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House File 546

Partial Bill History

Bill Text

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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