Iowa HSB 542: A bill for an act relating to schools that are required to register with the college student aid commission.(See HF 2156.)

Bill Text

House Study Bill 542 - Introduced
SENATE/HOUSE FILE _____
BY (PROPOSED COLLEGE STUDENT
AID COMMISSION BILL)
A BILL FOR
An Act relating to schools that are required to register with1
the college student aid commission.2
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:3
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S.F. _____ H.F. _____
Section 1. Section 261B.4, subsection 4, Code 2022, is1
amended to read as follows:2
4. The refund policy of the school for the return of3
refundable portions of tuition, fees, or other charges.4
The tuition refund policy for Iowa resident students of a5
for-profit school with at least one program of more than four6
months in length that leads that offers a course of instruction7
leading to a recognized educational credential, such as an8
academic or professional degree, diploma, or license, must9
comply with section 714.23.10
Sec. 2. Section 261B.11, subsection 1, paragraph f, Code11
2022, is amended by striking the paragraph and inserting in12
lieu thereof the following:13
f. A community college established under chapter 260C or an14
institution of higher learning under the control of the board15
of regents.16
Sec. 3. Section 261B.11, subsection 1, paragraphs n and o,17
Code 2022, are amended by striking the paragraphs.18
Sec. 4. Section 261B.11, subsection 2, paragraph b, Code19
2022, is amended to read as follows:20
b. A for-profit school with at least one program of more21
than four months in length that leads that offers a course of22
instruction leading to a recognized educational credential,23
such as an academic or professional degree, diploma, or24
license, must submit to the commission a tuition refund policy25
that meets the conditions of section 714.23.26
EXPLANATION27
The inclusion of this explanation does not constitute agreement with28
the explanation’s substance by the members of the general assembly.29
This bill relates to schools that are required to register30
with the college student aid commission.31
The bill requires that the tuition refund policy for Iowa32
resident students of a for-profit school governed by Code33
chapter 261B that offers a course of instruction leading to a34
recognized educational credential must comply with Code section35
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S.F. _____ H.F. _____
714.23, which provides standards for refund policies and1
penalties for violating those standards. A violation of Code2
section 714.23 is a simple misdemeanor. A simple misdemeanor3
is punishable by confinement for no more than 30 days and a4
fine of at least $105 but not more than $855. The bill requires5
the school to submit the refund policy to the college student6
aid commission.7
Under current law, the provisions of Code chapter 261B8
do not apply to colleges and universities authorized by the9
laws of this state to grant degrees. The bill strikes this10
exception and replaces it with an exception for community11
colleges established under Code chapter 260C and institutions12
of higher learning under the control of the board of regents.13
Additionally, under current law, the provisions of Code14
chapter 261B do not apply to either a postsecondary educational15
institution established in Bettendorf in 1969 to prepare16
students for the federal communications commission radio17
broadcasting examination or a school of religious study located18
in Iowa that was established in Spain in 1982, is affiliated19
with the department of global missions of open bible churches,20
grants bachelor’s degrees, and is accredited by a nationally21
recognized accrediting agency. The bill strikes these22
exceptions.23
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