|SAME AS||No Same As|
|MLTSPNSR||Curran, Kolb, Morinello|
|Amd §605, add §679-h, Ed L|
|Establishes the regents high-tech graduate loan foregiveness program to provide annual loan payments of up to $10,000 a year to high-tech college graduates who are residents of the state, attended a college or university in the state, received a degree in a high-tech field and agree to work in a high-tech field in the state for 5 years; appropriates twenty-five million dollars therefor.|
|01/18/2018||referred to higher education|
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9077 SPONSOR: Ra (MS)
TITLE OF BILL: An act to amend the education law, in relation to establishing a regents high-tech graduate loan forgiveness program; and making an appropriation therefor   PURPOSE OR GENERAL IDEA OF BILL: To encourage New York State residents to pursue high-technology fields in college and seek employment in New York after graduation by providing loan forgiveness program for these individuals.   SUMMARY OF PROVISIONS: Section 1: Creates a new subdivision 13 of Section 605 of the Education Law to create a regents high-tech graduate loan forgiveness program. Establishes the eligibility criteria, selection process, notification procedures, service requirements, and reporting process for the loan forgiveness. Section 2: Creates a new Section 679-e of the Education Law that speci- fies there shall be one hundred loan forgiveness awards under this program awarded each year to initial recipients. Specifies that the awards shall consist of five consecutive loan forgiveness payments equal to the cost of the loan expense or ten thousand dollars, whichever is less. Additionally, outlines the disbursement procedures for the awards. Section 3: Appropriates $25 million to carry out the provisions of the high-tech loan forgiveness program.   JUSTIFICATION: In recent years, New York has made strides to attract and retain high- tech industries in our State by creating initiatives such as Centers of Excellence, STAR Centers, Advanced Research Centers, and Centers for Advanced Technology. The creation of such programs show New York's dedi- cation to bringing high-tech industries to our State. However, these businesses are reluctant to move to New York because they are worried that there will not be a qualified workforce available to make their business successful. Therefore, this legislation seeks to ensure that New York will have the workforce necessary to have these high-tech industries thrive in our State. In past years, New York has created other loan forgiveness programs to ensure that New York has an adequate number of high-caliber employees in certain necessary fields where shortages exist, such as medicine. Since New York is making strides to become a high-tech state it seems logical to now create a high-tech loan forgiveness program to ensure that we do not have a shortage of qualified workers. The proposal first seeks to provide an incentive for today's youth to enter into and succeed in high-tech programs, such as I engineering and computer science. The second goal of this program is to ensure that these intelligent students remain in New York to work and hopefully assist in combating the "brain drain" that is currently occurring.   PRIOR LEGISLATIVE HISTORY: A.3131 of 2016-Referred to Higher Education A.5762 of 2014-Reference changed to Higher Education A.7530 of 2012-Reference changed to Higher Education A.7530 of 2012-Referred to Education A.5642 of 2007-Held for consideration in Higher Education   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: $25 million.   EFFECTIVE DATE: One hundred and eighty days after it shall have become law.
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STATE OF NEW YORK ________________________________________________________________________ 9077 IN ASSEMBLY January 18, 2018 ___________ Introduced by M. of A. RA -- Multi-Sponsored by -- M. of A. CURRAN, KOLB, MORINELLO -- read once and referred to the Committee on Higher Education AN ACT to amend the education law, in relation to establishing a regents high-tech graduate loan forgiveness program; and making an appropri- ation therefor The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 605 of the education law is amended by adding a new 2 subdivision 13 to read as follows: 3 13. Regents high-tech graduate loan forgiveness program. Regents 4 high-tech graduate loan forgiveness awards shall be awarded annually to 5 high-tech graduates who agree to work or be employed in New York state 6 in a profession which requires a degree in the high-tech field in which 7 the graduate holds a degree. Such awards shall be classified and allo- 8 cated in accordance with regents rules. 9 a. Definitions. The commissioner shall promulgate rules and regu- 10 lations defining the terms "high-tech graduate" and "high-tech field" 11 and any other terms necessary to implement the provisions of this subdi- 12 vision. Provided, that the term "high-tech graduate" shall be limited 13 to persons who earned an associate's or bachelor's degree from a college 14 or university in this state. 15 b. Eligibility. (1) The applicant must be a resident of New York state 16 and be engaged in a high-tech profession. 17 (2) The applicant must agree to be employed in a high-tech profession 18 in New York state. 19 c. Selection. The commissioner shall establish criteria for the 20 selection of participants in the program. An applicant must satisfy at 21 least one of the criteria established. 22 d. Notification. (1) The commissioner shall then forward approved 23 applications to the president and shall notify unsuccessful applicants; 24 (2) The president shall verify the approved applicants' 25 (i) eligibility; and 26 (ii) total high-tech college or university student expense; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04654-01-7A. 9077 2 1 (3) The president shall notify applicants of their award entitlement. 2 e. Service requirement. Within such time as the commissioner shall by 3 regulation provide, a recipient of an award shall have agreed to be 4 employed in a high-tech profession for a period of twelve months for 5 each annual payment to be received by the recipient. In no case shall 6 the total number of months of high-tech employment required be less than 7 sixty. The president shall, in consultation with the commissioner, 8 develop and secure from each award recipient, a written agreement to 9 engage in a high-tech employment. 10 If a recipient fails to comply fully with such conditions, the president 11 shall be entitled to receive from such recipient an amount to be deter- 12 mined by the formula: 13 A = 5B (t-s) 14 --- 15 t 16 in which "A" is the amount the president is entitled to recover; "B" 17 is the sum of all payments made to the recipient and the interest on 18 such amount which would be payable if at the times such awards were paid 19 they were loans bearing interest at the maximum prevailing rate; "t" is 20 the total number of months in the recipient's period of obligated 21 services; and "s" is the number of months of service actually rendered 22 by the recipient. Any amount which the president is entitled to recover 23 under this paragraph shall be paid within the five-year period beginning 24 on the date that the recipient failed to comply with this service condi- 25 tion. Nothing in the written agreement shall affect the terms of employ- 26 ment of the individual who shall negotiate, separate and apart from the 27 program, his or her salary and other forms of employment with an agency, 28 institution or a program in which he or she shall be employed. 29 Any obligation to comply with such provisions as outlined in this 30 section shall be cancelled upon the death of the recipient. The commis- 31 sioner shall make regulations to provide for the waiver or suspension of 32 any financial obligation which would involve extreme hardship. 33 f. Reporting. A recipient of an award shall report annually to the New 34 York state higher education services corporation, on forms prescribed by 35 the president, as to the performance of the required services, commenc- 36 ing with the calendar year in which the recipient begins to engage in a 37 high-tech profession and continuing until the recipient shall have 38 completed, or it is determined that he or she shall not be obligated to 39 complete, the required employment. If the recipient shall fail to file 40 any report required hereunder within thirty days of written notice to 41 the recipient, mailed to the address shown on the last application for 42 an award or last report filed, whichever is later, the president of the 43 corporation may impose a fine of up to one thousand dollars. The presi- 44 dent shall have the discretion to waive the filing of a report, excuse a 45 delay in filing or a failure to file a report, or waive or reduce any 46 fine imposed for good cause shown. 47 g. Other awards. Award recipients shall be eligible to apply for one 48 additional award. 49 § 2. The education law is amended by adding a new section 679-h to 50 read as follows: 51 § 679-h. Regents high-tech graduate loan forgiveness program. 1. 52 Number and certification. One hundred regents high-tech graduate loan 53 forgiveness awards shall be awarded each year to initial recipients 54 thereof. Such awards shall be allocated as provided in article thirteen 55 of this chapter to eligible high-tech graduates as certified to the 56 president by the commissioner.A. 9077 3 1 2. Calculation of award amounts. Each award shall consist of five 2 consecutive annual loan forgiveness payments. Each of the annual 3 payments shall be for an amount equal to the total of high-tech college 4 or university school student loan expense or ten thousand dollars which- 5 ever is less. The president shall be responsible for calculating the 6 dollar amount of each award that eligible candidates may receive from 7 this program. For the purposes of this section, student loan expense 8 shall mean the cumulative total of the annual student loans covering the 9 cost of attendance at a high-tech college or university. Interest paid 10 or due on student loans that an applicant has taken out for use in 11 paying for such high-tech education shall be considered eligible for 12 reimbursement under this program. 13 3. Award disbursement. a. Annual award disbursements shall be the 14 responsibility of the president and shall occur prior to the beginning 15 of each of the required terms of service as specified in the service 16 contract. The board of trustees of the higher education services corpo- 17 ration shall adopt rules and regulations regarding criteria for deter- 18 mining successful completion of the employment contract and any appeal 19 process that may be required to implement this paragraph upon recommen- 20 dation of the president in consultation with the commissioner. 21 b. The disbursement of the second and subsequent annual awards shall 22 be dependent upon successful completion of the previous year's require- 23 ment of the employment contract as defined by the president, as well as 24 other criteria set forth in this section. 25 § 3. The sum of twenty-five million dollars ($25,000,000), or so much 26 thereof as may be necessary, is hereby appropriated to the education 27 department out of any moneys in the state treasury in the general fund 28 to the credit of the state purposes account, not otherwise appropriated, 29 and made immediately available for the purposes of implementing the 30 regents high-tech graduate loan forgiveness program, as established by 31 this act. Such moneys shall be payable on the audit and warrant of the 32 comptroller on vouchers certified or approved by the commissioner of 33 education in the manner prescribed by law. 34 § 4. This act shall take effect on the one hundred eightieth day after 35 it shall have become a law. Effective immediately, the addition, amend- 36 ment and/or repeal of any rules and regulations necessary to implement 37 this act on its effective date are authorized to be made on or before 38 such date.