Text: HF00545 Text: HF00547 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. COLLEGE STUDENT AID COMMISSION. There is
1 2 appropriated from the general fund of the state to the college
1 3 student aid commission for the fiscal year beginning July 1,
1 4 1999, and ending June 30, 2000, the following amount, or so
1 5 much thereof as is necessary, to be used for the purpose
1 6 designated:
1 7 For the Iowa worker retraining forgivable loan program, as
1 8 established in section 261.114:
1 9 .................................................. $ 1,750,000
1 10 Sec. 2. NEW SECTION. 261.114 IOWA WORKER RETRAINING
1 11 FORGIVABLE LOAN PROGRAM.
1 12 1. An Iowa worker retraining forgivable loan program is
1 13 established to be administered by the college student aid
1 14 commission. An individual is eligible for the forgivable loan
1 15 program if the individual is a resident of this state who is
1 16 enrolled at a community college as established under chapter
1 17 260C, an institution of higher learning under the control of
1 18 the state board of regents, or an accredited private
1 19 institution as defined in section 261.9, in a designated skill
1 20 area in which occupational shortages are anticipated as
1 21 determined pursuant to subsection 2.
1 22 2. The governor's skills forecasting council shall
1 23 annually designate the skill areas in which occupational
1 24 shortages are anticipated. In designating skills areas in
1 25 which occupational shortages are anticipated, the council
1 26 shall consider the quality of the jobs in the occupational
1 27 shortage area. In rating the quality of the jobs, the council
1 28 shall place greater emphasis on those jobs that have a higher
1 29 wage scale, have a lower turnover rate, are full-time or
1 30 career-type positions, provide comprehensive health benefits,
1 31 or have factors associated with them that are indicative of
1 32 jobs higher in quality than jobs in other occupational
1 33 shortage areas.
1 34 3. Each applicant shall, in accordance with the rules of
1 35 the commission, do the following:
2 1 a. Complete and file an application, on forms provided by
2 2 the commission, for an Iowa worker retraining forgivable loan.
2 3 The individual shall be responsible for the submission of the
2 4 financial information required for evaluation of the
2 5 applicant's need for a forgivable loan, on forms determined by
2 6 the commission.
2 7 b. File a new application and financial information
2 8 annually on the basis of which the applicant's eligibility for
2 9 a renewed forgivable loan will be evaluated and determined.
2 10 4. Forgivable loans to eligible students shall not become
2 11 due until after the student graduates or leaves school. The
2 12 individual's total loan amount, including principal and
2 13 interest, shall be reduced by twenty-five percent for each
2 14 year in which the individual remains an Iowa resident and is
2 15 employed in Iowa in the skill shortage area for which the loan
2 16 was approved. If the commission determines that the person
2 17 does not meet the criteria for forgiveness of the principal
2 18 and interest payments, the commission shall establish a plan
2 19 for repayment of the principal and interest over a five-year
2 20 period. If a person required to make the repayment does not
2 21 make the required payments, the commission shall provide for
2 22 payment collection.
2 23 5. The amount of an Iowa worker retraining forgivable loan
2 24 shall not exceed one thousand five hundred dollars annually,
2 25 or the amount of the student's established financial need,
2 26 whichever is less. However, if the loan amount approved by
2 27 the commission exceeds the student's expenses for tuition,
2 28 room and board, and mandatory fees, the balance shall be
2 29 distributed to the student for whom the loan was made.
2 30 However, the commission may exceed the maximum loan amount
2 31 based upon the demand for loans or an extraordinary demand for
2 32 trained workers in a skill shortage area.
2 33 6. The commission shall prescribe by rule the interest
2 34 rate for the forgivable loan.
2 35 7. An Iowa worker retraining forgivable loan fund is
3 1 created for deposit of payments made by forgivable loan
3 2 recipients who do not fulfill the conditions of the forgivable
3 3 loan program, or by businesses who wish to contribute
3 4 financial assistance on behalf of current or former employees.
3 5 Notwithstanding section 8.33, moneys deposited in the fund
3 6 shall not revert to the general fund of the state at the end
3 7 of any fiscal year but shall remain in the forgivable loan
3 8 fund and be continuously available to make additional loans
3 9 under the program. Notwithstanding section 12C.7, subsection
3 10 2, interest or earnings on moneys deposited in the Iowa worker
3 11 retraining forgivable loan fund shall be credited to the fund.
3 12 8. The commission shall adopt rules for determining
3 13 financial need, defining tuition and mandatory fees, defining
3 14 residence for the purposes of this section, processing and
3 15 approving applications for loan forgiveness, and determining
3 16 priority of loan forgiveness. The commission shall give
3 17 priority to students who have the greatest demonstrated
3 18 financial need, who wish to upgrade their skills, and who are
3 19 earning not more than two dollars over the minimum wage as
3 20 established in section 91D.1. The commission shall also give
3 21 priority to a person whose present or former employer
3 22 contributes financial assistance as provided in subsection 7
3 23 on behalf of the person, and the level of priority shall be
3 24 based upon the amount of the present or former employer's
3 25 contribution.
3 26 Sec. 3. FISCAL YEAR 1999-2000 OCCUPATIONAL SHORTAGE AREAS.
3 27 Notwithstanding section 261.114, subsection 2, for the fiscal
3 28 year beginning July 1, 1999, and ending June 30, 2000, the
3 29 Iowa workforce development board, in consultation with the
3 30 departments of education and economic development and the
3 31 college student aid commission, shall designate skill shortage
3 32 areas for purposes of the Iowa worker retraining forgivable
3 33 loan program.
3 34 EXPLANATION
3 35 This bill establishes an Iowa worker retraining forgivable
4 1 loan program and fund to be administered by the college
4 2 student aid commission, and appropriates $1.75 million for the
4 3 program from the general fund of the state for fiscal year
4 4 1999-2000.
4 5 Under the bill, the program will be available to Iowa
4 6 residents who are enrolled in a community college, regents
4 7 university, or an accredited private postsecondary institution
4 8 in a designated skill area in which occupational shortages are
4 9 anticipated.
4 10 The bill requires the skills forecasting council to
4 11 annually designate the skill areas in which occupational
4 12 shortages are anticipated. However, for fiscal year 1999-
4 13 2000, the designated shortage areas are to be determined by
4 14 the Iowa workforce development board, in consultation with the
4 15 departments of education and economic development, and the
4 16 college student aid commission.
4 17 The commission is directed to give priority to students who
4 18 have the greatest demonstrated financial need, who wish to
4 19 upgrade their skills, and who are earning not more than two
4 20 dollars over the minimum wage as established in Code section
4 21 91D.1. The commission is also to give priority to a person
4 22 whose present or former employer contributes financial
4 23 assistance on behalf of the person, and the level of priority
4 24 shall be based upon the amount of the present or former
4 25 employer's contribution.
4 26 After the student graduates or leaves school, the
4 27 individual's total loan amount, including principal and
4 28 interest, is reduced by 25 percent for each year in which the
4 29 individual remains an Iowa resident and is employed in Iowa in
4 30 the skill shortage area for which the loan was approved. The
4 31 commission is required to establish a plan for repayment of
4 32 the principal and interest over a five-year period if an
4 33 individual does not meet the requirements for loan
4 34 forgiveness. If the individual does not repay as required,
4 35 the commission shall provide for payment collection.
5 1 The amount of an Iowa worker retraining forgivable loan
5 2 shall not exceed $1,500 annually, or the amount of the
5 3 student's established financial need, whichever is less.
5 4 However, the commission may exceed the maximum amount based
5 5 upon the demand for loan forgiveness or an extraordinary
5 6 demand for trained workers in a skill shortage area.
5 7 An Iowa worker retraining forgivable loan fund is created
5 8 for deposit of payments made by forgivable loan recipients who
5 9 do not fulfill the conditions of the forgivable loan program,
5 10 or by businesses who wish to contribute financial assistance
5 11 on behalf of current or former employees. Moneys deposited in
5 12 the forgivable loan fund carry over to be continuously
5 13 available to make additional loans under the program.
5 14 LSB 1535YH 78
5 15 kh/gg/8.5
Text: HF00545 Text: HF00547 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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