2002 SESSION

02-3167

04/10

SENATE BILL 427-FN-A

COMMITTEE: Education

ANALYSIS

This bill makes various changes to the career incentive program within the postsecondary education commission relative to eligibility for career incentive loans and loan repayment terms.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

02-3167

04/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Two

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Postsecondary Education Commission; Career Incentive Program Amended. Amend RSA 188-D:14 and RSA 188-D:15 to read as follows:

188-D:14 Career Incentive [Scholarships] Program. The commission shall administer a career incentive [scholarship] program.

188-D:15 Rulemaking. The commission shall adopt rules, under RSA 541-A, to carry out the [scholarship] program, including establishing a reasonable maximum amount of money provided to a recipient under the program and a reasonable frequency of such loans, [and] setting minimum qualifications of applicants and determining the terms of repayment.

2 Postsecondary Education Commission; Career Incentive Program Amended. Amend RSA 188-D:16, II to read as follows:

II. Recipients shall be chosen [only] on the basis of financial need and merit. Each loan recipient shall sign a note to the state treasurer for the amount of each payment. The commission shall require recipients to agree in writing to work in the shortage area for which funds were received in New Hampshire for a specified period following completion of their training.

3 Postsecondary Education Commission; Career Incentive Program Amended. Amend RSA 188-D:18, I-III to read as follows:

188-D:18 Repayment.

I. [Recipients of loans for one year shall have their notes cancelled upon completion of one year of full-time service or part-time service prorated to equal one year of full-time service in the shortage area for which funds were received in New Hampshire following licensure, certification, or completion of the program for which funding was received. Repayment by service shall be completed within 3 years from the date of licensure, certification, or completion of the program] The commission shall establish repayment schedules that reflect the differing career demands of the shortage areas. All repayment schedules shall contain a component that allows for repayment through service in New Hampshire for a specified period of time.

II. [Recipients of loans for more than one year shall have their notes cancelled upon completion of 2 years of full-time service or part-time service prorated to equal 2 years of full-time service in the shortage area for which funds were received in New Hampshire immediately following licensure, certification, or completion of the program for which funding was received. Repayment by service shall be completed within 5 years from the date of licensure, certification, or completion of the program.

III.] If the note is not cancelled because of service, the recipient shall repay the loan within [2] 5 years[:

(a) After] after withdrawing from [or completing] the training program[;] or from the inception of monetary repayment.

[(b) From the date of the initial request for repayment after it has been determined that the recipient will be unable to repay with service within the time specified under paragraphs I and II of this section. This time period can be extended by an order of the court. If repayment has not been cancelled through service, the amount of service performed shall be prorated against the total loan amount due. As this is a benefit to the recipient, it is intended to be available to those recipients who have already received loans under this program]

III. The commission shall have the authority to enter into contracts for the administration of the repayment provisions of this program.

4 Postsecondary Education Commission; Career Incentive Program Amended. Amend RSA 188-D:18, IX-X to read as follows:

IX. During the time the recipient qualified for any of the exceptions in paragraph VII of this section, such recipient need not make the repayments required under paragraph [III] II of this section and the commission shall extend the [2-year] 5-year repayment period established under paragraph [III] II of this section by a period equal to the length of time a recipient meets any of the conditions listed in paragraph VII of this section, or if a recipient's inability to complete the loan repayments within this [2-year] 5-year period, because of a financial condition, has been established to the commission's satisfaction.

X. The commission shall cancel a recipient's repayment obligation if it determines that:

(a) The recipient is unable to work because of a permanent total disability, established on the basis of [a sworn] an affidavit of a qualified physician;

(b) The recipient has received relief under federal bankruptcy laws; or

(c) The recipient has died, established by a death certificate or other evidence deemed conclusive under state law.

5 Appropriation. The sum of $300,000 for the fiscal year ending June 30, 2003 is hereby appropriated to the postsecondary education commission for the purposes of this act. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

6 Effective Date. This act shall take effect 60 days after its passage.

LBAO

02-3167

1/14/02

SB 427-FN-A - FISCAL NOTE

FISCAL IMPACT:

METHODOLOGY: