Regular Session 2021-2022 House Bill 2198 P.N. 2564

PRINTER'S NO. 2564

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2198

Session of

2021

INTRODUCED BY PISCIOTTANO, D. WILLIAMS, HILL-EVANS, SCHLOSSBERG

AND HOHENSTEIN, DECEMBER 22, 2021

REFERRED TO COMMITTEE ON EDUCATION, DECEMBER 22, 2021

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," providing for student loan

forgiveness.

This act may be referred to as the Skill Up Pennsylvania Act.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of March 10, 1949 (P.L.30, No.14), known

as the Public School Code of 1949, is amended by adding an

article to read:

ARTICLE XX-L

STUDENT LOAN FORGIVENESS PROGRAM

Section 2001-L. Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Benefit recipient." An eligible individual who receives an

education benefit under the program.

"Department." The Department of Education of the

Commonwealth.

"Education benefit." The amount of student loan forgiveness

received by a benefit recipient.

"Eligible individual." An individual who:

(1) Is a resident of this Commonwealth.

(2) Holds an undergraduate degree from an institution of

higher education.

(3) Currently has student loans.

(4) Meets income eligibility criteria established in

section 2002-L(c).

"Institution of higher education." Includes any of the

following:

(1) A community college operating under Article XIX-A.

(2) A university within the State System of Higher

Education established under Article XX-A.

(3) An institution designated as "State-related" by the

Commonwealth.

(4) The Thaddeus Stevens College of Technology, the

Pennsylvania College of Technology or any other postsecondary

school, including a career and technical college, vocational

school, trade school or other similar institution, which

awards academic degrees or professional certifications.

"Program." The Student Loan Forgiveness Program established

under section 2002-L.

"Secretary." The Secretary of Education of the Commonwealth.

Section 2002-L. Student Loan Forgiveness Program.

(a) Establishment.--The Student Loan Forgiveness Program is

established.

(b) Administration.--The department shall administer the

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program for the purpose of providing education benefits for

benefit recipients.

education benefits for the purposes of forgiving a portion of

the benefit recipient's student loans, based on the following

schedule:

(1) $5,000 for benefit recipients with an annual gross

income of less than $50,000.

(2) $4,000 for benefit recipients with an annual gross

income of at least $50,000 but less than $60,000.

(3) $3,000 for benefit recipients with an annual gross

income of at least $60,000 but less than $65,000.

(4) $2,000 for benefit recipients with an annual gross

income of at least $65,000 but less than $70,000.

(5) $1,000 for benefit recipients with an annual gross

income of at least $70,000 but less than $75,000.

(d) Death or disability.--Upon the benefit recipient's death

or total or permanent disability, the department shall not be

required to provide an education benefit under the program.

(e) Termination due to felony.--The department may terminate

an education benefit and demand repayment of the education

benefit if the benefit recipient is convicted of or pleads

guilty or no contest to a felony.

Section 2003-L. Tax applicability.

Education benefits received under this article shall not be

considered taxable income for purposes of Article II of the act

of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of

1971.

Section 2004-L. Annual reporting.

(a) General requirement.--By September 1, 2022, and each

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September 1 thereafter, the department shall prepare a report

regarding the operation of the program for the immediately

preceding fiscal year.

(b) Contents.--A report under this section shall include

information regarding the operation of the program, including:

(1) The number and amount of education benefits provided

in each income category.

(2) The number of benefit recipients participating in

the program in each income category.

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

the department regarding the implementation of the program.

this section 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

Education Committee of the Senate.

(5) The chairperson and minority chairperson of the

Education Committee of the House of Representatives.

Section 2005-L. Funding for program.

(a) Appropriation.--The sum of $100,000,000 is appropriated

to the department from money received by the Commonwealth under

the American Rescue Plan Act of 2021 (Public Law 117-2, 135

Stat. 4), for the purpose of providing education benefits to

benefit recipients.

(b) Sufficiency of money.--Education benefits under this

article shall be made only to the extent that money is

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appropriated for the program and is sufficient to cover the

administration of the program.

under this article shall not constitute an entitlement derived

from the Commonwealth or a claim on any money of the

Commonwealth.

Section 2006-L. Rules and regulations.

The department shall adopt or promulgate any necessary rules

or regulations to administer this article.

Section 2. This act shall take effect in 90 days.

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