Fiscal Note
Fiscal Services Division
HF 2320 – In-State Tuition, Illegal Aliens (LSB5649HV)
Staff Contact: Michael Peters (515.281.6934) michael.peters@legis.iowa.gov
Fiscal Note Version – New
Description
House File 2320 requires the Board of Regents and the board of directors of a community
college to adopt administrative rules to prohibit a Regents institution or community college from
classifying a student as a resident of this State for purposes of tuition and fees unless the
student provides proof of United States citizenship or proof that the individual is lawfully present
in the United States.
Background
Iowa Community Colleges Background
Requirements for proof of Iowa residency are established for community colleges by the Iowa
Department of Education. Residency status cannot be reclassified after the semester begins. If
a student seeks to be reclassified after the term begins, the new classification will be effective at
the start of the next term of enrollment. Iowa Code section 260C.14(14), establishes the
resident and nonresident statuses for determining the tuition rate per semester. Figure 1
breaks down the community college enrollment by resident status using data from the Iowa
Community Colleges Fall 2023 Enrollment Report, which can be found here.
Figure 1 — Fall 2023 Community College Enrollments by Residence Status
The community colleges reported 117,464 total students enrolled in Fall 2023. Of that total,
50,082 high school students were taking classes through joint enrollment, which accounted for
42.6% of all enrollment. Of all students enrolled, 89.1% were classified as residents of Iowa,
9.9% were out-of-state students, and 1.0% were international students.
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The community colleges each have a process currently in place for resolving residency or
citizenship on a case-by-case basis. U.S. citizens are required to complete a residency status
form and submit one of the following to verify citizenship status:
• Iowa driver’s license.
• Iowa vehicle registration form.
• Iowa State income tax return, signed and dated.
• Iowa voter registration card.
• Proof of Iowa homestead credit on property taxes.
• Written and notarized documentation from an employer certifying that the person has been
employed in Iowa for a minimum of 90 days.
Non-U.S. citizens, lawful permanent residents, and approved refugees may provide proof of
legal immigration status through a U.S. permanent resident card. Appeals of residency or legal
resident status can be submitted to the institution’s admission’s office. International students
who are in the United States on any type of student visa cannot establish in-state residency.
Iowa Board of Regents Background
The undergraduate admission cycle begins in August and ends in May. Transfer students may
be admitted for the fall or spring semester. Most graduate and professional students begin in
the fall semester, although there are exceptions. Therefore, the verification process is ongoing
throughout the calendar year. Iowa Code section 262.9(17) establishes the resident and
nonresident statuses for determining the tuition rate per semester. Figure 2 breaks down the
three Regents universities enrollments by resident status using data from the Iowa Board of
Regents Fall 2023 Enrollment Report, which can be found here.
Figure 2 —Fall 2023 Regents University Enrollments by Residence Status
Iowa Community
Total Enrollment New, First-Year Residents Out-of-State International College Transfer
University of Iowa 30,042 5,064 16,885 11,653 1,504 595
Iowa State University 30,177 5,859 16,297 11,161 2,719 752
University of Northern Iowa 9,021 1,552 8,118 728 175 625
Total 69,240 12,475 41,300 23,542 4,398 1,972
Resident status for purposes of tuition classification is generally determined under the following
circumstances:
• The student has graduated from an Iowa high school.
• The student has financially responsible parents or guardians residing in Iowa.
• The student is claimed annually as tax dependent on an Iowa income tax return that is
classified as resident.
• The student has resided in Iowa for no less than 90 days prior to the start of the first day
of a semester in which the student will be attending.
The Iowa Administrative Code establishes that an individual who comes to Iowa for educational
purposes is to be classified as a nonresident. If a school determines an individual is a
nonresident, the burden of establishing that the individual is an Iowa resident is upon the
individual.
The Regents universities each have a process currently in place for resolving residency or
citizenship on a case-by-case basis. If citizenship status cannot be confirmed through the
Social Security Administration, students may be asked to provide one of the following
documents in person to the Office of Student Financial Aid (OSFA):
• U.S. birth certificate.
• U.S. passport.
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• U.S. passport card.
• Certificate of Naturalization.
• Certificate of Birth Abroad.
• Certificate of Citizenship.
Legal noncitizen status can be confirmed when a student submits the student’s Alien
Registration Number. If United States Citizenship and Immigration Services (USCIS) of the
U.S. Department of Homeland Security cannot confirm a student’s legal status, the following
documents can be submitted to the OSFA:
• Permanent Resident Card (I-551) or Resident Alien Card (Form I-551).
• Arrival/Departure Record (CBP Form I-94) or Departure Record (Form I-94 or I-94A).
• Machine Readable Immigrant Visa (MRIV).
• Approval Notice from the USCIS (Form 1-797).
• Permanent Resident reentry permit (Form I-327) or Refugee Travel Document (Form I-571).
• Victims of Human Trafficking document (Form I-94) or a self-certification or eligibility letter
from the U.S. Department of Health and Human Services.
Assumptions
• Each new student will be required to provide proof of United States citizenship or that the
individual is lawfully present in the United States one time during the student’s enrollment at
an institution of higher education.
• All currently enrolled students will need to provide verification upon enactment of this Bill
and prior to the start of the next semester (Fall 2024).
• The Regents universities and the community colleges estimate each institution will require
100 hours of information technology (IT) development time at $95 per hour.
Fiscal Impact
Both the Regents universities and the community colleges will require the development of an
application to assist with the verification process. The fiscal impact of HF 2320 is estimated to
be $171,000 in one-time IT development costs. The cost per institution is estimated at $10,000,
or $29,000 across all three universities and $143,000 across all 15 community colleges.
Existing staff will handle any additional duties for implementing and managing the process in
future years.
Sources
Board of Regents
Iowa Association of Community College Trustees
/s/ Jennifer Acton
March 7, 2024
Doc ID 1446390
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
www.legis.iowa.gov
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Statutes affected:
Introduced: 260C.14, 262.9