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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