Student loan repayment program.

WORKING DRAFT
2005
STATE OF WYOMING
05LSO-0052

HOUSE BILL
NO.
HB0134

Student loan repayment programs.

Sponsored by:
Representative(s) Hinckley

A BILL

for

AN ACT relating to student loans; establishing a loan repayment program to recruit and retain graduates in targeted occupations; creating a separate account for program expenditures; specifying procedures, eligibility requirements and imposing contractual conditions upon recipients; imposing duties upon the Wyoming community college commission; transferring program administration of the nursing loan and grant program from the Wyoming higher education assistance authority to the commission and transferring program funds accordingly; providing for initial loan repayment program assistance; providing appropriations and authorizing an additional position; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section

1.

W.S. 21
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16
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1201 through 21
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16
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1204 are created to read:

ARTICLE 12
WYOMING STUDENT LOAN REPAYMENT PROGRAM

21
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16
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1201.

Wyoming student loan repayment program account established; disposition of account monies.

(a)

The Wyoming student loan repayment program account is created within the earmarked revenue fund to consist of funds appropriated to or designated to the account by law or by gift from whatever source, for distribution in accordance with this article.

(b)

The state treasurer shall within any limits established by legislative appropriation, pay resources of the account established under subsection (a) of this section to the state treasury to be drawn out and distributed for repayment of federal loans upon certification of and in accordance with necessary procedures and documentation provided by the community college commission.

21
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16
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1202.

Wyoming student loan repayment program; administered by Wyoming community college commission; gubernatorial determination of targeted occupations and skills.

(a)

The Wyoming student loan repayment program is established and shall be administered by the Wyoming community college commission. The purpose of the program is to recruit and retain graduates of accredited postsecondary education programs including technological, vocational and technical programs, in targeted professions, occupations and skills, to augment the workforce in Wyoming and provide for and advance the economic welfare of the state.

(b)

The community college commission shall not later than October 1 of each year, and in consultation with the Wyoming business council, the Wyoming workforce development council, the Wyoming department of workforce services, the Wyoming department of employment and other designated agencies, report to the governor on professions, occupations and skills which over the subsequent five (5) to ten (10) year period, require a significant increase in the number of related postsecondary education program graduates which are not located and available within the state. Based upon this report, the governor shall identify those professions, occupations and skills to be targeted by the loan repayment program established under this article within the recommended state budget for the loan repayment program during the corresponding budget period.

(c)

The commission shall annually provide for assistance payments from the account established under W.S. 21
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16
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1201 on behalf of a recipient. Assistance payments shall be for repayment of the recipient's federal student loan upon compliance with terms of the contractual agreement required under W.S. 21
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16
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1203. In administering this subsection, the commission shall establish procedures for repayments made on each recipient's behalf and for necessary reporting requirements.

(d)

The commission shall establish terms and conditions for assistance payments awarded under this article, including:

(i)

The form and process for assistance application, review and award
;

(ii)

Terms and conditions for contractual agreements between the recipient and the commission;

(iii)

Limitations on program participation to the extent funds are available within the repayment program account, ensuring sufficient funds are maintained at all times to fulfill contractual obligations entered into pursuant to this article.

(e)

The commission shall adopt rules and regulations consistent with this article, as necessary to implement and administer the student loan repayment program established by this article. In addition, the commission may contract with appropriate expertise and professionals in administering this article and in performing duties imposed under this article.

21
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16
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1203.

Eligibility requirements; contractual agreement required.

(a
)

To qualify for assistance under this article, individuals shall meet the following requirements:

(i)

Successful completion of a postsecondary education program from a postsecondary education institution accredited by an accrediting association recognized by the United States department of education, as evidenced by a degree or certificate;

(ii)

Recipient of education loans funded or guaranteed by the federal government, including federal Stafford loans, federal direct loans and federal consolidated loans under Title IV of the Higher Education Act, with outstanding loan repayments not in default;

(iii)

Qualification for employment in a profession, occupation or skill targeted for recruitment and retention under procedures specified by this article.

(b)

Assistance available under this article shall be contingent upon a contractual agreement entered into between the community college commission and the recipient which requires the recipient to reside and obtain employment within the state in a profession, occupation or skill for any year in which loan repayment assistance is provided under this article. Assistance payments shall not be made on behalf of a recipient under this article until completion of one (1) full year of employment within the state, as specified within the contractual agreement. The total amount of assistance provided under this article on behalf of any one (1) recipient shall be limited to the lesser of twenty percent (20%) of remaining outstanding Title IV federal assistance repayments or ten thousand dollars ($10,000.00), payable over a period of five (5) years at an annual amount not to exceed two thousand dollars ($2,000.00).

21
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16
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1204.

Annual report.

The commission shall annually review the assistance program established under this article and report to the governor and the legislature in accordance with W.S. 9
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2
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1014, regarding program results, account funds and repayment assistance provided during the preceding fiscal year, together with the status of all outstanding contractual agreements under the program.

Section

2.

W.S. 9
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2
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123(a), (c)(i) through (iii), (g)(iii), (j)(intro), (k) and (n) and 21
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18
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202(c) by creating a new paragraph (viii) are amended to read:

9
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2
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123.

Wyoming investment in nursing loan and grant program; eligibility criteria; procedures.

(a)

There is created the Wyoming investment in nursing program administered by the Wyoming
higher education assistance authority created under W.S. 21
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16
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703
community college commission
. The program shall be known as the WYIN program. Applicants shall be residents of this state or graduates of a Wyoming high school and may apply for loans from the WYIN program in accordance with this section.

(c)

Subject to the availability of funds appropriated for this program, loans under the WYIN program may be granted to applicants enrolled or planning to enroll in nursing education programs as follows:

(i)

An applicant who is accepted into a Wyoming licensed practical nurse or registered nursing education program or a baccalaureate degree program in nursing may be eligible for a loan to pay the unmet need, as determined by the Wyoming
higher education assistance authority or its designee
community college commission
, of attendance at the licensed practical nursing education program or the registered nursing education program leading to an associate's or baccalaureate degree;

(ii)

A registered nurse with a baccalaureate degree who holds an unencumbered license with the Wyoming board of nursing, has the equivalent of at least one (1) year of full-time service teaching in a nursing education program in Wyoming as a registered nurse with a baccalaureate degree and is accepted into a nursing education program at the University of Wyoming leading to a master's degree in nursing or nursing education may be eligible for a loan to pay the unmet need of attendance, as determined by the Wyoming
higher education assistance authority or its designee
community college commission
, provided that in order to receive a loan for a master's degree program, the applicant shall agree to repay the loan by teaching at a Wyoming college or the University of Wyoming;

(iii)

A registered nurse with a master's degree in nursing who holds an unencumbered license with the Wyoming board of nursing, has the equivalent of at least one (1) year of full-time service teaching in a nursing education program in Wyoming as a registered nurse with a master's degree in nursing and is accepted into a nursing education program at an institution providing the required nursing education courses under contract with the western interstate commission for higher education or in a distance nursing education program at a university that is regionally accredited leading to a doctorate level degree in nursing may be eligible for a loan to pay the unmet need of attendance, as determined by the Wyoming
higher education assistance authority or its designee
community college commission
, provided that in order to receive a loan for a doctorate level degree program, the applicant shall agree to repay the loan by teaching at the University of Wyoming.

(g)

Any recipient of a WYIN loan who fails:

(iii)

The appropriate certification or licensure examination on the first attempt may retake the examination at the next available opportunity before commencing repayment of the loan. The recipient shall notify the Wyoming
higher education assistance authority or its contractor
community college commission
of the intent to retake the examination and the date the examination will be taken. Any recipient of a WYIN loan who fails the examination after the second attempt shall commence cash repayment of the loan within forty-five (45) days after receipt of notification of the second failure by the board of nursing. If the recipient of a WYIN loan who fails the examination on the first attempt does not retake the examination at the next available opportunity, cash repayment shall commence within forty-five (45) days after the next available examination is conducted.

(j)

The Wyoming
higher education assistance authority shall have the powers and duties specified in W.S. 21
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16
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705 to
community college commission shall
implement this section and shall establish terms and conditions of loans issued under this section, including:

(k)

Funding of the loan program established under this section shall be by appropriation of the legislature. The
authority
commission
shall transfer approved loan amounts to the University of Wyoming and to Wyoming community colleges at which loan recipients are enrolled. In consultation with the university and affected community colleges, the
authority
commission
shall establish procedures for transferring loan amounts and for reporting requirements on the expenditure of transferred loan amounts.

(n)

The
authority
commission
shall annually review the loan program established under this section and report to the governor and the legislature in accordance with W.S. 9
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2
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1014, regarding program results, funds received and loans issued during the preceding academic year, together with the status of all outstanding loan commitments and repayments under the program.

21
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18
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202.

Powers and duties of the commission.

(c)

The commission shall perform the following administrative functions:

(viii)

Administer the Wyoming student loan repayment program established under W.S. 21
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16
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1201 through 21
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1204, and the Wyoming investment in nursing loan and grant program established under W.S. 9
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2
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123, and may contract with appropriate professional expertise to administer these programs.

Section 3.

(a)

To implement section 1 of this act for the fiscal year commencing July 1, 2005, and notwithstanding W.S. 21
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16
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1202(b) as created under section 1 of this act, t
he community college commission shall not later than June 1, 2005, with the assistance of the Wyoming business council, the Wyoming workforce development council, the Wyoming department of workforce services, the Wyoming department of employment and other designated agencies, report to the governor on professions, occupations and skills in short supply to meet state needs. Based upon this report, the governor shall identify those professions, occupations and skills to be targeted by the loan repayment program established under this article and funded by the appropriation under subsection (b) of this section.

(b)

Five hundred thousand dollars ($500,000.00) is appropriated from the general fund to the Wyoming student loan repayment account established by W.S. 21
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16
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1201(a), as created under section 1 of this act, for the fiscal year beginning July 1, 2005.

(c)

Any unexpended, unobligated or unencumbered funds as of the effective date of this act which were appropriated to the Wyoming higher education assistance authority under 2004 Wyoming Session Laws, Chapter 95, Section 047, shall be transferred to the Wyoming community college commission.

(d)

Eighty-five thousand seven dollars ($85,007.00) is appropriated from the general fund to the Wyoming community college commission for the fiscal year commencing July 1, 2005. In addition, the commission is authorized one (1) full-time position to implement this act. Of the amounts appropriated under this subsection, up to ten thousand dollars ($10,000.00) is available to the commission for contractual services.

Section

4.

This act is effective
immediately upon co
m
pletion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constit
u
tion.

(END)

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HB0134