•  Summary 
  •  Actions 
  •  Committee Votes 
  •  Floor Votes 
  •  Memo 
  •  Text 
  •  LFIN 
  •  Chamber Video/Transcript 

A09077 Summary:

COSPNSRGiglio, Garbarino
MLTSPNSRCurran, 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.
Go to top    

A09077 Actions:

01/18/2018referred to higher education
Go to top

A09077 Memo:

submitted in accordance with Assembly Rule III, Sec 1(f)
  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.
Go to top

A09077 Text:

                STATE OF NEW YORK
                   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
        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.

        A. 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.
Go to top