Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF227 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to higher education; establishing a loan forgiveness program for mental
3	3	1.3 health professionals; proposing coding for new law in Minnesota Statutes, chapter
4	4	1.4 136A.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. [136A.1786] MENTAL HEALTH PROFESSIONAL LOAN
7	7	1.7FORGIVENESS PROGRAM.
8	8	1.8 Subdivision 1.Definitions.(a) For purposes of this section, the terms in this subdivision
9	9	1.9have the meanings given.
10	10	1.10 (b) "Mental health professional" has the meaning given in section 245.462, subdivision
11	11	1.1118.
12	12	1.12 (c) "Qualified education loan" means a government, commercial, or foundation loan for
13	13	1.13actual costs paid for tuition, reasonable education expenses, and reasonable living expenses
14	14	1.14related to the graduate or undergraduate education of a mental health professional.
15	15	1.15 (d) "Rural area that is underserved" means an area in Minnesota that is at least 15 miles
16	16	1.16from a metropolitan statistical area, according to the United States Census Bureau, and is
17	17	1.17a mental health designated health professional shortage area according to the Department
18	18	1.18of Health, Office of Rural Health.
19	19	1.19 Subd. 2.Account; appropriation.A mental health professional loan forgiveness account
20	20	1.20is established in the special revenue fund to provide mental health professionals with financial
21	21	1.21assistance to repay qualified education loans. Money in the account, including interest, is
22	22	1.22appropriated to the commissioner for the purposes of this section and does not cancel. The
23	23	1Section 1.
24	24	23-00946 as introduced12/27/22 REVISOR JFK/AD
25	25	SENATE
26	26	STATE OF MINNESOTA
27	27	S.F. No. 227NINETY-THIRD SESSION
28	28	(SENATE AUTHORS: DRAHEIM)
29	29	OFFICIAL STATUSD-PGDATE
30	30	Introduction and first reading01/12/2023
31	31	Referred to Higher Education 2.1commissioner shall use the funds from the account to establish and administer the loan
32	32	2.2forgiveness program. The commissioner shall not expend more than three percent of the
33	33	2.3appropriation to administer the program.
34	34	2.4 Subd. 3.Eligibility.(a) To be eligible to participate in the loan forgiveness program
35	35	2.5under this section, an individual must:
36	36	2.6 (1) be a mental health professional;
37	37	2.7 (2) have attended a public or private not-for-profit Minnesota postsecondary institution
38	38	2.8that prepared the individual to be a mental health professional;
39	39	2.9 (3) agree to work in a rural area that is underserved;
40	40	2.10 (4) be a Minnesota resident under section 136A.15, subdivision 9;
41	41	2.11 (5) have qualified education loans;
42	42	2.12 (6) not be participating in the loan forgiveness program under section 144.1501 or the
43	43	2.13loan repayment program administered by the commissioner of health; and
44	44	2.14 (7) submit an application to the commissioner in the form and manner prescribed by the
45	45	2.15commissioner.
46	46	2.16 (b) An applicant selected to participate must sign a contract to agree to serve a five-year,
47	47	2.17full-time service obligation according to subdivision 4. To complete the service obligation,
48	48	2.18the applicant must work full time as a mental health professional in a rural area that is
49	49	2.19underserved in Minnesota. A participant must complete one year of service under this
50	50	2.20paragraph for each year the participant receives an award under this section.
51	51	2.21 Subd. 4.Service obligation.Before receiving loan repayment disbursements and as
52	52	2.22requested, a participant must verify to the commissioner that the participant is employed in
53	53	2.23a position that fulfills the service obligation as required under subdivision 3, paragraph (b).
54	54	2.24 Subd. 5.Penalty for nonfulfillment.If a participant does not fulfill the required service
55	55	2.25obligation under subdivision 4, the commissioner must collect from the participant the total
56	56	2.26amount paid to the participant under the loan forgiveness program plus interest at a rate
57	57	2.27established according to section 270C.40. The commissioner must deposit the money
58	58	2.28collected in the mental health professional loan forgiveness account. The commissioner
59	59	2.29must allow waivers of all or part of the money owed to the commissioner as a result of a
60	60	2.30nonfulfillment penalty if emergency circumstances prevented fulfillment of the minimum
61	61	2.31service commitment.
62	62	2Section 1.
63	63	23-00946 as introduced12/27/22 REVISOR JFK/AD 3.1 Subd. 6.Loan forgiveness.(a) The commissioner may select eligible applicants each
64	64	3.2year for participation in the mental health professional loan forgiveness program within the
65	65	3.3limits of available funding.
66	66	3.4 (b) The commissioner must make annual disbursements of $7,000 or the balance of the
67	67	3.5participant's qualified education loans, whichever is less, directly to the eligible participant
68	68	3.6for each year that the participant meets the eligibility requirements under subdivision 3, up
69	69	3.7to a maximum of five years.
70	70	3.8 (c) The participant must provide the commissioner with verification that the full amount
71	71	3.9of the loan repayment disbursement received by the participant has been applied toward the
72	72	3.10designated qualified education loan. After each disbursement, verification must be received
73	73	3.11by the commissioner and approved before the next repayment disbursement is made.
74	74	3Section 1.
75	75	23-00946 as introduced12/27/22 REVISOR JFK/AD