House File 2577 - Introduced HOUSE FILE 2577 BY RUNNING-MARQUARDT , STECKMAN , B. MEYER , ANDERSON , COHOON , KONFRST , DONAHUE , GASKILL , DERRY , WINCKLER , KURTH , WILBURN , HUNTER , KURTZ , FORBES , OURTH , McKEAN , OLDSON , HALL , STAED , WILLIAMS , KACENA , NIELSEN , ABDUL-SAMAD , BEARINGER , WOLFE , SUNDE , MATSON , WESSEL-KROESCHELL , LENSING , MASCHER , BROWN-POWERS , EHLERT , BENNETT , and R. SMITH A BILL FOR An Act establishing a loan repayment program and fund for 1 eligible individuals in high-demand jobs, including 2 certified nurse aides, child care workers, and direct care 3 workers, to be administered by the college student aid 4 commission, and making an appropriation. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 5304YH (7) 88 ko/jh

H.F. 2577 Section 1. NEW SECTION . 261.133 High-demand jobs loan 1 repayment program —— fund. 2 1. Definitions. For purposes of this section, unless the 3 context otherwise requires: 4 a. “Child care” means the same as defined in section 237A.1. 5 b. “Commission” means the college student aid commission. 6 c. “Direct care worker” means the same as defined in section 7 249L.2. 8 d. “High-demand jobs” means jobs on the list of high-demand 9 jobs created by the workforce development board pursuant to 10 section 84A.1B, subsection 14, and also includes the following: 11 (1) Certified nurse aide. 12 (2) Child care worker. 13 (3) Direct care worker. 14 e. “Fund” means the high-demand jobs loan repayment fund. 15 f. “Postsecondary institute” means an institution of higher 16 learning under the control of the state board of regents, 17 a community college established under chapter 260C, or an 18 accredited private institution as defined in section 261.9. 19 g. “Program” means the high-demand jobs loan repayment 20 program. 21 h. “Qualified student loan” means a loan that was made, 22 insured, or guaranteed under Tit. IV of the federal Higher 23 Education Act of 1965, as amended, or under Tit. VII or VIII of 24 the federal Public Health Service Act, as amended, directly to 25 the borrower for attendance at a postsecondary institute. 26 2. Program established. A high-demand jobs loan repayment 27 program is established to be administered by the commission for 28 purposes of repaying the qualified student loans of eligible 29 individuals who have worked in the state for a minimum of 30 twelve consecutive months in a high-demand job after graduation 31 from a postsecondary institute. 32 3. Application requirements. Each applicant to the program, 33 in accordance with rules adopted by the commission, shall 34 complete all of the following requirements: 35 -1- LSB 5304YH (7) 88 ko/jh 1/ 4

H.F. 2577 a. Submit an application and any additional information 1 required by the commission. 2 b. File a new application annually and submit any 3 information as required by the commission to allow the 4 commission to make a determination regarding the applicant’s 5 continued eligibility for the program. An applicant must 6 continue to work in a high-demand job to remain eligible for 7 the program. 8 4. Loan repayments. The loan repayment funds awarded to 9 an individual under the program shall not annually exceed the 10 lesser of six thousand dollars and the total amount of the 11 individual’s total qualified student loan. An individual shall 12 not be eligible for the program for more than two consecutive 13 years. The maximum aggregate of loan repayment funds under 14 the program that an individual may receive is twelve thousand 15 dollars. 16 5. Selection criteria. The commission shall establish 17 by rule the criteria to be used in evaluating applications 18 submitted under this section. An applicant must be a resident 19 of Iowa and must have graduated from a postsecondary institute. 20 An applicant cannot be eligible for, or participating in, any 21 other state of Iowa student loan repayment program. 22 6. High-demand job loan repayment fund. A high-demand job 23 loan repayment fund is created in the state treasury as a 24 separate fund under the control of the commission for deposit 25 of moneys appropriated to or received by the commission for use 26 under the program. Notwithstanding section 8.33, any balance 27 in the fund on June 30 of any fiscal year shall not revert to 28 the general fund of the state but shall remain in the fund 29 and be continuously available for loan repayments under the 30 program. Notwithstanding section 12C.7, subsection 2, interest 31 or earnings on moneys deposited in the fund shall be credited 32 to the fund. 33 7. Rules. The commission shall adopt rules pursuant to 34 chapter 17A to administer this section. 35 -2- LSB 5304YH (7) 88 ko/jh 2/ 4

H.F. 2577 Sec. 2. COLLEGE STUDENT AID COMMISSION HIGH-DEMAND JOBS 1 LOAN REPAYMENT FUND. There is appropriated from the general 2 fund of the state to the college student aid commission for the 3 fiscal year beginning July 1, 2020, and ending June 30, 2021, 4 the following amount, or so much thereof as is necessary, to be 5 used for the purposes designated: 6 For deposit in the high-demand jobs loan repayment fund 7 created pursuant to section 261.133, as enacted by this Act: 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000,000 9 EXPLANATION 10 The inclusion of this explanation does not constitute agreement with 11 the explanation’s substance by the members of the general assembly. 12 This bill establishes a loan repayment program for eligible 13 individuals in high-demand jobs, including certified nurse 14 aides, child care workers, and direct care workers. 15 The bill defines high-demand jobs as the jobs that the 16 workforce development board maintains pursuant to Code section 17 84A.1B(14), as well as certified nurse aides, child care 18 workers, and direct care workers. “Child care” and “direct 19 care worker” are defined in the bill. 20 The bill establishes a high-demand jobs loan repayment 21 program (program) that is administered by the college student 22 aid commission (commission) for purposes of repaying the 23 federal student loans of qualified applicants who have 24 worked in the state for a minimum of 12 consecutive months 25 in a high-demand job after graduation from a postsecondary 26 institute. “Postsecondary institute” is defined in the bill 27 as an institution of higher learning under the control of the 28 state board of regents, a community college established under 29 Code chapter 260C, or an accredited private institution as 30 defined in Code section 261.9. 31 Applicants for the program must submit an application to 32 the commission, be a resident of Iowa, and have graduated from 33 a postsecondary institute. An applicant cannot be eligible 34 for, or participating in, any other state of Iowa student loan 35 -3- LSB 5304YH (7) 88 ko/jh 3/ 4

H.F. 2577 repayment program. The commission is required to establish by 1 rule the criteria to be used in evaluating applications. An 2 individual must file a new application annually and submit any 3 information as required by the commission in order for the 4 commission to make a determination regarding the applicant’s 5 continued eligibility for the program. 6 The annual loan repayment funds awarded to an individual 7 cannot exceed the lesser of $6,000 and the total amount of 8 the individual’s total qualified student loan. The total 9 aggregate amount an individual may be awarded is $12,000 and 10 an individual cannot be eligible for the program for more than 11 two consecutive years. 12 The bill creates a high-demand job loan repayment fund 13 (fund) for deposit of moneys appropriated to or received by 14 the commission for use under the program. For the fiscal year 15 beginning July 1, 2020, $5 million is appropriated from the 16 general fund of the state to the commission for deposit in the 17 fund. Moneys deposited in the fund do not revert to any other 18 fund of the state at the end of any fiscal year but remain in 19 the fund and are continuously available for loan repayments 20 under the program. Interest or earnings on moneys deposited in 21 the fund are credited to the fund. 22 The commission is required to adopt rules to administer the 23 program. 24 -4- LSB 5304YH (7) 88 ko/jh 4/ 4