PRINTER'S NO. 679
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
725
Session of
2023
INTRODUCED BY CIRESI, PROBST, HOWARD, T. DAVIS, MADDEN, ROZZI,
GUENST, SANCHEZ, DELLOSO, HILL-EVANS, FIEDLER, PARKER,
CERRATO AND MALAGARI, MARCH 28, 2023
REFERRED TO COMMITTEE ON HUMAN SERVICES, MARCH 28, 2023
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," establishing the Mental Health
Professional Student Loan Forgiveness Program; imposing
powers and duties on the Pennsylvania Higher Education
Assistance Agency; and making an appropriation.
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
MENTAL HEALTH PROFESSIONAL
STUDENT LOAN FORGIVENESS PROGRAM
Section 2201-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:
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"Agency." The Pennsylvania Higher Education Assistance
Agency.
"Mental health field." A profession associated with
completing any of the fields of study enumerated under section
2202-C(b)(2).
"Program." The Mental Health Professional Student Loan
Forgiveness Program established under section 2202-C(a).
"Qualified applicant." An individual who meets all of the
criteria under section 2202-C(b).
"Recipient." A qualified applicant who is selected by the
agency for participation in the program.
Section 2202-C. Mental Health Professional Student Loan
Forgiveness Program.
(a) Establishment.--The Mental Health Professional Student
Loan Forgiveness Program is established within the agency.
(b) Qualifications.--To qualify for the program, an
applicant must make an application to the agency and meet all of
the following criteria:
(1) Be a resident of this Commonwealth.
(2) Have completed at least one-half of the credit hours
needed to earn an undergraduate or master's academic degree
or diploma in social work, counseling, psychology,
psychiatry, nursing or another degree in the human services
field.
(3) Have a recommendation from the faculty of the
employer of which the applicant is employed or, if the
applicant is enrolled in coursework for a degree listed in
paragraph (2), from a professor under whom the applicant has
taken coursework.
(4) Be employed to, or have been hired to, work in the
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mental health field focusing on early childhood through
adolescence.
(c) Program components.--
(1) An application must be made to the agency on or
before the deadline for submittal of the application as
established by the agency for participation in the program.
(2) The application shall contain all of the information
required under subsection (b) and demonstrate that the
applicant satisfies the required criteria.
(3) A qualified applicant may not submit another
application after satisfactorily completing the program,
withdrawing from the program or failing to satisfactorily
comply with the program requirements as determined by the
agency.
(4) A recipient shall be eligible for a financial award
payment by the agency of a portion of the debt incurred by
the recipient through the agency-administered Guaranteed
Stafford or Consolidation Loan Programs if the recipient:
(i) graduates from a university that is part of the
State System of Higher Education with a minimum B average
grade; and
(ii) enters into a contract with the agency that
requires the recipient to remain employed in the mental
health field focusing on early childhood through
adolescence for at least seven years.
(5) The agency may grant an award to the recipient of up
to $22,500 which may be applied directly by the agency to the
recipient's agency-administered Guaranteed Stafford or
Consolidation Loan Program debt balance or, for a recipient
who is currently enrolled at the university, the award may be
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direct cash assistance.
(6) Payment shall be made in accordance with the
procedures established by the agency.
(7) Financial award payment may not be made by the
agency, and an applicant may not be considered a qualified
applicant or participate in the program unless the applicant
contracts for the following terms with the Commonwealth
through the agency:
(i) The applicant must be employed in the mental
health field focusing on early childhood through
adolescence for a period of no less than one year.
(ii) The applicant permits the agency to determine
compliance with the work requirement and all other terms
or requirements deemed necessary by the agency to perform
its obligations under this article.
(iii) Upon the applicant's death or total and
permanent disability, the agency nullifies the service
obligation of the applicant.
(iv) If the applicant is convicted of or pleads
guilty or no contest to a felony, the agency may
terminate the applicant's service in the program and
demand repayment of the amount of the financial award as
of the date of the conviction.
(v) If the applicant fails to begin or complete the
obligations contracted for, the applicant shall pay to
the agency the amount of the financial award received
under the terms of the contract.
(vi) Providing false information or
misrepresentation on the application or verification of
service shall be deemed a default under the contract.
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(vii) The agency shall determine the time of the
default.
(8) A recipient shall certify annually to the agency
that the recipient continues to meet the qualifications for
participation in the program for each year that the recipient
continues to participate in the program.
(d) Limitation.--The agency may not approve a financial
award under this article for a tuition loan that is in default
at the time of application.
Section 2203-C. Tuition payment awards.
(a) Employment.--The agency shall make a tuition payment
award under this article to a recipient who:
(1) works in and has received a satisfactory rating from
an employer in the mental health field focusing on early
childhood through adolescence; or
(2) has been hired by an employer in the mental health
field focusing on early childhood through adolescence.
(b) Documentation.--A recipient shall submit documentation
of eligibility as the agency may require, including
documentation to indicate employment and grades received while a
student at one of the universities that is part of the State
System of Higher Education. The documentation shall be presented
to the agency in the form of a letter from the recipient's
employer stating that the recipient:
(1) is employed by an employer in the mental health
field focusing on early childhood through adolescence; and
(2) performs duties in a satisfactory manner.
Section 2204-C. Tax applicability.
A financial award payment under the program shall not be
considered taxable income for the purposes of Article III of the
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act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
of 1971.
Section 2205-C. Student financial aid.
This article shall be subject to 22 Pa. Code Ch. 121
(relating to student financial aid).
Section 2206-C. Agency duties.
The agency shall administer the program and shall adopt
regulations, policies, procedures and forms as are necessary to
implement the program, which are not inconsistent with the
provisions of this article.
Section 2207-C. Appropriation.
The sum of $50,000,000 is appropriated from the General Fund
to the agency for the purpose of making tuition payment awards
to recipients under this article. In the event that funding is
insufficient to fully fund all eligible applicants, tuition
payment awards shall be made to recipients on a first-come,
first-served basis until funding has been exhausted.
Section 2. This act shall take effect in 60 days.
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