Senate Study Bill 1098 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON EDUCATION BILL BY CHAIRPERSON QUIRMBACH) A BILL FOR An Act establishing a mental health professional loan 1 forgiveness program and fund. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1473XC (5) 86 kh/sc

S.F. _____ Section 1. NEW SECTION . 261.117 Mental health professional 1 loan forgiveness program. 2 1. As used in this section, “underserved area” means a 3 geographical area designated as a mental health care health 4 professional shortage area by the department of public health. 5 2. A mental health professional loan forgiveness program 6 is established to be administered by the commission. A mental 7 health professional, as defined in section 228.1, is eligible 8 for the program if the mental health professional is practicing 9 in an underserved area. 10 3. Each applicant for loan forgiveness under this section 11 shall, in accordance with the rules of the commission, do the 12 following: 13 a. Complete and file an application for mental health 14 professional loan forgiveness. The applicant shall be 15 responsible for the prompt submission of any information 16 required by the commission. 17 b. Complete and return on a form approved by the commission 18 an affidavit of practice verifying that the applicant is a 19 mental health professional practicing in an underserved area. 20 4. a. A mental health professional is eligible for loan 21 forgiveness payments under this section for not more than five 22 consecutive years. 23 b. The annual amount of loan forgiveness awarded under 24 this section to a mental health professional who practices 25 in an underserved area in this state shall not exceed the 26 resident tuition rate established for institutions of higher 27 learning governed by the state board of regents for the first 28 year following the mental health professional’s graduation 29 from a graduate school, or twenty percent of the mental 30 health professional’s total federally guaranteed Stafford loan 31 amount under the federal family education loan program or the 32 federal direct loan program, including principal and interest, 33 whichever amount is less. 34 c. A mental health professional receiving loan forgiveness 35 -1- LSB 1473XC (5) 86 kh/sc 1/ 4

S.F. _____ payments under this section is required to file an application 1 annually and submit information as required by the commission 2 on the basis of which the applicant’s continued eligibility for 3 the loan forgiveness program will be evaluated and determined. 4 5. A mental health professional loan forgiveness fund is 5 created as a separate fund in the state treasury under the 6 control of the commission for deposit of moneys appropriated 7 to or received by the commission for use under the program. 8 Moneys credited to the fund are appropriated to the commission 9 for purposes of the mental health professional loan forgiveness 10 program. Notwithstanding section 8.33, moneys deposited in the 11 fund shall not revert to any fund of the state at the end of any 12 fiscal year but shall remain in the loan forgiveness repayment 13 fund and be continuously available for loan forgiveness under 14 the program. Notwithstanding section 12C.7, subsection 2, 15 interest or earnings on moneys deposited in the fund shall be 16 credited to the fund. 17 6. The commission shall submit in a report to the general 18 assembly by January 1, annually, the number of mental health 19 professionals who received loan forgiveness payments pursuant 20 to this section, the underserved areas in which those mental 21 health professionals practice or practiced, the amount paid 22 to each mental health professional under this section, and 23 other information identified by the commission as indicators 24 of outcomes from the program. 25 7. The commission shall adopt rules pursuant to chapter 17A 26 to administer this section. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill establishes a mental health professional loan 31 forgiveness program under the administration of the college 32 student aid commission. Under the program, mental health 33 professionals who practice in underserved areas are eligible 34 for loan forgiveness payments for up to five years. 35 -2- LSB 1473XC (5) 86 kh/sc 2/ 4

S.F. _____ The bill defines “mental health professional” and 1 “underserved area” for purposes of the program. A mental 2 health professional either holds at least a master’s degree in 3 a mental health field, holds a current Iowa license, and has 4 at least two years of post-degree clinical experience or is a 5 licensed psychiatrist or psychologist, an advanced registered 6 nurse practitioner who holds a national certification in 7 psychiatric mental health care registered by the board 8 of nursing, or a physician assistant practicing under the 9 supervision of a psychiatrist. An underserved area is a 10 geographical area designated as a mental health professional 11 shortage area by the Iowa department of public health. 12 Applicants for loan forgiveness payments are required to 13 submit an application and an affidavit of practice to the 14 commission. The annual amount of loan forgiveness awarded 15 to an individual under the program shall not exceed the 16 resident tuition rate established for regents universities 17 for the first year following the mental health professional’s 18 graduation from a graduate school, or 20 percent of the mental 19 health professional’s total federally guaranteed Stafford loan 20 amount under the federal family education loan program or the 21 federal direct loan program, including principal and interest, 22 whichever amount is less. 23 The bill creates a mental health professional loan 24 forgiveness fund in the state treasury under the control of the 25 commission for deposit of moneys appropriated to or received by 26 the commission for use under the program. Moneys credited to 27 the fund are appropriated to the commission for purposes of the 28 program and do not revert to any fund of the state at the end of 29 any fiscal year, and interest or earnings on moneys deposited 30 in the fund shall be credited to the fund. 31 The commission shall submit a report to the general assembly 32 by January 1, annually, detailing the number of mental health 33 professionals who received loan forgiveness payments and the 34 amount paid to each recipient, the underserved areas in which 35 -3- LSB 1473XC (5) 86 kh/sc 3/ 4

S.F. _____ they practice or practiced, and other information identified by 1 the commission as indicators of outcomes from the program. 2 -4- LSB 1473XC (5) 86 kh/sc 4/ 4