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PAG LIN
1 1 Section 1. NEW SECTION. 15.361 TITLE.
1 2 This part shall be known and may be cited as the
1 3 "Recruiting Our Own Targeted Students (ROOTS) Program".
1 4 Sec. 2. NEW SECTION. 15.362 DEFINITIONS.
1 5 As used in this part, unless the context otherwise
1 6 requires:
1 7 1. "Agreement" means the agreement entered into under
1 8 section 15.363, subsection 2, paragraph "e".
1 9 2. "Department" means the department of economic
1 10 development.
1 11 3. "Eligible postsecondary institution" means the same as
1 12 defined in section 261C.3.
1 13 4. "ROOTS program" or "program" means the recruiting our
1 14 own targeted students program established by the department as
1 15 provided in section 15.363.
1 16 5. "Student loan" means a loan, including any federal or
1 17 state loan, made to a student for which the student is under a
1 18 legal obligation to repay and which was used to pay tuition,
1 19 mandatory fees, and room and board at an eligible
1 20 postsecondary institution.
1 21 6. "Targeted industry" means those industries designated
1 22 as provided in section 15.364.
1 23 7. "Technical position" means a position that requires
1 24 very highly specialized knowledge, usually scientific or
1 25 mathematical, with training specifically tailored for the
1 26 applicable targeted industry. "Technical position" includes
1 27 but is not limited to computer programmer, engineer, genetic
1 28 scientist, and chemical research and development specialist.
1 29 8. "Tuition" includes any charges and mandatory fees and
1 30 the cost of textbooks used by a student.
1 31 Sec. 3. NEW SECTION. 15.363 ROOTS PROGRAM – LOAN
1 32 REPAYMENTS.
1 33 1. A recruiting our own targeted students program shall be
1 34 established by the department to provide a tool for Iowa
1 35 businesses to recruit recent college graduates for positions
2 1 in a targeted industry. The program shall allow for payment
2 2 of student loans for individuals who have received all of
2 3 their education from eligible postsecondary institutions and
2 4 who work in Iowa in a targeted industry for a designated time
2 5 which is for at least three years but for not more than ten
2 6 years after graduation. Student loans shall be paid off at a
2 7 percentage rate designated by the college student aid
2 8 commission which rates shall be contained within the following
2 9 ranges:
2 10 Length of time Percentage rate and maximum
2 11 with targeted industry amount of student loan payment
2 12 3 years but less than 5 years 20% to 30% up to $2,500
2 13 5 years but less than 7 years 40% to 60% up to $5,000
2 14 7 years but less than 10 years 70% to 80% up to $7,500
2 15 10 years or more 100% up to $10,000
2 16 2. An individual is eligible for student loan payments at
2 17 the percentage rates set pursuant to subsection 1 if all of
2 18 the following have been met:
2 19 a. The individual was hired in a technical position by a
2 20 business or division of a business in a calendar year for
2 21 which the industry in which the business or division of a
2 22 business does business was designated a target industry.
2 23 b. The individual attended an eligible postsecondary
2 24 institution from which a certificate, diploma, or degree was
2 25 obtained which met the qualifications for the technical
2 26 position.
2 27 c. One or more student loans were acquired by the
2 28 individual for attendance at the eligible postsecondary
2 29 institution from which the certificate, diploma, or degree was
2 30 obtained.
2 31 d. The business or division of a business, as applicable,
2 32 is located in Iowa or most of its business is done in Iowa and
2 33 the individual will do at least ninety percent of the
2 34 individual's work in Iowa.
2 35 e. An agreement between the individual, business or the
3 1 division of a business, as appropriate, and the college
3 2 student aid commission has been entered into. The agreement
3 3 shall contain at least all of the following:
3 4 (1) The amount of student loans that qualify for payment
3 5 under the program.
3 6 (2) The percentage rate schedule that will be used to
3 7 determine the student loan payments under the program as
3 8 established pursuant to subsection 1.
3 9 (3) That student loan payments under the program shall be
3 10 made according to the percentage rate schedule under
3 11 subparagraph (2) even if all or a portion of the student loans
3 12 has been repaid by the individual.
3 13 (4) That the new jobs credit from withholding
3 14 authorization under section 15.366 shall be used to fund the
3 15 student loan payments under the program.
3 16 3. For purposes of this section the following applies:
3 17 a. Student loans made to individuals for school years
3 18 beginning on or after July 1, 1994, are eligible for payment
3 19 under this section.
3 20 b. If an individual is hired as required under subsection
3 21 2, paragraph "a", the individual shall not lose eligibility
3 22 for student loan payments under the program solely because the
3 23 industry in which the business or the division of a business
3 24 does business is no longer designated as a targeted industry.
3 25 c. An individual is ineligible for payments under the
3 26 program if the individual leaves a technical position similar
3 27 to the technical position for which the individual is hired by
3 28 a business or division of a business doing business in a
3 29 targeted industry.
3 30 Sec. 4. NEW SECTION. 15.364 TARGETED INDUSTRIES.
3 31 1. The targeted industries as of the effective date of
3 32 this Act are those engaged in the business or manufacture of
3 33 any of the following:
3 34 a. Value-added agricultural products.
3 35 b. Insurance and financial services.
4 1 c. Plastics.
4 2 d. Metals.
4 3 e. Printing paper or packaging products.
4 4 f. Drugs and pharmaceuticals.
4 5 g. Software development.
4 6 h. Instruments and measuring devices and medical
4 7 instruments.
4 8 i. Recycling.
4 9 j. Engineering, as designated by the department.
4 10 The industries listed in this subsection shall remain
4 11 targeted industries until at least the end of the calendar
4 12 year beginning January 1, 2003.
4 13 2. The department, after consultation with the department
4 14 of workforce development, may designate industries in addition
4 15 to those specified in subsection 1 as targeted industries and
4 16 may continue designating any industries in subsection 1 as
4 17 targeted industries beyond the calendar year beginning January
4 18 1, 2003. An industry designated as a targeted industry shall
4 19 be so designated only for the calendar year in which
4 20 designated unless redesignated for subsequent years.
4 21 Sec. 5. NEW SECTION. 15.365 STUDENT LOAN PAYMENT FUND.
4 22 A student loan payment fund is created, under the control
4 23 of the college student aid commission, as a separate fund in
4 24 the office of the treasurer of state. Moneys deposited into
4 25 the fund shall be received from the new jobs credit from
4 26 withholding moneys as provided in section 15.366 and from any
4 27 moneys appropriated to the fund by the general assembly.
4 28 Notwithstanding section 12C.7, subsection 2, interest or
4 29 earnings on moneys in the fund shall be credited to the fund.
4 30 Section 8.33 does not apply to moneys deposited into or
4 31 appropriated to the fund.
4 32 Moneys in the student loan payment fund shall be used
4 33 solely for the payment of student loans under the ROOTS
4 34 program as provided in section 15.363.
4 35 Sec. 6. NEW SECTION. 15.366 NEW JOBS CREDIT FROM
5 1 WITHHOLDING.
5 2 If an agreement provides that all or part of student loan
5 3 payments are to be met by receipt of new jobs credit from
5 4 withholding, the following shall apply:
5 5 1. New jobs credit from withholding shall be based upon
5 6 the wages paid to employees with a certificate, diploma, or
5 7 degree from an eligible postsecondary institution hired in the
5 8 new jobs.
5 9 2. An amount equal to one and one-half percent of the
5 10 gross wages paid by the employer to each hired employee with a
5 11 certificate, diploma, or degree from an eligible postsecondary
5 12 institution shall be credited from the payment made by an
5 13 employer pursuant to section 422.16. If the amount of the
5 14 withholding by the employer is less than one and one-half
5 15 percent of the gross wages paid to the employees covered by
5 16 the agreement, the employer shall receive a credit against
5 17 other withholding taxes due by the employer. The employer
5 18 shall remit the amount of the credit quarterly, in the same
5 19 manner as withholding payments are reported to the department
5 20 of revenue and finance, to the college student aid commission
5 21 to be allocated to and when collected paid into the student
5 22 loan payment fund to make student loan payments under the
5 23 agreement until the total amount of payments specified in the
5 24 agreement are made.
5 25 3. The employer shall certify to the department of revenue
5 26 and finance that the credit from withholding is in accordance
5 27 with an agreement and shall provide other information the
5 28 department may require.
5 29 4. The college student aid commission shall certify to the
5 30 department of revenue and finance the amount of new jobs
5 31 credit from withholding an employer has remitted to the
5 32 student loan payment fund and shall provide other information
5 33 the department may require.
5 34 5. An employee covered by an agreement or an employee for
5 35 which the employer received a credit against withholding taxes
6 1 due from that employee shall receive full credit for the
6 2 amount withheld as provided in section 422.16.
6 3 Sec. 7. This Act, being deemed of immediate importance,
6 4 takes effect upon enactment.
6 5 EXPLANATION
6 6 The bill creates a "recruiting our own targeted students"
6 7 program for the purpose of keeping graduates of Iowa
6 8 postsecondary colleges and universities in the state by
6 9 offering to pay student loans incurred by graduates who attend
6 10 colleges and universities in the state if they are hired by a
6 11 business or division of a business that does business in an
6 12 industry that has been designated as a targeted industry by
6 13 the department of economic development. Certain businesses
6 14 have been designated in the bill as targeted industries while
6 15 others may be so designated subsequently by the department.
6 16 Some of those designated in the bill include value-added
6 17 agricultural products, plastics, drugs, software development,
6 18 recycling, and engineering.
6 19 In addition to the business or division of a business doing
6 20 business in a targeted industry, the business or division must
6 21 be located in the state or do most of its business in the
6 22 state and the individual must do 90 percent of the
6 23 individual's work in the state. The individual must work at
6 24 least three years with the business or division before being
6 25 eligible for loan payments.
6 26 Funding for the payments will be from 1.5 percent of the
6 27 amount of state income tax withholding from wages of the
6 28 individual. The individual will get credit on the state
6 29 income tax for the total amount withheld from the wages. The
6 30 credit would cease once all the student loans that are
6 31 eligible are paid, which would be done in no longer than 10
6 32 years under the bill.
6 33 The bill takes effect upon enactment.
6 34 LSB 3592YH 77
6 35 kh/sc/14.1
Text: HF02302 Text: HF02304 Text: HF02300 - HF02399 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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