Bill Summary – FastDemocracy

Senate File 376 - Introduced
                                  SENATE FILE 376
                                  BY QUIRMBACH
                                  (COMPANION TO HF 186 BY STONE)
                            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.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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                             DIVISION I
                      FOR-PROFIT INSTITUTIONS
    Section 1. IOWA TUITION GRANTS —— FOR-PROFIT
 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
 from taxation under section 501(c)(3) of the Internal Revenue
 Code.
    Sec. 2. EFFECTIVE DATE. This division of this Act, being
 deemed of immediate importance, takes effect upon enactment.
    Sec. 3. RETROACTIVE APPLICABILITY. This division of this
 Act applies retroactively to December 1, 2022.
                            DIVISION II
                    IOWA TUITION GRANTS PROGRAM
    Sec. 4. Section 261.9, subsection 3, Code 2023, is amended
 to read as follows:
    3. “Eligible 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”, and the criteria in paragraphs “a” or “b” as
 follows:
    a. Is accredited by the higher learning commission and
 which, effective January 8, 2010, purchased an accredited
 private institution that was exempt from taxation under section
 501(c) of the Internal Revenue Code, or whose students were
 eligible to receive tuition grants in the fiscal year beginning
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                                S.F. 376
 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.
 For the fiscal year beginning July 1, 2017, an eligible
 institution under this paragraph such a barber school or school
 of cosmetology arts and sciences shall provide a matching
 aggregate amount of institutional financial aid equal to at
 least seventy-five percent of the amount received by the
 institution’s students for Iowa tuition grant assistance
 under section 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. 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.
    Sec. 5. Section 261.16A, subsection 2, Code 2023, is amended
 to read as follows:
    2. Extent of grant.
    a. 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; a qualified part-time resident student enrolled
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                                         S.F. 376
 in the eligible institution may receive tuition grants for
 not more than sixteen semesters of undergraduate study or the
 equivalent.
    b. A qualified full-time resident student enrolled in an
 eligible institution that meets the criteria of section 261.9,
 subsection 3, paragraph “b”, may receive tuition grants for not
 more than four semesters or the equivalent of two full years
 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.
    Sec. 6. Section 261.25, subsection 2, Code 2023, is amended
 to read as follows:
    2. There is appropriated from the general fund of the state
 to the commission for each fiscal year the sum of five hundred
 thousand dollars for tuition grants for qualified students
 who are enrolled in eligible institutions. Of the moneys
 appropriated under this subsection, not more than one hundred
 thousand dollars annually shall be used for tuition grants to
 qualified students who are attending an eligible institution
 under section 261.9, subsection 3, paragraph “b”.
                           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 Iowa tuition grants program
 administered by the college student aid commission. Under
 the program, the commission awards tuition grants to Iowa
 residents enrolled at eligible institutions, which Code section
 261.9 defines as one of Iowa’s eligible private colleges and
 universities. The bill provides that, for the period beginning
 December 1, 2022, and ending June 30, 2023, and for purposes
 of the program, the term “eligible institution” includes
 an institution of higher learning accredited by the higher
 learning commission which, effective January 8, 2010, was
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                               S.F. 376
 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 from taxation under section
 501(c)(3) of the Internal Revenue Code. The bill establishes
 that this provision takes effect upon enactment and applies
 retroactively to December 1, 2022. The bill makes conforming
 changes.
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Statutes affected: 
Introduced: 261.16A, 261.25, 261.9