PRINTER'S NO. 382
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
394
Session of
2021
INTRODUCED BY SCHWANK, FONTANA, SANTARSIERO, COSTA AND COMITTA,
MARCH 11, 2021
REFERRED TO LAW AND JUSTICE, MARCH 11, 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 police academy loan and
stipend 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
POLICE ACADEMY LOAN AND STIPEND ASSISTANCE
SUBARTICLE A
PRELIMINARY PROVISIONS
Section 2201-C. Scope of article.
This article provides loan and stipend assistance for police
academy instruction to residents of this Commonwealth who are
part of a group of individuals who have been historically
underrepresented to increase diversity in law enforcement in
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
this Commonwealth.
Section 2202-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.
"Certification." As defined in 37 Pa. Code ยง 203.1 (relating
to definitions).
"Commission." The Municipal Police Officers' Education and
Training Commission.
"Disqualifying criminal offense." As defined in 37 Pa. Code
ยง 203.1.
"Eligible individual." An individual who:
(1) is part of a group of individuals who have
historically been underrepresented; and
(2) meets the requirements of 37 Pa. Code ยง 203.11
(relating to qualifications).
"Guarantor." An insurance company or not-for-profit
guarantor that provides default coverage and loss prevention
services to an offeror of unsecured student loans.
"Offeror." An institution that makes unsecured loans to
students in cooperation with the agency.
"Police academy program." A basic police training course
that complies with the requirements of 37 Pa. Code Ch. 203
(relating to administration of the program) and offered by a
training school or academy.
"Program." The Pennsylvania Police Academy Loan Assistance
Program established under section 2211-C.
"Training school or academy." A training school or academy
20210SB0394PN0382 - 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
that is certified by the commission to provide basic police
training courses.
"Work requirement for officers." Postcertification and full-
time employment in law enforcement for a law enforcement agency
in this Commonwealth. The term does not include volunteer
service or employment before graduation.
SUBARTICLE B
PENNSYLVANIA POLICE ACADEMY LOAN ASSISTANCE
Section 2211-C. Pennsylvania Police Academy Loan Assistance
Program.
The Pennsylvania Police Academy Loan Assistance Program is
established within the Pennsylvania Higher Education Assistance
Agency. The agency shall establish and administer the program
in accordance with this article to provide financial assistance
to eligible individuals who acquire certification and to recruit
the individuals to serve in law enforcement in this
Commonwealth.
Section 2212-C. Loan guarantor services.
(a) Administration.--The agency shall administer loan
guarantor services under the program on a Statewide basis. The
agency shall utilize funds in the Police Academy Loan Assistance
Account established under section 2231-C to provide loan
guarantor services for the purpose of encouraging eligible
individuals to attend a police academy program.
(b) Services.--The loan guarantor services under subsection
(a) shall provide for all of the following:
(1) Life of loan services.
(2) Contracting for insurance with a guarantor, approved
by the agency, which offers a low-cost loan with competitive
interest rates and loan fees to eligible individuals.
20210SB0394PN0382 - 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
(3) Predetermining the eligibility of individuals who
receive a loan from an offeror to attend a police academy
program that is insured by a guarantor.
(4) Evaluating the benefit package of a guarantor for
adequacy, accessibility and availability of funds necessary
to provide adequate loss prevention.
(c) Applications.--An eligible individual may apply to an
offeror for a loan under the program to attend a police academy
program. A loan issued under the program shall:
(1) be guaranteed by an approved guarantor through a
contract with the agency; and
(2) provide reduced interest rates and loan fees to
eligible individuals compared to loans made for the same
purpose that are not guaranteed under the program.
(d) Coverage.--A loan issued under the program shall cover
up to 100% of the actual cost of tuition and fees for a police
academy program.
(e) Failure to repay.--If a loan recipient under the program
fails to repay the loan, the agency shall collect the loan in
accordance with any of the following:
(1) Section 4.3 of the act of August 7, 1963 (P.L.549,
No.290), referred to as the Pennsylvania Higher Education
Assistance Agency Act.
(2) A process established by the loan guarantor.
(3) Any other collection procedure or process deemed
appropriate by the agency.
Section 2213-C. Loan forgiveness services.
(a) Administration.--The agency shall administer loan
forgiveness services for eligible individuals under the program.
The agency may provide loan forgiveness as specified under
20210SB0394PN0382 - 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
subsection (b) for eligible individuals under the program who
enter into a contract with the agency to agree to serve in law
enforcement in this Commonwealth.
(b) Forgiveness.--The agency may forgive federally insured
loans under the program and administered by the agency in
accordance with the following:
(1) The agency may forgive 100% of the loan if the loan
recipient enters into a contract with the agency that
requires the loan recipient, upon completing a police academy
program and receiving a certification from the commission, to
serve in law enforcement in this Commonwealth for a period of
not less than seven consecutive years.
(2) Loan forgiveness provided under the program shall be
forgiven over a period of seven years at an annual rate of
14.29% of the award and shall be made from funds appropriated
for the purpose of loan forgiveness under this section.
(c) Contracts.--The contract entered into with the agency
under subsection (b)(1) shall be considered a contract with the
Commonwealth and shall include the following terms:
(1) Within six months after completing a police training
program and receipt of certification from the commission, the
loan recipient shall serve in law enforcement in this
Commonwealth according to the terms of the loan forgiveness
award.
(2) The loan recipient shall agree to serve in law
enforcement on a full-time basis.
(3) The loan recipient shall permit the agency to
determine compliance with the work requirement for officers
and all other terms of the contract.
(4) Upon the loan recipient's death or total or
20210SB0394PN0382 - 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
permanent disability, the agency shall nullify the service
obligation of the loan recipient.
(5) If the loan recipient is convicted of, or pleads
guilty or no contest to, a disqualifying criminal offense or
if the commission revokes the loan recipient's certification
pursuant to 37 Pa. Code ยง 203.14 (relating to revocation of
certification), the agency may terminate the loan recipient's
eligibility for loan forgiveness and demand repayment of the
amount of the loan forgiveness as of the date of the
conviction, guilty plea, no contest plea or revocation of
certification.
(6) If the loan recipient fails to begin or complete the
obligations under the contract, the loan recipient shall pay
to the agency the amount of the loan forgiveness received
under the terms of the contract.
(7) If the loan recipient provides a false information
or misrepresentation on a loan application or verification of
loan service, the loan shall be considered in default and the
time of default shall be determined by the agency.
Notwithstanding 42 Pa.C.S. ยง 8127 (relating to personal
earnings exempt from process), the agency may seek
garnishment of wages in order to collect the amount of the
loan forgiveness after a default of the loan under this
paragraph.
SUBARTICLE C
PENNSYLVANIA POLICE ACADEMY STIPENDS
Section 2221-C. Stipends to loan recipients.
(a) Establishment.--The agency shall provide educational
stipends under the program to loan recipients who attend a
police academy program.
20210SB0394PN0382 - 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
(b) Amount.--A loan recipient may receive a stipend under
the program of up to $600 per week during enrollment and
attendance at a training school or academy for no more than 28
weeks.
Section 2222-C. Eligibility for stipends.
To be eligible for a stipend under the program, a loan
recipient shall meet all of the following criteria:
(1) Have received a loan under the program.
(2) Be enrolled in and attending a police academy
program.
(3) Enter into a contract with the agency as provided
under section 2224-C.
Section 2223-C. Payment and availability of stipends.
(a) Payments.--A stipend under the program shall be paid to
an eligible individual who has submitted an application to the
agency for the stipend and has received an approval of the
application by the agency. An eligible individual may not
receive a stipend under the program for more than 28 weeks
during the period of enrollment in a police academy program.
(b) Availability.--If the agency determines that the amount
available for stipends under the program in any year is
insufficient to provide stipends in the amount and duration
specified under section 2221-C(b), the agency may take any of
the following actions:
(1) Place a cap on the number of recipients eligible to
receive stipends.
(2) Adjust the amount of the stipends.
Section 2224-C. Stipend contracts.
(a) Eligibility.--To be eligible for a stipend under the
program, an eligible individual shall enter into a contract with
20210SB0394PN0382 - 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
the agency that requires the eligible individual, upon
successful completion of a police academy program and receipt of
certification from the commission, to serve in law enforcement
in this Commonwealth for a period of not less than seven
consecutive years.
(b) Terms of contract.--The contract entered into with the
agency under subsection (a) shall be considered a contract with
the Commonwealth and shall include the following terms:
(1) The stipend recipient shall enroll in, attend and
successfully complete a police academy program.
(2) Within six months after successful completion of the
police academy program and receipt of certification from the
commission, the stipend recipient shall serve in law
enforcement on a full-time basis in this Commonwealth for a
period of not less than seven consecutive years.
(3) The stipend recipient shall permit the agency to
determine compliance with the work requirement for officers
and all other terms of the contract.
(4) Upon the stipend recipient's death or total or
permanent disability, the agency shall nullify the service
obligation of the stipend recipient.
(5) If the stipend recipient is convicted of, or pleads
guilty or no contest to, a disqualifying criminal offense or
the commission revokes the stipend recipient's certification
under 37 Pa. Code ยง 203.14 (relating to revocation of
certification), the agency may terminate the stipend
recipient's service in the program and demand repayment of
the total amount of the stipend payments as of the date of
the conviction, guilty plea, no contest plea or revocation.
(6) If a stipend recipient fails to begin or complete
20210SB0394PN0382 - 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
the obligations under the contract, the stipend recipient
shall pay to the agency the amount of the stipend received
under the terms of the contract.
(7) If the stipend recipient provides false information
or a misrepresentation on a stipend application or
verification of stipend payments, the stipend shall be
considered in default. Notwithstanding 42 Pa.C.S. ยง 8127
(relating to personal earnings exempt from process), the
agency may seek garnishment of wages in order to collect the
amount of stipend payments in default.
Section 2225-C. Adjustment of stipend amounts.
Beginning January 1, 2022, and every two years thereafter,
the agency may adjust, by submitting a notice to the Legislative
Reference Bureau for publication in the Pennsylvania Bulletin,
the amounts of the stipends under the program by an amount equal
to the percentage change in the Consumer Price Index in the
preceding two years if agency finds sufficient funds are
appropriated and available to pay for the adjusted stipends.
SUBARTICLE D
POLICE ACADEMY LOAN ASSISTANCE ACCOUNT
Section 2231-C. Police Academy Loan Assistance Account.
The Police Academy Loan Stipend Account is established within
the General Fund to receive funds appropriated for purposes
specified under this subarticle. Money in the account is
appropriated on a continuing basis to the agency for the
program.
SUBARTICLE E
MISCELLANEOUS PROVISIONS
Section 2241-C. Tax applicability.
Loan forgiveness repayments received by a loan recipient
20210SB0394PN0382 - 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
under section 2213-C and stipends received by a stipend
recipient under section 2221-C 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 of 1971.
Section 2242-C. Report.
(a) Compilation.--The agency shall compile a report by
December 31, 2022. The report shall include information
regarding the operation of the program, including all of the
following:
(1) The number and amount of loan guarantees and loan
contracts executed for loan recipients.
(2) The number and amount of loan forgiveness contracts
executed for loan recipients.
(3) The number of defaulted loan forgiveness contracts,
reported by cause.
(4) The number and amount of stipends and stipend
contracts executed for stipend recipients.
(5) The number and type of enforcement actions taken by
the agency.
(b) Submission.--The agency shall submit the report to all
of the following:
(1) The Governor.
(2) The chair and minority chair of the Appropriations
Committee of the Senate.
(3) The chair and minority chair of Education Committee
of the Senate.
(4) The chair and minority chair of the Law and Justice
Committee of the Senate.
(4) The chair and minority chair of the Appropriations
Committee of the House of Representatives.
20210SB0394PN0382 - 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
(5) The chair and minority chair of the Education
Committee of the House of Representatives.
(6) The chair and minority chair of the Judiciary
Committee of the House of Representatives.
Section 2243-C. Appeals.
The provisions of this article shall be subject to 22 Pa.
Code Ch. 121 (relating to student financial aid).
Section 2244-C. Regulations.
The agency shall promulgate regulations and adopt procedures
necessary to administer the provisions of this article.
Section 2245-C. Funding requirements.
Loan guarantor payments, loan forgiveness repayments and
stipends under the program shall be made only to the extent that
funds are appropriated for that purpose and are sufficient to
cover administration of the program. The receipt of a loan, a
loan forgiveness payment or stipend under the program 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 immediately.
20210SB0394PN0382 - 11 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19