PRINTER'S NO. 2218
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1943
Session of
2021
INTRODUCED BY PISCIOTTANO, DELLOSO, HILL-EVANS, SANCHEZ, BROOKS,
INNAMORATO, LONGIETTI, A. DAVIS, DEASY, SCHLOSSBERG,
N. NELSON, SHUSTERMAN, MERSKI, LEWIS DELROSSO, D. WILLIAMS
AND SOLOMON, SEPTEMBER 30, 2021
REFERRED TO COMMITTEE ON EDUCATION, SEPTEMBER 30, 2021
AN ACT
Establishing the Pennsylvania Retaining Educated Workers
Incentive Program (PREWIP) and imposing duties on the
Pennsylvania Higher Education Assistance Agency.
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 Pennsylvania
Retaining Educated Workers Incentive Program (PREWIP) Act.
Section 2. Purpose.
The purpose of this act is to provide an incentive for
individuals to pursue employment in a designated distressed zone
of this Commonwealth.
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:
"Agency." The Pennsylvania Higher Education Assistance
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Agency.
"Award recipient." An eligible individual who receives
student loan forgiveness or an interest rate reduction under the
program.
"Distressed zone." A geographic area of this Commonwealth
that is:
(1) designated by the agency as eligible for the
Pennsylvania Industrial Development Authority loan program;
and
(2) experiencing population loss of more that 2% as
determined by the United States Census Bureau.
"Eligible individual." An individual who:
(1) is a resident of this Commonwealth; and
(2) holds an undergraduate degree, diploma or trade
certificate from an institution of higher education.
"Institution of higher education." Any of the following:
(1) A community college operating under Article XIX-A of
the act of March 10, 1949 (P.L.30, No.14), known as the
Public School Code of 1949.
(2) A university within the State System of Higher
Education established under Article XX-A of the Public School
Code of 1949.
(3) A State-related institution.
(4) The Thaddeus Stevens College of Technology.
"Program." The Pennsylvania Retaining Educated Workers
Incentive Program (PREWIP).
"State-related institution." Any of the following:
(1) The Pennsylvania State University.
(2) The University of Pittsburgh.
(3) Temple University.
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(4) Lincoln University.
(5) Any other institution designated as "State-related"
by the Commonwealth.
(6) A branch campus of an institution specified in
paragraph (1), (2), (3), (4) or (5).
Section 4. Pennsylvania Retaining Educated Workers Incentive
Program.
(a) Establishment.--The Pennsylvania Retaining Educated
Workers Incentive Program (PREWIP) is established in the agency.
(b) Administration.--The agency shall administer the program
for the purposes of:
(1) Providing student loan forgiveness in accordance
with section 5.
(2) Reducing the interest rate regarding student loans
in accordance with section 6.
Section 5. Loan forgiveness.
(a) Authorization.--The program shall include loan
forgiveness in accordance with this section for an eligible
individual regarding student loans held by the Commonwealth.
(b) Amount.--Under the program, the agency shall forgive the
student loans of an eligible individual, up to $50,000.
(c) Agreement.--To qualify for loan forgiveness under the
program, an eligible individual must enter into an agreement
with the agency that includes notice of all the requirements and
conditions under this section.
(d) Residency.--To qualify for loan forgiveness under the
program:
(1) Within six months after entering into the agreement,
an award recipient must establish residency in a distressed
zone.
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(2) An award recipient must maintain residency in a
distressed zone for a period of at least 10 consecutive
years.
(e) Changed criteria.--If, after an award recipient
establishes residency in a distressed zone under the agreement,
the zone no longer meets the criteria specified in the
definition of "distressed zone" under section 3, the award
recipient still qualifies for loan forgiveness if the award
recipient continuously resides in the zone for a period of at
least 10 consecutive years.
(f) Compliance.--
(1) An award recipient shall permit the agency to
determine compliance with the residency requirement under the
agreement.
(2) If an award recipient fails to comply with the
residency requirement under the agreement, the award
recipient shall reimburse the Commonwealth for the amount of
student loan forgiveness received, including interest accrued
as determined by the agency.
(3) An award recipient and the agency shall make every
effort to resolve conflicts in order to prevent a breach of
the agreement.
(g) Termination.--The agency may terminate student loan
forgiveness and demand repayment by an award recipient of the
amount of student loans forgiven if the award recipient is
convicted of or pleads guilty or no contest to a felony.
(h) Limitation.--An award recipient may not receive student
loan forgiveness if the award recipient:
(1) receives loan forgiveness from another program
provided by the Commonwealth; or
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(2) applies for a 0% interest rate offered under section
6.
(i) Tax applicability.--Student loan forgiveness received
under this section 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.
(j) Enforcement.--Notwithstanding 42 Pa.C.S. § 8127
(relating to personal earnings exempt from process), the agency
may seek garnishment of wages of an award recipient who fails to
comply with the agreement for the amount of student loan
forgiveness provided to the award recipient.
Section 6. Interest rate reduction on student loans.
(a) Authorization.--The program shall include the reduction
of the interest rate in accordance with this section for an
eligible individual regarding student loans held by the
Commonwealth.
(b) Percent.--Under the program, the agency shall provide an
interest rate of 0% on student loans of an eligible individual.
(c) Agreement.--To qualify for a 0% interest rate under the
program, an eligible individual must enter into an agreement
with the agency that includes notice of all the requirements and
conditions under this section.
(d) Residency.--To qualify for a 0% interest rate under the
program, within 30 days after entering into the agreement, an
award recipient must establish residency in a distressed zone.
(e) Changed criteria.--If, after an award recipient
establishes residency in a distressed zone under the agreement,
the zone no longer meets the criteria specified in the
definition of "distressed zone" under section 3, the award
recipient still qualifies for the 0% interest rate for up to 12
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months, after which time the interest rate on the student loans
returns to the rate in effect before the award recipient entered
into the agreement.
(f) Relocation.--If an award recipient makes plans to cease
residency in the distressed zone, the award recipient shall
notify the agency of the termination of the agreement, at which
time the interest rate on the student loans returns to the rate
in effect before the award recipient entered into the agreement,
without penalty.
(g) Compliance.--
(1) An award recipient shall permit the agency to
determine compliance with the residency requirement under the
agreement.
(2) If an award recipient fails to comply with the
residency requirement under the agreement, the award
recipient shall reimburse the Commonwealth for the amount
that the award recipient saved as a result of the 0% interest
rate.
(3) An award recipient and the agency shall make every
effort to resolve conflicts in order to prevent a breach of
the agreement.
(h) Termination.--The agency may terminate the 0% interest
rate award if the award recipient is convicted of or pleads
guilty or no contest to a felony.
(i) Limitation.--An award recipient may not receive the 0%
interest rate award if the award recipient:
(1) participates in another interest rate reduction
program provided by the Commonwealth; or
(2) applies for student loan forgiveness offered under
section 5.
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(j) Enforcement.--Notwithstanding 42 Pa.C.S. § 8127
(relating to personal earnings exempt from process), the agency
may seek garnishment of wages of an award recipient who fails to
comply with the agreement for the interest rate reduction
provided to the award recipient.
Section 7. Annual report.
(a) Development.--By September 1, 2021, and each September 1
thereafter, the agency shall compile a report regarding the
operation of the program for the immediately preceding fiscal
year.
(b) Contents.--A report under this section shall include the
following information:
(1) The number and amount of agreements executed and
renewed for award recipients.
(2) The number of eligible individuals participating in
student loan forgiveness and the 0% interest rate components
of the program.
(3) The number of defaults that occurred regarding the
student loans under the program and the cause of the
defaults.
(4) The number and type of enforcement actions taken by
the agency regarding the implementation of the program.
(c) Submittal.--A report under this section shall be
submitted to the following:
(1) The Governor.
(2) The chairperson and minority chairperson of the
Appropriations Committee of the Senate.
(3) The chairperson and minority chairperson of the
Appropriations Committee of the House of Representatives.
(4) The chairperson and minority chairperson of the
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Education Committee of the Senate.
(5) The chairperson and minority chairperson of the
Education Committee of the House of Representatives.
(6) The chairperson and minority chairperson of the
Labor and Industry Committee of the Senate.
(7) The chairperson and minority chairperson of the
Labor and Industry Committee of the House of Representatives.
Section 8. Funding for program.
Agreements under this act:
(1) Shall be made only to the extent that money is
appropriated for the program and is sufficient for the
implementation of the program.
(2) Shall not constitute an entitlement derived from the
Commonwealth or a claim on any money of the Commonwealth.
Section 9. Rules and regulations.
The agency shall promulgate rules and regulations necessary
for the administration and enforcement of this act.
Section 10. Effective date.
This act shall take effect in 90 days.
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