PRINTER'S NO. 1728
No. 1381 Session of 2007
INTRODUCED BY SIPTROTH, BELFANTI, BISHOP, CALTAGIRONE, CARROLL, CAUSER, COHEN, CURRY, DeLUCA, FABRIZIO, FREEMAN, GEORGE, GIBBONS, GRUCELA, HARHAI, HENNESSEY, HUTCHINSON, JAMES, JOSEPHS, W. KELLER, KILLION, KORTZ, KOTIK, LEACH, MAHONEY, MANDERINO, MANN, McILHATTAN, MOYER, MUNDY, MURT, MYERS, PEIFER, PETRONE, PRESTON, READSHAW, REICHLEY, SANTONI, SCAVELLO, K. SMITH, SOLOBAY, WANSACZ, J. WHITE AND YOUNGBLOOD, MAY 29, 2007
REFERRED TO COMMITTEE ON EDUCATION, MAY 29, 2007
AN ACT 1 Establishing the Child Welfare Workers Loan Forgiveness Program 2 for Commonwealth residents who graduate from institutions of 3 higher education and who apply their degrees to careers in 4 child welfare work. 5 The General Assembly of the Commonwealth of Pennsylvania 6 hereby enacts as follows: 7 Section 1. Short title. 8 This act shall be known and may be cited as the Child Welfare 9 Workers Loan Forgiveness Act. 10 Section 2. Declaration of purpose. 11 The primary purpose of a child welfare loan forgiveness 12 program is to attract capable and promising students to the 13 child welfare profession and to increase employment and 14 retention of individuals who are working towards or who have 15 received either a bachelor's degree or a master's degree in 16 social work, psychology or sociology.
1 Section 3. Definitions. 2 The following words and phrases when used in this act shall 3 have the meanings given to them in this section unless the 4 context clearly indicates otherwise: 5 "Certified child welfare employer." An agency certified by 6 the Pennsylvania Higher Education Assistance Agency as employing 7 child welfare workers as provided for under section 4(c). 8 "Child welfare worker." A staff person who holds a 9 bachelor's, master's or doctorate degree in the field of social 10 work, psychology or sociology and is employed by a public or 11 private agency serving dependent children or those children who 12 have been referred for child welfare services and who works in 13 any of the following functional areas: family preservation, 14 family support, children's protective services, including on- 15 call, investigative assessment and case planning and case 16 management, and foster care and adoption, including placement of 17 children, recruitment of families, licensing and adoption 18 assessment. 19 "PHEAA." The Pennsylvania Higher Education Assistance 20 Agency. 21 "Program." The Child Welfare Workers Loan Forgiveness 22 Program established under section 4. 23 "Qualified applicant." A person who meets all of the 24 following criteria: 25 (1) Is a resident of this Commonwealth. 26 (2) Has successfully completed a bachelor's, master's or 27 doctorate degree in the field of social work, psychology or 28 sociology at an accredited institution of higher education. 29 (3) Has been hired as a full-time employee of a 30 certified child welfare employer. 20070H1381B1728 - 2 -
1 (4) Has borrowed through and has a current outstanding 2 balance on a Federal Stafford, Graduate PLUS or Consolidation 3 Loan Programs administered by the Pennsylvania Higher 4 Education Assistance Agency. 5 Section 4. Child Welfare Workers Loan Forgiveness Program. 6 (a) Establishment.--The Child Welfare Workers Loan 7 Forgiveness Program is hereby established. PHEAA shall 8 administer the program. 9 (b) Nature of program.--For each year that a qualified 10 applicant is employed by a certified child welfare employer, 11 PHEAA may forgive a proportional part of the applicant's student 12 loan so that the loan may be partially or entirely forgiven. 13 (c) Employer eligibility.--Eligible certified child welfare 14 employers for purposes of the program shall include county 15 children and youth agencies charged with enforcing 23 Pa.C.S. 16 Ch. 63 (relating to child protective services) and private 17 providers who serve youth who have been adjudicated dependent or 18 delinquent and other entities as determined by PHEAA. 19 (d) Limitations.-- 20 (1) For qualified applicants with an undergraduate 21 degree, no more than $2,500 shall be forgiven in any one 22 year, and no more than $10,000 shall be forgiven for any one 23 qualified applicant. 24 (2) For qualified applicants with both an undergraduate 25 degree and either a master's or doctorate degree, no more 26 than $5,000 shall be forgiven in any one year, and no more 27 than $20,000 shall be forgiven for any one qualified 28 applicant. 29 (3) PHEAA shall establish procedures for making payments 30 to qualified applicants. 20070H1381B1728 - 3 -
1 (4) No qualified applicant may receive a larger amount 2 of forgiveness than the outstanding balance the applicant has 3 with the Guaranteed Stafford or Consolidation Loan Programs 4 administered by PHEAA. 5 (e) Eligibility.--A qualified applicant shall be eligible 6 for loan forgiveness regardless of whether the applicant's 7 outstanding loan balance is acquired before or after the date of 8 the effective date of this section and no loan forgiveness shall 9 be given for years of service before the date of this section. 10 Section 5. Qualifications for loan forgiveness awards. 11 (a) Application.--PHEAA shall establish procedures for 12 qualified applicants to apply and be approved for participation 13 in the program. 14 (b) Employment.--Recipients of loan forgiveness awards must 15 be full-time employees of a certified child welfare employer who 16 maintain satisfactory employment with the organization and agree 17 to continue employment with a certified child welfare employer 18 for a least three years after the end of their participation in 19 the program. 20 (c) Documentation.--PHEAA may require qualified applicants 21 who are participating in the program to submit documentation in 22 order to maintain continued eligibility for the program. 23 Section 6. Funding. 24 Loan forgiveness awards under this act may be made to the 25 extent that funds are appropriated by the General Assembly or 26 available from other sources and are sufficient to cover the 27 administration of the program. In the event that funding is 28 insufficient to fully fund administration and all eligible 29 applicants, priority shall be given to renewal applicants. 30 Thereafter, PHEAA shall utilize a random lottery system for 20070H1381B1728 - 4 -
1 determining which applicants receive loan forgiveness awards. 2 Section 7. Tax applicability. 3 Loan forgiveness repayments shall not be considered taxable 4 income for purposes of Article III of the act of March 4, 1971 5 (P.L.6, No.2), known as the Tax Reform Code of 1971. 6 Section 8. Annual report. 7 (a) Development of report.--PHEAA shall publish a report by 8 October 1, 2008, and every year thereafter for the immediately 9 preceding fiscal year. The report shall provide information 10 regarding the operation of the program, including: 11 (1) The number and amount of child welfare worker loan 12 forgiveness grants issued and renewed for qualified 13 applicants. 14 (2) The number and type of enforcement actions taken by 15 the agency. 16 (b) Submission.--The annual report shall be submitted to the 17 Governor, the chair and minority chair of the Appropriations 18 Committee of the Senate, the chair and minority chair of the 19 Appropriations Committee of the House of Representatives, the 20 chair and minority chair of the Education Committee of the 21 Senate, the chair and minority chair of the Education Committee 22 of the House of Representatives, the chair and minority chair of 23 the Public Health and Welfare Committee of the Senate and the 24 chair and minority chair of the Health and Human Services 25 Committee of the House of Representatives. 26 Section 9. Responsibility of PHEAA. 27 PHEAA shall administer the program and shall adopt such 28 regulations, policies, procedures and forms as are necessary and 29 not inconsistent with the provisions of this act. 30 Section 10. Effective date. 20070H1381B1728 - 5 -
1 This act shall take effect in 60 days. C15L67AJM/20070H1381B1728 - 6 -