Bill Text: IA SF2267 | 2011-2012 | 84th General Assembly | Enrolled
Bill Title: A bill for an act concerning oversight of schools offering postsecondary educational programs by the college student aid commission and making penalties applicable. (Formerly SSB 3167.) Effective 7-1-12.
Spectrum: Committee Bill
Status: (Passed) 2012-04-12 - Signed by Governor. S.J. 794. [SF2267 Detail]
Download: Iowa-2011-SF2267-Enrolled.html
Senate
File
2267
AN
ACT
CONCERNING
OVERSIGHT
OF
SCHOOLS
OFFERING
POSTSECONDARY
EDUCATIONAL
PROGRAMS
BY
THE
COLLEGE
STUDENT
AID
COMMISSION
AND
MAKING
PENALTIES
APPLICABLE.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
DIVISION
I
POSTSECONDARY
REGISTRATION
——
REQUIREMENTS
Section
1.
Section
261B.2,
Code
2011,
is
amended
to
read
as
follows:
261B.2
Definitions.
As
used
in
this
chapter
,
unless
the
context
otherwise
requires:
1.
“Commission”
means
the
college
student
aid
commission
created
pursuant
to
section
261.1
.
Senate
File
2267,
p.
2
2.
“Course
of
instruction”
means
a
postsecondary
educational
program
that
a
school
offers
through
in-person
instruction,
distance
delivery,
correspondence
study
methods,
or
any
combination
thereof.
2.
3.
“Degree”
means
a
postsecondary
credential
conferring
on
the
recipient
the
title
of
associate,
bachelor,
master,
or
doctor,
or
an
equivalent
title,
signifying
educational
attainment
based
on
any
one
or
a
combination
of
study
or
the
equivalent
which
may
be
supplemented
by
experience
or
achievement
testing.
A
postsecondary
degree
under
this
chapter
shall
not
include
an
honorary
degree
or
other
unearned
degree.
3.
4.
“Presence”
means
maintaining
an
address
within
Iowa
a
location
in
Iowa
at
which
a
student
participates
in
any
structured
activity
related
to
a
school’s
distance
education
course
of
instruction,
with
the
exception
of
proctored
examinations.
“Presence”
also
means
an
address,
location,
telephone
number,
or
internet
protocol
address
in
Iowa
from
which
a
school
conducts
any
aspect
of
its
operations.
For
the
purpose
of
a
residential
course
of
instruction
offered
on
a
school’s
campus
that
is
not
located
in
Iowa,
“presence”
does
not
include:
a.
Occasional,
short-term
activities
conducted
at
a
location
in
Iowa
for
the
purpose
of
recruiting
students
for
the
school’s
residential
course
of
instruction.
b.
A
residency,
practicum,
internship,
clinical,
or
similar
experience
that
the
school
permits
the
student
to
participate
in
at
a
location
in
Iowa,
provided
that
a
person
who
provides
instruction
or
supervision
at
the
Iowa
location
is
not
compensated
by
the
school
.
4.
5.
“School”
means
an
agency
of
the
state
or
political
subdivision
of
the
state,
individual,
partnership,
company,
firm,
society,
trust,
association,
corporation,
or
any
combination
which
meets
any
of
the
following
criteria:
a.
Is,
owns,
or
operates
a
nonprofit
postsecondary
educational
institution.
b.
Provides
a
postsecondary
instructional
program
or
course
of
instruction
leading
to
a
degree.
c.
Uses
in
its
name
the
term
“college”
,
“academy”
,
“institute”
,
or
“university”
or
a
similar
term
to
imply
that
the
person
is
primarily
engaged
in
the
education
of
students
at
the
postsecondary
level,
and
which
makes
a
charge
for
its
services.
5.
6.
“Student”
means
a
person
who
enrolls
in
or
seeks
to
enroll
in
a
course
of
instruction
offered
or
conducted
by
a
Senate
File
2267,
p.
3
school.
Sec.
2.
Section
261B.3,
Code
2011,
is
amended
to
read
as
follows:
261B.3
Registration.
1.
Except
as
provided
in
section
261B.11
,
a
school
that
maintains
or
shall
register
with
the
commission
if
a
person
compensated
by
the
school
conducts
one
or
more
courses
any
portion
of
a
course
of
instruction
,
including
courses
of
instruction
by
correspondence
or
other
distance
delivery
method,
offered
in
this
state
or
which
if
the
school
otherwise
has
a
presence
in
this
state
and
offers
courses
in
other
states
or
foreign
countries
shall
register
with
the
commission
.
a.
Registrations
shall
be
renewed
every
four
two
years
or
and
shall
be
amended
upon
any
substantive
change
in
location
,
program
offering,
or
accreditation.
A
school
makes
a
substantive
change
in
a
program
offering
when
the
school
proposes
to
offer
or
modify
a
program
that
requires
the
approval
of
the
state
board
of
education
or
any
other
state
agency
authorized
to
approve
the
school
or
its
program
in
this
state.
b.
Registration
shall
be
made
on
application
forms
approved
and
supplied
made
available
by
the
commission
and
at
the
time
and
in
the
manner
prescribed
by
the
commission.
Upon
receipt
of
a
complete
and
accurate
registration
application,
the
commission
shall
issue
an
acknowledgment
of
document
filed
and
send
it
to
the
school.
2.
The
commission
may
request
require
a
school
to
provide
additional
information
as
the
commission
deems
necessary
to
enable
the
commission
to
determine
the
accuracy
and
completeness
of
the
information
contained
in
the
evaluate
a
school’s
suitability
for
registration
application
.
3.
The
commission
shall
notify
a
school
in
writing
of
its
decision
to
grant
or
deny
registration
and
any
stipulation
associated
with
the
school’s
registration.
4.
If
a
school
fails
to
meet
any
of
the
registration
criteria,
or
if
the
commission
believes
that
false,
misleading,
or
incomplete
information
has
been
submitted
in
connection
with
an
application
for
registration,
the
commission
may
deny
registration.
The
commission
shall
conduct
a
hearing
on
the
denial
if
a
hearing
is
requested
by
a
school.
The
commission
may
withhold
an
acknowledgment
of
document
filed
pending
the
outcome
of
the
hearing.
Upon
a
finding
after
the
hearing
that
the
school
fails
to
meet
any
of
the
registration
Senate
File
2267,
p.
4
criteria,
or
that
information
contained
in
the
registration
application
is
false,
misleading,
or
incomplete,
the
commission
shall
deny
an
acknowledgment
of
document
filed
to
the
school
registration
.
The
commission
shall
make
the
final
decision
on
each
registration.
However,
the
decision
of
the
commission
is
subject
to
judicial
review
in
accordance
with
section
17A.19
.
3.
5.
The
commission
shall
adopt
rules
under
chapter
17A
for
the
implementation
of
this
chapter
.
Sec.
3.
Section
261B.3A,
Code
2011,
is
amended
to
read
as
follows:
261B.3A
Requirements.
1.
In
order
to
register,
a
school
shall
be
accredited
by
an
agency
or
organization
approved
or
recognized
by
the
United
States
department
of
education
or
a
successor
agency,
be
approved
by
any
other
state
agency
authorized
to
approve
the
school
in
this
state,
and,
subsequently,
be
approved
for
operation
by
the
commission.
2.
A
practitioner
preparation
program
,
as
defined
in
section
272.1,
operated
by
a
school
that
applies
to
register
the
program
in
accordance
with
this
chapter
shall,
in
order
to
register,
be
accredited
by
an
agency
or
organization
approved
or
recognized
by
the
United
States
department
of
education
or
a
successor
agency,
be
approved
by
the
state
board
of
education
pursuant
to
section
256.7,
subsection
3
,
and,
subsequently,
be
approved
for
operation
by
the
commission.
3.
The
commission
may
grant
a
provisional
registration
to
a
school
that
is
not
accredited
by
an
agency
or
organization
that
is
recognized
by
the
United
States
department
of
education
or
its
successor
agency.
The
commission
shall
determine
the
duration
of
the
provisional
registration.
During
the
provisional
registration
period,
the
school
shall,
at
six-month
intervals,
submit
to
the
commission
documentation
of
its
progress
toward
achieving
accreditation.
The
commission
may
renew
the
school’s
provisional
registration
at
its
discretion
if
the
documentation
submitted
indicates
that
the
school
is
making
progress
toward
accreditation.
3.
4.
Nothing
in
this
chapter
shall
be
construed
to
exempt
a
school
from
the
requirements
of
chapter
490
,
or
491
,
or
714
.
Sec.
4.
Section
261B.4,
Code
2011,
is
amended
to
read
as
follows:
261B.4
Registration
information.
As
a
basis
for
registration,
schools
shall
provide
the
commission
with
the
following
information:
Senate
File
2267,
p.
5
1.
The
name
or
title
of
the
school.
2.
The
As
applicable,
the
principal
location
of
the
school
in
this
state,
in
other
states,
and
in
foreign
countries,
and
the
location
of
the
place
or
places
in
this
state,
in
other
states,
and
in
foreign
countries
where
instruction
is
likely
to
be
given.
3.
A
schedule
of
the
total
tuition
charges,
fees,
and
other
costs
payable
to
the
school
by
a
student
during
the
course
of
instruction
.
4.
The
refund
policy
of
the
school
for
the
return
of
refundable
portions
of
tuition,
fees,
or
other
charges.
The
tuition
refund
policy
for
Iowa
resident
students
of
a
for-profit
school
with
at
least
one
program
of
more
than
four
months
in
length
that
leads
to
a
recognized
educational
credential,
such
as
an
academic
or
professional
degree,
diploma,
or
license,
must
comply
with
section
714.23.
5.
The
degrees
granted
by
the
school.
6.
5.
The
names
and
addresses
of
the
principal
owners
of
the
school
or
the
officers
and
members
of
the
legal
governing
body
of
the
school.
7.
6.
The
name
and
address
of
the
chief
executive
officer
of
the
school.
8.
7.
A
copy
of
or
a
description
of
the
means
by
which
the
school
intends
to
comply
with
section
261B.9
.
9.
8.
The
name
of
the
accrediting
agency
recognized
by
the
United
States
department
of
education
or
a
successor
agency
which
has
accredited
the
school
,
and
the
status
under
which
accreditation
is
held
,
the
name
of
any
other
accrediting
or
licensing
entity
that
has
accredited
or
licensed
the
school
or
its
programs,
a
copy
of
the
accrediting
or
licensure
notice
issued
by
the
entity,
and
a
record
of
any
sanctions
the
entity
has
levied
against
the
school
.
10.
9.
The
name,
address,
and
telephone
number
of
a
contact
person
in
this
state.
A
school
that
applies
for
registration
to
offer
a
course
of
instruction
by
distance
delivery
may
provide
the
name
and
address
of
its
registered
agent
in
Iowa.
11.
10.
The
names
or
titles
and
a
description
of
the
courses
and
degrees
to
be
offered
in
Iowa
.
12.
11.
A
description
of
procedures
for
the
preservation
of
student
records
and
the
contact
information
to
be
used
by
students
and
graduates
who
seek
to
obtain
transcript
information
.
13.
12.
The
academic
and
instructional
methodologies
and
Senate
File
2267,
p.
6
delivery
systems
to
be
used
by
the
school
and
the
extent
to
which
the
school
anticipates
each
methodology
and
delivery
system
will
be
used,
including
,
but
not
limited
to
,
classroom
instruction,
correspondence,
electronic
telecommunications
distance
delivery
,
independent
study,
and
portfolio
experience
evaluation.
13.
The
name,
title,
business
address,
telephone
number,
and
resume
of
an
Iowa
resident
compensated
by
the
school
to
perform
duties
at
a
location
in
Iowa.
A
school
that
applies
for
registration
to
offer
a
course
of
instruction
by
distance
delivery
may
provide
an
internet
address
as
the
business
address
for
an
Iowa
resident
it
compensates
to
perform
duties
remotely
from
a
location
in
Iowa.
14.
The
school’s
official
Stafford
loan
cohort
default
rate
as
calculated
by
the
United
States
department
of
education
for
the
three
most
recent
federal
fiscal
years,
if
applicable.
15.
Average
student
loan
debt
upon
graduation
of
students
completing
programs
at
the
school.
16.
The
graduation
rate
of
undergraduate
students
as
reported
to
the
United
States
department
of
education.
17.
Evidence
that
the
school
meets
the
conditions
of
financial
responsibility
established
in
section
714.18,
or
that
the
school
qualifies
for
an
exemption
under
section
714.19
or
714.22.
Sec.
5.
Section
261B.7,
Code
2011,
is
amended
to
read
as
follows:
261B.7
Unauthorized
representation.
Neither
a
A
school
nor
its
or
a
school’s
officials
or
employees
shall
not
advertise
or
represent
that
the
school
is
approved
or
accredited
by
the
commission
or
the
state
of
Iowa
nor
shall
it
use
the
registration
as
a
reference
in
promotional
materials
.
However,
a
registered
school
shall
disclose
that
the
school
is
registered
by
the
commission
on
behalf
of
the
state
of
Iowa
and
provide
the
commission’s
contact
information
for
students
who
wish
to
inquire
about
the
school
or
file
a
complaint
.
Sec.
6.
Section
261B.9,
subsection
5,
Code
2011,
is
amended
to
read
as
follows:
5.
Whether
the
postsecondary
credential
or
certificate
issued,
awarded,
or
credited
to
a
student
upon
completion
of
the
course
or
the
fact
of
completion
of
the
course
is
applicable
toward
a
degree
granted
by
the
school
and,
if
so,
under
what
circumstances
the
application
will
be
made.
Senate
File
2267,
p.
7
Sec.
7.
Section
261B.9,
Code
2011,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
7.
The
disclosures
required
by
the
department
of
education
for
an
out-of-state
school
that
the
board
of
education
approves
to
offer
a
practitioner
preparation
program
by
distance
delivery
method.
Sec.
8.
Section
261B.11,
Code
2011,
is
amended
to
read
as
follows:
261B.11
Exceptions.
1.
This
chapter
does
not
apply
to
the
following
types
of
schools
and
courses
of
instruction:
1.
a.
Schools
and
educational
programs
conducted
by
firms,
corporations,
or
persons
solely
for
the
training
of
their
own
employees.
2.
b.
Apprentice
or
other
training
programs
provided
by
labor
unions
solely
to
members
or
applicants
for
membership.
3.
c.
Courses
of
instruction
of
an
avocational
or
recreational
nature
that
do
not
lead
to
an
occupational
objective.
4.
d.
Seminars,
refresher
courses,
and
programs
of
instruction
sponsored
by
professional,
business,
or
farming
organizations
or
associations
for
the
members
and
employees
of
members
of
these
organizations
or
associations.
5.
e.
Courses
of
instruction
conducted
by
a
public
school
district
or
a
combination
of
public
school
districts.
6.
f.
Colleges
and
universities
authorized
by
the
laws
of
this
state
to
grant
degrees.
7.
g.
Schools
or
courses
of
instruction
or
courses
of
training
that
are
offered
by
a
vendor
solely
to
the
purchaser
or
prospective
purchaser
of
the
vendor’s
product
when
the
objective
of
the
school
or
course
is
to
enable
the
purchaser
or
the
purchaser’s
employees
to
gain
skills
and
knowledge
to
enable
the
purchaser
to
use
the
product.
8.
h.
Schools
and
educational
programs
conducted
by
religious
organizations
solely
for
the
religious
instruction
of
leadership
practitioners
of
that
religious
organization.
9.
i.
Postsecondary
educational
institutions
licensed
by
the
state
of
Iowa
prior
to
July
1,
2009,
under
section
157.8
or
158.7
to
conduct
business
operate
as
schools
of
cosmetology
arts
and
sciences
or
as
barber
schools
in
the
state.
10.
j.
Accredited
higher
Higher
education
institutions
that
meet
the
criteria
established
under
section
261.92,
261.9,
subsection
1
.
Senate
File
2267,
p.
8
11.
k.
Postsecondary
educational
institutions
offering
programs
limited
to
nondegree
specialty
vocational
training
programs.
12.
Not-for-profit
colleges
and
universities
established
and
authorized
by
city
ordinance
to
grant
degrees.
l.
Higher
education
institutions
located
in
Iowa
that
are
affiliated
with
health
care
systems
located
in
Iowa,
and
which
offer
health
professions
programs
that
are
accredited
by
an
accrediting
agency
recognized
by
the
United
States
department
of
education.
m.
Higher
education
institutions
located
in
Iowa
whose
massage
therapy
curriculum
is
approved
under
administrative
rules
of
the
professional
licensure
division
of
the
department
of
public
health
and
whose
instructors
are
licensed
massage
therapists
under
chapter
152C.
n.
A
postsecondary
educational
institution
established
in
Bettendorf
in
1969
to
prepare
students
for
the
federal
communications
commission
radio
broadcasting
examination.
2.
A
school
that
claims
an
exemption
from
registration
under
subsection
1,
paragraph
“h”
,
“i”
,
“k”
,
“l”
,
or
“m”
,
must
demonstrate
to
the
commission
or
its
designee
that
it
qualifies
for
the
exemption.
The
school
must
apply
for
approval
of
its
exemption
claim
on
an
application
supplied
by
the
commission.
The
commission
or
its
designee
may
approve
the
school’s
exemption
claim
or
deny
it.
A
school
whose
exemption
claim
is
approved
must
reapply
to
renew
its
exemption
no
less
frequently
than
every
two
years.
a.
A
school
that
is
granted
an
exemption
under
this
section
must
file
evidence
of
financial
responsibility
under
section
714.18
or
demonstrate
to
the
commission
or
its
designee
that
the
school
qualifies
for
an
exemption
under
section
714.19
or
714.22.
b.
A
for-profit
school
with
at
least
one
program
of
more
than
four
months
in
length
that
leads
to
a
recognized
educational
credential,
such
as
an
academic
or
professional
degree,
diploma,
or
license,
must
submit
to
the
commission
or
its
designee
a
tuition
refund
policy
that
meets
the
conditions
of
section
714.23.
3.
A
school
that
is
denied
an
exemption
claim
by
the
commission
or
its
designee,
or
that
no
longer
qualifies
for
a
claimed
exemption,
shall
apply
for
registration
or
cease
operating
in
Iowa.
Sec.
9.
NEW
SECTION
.
261B.11A
Ineligibility
for
state
Senate
File
2267,
p.
9
student
aid
programs.
1.
Students
attending
schools
required
to
register
under
this
chapter
are
ineligible
for
state
student
financial
aid
programs
established
under
chapter
261.
2.
A
school
required
to
register
under
this
chapter
is
prohibited
from
offering
state
aid
or
advertising
that
state
aid
is
or
may
be
available
to
students
attending
the
school.
DIVISION
II
POSTSECONDARY
REGISTRATION
——
UNLAWFUL
ACTIVITY
Sec.
10.
Section
714.17,
Code
2011,
is
amended
to
read
as
follows:
714.17
Unlawful
advertising
and
selling
of
educational
courses
of
instruction
.
It
shall
be
unlawful
for
any
person,
firm,
association,
or
corporation
maintaining,
advertising,
or
conducting
in
Iowa
any
educational
course
of
instruction
for
profit,
or
for
tuition
charge,
whether
by
classroom
instructions
,
or
by
correspondence,
or
by
other
delivery
method
to:
1.
Falsely
advertise
or
represent
to
any
person
any
matter
material
to
such
an
educational
course
of
instruction
.
All
advertising
of
such
courses
of
instruction
shall
adhere
to
and
comply
with
the
applicable
rules
and
regulations
of
the
federal
trade
commission
as
of
July
4,
1965
.
2.
Collect
tuition
or
other
charges
in
excess
of
one
hundred
fifty
dollars
in
the
case
of
educational
courses
offered
by
correspondence
courses
of
study
,
in
advance
of
the
receipt
and
approval
by
the
pupil
of
the
first
assignment
or
lesson
of
such
course.
Any
contract
providing
for
advance
payment
of
more
than
one
hundred
fifty
dollars
shall
be
voidable
on
the
part
of
the
pupil
or
any
person
liable
for
the
tuition
provided
for
in
the
contract.
3.
Promise
or
guarantee
employment
utilizing
information,
training,
or
skill
purported
to
be
provided
or
otherwise
enhanced
by
a
an
educational
course,
unless
the
promisor
or
guarantor
offers
the
student
or
prospective
student
a
bona
fide
contract
of
employment
agreeing
to
employ
said
student
or
prospective
student
for
a
period
of
not
less
than
one
hundred
twenty
days
in
a
business
or
other
enterprise
regularly
conducted
by
the
promisor
or
guarantor
and
in
which
such
information,
training,
or
skill
is
a
normal
condition
of
employment.
Sec.
11.
Section
714.18,
subsection
1,
Code
2011,
is
amended
to
read
as
follows:
Senate
File
2267,
p.
10
1.
Except
as
otherwise
provided
in
subsection
2
,
every
person,
firm,
association,
or
corporation
maintaining
or
conducting
in
Iowa
any
such
educational
course
of
instruction
by
classroom
instruction
or
by
correspondence
or
by
other
distance
delivery
method,
or
soliciting
in
Iowa
the
sale
of
such
course,
shall
file
with
the
college
student
aid
commission
all
of
the
following:
a.
A
continuous
corporate
surety
bond
to
the
state
of
Iowa
in
the
sum
of
fifty
thousand
dollars
conditioned
for
on
the
faithful
performance
of
all
contracts
and
agreements
with
students
made
by
such
person,
firm,
association,
or
corporation,
or
their
salespersons;
but
the
aggregate
liability
of
the
surety
for
all
breaches
of
the
conditions
of
the
bond
shall
not
exceed
the
sum
of
the
bond.
The
surety
on
the
bond
may
cancel
the
bond
upon
giving
thirty
days’
written
notice
to
the
college
student
aid
commission
and
thereafter
shall
be
relieved
of
liability
for
any
breach
of
condition
occurring
after
the
effective
date
of
the
cancellation.
b.
A
statement
designating
a
resident
agent
for
the
purpose
of
receiving
service
in
civil
actions.
In
the
absence
of
such
designation,
service
may
be
had
upon
the
secretary
of
state
if
service
cannot
otherwise
be
made
in
this
state.
c.
A
copy
of
any
catalog,
prospectus,
brochure,
or
other
advertising
material
intended
for
distribution
in
Iowa.
Such
material
shall
state
the
cost
of
the
educational
course
offered,
the
schedule
of
tuition
refunds
for
portions
of
the
educational
course
not
completed,
and
if
no
refunds
are
to
be
paid,
the
material
shall
so
state.
Any
contract
induced
by
advertising
materials
not
previously
filed
as
provided
in
this
chapter
shall
be
voidable
on
the
part
of
the
pupil
or
any
person
liable
for
the
tuition
provided
for
in
the
contract.
Sec.
12.
Section
714.18,
subsection
2,
paragraph
a,
subparagraphs
(1)
and
(4),
Code
2011,
are
amended
to
read
as
follows:
(1)
A
continuous
corporate
surety
bond
to
the
state
of
Iowa
in
the
sum
of
fifty
thousand
dollars
or
ten
percent
of
the
total
annual
tuition
collected,
whichever
is
less,
conditioned
for
on
the
faithful
performance
of
all
contracts
and
agreements
with
students
made
by
such
school.
A
school
desiring
to
file
a
surety
bond
based
on
a
percentage
of
annual
tuition
shall
provide
to
the
college
student
aid
commission,
in
the
form
prescribed
by
the
commission,
a
notarized
statement
attesting
to
the
total
amount
of
tuition
collected
in
the
Senate
File
2267,
p.
11
preceding
twelve-month
period.
The
commission
shall
determine
the
sufficiency
of
the
statement
and
the
amount
of
the
bond.
Tuition
information
submitted
pursuant
to
this
subparagraph
shall
be
kept
confidential.
(4)
The
college
student
aid
commission
may
accept
a
letter
of
credit
from
issued
by
a
bank
in
lieu
of
and
for
the
amount
of
the
corporate
surety
bond
required
by
this
paragraph
“a”
subparagraphs
(1)
through
(3),
as
applicable
.
Sec.
13.
Section
714.19,
unnumbered
paragraph
1,
Code
2011,
is
amended
to
read
as
follows:
None
of
the
The
provisions
of
sections
714.17
to
714.22
714.21
shall
not
apply
to
the
following:
Sec.
14.
Section
714.19,
subsections
6
through
8,
Code
2011,
are
amended
to
read
as
follows:
6.
Schools
and
educational
programs
conducted
by
firms,
corporations,
or
persons
for
the
training
of
their
own
employees,
for
which
no
fee
is
charged.
7.
Seminars,
refresher
courses
,
and
schools
of
instruction
sponsored
conducted
by
professional,
business,
or
farming
organizations
or
associations
for
the
members
and
employees
of
members
of
such
organizations
or
associations.
A
person
who
provides
instruction
under
this
subsection
who
is
not
a
member
or
an
employee
of
a
member
of
the
organization
or
association
shall
not
be
eligible
for
this
exemption.
8.
Private
business
schools
accredited
by
the
accrediting
commission
for
business
schools
or
an
acknowledged
accrediting
agency
recognized
by
the
United
States
department
of
education
or
the
council
for
higher
education
accreditation
.
Sec.
15.
Section
714.19,
Code
2011,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
10.
Private,
nonprofit
schools
that
meet
the
criteria
established
under
section
261.9,
subsection
1.
Sec.
16.
Section
714.23,
Code
2011,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
01.
a.
For
the
purposes
of
this
section
and
section
714.25,
“postsecondary
educational
program”
means
a
series
of
postsecondary
educational
courses
that
lead
to
a
recognized
educational
credential
such
as
an
academic
or
professional
degree,
diploma,
or
license.
b.
For
the
purposes
of
this
section,
“school
period”
means
the
course,
term,
payment
period,
postsecondary
educational
program,
or
other
period
for
which
the
school
assessed
tuition
charges
to
the
student.
A
school
that
assesses
tuition
charges
Senate
File
2267,
p.
12
to
the
student
at
the
beginning
of
each
course,
term,
payment
period,
or
other
period
that
is
shorter
than
the
postsecondary
educational
program’s
length
shall
base
its
tuition
refund
on
the
amount
of
tuition
costs
the
school
charged
for
the
course,
term,
or
other
period
in
which
the
student
terminated.
A
school
shall
not
base
its
tuition
refund
calculation
on
any
portion
of
a
postsecondary
educational
program
that
remains
after
a
student
terminates
unless
the
student
was
charged
for
that
remaining
portion
of
the
postsecondary
educational
program
before
the
student’s
termination
and
the
student
began
attendance
in
the
school
term
or
course.
Sec.
17.
Section
714.23,
subsections
1
through
5,
Code
2011,
are
amended
to
read
as
follows:
1.
A
person
offering
a
course
of
instruction
at
the
postsecondary
level
at
least
one
postsecondary
educational
program
,
for
profit,
that
is
more
than
four
months
in
length
and
leads
to
a
degree,
diploma,
or
license
recognized
educational
credential
,
shall
make
a
pro
rata
refund
of
no
less
than
ninety
percent
of
the
tuition
for
a
terminating
student
to
the
appropriate
agency
based
upon
charges
to
an
Iowa
resident
student
who
terminates
from
any
of
the
school’s
postsecondary
educational
programs
in
an
amount
that
is
not
less
than
ninety
percent
of
the
amount
of
tuition
charged
to
the
student
multiplied
by
the
ratio
of
completed
number
of
scheduled
school
days
to
the
number
of
calendar
days
remaining
in
the
school
period
until
the
date
equivalent
to
the
completion
of
sixty
percent
of
the
scheduled
school
calendar
days
of
in
the
school
term
or
course
period
to
the
total
number
of
calendar
days
in
the
school
period
until
the
date
equivalent
to
the
completion
of
sixty
percent
of
the
calendar
days
in
the
school
period
.
2.
Notwithstanding
the
provisions
of
subsection
1
,
the
following
tuition
refund
policy
shall
apply:
a.
If
a
terminating
student
has
completed
sixty
percent
or
more
of
a
school
term
or
course
that
is
more
than
four
months
in
length
period
,
the
person
offering
the
course
of
instruction
postsecondary
educational
program
is
not
required
to
refund
tuition
for
charges
to
the
student.
However,
if,
at
any
time,
a
student
terminates
a
school
term
or
course
that
is
more
than
four
months
in
length
postsecondary
educational
program
due
to
the
student’s
physical
incapacity
or
,
for
a
program
that
requires
classroom
instruction,
due
to
the
transfer
of
the
student’s
spouse’s
employment
to
another
city,
the
terminating
student
shall
receive
a
refund
of
tuition
charges
in
an
amount
Senate
File
2267,
p.
13
which
that
equals
the
amount
of
tuition
charged
to
the
student
multiplied
by
the
ratio
of
the
remaining
number
of
school
calendar
days
in
the
school
period
to
the
total
school
number
of
calendar
days
of
in
the
school
term
or
course
period
.
b.
A
refund
of
ninety
percent
of
the
tuition
for
a
terminating
student
shall
be
paid
to
the
appropriate
agency
based
upon
the
ratio
of
completed
number
of
school
days
to
the
total
school
days
of
the
school
term
or
course.
A
school
shall
provide
to
a
terminating
student
a
refund
of
tuition
charges
in
an
amount
that
is
not
less
than
ninety
percent
of
the
amount
of
tuition
charged
to
the
student
multiplied
by
the
ratio
of
the
remaining
number
of
calendar
days
in
the
school
period
to
the
total
number
of
calendar
days
in
the
school
period.
This
paragraph
“b”
applies
to
those
persons
offering
courses
of
instruction
at
the
postsecondary
level
at
least
one
postsecondary
educational
program
of
more
than
four
months
in
length
,
for
profit,
whose
cohort
default
rate
for
students
under
the
Stafford
loan
program
as
defined
reported
by
the
United
States
department
of
education
for
the
most
recent
federal
fiscal
year
is
more
than
one
hundred
ten
percent
of
the
national
average
cohort
default
rate
of
all
schools
for
that
program
for
that
period
the
same
federal
fiscal
year
or
six
percent,
whichever
is
higher.
3.
If
the
financial
obligations
of
a
student
are
for
three
or
fewer
months
duration,
this
section
does
not
apply.
In
the
case
of
a
program
in
which
student
progress
is
measured
only
in
clock
hours,
all
occurrences
of
“calendar
days”
in
subsections
1
and
2
shall
be
replaced
with
“scheduled
clock
hours”.
4.
Refunds
A
refund
of
tuition
charges
shall
be
paid
provided
to
the
appropriate
agency
student
within
thirty
forty-five
days
following
the
student’s
termination
date
of
the
school’s
determination
that
a
student
has
terminated
from
a
postsecondary
educational
program
.
5.
A
student
who
terminates
a
course
of
instruction
or
term
postsecondary
educational
program
shall
not
be
charged
any
fee
or
other
monetary
penalty
for
terminating
a
course
of
instruction
or
term
the
postsecondary
educational
program,
other
than
a
reduction
in
tuition
refund
as
specified
in
this
section
.
Sec.
18.
NEW
SECTION
.
714.24
Additional
requirements.
1.
A
required
filing
of
evidence
of
financial
responsibility
pursuant
to
section
714.18
must
be
completed
at
least
once
every
two
years.
Senate
File
2267,
p.
14
2.
An
entity
that
claims
an
exemption
under
section
714.19
or
714.22
must
file
an
exemption
claim
with
the
commission.
The
commission
may
approve
or
deny
the
exemption
claim.
Except
for
a
school
that
claims
an
exemption
under
section
714.19,
subsection
1,
3,
or
10,
a
filing
of
a
claim
for
an
exemption
pursuant
to
section
714.19
or
714.22
must
be
completed
at
least
once
every
two
years.
3.
An
entity
that
claims
an
exemption
under
section
714.19
or
714.22
must
file
evidence
of
financial
responsibility
pursuant
to
section
714.18
within
sixty
calendar
days
following
the
date
upon
which
conditions
that
qualify
the
entity
for
an
exemption
under
section
714.19
no
longer
exist.
The
commission
may
grant
an
entity
a
longer
period
to
file
evidence
of
financial
responsibility
based
on
documentation
the
entity
provides
to
the
commission
of
its
substantial
progress
to
comply
with
section
714.18,
subsection
1,
paragraph
“a”
.
4.
An
entity
that
is
required
to
file
evidence
of
financial
responsibility
under
section
714.18,
or
an
entity
that
files
a
claim
of
exemption
under
section
714.19
or
714.22,
shall
utilize
required
forms
approved
and
supplied
by
the
commission.
5.
The
commission
may,
at
its
discretion,
require
a
proprietary
school
that
must
comply
with
section
714.23
to
submit
its
tuition
refund
policy
to
the
commission
for
its
review
and
approval.
6.
The
commission
and
the
attorney
general
may,
individually
or
jointly,
adopt
rules
pursuant
to
chapter
17A
for
the
implementation
of
sections
714.18
through
714.25.
7.
Except
as
provided
in
section
714.18,
subsection
2,
paragraph
“a”
,
the
information
submitted
under
sections
714.18,
714.22,
714.23,
and
714.25
are
public
records
under
chapter
22.
Sec.
19.
Section
714.25,
Code
2011,
is
amended
to
read
as
follows:
714.25
Disclosure.
1.
For
purposes
of
this
chapter
section
,
unless
the
context
otherwise
requires,
“proprietary
school”
means
a
person
offering
a
course
of
instruction
at
the
postsecondary
level
postsecondary
educational
program
,
for
profit,
that
is
more
than
four
months
in
length
and
leads
to
a
degree,
diploma,
or
license
recognized
educational
credential,
such
as
an
academic
or
professional
degree,
diploma,
or
license
.
2.
A
proprietary
school
shall,
prior
to
the
time
a
student
is
obligated
for
payment
of
any
moneys,
inform
the
student,
the
college
student
aid
commission,
and
in
the
case
of
a
school
Senate
File
2267,
p.
15
licensed
under
section
157.8
,
the
board
of
cosmetology
arts
and
sciences
or
in
the
case
of
a
school
licensed
under
section
158.7
,
the
board
of
barbering,
of
all
of
the
following:
a.
The
total
cost
of
the
course
of
instruction
postsecondary
educational
program
as
charged
by
the
proprietary
school.
b.
An
estimate
of
any
fees
which
may
be
charged
the
student
by
others
which
would
be
required
if
the
student
is
to
successfully
complete
the
course
postsecondary
educational
program
and
,
if
applicable,
obtain
a
degree,
diploma,
or
license
recognized
educational
credential
.
c.
The
percentage
of
students
who
successfully
complete
the
course
postsecondary
educational
program
,
the
percentage
who
terminate
prior
to
completing
the
course
postsecondary
educational
program
,
and
the
period
of
time
upon
which
the
proprietary
school
has
based
these
percentages.
The
reporting
period
shall
not
be
less
than
one
year
in
length
and
shall
not
extend
more
than
five
years
into
the
past.
d.
If
claims
are
made
by
the
proprietary
school
as
to
successful
placement
of
students
in
jobs
upon
completion
of
the
course
of
study
proprietary
school’s
postsecondary
educational
programs
,
the
proprietary
school
shall
provide
the
student
with
all
of
the
following:
(1)
The
percentage
of
graduating
students
who
were
placed
in
jobs
in
fields
related
to
the
course
of
instruction
postsecondary
educational
programs
.
(2)
The
percentage
of
graduating
students
who
went
on
to
further
education
immediately
upon
graduation.
(3)
The
percentage
of
students
who,
ninety
days
after
graduation,
were
without
a
job
and
had
not
gone
on
to
further
education.
(4)
The
period
of
time
upon
which
the
reports
required
by
paragraphs
“a”
through
“c”
were
based.
The
reporting
period
shall
not
be
less
than
one
year
in
length
and
shall
not
extend
more
than
five
years
into
the
past.
e.
If
claims
are
made
by
the
proprietary
school
as
to
income
levels
of
students
who
have
graduated
and
are
working
in
fields
related
to
the
proprietary
school’s
course
of
instruction
postsecondary
educational
programs
,
the
proprietary
school
shall
inform
the
student
of
the
method
used
to
derive
such
information.
3.
The
requirements
of
subsection
2
shall
not
apply
to
a
proprietary
school
that
is
eligible
for
federal
student
financial
aid
under
Tit.
IV
of
the
federal
Higher
Education
Act
Senate
File
2267,
p.
16
of
1965,
as
amended.
Sec.
20.
REPEAL.
Section
714.22,
Code
2011,
is
repealed.
______________________________
JOHN
P.
KIBBIE
President
of
the
Senate
______________________________
KRAIG
PAULSEN
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
2267,
Eighty-fourth
General
Assembly.
______________________________
MICHAEL
E.
MARSHALL
Secretary
of
the
Senate
Approved
_______________,
2012
______________________________
TERRY
E.
BRANSTAD
Governor