S T A T E   O F   N E W   Y O R K
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                                  5827

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 20, 2009
                               ___________

Introduced  by  M.  of A. McKEVITT, THIELE, CONTE, TEDISCO, QUINN, KOLB,
  McDONOUGH, WALKER -- Multi-Sponsored by -- M. of A.  ALFANO,  AMEDORE,
  BACALLES, BALL, BARCLAY, BARRA, BUTLER, CROUCH, ERRIGO, FINCH, GIGLIO,
  HAWLEY, P. LOPEZ, MILLER, MOLINARO, OAKS, O'MARA, RAIA, REILICH, SALA-
  DINO,  SAYWARD,  SCOZZAFAVA, SPANO, TOBACCO, TOWNSEND -- read once and
  referred to the Committee on Education

AN ACT to amend the education law, in relation to establishing a regents
  high-tech graduate loan forgiveness program; and making  an  appropri-
  ation therefor

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Section 605 of the education law is amended by adding a new
subdivision 13 to read as follows:
  13. REGENTS HIGH-TECH GRADUATE  LOAN  FORGIVENESS  PROGRAM.    REGENTS
HIGH-TECH  GRADUATE LOAN FORGIVENESS AWARDS SHALL BE AWARDED ANNUALLY TO
HIGH-TECH GRADUATES WHO AGREE TO WORK OR BE EMPLOYED IN NEW  YORK  STATE
IN  A PROFESSION WHICH REQUIRES A DEGREE IN THE HIGH-TECH FIELD IN WHICH
THE GRADUATE HOLDS A DEGREE.  SUCH AWARDS SHALL BE CLASSIFIED AND  ALLO-
CATED IN ACCORDANCE WITH REGENTS RULES.
  A.  DEFINITIONS.  THE  COMMISSIONER  SHALL  PROMULGATE RULES AND REGU-
LATIONS DEFINING THE TERMS "HIGH-TECH GRADUATE"  AND  "HIGH-TECH  FIELD"
AND ANY OTHER TERMS NECESSARY TO IMPLEMENT THE PROVISIONS OF THIS SUBDI-
VISION.    PROVIDED, THAT THE TERM "HIGH-TECH GRADUATE" SHALL BE LIMITED
TO PERSONS WHO EARNED AN ASSOCIATE'S OR BACHELOR'S DEGREE FROM A COLLEGE
OR UNIVERSITY IN THIS STATE.
  B. ELIGIBILITY. (1) THE APPLICANT MUST BE A RESIDENT OF NEW YORK STATE
AND BE ENGAGED IN A HIGH-TECH PROFESSION.
  (2) THE APPLICANT MUST AGREE TO BE EMPLOYED IN A HIGH-TECH  PROFESSION
IN NEW YORK STATE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08999-01-9

A. 5827                             2
              

  C.  SELECTION.  THE  COMMISSIONER  SHALL  ESTABLISH  CRITERIA  FOR THE
SELECTION OF PARTICIPANTS IN THE PROGRAM. AN APPLICANT MUST  SATISFY  AT
LEAST ONE OF THE CRITERIA ESTABLISHED.
  D.  NOTIFICATION.  (1)  THE  COMMISSIONER  SHALL THEN FORWARD APPROVED
APPLICATIONS TO THE PRESIDENT AND SHALL NOTIFY UNSUCCESSFUL APPLICANTS;
  (2) THE PRESIDENT SHALL VERIFY THE APPROVED APPLICANTS'
  (I) ELIGIBILITY; AND
  (II) TOTAL HIGH-TECH COLLEGE OR UNIVERSITY STUDENT EXPENSE;
  (3) THE PRESIDENT SHALL NOTIFY APPLICANTS OF THEIR AWARD ENTITLEMENT.
  E. SERVICE REQUIREMENT. WITHIN SUCH TIME AS THE COMMISSIONER SHALL  BY
REGULATION  PROVIDE,  A  RECIPIENT  OF  AN AWARD SHALL HAVE AGREED TO BE
EMPLOYED IN A HIGH-TECH PROFESSION FOR A PERIOD  OF  TWELVE  MONTHS  FOR
EACH  ANNUAL  PAYMENT TO BE RECEIVED BY THE RECIPIENT.  IN NO CASE SHALL
THE TOTAL NUMBER OF MONTHS OF HIGH-TECH EMPLOYMENT REQUIRED BE LESS THAN
SIXTY. THE PRESIDENT  SHALL,  IN  CONSULTATION  WITH  THE  COMMISSIONER,
DEVELOP  AND  SECURE  FROM  EACH AWARD RECIPIENT, A WRITTEN AGREEMENT TO
ENGAGE IN A HIGH-TECH EMPLOYMENT.
IF A RECIPIENT FAILS TO COMPLY FULLY WITH SUCH CONDITIONS, THE PRESIDENT
SHALL BE ENTITLED TO RECEIVE FROM SUCH RECIPIENT AN AMOUNT TO BE  DETER-
MINED BY THE FORMULA:
                              A = 5B (T-S)
                                      ---
                                       T
  IN  WHICH  "A" IS THE AMOUNT THE PRESIDENT IS ENTITLED TO RECOVER; "B"
IS THE SUM OF ALL PAYMENTS MADE TO THE RECIPIENT  AND  THE  INTEREST  ON
SUCH AMOUNT WHICH WOULD BE PAYABLE IF AT THE TIMES SUCH AWARDS WERE PAID
THEY  WERE LOANS BEARING INTEREST AT THE MAXIMUM PREVAILING RATE; "T" IS
THE TOTAL NUMBER OF  MONTHS  IN  THE  RECIPIENT'S  PERIOD  OF  OBLIGATED
SERVICES;  AND  "S" IS THE NUMBER OF MONTHS OF SERVICE ACTUALLY RENDERED
BY THE RECIPIENT. ANY AMOUNT WHICH THE PRESIDENT IS ENTITLED TO  RECOVER
UNDER THIS PARAGRAPH SHALL BE PAID WITHIN THE FIVE-YEAR PERIOD BEGINNING
ON THE DATE THAT THE RECIPIENT FAILED TO COMPLY WITH THIS SERVICE CONDI-
TION. NOTHING IN THE WRITTEN AGREEMENT SHALL AFFECT THE TERMS OF EMPLOY-
MENT  OF THE INDIVIDUAL WHO SHALL NEGOTIATE, SEPARATE AND APART FROM THE
PROGRAM, HIS OR HER SALARY AND OTHER FORMS OF EMPLOYMENT WITH AN AGENCY,
INSTITUTION OR A PROGRAM IN WHICH HE OR SHE SHALL BE EMPLOYED.
  ANY OBLIGATION TO COMPLY WITH SUCH  PROVISIONS  AS  OUTLINED  IN  THIS
SECTION  SHALL BE CANCELLED UPON THE DEATH OF THE RECIPIENT. THE COMMIS-
SIONER SHALL MAKE REGULATIONS TO PROVIDE FOR THE WAIVER OR SUSPENSION OF
ANY FINANCIAL OBLIGATION WHICH WOULD INVOLVE EXTREME HARDSHIP.
  F. REPORTING. A RECIPIENT OF AN AWARD SHALL REPORT ANNUALLY TO THE NEW
YORK STATE HIGHER EDUCATION SERVICES CORPORATION, ON FORMS PRESCRIBED BY
THE PRESIDENT, AS TO THE PERFORMANCE OF THE REQUIRED SERVICES,  COMMENC-
ING  WITH THE CALENDAR YEAR IN WHICH THE RECIPIENT BEGINS TO ENGAGE IN A
HIGH-TECH PROFESSION AND  CONTINUING  UNTIL  THE  RECIPIENT  SHALL  HAVE
COMPLETED,  OR IT IS DETERMINED THAT HE OR SHE SHALL NOT BE OBLIGATED TO
COMPLETE, THE REQUIRED EMPLOYMENT.  IF THE RECIPIENT SHALL FAIL TO  FILE
ANY  REPORT  REQUIRED  HEREUNDER WITHIN THIRTY DAYS OF WRITTEN NOTICE TO
THE RECIPIENT, MAILED TO THE ADDRESS SHOWN ON THE LAST  APPLICATION  FOR
AN  AWARD OR LAST REPORT FILED, WHICHEVER IS LATER, THE PRESIDENT OF THE
CORPORATION MAY IMPOSE A FINE OF UP TO ONE THOUSAND DOLLARS. THE  PRESI-
DENT SHALL HAVE THE DISCRETION TO WAIVE THE FILING OF A REPORT, EXCUSE A
DELAY  IN  FILING  OR A FAILURE TO FILE A REPORT, OR WAIVE OR REDUCE ANY
FINE IMPOSED FOR GOOD CAUSE SHOWN.
  G. OTHER AWARDS. AWARD RECIPIENTS SHALL BE ELIGIBLE TO APPLY  FOR  ONE
ADDITIONAL AWARD.

A. 5827                             3

  S  2.  The  education  law is amended by adding a new section 679-f to
read as follows:
  S 679-F.  REGENTS  HIGH-TECH  GRADUATE  LOAN  FORGIVENESS  PROGRAM. 1.
NUMBER AND CERTIFICATION. ONE HUNDRED REGENTS  HIGH-TECH  GRADUATE  LOAN
FORGIVENESS  AWARDS  SHALL  BE  AWARDED  EACH YEAR TO INITIAL RECIPIENTS
THEREOF. SUCH AWARDS SHALL BE ALLOCATED AS PROVIDED IN ARTICLE  THIRTEEN
OF  THIS  CHAPTER  TO  ELIGIBLE  HIGH-TECH GRADUATES AS CERTIFIED TO THE
PRESIDENT BY THE COMMISSIONER.
  2. CALCULATION OF AWARD AMOUNTS. EACH  AWARD  SHALL  CONSIST  OF  FIVE
CONSECUTIVE  ANNUAL  LOAN  FORGIVENESS  PAYMENTS.  EACH  OF  THE  ANNUAL
PAYMENTS SHALL BE FOR AN AMOUNT EQUAL TO THE TOTAL OF HIGH-TECH  COLLEGE
OR UNIVERSITY SCHOOL STUDENT LOAN EXPENSE OR TEN THOUSAND DOLLARS WHICH-
EVER  IS  LESS.  THE  PRESIDENT SHALL BE RESPONSIBLE FOR CALCULATING THE
DOLLAR AMOUNT OF EACH AWARD THAT ELIGIBLE CANDIDATES  MAY  RECEIVE  FROM
THIS  PROGRAM.  FOR  THE  PURPOSES OF THIS SECTION, STUDENT LOAN EXPENSE
SHALL MEAN THE CUMULATIVE TOTAL OF THE ANNUAL STUDENT LOANS COVERING THE
COST OF ATTENDANCE AT A HIGH-TECH COLLEGE OR UNIVERSITY.  INTEREST  PAID
OR  DUE  ON  STUDENT  LOANS  THAT  AN APPLICANT HAS TAKEN OUT FOR USE IN
PAYING FOR SUCH HIGH-TECH EDUCATION SHALL  BE  CONSIDERED  ELIGIBLE  FOR
REIMBURSEMENT UNDER THIS PROGRAM.
  3.  AWARD  DISBURSEMENT.  A.  ANNUAL  AWARD DISBURSEMENTS SHALL BE THE
RESPONSIBILITY OF THE PRESIDENT AND SHALL OCCUR PRIOR TO  THE  BEGINNING
OF  EACH  OF  THE  REQUIRED TERMS OF SERVICE AS SPECIFIED IN THE SERVICE
CONTRACT. THE BOARD OF TRUSTEES OF THE HIGHER EDUCATION SERVICES  CORPO-
RATION  SHALL  ADOPT RULES AND REGULATIONS REGARDING CRITERIA FOR DETER-
MINING SUCCESSFUL COMPLETION OF THE EMPLOYMENT CONTRACT AND  ANY  APPEAL
PROCESS  THAT MAY BE REQUIRED TO IMPLEMENT THIS PARAGRAPH UPON RECOMMEN-
DATION OF THE PRESIDENT IN CONSULTATION WITH THE COMMISSIONER.
  B. THE DISBURSEMENT OF THE SECOND AND SUBSEQUENT ANNUAL  AWARDS  SHALL
BE  DEPENDENT UPON SUCCESSFUL COMPLETION OF THE PREVIOUS YEAR'S REQUIRE-
MENT OF THE EMPLOYMENT CONTRACT AS DEFINED BY THE PRESIDENT, AS WELL  AS
OTHER CRITERIA SET FORTH IN THIS SECTION.
  S  3. The sum of twenty-five million dollars ($25,000,000), or so much
thereof as may be necessary, is hereby  appropriated  to  the  education
department  out  of any moneys in the state treasury in the general fund
to the credit of the state purposes account, not otherwise appropriated,
and made immediately available for  the  purposes  of  implementing  the
regents  high-tech  graduate loan forgiveness program, as established by
this act. Such moneys shall be payable on the audit and warrant  of  the
comptroller  on  vouchers  certified  or approved by the commissioner of
education in the manner prescribed by law.
  S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law. Effective immediately, any rules  and  regu-
lations  necessary to implement the provisions of this act on its effec-
tive date are authorized and directed to be completed on or before  such
date.