S T A T E O F N E W Y O R K
________________________________________________________________________
4484
2015-2016 Regular Sessions
I N A S S E M B L Y
February 2, 2015
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Introduced by M. of A. McKEVITT, LUPINACCI, GRAF, KOLB -- Multi-Spon-
sored by -- M. of A. McLAUGHLIN -- read once and referred to the
Committee on Higher 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.
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;
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08360-01-5
A. 4484 2
(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.
S 2. The education law is amended by adding a new section 679-g to
read as follows:
S 679-G. 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
A. 4484 3
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, the addition, amend-
ment and/or repeal of any rules and regulations necessary to implement
this act on its effective date is authorized to be made on or before
such date.