Emergency adoption is necessary to avoid an adverse impact on the processing of scholarship awards to eligible applicants and award payments to eligible recipients. This regulation implements a statutory student financial aid program that provides cost of attendance awards to be made to students pursuing their undergraduate or graduate degree from a college or university located in New York State beginning with the 2017-18 academic year. Decisions on applications for this program are typically made at the beginning of the academic year, which generally starts in August. Therefore, it is critical that the terms of this program as provided in the regulation be effective immediately in order for HESC to process applications so that recipients can be selected, and payments can be made on behalf of program recipients expeditiously. To accomplish this mandate, the statute further provides for HESC to promulgate emergency regulations to implement the program. For these reasons, compliance with section 202(1) of the State Administrative Procedure Act would be contrary to the public interest.

(1) “Approved program of study” shall mean those child welfare-related undergraduate and graduate degree programs designated by the corporation on an annual basis and published on the corporation’s website conducted by an institution situated in the State, which has been approved and operating in this State for at least one year, and has been approved for participation in federal student financial aid programs authorized by Title IV of the Higher Education Act of 1965, as amended.

(2) “Award” shall mean a New York State Child Welfare Worker Incentive Scholarship Program award pursuant to section 679-h of the New York State Education Law.

(3) “Child welfare worker” shall mean an individual who provides direct-care services to children and families at a voluntary not-for-profit child welfare agency in New York State licensed by the New York State Office of Children and Family Services.

(4) “Corporation” shall mean the New York State Higher Education Services Corporation.

(5) “Direct care services” shall mean the provision of programs and services to children and families that require some degree of interaction between the child/family and the child welfare worker. Such direct care services include, but are not limited to, assessments, home visits, or direct implementation care plans.

(6) “Full time basis” as required by Education Law, sections 679-h(2)(c) and 679-h(3)(a) shall mean employment as a child welfare worker, as defined in this section, for an average of 35 hours per week, or more, continuously over a calendar year, except for an allowable interruption of employment upon completion of an award recipient’s degree program.

(7) “Interruption of employment” shall mean an allowable temporary leave for a definitive length of time due to circumstances approved by the corporation, including, but not limited to, parental leave, medical leave, death of a family member, or military duty that exceeds forty-two calendar days, excluding legal holidays, regardless of whether such absence or leave is paid or unpaid.

(8) “Interruption of study” shall mean an allowable temporary leave for a definitive length of time due to circumstances approved by the corporation, including, but not limited to parental leave, medical leave, death of a family member, or military duty.

(9) “Non-direct care services” shall mean the provision of administrative and operational services in the child welfare sector.

(10) “Program” shall mean the New York State Child Welfare Worker Incentive Scholarship Program.

(11) “Qualified experience” as required by Education Law, section 679-h(2)(a) shall mean the provision of direct-care services or non-direct care services as defined in this section. Such qualified experience may be obtained through employment, training, or education.

(1) satisfy the requirements provided in section 679-h(2) of the Education Law;

(2) satisfy the requirements provided in section 661(4)(f) of the Education Law;

(3) be matriculated in an undergraduate or graduate degree program, on a full-time or part-time basis, at an institution of higher education located within New York State in an approved program of study. A recipient is not required to be employed at a voluntary not-for-profit child welfare agency in New York State licensed by the New York State Office of Children and Family Services for the duration of his or her enrollment in an approved program of study.

(4) maintain good academic standing as set forth in section 665(6) of the Education Law, except that recipients enrolled in a graduate program of study must maintain a cumulative grade point average of 2.0 or higher as of the date of certification by the institution.

(5) make satisfactory progress towards completing his or her degree program within a reasonable timeframe, as determined by the corporation.

(6) be in a non-default status on a student loan made under any statutory New York State or federal education loan program or repayment of any award made pursuant to article 14 of the Education Law; and

(7) be in compliance with the terms of any service condition imposed by an award made pursuant to article 14 of the Education Law.

(1) First priority shall be given to applicants who have received payment of an award for the academic year immediately preceding the academic year for which payment is sought including those who were subsequently granted an interruption in study by the corporation for the academic year immediately preceding the academic year for which payment is sought. If there are more applicants than available funds, recipients shall be chosen by lottery.

(2) Second priority shall be given to new applicants, within the remaining funds available for the program, if any. If there are more applicants than available funds, recipients shall be chosen by lottery.

(1) Applicants for an award shall apply for program eligibility at such times, on forms and in a manner prescribed by the corporation. The corporation may require applicants to provide additional documentation evidencing eligibility.

(2) Recipients of an award shall:

(i) execute a service contract prescribed by the corporation;

(ii) request payment at such times, on forms and in a manner specified by the corporation;

(iii) receive such awards for no more than: (A) two academic years for an associate’s degree; (B) four academic years for a bachelor’s degree or five academic years if the bachelor’s degree program normally requires five years; or (C) two academic years for a graduate degree. Notwithstanding, such duration may be extended for an allow interruption of study;

(iv) facilitate the submission of information from their employer attesting to the recipient’s job title, job duties, employment period, full time employment status, and any other information necessary for the corporation to determine compliance with the program’s employment requirements on forms and in a manner prescribed by the corporation; and

(v) provide any other information necessary for the corporation to determine compliance with the program’s requirements.

(1) The amount of the award shall be determined in accordance with section 679-h(4) of the Education Law.

(2) Disbursements shall be made each term to institutions, on behalf of recipients, within a reasonable time upon certification by the institution of the recipient’s eligibility for payment.

(3) Awards shall be reduced by the value of other educational grants and scholarships, as authorized by section 679-h(4) of the Education Law.

(1) All award monies received shall be converted to a 10-year student loan plus interest for recipients who fail to meet the statutory, regulatory, contractual, administrative or other requirements of this program.

(2) The interest rate for the life of the loan shall be fixed and equal to that published annually by the U.S. Department of Education for undergraduate unsubsidized Stafford loans at the time the recipient signed the service contract with the corporation.

(3) Interest shall begin to accrue on the day each award payment was disbursed to the institution.

(4) Interest shall be capitalized on the day the award recipient violates any term of the service contract or the date the corporation deems the recipient was no longer able or willing to perform the terms of the service contract. Interest on this capitalized amount shall continue to accrue and be calculated using simple interest until the amount is paid in full.

(5) Where a recipient has demonstrated extreme hardship as a result of a disability, labor market conditions, or other such circumstances, the corporation may, in its discretion, postpone converting the award to a student loan, temporarily suspend repayment of the amount owed, prorate the amount owed commensurate with service completed, discharge the amount owed, or take such other appropriate action.

Statutory authority:

The New York State Higher Education Services Corporation’s (“HESC”) statutory authority to promulgate regulations and administer the New York State Child Welfare Worker Incentive Scholarship Program (“Program”) is codified within Article 14 of the Education Law. In particular, Section 2 of Part MMM of Chapter 59 of the Laws of 2017 created the Program by adding a new section 679-h to the Education Law. Pursuant to subdivision 9 of section 679-h of the Education Law, HESC is required to promulgate rules and regulations for the administration of this Program.

Pursuant to Education Law § 652(2), HESC was established for the purpose of improving the post-secondary educational opportunities of eligible students through the centralized administration of New York State financial aid programs and coordinating the State’s administrative effort in student financial aid programs with those of other levels of government.

In addition, Education Law § 653(9) empowers HESC’s Board of Trustees to perform such other acts as may be necessary or appropriate to carry out the objects and purposes of the corporation including the promulgation of rules and regulations.

HESC’s President is authorized, under Education Law § 655(4), to propose rules and regulations, subject to approval by the Board of Trustees, governing, among other things, the application for and the granting and administration of student aid and loan programs; the repayment of loans or the guarantee of loans made by HESC; and administrative functions in support of State student aid programs. Also, consistent with Education Law § 655(9), HESC’s President is authorized to receive assistance from any Division, Department or Agency of the State in order to properly carry out his or her powers, duties and functions. Finally, Education Law § 655(12) provides HESC’s President with the authority to perform such other acts as may be necessary or appropriate to carry out effectively the general objects and purposes of HESC.

Legislative objectives:

This Program was created to enhance opportunities for committed child welfare workers in New York State by providing cost of attendance scholarship awards to support continued professional and skills development.

Needs and benefits:

New York State law provides various scholarship programs to attract and retain individuals in a needed area or profession. Providing the opportunity for affordable higher education through cost of attendance scholarship awards to current child welfare workers serves to help address the need to retain and promote those committed to serving communities in the not-for-profit sector.

According to the Council of Family and Child Caring Agencies (COFCCA), the landscape of the child welfare system in New York State has changed dramatically. With the State’s focus on community based prevention services and efforts to preserve families, child welfare agencies are now providing services to the more vulnerable populations of children and families. As a result, there is a greater need for skilled child care workers.

COFCCA reports that jobs in the child welfare sector are among the lowest paying jobs across the State. As a result, this sector has a difficult time recruiting and retaining employees. The current annual turnover rate for this sector is approximately 33 percent. While there are career track opportunities and potential for advancement, the high cost of college makes it difficult for workers to advance their education. Child welfare agencies have a growing need for qualified individuals who have the education, training, and experience to fill the needs of this sector.

Costs:

a. There are no application fees, processing fees, or other costs to the applicants of this Program.

b. The estimated cost to the agency for the implementation of, or continuing compliance with this rule is $436,875.

c. It is anticipated that there will be no costs to local governments for the implementation of, or continuing compliance with, this rule.

d. Costs to the State shall not exceed available New York State budget appropriations for the Program. The 2017-18 State Budget contained an appropriation for this Program in the sum of $50,000.

Local government mandates:

No program, service, duty or responsibility will be imposed by this rule upon any county, city, town, village, school district, fire district or other special district.

Paperwork:

This proposal will require applicants to file an electronic web application, together with supporting documentation, for eligibility. Each year recipients will file an electronic request for payment together with supporting documentation for up to five years of eligibility. Recipients are required to sign a contract for services in exchange for an award. Recipients must submit annual status reports until a final disposition is reached in accordance with the written contract.

Duplication:

No relevant rules or other relevant requirements duplicating, overlapping, or conflicting with this rule were identified.

Alternatives:

Given the statutory language as set forth in section 679-h(9) of the Education Law, a “no action” alternative was not an option.

Federal standards:

This proposal does not exceed any minimum standards of the Federal government.

Compliance schedule:

The agency will be able to comply with the regulation immediately upon its adoption.

This statement is being submitted pursuant to subdivision (3) of section 202-b of the State Administrative Procedure Act and in support of the New York State Higher Education Services Corporation’s (HESC) Notice of Emergency Adoption and Proposed Rule Making seeking to add a new section 2201.23 to Title 8 of the Official Compilation of Codes, Rules and Regulations of the State of New York.

It is apparent from the nature and purpose of this rule that it will not have a negative impact on small businesses or local governments. HESC finds that this rule will not impose any compliance requirement or adverse economic impact on small businesses or local governments. Rather, it has potential positive impacts inasmuch as it implements a statutory student financial aid program that provides cost of attendance awards to current child welfare workers pursuing undergraduate or graduate degrees at New York State colleges that will enhance their ability to work in voluntary not-for-profit child welfare agencies in New York State. Upon completion of their degree program, recipients are required to work as child welfare workers in voluntary not-for-profit child welfare agencies in New York State for five years and maintain residency in the State for such period of employment. Providing these benefits will encourage individuals to continue employment in the child welfare sector throughout New York State, which will provide an economic benefit to the State’s small businesses and local governments as well.

This statement is being submitted pursuant to subdivision (4) of section 202-bb of the State Administrative Procedure Act and in support of the New York State Higher Education Services Corporation’s Notice of Emergency Adoption and Proposed Rule Making seeking to add new section 2201.23 to Title 8 of the Official Compilation of Codes, Rules and Regulations of the State of New York.

HESC finds that this rule will not impose any reporting, record keeping or other compliance requirements on public or private entities in rural areas. Rather, it has potential positive impacts inasmuch as it implements a statutory student financial aid program that provides cost of attendance awards to current child welfare workers pursuing undergraduate or graduate degrees at New York State colleges that will enhance their ability to work in voluntary not-for-profit child welfare agencies in New York State. Upon completion of their degree program, recipients are required to work as child welfare workers in voluntary not-for-profit child welfare agencies in New York State for five years and maintain residency in the State for such period of employment. Providing these benefits will encourage individuals to continue employment in the child welfare sector benefitting rural communities throughout New York State.

This statement is being submitted pursuant to subdivision (2) of section 201-a of the State Administrative Procedure Act and in support of the New York State Higher Education Services Corporation’s Notice of Emergency Adoption and Proposed Rule Making seeking to add new section 2201.23 to Title 8 of the Official Compilation of Codes, Rules and Regulations of the State of New York.

It is apparent from the nature and purpose of this rule that it will not have a negative impact on jobs or employment opportunities. Rather, it has potential positive impacts inasmuch as it implements a statutory student financial aid program that provides cost of attendance awards to current child welfare workers pursuing undergraduate or graduate degrees at New York State colleges that will enhance their ability to work in voluntary not-for-profit child welfare agencies in New York State. Upon completion of their degree program, recipients are required to work as child welfare workers in voluntary not-for-profit child welfare agencies in New York State for five years and maintain residency in the State for such period of employment. Providing these benefits will encourage individuals to continue employment in the child welfare sector throughout New York State.