HF 421 — A bill for an act relating to the Iowa tuition grants program administered by the college student aid commission and including effective date and retroactive applicability provisions.

KimHouse ReynoldsFile O421 f- fEnrolled iHouse cFile e421 oAN fACT tRELATING hTO eTHE GIOWA oTUITION vGRANTS ePROGRAM rADMINISTERED nBY oTHE rCOLLEGE ASTUDENT dAID aCOMMISSION mAND GINCLUDING rEFFECTIVE eDATE gAND gRETROACTIVE GAPPLICABILITY OPROVISIONS. V E R N O R L T G O V E R N O R May 11.2023 The Honorable Paul Pate SecretaryofStateofIowa StateCapitol Des Moines.Iowa 50319 DearMr.Secretary, Iherebytransmit:

HouseFile421,anActrelatingtotheIowatuitiongrantsprogramadministeredbytheBE collegestudentaidcommissionandincludingeffectivedateandretroactiveapplicabilityIT provisions.ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

TheaboveHouseFileisherebyapprovedonthisdate.DIVISION I FOR-PROFIT INSTITUTIONS Section 1.

Sincerely,IOWA Kim^ynoldsTUITION GovernorGRANTS ofIowa—— cc:FOR-PROFIT INSTITUTIONS.

SecretaryoftheSenateFor Clerkthe oftheperiod Housebeginning STATEDecember CAPITOL1, DES2022, MOINES,and IOWAending 50319June 515.281.521130, FAX2023, 515.725.35WWW.GOVERNOR.IOWA.GOVand Willfor maintaipurposes iiiiinii'imiMiiiiiiiiiminiiiiimniinTTiTn-."'-of Hsection o261.16A, uan s“eligible einstitution”, Fas idefined lin esection 4261.9, 2subsection 13, Aparagraph N“a”, Ashall Cinclude Tan Rinstitution Eof Lhigher Alearning Taccredited Iby Nthe Ghigher Tlearning Ocommission Twhich, Heffective EJanuary I8, O2010, Wwas Apurchased Tby Uan Iinstitution Tthat Iwas Onot Nexempt Gfrom Rtaxation Aunder Nsection T501(c)(3) Sof Pthe RInternal ORevenue GCode Rand Awhich, Meffective ADecember D1, M2022, Iwas Npurchased Iby San Tentity Elocated Rin Ethis Dstate Bthat Yis Texempt HHouse EFile C421, Op. L L E G E S T U D E N T A I D C O M M I S S I O N A N D I N C L U D I N G E F F E C T I V E D A T E A N D R E T R O A C T I V E A P P L I C A B I L I T Y P R O V I S I O N S .

B2 Efrom Itaxation Tunder Esection N501(c)(3) Aof Cthe TInternal ERevenue DCode. B Y T H E G E N E R A L A S S E M B L Y O P T H E S T A T E O F I O W A ;

D I V I S I O N I F O R - P R O F I T I N S T I T U T I O N S S e c t i o n 1 .

I O W A T U I T I O N G R A N T S — F O R - P R O F I T INSTITUTIONS.

For the period beginning December 1, 2022, and ending June 30, 2023, and for purposes of section 261.16A, an ^^eligible institution", as defined in section 261.9, subsection 3, paragraph ^^a", shall include an institution of higher learning accredited by the higher learning commission which, effective January 8, 2010, was purchased by an institution that was not exempt from taxation under section 501(c)(3) of the Internal Revenue Code and which, effective December 1 , 2022, was purchased by an entity located in this state that is exempt House File 421, p.

2 from taxation under section 501(c)(3) of the Internal Revenue C o d e .

SSec. e c .

3R3. E T R O A C T I V E A P P L T h i s d i v i s t h i s f Act applies retroactively to December 1, 2022.

DRETROACTIVE IAPPLICABILITY. V I SI IO N I O W T U I T G R A NP R O G R A M Sec.

This division of this Act applies retroactively to December 1, 2022.

DIVISION II IOWA TUITION GRANTS PROGRAM Sec.

Section 261.9, subsection 3, Code 2023, is amended tto orread eas aafollows: sf o l l o w s :

^Eligible“Eligible institution''institution” means an institution of higher learning located in Iowa which is operated privately and not controlled or administered by any state agency or any subdivision of the state, which is not exempt from taxation under section 501(c)(3) of the Internal Revenue Code, and which meets all of the criteria in subsection 1, paragraphs “d” through ^i“i”, and the criteria in paragraphs “a” or ^b"“b” as ffollows: o l l o w s ! a-i Is accredited by the higher learning commission and which# cffoctivG January 8/ 2010^ purchased an accrcditGd private institution that was exempt from taxation under section 501(g)—of the Internal Revenue Code#—or whose students were eligible to receive tuition grants in the fiscal year beginning July 1# 2003.—The eligible institution shall annually provide a matching aggregate amount of institutional financial aid which shall increase by the percentage of increase each fiscal year of funds appropriated for Iowa tuition grants under section 261.25, subsection 2# to a maximum match of one hundred percent as initiated under section 261.0# subsection 1# paragraph ^b''t Code 2005.

b-i—14-a. a barber s c h o o l licenunder section 1 5 8 .

7Is oraccredited aby schoolthe ofhigher cosmetologylearning artscommission and scienceswhich, licensedeffective underJanuary chapter8, 1572010, andpurchased isan accredited byprivate ainstitution nationalthat accreditingwas agencyexempt recognizedfrom bytaxation under section 501(c) of the UnitedInternal StatesRevenue departmentCode, ofor education.whose students were eligible to receive tuition grants in the fiscal year beginning July 1, 2003.

The eligible institution shall annually provide a matching aggregate amount of institutional financial aid which shall increase by the percentage of increase each fiscal year of funds appropriated for Iowa tuition grants under section 261.25, subsection 2, to a maximum match of one hundred percent as initiated under section 261.9, subsection 1, paragraph “b”, Code 2005.

b.

Is is a barber school licensed under section 158.7 or a school of cosmetology arts and sciences licensed under chapter 157 and is accredited by a national accrediting agency recognized by the United States department of education.

3 least seventy-five percent of the amount received by the institution'sinstitution’s students for Iowa tuition grant assistance under section 261.16A,261.16A. For the fiscal year beginning July 1, 2018, the institution barber school or school of cosmetology arts and sciences shall provide a matching aggregate amount of institutional financial aid equal to at least eighty-five percent of the amount received in that fiscal year.

CommencingFor with the fiscal year beginning July 1, 2019,2018, andthe eachinstitution succeedingbarber fiscalschool year,or theschool of cosmetology arts and sciences shall provide a matching aggregate amount of institutional financial aid shallequal beto at least equaleighty-five topercent of the matchamount providedreceived byin eligiblethat institutionsfiscal underyear. section 261.9, subsection 3, paragraph Code 2023.

Commencing with the fiscal year beginning July 1, 2019, and each succeeding fiscal year, the matching aggregate amount of institutional financial aid shall be at least equal to the match provided by eligible institutions under section 261.9, subsection 3, paragraph “a”, Code 2023.

Section 261.16A, subsection 2, Code 2023, is amended tto orread eas aafollows: s f o l l o w s ;

Extent oof f grant.

a-.—Aa. qualified full-time rooidcnt student enrolled in an eligible institution that meets the criteria of section 261.0# subsection 3| paragraph may receive tuition grants for not more than eight semesters of undergraduate study or the equivalent;

A qualified full-time resident student enrolled in an eligible institution that meets the criteria of section 261.9, subsection 3 , paragraph “a”, may receive tuition grants for not more than eight semesters of undergraduate study or the equivalent;

Ab. qualified full-time resident student enrolled in an eligible institution that meets the criteria of section 261.9, subsection 3, paragraph may receive tuition grants for not more than four semesters or the equivalent of two full years of study.

However,A ifqualified afull-time studentresident resumes study after at least a two-year absence, the student mayenrolled againin bean eligible forinstitution thethat specifiedmeets amountthe criteria of time,section except261.9, thatsubsection the3, studentparagraph shall“b”, notmay receive assistancetuition forgrants courses for whichnot creditmore wasthan previouslyfour rsemesters eor cthe eequivalent iof vtwo efull dyears .of study.

However, if a student resumes study after at least a two-year absence, the student may again be eligible for the specified amount of time, except that the student shall not receive assistance for courses for which credit was previously received.

Section 261.25, subsection 2, Code 2023, is amended tto orread eas aafollows: s f o l l o w s :

Of the moneys appropriated under this subsection, not more than one hundred House PileFile 421, p.

4 thousand dollars annually shall be used for tuition grants to qualified students who are attending an eligible institution under section 261.9, subsection 3»3, paragr^hparagraph P“b”. A T G R A S S L E Y AMY SINC|M:R Speaker of the^House P r e s i d e n t o ft h e S e n a t e I hereby certify that this bill originated in the House and is known as House File 421, Ninetieth General Assembly.

N______________________________ N______________________________ EPAT LGRASSLEY SAMY OSINCLAIR NSpeaker Clei?ir\of othe fHouse tPresident hof ethe HSenate oI uhereby scertify ethat Approvedthis 0bill 2originated 3in REYNOLDSthe GHouse oand vis eknown ras nHouse oFile r421, Ninetieth General Assembly.

______________________________ MEGHAN NELSON Chief Clerk of the House Approved _______________, 2023 ______________________________ KIM REYNOLDS Governor