SF 227

as introduced - 93rd Legislature (2023 - 2024) Posted on 01/13/2023 08:15am

A bill for an act
relating to higher education; establishing a loan forgiveness program for mental
health professionals; proposing coding for new law in Minnesota Statutes, chapter
136A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [136A.1786] MENTAL HEALTH PROFESSIONAL LOAN
FORGIVENESS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms in this subdivision
have the meanings given.
new text end

new text begin (b) "Mental health professional" has the meaning given in section 245.462, subdivision
18.
new text end

new text begin (c) "Qualified education loan" means a government, commercial, or foundation loan for
actual costs paid for tuition, reasonable education expenses, and reasonable living expenses
related to the graduate or undergraduate education of a mental health professional.
new text end

new text begin (d) "Rural area that is underserved" means an area in Minnesota that is at least 15 miles
from a metropolitan statistical area, according to the United States Census Bureau, and is
a mental health designated health professional shortage area according to the Department
of Health, Office of Rural Health.
new text end

new text begin Subd. 2. new text end

new text begin Account; appropriation. new text end

new text begin A mental health professional loan forgiveness account
is established in the special revenue fund to provide mental health professionals with financial
assistance to repay qualified education loans. Money in the account, including interest, is
appropriated to the commissioner for the purposes of this section and does not cancel. The
commissioner shall use the funds from the account to establish and administer the loan
forgiveness program. The commissioner shall not expend more than three percent of the
appropriation to administer the program.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin (a) To be eligible to participate in the loan forgiveness program
under this section, an individual must:
new text end

new text begin (1) be a mental health professional;
new text end

new text begin (2) have attended a public or private not-for-profit Minnesota postsecondary institution
that prepared the individual to be a mental health professional;
new text end

new text begin (3) agree to work in a rural area that is underserved;
new text end

new text begin (4) be a Minnesota resident under section 136A.15, subdivision 9;
new text end

new text begin (5) have qualified education loans;
new text end

new text begin (6) not be participating in the loan forgiveness program under section 144.1501 or the
loan repayment program administered by the commissioner of health; and
new text end

new text begin (7) submit an application to the commissioner in the form and manner prescribed by the
commissioner.
new text end

new text begin (b) An applicant selected to participate must sign a contract to agree to serve a five-year,
full-time service obligation according to subdivision 4. To complete the service obligation,
the applicant must work full time as a mental health professional in a rural area that is
underserved in Minnesota. A participant must complete one year of service under this
paragraph for each year the participant receives an award under this section.
new text end

new text begin Subd. 4. new text end

new text begin Service obligation. new text end

new text begin Before receiving loan repayment disbursements and as
requested, a participant must verify to the commissioner that the participant is employed in
a position that fulfills the service obligation as required under subdivision 3, paragraph (b).
new text end

new text begin Subd. 5. new text end

new text begin Penalty for nonfulfillment. new text end

new text begin If a participant does not fulfill the required service
obligation under subdivision 4, the commissioner must collect from the participant the total
amount paid to the participant under the loan forgiveness program plus interest at a rate
established according to section 270C.40. The commissioner must deposit the money
collected in the mental health professional loan forgiveness account. The commissioner
must allow waivers of all or part of the money owed to the commissioner as a result of a
nonfulfillment penalty if emergency circumstances prevented fulfillment of the minimum
service commitment.
new text end

new text begin Subd. 6. new text end

new text begin Loan forgiveness. new text end

new text begin (a) The commissioner may select eligible applicants each
year for participation in the mental health professional loan forgiveness program within the
limits of available funding.
new text end

new text begin (b) The commissioner must make annual disbursements of $7,000 or the balance of the
participant's qualified education loans, whichever is less, directly to the eligible participant
for each year that the participant meets the eligibility requirements under subdivision 3, up
to a maximum of five years.
new text end

new text begin (c) The participant must provide the commissioner with verification that the full amount
of the loan repayment disbursement received by the participant has been applied toward the
designated qualified education loan. After each disbursement, verification must be received
by the commissioner and approved before the next repayment disbursement is made.
new text end