Text: HF00547 Text: HF00549 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 261.25, subsection 4, Code 1999, is 1 2 amended to read as follows: 1 3 4. There is appropriated from the general fund of the 1 4 state to the commission for each fiscal year the sum ofninety1 5 two hundred fifty thousand dollars for theindustrial1 6technologypractitioner shortage forgivable loan program 1 7 established in section 261.111. 1 8 Sec. 2. Section 261.111, Code 1999, is amended by striking 1 9 the section and inserting in lieu thereof the following: 1 10 261.111 PRACTITIONER SHORTAGE FORGIVABLE LOAN PROGRAM. 1 11 1. A practitioner shortage forgivable loan program is 1 12 established to be administered by the college student aid 1 13 commission. An individual is eligible for the forgivable loan 1 14 program if the individual is a resident of this state who is 1 15 enrolled as a sophomore, junior, senior, or graduate student 1 16 in an approved practitioner preparation program, in a 1 17 designated professional area in which practitioner shortages 1 18 are anticipated, at an institution of higher learning under 1 19 the control of the state board of regents or an accredited 1 20 private institution as defined in section 261.9. 1 21 2. The director of the department of education shall 1 22 annually designate the professional areas in which 1 23 practitioner shortages are anticipated. The director shall 1 24 periodically conduct a survey of school districts, accredited 1 25 nonpublic schools, and approved practitioner preparation 1 26 programs to determine current shortage areas and predict 1 27 future shortage areas. 1 28 3. Each applicant shall, in accordance with the rules of 1 29 the commission, do the following: 1 30 a. Complete and file an application for a practitioner 1 31 shortage forgivable loan. The individual shall be responsible 1 32 for the submission of any financial information required by 1 33 the commission. 1 34 b. Report promptly to the commission any information 1 35 requested. 2 1 c. File a new application and submit financial information 2 2 as required by the commission annually on the basis of which 2 3 the applicant's eligibility for a renewed forgivable loan will 2 4 be evaluated and determined. 2 5 4. Forgivable loans to eligible students shall not become 2 6 due until after the student graduates or leaves school. The 2 7 individual's total loan amount, including principal and 2 8 interest, shall be reduced by twenty percent for each year in 2 9 which the individual remains an Iowa resident and is employed 2 10 in Iowa by a school district or an accredited nonpublic school 2 11 as a practitioner in a professional shortage area. If the 2 12 commission determines that the person does not meet the 2 13 criteria for forgiveness of the principal and interest 2 14 payments, the commission shall establish a plan for repayment 2 15 of the principal and interest over a ten-year period. If a 2 16 person does not make the payments as required, the commission 2 17 shall provide for payment collection. 2 18 5. The amount of a practitioner shortage forgivable loan 2 19 shall not exceed three thousand dollars annually, or the 2 20 amount of the student's established financial need, whichever 2 21 is less. 2 22 6. The commission shall prescribe by rule the interest 2 23 rate for the forgivable loan. 2 24 7. A practitioner shortage forgivable loan repayment fund 2 25 is created for deposit of payments made by forgivable loan 2 26 recipients who do not fulfill the conditions of the forgivable 2 27 loan program. Notwithstanding section 8.33, moneys deposited 2 28 in the fund shall not revert to the general fund of the state 2 29 at the end of any fiscal year but shall remain in the 2 30 forgivable loan repayment fund and be continuously available 2 31 to make additional loans under the program. Notwithstanding 2 32 section 12C.7, subsection 2, interest or earnings on moneys 2 33 deposited in the loan repayment fund shall be credited to the 2 34 fund. 2 35 8. For purposes of this section, unless the context 3 1 otherwise requires, "practitioner" means the same as defined 3 2 in section 272.1. 3 3 Sec. 3. REMAINING INDUSTRIAL TECHNOLOGY FORGIVABLE LOAN 3 4 PROGRAM BALANCE. Notwithstanding section 8.33 or section 3 5 261.25, subsection 4, Code 1999, or any other provision to the 3 6 contrary, unencumbered or unobligated funds remaining on June 3 7 30, 1999, for purposes of the industrial technology forgivable 3 8 loan program established in section 261.111, shall be 3 9 available to the college student aid commission for 3 10 expenditure for the fiscal year beginning July 1, 1999, and 3 11 for succeeding fiscal years for the purposes of promoting the 3 12 practitioner shortage forgivable loan program established in 3 13 section 261.111, and Iowa worker retraining forgivable loan 3 14 program established in section 261.114, if the Seventy-eighth 3 15 General Assembly, 1999 Session, enacts legislation 3 16 establishing the program. 3 17 Sec. 4. Section 261.112, Code 1999, is repealed. 3 18 Sec. 5. EFFECTIVE DATE. Section 3 of this Act, relating 3 19 to the remaining industrial technology forgivable loan program 3 20 balance, being deemed of immediate importance, takes effect 3 21 upon enactment. 3 22 EXPLANATION 3 23 This bill replaces the industrial technology forgivable 3 24 loan program with a practitioner shortage forgivable loan 3 25 program. However, because industrial technology is a 3 26 designated shortage area, students who received loans under 3 27 the industrial technology forgivable loan program will still 3 28 qualify for loan forgiveness. The college student aid 3 29 commission shall administer the program. The bill 3 30 appropriates from the general fund of the state annually for 3 31 the program. 3 32 Under the bill, the program will be available to Iowa 3 33 residents who are enrolled as sophomores, juniors, seniors, or 3 34 graduate students in approved practitioner preparation 3 35 programs, in a designated professional area in which 4 1 practitioner shortages are anticipated, at a regents 4 2 university, or an accredited private institution. 4 3 The bill requires the director of the department of 4 4 education to annually designate the professional areas in 4 5 which practitioner shortages are anticipated and to 4 6 periodically conduct a survey of school districts, accredited 4 7 nonpublic schools, and approved practitioner preparation 4 8 programs to determine current shortage areas and predict 4 9 future shortage areas. 4 10 Forgivable loans to eligible students shall not become due 4 11 until after the student graduates or leaves school. The 4 12 individual's total loan amount, including principal and 4 13 interest, shall be reduced by 20 percent for each year in 4 14 which the individual remains an Iowa resident and is employed 4 15 in Iowa by a school district or an accredited nonpublic school 4 16 as a practitioner in a professional shortage area. If the 4 17 commission determines that the person does not meet the 4 18 criteria for forgiveness of the principal and interest 4 19 payments, the commission shall establish a plan for repayment 4 20 of the principal and interest over a 10-year period. If a 4 21 person does not make the required payments, the commission 4 22 shall provide for payment collection. 4 23 The amount of a practitioner shortage forgivable loan shall 4 24 not exceed $3,000 annually, or the amount of the student's 4 25 established financial need, whichever is less. The commission 4 26 is directed to prescribe by rule the interest rate for the 4 27 forgivable loan. 4 28 A practitioner shortage forgivable loan repayment fund is 4 29 created for deposit of payments made by forgivable loan 4 30 recipients who do not fulfill the conditions of the forgivable 4 31 loan program. Moneys deposited in the forgivable loan 4 32 repayment fund shall carryover to be continuously available to 4 33 make additional loans under the program. 4 34 The bill also includes a provision that directs that the 4 35 moneys remaining from the FY 1998-1999 appropriation for the 5 1 industrial technology forgivable loan program to be used to 5 2 promote the practitioner shortage forgivable loan program and, 5 3 if enacted, the Iowa worker retraining forgivable loan 5 4 program. This provision takes effect upon enactment. 5 5 LSB 1534YH 78 5 6 kh/jw/5.5
Text: HF00547 Text: HF00549 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
© 1999 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Wed Jan 12 05:55:23 CST 2000
URL: /DOCS/GA/78GA/Legislation/HF/00500/HF00548/990308.html
jhf