HSB 47 (LSB 1166DP (9) 90)

SENATE/HOUSE FILE _____

BY  (PROPOSED COLLEGE STUDENT AID COMMISSION BILL)

A BILL FOR

An Act relating to loan repayments made by the college student aid commission under the mental health professional loan repayment program and including applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 261.117, subsection 2, Code 2023, is amended to read as follows:
   2.  Program established.  A mental health professional loan repayment program is established to be administered by the commission for purposes of providing annual loan repayments for mental health professionals who agree to practice in an eligible practice area and meet the requirements of this section.
    Sec. 2.  Section 261.117, subsection 3, paragraph a, unnumbered paragraph 1, Code 2023, is amended to read as follows:
   The mental health professional and the commission shall enter into a program agreement. Under the agreement, to receive annual loan repayments pursuant to subsection 5, a mental health professional shall agree to and shall engage in either of the following:
    Sec. 3.  Section 261.117, subsection 4, paragraph b, Code 2023, is amended to read as follows:
   b.  If a mental health professional fails to fulfill the obligation to engage in practice in accordance with subsection 3, the mental health professional shall be subject to repayment to the commission of loan repayment amounts the commission paid to the mental health professional pursuant to subsection 5 plus interest as specified by rule shall not make additional loan repayments to the mental health professional.
    Sec. 4.  Section 261.117, subsection 5, Code 2023, is amended to read as follows:
   5.  Loan repayment amounts.  The 
   a.  After the completion of a year of full-time practice, annual amount of loan repayment the commission may make to a mental health professional who enters into a program agreement pursuant to subsection 3, if the mental health professional is in compliance with obligations under the agreement, shall be eight thousand dollars for an eligible loan.
   b.  After the completion of a year of part-time practice, the annual amount of loan repayment the commission may make to a mental health professional who enters into a program agreement pursuant to subsection 3, if the mental health professional is in compliance with obligations under the agreement, shall be the same amount of loan repayment the commission may make pursuant to paragraph “a” prorated based on the number of hours of practice in the mental health professional’s workweek.
   c.  The total amount of loan repayments from the commission to a mental health professional under this subsection shall not exceed forty thousand dollars.
    Sec. 5.  APPLICABILITY.  This Act applies individuals who receive loan repayments under the mental health professional loan repayment program on or after the effective date of this Act.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to loan repayments made by the college student aid commission under the mental health professional loan repayment program (program).
   The program provides loan repayments for mental health professionals who agree to practice in an eligible practice area, as defined in Code section 261.117, for five years if the individual engages in full-time practice or for seven years if the individual engages in part-time practice. The bill provides that the college student aid commission is to make loan repayments annually after the completion of each year of practice.
   Current law requires an individual who receives loan repayments under the program to repay the commission the total amount of the loan repayments if the individual fails to fulfill the obligation to practice as a mental health professional in a service area for the applicable amount of time. The bill strikes this requirement. The bill provides that if the individual fails to fulfill the obligation to practice as a mental health professional in a service area for the applicable amount of time, the commission is prohibited from making additional loan repayments to the individual.
   Current law provides that the annual amount of loan repayment the commission may make to an individual under the program is $8,000. The bill provides that, after the completion of a year of full-time practice, the annual amount of loan repayment the commission may make to an individual under the program is $8,000. Additionally, the bill provides that, after the completion of a year of part-time practice, the annual amount of loan repayment the commission may make to an individual under the program shall be the same amount of loan repayment the commission may make to an individual who has completed a year of full-time practice prorated based on the number of hours of practice in the individual’s workweek.
   The bill applies to individuals who receive loan repayments under the program on or after the effective date of the bill.