PRINTER'S NO. 438
No. 413 Session of 2005
INTRODUCED BY RHOADES, STACK, LAVALLE, ORIE, C. WILLIAMS,
CORMAN, STOUT, COSTA, MADIGAN, GORDNER, JUBELIRER, O'PAKE,
ERICKSON, RAFFERTY, PUNT, BOSCOLA, WENGER, LOGAN, GREENLEAF,
FERLO AND PIPPY, MARCH 21, 2005
REFERRED TO EDUCATION, MARCH 21, 2005
AN ACT
1 Providing for Commonwealth support for a Mental Health and
2 Mental Retardation Staff Member Loan Forgiveness Program and
3 an Alcohol and Drug Addiction Counselor Loan Forgiveness
4 Program for Commonwealth residents who graduate from
5 institutions of higher education and who apply their degrees
6 to careers as mental health and mental retardation staff
7 members in this Commonwealth.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Short title.
11 This act shall be known and may be cited as the Loan
12 Forgiveness Programs Act.
13 Section 2. Findings and declaration of purpose.
14 The General Assembly finds and declares that:
15 (1) Community-based mental health, mental retardation
16 and alcohol and drug addiction treatment services offer
17 lifelong supports and opportunities for a meaningful quality
18 of life, in fulfillment of Federal and State laws.
19 (2) Treatment of alcohol and other drug addiction is a
1 crucial investment in our health care, in the stability of
2 our families and in protecting the public safety.
3 (3) A qualified and stable work force is the key to
4 quality community mental health and mental retardation
5 services and to quality alcohol and drug addiction counseling
6 services.
7 (4) The pool of qualified staff members has diminished.
8 (5) The number of college students planning to enter the
9 mental health and mental retardation or the alcohol and drug
10 addiction counseling professions appears to be inadequate to
11 meet the need for staff members in this Commonwealth.
12 (6) Demand from industry and other opportunities attract
13 potential staff members away from these professions.
14 (7) Payment of a portion of student loans for mental
15 health and mental retardation staff members or alcohol and
16 drug addiction counselors serves the important public purpose
17 of encouraging new staff members to pursue careers in this
18 Commonwealth.
19 Section 3. Definitions.
20 The following words and phrases when used in this act shall
21 have the meanings given to them in this section unless the
22 context clearly indicates otherwise:
23 "Agency." The Pennsylvania Higher Education Assistance
24 Agency.
25 "Counselor." A counselor assistant, counselor or clinical
26 supervisor.
27 "Licensed alcohol and drug addiction treatment facility." An
28 alcohol or drug addiction treatment facility licensed by the
29 Department of Health to provide addiction treatment services.
30 "Qualified alcohol and drug addiction loan forgiveness
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1 applicant." A person who meets all of the following criteria:
2 (1) Is a resident of this Commonwealth.
3 (2) Has successfully completed a two-year or four-year
4 academic degree or diploma at an accredited college or
5 university.
6 (3) Has been hired as a full-time counselor by a
7 licensed alcohol and drug addiction treatment facility.
8 (4) Has successfully completed the first six months of
9 full-time employment as a counselor at a licensed alcohol and
10 drug addiction treatment facility and remains in good
11 standing with the facility.
12 (5) Has borrowed through and has a current outstanding
13 balance with Guaranteed Stafford or Consolidation Loan
14 Programs administered by the Pennsylvania Higher Education
15 Assistance Agency.
16 "Qualified applicant." A qualified mental health and mental
17 retardation loan forgiveness applicant or a qualified alcohol
18 and drug addiction loan forgiveness applicant.
19 "Qualified mental health and mental retardation loan
20 forgiveness applicant." A person who meets all of the following
21 criteria:
22 (1) Is a resident of this Commonwealth.
23 (2) Has successfully completed a two-year or four-year
24 academic degree or diploma at an accredited college or
25 university.
26 (3) Has been hired as a full-time staff member by a
27 county mental health or mental retardation service agency
28 within this Commonwealth through a merit or civil service
29 system approved by the Secretary of Public Welfare or by a
30 private provider that is under contract with either a county
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1 to provide mental health or mental retardation services or
2 the Department of Public Welfare to provide behavioral health
3 rehabilitation services to individuals with developmental
4 disabilities.
5 (4) Has successfully completed the first six months of
6 full-time employment as a staff member at a county mental
7 health or mental retardation service agency or a private
8 provider under contract with either a county or the
9 Department of Public Welfare and remains in good standing
10 with the service agency or private provider.
11 (5) Performs staff duties at a county mental health or
12 mental retardation service agency within this Commonwealth or
13 at a private provider within this Commonwealth that is under
14 contract with either a county to provide mental health or
15 mental retardation services or the Department of Public
16 Welfare to provide behavioral health rehabilitation services
17 to individuals with developmental disabilities.
18 (6) Has borrowed through and has a current outstanding
19 balance with the agency-administered Guaranteed Stafford or
20 Consolidation Loan Programs administered by the Pennsylvania
21 Higher Education Assistance Agency.
22 "Staff member." A caseworker, direct support professional,
23 therapist, program coordinator or director.
24 Section 4. Mental Health and Mental Retardation Staff Member
25 Loan Forgiveness Program.
26 (a) Components.--Components shall be as follows:
27 (1) A qualified applicant who is selected for the Mental
28 Health and Mental Retardation Staff Member Loan Forgiveness
29 Program in accordance with this act shall be eligible for
30 payment by the agency of a portion of the debt incurred by
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1 the applicant through the agency-administered Guaranteed
2 Stafford or Consolidation Loan Programs for the education
3 necessary to be a mental health or mental retardation staff
4 member in this Commonwealth if the qualified applicant enters
5 into a contract with the agency that requires the qualified
6 recipient to remain employed as a full-time mental health or
7 mental retardation staff member in this Commonwealth for a
8 period of two consecutive years.
9 (2) The agency may forgive a proportional part of the
10 applicant's loan so that the loan may be entirely forgiven
11 over four years of full-time staff work. No more than $5,000
12 shall be forgiven in any year, and no more than $20,000 shall
13 be forgiven for any applicant.
14 (3) Payments shall be made in accordance with the
15 procedures established by the agency.
16 (4) The contract entered into with the agency pursuant
17 to paragraph (1) shall be considered a contract with the
18 Commonwealth and shall include the following terms:
19 (i) The recipient shall agree to be employed by a
20 county mental health or mental retardation service agency
21 located within this Commonwealth or by a private provider
22 of mental health or mental retardation services.
23 (ii) The recipient shall permit the agency to
24 determine compliance with the work requirement and all
25 other terms of the contract.
26 (iii) Upon the recipient's death or total or
27 permanent disability, the agency shall nullify the
28 service obligation of the recipient.
29 (iv) If the recipient is convicted of or pleads
30 guilty or no contest to a felony, the agency shall have
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1 the authority to terminate the recipient's service in the
2 program and demand repayment of the amount of the loan as
3 of the date of the conviction.
4 (v) Loan recipients who fail to begin or complete
5 the obligations contracted for shall pay to the agency
6 the amount of the loan received under the terms of the
7 contract pursuant to this section. Providing false
8 information or misrepresentation on an application or
9 verification of service shall be deemed a default.
10 Determination as to the time of the default shall be made
11 by the agency.
12 (b) Limitations.--A loan forgiveness award shall not be made
13 for a loan that is in default at the time of the application.
14 Loan forgiveness provided under the provisions of this act shall
15 not be awarded to a recipient of another Commonwealth-provided
16 loan forgiveness program concurrently.
17 Section 5. Alcohol and Drug Addiction Counselor Loan
18 Forgiveness Program.
19 (a) Components.--Components shall be as follows:
20 (1) A qualified applicant who is selected for the
21 Alcohol and Drug Addiction Counselor Loan Forgiveness Program
22 in accordance with this act shall be eligible for payment by
23 the agency of a portion of the debt incurred by the applicant
24 through the agency-administered Guaranteed Stafford or
25 Consolidation Loan Programs for the education necessary to be
26 an alcohol and drug addiction counselor in this Commonwealth
27 if the qualified applicant enters into a contract with the
28 agency that requires the qualified recipient to remain
29 employed as a full-time alcohol and drug addiction counselor
30 in this Commonwealth for a period of two consecutive years.
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1 (2) The agency may forgive a proportional part of the
2 applicant's loan so that the loan may be entirely forgiven
3 over four years of full-time staff work. No more than $5,000
4 shall be forgiven in any year, and no more than $20,000 shall
5 be forgiven for any applicant.
6 (3) Payments shall be made in accordance with the
7 procedures established by the agency.
8 (4) The contract entered into with the agency pursuant
9 to paragraph (1) shall be considered a contract with the
10 Commonwealth and shall include the following terms:
11 (i) The recipient shall agree to be employed by a
12 licensed alcohol and drug addiction treatment facility
13 located within this Commonwealth.
14 (ii) The recipient shall permit the agency to
15 determine compliance with the work requirement and all
16 other terms of the contract.
17 (iii) Upon the recipient's death or total or
18 permanent disability, the agency shall nullify the
19 service obligation of the recipient.
20 (iv) If the recipient is convicted of or pleads
21 guilty or no contest to a felony, the agency shall have
22 the authority to terminate the recipient's service in the
23 program and demand repayment of the amount of the loan as
24 of the date of the conviction.
25 (v) Loan recipients who fail to begin or complete
26 the obligations contracted for shall pay to the agency
27 the amount of the loan received under the terms of the
28 contract pursuant to this section. Providing false
29 information or misrepresentation on an application or
30 verification of service shall be deemed a default.
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1 Determination as to the time of the default shall be made
2 by the agency.
3 (b) Limitation.--A loan forgiveness award under this act
4 shall not be made for a loan that is in default at the time of
5 the application. Loan forgiveness provided under the provisions
6 of this act shall not be concurrently awarded to a recipient of
7 another Commonwealth-provided loan forgiveness program.
8 Section 6. Tax applicability.
9 Loan forgiveness repayments by a student shall not be
10 considered taxable income for purposes of Article II of the act
11 of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of
12 1971.
13 Section 7. Annual report.
14 (a) Development of report.--The agency shall publish a
15 report by October 1, 2006, and every year thereafter for the
16 immediately preceding fiscal year. The report shall include
17 information regarding the operation of the program, including:
18 (1) The number and amount of mental health and mental
19 retardation staff member and alcohol and drug addiction
20 counselor contracts executed and renewed for mental health
21 and mental retardation staff member loan forgiveness
22 applicants and alcohol and drug addiction counselor loan
23 forgiveness applicants.
24 (2) The number of defaulted mental health and mental
25 retardation staff member and alcohol and drug addiction
26 counselor contracts, reported by cause.
27 (3) The number of full-time staff employees of mental
28 health and mental retardation service agencies, the number of
29 full-time staff employees of private providers and the number
30 of full-time staff employees of licensed alcohol and drug
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1 addiction facilities participating in the program, reported
2 by type of institution attended, including four-year
3 educational institutions, community colleges and independent
4 two-year colleges.
5 (4) The number and type of enforcement actions taken by
6 the agency.
7 (b) Submission.--The annual report shall be submitted to the
8 Governor, the chair and minority chair of the Appropriations
9 Committee of the Senate, the chair and minority chair of the
10 Appropriations Committee of the House of Representatives, the
11 chair and minority chair of the Education Committee of the
12 Senate, the chair and minority chair of the Education Committee
13 of the House of Representatives, the chair and minority chair of
14 the Public Health and Welfare Committee of the Senate and the
15 chair and minority chair of the Health and Human Services
16 Committee of the House of Representatives.
17 Section 8. Appeals.
18 The provision of this act shall be subject to 22 Pa. Code Ch.
19 121 (relating to student financial aid).
20 Section 9. Loan forgiveness awards.
21 Recipients of loan forgiveness awards under this act shall be
22 those mental health and mental retardation staff members or
23 alcohol and drug addiction counselors who are working in and who
24 have received a satisfactory rating from either a county office
25 of mental health or mental retardation service within this
26 Commonwealth, a private provider within this Commonwealth under
27 contract with a county or the Department of Public Welfare or a
28 licensed alcohol and drug addiction treatment facility. Mental
29 health or mental retardation staff members or alcohol and drug
30 addiction counselors shall be required to submit such
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1 documentation of eligibility as the agency may require including
2 documentation to indicate full-time employment, as full-time
3 employment is defined by a county office, a private provider or
4 a licensed alcohol or drug addiction treatment facility. The
5 documentation shall be presented to the agency in the form of a
6 letter from the applicant's employer stating that the applicant
7 is employed by the mental health or mental retardation service
8 provider or a licensed alcohol and drug addiction facility and
9 that the applicant performs the applicant's duties in a
10 satisfactory manner.
11 Section 10. Funding.
12 Loan forgiveness awards under this act may be made to the
13 extent that funds are appropriated by the General Assembly and
14 are sufficient to cover the administration of the program. In
15 the event that funding is insufficient to fully fund
16 administration and all eligible applicants, priority shall be
17 given to renewal applicants. Thereafter, the agency shall
18 utilize a random lottery system for determining which applicants
19 receive loan forgiveness awards.
20 Section 11. Responsibility of agency.
21 The agency shall administer the Mental Health and Mental
22 Retardation Staff Member and Alcohol and Drug Addiction
23 Counselor Loan Forgiveness Programs established by this act and
24 shall adopt such regulations, policies, procedures and forms as
25 are necessary and not inconsistent with the provisions of this
26 act.
27 Section 12. Effective date.
28 This act shall take effect in 60 days.
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