PRIOR PRINTER'S NO. 51 PRINTER'S NO. 2108
No. 49 Session of 2005
INTRODUCED BY PETRONE, SOLOBAY, COHEN, LEACH, GOODMAN, BROWNE, PETRARCA, LEDERER, JAMES, HARPER, DALLY, TIGUE, PISTELLA, TANGRETTI, BISHOP, STURLA, REICHLEY, CRAHALLA, GRUCELA, McGEEHAN, LaGROTTA, McCALL, BELARDI, WATSON, HERMAN, HENNESSEY, KOTIK, McILHATTAN, FRANKEL, YUDICHAK, GEORGE, READSHAW, CORRIGAN, BEBKO-JONES, STABACK, LEVDANSKY, WILT, MUSTIO, THOMAS, DeLUCA, GERGELY, MELIO, CAPPELLI, MANN, REED, WALKO, CURRY, CAUSER, KIRKLAND, LESCOVITZ, COSTA, SAINATO, TURZAI, DiGIROLAMO, PRESTON, SHANER, MANDERINO, CASORIO, CALTAGIRONE, PALLONE, WHEATLEY, BUNT, McGILL, HUTCHINSON, FICHTER, BELFANTI, FABRIZIO, DALEY, FREEMAN, EACHUS, WASHINGTON, JOSEPHS, BENNINGHOFF, MARKOSEK, MAHER, GOOD, MYERS, MUNDY, KAUFFMAN, NAILOR, AND SAMUELSON, JANUARY 25, 2005
AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 7, 2005
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.
1 The General Assembly finds and declares that: 2 (1) Community-based mental health, mental retardation 3 and alcohol and drug addiction treatment services offer 4 lifelong supports and opportunities for a meaningful quality 5 of life, in fulfillment of Federal and State laws. 6 (2) Treatment of alcohol and other drug addiction is a 7 crucial investment in our health care, in the stability of 8 our families and in protecting the public safety. 9 (3) A qualified and stable work force is the key to 10 quality community mental health and mental retardation 11 services and to quality alcohol and drug addiction counseling 12 services. 13 (4) The pool of qualified staff members has diminished. 14 (5) The number of college students planning to enter the 15 mental health and mental retardation or the alcohol and drug 16 addiction counseling professions appears to be inadequate to 17 meet the need for staff members in this Commonwealth. 18 (6) Demand from industry and other opportunities attract 19 potential staff members away from these professions. 20 (7) Payment of a portion of student loans for mental 21 health and mental retardation staff members or alcohol and 22 drug addiction counselors serves the important public purpose 23 of encouraging new staff members to pursue careers in this 24 Commonwealth. 25 Section 3. Definitions. 26 The following words and phrases when used in this act shall 27 have the meanings given to them in this section unless the 28 context clearly indicates otherwise: 29 "Agency." The Pennsylvania Higher Education Assistance 30 Agency. 20050H0049B2108 - 2 -
1 "Counselor." A counselor assistant, counselor or clinical 2 supervisor. 3 "Licensed alcohol and drug addiction treatment facility." An 4 alcohol or drug addiction treatment facility licensed by the 5 Department of Health to provide addiction treatment services. 6 "Qualified alcohol and drug addiction loan forgiveness 7 applicant." A person who meets all of the following criteria: 8 (1) Is a resident of this Commonwealth. 9 (2) Has successfully completed a two-year or four-year 10 academic degree or diploma OR GRADUATE LEVEL ACADEMIC DEGREE <-- 11 OR DIPLOMA at an accredited college or university. 12 (3) Has been hired as a full-time counselor by a 13 licensed alcohol and drug addiction treatment facility. 14 (4) Has successfully completed the first six months of 15 full-time employment as a counselor at a licensed alcohol and 16 drug addiction treatment facility and remains in good 17 standing with the facility. 18 (5) Has borrowed through and has a current outstanding 19 balance with Guaranteed Stafford or Consolidation Loan 20 Programs administered by the Pennsylvania Higher Education 21 Assistance Agency. 22 "Qualified applicant." A qualified mental health and mental 23 retardation loan forgiveness applicant or a qualified alcohol 24 and drug addiction loan forgiveness applicant. 25 "Qualified mental health and mental retardation loan 26 forgiveness applicant." A person who meets all of the following 27 criteria: 28 (1) Is a resident of this Commonwealth. 29 (2) Has successfully completed a two-year or four-year 30 academic degree or diploma OR GRADUATE LEVEL ACADEMIC DEGREE <-- 20050H0049B2108 - 3 -
1 OR DIPLOMA at an accredited college or university. 2 (3) Has been hired as a full-time staff member by a 3 county mental health or mental retardation service agency 4 within this Commonwealth through a merit or civil service 5 system approved by the Secretary of Public Welfare or by a 6 private provider that is under contract with either a county 7 to provide mental health or mental retardation services or 8 the Department of Public Welfare to provide behavioral health 9 rehabilitation services to individuals with developmental 10 disabilities. 11 (4) Has successfully completed the first six months of 12 full-time employment as a staff member at a county mental 13 health or mental retardation service agency or a private 14 provider under contract with either a county or the 15 Department of Public Welfare and remains in good standing 16 with the service agency or private provider. 17 (5) Performs staff duties at a county mental health or 18 mental retardation service agency within this Commonwealth or 19 at a private provider within this Commonwealth that is under 20 contract with either a county to provide mental health or 21 mental retardation services or the Department of Public 22 Welfare to provide behavioral health rehabilitation services 23 to individuals with developmental disabilities. 24 (6) Has borrowed through and has a current outstanding 25 balance with the agency-administered Guaranteed Stafford or 26 Consolidation Loan Programs administered by the Pennsylvania 27 Higher Education Assistance Agency. 28 "Staff member." A caseworker, direct support professional, 29 therapist, program coordinator or director. 30 Section 4. Mental Health and Mental Retardation Staff Member 20050H0049B2108 - 4 -
1 Loan Forgiveness Program. 2 (a) Components.--Components shall be as follows: 3 (1) A qualified applicant who is selected for the Mental 4 Health and Mental Retardation Staff Member Loan Forgiveness 5 Program in accordance with this act shall be eligible for 6 payment by the agency of a portion of the debt incurred by 7 the applicant through the agency-administered Guaranteed 8 Stafford or Consolidation Loan Programs for the education 9 necessary to be a mental health or mental retardation staff 10 member in this Commonwealth if the qualified applicant enters 11 into a contract with the agency that requires the qualified 12 recipient to remain employed as a full-time mental health or 13 mental retardation staff member in this Commonwealth for a 14 period of two consecutive years. 15 (2) The agency may forgive a proportional part of the 16 applicant's loan so that the loan may be entirely forgiven 17 over four years of full-time staff work. No more than $5,000 18 shall be forgiven in any year, and no more than $20,000 shall 19 be forgiven for any applicant. 20 (3) Payments shall be made in accordance with the 21 procedures established by the agency. 22 (4) The contract entered into with the agency pursuant 23 to paragraph (1) shall be considered a contract with the 24 Commonwealth and shall include the following terms: 25 (i) The recipient shall agree to be employed by a 26 county mental health or mental retardation service agency 27 located within this Commonwealth or by a private provider 28 of mental health or mental retardation services. 29 (ii) The recipient shall permit the agency to 30 determine compliance with the work requirement and all 20050H0049B2108 - 5 -
1 other terms of the contract. 2 (iii) Upon the recipient's death or total or 3 permanent disability, the agency shall nullify the 4 service obligation of the recipient. 5 (iv) If the recipient is convicted of or pleads 6 guilty or no contest to a felony, the agency shall have 7 the authority to terminate the recipient's service in the 8 program and demand repayment of the amount of the loan as 9 of the date of the conviction. 10 (v) Loan recipients who fail to begin or complete 11 the obligations contracted for shall pay to the agency 12 the amount of the loan received under the terms of the 13 contract pursuant to this section. Providing false 14 information or misrepresentation on an application or 15 verification of service shall be deemed a default. 16 Determination as to the time of the default shall be made 17 by the agency. 18 (b) Limitations.--A loan forgiveness award shall not be made 19 for a loan that is in default at the time of the application. 20 Loan forgiveness provided under the provisions of this act shall 21 not be awarded to a recipient of another Commonwealth-provided 22 loan forgiveness program concurrently. 23 Section 5. Alcohol and Drug Addiction Counselor Loan 24 Forgiveness Program. 25 (a) Components.--Components shall be as follows: 26 (1) A qualified applicant who is selected for the 27 Alcohol and Drug Addiction Counselor Loan Forgiveness Program 28 in accordance with this act shall be eligible for payment by 29 the agency of a portion of the debt incurred by the applicant 30 through the agency-administered Guaranteed Stafford or 20050H0049B2108 - 6 -
1 Consolidation Loan Programs for the education necessary to be 2 an alcohol and drug addiction counselor in this Commonwealth 3 if the qualified applicant enters into a contract with the 4 agency that requires the qualified recipient to remain 5 employed as a full-time alcohol and drug addiction counselor 6 in this Commonwealth for a period of two consecutive years. 7 (2) The agency may forgive a proportional part of the 8 applicant's loan so that the loan may be entirely forgiven 9 over four years of full-time staff work. No more than $5,000 10 shall be forgiven in any year, and no more than $20,000 shall 11 be forgiven for any applicant. 12 (3) Payments shall be made in accordance with the 13 procedures established by the agency. 14 (4) The contract entered into with the agency pursuant 15 to paragraph (1) shall be considered a contract with the 16 Commonwealth and shall include the following terms: 17 (i) The recipient shall agree to be employed by a 18 licensed alcohol and drug addiction treatment facility 19 located within this Commonwealth. 20 (ii) The recipient shall permit the agency to 21 determine compliance with the work requirement and all 22 other terms of the contract. 23 (iii) Upon the recipient's death or total or 24 permanent disability, the agency shall nullify the 25 service obligation of the recipient. 26 (iv) If the recipient is convicted of or pleads 27 guilty or no contest to a felony, the agency shall have 28 the authority to terminate the recipient's service in the 29 program and demand repayment of the amount of the loan as 30 of the date of the conviction. 20050H0049B2108 - 7 -
1 (v) Loan recipients who fail to begin or complete 2 the obligations contracted for shall pay to the agency 3 the amount of the loan received under the terms of the 4 contract pursuant to this section. Providing false 5 information or misrepresentation on an application or 6 verification of service shall be deemed a default. 7 Determination as to the time of the default shall be made 8 by the agency. 9 (b) Limitation.--A loan forgiveness award under this act 10 shall not be made for a loan that is in default at the time of 11 the application. Loan forgiveness provided under the provisions 12 of this act shall not be concurrently awarded to a recipient of 13 another Commonwealth-provided loan forgiveness program. 14 Section 6. Tax applicability. 15 Loan forgiveness repayments by a student shall not be 16 considered taxable income for purposes of Article II of the act 17 of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 18 1971. 19 Section 7. Annual report. 20 (a) Development of report.--The agency shall publish a 21 report by October 1, 2005, and every year thereafter for the 22 immediately preceding fiscal year. The report shall include 23 information regarding the operation of the program, including: 24 (1) The number and amount of mental health and mental 25 retardation staff member and alcohol and drug addiction 26 counselor contracts executed and renewed for mental health 27 and mental retardation staff member loan forgiveness 28 applicants and alcohol and drug addiction counselor loan 29 forgiveness applicants. 30 (2) The number of defaulted mental health and mental 20050H0049B2108 - 8 -
1 retardation staff member and alcohol and drug addiction 2 counselor contracts, reported by cause. 3 (3) The number of full-time staff employees of mental 4 health and mental retardation service agencies, the number of 5 full-time staff employees of private providers and the number 6 of full-time staff employees of licensed alcohol and drug 7 addiction facilities participating in the program, reported 8 by type of institution attended, including four-year 9 educational institutions, community colleges and independent 10 two-year colleges. 11 (4) The number and type of enforcement actions taken by 12 the agency. 13 (b) Submission.--The annual report shall be submitted to the 14 Governor, the chair and minority chair of the Appropriations 15 Committee of the Senate, the chair and minority chair of the 16 Appropriations Committee of the House of Representatives, the 17 chair and minority chair of the Education Committee of the 18 Senate, the chair and minority chair of the Education Committee 19 of the House of Representatives, the chair and minority chair of 20 the Public Health and Welfare Committee of the Senate and the 21 chair and minority chair of the Health and Human Services 22 Committee of the House of Representatives. 23 Section 8. Appeals. 24 The provision of this act shall be subject to 22 Pa. Code Ch. 25 121 (relating to student financial aid). 26 Section 9. Loan forgiveness awards. 27 Recipients of loan forgiveness awards under this act shall be 28 those mental health and mental retardation staff members or 29 alcohol and drug addiction counselors who are working in and who 30 have received a satisfactory rating from either a county office 20050H0049B2108 - 9 -
1 of mental health or mental retardation service within this 2 Commonwealth, a private provider within this Commonwealth under 3 contract with a county or the Department of Public Welfare or a 4 licensed alcohol and drug addiction treatment facility. Mental 5 health or mental retardation staff members or alcohol and drug 6 addiction counselors shall be required to submit such 7 documentation of eligibility as the agency may require including 8 documentation to indicate full-time employment, as full-time 9 employment is defined by a county office, a private provider or 10 a licensed alcohol or drug addiction treatment facility. The 11 documentation shall be presented to the agency in the form of a 12 letter from the applicant's employer stating that the applicant 13 is employed by the mental health or mental retardation service 14 provider or a licensed alcohol and drug addiction facility and 15 that the applicant performs the applicant's duties in a 16 satisfactory manner. 17 Section 10. Funding. 18 Loan forgiveness awards under this act may be made to the 19 extent that funds are appropriated by the General Assembly and 20 are sufficient to cover the administration of the program. In 21 the event that funding is insufficient to fully fund 22 administration and all eligible applicants, priority shall be 23 given to renewal applicants. Thereafter, the agency shall 24 utilize a random lottery system for determining which applicants 25 receive loan forgiveness awards. 26 Section 11. Responsibility of agency. 27 The agency shall administer the Mental Health and Mental 28 Retardation Staff Member and Alcohol and Drug Addiction 29 Counselor Loan Forgiveness Programs established by this act and 30 shall adopt such regulations, policies, procedures and forms as 20050H0049B2108 - 10 -
1 are necessary and not inconsistent with the provisions of this 2 act. 3 Section 12. Effective date. 4 This act shall take effect in 60 days. A3L24DMS/20050H0049B2108 - 11 -