PRINTER'S NO. 314
No. 282 Session of 2007
INTRODUCED BY PETRONE, BISHOP, CALTAGIRONE, COSTA, CURRY, DALEY, DeLUCA, DENLINGER, EACHUS, FABRIZIO, FRANKEL, FREEMAN, GEORGE, GERGELY, GIBBONS, GOODMAN, GRELL, GRUCELA, HENNESSEY, JAMES, JOSEPHS, KING, KOTIK, KULA, LEACH, LEVDANSKY, MANN, McILHATTAN, MURT, MUSTIO, NAILOR, O'NEILL, PETRARCA, ROAE, SAMUELSON, SIPTROTH, SOLOBAY, STABACK, STURLA, SURRA, TANGRETTI, YUDICHAK, WALKO AND WHEATLEY, FEBRUARY 6, 2007
REFERRED TO COMMITTEE ON HEALTH AND HUMAN SERVICES, FEBRUARY 6, 2007
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 Mental Health 12 and Mental Retardation Staff Member and Alcohol and Drug 13 Addiction Counselor Loan Forgiveness Programs Act. 14 Section 2. Findings and declaration of purpose. 15 The General Assembly finds and declares that: 16 (1) Community-based mental health, mental retardation 17 and alcohol and drug addiction treatment services offer
1 lifelong supports and opportunities for a meaningful quality 2 of life, in fulfillment of Federal and State laws. 3 (2) Treatment of alcohol and other drug addiction is a 4 crucial investment in our health care, in the stability of 5 our families and in protecting the public safety. 6 (3) A qualified and stable work force is the key to 7 quality community mental health and mental retardation 8 services and to quality alcohol and drug addiction counseling 9 services. 10 (4) The pool of qualified staff members has diminished. 11 (5) The number of college students planning to enter the 12 mental health and mental retardation or the alcohol and drug 13 addiction counseling professions appears to be inadequate to 14 meet the need for staff members in this Commonwealth. 15 (6) Demand from industry and other opportunities attract 16 potential staff members away from these professions. 17 (7) Payment of a portion of student loans for mental 18 health and mental retardation staff members or alcohol and 19 drug addiction counselors serves the important public purpose 20 of encouraging new staff members to pursue careers in this 21 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 "Counselor." A counselor assistant, counselor or clinical 29 supervisor. 30 "Licensed alcohol and drug addiction treatment facility." An 20070H0282B0314 - 2 -
1 alcohol or drug addiction treatment facility licensed by the 2 Department of Health to provide addiction treatment services. 3 "Qualified alcohol and drug addiction loan forgiveness 4 applicant." A person who meets all of the following criteria: 5 (1) Is a resident of this Commonwealth. 6 (2) Has successfully completed a two-year or four-year 7 academic degree or diploma or graduate level academic degree 8 or diploma at an accredited college or university. 9 (3) Has been hired as a full-time counselor by a 10 licensed alcohol and drug addiction treatment facility. 11 (4) Has successfully completed the first six months of 12 full-time employment as a counselor at a licensed alcohol and 13 drug addiction treatment facility and remains in good 14 standing with the facility. 15 (5) Has borrowed through and has a current outstanding 16 balance with Guaranteed Stafford or Consolidation Loan 17 Programs administered by the Pennsylvania Higher Education 18 Assistance Agency. 19 "Qualified applicant." A qualified mental health and mental 20 retardation loan forgiveness applicant or a qualified alcohol 21 and drug addiction loan forgiveness applicant. 22 "Qualified mental health and mental retardation loan 23 forgiveness applicant." A person who meets all of the following 24 criteria: 25 (1) Is a resident of this Commonwealth. 26 (2) Has successfully completed a two-year or four-year 27 academic degree or diploma or graduate level academic degree 28 or diploma at an accredited college or university. 29 (3) Has been hired as a full-time staff member by a 30 county mental health or mental retardation service agency 20070H0282B0314 - 3 -
1 within this Commonwealth through a merit or civil service 2 system approved by the Secretary of Public Welfare or by a 3 private provider that is under contract with either a county 4 to provide mental health or mental retardation services or 5 the Department of Public Welfare to provide behavioral health 6 rehabilitation services to individuals with developmental 7 disabilities. 8 (4) Has successfully completed the first six months of 9 full-time employment as a staff member at a county mental 10 health or mental retardation service agency or a private 11 provider under contract with either a county or the 12 Department of Public Welfare and remains in good standing 13 with the service agency or private provider. 14 (5) Performs staff duties at a county mental health or 15 mental retardation service agency within this Commonwealth or 16 at a private provider within this Commonwealth that is under 17 contract with either a county to provide mental health or 18 mental retardation services or the Department of Public 19 Welfare to provide behavioral health rehabilitation services 20 to individuals with developmental disabilities. 21 (6) Has borrowed through and has a current outstanding 22 balance with the agency-administered Guaranteed Stafford or 23 Consolidation Loan Programs administered by the Pennsylvania 24 Higher Education Assistance Agency. 25 "Staff member." A caseworker, direct support professional, 26 therapist, program coordinator or director. 27 Section 4. Mental Health and Mental Retardation Staff Member 28 Loan Forgiveness Program. 29 (a) Components.--Components shall be as follows: 30 (1) A qualified applicant who is selected for the Mental 20070H0282B0314 - 4 -
1 Health and Mental Retardation Staff Member Loan Forgiveness 2 Program in accordance with this act shall be eligible for 3 payment by the agency of a portion of the debt incurred by 4 the applicant through the agency-administered Guaranteed 5 Stafford or Consolidation Loan Programs for the education 6 necessary to be a mental health or mental retardation staff 7 member in this Commonwealth if the qualified applicant enters 8 into a contract with the agency that requires the qualified 9 recipient to remain employed as a full-time mental health or 10 mental retardation staff member in this Commonwealth for a 11 period of two consecutive years. 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 (4) The contract entered into with the agency pursuant 20 to paragraph (1) shall be considered a contract with the 21 Commonwealth and shall include the following terms: 22 (i) The recipient shall agree to be employed by a 23 county mental health or mental retardation service agency 24 located within this Commonwealth or by a private provider 25 of mental health or mental retardation services. 26 (ii) The recipient shall permit the agency to 27 determine compliance with the work requirement and all 28 other terms of the contract. 29 (iii) Upon the recipient's death or total or 30 permanent disability, the agency shall nullify the 20070H0282B0314 - 5 -
1 service obligation of the recipient. 2 (iv) If the recipient is convicted of or pleads 3 guilty or no contest to a felony, the agency shall have 4 the authority to terminate the recipient's service in the 5 program and demand repayment of the amount of the loan as 6 of the date of the conviction. 7 (v) Loan recipients who fail to begin or complete 8 the obligations contracted for shall pay to the agency 9 the amount of the loan received under the terms of the 10 contract pursuant to this section. Providing false 11 information or misrepresentation on an application or 12 verification of service shall be deemed a default. 13 Determination as to the time of the default shall be made 14 by the agency. 15 (b) Limitations.--A loan forgiveness award shall not be made 16 for a loan that is in default at the time of the application. 17 Loan forgiveness provided under the provisions of this act shall 18 not be awarded to a recipient of another Commonwealth-provided 19 loan forgiveness program concurrently. 20 Section 5. Alcohol and Drug Addiction Counselor Loan 21 Forgiveness Program. 22 (a) Components.--Components shall be as follows: 23 (1) A qualified applicant who is selected for the 24 Alcohol and Drug Addiction Counselor Loan Forgiveness Program 25 in accordance with this act shall be eligible for payment by 26 the agency of a portion of the debt incurred by the applicant 27 through the agency-administered Guaranteed Stafford or 28 Consolidation Loan Programs for the education necessary to be 29 an alcohol and drug addiction counselor in this Commonwealth 30 if the qualified applicant enters into a contract with the 20070H0282B0314 - 6 -
1 agency that requires the qualified recipient to remain 2 employed as a full-time alcohol and drug addiction counselor 3 in this Commonwealth for a period of two consecutive years. 4 (2) The agency may forgive a proportional part of the 5 applicant's loan so that the loan may be entirely forgiven 6 over four years of full-time staff work. No more than $5,000 7 shall be forgiven in any year, and no more than $20,000 shall 8 be forgiven for any applicant. 9 (3) Payments shall be made in accordance with the 10 procedures established by the agency. 11 (4) The contract entered into with the agency pursuant 12 to paragraph (1) shall be considered a contract with the 13 Commonwealth and shall include the following terms: 14 (i) The recipient shall agree to be employed by a 15 licensed alcohol and drug addiction treatment facility 16 located within this Commonwealth. 17 (ii) The recipient shall permit the agency to 18 determine compliance with the work requirement and all 19 other terms of the contract. 20 (iii) Upon the recipient's death or total or 21 permanent disability, the agency shall nullify the 22 service obligation of the recipient. 23 (iv) If the recipient is convicted of or pleads 24 guilty or no contest to a felony, the agency shall have 25 the authority to terminate the recipient's service in the 26 program and demand repayment of the amount of the loan as 27 of the date of the conviction. 28 (v) Loan recipients who fail to begin or complete 29 the obligations contracted for shall pay to the agency 30 the amount of the loan received under the terms of the 20070H0282B0314 - 7 -
1 contract pursuant to this section. Providing false 2 information or misrepresentation on an application or 3 verification of service shall be deemed a default. 4 Determination as to the time of the default shall be made 5 by the agency. 6 (b) Limitation.--A loan forgiveness award under this act 7 shall not be made for a loan that is in default at the time of 8 the application. Loan forgiveness provided under the provisions 9 of this act shall not be concurrently awarded to a recipient of 10 another Commonwealth-provided loan forgiveness program. 11 Section 6. Tax applicability. 12 Loan forgiveness repayments by a student shall not be 13 considered taxable income for purposes of Article II of the act 14 of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 15 1971. 16 Section 7. Annual report. 17 (a) Development of report.--The agency shall publish a 18 report by October 1, 2007, and every year thereafter for the 19 immediately preceding fiscal year. The report shall include 20 information regarding the operation of the program, including: 21 (1) The number and amount of mental health and mental 22 retardation staff member and alcohol and drug addiction 23 counselor contracts executed and renewed for mental health 24 and mental retardation staff member loan forgiveness 25 applicants and alcohol and drug addiction counselor loan 26 forgiveness applicants. 27 (2) The number of defaulted mental health and mental 28 retardation staff member and alcohol and drug addiction 29 counselor contracts, reported by cause. 30 (3) The number of full-time staff employees of mental 20070H0282B0314 - 8 -
1 health and mental retardation service agencies, the number of 2 full-time staff employees of private providers and the number 3 of full-time staff employees of licensed alcohol and drug 4 addiction facilities participating in the program, reported 5 by type of institution attended, including four-year 6 educational institutions, community colleges and independent 7 two-year colleges. 8 (4) The number and type of enforcement actions taken by 9 the agency. 10 (b) Submission.--The annual report shall be submitted to the 11 Governor, the chair and minority chair of the Appropriations 12 Committee of the Senate, the chair and minority chair of the 13 Appropriations Committee of the House of Representatives, the 14 chair and minority chair of the Education Committee of the 15 Senate, the chair and minority chair of the Education Committee 16 of the House of Representatives, the chair and minority chair of 17 the Public Health and Welfare Committee of the Senate and the 18 chair and minority chair of the Health and Human Services 19 Committee of the House of Representatives. 20 Section 8. Appeals. 21 The provision of this act shall be subject to 22 Pa. Code Ch. 22 121 (relating to student financial aid). 23 Section 9. Loan forgiveness awards. 24 Recipients of loan forgiveness awards under this act shall be 25 those mental health and mental retardation staff members or 26 alcohol and drug addiction counselors who are working in and who 27 have received a satisfactory rating from either a county office 28 of mental health or mental retardation service within this 29 Commonwealth, a private provider within this Commonwealth under 30 contract with a county or the Department of Public Welfare or a 20070H0282B0314 - 9 -
1 licensed alcohol and drug addiction treatment facility. Mental 2 health or mental retardation staff members or alcohol and drug 3 addiction counselors shall be required to submit such 4 documentation of eligibility as the agency may require including 5 documentation to indicate full-time employment, as full-time 6 employment is defined by a county office, a private provider or 7 a licensed alcohol or drug addiction treatment facility. The 8 documentation shall be presented to the agency in the form of a 9 letter from the applicant's employer stating that the applicant 10 is employed by the mental health or mental retardation service 11 provider or a licensed alcohol and drug addiction facility and 12 that the applicant performs the applicant's duties in a 13 satisfactory manner. 14 Section 10. Funding. 15 Loan forgiveness awards under this act may be made to the 16 extent that funds are appropriated by the General Assembly and 17 are sufficient to cover the administration of the program. In 18 the event that funding is insufficient to fully fund 19 administration and all eligible applicants, priority shall be 20 given to renewal applicants. Thereafter, the agency shall 21 utilize a random lottery system for determining which applicants 22 receive loan forgiveness awards. 23 Section 11. Responsibility of agency. 24 The agency shall administer the Mental Health and Mental 25 Retardation Staff Member and Alcohol and Drug Addiction 26 Counselor Loan Forgiveness Programs established by this act and 27 shall adopt such regulations, policies, procedures and forms as 28 are necessary and not inconsistent with the provisions of this 29 act. 30 Section 12. Effective date. 20070H0282B0314 - 10 -
1 This act shall take effect in 60 days. L18L24DMS/20070H0282B0314 - 11 -