Print
Senate File 2244 - IntroducedA Bill ForAn Act 1establishing the nonprofit employer recruitment and
2retention loan repayment program within the college student
3aid commission and making appropriations.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 261.133 Nonprofit employer
2recruitment and retention loan repayment program.
31. As used in this section, unless the context otherwise
4requires:
5a. “Eligible loan” means the eligible employee’s total
6federally guaranteed Stafford loan amount under the federal
7family education loan program or the federal direct loan
8program, the eligible employee’s federal grad plus loans,
9or the eligible employee’s federal Perkins loan, including
10principal and interest.
11b. “Nonprofit organization” means an organization organized
12under chapter 504 and qualifying under section 501(c)(3) of the
13Internal Revenue Code as an organization exempt from federal
14income tax under section 501(a) of the Internal Revenue Code
15that satisfies all of the following requirements:
16(1) The organization must operate primarily in this state.
17(2) The organization must serve critical community needs,
18including food insecurity, housing insecurity, youth education,
19senior education, health, or community support.
20c. “Part-time” means at least seventy percent of a forty-
21hour workweek.
222. A nonprofit employer recruitment and retention loan
23repayment program is established to be administered by the
24college student aid commission for purposes of providing
25payments to nonprofit organizations to be used for providing
26loan repayments for eligible loans to certain employees to
27assist in the recruitment and retention of those employees
28who agree to remain full-time employees of the nonprofit
29organization for five years or who agree to remain part-time
30employees of the nonprofit organization for seven years.
313. An employee of a nonprofit organization is eligible
32to apply to enter into a program agreement with the college
33student aid commission and the nonprofit organization for
34loan repayments under this section if all of the following
35requirements are met:
-1- 1a. The employee has academic experience in leadership or
2the management of nonprofit organizations or has attained
3a credential or certification related to leadership or the
4management of nonprofit organizations.
5b. The total annual compensation the nonprofit organization
6pays to the employee is less than or equal to sixty thousand
7dollars.
84. A program agreement shall be entered into among an
9eligible employee, the nonprofit organization, and the college
10student aid commission. Pursuant to the program agreement, to
11receive loan repayments from a nonprofit organization pursuant
12to subsection 6, an eligible employee shall agree to engage in
13either five years of full-time employment with the nonprofit
14organization or seven years of part-time employment with the
15nonprofit organization.
165. The college student aid commission shall give priority to
17residents of Iowa and, if requested by the adjutant general, to
18eligible employees who are members of the Iowa national guard.
196. The amount of loan repayment to a nonprofit organization
20for an eligible employee who enters into an agreement pursuant
21to subsection 4, if the eligible employee is in compliance
22with the obligations under the program agreement, shall be no
23more than five thousand dollars annually for an eligible loan.
24Payments under this section shall be made to the nonprofit
25organization for each year of the employee’s employment during
26a period of five consecutive years of full-time employment or
27seven consecutive years of part-time employment and shall not
28exceed a total of twenty-five thousand dollars. If the total
29amount of an eligible employee’s eligible loan upon application
30is less than twenty-five thousand dollars, the college student
31aid commission shall divide the total amount of the eligible
32employee’s eligible loan by five, if the eligible employee is a
33full-time employee, or by seven, if the eligible employee is
34a part-time employee, to determine the annual amount of loan
35repayment the nonprofit organization is eligible to receive and
-2-1provide to an eligible employee.
27. An employee of a nonprofit organization who entered
3into a program agreement pursuant to subsection 4 may apply
4to the college student aid commission to amend the program
5agreement to allow the employee to switch to part-time
6employment or full-time employment, as applicable. The
7college student aid commission, nonprofit organization, and
8the employee may consent to amend the program agreement under
9which the employee shall engage in part-time employment with
10the nonprofit organization for an extended period of part-time
11employment determined by the college student aid commission to
12be proportional to the amount of full-time employment remaining
13under the original program agreement.
148. The obligation of an employee of a nonprofit organization
15to engage in either full-time employment or part-time
16employment under a program agreement entered into pursuant to
17subsection 4 shall be considered satisfied when any of the
18following conditions are met:
19a. The terms of the program agreement are completed.
20b. The employee dies.
21c. The employee, due to a permanent disability, is unable
22to work either full-time or part-time for the nonprofit
23organization.
249. If an employee fails to fulfill the obligation to engage
25in employment in accordance with the program agreement entered
26into pursuant to subsection 4, the employee shall be subject
27to repayment to the college student aid commission of the loan
28amount plus interest as specified by rule. The college student
29aid commission shall remit all repayments made pursuant to this
30subsection to the nonprofit employer recruitment and retention
31loan repayment program fund established pursuant to subsection
3211.
3310. The college student aid commission shall submit in
34a report to the general assembly by January 1, annually, the
35number of individuals who received loan repayment pursuant
-3-1to this section, the nonprofit organizations that entered
2into program agreements pursuant to subsection 4, where the
3individuals who received loan repayment pursuant to this
4section worked, the amount paid to each nonprofit organization,
5the amount each nonprofit organization paid to each program
6participant, and other information identified by the college
7student aid commission as indicators of outcomes of the
8program.
911. A nonprofit employer recruitment and retention loan
10repayment program fund is created in the state treasury as
11a separate fund under the control of the college student
12aid commission. All moneys deposited or paid into the fund
13are appropriated and made available to the college student
14aid commission to be used for meeting the requirements of
15this section. The college student aid commission shall use
16moneys in the fund to leverage available federal moneys if
17possible. Notwithstanding section 8.33, any balance in the
18fund on June 30 of any fiscal year shall not revert to the
19general fund of the state but shall remain in the fund and be
20continuously available for loan repayment under the program.
21Notwithstanding section 12C.7, subsection 2, interest or
22earnings on moneys deposited in the fund shall be credited to
23the fund.
2412. The college student aid commission shall adopt rules
25pursuant to chapter 17A to administer this section.
26 Sec. 2. COLLEGE STUDENT AID COMMISSION — NONPROFIT
27EMPLOYER RECRUITMENT AND RETENTION LOAN REPAYMENT PROGRAM —
28APPROPRIATION. There is appropriated from the general fund of
29the state to the college student aid commission for the fiscal
30year beginning July 1, 2022, and ending June 30, 2023, the
31following amount, or so much thereof as is necessary, to be
32used for the purposes designated:
33For the nonprofit employer recruitment and retention loan
34repayment program established pursuant to section 261.133:
.................................................. $355,000,000
-4-1EXPLANATION
2The inclusion of this explanation does not constitute agreement with
3the explanation’s substance by the members of the general assembly.
4This bill establishes the nonprofit employer recruitment and
5retention loan repayment program within the college student aid
6commission (commission).
7The bill requires the commission to administer the program
8for purposes of providing payments to nonprofit organizations
9to be used for providing loan repayments to certain employees
10to assist in the recruitment and retention of those employees
11who agree to remain full-time employees of the nonprofit
12organization for five years or who agree to remain part-time
13employees of the nonprofit organization for seven years.
14The bill provides that an employee of a nonprofit
15organization is eligible to apply to enter into a program
16agreement with the commission and the nonprofit organization
17for loan repayments under the program if the employee has
18academic experience in leadership or the management of
19nonprofit organizations or has attained a credential or
20certification related to leadership or the management of
21nonprofit organizations, and if the total annual compensation
22the nonprofit organization pays to the employee is less than or
23equal to $60,000.
24The bill provides that the eligible employee, nonprofit
25organization, and commission shall enter into a program
26agreement for loan repayments. Additionally, the bill provides
27that, in order to receive loan repayments, an eligible employee
28shall agree to engage in either five years of full-time
29employment with the nonprofit organization or seven years of
30part-time employment with the nonprofit organization. The bill
31requires the commission to give priority to residents of Iowa
32and, if requested by the adjutant general, to applicants who
33are members of the Iowa national guard.
34The bill limits the amount of loan repayment to a nonprofit
35organization for an eligible employee who enters into a program
-5-1agreement to no more than $5,000 annually and no more than
2$25,000 total.
3The bill authorizes an employee who entered into a program
4agreement to apply to the commission to amend the agreement to
5allow the employee to switch to part-time employment or full-
6time employment, as applicable. The bill provides that the
7commission, nonprofit organization, and employee may amend the
8agreement under which the employee shall engage in part-time
9employment for an extended period of part-time employment
10determined by the commission to be proportional to the amount
11of full-time employment remaining under the original agreement.
12The bill establishes when the obligation of an employee to
13engage in either full-time employment or part-time employment
14under an agreement shall be considered satisfied.
15The bill provides that, if a loan repayment recipient fails
16to fulfill the obligation to engage in employment in accordance
17with the agreement, the recipient shall be subject to repayment
18to the commission.
19The bill requires the commission to submit a report to the
20general assembly by January 1, annually, detailing certain
21specified information related to the program.
22The bill establishes a nonprofit employer recruitment and
23retention loan repayment program fund in the state treasury as
24a separate fund under the control of the commission. The bill
25appropriates $5 million to the fund for FY 2022-2023.
26The bill defines “eligible loan”, “nonprofit organization”,
27and “part-time”.
-6-jda/jh
2retention loan repayment program within the college student
3aid commission and making appropriations.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 261.133 Nonprofit employer
2recruitment and retention loan repayment program.
31. As used in this section, unless the context otherwise
4requires:
5a. “Eligible loan” means the eligible employee’s total
6federally guaranteed Stafford loan amount under the federal
7family education loan program or the federal direct loan
8program, the eligible employee’s federal grad plus loans,
9or the eligible employee’s federal Perkins loan, including
10principal and interest.
11b. “Nonprofit organization” means an organization organized
12under chapter 504 and qualifying under section 501(c)(3) of the
13Internal Revenue Code as an organization exempt from federal
14income tax under section 501(a) of the Internal Revenue Code
15that satisfies all of the following requirements:
16(1) The organization must operate primarily in this state.
17(2) The organization must serve critical community needs,
18including food insecurity, housing insecurity, youth education,
19senior education, health, or community support.
20c. “Part-time” means at least seventy percent of a forty-
21hour workweek.
222. A nonprofit employer recruitment and retention loan
23repayment program is established to be administered by the
24college student aid commission for purposes of providing
25payments to nonprofit organizations to be used for providing
26loan repayments for eligible loans to certain employees to
27assist in the recruitment and retention of those employees
28who agree to remain full-time employees of the nonprofit
29organization for five years or who agree to remain part-time
30employees of the nonprofit organization for seven years.
313. An employee of a nonprofit organization is eligible
32to apply to enter into a program agreement with the college
33student aid commission and the nonprofit organization for
34loan repayments under this section if all of the following
35requirements are met:
-1- 1a. The employee has academic experience in leadership or
2the management of nonprofit organizations or has attained
3a credential or certification related to leadership or the
4management of nonprofit organizations.
5b. The total annual compensation the nonprofit organization
6pays to the employee is less than or equal to sixty thousand
7dollars.
84. A program agreement shall be entered into among an
9eligible employee, the nonprofit organization, and the college
10student aid commission. Pursuant to the program agreement, to
11receive loan repayments from a nonprofit organization pursuant
12to subsection 6, an eligible employee shall agree to engage in
13either five years of full-time employment with the nonprofit
14organization or seven years of part-time employment with the
15nonprofit organization.
165. The college student aid commission shall give priority to
17residents of Iowa and, if requested by the adjutant general, to
18eligible employees who are members of the Iowa national guard.
196. The amount of loan repayment to a nonprofit organization
20for an eligible employee who enters into an agreement pursuant
21to subsection 4, if the eligible employee is in compliance
22with the obligations under the program agreement, shall be no
23more than five thousand dollars annually for an eligible loan.
24Payments under this section shall be made to the nonprofit
25organization for each year of the employee’s employment during
26a period of five consecutive years of full-time employment or
27seven consecutive years of part-time employment and shall not
28exceed a total of twenty-five thousand dollars. If the total
29amount of an eligible employee’s eligible loan upon application
30is less than twenty-five thousand dollars, the college student
31aid commission shall divide the total amount of the eligible
32employee’s eligible loan by five, if the eligible employee is a
33full-time employee, or by seven, if the eligible employee is
34a part-time employee, to determine the annual amount of loan
35repayment the nonprofit organization is eligible to receive and
-2-1provide to an eligible employee.
27. An employee of a nonprofit organization who entered
3into a program agreement pursuant to subsection 4 may apply
4to the college student aid commission to amend the program
5agreement to allow the employee to switch to part-time
6employment or full-time employment, as applicable. The
7college student aid commission, nonprofit organization, and
8the employee may consent to amend the program agreement under
9which the employee shall engage in part-time employment with
10the nonprofit organization for an extended period of part-time
11employment determined by the college student aid commission to
12be proportional to the amount of full-time employment remaining
13under the original program agreement.
148. The obligation of an employee of a nonprofit organization
15to engage in either full-time employment or part-time
16employment under a program agreement entered into pursuant to
17subsection 4 shall be considered satisfied when any of the
18following conditions are met:
19a. The terms of the program agreement are completed.
20b. The employee dies.
21c. The employee, due to a permanent disability, is unable
22to work either full-time or part-time for the nonprofit
23organization.
249. If an employee fails to fulfill the obligation to engage
25in employment in accordance with the program agreement entered
26into pursuant to subsection 4, the employee shall be subject
27to repayment to the college student aid commission of the loan
28amount plus interest as specified by rule. The college student
29aid commission shall remit all repayments made pursuant to this
30subsection to the nonprofit employer recruitment and retention
31loan repayment program fund established pursuant to subsection
3211.
3310. The college student aid commission shall submit in
34a report to the general assembly by January 1, annually, the
35number of individuals who received loan repayment pursuant
-3-1to this section, the nonprofit organizations that entered
2into program agreements pursuant to subsection 4, where the
3individuals who received loan repayment pursuant to this
4section worked, the amount paid to each nonprofit organization,
5the amount each nonprofit organization paid to each program
6participant, and other information identified by the college
7student aid commission as indicators of outcomes of the
8program.
911. A nonprofit employer recruitment and retention loan
10repayment program fund is created in the state treasury as
11a separate fund under the control of the college student
12aid commission. All moneys deposited or paid into the fund
13are appropriated and made available to the college student
14aid commission to be used for meeting the requirements of
15this section. The college student aid commission shall use
16moneys in the fund to leverage available federal moneys if
17possible. Notwithstanding section 8.33, any balance in the
18fund on June 30 of any fiscal year shall not revert to the
19general fund of the state but shall remain in the fund and be
20continuously available for loan repayment under the program.
21Notwithstanding section 12C.7, subsection 2, interest or
22earnings on moneys deposited in the fund shall be credited to
23the fund.
2412. The college student aid commission shall adopt rules
25pursuant to chapter 17A to administer this section.
26 Sec. 2. COLLEGE STUDENT AID COMMISSION — NONPROFIT
27EMPLOYER RECRUITMENT AND RETENTION LOAN REPAYMENT PROGRAM —
28APPROPRIATION. There is appropriated from the general fund of
29the state to the college student aid commission for the fiscal
30year beginning July 1, 2022, and ending June 30, 2023, the
31following amount, or so much thereof as is necessary, to be
32used for the purposes designated:
33For the nonprofit employer recruitment and retention loan
34repayment program established pursuant to section 261.133:
.................................................. $355,000,000
-4-1EXPLANATION
2The inclusion of this explanation does not constitute agreement with
3the explanation’s substance by the members of the general assembly.
4This bill establishes the nonprofit employer recruitment and
5retention loan repayment program within the college student aid
6commission (commission).
7The bill requires the commission to administer the program
8for purposes of providing payments to nonprofit organizations
9to be used for providing loan repayments to certain employees
10to assist in the recruitment and retention of those employees
11who agree to remain full-time employees of the nonprofit
12organization for five years or who agree to remain part-time
13employees of the nonprofit organization for seven years.
14The bill provides that an employee of a nonprofit
15organization is eligible to apply to enter into a program
16agreement with the commission and the nonprofit organization
17for loan repayments under the program if the employee has
18academic experience in leadership or the management of
19nonprofit organizations or has attained a credential or
20certification related to leadership or the management of
21nonprofit organizations, and if the total annual compensation
22the nonprofit organization pays to the employee is less than or
23equal to $60,000.
24The bill provides that the eligible employee, nonprofit
25organization, and commission shall enter into a program
26agreement for loan repayments. Additionally, the bill provides
27that, in order to receive loan repayments, an eligible employee
28shall agree to engage in either five years of full-time
29employment with the nonprofit organization or seven years of
30part-time employment with the nonprofit organization. The bill
31requires the commission to give priority to residents of Iowa
32and, if requested by the adjutant general, to applicants who
33are members of the Iowa national guard.
34The bill limits the amount of loan repayment to a nonprofit
35organization for an eligible employee who enters into a program
-5-1agreement to no more than $5,000 annually and no more than
2$25,000 total.
3The bill authorizes an employee who entered into a program
4agreement to apply to the commission to amend the agreement to
5allow the employee to switch to part-time employment or full-
6time employment, as applicable. The bill provides that the
7commission, nonprofit organization, and employee may amend the
8agreement under which the employee shall engage in part-time
9employment for an extended period of part-time employment
10determined by the commission to be proportional to the amount
11of full-time employment remaining under the original agreement.
12The bill establishes when the obligation of an employee to
13engage in either full-time employment or part-time employment
14under an agreement shall be considered satisfied.
15The bill provides that, if a loan repayment recipient fails
16to fulfill the obligation to engage in employment in accordance
17with the agreement, the recipient shall be subject to repayment
18to the commission.
19The bill requires the commission to submit a report to the
20general assembly by January 1, annually, detailing certain
21specified information related to the program.
22The bill establishes a nonprofit employer recruitment and
23retention loan repayment program fund in the state treasury as
24a separate fund under the control of the commission. The bill
25appropriates $5 million to the fund for FY 2022-2023.
26The bill defines “eligible loan”, “nonprofit organization”,
27and “part-time”.
-6-jda/jh