Regular Session 2019-2020 House Bill 1980 P.N. 2777

PRINTER'S NO. 2777

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1980

Session of

2019

INTRODUCED BY TOOHIL, KAUFER, MURT, SCHLOSSBERG, KINSEY,

ISAACSON, A. DAVIS, DALEY, DeLUCA, McCLINTON, BURGOS,

KENYATTA, CALTAGIRONE, SIMS, HOHENSTEIN, READSHAW, MULLINS

AND T. DAVIS, OCTOBER 23, 2019

REFERRED TO COMMITTEE ON CHILDREN AND YOUTH, OCTOBER 23, 2019

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 child welfare worker

education loan assistance.

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 XXII-C

CHILD WELFARE WORKER EDUCATION LOAN ASSISTANCE

(a) General Provisions.

Section 2201-C. Scope.

This article deals with child welfare worker education loan

assistance.

Section 2202-C. Purpose.

The purpose of this article is to provide an incentive to

Pennsylvania students to pursue higher education and training in

child welfare social work in order to maintain the delivery of

quality services at county child welfare agencies in this

Commonwealth.

Section 2203-C. 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:

"Agency." The Pennsylvania Higher Education Assistance

Agency.

"Approved institution of higher learning." An institution of

higher learning located in this Commonwealth and approved by the

agency.

"Child welfare worker." A person who is employed by a county

agency to perform duties relating to child welfare consistent

with State law.

"County agency." A county child welfare agency in this

Commonwealth.

(b) Program.

Section 2211-C. Pennsylvania Child Welfare Worker Education

Loan Assistance Program.

The agency shall establish and administer the Pennsylvania

Child Welfare Worker Education Loan Assistance Program as

specified in section 2212-C to provide financial assistance to

individuals who acquire the required degree or diploma to be

employed as a child welfare worker.

Section 2212-C. Loan forgiveness program.

(a) Establishment of program.--The agency shall administer a

loan forgiveness program for applicants on a Statewide basis.

The agency may provide loan forgiveness as provided in

20190HB1980PN2777 - 2 -

subsection (b) for recipients of loans who by contract with the

agency agree to be employed as a child welfare worker in this

Commonwealth upon attainment of the required degree.

(b) Loan forgiveness.--Agency-administered, federally

insured student loans for higher education provided to an

applicant may be forgiven by the agency as follows:

(1) The agency may forgive 50% of the loan, not to

exceed $50,000, if a loan recipient enters into a contract

with the agency that requires the recipient upon successful

completion of the required degree to be employed as child

welfare worker in this Commonwealth for a period of not less

than three consecutive years.

(2) Loan forgiveness awards made under paragraph (1)

shall be forgiven over a period of three years at an annual

rate of 33 1/3% of the award and shall be made from funds

appropriated for this purpose.

(3) The contract entered into with the agency pursuant

to paragraph (1) shall be considered a contract with the

Commonwealth and shall include the following terms:

(i) A recipient shall apply for employment as a

child welfare worker at the earliest practicable

opportunity upon successfully completing the required

degree.

(ii) Within six months after completion of the

degree, a recipient shall be employed as a child welfare

worker in this Commonwealth according to the terms of the

loan forgiveness award.

(iii) The recipient shall agree to be employed as a

child welfare worker on a full-time basis.

(iv) The recipient shall permit the agency to

20190HB1980PN2777 - 3 -

determine compliance with the work requirement for child

welfare workers and all other terms of the contract.

(v) Upon the recipient's death or total or permanent

disability, the agency shall nullify the service

obligation of the recipient.

(vi) If the recipient is convicted of or pleads

guilty or no contest to a felony or if the county agency

has determined that the recipient has committed an act of

gross negligence in the performance of service

obligations or has terminated the recipient for cause,

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 or termination.

(vii) Loan 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 pursuant to 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 default shall be made by

the agency.

(4) Notwithstanding 42 Pa.C.S. § 8127 (relating to

personal earnings exempt from process), the agency may seek

garnishment of wages in order to collect the amount of the

loan following default under paragraph (3)(vii).

Section 2213-C. Tax applicability.

Loan forgiveness repayments received by a student 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

20190HB1980PN2777 - 4 -

of 1971.

Section 2221-C. Annual report.

(a) Development of report.--The agency shall publish a

report by September 1, 2020, and every year thereafter for the

immediately preceding fiscal year. The report shall include

information regarding the operation of the program established

under this article, including:

(1) The number and amount of loan contracts executed for

the child welfare worker loan forgiveness program.

(2) The number and amount of child welfare worker loan

forgiveness contracts executed and renewed for applicants.

(3) The number of defaulted child welfare worker loan

forgiveness contracts, reported by cause.

(4) The number of child welfare workers participating in

the child welfare worker loan forgiveness program, reported

by type of institution attended, including four-year

educational institutions, community colleges, independent

two-year colleges, private licensed schools, hospital-based

courses of study and certificate programs.

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

the agency.

(b) Submission.--The annual report shall be submitted to the

Governor, the chairperson and minority chairperson of the

Appropriations Committee of the Senate, the chairperson and

minority chairperson of the Appropriations Committee of the

House of Representatives, the chairperson and minority

chairperson of the Education Committee of the Senate, the

chairperson and minority chairperson of the Education Committee

of the House of Representatives, the chairperson and minority

20190HB1980PN2777 - 5 -

chairperson of the Public Health and Welfare Committee of the

Senate and the chairperson and minority chairperson of the

Health and Human Services Committee of the House of

Representatives.

Section 2222-C. Appeals.

The provisions of this article shall be subject to 22 Pa.

Code Ch. 121 (relating to student financial aid).

Section 2223-C. Regulations.

The agency shall adopt regulations and procedures necessary

to carry out the purposes of this article.

Section 2224-C. Funding.

Loan forgiveness repayments shall be made only to the extent

that funds are appropriated for that purpose and are sufficient

to cover administration of the programs. The receipt of a loan

under this article shall not constitute an entitlement derived

from the Commonwealth or a claim on any funds of the

Commonwealth.

Section 2. This act shall take effect in 60 days.

20190HB1980PN2777 - 6 -