NY State Senate Bill S8389A

Archive: Last Bill Status - Signed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed by Governor

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Actions

view actions (17)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 15, 2022	signed chap.562
Sep 14, 2022	delivered to governor
May 31, 2022	returned to senate passed assembly ordered to third reading rules cal.349 substituted for a9523b referred to ways and means delivered to assembly passed senate
May 23, 2022	amended on third reading 8389c
May 16, 2022	advanced to third reading amended (t) 8389b
May 11, 2022	2nd report cal.
May 10, 2022	1st report cal.1289
Mar 09, 2022	print number 8389a
Mar 09, 2022	amend (t) and recommit to labor
Feb 22, 2022	referred to labor

Votes

Bill Amendments

Original

C (Active)

Original

C (Active)

S8389 - Details

Law Section:: Labor Law
Laws Affected:: Add Art 34 §§1000 - 1002, Lab L; amd §612, Tax L

S8389 - Summary

Relates to certification of public employment for purposes of the federal public service loan forgiveness program; requires public employers to provide certain notices and program forms; provides that an average of 30 hours per week shall be considered full-time for purposes of certifying public employment under the federal program.

S8389 - Sponsor Memo

 
BILL NUMBER: S8389

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the labor law, in relation to certification of employ-
ment with public service employers for purposes of the federal public
service loan forgiveness program

 
PURPOSE:

This legislation clarifies what it means for full-time employment for
the purposes of the public service loan forgiveness (PSLF) program.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends the labor law by adding a new article 34
titled "certification of public service employment."

Section 1000 provides definitions for "certifying employment," "employ-
ee," "full-time," "public service employer," "public service loan
forgiveness form," and "Public service loan forgiveness program."

Section 1001 stipulates the hours worked for full-time employment for
the purposes of the public service loan forgiveness program.

Section 1002 allows public service employers to certify employment for
individuals or groups of employees with the U.S. Department of Education
directly. A public service employer who chooses not to directly certify
with the U.S. Department of Education must annually provide notice of
renewal and a copy of the Public Service Loan Forgiveness Form, with
employer information already completed, to employees who request the
form, employees who previously certified employment, and employees
ending their employment with the public service employer.

Section 1003 declares that debt cancellation through the public service
loan forgiveness program shall not be subject to taxation or required to
be reported on individual income tax returns.

Section 2 states the effective date.

 
JUSTIFICATION:

Public Service Loan Forgiveness (PSLF) is a federal program that rewards
and incentivizes public service work by cancelling a portion of borrow-
ers' federal student loans. The program requires borrowers to be full-
time employees of an eligible public service employer and make 120 qual-
ifying payments towards their student loan, after which the remainder of
their federal student loan debt is forgiven.

This bill addresses several well-documented barriers to entry to PSLF,
ranging from inconsistent program term definitions to confusion about
program eligibility. To combat these issues, this legislation provides
several definitions to clarify the confusion associated with this
requirement and would enact changes at the state level to leverage
participation by New Yorkers in this federal student loan debt forgive-
ness program.


Under federal rules for the program, full-time means the greater of 30
hours or the employer's definition of full-time. As a result, there is
no uniformity for what makes an employee full-time across different
eligible public service employers, including government organizations
and 501(c)(3) organizations. The U.S. Department of Education has recog-
nized this inconsistency across public service employers and has
proposed changing the program rules to a flat 30 hours per week standard
for all borrowers.

However, federal rulemaking is a slow process and any delay in a change
to this standard will continue to bar otherwise eligible public service
workers from this loan forgiveness program.  Critically, the regulations
already permit already permit employers to adopt a 30 hour per week
standard but does not require it. This bill would, for the purpose of
accessing PSLF only, require employers to use a 30 hour per week stand-
ard when certifying employees work with the U.S. Department of Educa-
tion. This bill does not impose a different standard for "full time"
employment for any other aspect of employer and employee relations.

Also, in recognition of the fact that non-tenure teachers and educators
across the state work many hours in excess of their contracted hours in
order to prepare for class, grade student work, and meet with students,
the bill requires employers to multiply the number of in-class hours of
employment by a multiple of 3.35, for the purpose of PSLF only. Without
this provision, educators in New York who practically work more hours
than their contracts reflect are unable to claim those additional work
hours toward PSLF eligibility.  These excess hours may move an educator
past the 30-hour threshold required for PSLF. Educators across the coun-
try and several states, including California and Oregon, have already
passed legislation similar to this bill that use the 3.35 multiplier to
ensure educators receive the credit they are due. As with the "full
time" standard, the multiplying of credit hours is limited to PSLF
employment certification only, and has no bearing on other employer and
employee relations.

Finally, PSLF currently requires borrowers to submit paperwork to certi-
fy their qualifying employment to the U.S. Department of Education.
However, in 2021, the Department announced that it would begin to auto-
mate the certification and forgiveness process for federal public
service workers and welcomes the opportunity to do the same for other
public services workers by partnering with other government and non-pro-
fit employers. To facilitate this process, this bill would clarify that
employers are permitted to share with the U.S. Department of Education
the employment data necessary to certify PSLF eligibility. It would also
clarify employers' important role in the PSLF program.

Each of these steps, once enacted, will help more New Yorkers access the
PSLF program. If passed in 2022, the bill would also help New Yorkers
take advantage of the time-limited opportunity announced by the U.S.
Department of Education to receive credit for PSLF loan forgiveness for
periods of repayment that were previously ineligible. This opportunity
ends after October 2022.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:
None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the superintendent
of financial services shall be required to develop and make available
materials required pursuant to subdivision 1 of section three of this
act no later than 60 days after such effective date; public service
employers shall be required to comply with subdivisions 2 and 3 of
section three of this act no later than 120 days after such effective
date; and public service employers shall be required to comply with
paragraph b of subdivision 2 of section four of this act no later than
January 1, 2023.

S8389 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8389
 
                             I N  S E N A T E
 
                             February 22, 2022
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Labor
 
 AN ACT to amend the labor law, in relation to certification  of  employ-
   ment  with public service employers for purposes of the federal public
   service loan forgiveness program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The labor law is amended by adding a new article 34 to read
 as follows:
                                 ARTICLE 34
                CERTIFICATION OF PUBLIC SERVICE EMPLOYMENT
 SECTION 1000. DEFINITIONS.
         1001. HOURS WORKED AND FULL-TIME EMPLOYMENT.
         1002. CERTIFYING EMPLOYMENT.
         1003. TAX  CONSEQUENCES  OF  CANCELLATION.
   § 1000. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   1.  "CERTIFYING  EMPLOYMENT"  MEANS  EITHER  COMPLETING  THE  EMPLOYER
 SECTIONS OF THE PUBLIC SERVICE LOAN FORGIVENESS  FORM  OR  SHARING  DATA
 DIRECTLY  WITH THE U.S.  DEPARTMENT OF EDUCATION THAT CORRESPONDS TO THE
 INFORMATION REQUIRED FOR THE PUBLIC SERVICE LOAN FORGIVENESS FORM.
   2. "EMPLOYEE" MEANS SOMEONE WHO WORKS FOR A PUBLIC  SERVICE  EMPLOYER,
 REGARDLESS OF WHETHER THE PUBLIC SERVICE EMPLOYER CONSIDERS THAT WORK TO
 BE FULL-TIME OR PART-TIME, CONTINGENT, OR CONTRACTED.
   3.  "FULL-TIME"  FOR  THE  PURPOSE OF CERTIFYING EMPLOYMENT ONLY MEANS
 WORKING AT LEAST THIRTY HOURS PER WEEK OR AT LEAST THIRTY HOURS PER WEEK
 THROUGHOUT A CONTRACTUAL OR EMPLOYMENT PERIOD OF AT LEAST  EIGHT  MONTHS
 IN A TWELVE-MONTH PERIOD, SUCH AS ELEMENTARY AND SECONDARY SCHOOL TEACH-
 ERS.
   4.  "PUBLIC  SERVICE  EMPLOYER" MEANS ANY STATE, COUNTY, CITY OR OTHER
 LOCAL GOVERNMENT EMPLOYER, INCLUDING ANY OFFICE, DEPARTMENT, INDEPENDENT
 AGENCY, SCHOOL DISTRICT, PUBLIC COLLEGE  OR  UNIVERSITY  SYSTEM,  PUBLIC
 LIBRARY  SYSTEM, AUTHORITY, OR OTHER BODY, INCLUDING THE LEGISLATURE AND
 THE JUDICIARY. THIS TERM SHALL ALSO MEAN ANY EMPLOYER THAT HAS  RECEIVED
 DESIGNATION  AS  A TAX-EXEMPT ORGANIZATION PURSUANT TO SECTION 501(C)(3)
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14644-02-2
 S. 8389                             2
 
 OF THE U.S. INTERNAL REVENUE CODE. THIS TERM DOES NOT INCLUDE A  FEDERAL
 OR TRIBAL NATION GOVERNMENT ORGANIZATION, AGENCY, OR ENTITY.
   5.  "PUBLIC  SERVICE LOAN FORGIVENESS FORM" MEANS THE FORM USED BY THE
 U.S. DEPARTMENT OF EDUCATION TO CERTIFY AN INDIVIDUAL'S EMPLOYMENT AT  A
 PUBLIC  SERVICE  ORGANIZATION AND DETERMINE ELIGIBILITY FOR THE PURPOSES
 OF THE PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.
   6. "PUBLIC SERVICE LOAN FORGIVENESS PROGRAM" MEANS  THE  FEDERAL  LOAN
 FORGIVENESS  PROGRAM  ESTABLISHED  PURSUANT  TO  20  U.S.C. 1087E(M) AND
 ADMINISTERED PURSUANT TO 34 C.F.R 685.219, AS OF THE EFFECTIVE  DATE  OF
 THIS ARTICLE.
   §  1001.  HOURS  WORKED  AND FULL-TIME EMPLOYMENT. THE FOLLOWING SHALL
 APPLY FOR THE PURPOSES OF CERTIFYING EMPLOYMENT FOR THE PURPOSES OF  THE
 PUBLIC  SERVICE  LOAN  FORGIVENESS  PROGRAM ONLY AND SHALL HAVE NO OTHER
 APPLICABILITY FOR PUBLIC SERVICE EMPLOYERS AND THEIR EMPLOYEES.
   1. FOR FACULTY OR TEACHER EMPLOYEES, A PUBLIC SERVICE  EMPLOYER  SHALL
 CREDIT  3.35  HOURS  WORKED  FOR EACH HOUR OF LECTURE OR CLASSROOM TIME.
 THIS SUBDIVISION DOES NOT SUPERSEDE ANY GREATER ADJUSTMENT FACTOR ESTAB-
 LISHED BY A COLLECTIVE BARGAINING AGREEMENT OR EMPLOYER POLICY IN RECOG-
 NITION OF ADDITIONAL WORK ASSOCIATED WITH LECTURE OR CLASSROOM TIME  FOR
 THE PURPOSE OF THE PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.
   2.  WHEN DETERMINING WHETHER AN EMPLOYEE IS CONSIDERED "FULL-TIME," AS
 THAT TERM IS DEFINED IN THIS ARTICLE,  FOR  THE  PURPOSE  OF  CERTIFYING
 EMPLOYMENT  FOR  THE  PUBLIC  SERVICE  LOAN  FORGIVENESS PROGRAM ONLY, A
 PUBLIC SERVICE EMPLOYER SHALL NOT TREAT ANY ADJUSTED TOTAL HOURS  WORKED
 PURSUANT  TO  SUBDIVISION  ONE  OF  THIS  SECTION DIFFERENTLY FROM HOURS
 WORKED WITHOUT AN ADJUSTMENT FACTOR.
   3. FOR THE PURPOSE OF CERTIFYING EMPLOYMENT  ONLY,  A  PUBLIC  SERVICE
 EMPLOYER  SHALL  CONSIDER  AS "FULL-TIME" ANY EMPLOYEE WHO SATISFIES THE
 DEFINITION OF "FULL-TIME" PROVIDED IN THIS ARTICLE.
   § 1002. CERTIFYING EMPLOYMENT. 1. SHOULD THE U.S. DEPARTMENT OF EDUCA-
 TION PERMIT PUBLIC SERVICE EMPLOYERS TO CERTIFY EMPLOYMENT FOR  PAST  OR
 PRESENT  INDIVIDUAL  EMPLOYEES  OR GROUPS OF EMPLOYEES DIRECTLY WITH THE
 U.S. DEPARTMENT  OF  EDUCATION  OR  ITS  AGENTS,  NOTWITHSTANDING  OTHER
 PROVISIONS  OF LAW, A PUBLIC SERVICE EMPLOYER SHALL BE PERMITTED TO SEND
 TO THE U.S.   DEPARTMENT OF EDUCATION  OR  ITS  AGENTS  THE  INFORMATION
 NECESSARY FOR EMPLOYMENT CERTIFICATION.
   2.  IF  A PUBLIC SERVICE EMPLOYER DOES NOT DIRECTLY CERTIFY EMPLOYMENT
 WITH THE U.S. DEPARTMENT OF EDUCATION PURSUANT  TO  SUBDIVISION  ONE  OF
 THIS  SECTION, THE PUBLIC SERVICE EMPLOYER SHALL ANNUALLY PROVIDE NOTICE
 OF RENEWAL AND A COPY OF THE PUBLIC SERVICE LOAN FORGIVENESS  FORM  WITH
 THE  EMPLOYER  INFORMATION  AND EMPLOYMENT CERTIFICATION SECTIONS OF THE
 FORM ALREADY COMPLETED TO:
   A. AN EMPLOYEE WHO REQUESTS A PUBLIC SERVICE LOAN FORGIVENESS FORM;
   B. ANY CURRENT EMPLOYEE FOR  WHOM  THE  PUBLIC  SERVICE  EMPLOYER  HAS
 PREVIOUSLY CERTIFIED EMPLOYMENT; AND
   C.  AN  EMPLOYEE WHO IS ENDING HIS OR HER WORK WITH THE PUBLIC SERVICE
 EMPLOYER.
   THE PARTIALLY COMPLETED FORM SHOULD REFLECT EMPLOYMENT FOR  THE  PRIOR
 CALENDAR  YEAR,  AND MAY REFLECT LONGER PERIODS OF EMPLOYMENT, AS NECES-
 SARY.
   3. A PUBLIC SERVICE EMPLOYER SHALL NOT UNREASONABLY DELAY IN  CERTIFY-
 ING EMPLOYMENT.
   4.  NOTHING  IN  THIS  SECTION SHALL PREVENT A PUBLIC SERVICE EMPLOYER
 FROM SEEKING PERMISSION FROM ITS EMPLOYEES  PRIOR  TO  CERTIFYING  THEIR
 EMPLOYMENT.
 S. 8389                             3
 
   §  1003.  TAX  CONSEQUENCES OF CANCELLATION. NOTWITHSTANDING ANY OTHER
 PROVISION OF LAW, DEBT CANCELLATION  THROUGH  THE  PUBLIC  SERVICE  LOAN
 FORGIVENESS  PROGRAM  SHALL  NOT BE SUBJECT TO TAXATION AND SHALL NOT BE
 REQUIRED TO BE REPORTED ON INDIVIDUAL INCOME TAX RETURNS.
   § 2. This act shall take effect immediately; provided that:
   a. public service employers shall be required to comply with paragraph
 a of subdivision 2 of section 1002 of the labor law as added by this act
 no later than sixty days after such effective date; and
   b. public service employers shall be required to comply with paragraph
 b of subdivision 2 of section 1002 of the labor law as added by this act
 no later than January 1, 2023.

Co-Sponsors

S8389A - Details

Law Section:: Labor Law
Laws Affected:: Add Art 34 §§1000 - 1002, Lab L; amd §612, Tax L

S8389A - Summary

S8389A - Sponsor Memo

 
BILL NUMBER: S8389A

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the labor law, in relation to certification of employ-
ment with public service employers for purposes of the federal public
service loan forgiveness program; and to amend the tax law, in relation
to excluding from gross income certain student loan forgiveness awards

 
PURPOSE:

This legislation clarifies what it means for full-time employment for
the purposes of the public service loan forgiveness (PSLF) program.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends the labor law by adding a new article 34
titled "certification of public service employment."

Section 1000 provides definitions for "certifying employment," "employ-
ee," "full-time," "public service employer," "public service loan

forgiveness form," and "Public service loan forgiveness program."

Section 1001 stipulates the hours worked for full-time employment for
the purposes of the public service loan forgiveness program.

Section 1002 allows public service employers to certify employment for
individuals or groups of employees with the U.S. Department of Education
directly. A public service employer who chooses not to directly certify
with the U.S. Department of Education must annually provide notice of
renewal and a copy of the Public Service Loan Forgiveness Form, with
employer information already completed, to employees who request the
form, employees who previously certified employment, and employees
ending their employment with the public service employer.

Section 2 of the bill amends the tax law to state that debt forgiveness,
cancellation, or discharge through the federal Higher Education Act of
1965 shall not be subject to taxation or required to be reported on
individual income tax returns.

Section 3 states the effective date.

 
JUSTIFICATION:

Public Service Loan Forgiveness (PSLF) is a federal program that rewards
and incentivizes public service work by cancelling a portion of borrow-
ers' federal student loans. The program requires borrowers to be full-
time employees of an eligible public service employer and make 120 qual-
ifying payments towards their student loan, after which the remainder of
their federal student loan debt is forgiven.

This bill addresses several well-documented barriers to entry to PSLF,
ranging from inconsistent program term definitions to confusion about
program eligibility. To combat these issues, this legislation provides
several definitions to clarify the confusion associated with this
requirement and would enact changes at the state level to leverage
participation by New Yorkers in this federal student loan debt forgive-
ness program.
Under federal rules for the program, full-time means the greater of 30
hours or the employer's definition of full-time. As a result, there is
no uniformity for what makes an employee full-time across different
eligible public service employers, including government organizations
and 501(c)(3) organizations. The U.S. Department of Education has recog-
nized this inconsistency across public service employers and has
proposed changing the program rules to a flat 30 hours per week standard
for all borrowers.

However, federal rulemaking is a slow process and any delay in a change
to this standard will continue to bar otherwise eligible public service
workers from this loan forgiveness program.  Critically, the regulations
already permit already permit employers to adopt a 30 hour per week
standard but does not require it. This bill would, for the purpose of
accessing PSLF only, require employers to use a 30 hour per week stand-
ard when certifying employees work with the U.S. Department of Educa-
tion. This bill does not impose a different standard for "full time"
employment for any other aspect of employer and employee relations.

Also, in recognition of the fact that non-tenure teachers and educators
across the state work many hours in excess of their contracted hours in
order to prepare for class, grade student work, and meet with students,
the bill requires employers to multiply the number of in-class hours of
employment by a multiple of 3.35, for the purpose of PSLF only. Without
this provision, educators in New York who practically work more hours
than their contracts reflect are unable to claim those additional work
hours toward PSLF eligibility.  These excess hours may move an educator
past the 30-hour threshold required for PSLF. Educators across the coun-
try and several states, including California and Oregon, have already
passed legislation similar to this bill that use the 3.35 multiplier to
ensure educators receive the credit they are due. As with the "full
time" standard, the multiplying of credit hours is limited to PSLF
employment certification only, and has no bearing on other employer and
employee relations.

Finally, PSLF currently requires borrowers to submit paperwork to certi-
fy their qualifying employment to the U.S. Department of Education.
However, in 2021, the Department announced that it would begin to auto-
mate the certification and forgiveness process for federal public
service workers and welcomes the opportunity to do the same for other
public services workers by partnering with other government and non-pro-
fit employers. To facilitate this process, this bill would clarify that
employers are permitted to share with the U.S. Department of Education
the employment data necessary to certify PSLF eligibility. It would also
clarify employers' important role in the PSLF program.

Each of these steps, once enacted, will help more New Yorkers access the
PSLF program. If passed in 2022, the bill would also help New Yorkers
take advantage of the time-limited opportunity announced by the U.S.
Department of Education to receive credit for PSLF loan forgiveness for
periods of repayment that were previously ineligible. This opportunity
ends after October 2022.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:
None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the superintendent
of financial services shall be required to develop and make available
materials required pursuant to subdivision 1 of section three of this
act no later than 60 days after such effective date; public service
employers shall be required to comply with subdivisions 2 and 3 of
section three of this act no later than 120 days after such effective
date; and public service employers shall be required to comply with
paragraph b of subdivision 2 of section four of this act no later than
January 1, 2023.

S8389A - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8389--A
 
                             I N  S E N A T E
 
                             February 22, 2022
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Labor  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  to amend the labor law, in relation to certification of employ-
   ment with public service employers for purposes of the federal  public
   service  loan  forgiveness  program;  and  to  amend  the  tax law, in
   relation to excluding from gross income certain student loan  forgive-
   ness awards
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The labor law is amended by adding a new article 34 to read
 as follows:
                                ARTICLE 34
                CERTIFICATION OF PUBLIC SERVICE EMPLOYMENT
 SECTION 1000. DEFINITIONS.
         1001. HOURS WORKED AND FULL-TIME EMPLOYMENT.
         1002. CERTIFYING EMPLOYMENT.
   § 1000. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   1.  "CERTIFYING  EMPLOYMENT"  MEANS  EITHER  COMPLETING  THE  EMPLOYER
 SECTIONS  OF  THE  PUBLIC  SERVICE LOAN FORGIVENESS FORM OR SHARING DATA
 DIRECTLY WITH THE U.S.  DEPARTMENT OF EDUCATION THAT CORRESPONDS TO  THE
 INFORMATION REQUIRED FOR THE PUBLIC SERVICE LOAN FORGIVENESS FORM.
   2.  "EMPLOYEE"  MEANS SOMEONE WHO WORKS FOR A PUBLIC SERVICE EMPLOYER,
 REGARDLESS OF WHETHER THE PUBLIC SERVICE EMPLOYER CONSIDERS THAT WORK TO
 BE FULL-TIME OR PART-TIME, CONTINGENT, OR CONTRACTED.
   3. "FULL-TIME" FOR THE PURPOSE OF  CERTIFYING  EMPLOYMENT  ONLY  MEANS
 WORKING AT LEAST THIRTY HOURS PER WEEK OR AT LEAST THIRTY HOURS PER WEEK
 THROUGHOUT  A  CONTRACTUAL OR EMPLOYMENT PERIOD OF AT LEAST EIGHT MONTHS
 IN A TWELVE-MONTH PERIOD, SUCH AS ELEMENTARY AND SECONDARY SCHOOL TEACH-
 ERS.
   4. "PUBLIC SERVICE EMPLOYER" MEANS ANY STATE, COUNTY,  CITY  OR  OTHER
 LOCAL GOVERNMENT EMPLOYER, INCLUDING ANY OFFICE, DEPARTMENT, INDEPENDENT
 AGENCY,  SCHOOL  DISTRICT,  PUBLIC  COLLEGE OR UNIVERSITY SYSTEM, PUBLIC
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14644-03-2
 S. 8389--A                          2
 
 LIBRARY SYSTEM, AUTHORITY, OR OTHER BODY, INCLUDING THE LEGISLATURE  AND
 THE  JUDICIARY. THIS TERM SHALL ALSO MEAN ANY EMPLOYER THAT HAS RECEIVED
 DESIGNATION AS A TAX-EXEMPT ORGANIZATION PURSUANT TO  SECTION  501(C)(3)
 OF  THE U.S. INTERNAL REVENUE CODE. THIS TERM DOES NOT INCLUDE A FEDERAL
 OR TRIBAL NATION GOVERNMENT ORGANIZATION, AGENCY, OR ENTITY.
   5. "PUBLIC SERVICE LOAN FORGIVENESS FORM" MEANS THE FORM USED  BY  THE
 U.S.  DEPARTMENT OF EDUCATION TO CERTIFY AN INDIVIDUAL'S EMPLOYMENT AT A
 PUBLIC SERVICE ORGANIZATION AND DETERMINE ELIGIBILITY FOR  THE  PURPOSES
 OF THE PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.
   6.  "PUBLIC  SERVICE  LOAN FORGIVENESS PROGRAM" MEANS THE FEDERAL LOAN
 FORGIVENESS PROGRAM ESTABLISHED  PURSUANT  TO  20  U.S.C.  1087E(M)  AND
 ADMINISTERED  PURSUANT  TO 34 C.F.R 685.219, AS OF THE EFFECTIVE DATE OF
 THIS ARTICLE.
   § 1001. HOURS WORKED AND FULL-TIME  EMPLOYMENT.  THE  FOLLOWING  SHALL
 APPLY  FOR THE PURPOSES OF CERTIFYING EMPLOYMENT FOR THE PURPOSES OF THE
 PUBLIC SERVICE LOAN FORGIVENESS PROGRAM ONLY AND  SHALL  HAVE  NO  OTHER
 APPLICABILITY FOR PUBLIC SERVICE EMPLOYERS AND THEIR EMPLOYEES.
   1.  FOR  FACULTY OR TEACHER EMPLOYEES, A PUBLIC SERVICE EMPLOYER SHALL
 CREDIT 3.35 HOURS WORKED FOR EACH HOUR OF  LECTURE  OR  CLASSROOM  TIME.
 THIS SUBDIVISION DOES NOT SUPERSEDE ANY GREATER ADJUSTMENT FACTOR ESTAB-
 LISHED BY A COLLECTIVE BARGAINING AGREEMENT OR EMPLOYER POLICY IN RECOG-
 NITION  OF ADDITIONAL WORK ASSOCIATED WITH LECTURE OR CLASSROOM TIME FOR
 THE PURPOSE OF THE PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.
   2. WHEN DETERMINING WHETHER AN EMPLOYEE IS CONSIDERED "FULL-TIME,"  AS
 THAT  TERM  IS  DEFINED  IN  THIS ARTICLE, FOR THE PURPOSE OF CERTIFYING
 EMPLOYMENT FOR THE PUBLIC  SERVICE  LOAN  FORGIVENESS  PROGRAM  ONLY,  A
 PUBLIC  SERVICE EMPLOYER SHALL NOT TREAT ANY ADJUSTED TOTAL HOURS WORKED
 PURSUANT TO SUBDIVISION ONE  OF  THIS  SECTION  DIFFERENTLY  FROM  HOURS
 WORKED WITHOUT AN ADJUSTMENT FACTOR.
   3.  FOR  THE  PURPOSE  OF CERTIFYING EMPLOYMENT ONLY, A PUBLIC SERVICE
 EMPLOYER SHALL CONSIDER AS "FULL-TIME" ANY EMPLOYEE  WHO  SATISFIES  THE
 DEFINITION OF "FULL-TIME" PROVIDED IN THIS ARTICLE.
   § 1002. CERTIFYING EMPLOYMENT. 1. SHOULD THE U.S. DEPARTMENT OF EDUCA-
 TION  PERMIT  PUBLIC SERVICE EMPLOYERS TO CERTIFY EMPLOYMENT FOR PAST OR
 PRESENT INDIVIDUAL EMPLOYEES OR GROUPS OF EMPLOYEES  DIRECTLY  WITH  THE
 U.S.  DEPARTMENT  OF  EDUCATION  OR  ITS  AGENTS,  NOTWITHSTANDING OTHER
 PROVISIONS OF LAW, A PUBLIC SERVICE EMPLOYER SHALL BE PERMITTED TO  SEND
 TO  THE  U.S.    DEPARTMENT  OF  EDUCATION OR ITS AGENTS THE INFORMATION
 NECESSARY FOR EMPLOYMENT CERTIFICATION.
   2. IF A PUBLIC SERVICE EMPLOYER DOES NOT DIRECTLY  CERTIFY  EMPLOYMENT
 WITH  THE  U.S.  DEPARTMENT  OF EDUCATION PURSUANT TO SUBDIVISION ONE OF
 THIS SECTION, THE PUBLIC SERVICE EMPLOYER SHALL ANNUALLY PROVIDE  NOTICE
 OF  RENEWAL  AND A COPY OF THE PUBLIC SERVICE LOAN FORGIVENESS FORM WITH
 THE EMPLOYER INFORMATION AND EMPLOYMENT CERTIFICATION  SECTIONS  OF  THE
 FORM ALREADY COMPLETED TO:
   A. AN EMPLOYEE WHO REQUESTS A PUBLIC SERVICE LOAN FORGIVENESS FORM;
   B.  ANY  CURRENT  EMPLOYEE  FOR  WHOM  THE PUBLIC SERVICE EMPLOYER HAS
 PREVIOUSLY CERTIFIED EMPLOYMENT; AND
   C. AN EMPLOYEE WHO IS ENDING HIS OR HER WORK WITH THE  PUBLIC  SERVICE
 EMPLOYER.
   THE  PARTIALLY  COMPLETED FORM SHOULD REFLECT EMPLOYMENT FOR THE PRIOR
 CALENDAR YEAR, AND MAY REFLECT LONGER PERIODS OF EMPLOYMENT,  AS  NECES-
 SARY.
   3.  A PUBLIC SERVICE EMPLOYER SHALL NOT UNREASONABLY DELAY IN CERTIFY-
 ING EMPLOYMENT.
 S. 8389--A                          3
 
   4. NOTHING IN THIS SECTION SHALL PREVENT  A  PUBLIC  SERVICE  EMPLOYER
 FROM  SEEKING  PERMISSION  FROM  ITS EMPLOYEES PRIOR TO CERTIFYING THEIR
 EMPLOYMENT.
   § 2. Subsection (c) of section 612 of the tax law is amended by adding
 a new paragraph 46 to read as follows:
   (46) THE AMOUNT OF ANY STUDENT LOAN FORGIVENESS AWARD MADE PURSUANT TO
 THE FEDERAL HIGHER EDUCATION ACT OF 1965.
   § 3. This act shall take effect immediately; provided that:
   a. public service employers shall be required to comply with paragraph
 a of subdivision 2 of section 1002 of the labor law as added by this act
 no later than sixty days after such effective date; and
   b. public service employers shall be required to comply with paragraph
 b of subdivision 2 of section 1002 of the labor law as added by this act
 no later than January 1, 2023.

Co-Sponsors

S8389B - Details

Law Section:: Labor Law
Laws Affected:: Add Art 34 §§1000 - 1002, Lab L; amd §612, Tax L

S8389B - Summary

S8389B - Sponsor Memo

 
BILL NUMBER: S8389B

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the labor law, in relation to certification of employ-
ment with public service employers for purposes of the federal public
service loan forgiveness program

 
PURPOSE:

This legislation clarifies what it means for full-time employment for
the purposes of the public service loan forgiveness (PSLF) program.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends the labor law by adding a new article 34
titled "certification of public service employment."

Section 1000 provides definitions for "certifying employment," "employ-
ee," "full-time," "public service employer," "public service loan
forgiveness form," and "Public service loan forgiveness program."

Section 1001 stipulates the hours worked for full-time employment for
the purposes of the public service loan forgiveness program.

Section 1002 allows public service employers to certify employment for
individuals or groups of employees with the U.S. Department of Education
directly. A public service employer who chooses not to directly certify
with the U.S. Department of Education must annually provide notice of
renewal and a copy of the Public Service Loan Forgiveness Form, with
employer information already completed, to employees who request the
form, employees who previously certified employment, and employees
ending their employment with the public service employer.

Section 2 states the effective date.

 
JUSTIFICATION:

Public Service Loan Forgiveness (PSLF) is a federal program that rewards
and incentivizes public service work by cancelling a portion of borrow-
ers' federal student loans. The program requires borrowers to be full-
time employees of an eligible public service employer and make 120 qual-
ifying payments towards their student loan, after which the remainder of
their federal student loan debt is forgiven.

This bill addresses several well-documented barriers to entry to PSLF,
ranging from inconsistent program term definitions to confusion about
program eligibility. To combat these issues, this legislation provides
several definitions to clarify the confusion associated with this
requirement and would enact changes at the state level to leverage
participation by New Yorkers in this federal student loan debt forgive-
ness program.

Under federal rules for the program, full-time means the greater of 30
hours or the employer's definition of full-time. As a result, there is
no uniformity for what makes an employee full-time across different
eligible public service employers, including government organizations
and 501(c)(3) organizations. The U.S. Department of Education has recog-
nized this inconsistency across public service employers and has
proposed changing the program rules to a flat 30 hours per week standard
for all borrowers.

However, federal rulemaking is a slow process and any delay in a change
to this standard will continue to bar otherwise eligible public service
workers from this loan forgiveness program.  Critically, the regulations
already permit already permit employers to adopt a 30 hour per week
standard but does not require it. This bill would, for the purpose of
accessing PSLF only, require employers to use a 30 hour per week stand-
ard when certifying employees work with the U.S. Department of Educa-
tion. This bill does not impose a different standard for "full time"
employment for any other aspect of employer and employee relations.

Also, in recognition of the fact that non-tenure teachers and educators
across the state work many hours in excess of their contracted hours in
order to prepare for class, grade student work, and meet with students,
the bill requires employers to multiply the number of in-class hours of
employment by a multiple of 3.35, for the purpose of PSLF only. Without
this provision, educators in New York who practically work more hours
than their contracts reflect are unable to claim those additional work
hours toward PSLF eligibility.  These excess hours may move an educator
past the 30-hour threshold required for PSLF. Educators across the coun-
try and several states, including California and Oregon, have already
passed legislation similar to this bill that use the 3.35 multiplier to
ensure educators receive the credit they are due. As with the "full
time" standard, the multiplying of credit hours is limited to PSLF
employment certification only, and has no bearing on other employer and
employee relations.

Finally, PSLF currently requires borrowers to submit paperwork to certi-
fy their qualifying employment to the U.S. Department of Education.
However, in 2021, the Department announced that it would begin to auto-
mate the certification and forgiveness process for federal public
service workers and welcomes the opportunity to do the same for other
public services workers by partnering with other government and non-pro-
fit employers. To facilitate this process, this bill would clarify that
employers are permitted to share with the U.S. Department of Education
the employment data necessary to certify PSLF eligibility. It would also
clarify employers' important role in the PSLF program.

Each of these steps, once enacted, will help more New Yorkers access the
PSLF program. If passed in 2022, the bill would also help New Yorkers
take advantage of the time-limited opportunity announced by the U.S.
Department of Education to receive credit for PSLF loan forgiveness for
periods of repayment that were previously ineligible.  This opportunity
ends after October 2022.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the superintendent
of financial services shall be required to develop and make available
materials required pursuant to subdivision 1 of section three of this
act no later than 60 days after such effective date; public service
employers shall be required to comply with subdivisions 2 and 3 of
section three of this act no later than 120 days after such effective
date; and public service employers shall be required to comply with
paragraph b of subdivision 2 of section four of this act no later than
January 1, 2023.

S8389B - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8389--B
     Cal. No. 1289
 
                             I N  S E N A T E
 
                             February 22, 2022
                                ___________
 
 Introduced  by  Sens. THOMAS, MAY -- read twice and ordered printed, and
   when printed to be committed to the Committee on  Labor  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee -- reported favorably from said committee, ordered
   to first and second report, amended on second  report,  ordered  to  a
   third  reading, and to be reprinted as amended, retaining its place in
   the order of third reading
 
 AN ACT to amend the labor law, in relation to certification  of  employ-
   ment  with public service employers for purposes of the federal public
   service loan forgiveness program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The labor law is amended by adding a new article 34 to read
 as follows:
                                ARTICLE 34
                CERTIFICATION OF PUBLIC SERVICE EMPLOYMENT
 SECTION 1000. DEFINITIONS.
         1001. HOURS WORKED AND FULL-TIME EMPLOYMENT.
         1002. CERTIFYING EMPLOYMENT.
   § 1000. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   1.  "CERTIFYING  EMPLOYMENT"  MEANS  EITHER  COMPLETING  THE  EMPLOYER
 SECTIONS OF THE PUBLIC SERVICE LOAN FORGIVENESS  FORM  OR  SHARING  DATA
 DIRECTLY  WITH THE U.S.  DEPARTMENT OF EDUCATION THAT CORRESPONDS TO THE
 INFORMATION REQUIRED FOR THE PUBLIC SERVICE LOAN FORGIVENESS FORM.
   2. "EMPLOYEE" MEANS SOMEONE WHO WORKS FOR A PUBLIC  SERVICE  EMPLOYER,
 REGARDLESS OF WHETHER THE PUBLIC SERVICE EMPLOYER CONSIDERS THAT WORK TO
 BE FULL-TIME OR PART-TIME, CONTINGENT, OR CONTRACTED.
   3.  "FULL-TIME"  FOR  THE  PURPOSE OF CERTIFYING EMPLOYMENT ONLY MEANS
 WORKING AT LEAST AN AVERAGE OF THIRTY HOURS PER  WEEK  OR  AT  LEAST  AN
 AVERAGE  OF THIRTY HOURS PER WEEK THROUGHOUT A CONTRACTUAL OR EMPLOYMENT
 PERIOD OF AT LEAST EIGHT  MONTHS  IN  A  TWELVE-MONTH  PERIOD,  SUCH  AS
 ELEMENTARY AND SECONDARY SCHOOL TEACHERS, PROVIDED, HOWEVER, THAT SHOULD
 THE  U.S.  DEPARTMENT  OF  EDUCATION ADOPT A LOWER HOURLY STANDARD, THAT
 STANDARD SHALL APPLY.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14644-05-2
 S. 8389--B                          2
 
   4. "PUBLIC SERVICE EMPLOYER" MEANS ANY EMPLOYER DESIGNATED AS A PUBLIC
 SERVICE ORGANIZATION OR EMPLOYER BY THE U.S. DEPARTMENT OF EDUCATION FOR
 THE PURPOSE OF THE PUBLIC SERVICE LOAN  FORGIVENESS  PROGRAM.  THE  TERM
 SHALL  INCLUDE ANY STATE, COUNTY, CITY OR OTHER LOCAL GOVERNMENT EMPLOY-
 ER,   INCLUDING  ANY  OFFICE,  DEPARTMENT,  INDEPENDENT  AGENCY,  SCHOOL
 DISTRICT, PUBLIC COLLEGE OR UNIVERSITY SYSTEM,  PUBLIC  LIBRARY  SYSTEM,
 AUTHORITY,  OR  OTHER BODY, INCLUDING THE LEGISLATURE AND THE JUDICIARY,
 AS WELL AS ANY EMPLOYER THAT HAS RECEIVED DESIGNATION  AS  A  TAX-EXEMPT
 ORGANIZATION  PURSUANT TO SECTION 501(C)(3) OF THE U.S. INTERNAL REVENUE
 CODE.  FOR THE PURPOSES OF THIS ARTICLE, THIS TERM DOES  NOT  INCLUDE  A
 FEDERAL OR TRIBAL NATION GOVERNMENT ORGANIZATION, AGENCY, OR ENTITY.
   5.  "PUBLIC  SERVICE LOAN FORGIVENESS FORM" MEANS THE FORM USED BY THE
 U.S. DEPARTMENT OF EDUCATION TO CERTIFY AN INDIVIDUAL'S EMPLOYMENT AT  A
 PUBLIC  SERVICE  ORGANIZATION AND DETERMINE ELIGIBILITY FOR THE PURPOSES
 OF THE PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.
   6. "PUBLIC SERVICE LOAN FORGIVENESS PROGRAM" MEANS  THE  FEDERAL  LOAN
 FORGIVENESS  PROGRAM  ESTABLISHED  PURSUANT  TO  20  U.S.C. 1087E(M) AND
 ADMINISTERED PURSUANT TO 34 C.F.R 685.219, AS OF THE EFFECTIVE  DATE  OF
 THIS ARTICLE.
   §  1001.  HOURS  WORKED  AND FULL-TIME EMPLOYMENT. THE FOLLOWING SHALL
 APPLY FOR THE PURPOSES OF CERTIFYING EMPLOYMENT FOR THE PURPOSES OF  THE
 PUBLIC  SERVICE  LOAN  FORGIVENESS  PROGRAM ONLY AND SHALL HAVE NO OTHER
 APPLICABILITY FOR PUBLIC SERVICE EMPLOYERS AND THEIR EMPLOYEES.
   1. FOR FACULTY OR TEACHER EMPLOYEES, A PUBLIC SERVICE EMPLOYER  CERTI-
 FYING  EMPLOYMENT  AFTER  THE  EFFECTIVE  DATE OF THIS SUBDIVISION SHALL
 CREDIT 3.35 HOURS WORKED FOR EACH HOUR OF  LECTURE  OR  CLASSROOM  TIME,
 REGARDLESS  OF  WHEN THE HOURS WERE WORKED, INCLUDING HOURS WORKED PRIOR
 TO THE EFFECTIVE DATE OF THIS SUBDIVISION.   THIS SUBDIVISION  DOES  NOT
 SUPERSEDE  ANY  GREATER  ADJUSTMENT  FACTOR  ESTABLISHED BY A COLLECTIVE
 BARGAINING AGREEMENT OR EMPLOYER POLICY  IN  RECOGNITION  OF  ADDITIONAL
 WORK  ASSOCIATED  WITH  LECTURE OR CLASSROOM TIME FOR THE PURPOSE OF THE
 PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.
   2. WHEN DETERMINING WHETHER AN EMPLOYEE IS CONSIDERED "FULL-TIME,"  AS
 THAT  TERM  IS  DEFINED  IN  THIS ARTICLE, FOR THE PURPOSE OF CERTIFYING
 EMPLOYMENT FOR THE PUBLIC  SERVICE  LOAN  FORGIVENESS  PROGRAM  ONLY,  A
 PUBLIC  SERVICE EMPLOYER SHALL NOT TREAT ANY ADJUSTED TOTAL HOURS WORKED
 PURSUANT TO SUBDIVISION ONE  OF  THIS  SECTION  DIFFERENTLY  FROM  HOURS
 WORKED WITHOUT AN ADJUSTMENT FACTOR.
   3.  FOR  THE  PURPOSE  OF CERTIFYING EMPLOYMENT ONLY, A PUBLIC SERVICE
 EMPLOYER SHALL CONSIDER AS "FULL-TIME" ANY EMPLOYEE  WHO  SATISFIES  THE
 DEFINITION OF "FULL-TIME" PROVIDED IN THIS ARTICLE.
   § 1002. CERTIFYING EMPLOYMENT. 1. SHOULD THE U.S. DEPARTMENT OF EDUCA-
 TION  PERMIT  PUBLIC SERVICE EMPLOYERS TO CERTIFY EMPLOYMENT FOR PAST OR
 PRESENT INDIVIDUAL EMPLOYEES OR GROUPS OF EMPLOYEES  DIRECTLY  WITH  THE
 U.S.  DEPARTMENT  OF  EDUCATION  OR  ITS  AGENTS,  NOTWITHSTANDING OTHER
 PROVISIONS OF LAW, A PUBLIC SERVICE EMPLOYER SHALL BE PERMITTED TO  SEND
 TO  THE  U.S.    DEPARTMENT  OF  EDUCATION OR ITS AGENTS THE INFORMATION
 NECESSARY FOR EMPLOYMENT CERTIFICATION.
   2. IF A PUBLIC SERVICE EMPLOYER DOES NOT DIRECTLY  CERTIFY  EMPLOYMENT
 WITH  THE  U.S.  DEPARTMENT  OF EDUCATION PURSUANT TO SUBDIVISION ONE OF
 THIS SECTION, THE PUBLIC SERVICE EMPLOYER SHALL ANNUALLY PROVIDE  NOTICE
 OF  RENEWAL  AND A COPY OF THE PUBLIC SERVICE LOAN FORGIVENESS FORM WITH
 THE EMPLOYER INFORMATION AND EMPLOYMENT CERTIFICATION  SECTIONS  OF  THE
 FORM ALREADY COMPLETED TO:
   A. AN EMPLOYEE WHO REQUESTS A PUBLIC SERVICE LOAN FORGIVENESS FORM;
 S. 8389--B                          3

   B.  ANY  CURRENT  EMPLOYEE  FOR  WHOM  THE PUBLIC SERVICE EMPLOYER HAS
 PREVIOUSLY CERTIFIED EMPLOYMENT; AND
   C.  AN  EMPLOYEE WHO IS ENDING HIS OR HER WORK WITH THE PUBLIC SERVICE
 EMPLOYER.
   THE PARTIALLY COMPLETED FORM SHOULD REFLECT EMPLOYMENT FOR  THE  PRIOR
 CALENDAR  YEAR,  AND MAY REFLECT LONGER PERIODS OF EMPLOYMENT, AS NECES-
 SARY.
   3. A PUBLIC SERVICE EMPLOYER SHALL NOT UNREASONABLY DELAY IN  CERTIFY-
 ING EMPLOYMENT.
   4.  NOTHING  IN  THIS  SECTION SHALL PREVENT A PUBLIC SERVICE EMPLOYER
 FROM SEEKING PERMISSION FROM ITS EMPLOYEES  PRIOR  TO  CERTIFYING  THEIR
 EMPLOYMENT.
   § 2. This act shall take effect immediately; provided that:
   a. public service employers shall be required to comply with paragraph
 a  of subdivision 2 of section 1002 of the labor law as added by section
 one of this act no later than sixty days after such effective date; and
   b. public service employers shall be required to comply with paragraph
 b of subdivision 2 of section 1002 of the labor law as added by  section
 one of this act no later than January 1, 2023.

Co-Sponsors

S8389C (ACTIVE) - Details

Law Section:: Labor Law
Laws Affected:: Add Art 34 §§1000 - 1002, Lab L; amd §612, Tax L

S8389C (ACTIVE) - Summary

S8389C (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S8389C

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the labor law, in relation to certification of employ-
ment with public service employers for purposes of the federal public
service loan forgiveness program

 
PURPOSE:

This legislation clarifies what it means for full-time employment for
the purposes of the public service loan forgiveness (PSLF) program.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill amends the labor law by adding a new article 34
titled "certification of public service employment."

Section 1000 provides definitions for "certifying employment," "employ-
ee," "full-time," "public service employer," "public service loan
forgiveness form," and "Public service loan forgiveness program."

Section 1001 stipulates the hours worked for full-time employment for
the purposes of the public service loan forgiveness program.

Section 1002 allows public service employers to certify employment for
individuals or groups of employees with the U.S. Department of Education
directly. A public service employer who chooses not to directly certify
with the U.S. Department of Education must annually provide notice of
renewal and a copy of the Public Service Loan Forgiveness Form, with
employer information already completed, to employees who request the
form, employees who previously certified employment, and employees
ending their employment with the public service employer.

Section 2 contains a severability clause.

Section 3 states the effective date.

 
JUSTIFICATION:

Public Service Loan Forgiveness (PSLF) is a federal program that rewards
and incentivizes public service work by cancelling a portion of borrow-
ers' federal student loans. The program requires borrowers to be full-
time employees of an eligible public service employer and make 120 qual-
ifying payments towards their student loan, after which the remainder of
their federal student loan debt is forgiven.

This bill addresses several well-documented barriers to entry to PSLF,
ranging from inconsistent program term definitions to confusion about
program eligibility. To combat these issues, this legislation provides
several definitions to clarify the confusion associated with this
requirement and would enact changes at the state level to leverage
participation by New Yorkers in this federal student loan debt forgive-
ness program.

Under federal rules for the program, full-time means the greater of 30
hours or the employer's definition of full-time. As a result, there is
no uniformity for what makes an employee full-time across different
eligible public service employers, including government organizations
and 501(c)(3) organizations. The U.S. Department of Education has recog-
nized this inconsistency across public service employers and has
proposed changing the program rules to a flat 30 hours per week standard
for all borrowers.

However, federal rulemaking is a slow process and any delay in a change
to this standard will continue to bar otherwise eligible public service
workers from this loan forgiveness program.  Critically, the regulations
already permit already permit employers to adopt a 30 hour per week
standard but does not require it. This bill would, for the purpose of
accessing PSLF only, require employers to use a 30 hour per week stand-
ard when certifying employees work with the U.S. Department of Educa-
tion. This bill does not impose a different standard for "full time"
employment for any other aspect of employer and employee relations.

Also, in recognition of the fact that non-tenure teachers and educators
across the state work many hours in excess of their contracted hours in
order to prepare for class, grade student work, and meet with students,
the bill requires employers to multiply the number of in-class hours of
employment by a multiple of 3.35, for the purpose of PSLF only. Without
this provision, educators in New York who practically work more hours
than their contracts reflect are unable to claim those additional work
hours toward PSLF eligibility.  These excess hours may move an educator
past the 30-hour threshold required for PSLF. Educators across the coun-
try and several states, including California and Oregon, have already
passed legislation similar to this bill that use the 3.35 multiplier to
ensure educators receive the credit they are due. As with the "full
time" standard, the multiplying of credit hours is limited to PSLF
employment certification only, and.has no bearing on other employer and
employee relations.

Finally, PSLF currently requires borrowers to submit paperwork to certi-
fy their qualifying employment to the U.S. Department of Education.
However, in 2021, the Department announced that it would begin to auto-
mate the certification and forgiveness process for federal public
service workers and welcomes the opportunity to do the same for other
public services workers by partnering with other government and non-pro-
fit employers. To facilitate this process, this bill would clarify that
employers are permitted to share with the U.S. Department of Education
the employment data necessary to certify PSLF eligibility. It would also
clarify employers' important role in the PSLF program.

Each of these steps, once enacted, will help more New Yorkers access the
PSLF program. If passed in 2022, the bill would also help New Yorkers
take advantage of the time-limited opportunity announced by the U.S.
Department of Education to receive credit for PSLF loan forgiveness for
periods of repayment that were previously ineligible. This opportunity
ends after October 2022.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect immediately; provided that the superintendent
of financial services shall be required to develop and make available
materials required pursuant to subdivision 1 of section three of this
act no later than 60 days after such effective date; public service
employers shall be required to comply with subdivisions 2 and 3 of
section three of this act no later than 120 days after such effective
date; and public service employers shall be required to comply with
paragraph b of subdivision 2 of section four of this act no later than
January 1, 2023.

S8389C (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8389--C
     Cal. No. 1289
 
                             I N  S E N A T E
 
                             February 22, 2022
                                ___________
 
 Introduced  by  Sens. THOMAS, MAY -- read twice and ordered printed, and
   when printed to be committed to the Committee on  Labor  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to  said  committee -- reported favorably from said committee, ordered
   to first and second report, amended on second  report,  ordered  to  a
   third  reading, and to be reprinted as amended, retaining its place in
   the order of third reading -- reported favorably from  said  committee
   to  third  reading, amended and ordered reprinted, retaining its place
   in the order of third reading
 
 AN ACT to amend the labor law, in relation to certification  of  employ-
   ment  with public service employers for purposes of the federal public
   service loan forgiveness program
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The labor law is amended by adding a new article 34 to read
 as follows:
                                ARTICLE 34
                CERTIFICATION OF PUBLIC SERVICE EMPLOYMENT
 SECTION 1000. DEFINITIONS.
         1001. HOURS WORKED AND FULL-TIME EMPLOYMENT.
         1002. CERTIFYING EMPLOYMENT.
   § 1000. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE:
   1.  "CERTIFYING  EMPLOYMENT"  MEANS  EITHER  COMPLETING  THE  EMPLOYER
 SECTIONS OF THE PUBLIC SERVICE LOAN FORGIVENESS  FORM  OR  SHARING  DATA
 DIRECTLY  WITH THE U.S.  DEPARTMENT OF EDUCATION THAT CORRESPONDS TO THE
 INFORMATION REQUIRED FOR THE PUBLIC SERVICE LOAN FORGIVENESS FORM.
   2. "EMPLOYEE" MEANS SOMEONE WHO WORKS FOR A PUBLIC  SERVICE  EMPLOYER,
 REGARDLESS OF WHETHER THE PUBLIC SERVICE EMPLOYER CONSIDERS THAT WORK TO
 BE FULL-TIME OR PART-TIME, CONTINGENT, OR CONTRACTED.
   3.  "FULL-TIME"  FOR  THE  PURPOSE OF CERTIFYING EMPLOYMENT ONLY MEANS
 WORKING AT LEAST AN AVERAGE OF THIRTY HOURS PER  WEEK  OR  AT  LEAST  AN
 AVERAGE  OF THIRTY HOURS PER WEEK THROUGHOUT A CONTRACTUAL OR EMPLOYMENT
 PERIOD OF AT LEAST EIGHT  MONTHS  IN  A  TWELVE-MONTH  PERIOD,  SUCH  AS
 ELEMENTARY AND SECONDARY SCHOOL TEACHERS, PROVIDED, HOWEVER, THAT SHOULD
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14644-07-2
 S. 8389--C                          2
 
 THE  U.S.  DEPARTMENT  OF  EDUCATION ADOPT A LOWER HOURLY STANDARD, THAT
 STANDARD SHALL APPLY.
   4. "PUBLIC SERVICE EMPLOYER" MEANS ANY EMPLOYER DESIGNATED AS A PUBLIC
 SERVICE ORGANIZATION OR EMPLOYER BY THE U.S. DEPARTMENT OF EDUCATION FOR
 THE  PURPOSE  OF  THE  PUBLIC SERVICE LOAN FORGIVENESS PROGRAM. THE TERM
 SHALL INCLUDE ANY STATE, COUNTY, CITY OR OTHER LOCAL GOVERNMENT  EMPLOY-
 ER,   INCLUDING  ANY  OFFICE,  DEPARTMENT,  INDEPENDENT  AGENCY,  SCHOOL
 DISTRICT, PUBLIC COLLEGE OR UNIVERSITY SYSTEM,  PUBLIC  LIBRARY  SYSTEM,
 AUTHORITY,  OR  OTHER BODY, INCLUDING THE LEGISLATURE AND THE JUDICIARY,
 AS WELL AS ANY EMPLOYER THAT HAS RECEIVED DESIGNATION  AS  A  TAX-EXEMPT
 ORGANIZATION  PURSUANT TO SECTION 501(C)(3) OF THE U.S. INTERNAL REVENUE
 CODE.  FOR THE PURPOSES OF THIS ARTICLE, THIS TERM DOES  NOT  INCLUDE  A
 FEDERAL OR TRIBAL NATION GOVERNMENT ORGANIZATION, AGENCY, OR ENTITY.
   5.  "PUBLIC  SERVICE LOAN FORGIVENESS FORM" MEANS THE FORM USED BY THE
 U.S. DEPARTMENT OF EDUCATION TO CERTIFY AN INDIVIDUAL'S EMPLOYMENT AT  A
 PUBLIC  SERVICE  ORGANIZATION AND DETERMINE ELIGIBILITY FOR THE PURPOSES
 OF THE PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.
   6. "PUBLIC SERVICE LOAN FORGIVENESS PROGRAM" MEANS  THE  FEDERAL  LOAN
 FORGIVENESS  PROGRAM  ESTABLISHED  PURSUANT  TO  20  U.S.C. 1087E(M) AND
 ADMINISTERED PURSUANT TO 34 C.F.R 685.219, AS OF THE EFFECTIVE  DATE  OF
 THIS ARTICLE.
   §  1001.  HOURS  WORKED  AND FULL-TIME EMPLOYMENT. THE FOLLOWING SHALL
 APPLY FOR THE PURPOSES OF CERTIFYING EMPLOYMENT FOR THE PURPOSES OF  THE
 PUBLIC  SERVICE  LOAN  FORGIVENESS  PROGRAM ONLY AND SHALL HAVE NO OTHER
 APPLICABILITY FOR PUBLIC SERVICE EMPLOYERS AND THEIR EMPLOYEES.
   1. FOR FACULTY OR TEACHER EMPLOYEES, A PUBLIC SERVICE EMPLOYER  CERTI-
 FYING  EMPLOYMENT  AFTER  THE  EFFECTIVE  DATE OF THIS SUBDIVISION SHALL
 CREDIT 3.35 HOURS WORKED FOR EACH HOUR OF  LECTURE  OR  CLASSROOM  TIME,
 REGARDLESS  OF  WHEN THE HOURS WERE WORKED, INCLUDING HOURS WORKED PRIOR
 TO THE EFFECTIVE DATE OF THIS SUBDIVISION.   THIS SUBDIVISION  DOES  NOT
 SUPERSEDE  ANY  GREATER  ADJUSTMENT  FACTOR  ESTABLISHED BY A COLLECTIVE
 BARGAINING AGREEMENT OR EMPLOYER POLICY  IN  RECOGNITION  OF  ADDITIONAL
 WORK  ASSOCIATED  WITH  LECTURE OR CLASSROOM TIME FOR THE PURPOSE OF THE
 PUBLIC SERVICE LOAN FORGIVENESS PROGRAM.
   2. WHEN DETERMINING WHETHER AN EMPLOYEE IS CONSIDERED "FULL-TIME,"  AS
 THAT  TERM  IS  DEFINED  IN  THIS ARTICLE, FOR THE PURPOSE OF CERTIFYING
 EMPLOYMENT FOR THE PUBLIC  SERVICE  LOAN  FORGIVENESS  PROGRAM  ONLY,  A
 PUBLIC  SERVICE EMPLOYER SHALL NOT TREAT ANY ADJUSTED TOTAL HOURS WORKED
 PURSUANT TO SUBDIVISION ONE  OF  THIS  SECTION  DIFFERENTLY  FROM  HOURS
 WORKED WITHOUT AN ADJUSTMENT FACTOR.
   3.  FOR  THE  PURPOSE  OF CERTIFYING EMPLOYMENT ONLY, A PUBLIC SERVICE
 EMPLOYER SHALL CONSIDER AS "FULL-TIME" ANY EMPLOYEE  WHO  SATISFIES  THE
 DEFINITION OF "FULL-TIME" PROVIDED IN THIS ARTICLE.
   § 1002. CERTIFYING EMPLOYMENT. 1. SHOULD THE U.S. DEPARTMENT OF EDUCA-
 TION  PERMIT  PUBLIC SERVICE EMPLOYERS TO CERTIFY EMPLOYMENT FOR PAST OR
 PRESENT INDIVIDUAL EMPLOYEES OR GROUPS OF EMPLOYEES  DIRECTLY  WITH  THE
 U.S.  DEPARTMENT  OF  EDUCATION  OR  ITS  AGENTS,  NOTWITHSTANDING OTHER
 PROVISIONS OF LAW, A PUBLIC SERVICE EMPLOYER SHALL BE PERMITTED TO  SEND
 TO  THE  U.S.    DEPARTMENT  OF  EDUCATION OR ITS AGENTS THE INFORMATION
 NECESSARY FOR EMPLOYMENT CERTIFICATION.
   2. IF A PUBLIC SERVICE EMPLOYER DOES NOT DIRECTLY  CERTIFY  EMPLOYMENT
 WITH  THE  U.S.  DEPARTMENT  OF EDUCATION PURSUANT TO SUBDIVISION ONE OF
 THIS SECTION, THE PUBLIC SERVICE EMPLOYER SHALL ANNUALLY PROVIDE  NOTICE
 OF  RENEWAL  AND A COPY OF THE PUBLIC SERVICE LOAN FORGIVENESS FORM WITH
 THE EMPLOYER INFORMATION AND EMPLOYMENT CERTIFICATION  SECTIONS  OF  THE
 FORM ALREADY COMPLETED TO:
 S. 8389--C                          3
 
   A. AN EMPLOYEE WHO REQUESTS A PUBLIC SERVICE LOAN FORGIVENESS FORM;
   B.  ANY  CURRENT  EMPLOYEE  FOR  WHOM  THE PUBLIC SERVICE EMPLOYER HAS
 PREVIOUSLY CERTIFIED EMPLOYMENT; AND
   C. AN EMPLOYEE WHO IS ENDING HIS OR HER WORK WITH THE  PUBLIC  SERVICE
 EMPLOYER.
   THE  PARTIALLY  COMPLETED FORM SHOULD REFLECT EMPLOYMENT FOR THE PRIOR
 CALENDAR YEAR, AND MAY REFLECT LONGER PERIODS OF EMPLOYMENT,  AS  NECES-
 SARY.
   3.  A PUBLIC SERVICE EMPLOYER SHALL NOT UNREASONABLY DELAY IN CERTIFY-
 ING EMPLOYMENT.
   4. NOTHING IN THIS SECTION SHALL PREVENT  A  PUBLIC  SERVICE  EMPLOYER
 FROM  SEEKING  PERMISSION  FROM  ITS EMPLOYEES PRIOR TO CERTIFYING THEIR
 EMPLOYMENT.
   § 2. Severability. If any clause, sentence, paragraph, section or part
 of this act shall be adjudged by any court of competent jurisdiction  to
 be  invalid  and  after  exhaustion  of all further judicial review, the
 judgment shall not affect, impair or invalidate the  remainder  thereof,
 but  shall  be  confined in its operation to the clause, sentence, para-
 graph, section or part of this act directly involved in the  controversy
 in which the judgment shall have been rendered.
   § 3. This act shall take effect immediately; provided that:
   a. public service employers shall be required to comply with paragraph
 a  of subdivision 2 of section 1002 of the labor law as added by section
 one of this act no later than sixty days after such effective date; and
   b. public service employers shall be required to comply with paragraph
 b of subdivision 2 of section 1002 of the labor law as added by  section
 one of this act no later than January 1, 2023.

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The New York State Senate

senate Bill S8389A

Sponsored By

Archive: Last Bill Status - Signed by Governor

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Votes

May 31, 2022 - floor Vote

Floor Vote: May 31, 2022

May 10, 2022 - Labor committee Vote

Labor Committee Vote: May 10, 2022

Bill Amendments

S8389 - Details

S8389 - Summary

S8389 - Sponsor Memo

S8389 - Bill Text download pdf

Co-Sponsors

S8389A - Details

S8389A - Summary

S8389A - Sponsor Memo

S8389A - Bill Text download pdf

Co-Sponsors

S8389B - Details

S8389B - Summary

S8389B - Sponsor Memo

S8389B - Bill Text download pdf

Co-Sponsors

S8389C (ACTIVE) - Details

S8389C (ACTIVE) - Summary

S8389C (ACTIVE) - Sponsor Memo

S8389C (ACTIVE) - Bill Text download pdf

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senate Bill S8389A

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Sponsored By

Kevin Thomas

Archive: Last Bill Status - Signed by Governor

Your Voice

Actions

Votes

May 31, 2022 - floor Vote

Floor Vote: May 31, 2022

May 10, 2022 - Labor committee Vote

Labor Committee Vote: May 10, 2022

Bill Amendments

S8389 - Details

S8389 - Summary

S8389 - Sponsor Memo

S8389 - Bill Text download pdf

Co-Sponsors

Rachel May

S8389A - Details

S8389A - Summary

S8389A - Sponsor Memo

S8389A - Bill Text download pdf

Co-Sponsors

Rachel May

S8389B - Details

S8389B - Summary

S8389B - Sponsor Memo

S8389B - Bill Text download pdf

Co-Sponsors

Rachel May

S8389C (ACTIVE) - Details

S8389C (ACTIVE) - Summary

S8389C (ACTIVE) - Sponsor Memo

S8389C (ACTIVE) - Bill Text download pdf

Comments