Bill > S3037

Introduced Session

This bill provides financial incentives, including student loan redemption payments and gross income tax credits, for licensed mental health professionals who provide mental health counseling services to children and adolescents. Specifically, the bill establishes the Child and Adolescent Mental Health Loan Redemption Program ("program") within the Higher Education Student Assistance Authority ("authority"). The program would provide loan redemption payments to licensed mental health professionals who are employed in a full-time position that is wholly or primarily dedicated to providing mental health counseling services to children and adolescents ("qualifying occupation"). Under the bill, a program participant may receive a loan redemption payment, in an amount not to exceed $1,000, for each full year of mental health counseling services. However, a person may not participate in the program for longer than four years. Any loan redemption payment provided through the program is required to support the outstanding balance of the participant's eligible student loan expenses. To qualify for participation in the program, an applicant would be required to: (1) be a resident of the State; (2) be a licensed mental health professional who is employed in a qualifying occupation; (3) have an outstanding balance of eligible student loan expenses and not be in default on any eligible student loan expenses; and (4) satisfy any additional criteria that the authority may deem necessary. When a person is selected for participation in the program, the person would be required to enter into a written contract with the authority. At a minimum, this contract would specify the dates that the program participant is required to remain employed in a qualifying occupation. The bill permits a program participant to withdraw from the program by providing written notice to the authority. Under the bill, the authority may not provide a loan redemption payment without first receiving the following documents from the program participant: (1) proof of residency in the State during the previous 12-month period; (2) such certification as the authority deems appropriate to demonstrate that the program participant was employed in a qualifying occupation during the previous 12-month period; (3) certification of the outstanding balance of eligible student loan expenses; and (4) any other materials that the authority may deem necessary. Any person who knowingly or willfully furnishes false or misleading information for the purpose of receiving a loan redemption payment under the program is guilty of a crime of the fourth degree, which is punishable by a term of imprisonment of up to 18 months, a fine of up to $10,000, or both. Additionally, the bill provides that a licensed mental health professional would be eligible for a gross income tax credit of not more than $1,000 for each taxable year in which the person is employed in a full-time position that is wholly or primarily dedicated to providing mental health counseling services to children and adolescents.

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Vince Polistina (R)*, 

Introduced in the Senate, Referred to Senate Higher Education Committee (on 04/08/2024)

Official Document