PRINTER'S NO. 1041
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
874
Session of
2023
INTRODUCED BY DILLON, TARTAGLIONE, KANE, FONTANA, SCHWANK,
COSTA, BREWSTER AND COMITTA, AUGUST 16, 2023
REFERRED TO EDUCATION, AUGUST 16, 2023
AN ACT
Providing for Commonwealth support for a Mental Health and
Intellectual Disability Staff Member Loan Forgiveness Program
and an Alcohol and Drug Addiction Counselor Loan Forgiveness
Program; 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 Mental Health
and Intellectual Disability Staff Member Loan Forgiveness
Program and Alcohol and Drug Addiction Counselor Loan
Forgiveness Program Act.
Section 2. Findings and declaration of purpose.
The General Assembly finds and declares that:
(1) Community-based mental health, intellectual
disability and alcohol and drug addiction treatment services
offer lifelong supports and opportunities for a meaningful
quality of life, in fulfillment of Federal and State laws.
(2) Treatment of alcohol and other drug addiction is a
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
crucial investment in health care, in the stability of
families and in protecting the public safety.
(3) A qualified and stable work force is the key to
quality community mental health and intellectual disability
services and to quality alcohol and drug addiction counseling
services.
(4) The pool of qualified staff members has diminished.
(5) The number of college students planning to enter the
mental health and intellectual disability profession or the
alcohol and drug addiction counseling profession appears to
be inadequate to meet the need for staff members in this
Commonwealth.
(6) Demand from industry and other opportunities attract
potential staff members away from these professions.
(7) Payment of a portion of student loans for mental
health and intellectual disability staff members or alcohol
and drug addiction counselors serves the important public
purpose of encouraging new staff members to pursue careers in
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
Agency.
"Counselor." A counselor assistant, counselor or clinical
supervisor who qualifies for the Alcohol and Drug Addiction
Counselor Loan Forgiveness Program.
"Licensed alcohol and drug addiction treatment facility." An
alcohol or drug addiction treatment facility licensed by the
20230SB0874PN1041 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Department of Drug and Alcohol Programs to provide addiction
treatment services.
"Qualified counselor applicant." A person applying for the
Alcohol and Drug Addiction Counselor Loan Forgiveness Program
who meets the following criteria:
(1) Is a resident of this Commonwealth.
(2) Has successfully completed a two-year or four-year
academic degree or diploma or graduate level academic degree
or diploma at an accredited college or university.
(3) Has been hired as a full-time counselor by a
licensed alcohol and drug addiction treatment facility.
(4) Has successfully completed the first six months of
full-time employment as a counselor at a licensed alcohol and
drug addiction treatment facility and remains in good
standing with the facility.
(5) Has borrowed through and has a current outstanding
balance with guaranteed Stafford or consolidation loan
programs administered by the agency.
"Qualified staff member applicant." A person applying for
the Mental Health and Intellectual Disability Staff Member Loan
Forgiveness Program who meets all of the following criteria:
(1) Is a resident of this Commonwealth.
(2) Has successfully completed a two-year or four-year
academic degree or diploma or graduate-level academic degree
or diploma at an accredited college or university.
(3) Has been hired as a full-time staff member by a
county mental health or intellectual disability service
agency within this Commonwealth through a merit or civil
service system approved by the Secretary of Human Services or
by a private provider that is under contract with either a
20230SB0874PN1041 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
county within this Commonwealth to provide mental health or
intellectual disability services or the Department of Human
Services to provide behavioral health rehabilitation services
to individuals with developmental disabilities.
(4) Has successfully completed the first six months of
full-time employment as a staff member at a county mental
health or intellectual disability service agency within this
Commonwealth or a private provider under contract with either
a county within this Commonwealth or the Department of Human
Services and remains in good standing with the service agency
within this Commonwealth or private provider.
(5) Performs staff duties at a county mental health or
intellectual disability service agency within this
Commonwealth or at a private provider within this
Commonwealth that is under contract with either a county to
provide mental health or intellectual disability services or
the Department of Human Services to provide behavioral health
rehabilitation services to individuals with developmental
disabilities.
(6) Has borrowed through and has a current outstanding
balance with the guaranteed Stafford or consolidation loan
programs administered by the agency.
(7) Agrees to work in the field for not less than four
years.
"Recipient." An individual who enters into a contract under
section 5 or 6.
"Staff member." A caseworker, direct support professional,
therapist, program coordinator or director who qualifies for the
Mental Health and Intellectual Disability Staff Member Loan
Forgiveness Program.
20230SB0874PN1041 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Section 4. Establishment.
The Mental Health and Intellectual Disability Staff Member
Loan Forgiveness Program and the Alcohol and Drug Addiction
Counselor Loan Forgiveness Program are established within the
agency to aid in the payment of a portion of student loans for
mental health and intellectual disability staff members or
alcohol and drug addiction counselors employed within this
Commonwealth.
Section 5. Mental Health and Intellectual Disability Staff
Member Loan Forgiveness Program.
(a) Components.--Components shall be as follows:
(1) A qualified staff member applicant who is selected
for the Mental Health and Intellectual Disability Staff
Member Loan Forgiveness Program in accordance with this act
shall be eligible for payment by the agency of a portion of
the debt incurred by the qualified staff member applicant
through the guaranteed Stafford or consolidation loan
programs administered by the agency for the education
necessary to be a mental health or intellectual disability
professional in this Commonwealth if the qualified staff
member applicant enters into a contract with the agency that
requires the recipient to remain employed as a full-time
mental health or intellectual disability professional in this
Commonwealth for a period of two consecutive years.
(2) The agency may forgive a proportional part of the
qualified staff member applicant's loan so that the loan may
be entirely forgiven over four years of full-time staff work.
No more than $6,250 shall be forgiven in any year, and not
more than $25,000 shall be forgiven for any qualified staff
member applicant.
20230SB0874PN1041 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(3) Payments shall be made in accordance with the
procedures established by the agency.
(4) The contract entered into with the agency under
paragraph (1) shall be considered a contract with the
Commonwealth and shall include the following terms:
(i) The recipient shall agree to be employed by a
county mental health or intellectual disability service
agency located within this Commonwealth or by a private
provider of mental health or intellectual disability
services for a period of not less than four years in the
field.
(ii) The recipient shall permit the agency to
determine compliance with the work requirement and the
other terms of the contract.
(iii) Upon the recipient's death or total or
permanent disability, the agency shall nullify the
service obligation of the recipient.
(iv) If the recipient is convicted of or pleads
guilty or no contest to a felony, the agency shall have
the authority to terminate the recipient's service in the
program and demand repayment of the amount of the loan as
of the date of the conviction.
(v) Recipients who fail to begin or complete the
obligations contracted for shall pay to the agency the
amount of the loan received under the terms of the
contract under this section. Providing false information
or misrepresentation on an application or verification of
service shall be deemed a default. Determination as to
the time of the default shall be made by the agency.
(b) Limitations.--A loan forgiveness award under this act
20230SB0874PN1041 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
shall not be made for a loan that is in default at the time of
the application. Loan forgiveness provided under the provisions
of this act shall not be concurrently awarded to an individual
in receipt of another Commonwealth-provided loan forgiveness
program.
Section 6. Alcohol and Drug Addiction Counselor Loan
Forgiveness Program.
(a) Components.--Components shall be as follows:
(1) A qualified counselor applicant who is selected for
the Alcohol and Drug Addiction Counselor Loan Forgiveness
Program in accordance with this act shall be eligible for
payment by the agency of a portion of the debt incurred by
the qualified counselor applicant through the guaranteed
Stafford or consolidation loan programs administered by the
agency for the education necessary to be an alcohol and drug
addiction counseling professional in this Commonwealth if the
qualified counselor applicant enters into a contract with the
agency that requires the recipient to remain employed as a
full-time alcohol and drug addiction counseling professional
in this Commonwealth for a period of two consecutive years.
(2) The agency may forgive a proportional part of the
qualified counselor applicant's loan so that the loan may be
entirely forgiven over four years of full-time staff work. No
more than $6,250 shall be forgiven in any year, and not more
than $25,000 shall be forgiven for any qualified counselor
applicant.
(3) Payments shall be made in accordance with the
procedures established by the agency.
(4) The contract entered into with the agency under
paragraph (1) shall be considered a contract with the
20230SB0874PN1041 - 7 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Commonwealth and shall include the following terms:
(i) The recipient shall agree to be employed by a
licensed alcohol and drug addiction treatment facility
located within this Commonwealth for a period of not less
than four years in the field.
(ii) The recipient shall permit the agency to
determine compliance with the work requirement and all
other terms of the contract.
(iii) Upon the recipient's death or total or
permanent disability, the agency shall nullify the
service obligation of the recipient.
(iv) If the recipient is convicted of or pleads
guilty or no contest to a felony, the agency shall have
the authority to terminate the recipient's service in the
program and demand repayment of the amount of the loan as
of the date of the conviction.
(v) Recipients who fail to begin or complete the
obligations contracted for shall pay to the agency the
amount of the loan received under the terms of the
contract under this section. Providing false information
or misrepresentation on an application or verification of
service shall be deemed a default. Determination as to
the time of the default shall be made by the agency.
(b) Limitation.--A loan forgiveness award under this act
shall not be made for a loan that is in default at the time of
the application. Loan forgiveness provided under the provisions
of this act shall not be concurrently awarded to an individual
in receipt of another Commonwealth-provided loan forgiveness
program.
Section 7. Tax applicability.
20230SB0874PN1041 - 8 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Loan forgiveness repayments by a student 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 8. Annual report.
(a) Development of report.--The agency shall publish a
report by October 1, 2023, and every year thereafter for the
immediately preceding fiscal year. The report shall include
information regarding the operation of the Mental Health and
Intellectual Disability Staff Member Loan Forgiveness Program
and the Alcohol and Drug Addiction Counselor Loan Forgiveness
Program, including:
(1) The number and amount of mental health and
intellectual disability staff member and alcohol and drug
addiction counselor contracts executed and renewed for mental
health and intellectual disability staff member loan
forgiveness applicants and alcohol and drug addiction
counselor loan forgiveness applicants.
(2) The number of defaulted mental health and
intellectual disability staff member and alcohol and drug
addiction counselor contracts, reported by cause.
(3) The number of full-time staff employees of mental
health and intellectual disability service agencies, the
number of full-time staff employees of private providers and
the number of full-time staff employees of licensed alcohol
and drug addiction facilities participating in the program,
reported by type of institution attended, including four-year
educational institutions, community colleges and independent
two-year colleges.
(4) The number and type of enforcement actions taken by
20230SB0874PN1041 - 9 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
the agency.
(b) Submission.--The annual report under subsection (a)
shall be submitted to the Governor, the chair and minority chair
of the Appropriations Committee of the Senate, the chair and
minority chair of the Appropriations Committee of the House of
Representatives, the chair and minority chair of the Education
Committee of the Senate, the chair and minority chair of the
Education Committee of the House of Representatives, the chair
and minority chair of the Health and Human Services Committee of
the Senate and the chair and minority chair of the Human
Services Committee of the House of Representatives.
Section 9. Appeals.
The provisions of this act shall be subject to 22 Pa. Code
Ch. 121 (relating to student financial aid).
Section 10. Loan forgiveness awards.
(a) Qualified recipients.--Recipients of loan forgiveness
awards under this act shall be those qualified staff member
applicants or qualified counselor applicants who are working in
and who have received a satisfactory rating from:
(1) a county office of mental health or intellectual
disability service within this Commonwealth;
(2) a private provider within this Commonwealth under
contract with a county within this Commonwealth or the
Department of Human Services; or
(3) a licensed alcohol and drug addiction treatment
facility.
(b) Documentation required.--Mental health or intellectual
disability staff members or alcohol and drug addiction
counselors shall submit such documentation of eligibility as the
agency may require, including documentation to indicate full-
20230SB0874PN1041 - 10 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
time employment, as full-time employment is defined by a county
office, a private provider or a licensed alcohol or drug
addiction treatment facility. The documentation shall be
presented to the agency in the form of a letter from the
applicant's employer stating that the applicant is employed by
the mental health or intellectual disability service provider or
a licensed alcohol and drug addiction treatment facility and
that the applicant performs the applicant's duties in a
satisfactory manner.
Section 11. Funding.
Loan forgiveness awards under this act may be made to the
extent that funds are appropriated by the General Assembly and
are sufficient to cover the administration of the programs. In
the event that funding is insufficient to fully fund
administration, recipients and all eligible applicants, priority
shall be given to renewal recipients. After the renewal
recipients are fully funded, the agency shall utilize a random
lottery system for determining which applicants receive loan
forgiveness awards.
Section 12. Responsibility of agency.
The agency shall administer programs established by this act
and shall adopt regulations, policies, procedures and forms as
are necessary and consistent with the provisions of this act.
Section 13. Effective date.
This act shall take effect in 60 days.
20230SB0874PN1041 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25