2.2-2674 - Workforce Training Access Program and Fund.
§ 2.2-2674. Workforce Training Access Program and Fund.
A. To facilitate the employment of residents of this Commonwealth, to providea qualified and competent workforce for Virginia's employers, and to promotethe industrial and economic development of the Commonwealth, which purposesare declared and determined to be public purposes, there is created theWorkforce Training Access Program, to be administered by the Secretary ofFinance as provided in this section.
B. From such funds as are appropriated for this purpose and from such gifts,donations, grants, bequests, and other funds as may be received on itsbehalf, there is created in the state treasury a special nonreverting fund tobe known as the Workforce Training Access Fund, hereafter referred to as"the Fund." The Fund shall be established on the books of the Comptroller.Interest earned on moneys in the Fund shall remain in the Fund and becredited to it. Any moneys remaining in the Fund, including interest thereon,at the end of each fiscal year shall not revert to the general fund but shallremain in the Fund.
The assets of the Fund shall be reserved, invested, and expended solelypursuant to and for the purposes of this section and shall not be expended orotherwise transferred or used by the Commonwealth for any other purpose.Expenditures and disbursements from the Fund shall be made by the StateTreasurer on warrants issued by the Comptroller upon written request signedby the Secretary of Finance only as a guaranty of payment of workforcetraining loans made by a national student loan marketing association pursuantto the provisions of this section.
C. The Secretary of Finance is authorized to enter into an agreement with anational student loan marketing association that shall originate, fund andservice workforce training loans in accordance with the provisions of thissection, to persons enrolled in workforce training courses and programs thatthe Statewide Workforce Training Council has certified to be responding tothe technology needs of business and industry in the Commonwealth pursuant to§ 2.2-2670.
The terms and conditions of such workforce training loans shall be consistentwith market conditions, and shall provide a repayment sufficient to amortizethe cost of the training over its expected useful life, not to exceed sixtymonths. No person may receive a workforce training loan or loans that wouldresult in that person owing an outstanding amount in excess of the tuitionand required fees for the certified workforce training course or program inwhich such person participates.
Only persons (i) who have established domicile in Virginia, as provided in §23-7.4 or (ii) who are employed in Virginia and whose employers make loanrepayments directly by payroll deduction or tuition assistance, beforeproviding for the training needs of other students in such certified courses,shall be eligible to receive workforce training loans. Nothing herein shallbe construed to impose an obligation upon an employer to make loan paymentsor to continue tuition assistance after termination of the student'semployment.
Consistent with Sections 10 and 11 of Article VIII of the Constitution ofVirginia, the assets of the Fund shall be pledged as a guaranty of payment ofworkforce training loans made by such national student loan marketingassociation and may be expended in satisfaction of the guaranty obligationsincurred thereby. Neither the Commonwealth, nor any of its agencies,political subdivisions, nor employees shall have any other or furtherliability in connection with such workforce training loans.
The agreement shall provide for annual evaluation by such national studentloan marketing association and the Secretary of Finance, or his designee, ofthe aggregate unpaid amount of workforce training loans that such nationalstudent loan marketing association shall make available hereunder. Suchassociation shall agree to make available workforce training loans in anaggregate unpaid amount of not less than five times the amount of all cash,cash equivalents, investments, and other assets that would then be availablein the Fund.
D. If such association ceases to make workforce training loans available asprovided under the agreement, the Fund will revert to the general fund of theCommonwealth, free of the restrictions imposed by this section, after paymentof or provision for any outstanding obligations that the Fund guarantees.
(1999, c. 794, § 9-329.6; 2001, c. 844.)