2015 -- H 6089

========

LC002445

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

____________

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT

     Introduced By: Representatives Blazejewski, Maldonado, Regunberg, Kazarian, and

     Date Introduced: April 16, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 42 of the General Laws entitled "STATE AFFAIRS AND

GOVERNMENT" is hereby amended by adding thereto the following chapter:

CHAPTER 64.20

STAY INVESTED IN RI FUND

     42-64.20-1. Short title. -- This chapter shall be known and may be cited as the "Stay

Invested in RI Fund."

     42-64.20-2. Legislative findings. -- The general assembly finds and declares:

     (1) A well-educated citizenry is critical to this state's ability to compete in the national

and global economies.

     (2) Higher education both benefits individual students and is a public good benefitting the

state as a whole.

     (3) Excessive student loan debt is impeding economic growth in this state. Faced with

excessive repayment burdens, many individuals are unable to start businesses, invest or buy

homes, and may be forced to leave the state in search of higher paying jobs elsewhere.

     (4) Relieving student loan debt would give these individuals greater control over their

earnings, would increase entrepreneurship and demand for goods and services, and would enable

employers in this state to recruit and retain graduates in the fields of science, technology,

engineering and mathematics.

     (5) The stay invested in RI fund is designed to achieve the following goals:

     (i) Promote economic opportunity for people in this state by ensuring access to the

training and higher education that higher-paying jobs require;

     (ii) Bring more and higher-paying jobs to this state by increasing the skill level of this

state's workforce;

     (iii) Offer educational opportunity and retraining to individuals impacted by job loss,

workplace injury, disability or other hardship;

     (iv) Keep young people in the state through incentives for educational opportunity and

creation of more high-paying jobs;

     (v) Encourage an entrepreneurial economy in Rhode Island; and

     (vi) Accomplish all of the goals in this chapter with as little bureaucracy as possible.

     42-64.20-3. Definitions. -- As used in this chapter:

     (1) "Eligible graduate" means an individual who meets the eligibility requirements under

this chapter.

     (2) "Applicant" means an eligible graduate who applies for reimbursement of education

loan repayment expenses under this chapter.

     (3) "Reimbursement" means a reimbursement by the commerce corporation to an

applicant as provided under this chapter.

     (4) "Recipient" means an applicant who receives a reimbursement under this chapter.

     (5) "Commerce corporation" means the Rhode Island commerce corporation established

pursuant to chapter 64 of title 42.

     (6) "Eligible expenses" or "education loan repayment expenses" means annual higher

education loan repayment expenses, including, without limitation, principal, interest and fees, as

may be applicable, incurred by an eligible graduate and which the eligible graduate is obligated to

repay for attendance at a post-secondary institution of higher learning.

     (7) "Eligibility period" means a term of up to four (4) consecutive service periods

beginning with the date that an eligible graduate receives initial notice of reimbursement under

this chapter and expiring at the conclusion of the fourth service period after such date specified.

     (8) "Eligibility requirements" means the following qualifications or criteria required for

an applicant to claim a reimbursement under this chapter:

     (i) That the applicant shall have graduated from an accredited two (2) year, four (4) year

or graduate post-secondary institution of higher learning with an associate's, bachelor's, graduate,

or post-graduate degree and at which the applicant incurred education loan repayment expenses;

     (ii) That the applicant shall be a full-time employee with a Rhode Island-based employer

located in this state throughout the eligibility period in one or more of the following covered

LC002445 - Page 2 of 7

fields: life, natural or environmental sciences; computer, information or software technology;

engineering or industrial design; or medicine or medical device technology; and

     (iii) That the applicant shall reside in this state throughout the eligibility period.

     (9) "Full-time employee" means a person who is self-employed or is employed by a

business for consideration for at least thirty-five (35) hours per week, or who renders any other

standard of service generally accepted by custom or practice as full-time employment, or who is

employed by a professional employer organization pursuant to an employee leasing agreement

between the business and the professional employer organization for at least thirty-five (35) hours

per week, or who renders any other standard of service generally accepted by custom or practice

as full-time employment, and whose wages are subject to withholding.

     (10) "Service period" means a twelve (12) month period beginning on the date that an

eligible graduate receives initial notice of reimbursement under this chapter.

     (11) "Student loan" means a loan to an individual by a public authority or private lender

to assist the individual to pay for tuition, books, and living expenses in order to attend a post-

secondary institution of higher learning.

     (12) "Rhode Island-based employer" means an employer having a principal place of

business and at least fifty-one percent (51%) of its employees are located in this state.

     (13) "Fund" refers to the "stay invested in RI fund" established pursuant to § 42-64.20-4.

     42-64.20-4. Establishment of fund; Purposes; Composition. -- (a) There is hereby

established the "stay invested in RI fund" (the "fund") to be administered by the commerce

corporation as set forth in this chapter.

     (b) The purpose of the fund is to expand employment opportunities in the state and to

retain talented individuals in the state by providing reimbursement of education loan repayment

expenses to applicants who meet the eligibility requirements under this chapter.

     (c) The fund shall consist of:

     (1) Money appropriated in the state budget to the fund;

     (2) Money made available to the fund through federal programs or private contributions;

and

     (3) Any other money made available to the fund.

     42-64.20-5. Administration. -- (a) Application.-- An eligible graduate claiming

reimbursement under this chapter shall submit to the commerce corporation an application in the

manner that the commerce corporation shall prescribe. The commerce corporation shall review

applications for eligibility in the chronological order that they are submitted in any calendar year.

     (b)(1) Upon receipt of a proper application from an eligible graduate who meets all of the

LC002445 - Page 3 of 7

eligibility requirements, the commerce corporation shall notify that applicant that it will

reimburse the eligible graduate for education loan repayment expenses during the service period

up to a maximum amount for each service period of one thousand dollars ($1,000) for an

associate's degree holder, four thousand dollars ($4,000) for a bachelor's degree holder, and six

thousand dollars ($6,000) for a graduate or post-graduate degree holder, but not to exceed the

education loan repayment expenses incurred by such recipient during each service period

completed, for up to four (4) consecutive service periods provided that the recipient continues to

meet the eligibility requirements throughout the eligibility period. The proceeds of reimbursement

under this chapter shall be used exclusively to reimburse the recipient for up to one hundred

percent (100%) of the education loan repayment expenses incurred by such eligible graduate

during each service period completed for up to four (4) consecutive service periods.

     (2) Annual payment under a reimbursement shall be made to an eligible graduate upon

proof that:

     (i) The eligible graduate actually incurred and paid such education loan repayment

expenses during the service period;

     (ii) The eligible graduate continues to meet the eligibility requirements throughout the

service period;

     (iii) The reimbursement shall not exceed the original loan amount plus any capitalized

interest less reimbursement previously claimed under this section; and

     (iv) An eligible graduate claiming reimbursement is current on his or her student loan

repayment obligations.

     (c) The commerce corporation shall not commit to overall reimbursements in excess of

the amount contained in the fund. The commerce corporation shall not issue initial reimbursement

notices in any calendar year committing to reimbursements in excess of twenty-five percent

(25%) of the fund for a calendar year in order to provide that recipients may receive

reimbursements for up to four (4) consecutive service periods as provided in this chapter.

     (d) The commerce corporation shall reserve seventy percent (70%) of the reimbursements

issued in a calendar year to applicants who are permanent residents of the state of Rhode Island or

who attended an institution of higher education located in Rhode Island when they incurred the

education loan expenses to be repaid.

     (e) In administering reimbursement, the commerce corporation shall:

     (1) Require suitable proof that an applicant meets the eligibility requirements for

reimbursement under this chapter;

     (2) Determine the contents of applications and other materials to be submitted in support

LC002445 - Page 4 of 7

of an application for reimbursement under this chapter; and

     (3) Collect reports and other information during the eligibility period for each

reimbursement to verify that a recipient continues to meet the eligibility requirements for

reimbursement.

     42-64.20-6. Reporting. -- (a) The commerce corporation shall require recipients to

submit annual reports, in such form and on such dates as the commerce corporation shall require,

in order to confirm that the recipient continues to meet all of the eligibility requirements of this

chapter and as a prerequisite to funding any reimbursement under this chapter.

     (b) Notwithstanding any other provision of law, no recipient shall receive a

reimbursement without first consenting to the public disclosure of the receipt of any

reimbursement given under this chapter. The commerce corporation shall annually publish a list

of recipients, their city or town of residence, their post-secondary institution of higher learning,

and their employer and their employer's city or town of their employer's principal place of

business on the commerce corporation website and in such other locations as it deems

appropriate.

     42-64.20-7. Remedies. -- (a) If an eligible graduate receiving a reimbursement under this

chapter violates any provision of this chapter or ceases to meet the eligibility requirements of this

chapter, the commerce corporation may, on reasonable notice:

     (1) Withhold further reimbursement until the recipient complies with the eligibility or

other requirements of the reimbursement; or

     (2) Terminate the reimbursement.

     42-64.20-8. Implementation guidelines, rules, regulations. -- (a) The commerce

corporation may adopt implementation guidelines, rules, and regulations pursuant to § 42-35-3 as

are necessary for the implementation of this chapter.

     (b) The commerce corporation shall adopt guidelines to assure integrity and eliminate

potential conflicts of interest in the issuing of reimbursements.

     42-64.20-9. Promotion by state agencies. -- (a) The commerce corporation and any

other agencies engaging in education-related outreach shall integrate promotion of the program

into existing educational opportunity outreach efforts to the extent possible in a manner consistent

with the scope of the program and its centrality to the state's efforts to raise educational

attainment, including, without limitation, promoting the program to Rhode Island permanent

residents who enroll in accredited Rhode Island colleges or universities and receive financial aid

in the form of student loans.

     42-64.20-10. Program integrity. -- Program integrity being of paramount importance,

LC002445 - Page 5 of 7

the commerce corporation shall establish procedures to ensure ongoing compliance with the terms

and conditions of the program established herein and to safeguard the expenditure of public

funds.

     SECTION 2. This act shall take effect upon passage.

========

LC002445

========

LC002445 - Page 6 of 7

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT

***

     This act would create the stay invested in RI fund to promote economic growth and job

creation in Rhode Island by attracting and retaining graduates through student loan debt relief in

the fields of science, technology, engineering, and mathematics.

     This act would take effect upon passage.

========

LC002445

========

LC002445 - Page 7 of 7