S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5367
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               March 3, 2021
                                ___________
 
 Introduced by Sen. OBERACKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Higher Education
 
 AN ACT to amend the education law, in relation to establishing the rural
   teacher education loan repayment program
 
   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  676-a
 to read as follows:
   §  676-A.  RURAL  TEACHER  EDUCATION LOAN REPAYMENT PROGRAM. 1.  DEFI-
 NITIONS. FOR THE PURPOSES OF THIS SECTION:
   A. "RURAL SCHOOL DISTRICT" SHALL  MEAN  A  SCHOOL  DISTRICT  PROVIDING
 SERVICES WITHIN A RURAL AREA.
   B.  "RURAL  AREA" SHALL MEAN A COUNTY WITH A POPULATION OF TWO-HUNDRED
 THOUSAND OR LESS; OR A TOWN WITH A POPULATION  DENSITY  OF  ONE  HUNDRED
 FIFTY OR LESS PER SQUARE MILE.
   C.  "STUDENT  LOAN  EXPENSES" SHALL MEAN THE AGGREGATE TOTAL OF ANNUAL
 STUDENT LOANS FOR THE COST OF  ATTENDANCE  AT  AN  UNDERGRADUATE  AND/OR
 GRADUATE INSTITUTION LEADING TO TEACHING CERTIFICATION. INTEREST PAID OR
 DUE  ON  SUCH  LOANS  SHALL  BE  DEEMED TO BE ELIGIBLE FOR REIMBURSEMENT
 PURSUANT TO THIS SECTION.
   2. ESTABLISHMENT. A. THERE SHALL BE ESTABLISHED WITHIN THE  DEPARTMENT
 THE  RURAL  TEACHER  EDUCATION  LOAN  REPAYMENT  PROGRAM. THE DEPARTMENT
 SHALL, IN COOPERATION AND COORDINATION WITH THE NEW  YORK  STATE  CENTER
 FOR  RURAL  SCHOOLS,  ANNUALLY IDENTIFY RURAL SCHOOL DISTRICTS WHICH ARE
 HAVING DIFFICULTY ATTRACTING AND RETAINING TEACHERS, AND DEVELOP  CRITE-
 RIA  UPON  WHICH AWARDS SHALL BE MADE TO TEACHERS WHO BECOME EMPLOYED BY
 SUCH IDENTIFIED RURAL SCHOOL DISTRICTS WHO  AGREE  TO  PROVIDE  TEACHING
 SERVICES WITHIN SUCH RURAL AREA FOR NOT LESS THAN FIVE YEARS.
   B.  THE  COMMISSIONER IS AUTHORIZED, WITHIN AMOUNTS MADE AVAILABLE FOR
 THE PURPOSES OF THIS SECTION, TO MAKE AWARDS  BEGINNING  JANUARY  FIRST,
 TWO  THOUSAND  TWENTY-TWO, TO A TEACHER WHO AS DETERMINED BY THE COMMIS-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD10100-01-1

 S. 5367                             2
 
 SIONER TO BE TAKING EMPLOYMENT IN  A  RURAL  AREA  IDENTIFIED  AS  BEING
 UNDERSERVED,  WHO  IS  LICENSED TO TEACH IN THIS STATE AND WHO AGREES TO
 FOR AT LEAST FIVE YEARS TEACH IN SUCH RURAL AREA. SUCH A  TEACHER  SHALL
 BE  ELIGIBLE FOR A LOAN REPAYMENT AWARD OF UP TO TWENTY THOUSAND DOLLARS
 PER YEAR.
   3. AWARDS. RURAL TEACHER EDUCATION  LOAN  REPAYMENT  AWARDS  SHALL  BE
 AWARDED  ANNUALLY.  SUCH  AWARDS  SHALL BE ALLOCATED BY THE PRESIDENT IN
 ACCORDANCE WITH THE CRITERIA ESTABLISHED PURSUANT TO SUBDIVISION TWO  OF
 THIS SECTION.
   4.  LIMIT  ON AWARDS. LOAN REPAYMENT AWARDS MADE TO A TEACHER PURSUANT
 TO SUBDIVISION TWO OF THIS SECTION SHALL NOT EXCEED THE TOTAL QUALIFYING
 OUTSTANDING DEBT OF THE TEACHER FROM STUDENT LOANS TO COVER TUITION  AND
 OTHER RELATED EDUCATIONAL EXPENSES, MADE BY OR GUARANTEED BY THE FEDERAL
 OR  STATE  GOVERNMENT,  OR  MADE BY A LENDING OR EDUCATIONAL INSTITUTION
 APPROVED UNDER TITLE IV OF THE FEDERAL HIGHER EDUCATION ACT. LOAN REPAY-
 MENT AWARDS SHALL BE USED SOLELY TO REPAY SUCH OUTSTANDING DEBT.
   5. DEFAULT. WITHIN SUCH TIME AS THE COMMISSIONER SHALL  BY  REGULATION
 PROVIDE, A RECIPIENT OF AN AWARD SHALL HAVE PRACTICED AS A TEACHER IN AN
 RURAL  AREA IN THE STATE. IF A RECIPIENT FAILS TO COMPLY FULLY WITH SUCH
 CONDITIONS, THE PRESIDENT SHALL BE ENTITLED TO RECEIVE FROM SUCH RECIPI-
 ENT AN AMOUNT TO BE DETERMINED BY THE FORMULA:
   A = 2B(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 SERVICES  ACTUALLY  RENDERED  BY  THE
 RECIPIENT.  ANY  AMOUNT WHICH THE PRESIDENT IS ENTITLED TO RECOVER UNDER
 THIS SUBDIVISION SHALL BE PAID WITHIN THE FIVE-YEAR PERIOD BEGINNING  ON
 THE  DATE  THAT  THE RECIPIENT FAILED TO COMPLY WITH THIS CONDITION. ANY
 OBLIGATION TO COMPLY WITH SUCH PROVISIONS SHALL  BE  CANCELED  UPON  THE
 DEATH OF THE RECIPIENT. THE COMMISSIONER SHALL PROMULGATE REGULATIONS TO
 PROVIDE  FOR  THE  WAIVER OR SUSPENSION OF ANY FINANCIAL OBLIGATION WHEN
 COMPLIANCE WOULD INVOLVE EXTREME HARDSHIP.
   6. RULES. THE COMMISSIONER SHALL  CONSULT  WITH  THE  NEW  YORK  STATE
 CENTER FOR RURAL SCHOOLS, AND THE COMMISSIONER, IN COORDINATION WITH THE
 CORPORATION,  SHALL  PROMULGATE REGULATIONS TO EFFECTUATE THE PROVISIONS
 AND PURPOSES OF THIS SECTION.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law; provided, however, that effective immediate-
 ly, the addition, amendment and/or repeal of any criteria, rule or regu-
 lation necessary for the implementation of this  act  on  its  effective
 date  are  authorized and directed to be made and completed on or before
 such effective date.