LRB-3949/1
GMM:wlj:pg
2007 - 2008 LEGISLATURE
February 21, 2008 - Introduced by Representatives Black, Berceau, Sheridan,
Sinicki, Pocan, Bies, Gunderson, Grigsby
and Molepske, cosponsored by
Senator Lassa. Referred to Committee on Colleges and Universities.
AB867,1,3 1An Act to create 20.235 (1) (cw) and 39.385 of the statutes; relating to: child
2care worker loan repayment assistance, granting rule-making authority, and
3making an appropriation.
Analysis by the Legislative Reference Bureau
This bill creates a program of child care worker loan repayment assistance to
be administered by the Higher Educational Aids Board (HEAB). Under the program,
HEAB reimburses a child care worker for 10 percent of the outstanding principal
amount of the child care worker's student loans or $1,000, whichever is less, after the
child care worker has been continuously employed full time in this state for at least
12 months as a child care worker and after each additional 12-month period of such
continuous full-time employment, subject to a maximum of five assistance
payments, if all of the following apply:
1. The child care worker graduated on or after May 1, 2008, with a degree in
an area relating to early childhood education.
2. The child care worker is currently repaying a student loan and is not in
default on repayment of the loan.
3. The child care worker has submitted to HEAB a statement by the lender
certifying the outstanding principal amount of the student loan and that the child
care worker is not in default on repayment of the loan.

For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB867, s. 1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF - See PDF for table PDF
AB867, s. 2 3Section 2. 20.235 (1) (cw) of the statutes is created to read:
AB867,2,64 20.235 (1) (cw) Child care worker loan repayment assistance. Biennially, the
5amounts in the schedule for child care worker loan repayment assistance under s.
639.385.
AB867, s. 3 7Section 3. 39.385 of the statutes is created to read:
AB867,2,11 839.385 Child care worker loan repayment assistance. (1) Criteria. The
9board shall administer a loan repayment assistance program for resident child care
10workers. A child care worker is eligible for loan repayment assistance under the
11program if the child care worker meets all of the following requirements:
AB867,2,1512 (a) The child care worker has graduated on or after May 1, 2008, with a
13bachelor's degree from an institution of higher education, as defined in s. 39.32 (1)
14(a), located in this state, or a degree under an associate degree program, as defined
15in s. 38.01 (1), in an area relating to early childhood education.
AB867,3,2
1(b) The child care worker is currently repaying a student loan and is not in
2default on repayment of that loan, as determined by the applicable lender.
AB867,3,73 (c) The child care worker submits to the board, on a form prescribed by the
4board, a statement by the lender, dated within 30 days before the date on which the
5statement is submitted to the board, certifying the outstanding principal amount of
6the student loan and that the loan repayment status of the borrower is not in default
7on repayment of the loan.
AB867,3,15 8(2) Loan repayment assistance. From the appropriation account under s.
920.235 (1) (cw), the board, subject to the availability of funds, shall reimburse a child
10care worker who is eligible under sub. (1) for 10 percent of the outstanding principal
11amount of the student loans of the child care worker or in the amount of $1,000,
12whichever is less, after the child care worker has been continuously employed full
13time in this state for at least 12 months as a child care worker and after each
14additional 12-month period of such continuous full-time employment, subject to a
15maximum of 5 loan repayment assistance payments under this section.
AB867,3,22 16(3) Rules. The board shall promulgate rules to implement and administer this
17section, including rules establishing the criteria and procedures for loan repayment
18assistance and, after first consulting with the department of health and family
19services, rules defining "child care worker" for the purposes of this section. The
20definition of "child care worker" shall include any child care position specified in
21rules of the department of health and family services relating to child day care and
22family day care centers for children.
AB867, s. 4 23Section 4. Fiscal changes.
AB867,4,424 (1) Child care worker loan repayment assistance. In the schedule under
25section 20.005 (3) of the statutes for the appropriation to the higher educational aids

1board under section 20.235 (2) (aa) of the statutes, as affected by the acts of 2007, the
2dollar amount is increased by $6,000 for fiscal year 2008-09 to cover costs incurred
3in administering child care worker loan repayment assistance under section 39.385
4of the statutes, as created by this act.
AB867, s. 5 5Section 5. Effective date.
AB867,4,66 (1) This act takes effect on July 1, 2008.
AB867,4,77 (End)
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