2005 Legislation
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HOUSE BILL NO. 18 – Students/loan forgiveness/eligiblty

HOUSE BILL NO. 18

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Bill Status



H0018..........................................................by EDUCATION
STUDENTS - LOAN FORGIVENESS - Amends existing law to revise eligibility for
application to the student education incentive loan forgiveness contract;
to authorize award of unused contracts; and to designate Eastern Idaho
Technical College as a participating institution.
                                                                        
01/20    House intro - 1st rdg - to printing
01/21    Rpt prt - to Educ
02/21    Rpt out - rec d/p - to 2nd rdg
02/22    2nd rdg - to 3rd rdg
02/28    3rd rdg - PASSED - 67-0-3
      AYES -- Anderson, Andrus, Barraclough, Barrett, Bastian, Bayer,
      Bedke, Bell, Bilbao, Black, Block, Boe, Bolz, Bradford, Cannon,
      Chadderdon, Clark, Collins, Crow, Deal, Denney, Edmunson, Ellsworth,
      Eskridge, Field(18), Field(23), Garrett, Hart, Harwood, Henbest,
      Henderson, Jaquet, Jones, Kemp, Lake, LeFavour, Loertscher, Martinez,
      Mathews, McGeachin, McKague, Miller, Mitchell, Nielsen, Nonini,
      Pasley-Stuart, Pence, Raybould, Ring, Ringo, Roberts, Rusche,
      Rydalch, Sayler, Shepherd(2), Shepherd(8), Shirley, Skippen,
      Smith(30), Smith(24), Smylie, Snodgrass, Stevenson, Trail, Wills,
      Wood, Mr. Speaker
      NAYS -- None
      Absent and excused -- Moyle, Sali, Schaefer
    Floor Sponsor - Nielsen
    Title apvd - to Senate
03/01    Senate intro - 1st rdg - to Educ
03/15    Rpt out - rec d/p - to 2nd rdg
03/16    2nd rdg - to 3rd rdg
03/21    3rd rdg - PASSED - 31-0-3, 1 vacancy
      AYES -- Andreason, Brandt, Broadsword, Bunderson, Burkett,
      Burtenshaw, Cameron, Compton, Corder, Darrington, Davis, Gannon,
      Geddes, Goedde, Hill, Jorgenson, Kelly, Keough, Langhorst, Little,
      Lodge, Marley, McGee, McKenzie, Pearce, Richardson, Schroeder,
      Stegner, Stennett, Sweet, Williams
      NAYS -- None
      Absent and excused -- Coiner, Malepeai, Werk, (District 21 seat
      vacant)
    Floor Sponsor - Gannon
    Title apvd - to House
03/22    To enrol
03/23    Rpt enrol - Sp signed
03/24    Pres signed - To Governor
03/28    Governor signed
         Session Law Chapter 173
         Effective: 07/01/05

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-eighth Legislature                   First Regular Session - 2005
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 18
                                                                        
                                   BY EDUCATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO STUDENT EDUCATION INCENTIVE LOAN FORGIVENESS  CONTRACTS;  AMENDING
  3        SECTION  33-3722, IDAHO CODE, TO REVISE ELIGIBILITY FOR APPLICATION TO THE
  4        STUDENT EDUCATION INCENTIVE LOAN FORGIVENESS CONTRACT, TO AUTHORIZE  AWARD
  5        OF  UNUSED CONTRACTS AND TO DESIGNATE EASTERN IDAHO TECHNICAL COLLEGE AS A
  6        PARTICIPATING INSTITUTION AND TO MAKE A TECHNICAL CHANGE.
                                                                        
  7    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  8        SECTION 1.  That Section 33-3722, Idaho Code, be, and the same  is  hereby
  9    amended to read as follows:
                                                                        
 10        33-3722.  STUDENT EDUCATION INCENTIVE LOAN FORGIVENESS CONTRACT. (1) It is
 11    hereby  declared  that  it  is  in the public interest to encourage and assist
 12    individuals who wish to pursue  a  teaching  career  or  professional  nursing
 13    career  within  this state to enroll in an Idaho postsecondary institution and
 14    to work in Idaho.
 15        (2)  Any Idaho student pursuing a teaching career may sign a loan forgive-
 16    ness contract and promissory note for payment of all  full-time  undergraduate
 17    matriculation,  facility  and activity fees at any Idaho institution of higher
 18    learning who:
 19        (a)  Has graduated from a secondary school in Idaho  within  the  previous
 20        two (2) years; and
 21        (b)  Is  academically  situated  within the upper fifteen percent (15%) of
 22        his graduating class based on a ranking of  all  students  in  that  class
 23        according  to  grade  point average or has earned a cumulative grade point
 24        average of 3.0 or higher; and
 25        (c)  Will maintain full-time student status and  shall  maintain  a  grade
 26        point  average of 3.0 or better in the first two (2) semesters and for the
 27        remaining semesters; and
 28        (db)  Will pursue a program of study which will  qualify  the  student  to
 29        receive an Idaho teaching certificate upon completion of his studies; and
 30        (ec)  Will  pursue a teaching career within the state of Idaho for a mini-
 31        mum of two (2) years, which time requirement will commence upon  obtaining
 32        a teaching position.
 33        (3)  Any  Idaho student pursuing a licensed nursing career may sign a loan
 34    forgiveness contract and promissory note for payment of all undergraduate  ma-
 35    triculation,  facility  and  activity  fees at any Idaho institution of higher
 36    learning who:
 37        (a)  Will maintain full-time student status and  shall  maintain  a  grade
 38        point  average of 3.0 or better in the first two (2) semesters and for the
 39        remaining semesters; and
 40        (b)  Will pursue a program of study which  will  qualify  the  student  to
 41        write  the licensure examination approved by the board of nursing for reg-
 42        istered nurse upon completion of his studies; and
 43        (c)  Will pursue a licensed professional nursing career within  the  state
                                                                        
                                           2
                                                                        
  1        of  Idaho for a minimum of two (2) years, which time requirement will com-
  2        mence within  one  (1)  year  after  a  professional  nursing  license  is
  3        obtained.
  4        (4)  Availability  of  student  education  incentive loan forgiveness con-
  5    tracts for potential teachers will be limited to sixteen (16) each year,  with
  6    three  (3) to be let by the University of Idaho, three (3) by Boise State Uni-
  7    versity, three (3) by Idaho State University, three (3) by Lewis  Clark  State
  8    College, two (2) by North Idaho College and two (2) by the College of Southern
  9    Idaho;  for potential registered nurses, contracts will be limited to thirteen
 10    (13) each year, with three (3) to be let by Boise State University, three  (3)
 11    by  Idaho State University, three (3) by Lewis Clark State College, two (2) by
 12    North Idaho College and two (2) by the College of Southern Idaho.
 13        (a)  Preference in selecting potential registered nurses will be given  to
 14        applicants who indicate willingness to practice in rural Idaho.
 15        (b)  The  length  of  each contract and promissory note shall not exceed a
 16        maximum of eight (8) years, and the beginning  date  and  expiration  date
 17        shall be specified in each contract.
 18        (5)  The  state  board of education may reassign unused contracts to other
 19    participating institutions. For purposes of reassignment of unused  contracts,
 20    Eastern  Idaho Technical College may be considered as a participating institu-
 21    tion and may be awarded student education incentive loan forgiveness contracts
 22    for potential registered nurses.
 23        (6)  The student loan office of each institution  of  higher  learning  is
 24    directed  to  administer  the loan forgiveness program provisions of this sec-
 25    tion, including the supplying of all necessary forms and the verifying, before
 26    each registration and at the expiration of the contract, of each person's com-
 27    pliance with the terms of the contract and collect and account for any  neces-
 28    sary  repayment  of funds. Upon successful completion of the terms of the con-
 29    tract, the promissory note shall be forgiven. The  state  board  of  education
 30    shall  annually  determine  the  interest  rate for new promissory notes. Loan
 31    repayments shall be allocated to support new student education incentive  loan
 32    forgiveness contracts.
 33        (67)  Any violation of the terms of the contract shall obligate the person
 34    to  repay  all  fees  which  the  person as a student was allowed to waive, as
 35    determined by the affected institution.
 36        (78)  Each affected institution shall in its preparation of future budgets
 37    include therein costs resultant from fee loss for reimbursement from appropri-
 38    ations of state funds.

Statement of Purpose / Fiscal Impact


                    STATEMENT  OF  PURPOSE
                          RS 14400C2

The current statute sets the number of potential teacher (16) and 
potential nurse (13) scholarships and then directs the number at 
each participating institution.   Currently, if one of the state 
institutions is not able to use the contract, or chooses not to 
participate in the program, the contract goes unused.  This 
legislation provides the Office of the State Board of Education 
the ability to redistribute the unused contracts and allow 
Easatern Idaho Technical College to be a participatng institution. 
 Further, the current statute requires that potential teachers be 
recent graduates from a postsecondary school in Idaho within the 
previous two (2) years.  Because they may not be accepted into the 
teacher program until the junior year, this hinders some students 
from accepting the contracts.  This legislation amends the 
language to remove or expand this time limit, which would allow 
more students to be eligible for consideration. 


                         FISCAL  IMPACT

There are no additional funds anticipated with this action.



CONTACT	
Name:		Dana Kelly
Agency:		Office of the State Board of Education
Phone:		332-1574

STATEMENT OF PURPOSE/FISCAL NOTE                    H 18