
section
and
section
714.25
,
11
“postsecondary
educational
program”
:
12
a.
“Payment
period”
means
the
same
as
set
forth
in
34
C.F.R.
13
§668.4.
14
b.
“Postsecondary
educational
program”
means
a
series
of
15
postsecondary
educational
courses
that
lead
to
a
recognized
16
educational
credential
such
as
including
but
not
limited
to
an
17
academic
or
professional
degree,
diploma,
or
license
,
or
other
18
certification
or
designation,
regardless
of
whether
the
school
19
awards
the
credential
.
20
b.
For
the
purposes
of
this
section
,
“school
period”
21
c.
“Proprietary
school”
means
a
person
offering
a
22
postsecondary
educational
program,
for
profit.
23
d.
“School
period”
means
the
course,
term,
payment
period,
24
postsecondary
educational
program,
or
other
period
for
which
25
the
school
assessed
tuition
charges
to
the
student.
A
school
26
that
assesses
tuition
charges
to
the
student
at
the
beginning
27
of
each
course,
term,
payment
period,
or
other
period
that
is
28
shorter
than
the
postsecondary
educational
program’s
length
29
shall
base
its
tuition
refund
on
the
amount
of
tuition
costs
30
the
school
charged
for
the
course,
term,
or
other
period
in
31
which
the
student
terminated.
A
school
shall
not
base
its
32
tuition
refund
calculation
on
any
portion
of
a
postsecondary
33
educational
program
that
remains
after
a
student
terminates
34
unless
the
student
was
charged
for
that
remaining
portion
of
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the
postsecondary
educational
program
before
the
student’s
1
termination
and
the
student
began
attendance
in
the
school
term
2
or
course.
3
2.
a.
A
proprietary
school
shall
refund
all
tuition
charges
4
to
a
student
who
withdraws
within
the
first
two
calendar
weeks
5
of
instruction.
6
b.
A
person
offering
at
least
one
postsecondary
educational
7
program,
for
profit,
that
is
more
than
four
months
in
length
8
and
leads
to
a
recognized
educational
credential,
proprietary
9
school
shall
make
a
pro
rata
refund
of
tuition
charges
to
an
10
Iowa
resident
a
student
who
terminates
from
any
of
the
school’s
11
postsecondary
educational
programs
or
courses
after
the
first
12
two
calendar
weeks
in
an
amount
that
is
not
less
than
ninety
13
ninety-five
percent
of
the
amount
of
tuition
charged
to
the
14
student
multiplied
by
the
ratio
of
the
number
of
calendar
days
15
remaining
in
the
school
period
until
the
date
equivalent
to
16
the
completion
of
sixty
percent
of
the
calendar
days
in
the
17
school
period
to
the
total
number
of
calendar
days
in
the
18
school
period
until
the
date
equivalent
to
the
completion
of
19
sixty
percent
of
the
calendar
days
in
the
school
period
.
If
20
a
terminating
student
has
completed
sixty
percent
or
more
21
of
a
school
period,
the
school
offering
the
postsecondary
22
educational
program
is
not
required
to
refund
tuition
charges
23
to
the
student.
24
c.
(1)
A
proprietary
school
as
provided
in
subparagraph
(2)
25
shall
provide
to
a
student
who
terminates
after
the
first
two
26
calendar
weeks
a
refund
of
tuition
charges
in
an
amount
that
27
is
not
less
than
ninety-five
percent
of
the
amount
of
tuition
28
charged
to
the
student
multiplied
by
the
ratio
of
the
remaining
29
number
of
calendar
days
in
the
school
period
to
the
total
30
number
of
calendar
days
in
the
school
period.
31
(2)
This
paragraph
“c”
applies
to
a
proprietary
school
32
whose
cohort
default
rate
for
students
under
the
Stafford
33
loan
program
as
reported
by
the
United
States
department
of
34
education
for
the
most
recent
federal
fiscal
year
is
more
than
35
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472
one
hundred
ten
percent
of
the
national
average
cohort
default
1
rate
of
all
schools
for
the
same
federal
fiscal
year
or
six
2
percent,
whichever
is
higher.
3
3.
Notwithstanding
the
provisions
of
subsection
2
,
the
4
following
tuition
refund
policy
shall
apply:
5
a.
If
a
terminating
student
has
completed
sixty
percent
or
6
more
of
a
school
period,
the
person
offering
the
postsecondary
7
educational
program
is
not
required
to
refund
tuition
charges
8
to
the
student.
However,
if,
at
any
time,
a
student
terminates
9
a
postsecondary
educational
program
due
to
the
student’s
10
physical
incapacity
or,
for
a
program
that
requires
classroom
11
instruction,
due
to
the
transfer
of
the
student’s
spouse’s
12
employment
to
another
city,
the
terminating
student
shall
13
receive
a
refund
of
tuition
charges
in
an
amount
that
equals
14
the
amount
of
tuition
charged
to
the
student
multiplied
by
the
15
ratio
of
the
remaining
number
of
calendar
days
in
the
school
16
period
to
the
total
number
of
calendar
days
in
the
school
17
period.
18
b.
A
school
shall
provide
to
a
terminating
student
a
19
refund
of
tuition
charges
in
an
amount
that
is
not
less
than
20
ninety
percent
of
the
amount
of
tuition
charged
to
the
student
21
multiplied
by
the
ratio
of
the
remaining
number
of
calendar
22
days
in
the
school
period
to
the
total
number
of
calendar
23
days
in
the
school
period.
This
paragraph
“b”
applies
to
24
those
persons
offering
at
least
one
postsecondary
educational
25
program
of
more
than
four
months
in
length,
for
profit,
26
whose
cohort
default
rate
for
students
under
the
Stafford
27
loan
program
as
reported
by
the
United
States
department
of
28
education
for
the
most
recent
federal
fiscal
year
is
more
29
than
one
hundred
ten
percent
of
the
national
average
cohort
30
default
rate
of
all
schools
for
the
same
federal
fiscal
year
31
or
six
percent,
whichever
is
higher.
A
proprietary
school
32
that
assesses
tuition
charges
to
the
student
at
the
beginning
33
of
each
course,
term,
payment
period,
or
other
period
that
is
34
shorter
than
the
postsecondary
educational
program’s
length
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shall
base
its
tuition
refund
on
the
amount
of
tuition
costs
1
the
school
charged
for
the
course,
term,
or
other
period
in
2
which
the
student
terminated.
A
school
shall
not
base
its
3
tuition
refund
calculation
on
any
portion
of
a
postsecondary
4
educational
program
that
remains
after
a
student
terminates
5
unless
the
student
was
charged
for
that
remaining
portion
of
6
the
postsecondary
educational
program
before
the
student’s
7
termination
and
the
student
began
attendance
in
the
school
term
8
or
course.
9
4.
Notwithstanding
the
provisions
of
subsection
2,
10
paragraphs
“b”
and
“c”
,
if,
at
any
time,
a
student
terminates
11
a
postsecondary
educational
program
after
the
first
two
12
calendar
weeks
due
to
the
student’s
physical
incapacity
or,
13
for
a
program
that
requires
classroom
instruction,
due
to
the
14
transfer
of
the
student’s
spouse’s
employment
to
another
city,
15
the
terminating
student
shall
receive
a
refund
of
the
tuition
16
charges
in
an
amount
that
equals
the
amount
of
tuition
charged
17
to
the
student
multiplied
by
the
ratio
of
the
remaining
number
18
of
calendar
days
in
the
school
period
to
the
total
number
of
19
calendar
days
in
the
school
period.
20
5.
In
the
case
of
a
program
in
which
student
progress
is
21
measured
only
in
clock
hours,
all
occurrences
of
“calendar
22
days”
in
subsections
2
and
3
4
shall
be
replaced
with
23
“scheduled
clock
hours”.
24
5.
a.
6.
A
student
who
does
not
receive
a
tuition
refund
25
up
to
the
full
refund
of
tuition
charges
due
to
the
effect
26
of
an
interstate
reciprocity
agreement
under
section
261G.4,
27
subsection
1
,
may
apply
to
the
attorney
general
for
a
refund
28
in
a
sum
that
represents
the
difference
between
any
tuition
29
refund
received
from
the
school
and
the
full
refund
of
tuition
30
charges.
For
purposes
of
this
subsection
,
“full
refund
of
31
tuition
charges”
means
the
monetary
sum
of
the
refund
for
which
32
the
student
would
be
eligible
pursuant
to
the
application
of
33
this
section
.
34
b.
7.
A
tuition
refund
fund
is
created
as
a
separate
fund
35
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in
the
office
of
the
treasurer
of
state
under
the
control
1
of
the
attorney
general.
Moneys
credited
to
the
fund
shall
2
include
amounts
appropriated
by
the
general
assembly
and
moneys
3
received
as
a
result
of
a
court
order,
judgment,
or
settlement
4
which
specifically
directs
that
moneys
be
used
for
the
purpose
5
of
providing
student
tuition
refunds,
or
which
authorizes
the
6
attorney
general
to
use
moneys
for
any
other
purpose
at
the
7
discretion
of
the
attorney
general.
All
moneys
credited
to
8
the
fund
are
appropriated
and
made
available
to
the
attorney
9
general
for
such
purposes.
For
each
fiscal
year,
the
attorney
10
general
may
expend
all
moneys
in
the
fund
to
provide
tuition
11
refunds
to
eligible
students.
Notwithstanding
section
8.33
,
12
any
balance
in
the
fund
on
June
30
of
each
fiscal
year
shall
not
13
revert
to
the
general
fund
of
the
state,
but
shall
be
available
14
for
purposes
of
this
subsection
in
subsequent
fiscal
years.
15
Notwithstanding
section
12C.7
,
interest
or
earnings
on
the
16
moneys
in
the
fund
shall
be
credited
to
the
fund.
17
6.
8.
A
refund
of
tuition
charges
shall
be
provided
to
18
the
student
within
forty-five
days
following
the
date
of
the
19
school’s
determination
that
a
student
has
terminated
from
a
20
postsecondary
educational
program.
21
7.
9.
A
student
who
terminates
a
postsecondary
educational
22
program
shall
not
be
charged
any
fee
or
other
monetary
penalty
23
for
terminating
the
postsecondary
educational
program,
other
24
than
a
reduction
in
tuition
refund
as
specified
in
this
25
section
.
26
10.
A
proprietary
school
shall
apply
the
refund
policy
27
it
adopts
in
accordance
with
this
section
to
all
students
28
who
attend
on-campus
classes
or
at
instructional
sites
29
in
Iowa
and
to
all
Iowa
resident
students
who
attend
the
30
school’s
distance
education
programs.
A
proprietary
school
31
offering
instructional
programs
or
courses
under
an
interstate
32
reciprocity
agreement
entered
into
or
recognized
by
the
33
commission
under
chapter
261G
shall
apply
the
policy
it
adopts
34
under
this
section
to
Iowa
resident
and
nonresident
students
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who
attend
distance
education
programs
the
school
offers
under
1
the
interstate
reciprocity
agreement.
2
11.
This
section
does
not
apply
to
any
of
the
following:
3
a.
Personal
vehicle
driving
education
schools.
4
b.
Postsecondary
vocational
schools
that
offer
solely
5
discrete
continuing
education
courses.
6
c.
A
for-profit
school
that
offers
solely
programs
for
which
7
the
sum
of
tuition,
fees,
instructional
materials,
technology,
8
and
other
items
required
for
program
completion
is
less
than
9
three
thousand
dollars.
10
8.
12.
A
violation
of
this
section
is
a
simple
misdemeanor.
11
Sec.
9.
Section
714.24,
subsections
2,
5,
and
7,
Code
2021,
12
are
amended
to
read
as
follows:
13
2.
An
entity
that
claims
an
exemption
under
section
14
714.19
must
file
an
exemption
claim
with
the
commission.
The
15
commission
may
approve
or
deny
the
exemption
claim.
Except
16
for
a
school
that
claims
an
exemption
under
section
714.19,
17
subsection
1,
2,
3,
or
10
,
a
filing
of
a
claim
for
an
exemption
18
pursuant
to
section
714.19
must
be
completed
at
least
once
19
every
two
years.
20
5.
The
commission
may,
at
its
discretion,
require
a
A
21
proprietary
school
that
must
comply
with
section
sections
22
714.23
to
and
714.25
shall
submit
its
tuition
refund
policy
23
documentation
of
compliance
with
sections
714.23
and
714.25
24
to
the
commission
for
its
review
and
approval
as
part
of
the
25
evidence
of
financial
responsibility
filed
pursuant
to
section
26
714.18
.
27
7.
Except
as
provided
in
section
714.18,
subsection
2
,
28
paragraph
“a”
,
the
information
submitted
under
sections
714.18
,
29
714.19,
714.23
,
and
714.25
are
public
records
under
chapter
22
.
30
Sec.
10.
Section
714.25,
Code
2021,
is
amended
to
read
as
31
follows:
32
714.25
Disclosure.
33
1.
For
purposes
of
this
section
,
“proprietary
school”
means
34
a
person
offering
a
postsecondary
educational
program,
for
35
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profit,
that
is
more
than
four
months
in
length
and
leads
to
1
a
recognized
educational
credential,
such
as
an
academic
or
2
professional
degree,
diploma,
or
license
the
same
as
defined
in
3
section
714.23,
subsection
1
.
4
2.
A
proprietary
school
shall,
prior
to
the
time
a
student
5
is
obligated
for
payment
of
any
moneys,
inform
the
student
,
and
6
the
college
student
aid
commission
,
and
in
the
case
of
a
school
7
licensed
under
section
157.8
,
the
board
of
cosmetology
arts
8
and
sciences
or
in
the
case
of
a
school
licensed
under
section
9
158.7
,
the
board
of
barbering,
of
all
of
the
following:
10
a.
The
current
total
cost
of
the
postsecondary
educational
11
program
as
charged
by
the
proprietary
school.
12
b.
An
estimate
of
any
fees
which
that
may
be
charged
to
the
13
student
by
others
which
would
be
required
if
the
student
is
to
14
successfully
complete
the
postsecondary
educational
program
15
and
in
order
to
obtain
a
recognized
educational
credential
,
16
including
but
not
limited
to
fees
for
examination
or
licensure
.
17
c.
The
percentage
of
students
who
successfully
complete
18
the
postsecondary
educational
program
,
and
the
percentage
who
19
terminate
prior
to
completing
the
postsecondary
educational
20
program
,
and
the
period
of
time
upon
which
the
proprietary
21
school
has
based
these
percentages.
The
reporting
period
shall
22
not
be
less
than
one
year
in
length
and
shall
not
extend
more
23
than
five
years
into
the
past
in
accordance
with
paragraph
“e”
.
24
d.
If
claims
are
made
by
the
proprietary
school
as
to
25
successful
placement
of
students
in
jobs
upon
completion
of
the
26
proprietary
school’s
postsecondary
educational
programs,
the
27
proprietary
school
shall
,
in
accordance
with
paragraph
“e”
,
28
provide
the
student
with
all
of
the
following:
29
(1)
The
percentage
of
graduating
students
who
were
placed
30
in
jobs
in
fields
related
to
the
postsecondary
educational
31
programs.
32
(2)
The
percentage
of
graduating
students
who
went
on
to
33
further
education
immediately
upon
graduation.
34
(3)
The
percentage
of
students
who,
ninety
days
after
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graduation,
were
without
a
job
and
had
not
gone
on
to
further
1
education.
2
(4)
The
period
of
time
upon
which
the
reports
required
3
by
paragraphs
“a”
through
“c”
were
based.
The
reporting
4
period
shall
not
be
less
than
one
year
in
length
and
shall
not
5
extend
more
than
five
years
into
the
past
method
by
which
the
6
proprietary
school
collected
and
verified
the
validity
of
data
7
provided
in
accordance
with
this
paragraph
“d”
.
8
e.
Information
provided
by
the
proprietary
school
in
9
accordance
with
paragraph
“c”
and,
if
applicable,
paragraph
“d”
,
10
shall
include
all
of
the
following
additional
data:
11
(1)
The
applicable
program
name
and
the
normal
length
of
12
time
required
to
complete
the
program.
13
(2)
The
total
number
of
students
in
the
cohort
for
which
14
data
is
reported
and
the
year
in
which
the
students
began
the
15
program.
16
(3)
The
percentages
of
students
that
met
the
conditions
17
described
in
paragraph
“c”
and,
if
applicable,
paragraph
“d”
,
by
18
the
most
recent
ending
date
for
program
completion
in
each
of
19
the
school’s
programs.
20
f.
If
claims
are
made
by
the
proprietary
school
as
to
income
21
levels
of
students
who
have
graduated
and
are
working
in
fields
22
related
to
the
proprietary
school’s
postsecondary
educational
23
programs,
the
proprietary
school
shall
inform
the
student
of
24
the
method
used
to
derive
such
information.
25
3.
The
requirements
of
subsection
2
A
proprietary
school
26
that
is
initiating
operation
for
the
first
time
is
exempt
from
27
data
reporting
under
subsection
2,
paragraphs
“c”
and
“d”
,
until
28
the
school’s
first
biennial
renewal
application
under
section
29
714.24,
subsection
5.
30
4.
This
section
shall
not
apply
to
a
any
of
the
following:
31
a.
A
proprietary
school
that
is
eligible
for
federal
student
32
financial
aid
under
Tit.
IV
of
the
federal
Higher
Education
Act
33
of
1965,
as
amended.
34
b.
A
person
described
in
section
714.23,
subsection
11.
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EXPLANATION
1
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
2
the
explanation’s
substance
by
the
members
of
the
general
assembly.
3
This
bill
amends
Code
provisions
relating
to
the
4
registration
of
postsecondary
schools
with
the
college
student
5
aid
commission.
6
POSTSECONDARY
EDUCATION
FUND.
Currently,
the
moneys
in
the
7
postsecondary
education
fund
must
be
used
by
the
commission
8
for
the
purposes
of
Code
chapters
261B
(registration
of
9
postsecondary
schools)
and
261G
(postsecondary
distance
10
education
—–
interstate
reciprocity).
The
bill
adds
that
11
moneys
in
the
fund
may
be
used
for
purposes
prescribed
by
rule
12
by
the
commission,
and
to
procure,
evaluate,
and
store
school
13
records
to
establish
the
validity
of
claims
against
a
school
14
that
fails
to
faithfully
perform
all
contracts
and
agreements,
15
pay
institutional
charges,
support
transitional
activities,
pay
16
private
education
loan
debt,
and
reimburse
the
Iowans
who
were
17
enrolled
and
attended
such
schools.
18
PROOF
OF
FINANCIAL
RESPONSIBILITY.
Currently,
most
persons
19
maintaining
or
conducting
any
education
course
by
classroom
20
instruction
or
by
correspondence
or
other
delivery
method,
or
21
soliciting
the
sale
of
such
course
in
Iowa,
must
file
with
the
22
commission
a
continuous
corporate
surety
bond
in
the
amount
of
23
$50,000.
The
bill
provides
that
the
bond
may
be
in
the
amount
24
of
$50,000
or
in
a
sum
equivalent
to
10
percent
of
the
total
25
annual
tuition,
whichever
amount
is
less.
Under
current
law,
26
the
option
to
file
an
alternative
sum
of
10
percent
of
total
27
annual
tuition
is
available
only
to
barber
schools
and
schools
28
of
cosmetology
arts
and
sciences.
29
Provisions
relating
to
the
commission’s
ability
to
reduce
a
30
school’s
performance
bond,
and
limiting
the
aggregate
liability
31
of
the
surety
for
breaches
of
the
conditions
of
a
performance
32
bond
are
stricken.
33
“Letter
of
credit”
is
defined
as
a
financial
instrument
34
subject
to
provisions
of
the
uniform
commercial
code.
Letters
35
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of
credit
must
be
issued
by
a
state
or
federally
chartered
bank
1
or
credit
union,
be
payable
to
the
commission,
be
valid
for
at
2
least
one
year
from
the
date
of
issuance
and
subject
to
renewal
3
as
required
by
the
commission,
and
allow
the
commission
to
draw
4
one
or
more
installments
of
the
total
letter
of
credit
amount
5
upon
making
the
required
presentations
to
the
issuer.
6
A
school
that
files
a
continuous
corporate
surety
bond
of
7
less
than
$50,000
must
provide
to
the
commission
a
notarized
8
statement
attesting
to
the
total
amount
of
tuition
charged
to
9
students
in
the
prior
fiscal
year.
If
a
letter
of
credit
is
10
canceled,
revoked,
not
renewed,
or
otherwise
fails
to
be
of
11
full
force
and
effect,
the
statutory
provisions
relating
to
the
12
continuous
corporate
surety
bond
or
letter
of
credit
filed
must
13
be
satisfied.
14
EXEMPTIONS.
Currently,
a
postsecondary
school,
unless
15
the
school
meets
certain
exemptions,
must
register
with
the
16
commission
if
a
person
compensated
by
the
school
conducts
any
17
portion
of
a
course
of
instruction
in
this
state
or
if
the
18
school
otherwise
has
a
presence
in
this
state.
Such
schools
19
must
also,
unless
exempted,
comply
with
provisions
relating
to
20
advertising
and
selling
of
educational
courses,
evidence
of
21
financial
responsibility,
and
contracts.
Violation
of
such
a
22
provision
is
a
serious
misdemeanor
punishable
by
confinement
23
for
no
more
than
one
year
and
a
fine
of
at
least
$430
but
not
24
more
than
$2,560.
25
Under
the
bill,
colleges
and
universities
authorized
by
a
26
foreign
country,
private
business
schools
accredited
by
the
27
United
States
department
of
education
or
the
council
for
higher
28
education
accreditation,
and
schools
of
nursing
from
outside
of
29
Iowa
are
not
exempt
from
such
requirements.
30
TUITION
REFUND
POLICIES
AND
REQUIREMENTS
——
PROPRIETARY
31
POSTSECONDARY
SCHOOLS.
The
definition
of
“postsecondary
32
educational
program”
is
modified
to
include
but
not
be
limited
33
to
other
certifications
or
designations,
regardless
of
whether
34
the
proprietary
school
awards
the
credential.
35
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If
a
student
withdraws
within
the
first
two
calendar
weeks,
1
the
school
must
refund
all
tuition
charges
to
the
student.
2
For
a
student
who
terminates
from
a
program
or
course
after
3
the
first
two
weeks,
the
school
must
make
a
pro
rata
refund
of
4
tuition
charges
for
the
program
or
course
in
an
amount
that
is
5
not
less
than
95
percent
of
the
amount
of
tuition
charged
to
6
the
student
multiplied
by
the
ratio
of
the
number
of
calendar
7
days
remaining
in
the
school
period.
This
is
increased
from
8
the
current
pro
rata
amount
of
90
percent
of
the
amount
of
9
tuition
charged
to
the
student
multiplied
by
the
formula
set
10
forth
in
statute.
11
If
a
terminating
student
has
completed
60
percent
or
more
of
12
a
school
period,
the
school
is
not
required
to
refund
tuition
13
charges
to
the
student.
14
The
bill
requires
a
proprietary
school,
including
those
15
offering
instructional
programs
or
courses
under
an
interstate
16
reciprocity
agreement,
to
apply
the
refund
policy
to
all
17
students
who
attend
on-campus
classes
or
at
instructional
18
sites
in
Iowa
and
to
all
Iowa
resident
students
who
attend
the
19
school’s
distance
education
programs.
20
Under
the
bill,
the
Code
section
does
not
apply
to
personal
21
vehicle
driving
education
schools,
postsecondary
vocational
22
schools
that
offer
solely
discrete
continuing
education
23
courses,
or
to
a
for-profit
school
that
offers
solely
programs
24
for
which
the
sum
of
tuition,
fees,
instructional
materials,
25
technology,
and
other
items
required
for
program
completion
is
26
less
than
$3,000.
27
Currently,
a
violation
of
the
Code
section
is
a
simple
28
misdemeanor,
which
is
punishable
by
confinement
for
no
more
29
than
30
days
and
a
fine
of
at
least
$105
but
not
more
than
$855.
30
DOCUMENTATION
OF
COMPLIANCE
——
PROPRIETARY
SCHOOLS.
31
Currently,
a
proprietary
school
must
submit
documentation
of
32
compliance
only
if
the
commission,
at
its
discretion,
requires
33
the
school
to
do
so.
34
Under
the
bill,
information
relating
to
a
proprietary
35
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school’s
evidence
of
financial
responsibility,
refund
policies,
1
and
disclosure
of
certain
information,
and
relating
to
2
exemptions
for
certain
schools,
are
public
records.
3
DISCLOSURE
REQUIREMENTS
——
PROPRIETARY
SCHOOLS.
The
4
definition
of
“proprietary
school”
is
amended
to
strike
5
provisions
relating
to
the
amount
of
time
the
school
offers
a
6
postsecondary
educational
program
that
leads
to
a
credential.
7
Provisions
relating
to
the
boards
of
barbering
and
8
cosmetology
arts
and
sciences
are
also
stricken.
9
Schools
under
the
bill
must
disclose
the
current
total
costs
10
charged
for
the
programs
offered,
but
the
requirement
that
the
11
school
provide
an
estimate
of
fees
charged
to
a
student
by
12
others
based
on
the
fees
required
if
the
student
successfully
13
completes
the
program
is
stricken.
14
Also
under
the
bill,
the
school
must
provide
to
the
15
commission
and,
if
applicable,
to
the
student,
information
16
regarding
the
method
by
which
the
school
collected
and
verified
17
the
validity
of
data,
the
applicable
program
name
and
the
18
normal
length
of
time
required
to
complete
the
program,
the
19
total
number
of
students
in
the
cohort
for
which
data
is
20
reported
and
the
year
in
which
the
students
began
the
program,
21
and
the
percentages
of
students
that
successfully
complete
or
22
terminate
the
program.
The
information
must
be
provided
by
23
the
most
recent
ending
date
for
program
completion
in
each
of
24
the
school’s
programs.
However,
a
school
that
is
initiating
25
operation
for
the
first
time
is
exempt
from
data
reporting
26
until
the
school’s
first
biennial
renewal
application
of
the
27
school’s
evidence
of
financial
responsibility.
28
The
Code
section,
as
amended,
does
not
apply
to
personal
29
vehicle
driving
education
schools,
postsecondary
vocational
30
schools
that
offer
solely
discrete
continuing
education
31
courses,
or
to
a
for-profit
school
that
offers
solely
programs
32
for
which
the
sum
of
tuition,
fees,
instructional
materials,
33
technology,
and
other
items
required
for
program
completion
is
34
less
than
$3,000.
35
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