SF 42

as introduced - 92nd Legislature (2021 - 2022) Posted on 06/22/2022 10:25am

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.

[136A.1786] MENTAL HEALTH PROFESSIONAL LOAN
FORGIVENESS PROGRAM.

Subdivision 1.

Definitions.

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

(b) "Mental health professional" as defined in section 245.462, subdivision 18.

(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.

(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.

Subd. 2.

Account; appropriation.

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 to
administer the program.

Subd. 3.

Eligibility.

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

(1) be a mental health professional;

(2) have attended a public or private not-for-profit Minnesota postsecondary institution
preparing the individual to be a mental health professional;

(3) agree to work in a rural area that is underserved;

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

(5) not be participating in the loan forgiveness program under section 144.1501 or the
loan repayment program administered by the commissioner of health; and

(6) submit an application to the commissioner in the form and manner prescribed by the
commissioner.

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

Subd. 4.

Service obligation.

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).

Subd. 5.

Penalty for nonfulfillment.

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 the commissioner as a result of a
nonfulfillment penalty if emergency circumstances prevented fulfillment of the minimum
service commitment.

Subd. 6.

Loan forgiveness.

(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. Applicants are responsible for securing their own qualified
education loans.

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

(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.