HB 1576-FN-A - AS INTRODUCED
HOUSE BILL 1576-FN-A
SPONSORS: Rep. Jurius, Belk. 2
COMMITTEE: Labor, Industrial and Rehabilitative Services
This bill establishes the targeted workforce development program and workforce development fund.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty
Be it Enacted by the Senate and House of Representatives in General Court convened:
[REGENERATIVE MANUFACTURING] WORKFORCE DEVELOPMENT
AND STUDENT DEBT RELIEF [PROGRAM] PROGRAMS
Regenerative Manufacturing Workforce Development Program
Targeted Workforce Development Program
162-T:6 Targeted Workforce Development Program; Student Debt Relief.
I. In addition to the powers established under RSA 162-T:1 - RSA 162-T:5, the business finance authority may expend or loan money upon such terms and conditions as prescribed by the authority to acquire loans or other evidences of education indebtedness incurred by persons for the purpose of financing postsecondary education and to provide for deferment or forgiveness of repayment of such education indebtedness pursuant to a program or programs established by the authority and approved by the governor and council pursuant to this subdivision.
II. Any student indebtedness that may be subject to a program or programs established by the authority under this subdivision shall meet the following minimum requirements:
(a) The person shall have achieved academic requirements such as graduate degrees or other evidence of academic achievement as has been determined by the authority.
(b) The person shall be employed to perform primarily activities within the industries which shall be determined from time to time by the division of economic development, with input and assistance from the council of partner agencies established under RSA 12-O:7 and other public and private organizations with whom it chooses to work, consistent with the 10-year economic development strategy and operating plan developed under RSA 12-O:24.
(c) The principal office at which such person is employed shall be located within New Hampshire.
(d) No forgiveness of student indebtedness shall be enforceable unless the person has been employed to perform primarily targeted activities at a location within New Hampshire for a minimum period of 5 years.
III. Prior to the expenditure or loan of any money under this section, the authority shall enter into one or more agreements with any person obligated to make payments under education indebtedness to provide for the conditions on which the expenditures, deferments, or forgiveness will be made, the terms of repayment of such expenditure or loan, the time and manner of such repayment, the form and amount of security if any, to be pledged to the authority for such repayment, and such other provisions as the authority may determine are necessary or desirable.
IV. The authority, to further its education indebtedness loan programs pursuant to this subdivision, may:
(a) Determine the nature of education indebtedness programs for eligible persons, including how such loans may be acquired and the mechanisms for deferral of payment or forgiveness with respect to such education indebtedness;
(b) Enter into contracts with employers of persons who are subject to the programs established under this subdivision to assist in the administration of such programs;
(c) Enter into contracts for the administration or servicing of education indebtedness acquired pursuant to the programs established under this subdivision;
(d) Receive and accept from any public agency or any other source loans, grants, guarantees, or insurance with respect to education indebtedness and the programs established under this subdivision;
(e) Establish guidelines governing the actions of the authority with respect to the programs established under this chapter; and
(f) Exercise all powers incidental and necessary for the performance of the powers listed in this paragraph.
162-T:7 Workforce Development Fund and Subfunds Established.
I. There is established within the business finance authority a state targeted workforce development fund, which shall be held by the authority apart from all of its other funds, but which may be established as a subfund of a single trust that includes the state regenerative workforce development fund established pursuant to RSA 162-T:3. Annual state appropriations and other funds from state or federal sources, and any gifts, grants, or donations, shall be credited to the fund. The state targeted workforce development fund shall be administered by the authority and shall be used for the sole purposes of carrying out the purposes of this subdivision. The authority shall invest the fund in accordance with RSA 6:8. Any earnings on fund moneys shall be added to the fund. All moneys in the fund shall be nonlapsing and shall be continually appropriated to the fund for the purpose of providing targeted workforce employee educational debt relief as provided in this section.
II. The authority may create subfunds or trusts of the state targeted workforce development fund, which shall be held by the authority apart from all of its other funds, which may be deemed irrevocably pledged to secure the repayment of state workforce development bonds issued under RSA 162-T:4. If such a pledged amount or amounts are called upon to be honored, the authority shall draw upon such fund for the purpose of honoring such pledge.
162-T:8 Reporting and Approval Regarding Targeted Workforce Development Program. The authority shall design the terms, conditions, and provisions of the targeted workforce development program authorized by this subdivision. The authority shall deliver to the fiscal committee of the general court a report on the progress of its efforts to develop such terms, conditions, and provisions as required in this chapter. The authority shall present the program to the fiscal committee of the general court for approval prior to taking any action to implement a final targeted workforce development program.
6:38 New Hampshire Excellence in Higher Education Endowment Trust Fund Established.
I. There is hereby established in the office of the treasurer the New Hampshire excellence in higher education endowment trust fund which shall be kept distinct and separate from all other funds. Annual assessments less any annual administrative costs received from the New Hampshire college tuition savings plan established under RSA 195-H shall be credited to the trust fund to provide [scholarships for the benefit of residents of the state pursuing programs of study at eligible educational institutions within the state] support for the targeted workforce development program established in RSA 162-T.
II. The state treasurer shall be the trustee of the trust fund established in this chapter, and shall invest the trust fund in accordance with RSA 6:8. Any earnings on trust fund moneys shall be added to the trust fund.
III. [All moneys in the trust fund shall be nonlapsing and shall be continually appropriated to the commission for purposes of providing education scholarships under this subdivision] Upon the close of the fiscal biennium, the state treasurer shall transfer any remaining balances of the trust fund to the business finance authority for the exclusive use in funding the targeted workforce development program established in RSA 162-T.
IV. Notwithstanding paragraph III of this section, no later than June 30, 2020, the state treasurer shall transfer any remaining balance in the trust fund to the governor’s scholarship fund established in RSA 4-C:32.
I.(a) There is established the New Hampshire college tuition savings plan advisory commission which shall ensure the proper administration and management of the savings plan. The advisory commission shall ensure that the savings plan complies with the requirements of section 529 of the Internal Revenue Code of 1986, as amended, and any related federal law applicable to the savings plan. The commission shall also be responsible for ensuring the proper administration, implementation, and management of the [New Hampshire excellence in higher education endowment trust fund established in RSA 6:38, and the] governor's scholarship program and fund established in RSA 4-C:31-34. The commission shall consist of the following members:
7 Repeal; College Tuition Savings Plan. RSA 195-H:3, VIII, relative to the college tuition savings plan advisory commission's rulemaking authority over the New Hampshire excellence in higher education endowment trust fund, is repealed.
8 College Tuition Savings Plan; Transfer of Rules. Any rules which are in effect on the effective date of this section for scholarships established under RSA 195-H are hereby transferred to the department of education and shall continue in effect and be enforced by the department of education until July 1, 2021, at which point all such rules shall expire.
HB 1576-FN-A- FISCAL NOTE
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
Estimated Increase / (Decrease)
[ ] General [ ] Education [ ] Highway [ X ] Other - Workforce development fund / NH Excellence in higher education endowment fund
This bill establishes the targeted workforce development program and workforce development fund to provide student debt relief to individuals employed by certain industries in the State. The program and the fund would be administered by the Business Finance Authority (BFA). The bill changes the purpose of the New Hampshire Excellence in Higher Education Endowment Trust Fund from providing scholarships to New Hampshire students, to supporting the targeted workforce development program and workforce development fund.
The State Treasury Department indicates, under current law, administrative assessments received from New Hampshire College Tuition Savings Plan ("529 Plan") participants fund two scholarship programs administered by the College Tuition Savings Plan Advisory Commission, the UNIQUE Annual Allocation Program and the UNIQUE Endowment Allocation Program. The bill would remove the responsibility of the Advisory Commission concerning administration of the Trust Fund, direct the Treasurer to transfer remaining balances in the trust fund to the BFA to fund the targeted workforce development program no later than June 30, 2020, and again at the close of the biennium. The balance in the Trust Fund as of June 30, 2019 would be transferred to the Governor's Scholarship Fund. The Treasury Department assumes the revenue and expenditure amounts would not change and the funds derived from the 529 Plan would still be credited to the Trust Fund, but would be expended for a different purpose. There would be no impact on county or local revenues and expenditures.
The Business Finance Authority indicates it's operations are not funded by the State operating budget, so any increase in the Authority's personnel costs related to the program would not have a state, county or local impact.
State Treasury and New Hampshire Business Finance Authority
|Jan. 15, 2020||House||Hearing|
|Jan. 23, 2020||House||Exec Session|
|Sept. 18, 2020||House||Exec Session|
|Jan. 8, 2020||Introduced 01/08/2020 and referred to Labor, Industrial and Rehabilitative Services HJ 1 P. 27|
|Jan. 15, 2020||Public Hearing: 01/15/2020 10:00 am LOB 307|
|Jan. 23, 2020||Executive Session: 01/23/2020 01:00 pm LOB 307|
|Committee Report: Refer for Interim Study (Vote 19-0; CC)|
|Feb. 6, 2020||Committee Report: Refer for Interim Study for 02/06/2020 (Vote 19-0; CC) HC 5 P. 3|
|Feb. 13, 2020||Committee Report: Refer for Interim Study for 02/13/2020 (Vote 19-0; CC) HC 5 P. 3|
|Feb. 13, 2020||Refer for Interim Study: MA VV 02/13/2020 HJ 3 P. 3|
|Sept. 18, 2020||Full Committee Work Session: 09/18/2020 10:00 am Members of the public may attend using this link: : https://www.zoom.us/j/97115570558 - Executive Session to Follow|