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

                                  9417

                          I N  A S S E M B L Y

                              March 3, 2016
                               ___________

Introduced  by  M.  of  A.  RICHARDSON  -- read once and referred to the
  Committee on Higher Education

AN ACT to amend the education law, in relation to establishing  the  New
  York state loan redemption program for certain public school teachers

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

  Section 1. The education law is amended by adding a new section  679-h
to read as follows:
  S  679-H.  NEW  YORK  STATE LOAN REDEMPTION PROGRAM FOR CERTAIN PUBLIC
SCHOOL TEACHERS. 1.  FOR THE PURPOSES OF  THIS  SECTION,  THE  FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "ELIGIBLE  STUDENT  LOAN EXPENSES" MEANS NINE THOUSAND DOLLARS OR
THE OUTSTANDING BALANCE OF THE PRINCIPAL AND  INTEREST  DUE  ON  STUDENT
LOANS,  WHICHEVER  IS  LESS,  USED TO COVER THE COST OF ATTENDANCE WHILE
ENROLLED IN AN UNDERGRADUATE OR GRADUATE DEGREE PROGRAM AT  AN  INSTITU-
TION OF HIGHER EDUCATION.
  (B)  "PROGRAM  PARTICIPANT" MEANS A PERSON WHO IS INITIALLY HIRED BY A
SCHOOL DISTRICT FOLLOWING THE EFFECTIVE DATE OF  THIS  SECTION  AND  WHO
MEETS  THE CRITERIA OF PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION,
AND WHO HAS EXECUTED A CONTRACT WITH THE CORPORATION  FOR  PARTICIPATION
IN  THE  LOAN REDEMPTION PROGRAM. A PROGRAM PARTICIPANT SHALL BE A RESI-
DENT OF NEW YORK STATE.
  (C) "PUBLIC SCHOOL" MEANS A SCHOOL LOCATED IN NEW YORK, UNDER COLLEGI-
ATE GRADE, WHICH IS OPERATED BY A SCHOOL DISTRICT OR  A  CHARTER  SCHOOL
ESTABLISHED PURSUANT TO ARTICLE FIFTY-SIX OF THIS CHAPTER.
  (D)  "SCHOOL  DISTRICT"  MEANS  A COMMON, UNION FREE, CENTRAL, CENTRAL
HIGH SCHOOL OR CITY SCHOOL DISTRICT.
  2. (A) THERE IS ESTABLISHED  IN  THE  CORPORATION  A  LOAN  REDEMPTION
PROGRAM FOR PUBLIC SCHOOL TEACHERS WHO MEET THE FOLLOWING CRITERIA:
  (I)  GRADUATED  IN THE TOP TWENTY PERCENT OF THE STUDENT'S HIGH SCHOOL
GRADUATING CLASS OR SCORED IN THE TOP TWENTY PERCENT ON  THE  SCHOLASTIC
ASSESSMENT TEST (SAT) OR THE AMERICAN COLLEGE TESTING (ACT) EXAMINATION;
  (II)  GRADUATED  FROM  AN INSTITUTION OF HIGHER EDUCATION WITH A GRADE
POINT AVERAGE OF AT LEAST 3.5; AND

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

                                                           LBD13443-01-5

A. 9417                             2

  (III) TEACHES SCIENCE, TECHNOLOGY, ENGINEERING OR  MATHEMATICS  (STEM)
CLASSES OR SPECIAL EDUCATION.
  THE  PROGRAM  SHALL PROVIDE FOR THE REDEMPTION OF THE ELIGIBLE STUDENT
LOAN EXPENSES OF A PROGRAM PARTICIPANT FOLLOWING THE  THIRD  CONSECUTIVE
YEAR  OF FULL-TIME EMPLOYMENT AS A TEACHER OF SCIENCE, TECHNOLOGY, ENGI-
NEERING, MATHEMATICS OR SPECIAL EDUCATION IN A PUBLIC SCHOOL.
  (B) A PROGRAM PARTICIPANT MAY REDEEM ELIGIBLE  STUDENT  LOAN  EXPENSES
UPON  EXECUTION  OF  A  CONTRACT BETWEEN THE PROGRAM PARTICIPANT AND THE
CORPORATION. THE CONTRACT SHALL SPECIFY THE TOTAL AMOUNT OF DEBT  TO  BE
REDEEMED BY THE STATE IN RETURN FOR SERVICE PURSUANT TO PARAGRAPH (C) OF
THIS SUBDIVISION.
  (C)  THE  REDEMPTION  OF LOANS UNDER THE LOAN REDEMPTION PROGRAM SHALL
AMOUNT TO NINE THOUSAND DOLLARS OR THE OUTSTANDING BALANCE OF THE  PRIN-
CIPAL AND INTEREST OF ELIGIBLE STUDENT LOAN EXPENSES, WHICHEVER IS LESS,
FOLLOWING THE THIRD CONSECUTIVE YEAR OF FULL-TIME EMPLOYMENT AS A TEACH-
ER OF SCIENCE, TECHNOLOGY, ENGINEERING, MATHEMATICS OR SPECIAL EDUCATION
IN  A  PUBLIC SCHOOL.   A PROGRAM PARTICIPANT SHALL SUBMIT TO THE CORPO-
RATION PROOF OF ELIGIBLE EMPLOYMENT IN A PUBLIC SCHOOL PRIOR TO  REDEMP-
TION  OF  LOAN  INDEBTEDNESS.  A  PROGRAM PARTICIPANT IS NOT REQUIRED TO
TEACH AT THE SAME PUBLIC SCHOOL FOR THREE CONSECUTIVE YEARS.
  (D) A PROGRAM PARTICIPANT WHO HAS ENTERED INTO A  REDEMPTION  CONTRACT
WITH  THE  CORPORATION  MAY  NULLIFY  THE CONTRACT BY SUBMITTING WRITTEN
NOTIFICATION TO THE CORPORATION AND  ASSUMING  FULL  RESPONSIBILITY  FOR
REPAYMENT  OF  PRINCIPAL  AND  INTEREST ON THE FULL AMOUNT OF HIS OR HER
LOANS OR THAT PORTION OF THE LOANS WHICH HAS NOT BEEN  REDEEMED  BY  THE
STATE IN RETURN FOR FULFILLMENT OF THE CONTRACT.
  (E) IN THE CASE OF THE PROGRAM PARTICIPANT'S DEATH OR TOTAL AND PERMA-
NENT DISABILITY, THE CORPORATION SHALL NULLIFY THE SERVICE OBLIGATION OF
THE  PROGRAM  PARTICIPANT.  THE NULLIFICATION SHALL TERMINATE THE CORPO-
RATION'S OBLIGATIONS UNDER THE LOAN REDEMPTION  CONTRACT.  IF  CONTINUED
ENFORCEMENT OF THE CONTRACT RESULTS IN EXTREME HARDSHIP, THE CORPORATION
MAY  NULLIFY  OR  SUSPEND  THE SERVICE OBLIGATION OF THE PROGRAM PARTIC-
IPANT.
  3. THE CORPORATION SHALL ANNUALLY SUBMIT A REPORT ON  THE  PROGRAM  TO
THE  GOVERNOR  AND  TO THE LEGISLATURE. THE REPORT SHALL BE SUBMITTED NO
LATER THAN AUGUST FIRST OF EACH YEAR  AND  SHALL  INCLUDE,  BUT  NOT  BE
LIMITED  TO,  INFORMATION  ON THE TOTAL NUMBER OF PARTICIPANTS RECEIVING
LOAN REDEMPTION UNDER THE PROGRAM, THE IMPACT OF THE PROGRAM ON ATTRACT-
ING TEACHERS TO TEACH STEM SUBJECTS OR SPECIAL EDUCATION, AND THE NUMBER
OF PARTICIPANTS WHO WITHDREW FROM THE PROGRAM PRIOR TO THE COMPLETION OF
THE REQUIRED SERVICE.
  4. THE CORPORATION, IN CONSULTATION WITH THE DEPARTMENT,  SHALL  ADOPT
RULES  AND  REGULATIONS  NECESSARY  TO  EFFECTUATE  THE PURPOSES OF THIS
SECTION.
  S 2. This act shall take effect immediately.