THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SIPTROTH, BELFANTI, BISHOP, CARROLL, COHEN, DeLUCA, FABRIZIO, GEIST, GRUCELA, HARHAI, HENNESSEY, HORNAMAN, JOHNSON, JOSEPHS, KORTZ, KOTIK, MANN, MURT, MYERS, PALLONE, READSHAW, REICHLEY, SCAVELLO, K. SMITH, J. TAYLOR, VULAKOVICH, WALKO AND YOUNGBLOOD, MARCH 12, 2009

REFERRED TO COMMITTEE ON EDUCATION, MARCH 12, 2009  

AN ACT

Establishing the Child Welfare Workers Loan Forgiveness Program

for Commonwealth residents who graduate from institutions of

higher education and apply their degrees to careers in child

welfare work.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Child Welfare

Workers Loan Forgiveness Act.

Section 2.  Declaration of purpose.

The primary purpose of the Child Welfare Loan Forgiveness

Program is to attract capable and promising students to the

child welfare profession and to increase employment and

retention of individuals who are working toward or who have

received either a bachelor's degree or a master's degree in

social work, psychology or sociology.

Section 3.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Certified child welfare employer."  An agency certified by

the Pennsylvania Higher Education Assistance Agency as employing

child welfare workers as provided for under section 4(c).

"Child welfare worker."  A staff person who holds a

bachelor's, master's or doctorate degree in the field of social

work, psychology or sociology and is employed by a public or

private agency serving dependent children or those children who

have been referred for child welfare services and who works in

any of the following functional areas: family preservation,

family support, children's protective services, including on-

call, investigative assessment and case planning and case

management, and foster care and adoption, including placement of

children, recruitment of families, licensing and adoption

assessment.

"PHEAA."  The Pennsylvania Higher Education Assistance

Agency.

"Program."  The Child Welfare Workers Loan Forgiveness

Program established under section 4.

"Qualified applicant."  A person who meets all of the

following criteria:

(1)  Is a resident of this Commonwealth.

(2)  Has successfully completed a bachelor's, master's or

doctorate degree in the field of social work, psychology or

sociology at an accredited institution of higher education.

(3)  Has been hired as a full-time employee of a

certified child welfare employer.

(4)  Has borrowed through and has a current outstanding

balance on a Federal Stafford, Graduate PLUS or consolidation

loan program administered by the Pennsylvania Higher

Education Assistance Agency.

Section 4.  Child Welfare Workers Loan Forgiveness Program.

(a)  Establishment.--The Child Welfare Workers Loan

Forgiveness Program is established. PHEAA shall administer the

program.

(b)  Nature of program.--For each year that a qualified

applicant is employed by a certified child welfare employer,

PHEAA may forgive a proportional part of the applicant's student

loan so that the loan may be partially or entirely forgiven.

(c)  Employer eligibility.--Eligible certified child welfare

employers for purposes of the program shall include county

children and youth agencies charged with enforcing 23 Pa.C.S.

Ch. 63 (relating to child protective services) and private

providers who serve youth who have been adjudicated dependent or

delinquent and other entities as determined by PHEAA.

(d)  Limitations.--

(1)  For qualified applicants with an undergraduate

degree, no more than $2,500 shall be forgiven in any one

year, and no more than $10,000 shall be forgiven for any one

qualified applicant.

(2)  For qualified applicants with both an undergraduate

degree and either a master's or doctorate degree, no more

than $5,000 shall be forgiven in any one year, and no more

than $20,000 shall be forgiven for any one qualified

applicant.

(3)  PHEAA shall establish procedures for making payments

to qualified applicants.

(4)  No qualified applicant may receive a larger amount

of forgiveness than the outstanding balance the applicant has

with the Federal Stafford, Graduate PLUS and consolidation

loan program administered by PHEAA.

(e)  Eligibility.--A qualified applicant shall be eligible

for loan forgiveness regardless of whether the applicant's

outstanding loan balance is acquired before or after the date of

the effective date of this section, and no loan forgiveness

shall be given for years of service before the date of this

section.

Section 5.  Qualifications for loan forgiveness awards.

(a)  Application.--PHEAA shall establish procedures for

qualified applicants to apply and be approved for participation

in the program.

(b)  Employment.--Recipients of loan forgiveness awards must

be full-time employees of a certified child welfare employer who

maintain satisfactory employment with the organization and agree

to continue employment with a certified child welfare employer

for at least three years after the end of their participation in

the program.

(c)  Documentation.--PHEAA may require qualified applicants

who are participating in the program to submit documentation in

order to maintain continued eligibility for the program.

Section 6.  Funding.

Loan forgiveness awards under this act may be made to the

extent that funds are appropriated by the General Assembly or

available from other sources and are sufficient to cover the

administration of the program. In the event that funding is

insufficient to fully fund administration and all eligible

applicants, priority shall be given to renewal applicants.

Thereafter, PHEAA shall utilize a random lottery system for

determining which applicants receive loan forgiveness awards.

Section 7.  Tax applicability.

Loan forgiveness awards shall not be considered taxable

income for purposes of Article III of the act of March 4, 1971

(P.L.6, No.2), known as the Tax Reform Code of 1971.

Section 8.  Annual report.

(a)  Development of report.--PHEAA shall publish a report by

October 1, 2010, and every year thereafter for the immediately

preceding fiscal year. The report shall provide information

regarding the operation of the program, including:

(1)  The number and amount of child welfare worker loan

forgiveness grants issued and renewed for qualified

applicants.

(2)  The number and type of enforcement actions taken by

the agency.

(b)  Submission.--The annual report shall be submitted to the

Governor, the chair and minority chair of the Appropriations

Committee of the Senate, the chair and minority chair of the

Appropriations Committee of the House of Representatives, the

chair and minority chair of the Education Committee of the

Senate, the chair and minority chair of the Education Committee

of the House of Representatives, the chair and minority chair of

the Public Health and Welfare Committee of the Senate and the

chair and minority chair of the Health and Human Services

Committee of the House of Representatives.

Section 9.  Responsibility of PHEAA.

PHEAA shall administer the program and shall adopt such

regulations, policies, procedures and forms as are necessary and

not inconsistent with the provisions of this act.

Section 10.  Effective date.

This act shall take effect in 60 days.