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                                 SENATE AMENDED
        PRIOR PRINTER'S NOS. 1935, 2796, 4243         PRINTER'S NO. 4496

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1530 Session of 2003


        INTRODUCED BY PETRONE, LEDERER, DeWEESE, HENNESSEY, BELARDI,
           BELFANTI, LESCOVITZ, DALEY, BISHOP, GORDNER, LAUGHLIN, KOTIK,
           CORRIGAN, GOODMAN, BEBKO-JONES, YUDICHAK, LEVDANSKY, CASORIO,
           HARPER, TANGRETTI, BROWNE, HARHAI, PALLONE, LEACH, SAINATO,
           McILHATTAN, WALKO, WATSON, GODSHALL, SOLOBAY, EACHUS,
           CAPPELLI, READSHAW, GERGELY, BUNT, MARKOSEK, WATERS, RUBLEY,
           MANN, HUTCHINSON, PISTELLA, HORSEY, KIRKLAND, PETRARCA,
           FREEMAN, STETLER, FRANKEL, DIVEN, WHEATLEY, MELIO, JOSEPHS,
           MANDERINO, O'NEILL, JAMES, THOMAS, GRUCELA, CAUSER, SURRA,
           CALTAGIRONE, WILT, TURZAI, MUSTIO AND DALLY, JUNE 4, 2003

        SENATOR RHOADES, EDUCATION, IN SENATE, AS AMENDED,
           OCTOBER 6, 2004

                                     AN ACT

     1  Providing for Commonwealth support for a Mental Health and        <--
     2     Mental Retardation Staff Member Loan Forgiveness Program for
     3     Commonwealth residents who graduate from institutions of
     4     higher education and who apply their degrees to careers as
     5     mental health and mental retardation staff members in this
     6     Commonwealth.
     7  PROVIDING FOR COMMONWEALTH SUPPORT FOR A MENTAL HEALTH AND        <--
     8     MENTAL RETARDATION STAFF MEMBER LOAN FORGIVENESS PROGRAM AND
     9     AN ALCOHOL AND DRUG ADDICTION COUNSELOR LOAN FORGIVENESS
    10     PROGRAM FOR COMMONWEALTH RESIDENTS WHO GRADUATE FROM
    11     INSTITUTIONS OF HIGHER EDUCATION AND WHO APPLY THEIR DEGREES
    12     TO CAREERS AS MENTAL HEALTH AND MENTAL RETARDATION STAFF
    13     MEMBERS IN THIS COMMONWEALTH.

    14     The General Assembly of the Commonwealth of Pennsylvania
    15  hereby enacts as follows:
    16  Section 1.  Short title.                                          <--
    17     This act shall be known and may be cited as the Mental Health
    18  and Mental Retardation Staff Member Loan Forgiveness Program


     1  Act.
     2  Section 2.  Findings and declaration of purpose.
     3     The General Assembly finds and declares that:
     4         (1)  Community-based mental health and mental retardation
     5     services and supports offer lifelong supports and
     6     opportunities for a meaningful quality of life, in
     7     fulfillment of Federal and State laws.
     8         (2)  A qualified and stable work force is the key to
     9     quality community mental health and mental retardation
    10     services.
    11         (3)  The pool of qualified staff members has diminished.
    12         (4)  The number of college students planning to enter the
    13     mental health and mental retardation profession appears to be
    14     inadequate to meet the need for staff members in this
    15     Commonwealth.
    16         (5)  Demand from industry and other opportunities attract
    17     potential staff members away from the profession.
    18         (6)  Payment of a portion of student loans for mental
    19     health and mental retardation staff members serves the
    20     important public purpose of encouraging new staff members to
    21     continue their careers in this Commonwealth.
    22  Section 3.  Definitions.
    23     The following words and phrases when used in this act shall
    24  have the meanings given to them in this section unless the
    25  context clearly indicates otherwise:
    26     "Agency."  The Pennsylvania Higher Education Assistance
    27  Agency.
    28     "Qualified applicant."  A person who meets all of the
    29  following criteria:
    30         (1)  Is a resident of this Commonwealth.
    20030H1530B4496                  - 2 -     

     1         (2)  Has successfully completed a two-year or four-year
     2     academic degree or diploma at an accredited college or
     3     university.
     4         (3)  Has been hired as a full-time staff member by a
     5     county mental health or mental retardation service agency
     6     within this Commonwealth through a merit or civil service
     7     system approved by the Secretary of Public Welfare or by a
     8     private provider that is under contract with either a county
     9     to provide mental health or mental retardation services or
    10     the Department of Public Welfare to provide behavioral health
    11     rehabilitation services to individuals with developmental
    12     disabilities.
    13         (4)  Has successfully completed both county and civil
    14     service probationary periods or, in the case of a contracted
    15     private provider, has successfully completed the provider's
    16     established probationary period.
    17         (5)  Performs staff duties at a county mental health or
    18     mental retardation service agency within this Commonwealth or
    19     at a private provider within this Commonwealth that is under
    20     contract with either a county to provide mental health or
    21     mental retardation services or the Department of Public
    22     Welfare to provide behavioral health rehabilitation services
    23     to individuals with developmental disabilities.
    24         (6)  Has borrowed through and has a current outstanding
    25     balance with the agency-administered Guaranteed Stafford or
    26     Consolidation Loan Programs.
    27         (7)  Has completed the first year of full-time employment
    28     as a staff member.
    29     "Staff member."  A caseworker, direct support professional,
    30  therapist, program coordinator or director.
    20030H1530B4496                  - 3 -     

     1  Section 4.  Mental Health and Mental Retardation Staff Member
     2                 Loan Forgiveness Program.
     3     (a)  Components.--
     4         (1)  A qualified applicant who is selected for the Mental
     5     Health and Mental Retardation Staff Member Loan Forgiveness
     6     Program in accordance with this act shall be eligible for
     7     payment by the agency of a portion of the debt incurred by
     8     the applicant through an agency-administered Guaranteed
     9     Stafford or Consolidation Loan Programs for the education
    10     necessary to be a mental health or mental retardation staff
    11     member in this Commonwealth.
    12         (2)  The agency may forgive a proportional part of the
    13     applicant's loan so that the loan may be entirely forgiven
    14     over four years of full-time staff work. No more than $5,000
    15     shall be forgiven in any year, and no more than $20,000 shall
    16     be forgiven for any applicant.
    17         (3)  Payments shall be made in accordance with the
    18     procedures established by the agency.
    19     (b)  Limitations.--A loan forgiveness award shall not be made
    20  for a loan that is in default at the time of the application.
    21  Loan forgiveness provided under the provisions of this act shall
    22  not be awarded to a recipient of another Commonwealth-provided
    23  loan forgiveness program concurrently.
    24  Section 5.  Loan forgiveness awards.
    25     Recipients of the loan forgiveness awards shall be those
    26  mental health and mental retardation staff members who are
    27  working in and who have received a satisfactory rating from
    28  either a county office of mental health or mental retardation
    29  service within this Commonwealth or a private provider within
    30  this Commonwealth under contract to either a county or the
    20030H1530B4496                  - 4 -     

     1  Department of Public Welfare. Mental health or mental
     2  retardation staff members shall be required to submit such
     3  documentation of continued eligibility as the agency may
     4  require. This documentation shall be presented to the agency in
     5  the form of a letter from the applicant's employer stating that
     6  the applicant is employed by the mental health or mental
     7  retardation service provider and that the applicant performs the
     8  applicant's duties in a satisfactory manner.
     9  Section 6.  Funding.
    10     Loan forgiveness awards may be made to the extent that funds
    11  are appropriated by the General Assembly and are sufficient to
    12  cover the administration of the program. In the event that
    13  funding is insufficient to fully fund administration and all
    14  eligible applicants, the agency shall utilize a random lottery
    15  system for determining which applicants receive loan forgiveness
    16  awards.
    17  Section 7.  Responsibility of agency.
    18     The agency shall administer the Mental Health and Mental
    19  Retardation Staff Member Loan Forgiveness Program established by
    20  this act and to adopt such regulations, policies, procedures and
    21  forms as are necessary and not inconsistent with the provisions
    22  of this act.
    23  Section 8.  Effective date.
    24     This act shall take effect in 60 days.
    25  SECTION 1.  SHORT TITLE.                                          <--
    26     THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE MENTAL HEALTH
    27  AND MENTAL RETARDATION STAFF MEMBER AND ALCOHOL AND DRUG
    28  ADDICTION COUNSELOR LOAN FORGIVENESS PROGRAMS ACT.
    29  SECTION 2.  FINDINGS AND DECLARATION OF PURPOSE.
    30     THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:
    20030H1530B4496                  - 5 -     

     1         (1)  COMMUNITY-BASED MENTAL HEALTH, MENTAL RETARDATION
     2     AND ALCOHOL AND DRUG ADDICTION TREATMENT SERVICES OFFER
     3     LIFELONG SUPPORTS AND OPPORTUNITIES FOR A MEANINGFUL QUALITY
     4     OF LIFE, IN FULFILLMENT OF FEDERAL AND STATE LAWS.
     5         (2)  TREATMENT OF ALCOHOL AND OTHER DRUG ADDICTION IS A
     6     CRUCIAL INVESTMENT IN OUR HEALTH CARE, IN THE STABILITY OF
     7     OUR FAMILIES AND IN PROTECTING THE PUBLIC SAFETY.
     8         (3)  A QUALIFIED AND STABLE WORK FORCE IS THE KEY TO
     9     QUALITY COMMUNITY MENTAL HEALTH AND MENTAL RETARDATION
    10     SERVICES AND TO QUALITY ALCOHOL AND DRUG ADDICTION COUNSELING
    11     SERVICES.
    12         (4)  THE POOL OF QUALIFIED STAFF MEMBERS HAS DIMINISHED.
    13         (5)  THE NUMBER OF COLLEGE STUDENTS PLANNING TO ENTER THE
    14     MENTAL HEALTH AND MENTAL RETARDATION OR THE ALCOHOL AND DRUG
    15     ADDICTION COUNSELING PROFESSIONS APPEARS TO BE INADEQUATE TO
    16     MEET THE NEED FOR STAFF MEMBERS IN THIS COMMONWEALTH.
    17         (6)  DEMAND FROM INDUSTRY AND OTHER OPPORTUNITIES ATTRACT
    18     POTENTIAL STAFF MEMBERS AWAY FROM THESE PROFESSIONS.
    19         (7)  PAYMENT OF A PORTION OF STUDENT LOANS FOR MENTAL
    20     HEALTH AND MENTAL RETARDATION STAFF MEMBERS OR ALCOHOL AND
    21     DRUG ADDICTION COUNSELORS SERVES THE IMPORTANT PUBLIC PURPOSE
    22     OF ENCOURAGING NEW STAFF MEMBERS TO PURSUE CAREERS IN THIS
    23     COMMONWEALTH.
    24  SECTION 3.  DEFINITIONS.
    25     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
    26  HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    27  CONTEXT CLEARLY INDICATES OTHERWISE:
    28     "AGENCY."  THE PENNSYLVANIA HIGHER EDUCATION ASSISTANCE
    29  AGENCY.
    30     "COUNSELOR."  A COUNSELOR ASSISTANT, COUNSELOR OR CLINICAL
    20030H1530B4496                  - 6 -     

     1  SUPERVISOR.
     2     "LICENSED ALCOHOL AND DRUG ADDICTION TREATMENT FACILITY."  AN
     3  ALCOHOL OR DRUG ADDICTION TREATMENT FACILITY LICENSED BY THE
     4  DEPARTMENT OF HEALTH TO PROVIDE ADDICTION TREATMENT SERVICES.
     5     "QUALIFIED ALCOHOL AND DRUG ADDICTION LOAN FORGIVENESS
     6  APPLICANT."  A PERSON WHO MEETS ALL OF THE FOLLOWING CRITERIA:
     7         (1)  IS A RESIDENT OF THIS COMMONWEALTH.
     8         (2)  HAS SUCCESSFULLY COMPLETED A TWO-YEAR OR FOUR-YEAR
     9     ACADEMIC DEGREE OR DIPLOMA AT AN ACCREDITED COLLEGE OR
    10     UNIVERSITY.
    11         (3)  HAS BEEN HIRED AS A FULL-TIME COUNSELOR BY A
    12     LICENSED ALCOHOL AND DRUG ADDICTION TREATMENT FACILITY.
    13         (4)  HAS SUCCESSFULLY COMPLETED THE FIRST SIX MONTHS OF
    14     FULL-TIME EMPLOYMENT AS A COUNSELOR AT A LICENSED ALCOHOL AND
    15     DRUG ADDICTION TREATMENT FACILITY AND REMAINS IN GOOD
    16     STANDING WITH THE FACILITY.
    17         (5)  HAS BORROWED THROUGH AND HAS A CURRENT OUTSTANDING
    18     BALANCE WITH GUARANTEED STAFFORD OR CONSOLIDATION LOAN
    19     PROGRAMS ADMINISTERED BY THE PENNSYLVANIA HIGHER EDUCATION
    20     ASSISTANCE AGENCY.
    21     "QUALIFIED APPLICANT."  A QUALIFIED MENTAL HEALTH AND MENTAL
    22  RETARDATION LOAN FORGIVENESS APPLICANT OR A QUALIFIED ALCOHOL
    23  AND DRUG ADDICTION LOAN FORGIVENESS APPLICANT.
    24     "QUALIFIED MENTAL HEALTH AND MENTAL RETARDATION LOAN
    25  FORGIVENESS APPLICANT."  A PERSON WHO MEETS ALL OF THE FOLLOWING
    26  CRITERIA:
    27         (1)  IS A RESIDENT OF THIS COMMONWEALTH.
    28         (2)  HAS SUCCESSFULLY COMPLETED A TWO-YEAR OR FOUR-YEAR
    29     ACADEMIC DEGREE OR DIPLOMA AT AN ACCREDITED COLLEGE OR
    30     UNIVERSITY.
    20030H1530B4496                  - 7 -     

     1         (3)  HAS BEEN HIRED AS A FULL-TIME STAFF MEMBER BY A
     2     COUNTY MENTAL HEALTH OR MENTAL RETARDATION SERVICE AGENCY
     3     WITHIN THIS COMMONWEALTH THROUGH A MERIT OR CIVIL SERVICE
     4     SYSTEM APPROVED BY THE SECRETARY OF PUBLIC WELFARE OR BY A
     5     PRIVATE PROVIDER THAT IS UNDER CONTRACT WITH EITHER A COUNTY
     6     TO PROVIDE MENTAL HEALTH OR MENTAL RETARDATION SERVICES OR
     7     THE DEPARTMENT OF PUBLIC WELFARE TO PROVIDE BEHAVIORAL HEALTH
     8     REHABILITATION SERVICES TO INDIVIDUALS WITH DEVELOPMENTAL
     9     DISABILITIES.
    10         (4)  HAS SUCCESSFULLY COMPLETED THE FIRST SIX MONTHS OF
    11     FULL-TIME EMPLOYMENT AS A STAFF MEMBER AT A COUNTY MENTAL
    12     HEALTH OR MENTAL RETARDATION SERVICE AGENCY OR A PRIVATE
    13     PROVIDER UNDER CONTRACT WITH EITHER A COUNTY OR THE
    14     DEPARTMENT OF PUBLIC WELFARE AND REMAINS IN GOOD STANDING
    15     WITH THE SERVICE AGENCY OR PRIVATE PROVIDER.
    16         (5)  PERFORMS STAFF DUTIES AT A COUNTY MENTAL HEALTH OR
    17     MENTAL RETARDATION SERVICE AGENCY WITHIN THIS COMMONWEALTH OR
    18     AT A PRIVATE PROVIDER WITHIN THIS COMMONWEALTH THAT IS UNDER
    19     CONTRACT WITH EITHER A COUNTY TO PROVIDE MENTAL HEALTH OR
    20     MENTAL RETARDATION SERVICES OR THE DEPARTMENT OF PUBLIC
    21     WELFARE TO PROVIDE BEHAVIORAL HEALTH REHABILITATION SERVICES
    22     TO INDIVIDUALS WITH DEVELOPMENTAL DISABILITIES.
    23         (6)  HAS BORROWED THROUGH AND HAS A CURRENT OUTSTANDING
    24     BALANCE WITH THE AGENCY-ADMINISTERED GUARANTEED STAFFORD OR
    25     CONSOLIDATION LOAN PROGRAMS ADMINISTERED BY THE PENNSYLVANIA
    26     HIGHER EDUCATION ASSISTANCE AGENCY.
    27     "STAFF MEMBER."  A CASEWORKER, DIRECT SUPPORT PROFESSIONAL,
    28  THERAPIST, PROGRAM COORDINATOR OR DIRECTOR.
    29  SECTION 4.  MENTAL HEALTH AND MENTAL RETARDATION STAFF MEMBER
    30                 LOAN FORGIVENESS PROGRAM.
    20030H1530B4496                  - 8 -     

     1     (A)  COMPONENTS.--COMPONENTS SHALL BE AS FOLLOWS:
     2         (1)  A QUALIFIED APPLICANT WHO IS SELECTED FOR THE MENTAL
     3     HEALTH AND MENTAL RETARDATION STAFF MEMBER LOAN FORGIVENESS
     4     PROGRAM IN ACCORDANCE WITH THIS ACT SHALL BE ELIGIBLE FOR
     5     PAYMENT BY THE AGENCY OF A PORTION OF THE DEBT INCURRED BY
     6     THE APPLICANT THROUGH THE AGENCY-ADMINISTERED GUARANTEED
     7     STAFFORD OR CONSOLIDATION LOAN PROGRAMS FOR THE EDUCATION
     8     NECESSARY TO BE A MENTAL HEALTH OR MENTAL RETARDATION STAFF
     9     MEMBER IN THIS COMMONWEALTH IF THE QUALIFIED APPLICANT ENTERS
    10     INTO A CONTRACT WITH THE AGENCY THAT REQUIRES THE QUALIFIED
    11     RECIPIENT TO REMAIN EMPLOYED AS A FULL-TIME MENTAL HEALTH OR
    12     MENTAL RETARDATION STAFF MEMBER IN THIS COMMONWEALTH FOR A
    13     PERIOD OF TWO CONSECUTIVE YEARS.
    14         (2)  THE AGENCY MAY FORGIVE A PROPORTIONAL PART OF THE
    15     APPLICANT'S LOAN SO THAT THE LOAN MAY BE ENTIRELY FORGIVEN
    16     OVER FOUR YEARS OF FULL-TIME STAFF WORK. NO MORE THAN $5,000
    17     SHALL BE FORGIVEN IN ANY YEAR, AND NO MORE THAN $20,000 SHALL
    18     BE FORGIVEN FOR ANY APPLICANT.
    19         (3)  PAYMENTS SHALL BE MADE IN ACCORDANCE WITH THE
    20     PROCEDURES ESTABLISHED BY THE AGENCY.
    21         (4)  THE CONTRACT ENTERED INTO WITH THE AGENCY PURSUANT
    22     TO PARAGRAPH (1) SHALL BE CONSIDERED A CONTRACT WITH THE
    23     COMMONWEALTH AND SHALL INCLUDE THE FOLLOWING TERMS:
    24             (I)  THE RECIPIENT SHALL AGREE TO BE EMPLOYED BY A
    25         COUNTY MENTAL HEALTH OR MENTAL RETARDATION SERVICE AGENCY
    26         LOCATED WITHIN THIS COMMONWEALTH OR BY A PRIVATE PROVIDER
    27         OF MENTAL HEALTH OR MENTAL RETARDATION SERVICES.
    28             (II)  THE RECIPIENT SHALL PERMIT THE AGENCY TO
    29         DETERMINE COMPLIANCE WITH THE WORK REQUIREMENT AND ALL
    30         OTHER TERMS OF THE CONTRACT.
    20030H1530B4496                  - 9 -     

     1             (III)  UPON THE RECIPIENT'S DEATH OR TOTAL OR
     2         PERMANENT DISABILITY, THE AGENCY SHALL NULLIFY THE
     3         SERVICE OBLIGATION OF THE RECIPIENT.
     4             (IV)  IF THE RECIPIENT IS CONVICTED OF OR PLEADS
     5         GUILTY OR NO CONTEST TO A FELONY, THE AGENCY SHALL HAVE
     6         THE AUTHORITY TO TERMINATE THE RECIPIENT'S SERVICE IN THE
     7         PROGRAM AND DEMAND REPAYMENT OF THE AMOUNT OF THE LOAN AS
     8         OF THE DATE OF THE CONVICTION.
     9             (V)  LOAN RECIPIENTS WHO FAIL TO BEGIN OR COMPLETE
    10         THE OBLIGATIONS CONTRACTED FOR SHALL PAY TO THE AGENCY
    11         THE AMOUNT OF THE LOAN RECEIVED UNDER THE TERMS OF THE
    12         CONTRACT PURSUANT TO THIS SECTION. PROVIDING FALSE
    13         INFORMATION OR MISREPRESENTATION ON AN APPLICATION OR
    14         VERIFICATION OF SERVICE SHALL BE DEEMED A DEFAULT.
    15         DETERMINATION AS TO THE TIME OF THE DEFAULT SHALL BE MADE
    16         BY THE AGENCY.
    17     (B)  LIMITATIONS.--A LOAN FORGIVENESS AWARD SHALL NOT BE MADE
    18  FOR A LOAN THAT IS IN DEFAULT AT THE TIME OF THE APPLICATION.
    19  LOAN FORGIVENESS PROVIDED UNDER THE PROVISIONS OF THIS ACT SHALL
    20  NOT BE AWARDED TO A RECIPIENT OF ANOTHER COMMONWEALTH-PROVIDED
    21  LOAN FORGIVENESS PROGRAM CONCURRENTLY.
    22  SECTION 5.  ALCOHOL AND DRUG ADDICTION COUNSELOR LOAN
    23                 FORGIVENESS PROGRAM.
    24     (A)  COMPONENTS.--COMPONENTS SHALL BE AS FOLLOWS:
    25         (1)  A QUALIFIED APPLICANT WHO IS SELECTED FOR THE
    26     ALCOHOL AND DRUG ADDICTION COUNSELOR LOAN FORGIVENESS PROGRAM
    27     IN ACCORDANCE WITH THIS ACT SHALL BE ELIGIBLE FOR PAYMENT BY
    28     THE AGENCY OF A PORTION OF THE DEBT INCURRED BY THE APPLICANT
    29     THROUGH THE AGENCY-ADMINISTERED GUARANTEED STAFFORD OR
    30     CONSOLIDATION LOAN PROGRAMS FOR THE EDUCATION NECESSARY TO BE
    20030H1530B4496                 - 10 -     

     1     AN ALCOHOL AND DRUG ADDICTION COUNSELOR IN THIS COMMONWEALTH
     2     IF THE QUALIFIED APPLICANT ENTERS INTO A CONTRACT WITH THE
     3     AGENCY THAT REQUIRES THE QUALIFIED RECIPIENT TO REMAIN
     4     EMPLOYED AS A FULL-TIME ALCOHOL AND DRUG ADDICTION COUNSELOR
     5     IN THIS COMMONWEALTH FOR A PERIOD OF TWO CONSECUTIVE YEARS.
     6         (2)  THE AGENCY MAY FORGIVE A PROPORTIONAL PART OF THE
     7     APPLICANT'S LOAN SO THAT THE LOAN MAY BE ENTIRELY FORGIVEN
     8     OVER FOUR YEARS OF FULL-TIME STAFF WORK. NO MORE THAN $5,000
     9     SHALL BE FORGIVEN IN ANY YEAR, AND NO MORE THAN $20,000 SHALL
    10     BE FORGIVEN FOR ANY APPLICANT.
    11         (3)  PAYMENTS SHALL BE MADE IN ACCORDANCE WITH THE
    12     PROCEDURES ESTABLISHED BY THE AGENCY.
    13         (4)  THE CONTRACT ENTERED INTO WITH THE AGENCY PURSUANT
    14     TO PARAGRAPH (1) SHALL BE CONSIDERED A CONTRACT WITH THE
    15     COMMONWEALTH AND SHALL INCLUDE THE FOLLOWING TERMS:
    16             (I)  THE RECIPIENT SHALL AGREE TO BE EMPLOYED BY A
    17         LICENSED ALCOHOL AND DRUG ADDICTION TREATMENT FACILITY
    18         LOCATED WITHIN THIS COMMONWEALTH.
    19             (II)  THE RECIPIENT SHALL PERMIT THE AGENCY TO
    20         DETERMINE COMPLIANCE WITH THE WORK REQUIREMENT AND ALL
    21         OTHER TERMS OF THE CONTRACT.
    22             (III)  UPON THE RECIPIENT'S DEATH OR TOTAL OR
    23         PERMANENT DISABILITY, THE AGENCY SHALL NULLIFY THE
    24         SERVICE OBLIGATION OF THE RECIPIENT.
    25             (IV)  IF THE RECIPIENT IS CONVICTED OF OR PLEADS
    26         GUILTY OR NO CONTEST TO A FELONY, THE AGENCY SHALL HAVE
    27         THE AUTHORITY TO TERMINATE THE RECIPIENT'S SERVICE IN THE
    28         PROGRAM AND DEMAND REPAYMENT OF THE AMOUNT OF THE LOAN AS
    29         OF THE DATE OF THE CONVICTION.
    30             (V)  LOAN RECIPIENTS WHO FAIL TO BEGIN OR COMPLETE
    20030H1530B4496                 - 11 -     

     1         THE OBLIGATIONS CONTRACTED FOR SHALL PAY TO THE AGENCY
     2         THE AMOUNT OF THE LOAN RECEIVED UNDER THE TERMS OF THE
     3         CONTRACT PURSUANT TO THIS SECTION. PROVIDING FALSE
     4         INFORMATION OR MISREPRESENTATION ON AN APPLICATION OR
     5         VERIFICATION OF SERVICE SHALL BE DEEMED A DEFAULT.
     6         DETERMINATION AS TO THE TIME OF THE DEFAULT SHALL BE MADE
     7         BY THE AGENCY.
     8     (B)  LIMITATION.--A LOAN FORGIVENESS AWARD UNDER THIS ACT
     9  SHALL NOT BE MADE FOR A LOAN THAT IS IN DEFAULT AT THE TIME OF
    10  THE APPLICATION. LOAN FORGIVENESS PROVIDED UNDER THE PROVISIONS
    11  OF THIS ACT SHALL NOT BE CONCURRENTLY AWARDED TO A RECIPIENT OF
    12  ANOTHER COMMONWEALTH-PROVIDED LOAN FORGIVENESS PROGRAM.
    13  SECTION 6.  TAX APPLICABILITY.
    14     LOAN FORGIVENESS REPAYMENTS BY A STUDENT SHALL NOT BE
    15  CONSIDERED TAXABLE INCOME FOR PURPOSES OF ARTICLE II OF THE ACT
    16  OF MARCH 4, 1971 (P.L.6, NO.2), KNOWN AS THE TAX REFORM CODE OF
    17  1971.
    18  SECTION 7.  ANNUAL REPORT.
    19     (A)  DEVELOPMENT OF REPORT.--THE AGENCY SHALL PUBLISH A
    20  REPORT BY OCTOBER 1, 2005, AND EVERY YEAR THEREAFTER FOR THE
    21  IMMEDIATELY PRECEDING FISCAL YEAR. THE REPORT SHALL INCLUDE
    22  INFORMATION REGARDING THE OPERATION OF THE PROGRAM, INCLUDING:
    23         (1)  THE NUMBER AND AMOUNT OF MENTAL HEALTH AND MENTAL
    24     RETARDATION STAFF MEMBER AND ALCOHOL AND DRUG ADDICTION
    25     COUNSELOR CONTRACTS EXECUTED AND RENEWED FOR MENTAL HEALTH
    26     AND MENTAL RETARDATION STAFF MEMBER LOAN FORGIVENESS
    27     APPLICANTS AND ALCOHOL AND DRUG ADDICTION COUNSELOR LOAN
    28     FORGIVENESS APPLICANTS.
    29         (2)  THE NUMBER OF DEFAULTED MENTAL HEALTH AND MENTAL
    30     RETARDATION STAFF MEMBER AND ALCOHOL AND DRUG ADDICTION
    20030H1530B4496                 - 12 -     

     1     COUNSELOR CONTRACTS, REPORTED BY CAUSE.
     2         (3)  THE NUMBER OF FULL-TIME STAFF EMPLOYEES OF MENTAL
     3     HEALTH AND MENTAL RETARDATION SERVICE AGENCIES, THE NUMBER OF
     4     FULL-TIME STAFF EMPLOYEES OF PRIVATE PROVIDERS AND THE NUMBER
     5     OF FULL-TIME STAFF EMPLOYEES OF LICENSED ALCOHOL AND DRUG
     6     ADDICTION FACILITIES PARTICIPATING IN THE PROGRAM, REPORTED
     7     BY TYPE OF INSTITUTION ATTENDED, INCLUDING FOUR-YEAR
     8     EDUCATIONAL INSTITUTIONS, COMMUNITY COLLEGES AND INDEPENDENT
     9     TWO-YEAR COLLEGES.
    10         (4)  THE NUMBER AND TYPE OF ENFORCEMENT ACTIONS TAKEN BY
    11     THE AGENCY.
    12     (B)  SUBMISSION.--THE ANNUAL REPORT SHALL BE SUBMITTED TO THE
    13  GOVERNOR, THE CHAIR AND MINORITY CHAIR OF THE APPROPRIATIONS
    14  COMMITTEE OF THE SENATE, THE CHAIR AND MINORITY CHAIR OF THE
    15  APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES, THE
    16  CHAIR AND MINORITY CHAIR OF THE EDUCATION COMMITTEE OF THE
    17  SENATE, THE CHAIR AND MINORITY CHAIR OF THE EDUCATION COMMITTEE
    18  OF THE HOUSE OF REPRESENTATIVES, THE CHAIR AND MINORITY CHAIR OF
    19  THE PUBLIC HEALTH AND WELFARE COMMITTEE OF THE SENATE AND THE
    20  CHAIR AND MINORITY CHAIR OF THE HEALTH AND HUMAN SERVICES
    21  COMMITTEE OF THE HOUSE OF REPRESENTATIVES.
    22  SECTION 8.  APPEALS.
    23     THE PROVISION OF THIS ACT SHALL BE SUBJECT TO 22 PA. CODE CH.
    24  121 (RELATING TO STUDENT FINANCIAL AID).
    25  SECTION 9.  LOAN FORGIVENESS AWARDS.
    26     RECIPIENTS OF LOAN FORGIVENESS AWARDS UNDER THIS ACT SHALL BE
    27  THOSE MENTAL HEALTH AND MENTAL RETARDATION STAFF MEMBERS OR
    28  ALCOHOL AND DRUG ADDICTION COUNSELORS WHO ARE WORKING IN AND WHO
    29  HAVE RECEIVED A SATISFACTORY RATING FROM EITHER A COUNTY OFFICE
    30  OF MENTAL HEALTH OR MENTAL RETARDATION SERVICE WITHIN THIS
    20030H1530B4496                 - 13 -     

     1  COMMONWEALTH, A PRIVATE PROVIDER WITHIN THIS COMMONWEALTH UNDER
     2  CONTRACT WITH A COUNTY OR THE DEPARTMENT OF PUBLIC WELFARE OR A
     3  LICENSED ALCOHOL AND DRUG ADDICTION TREATMENT FACILITY. MENTAL
     4  HEALTH OR MENTAL RETARDATION STAFF MEMBERS OR ALCOHOL AND DRUG
     5  ADDICTION COUNSELORS SHALL BE REQUIRED TO SUBMIT SUCH
     6  DOCUMENTATION OF ELIGIBILITY AS THE AGENCY MAY REQUIRE INCLUDING
     7  DOCUMENTATION TO INDICATE FULL-TIME EMPLOYMENT, AS FULL-TIME
     8  EMPLOYMENT IS DEFINED BY A COUNTY OFFICE, A PRIVATE PROVIDER OR
     9  A LICENSED ALCOHOL OR DRUG ADDICTION TREATMENT FACILITY. THE
    10  DOCUMENTATION SHALL BE PRESENTED TO THE AGENCY IN THE FORM OF A
    11  LETTER FROM THE APPLICANT'S EMPLOYER STATING THAT THE APPLICANT
    12  IS EMPLOYED BY THE MENTAL HEALTH OR MENTAL RETARDATION SERVICE
    13  PROVIDER OR A LICENSED ALCOHOL AND DRUG ADDICTION FACILITY AND
    14  THAT THE APPLICANT PERFORMS THE APPLICANT'S DUTIES IN A
    15  SATISFACTORY MANNER.
    16  SECTION 10.  FUNDING.
    17     LOAN FORGIVENESS AWARDS UNDER THIS ACT MAY BE MADE TO THE
    18  EXTENT THAT FUNDS ARE APPROPRIATED BY THE GENERAL ASSEMBLY AND
    19  ARE SUFFICIENT TO COVER THE ADMINISTRATION OF THE PROGRAM. IN
    20  THE EVENT THAT FUNDING IS INSUFFICIENT TO FULLY FUND
    21  ADMINISTRATION AND ALL ELIGIBLE APPLICANTS, PRIORITY SHALL BE
    22  GIVEN TO RENEWAL APPLICANTS. THEREAFTER, THE AGENCY SHALL
    23  UTILIZE A RANDOM LOTTERY SYSTEM FOR DETERMINING WHICH APPLICANTS
    24  RECEIVE LOAN FORGIVENESS AWARDS.
    25  SECTION 11.  RESPONSIBILITY OF AGENCY.
    26     THE AGENCY SHALL ADMINISTER THE MENTAL HEALTH AND MENTAL
    27  RETARDATION STAFF MEMBER AND ALCOHOL AND DRUG ADDICTION
    28  COUNSELOR LOAN FORGIVENESS PROGRAMS ESTABLISHED BY THIS ACT AND
    29  SHALL ADOPT SUCH REGULATIONS, POLICIES, PROCEDURES AND FORMS AS
    30  ARE NECESSARY AND NOT INCONSISTENT WITH THE PROVISIONS OF THIS
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     1  ACT.
     2  SECTION 12.  EFFECTIVE DATE.
     3     THIS ACT SHALL TAKE EFFECT IN 60 DAYS.


















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