HB2072 - 542R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 41, chapter 11, Arizona Revised Statutes, is amended by adding article 9, to read:

ARTICLE 9. MENTAL HEALTH PROFESSIONALS LOAN REPAYMENT PROGRAM

START_STATUTE41-1691. Mental health professionals; loan repayment program; eligibility; maximum aggregate award; fund; definition

A. The mental health professionals loan repayment program is established in the department to pay off portions of education loans that are taken out by eligible mental health professionals.

B. The department shall prescribe application and eligibility requirements. To be eligible to participate in the mental health professionals loan repayment program, a mental health professional shall meet all of the following requirements:

1. Be a United States citizen or a legal permanent resident and not have any professional license restrictions.

2. If the mental health professional is a psychiatrist who has not earned or maintained board certification, be eligible to take the exam for board certification during the first, second or third service period.

3. Contract with the state department of corrections to provide at least five consecutive years of service in the department or at a secure correctional facility that is operated by or under contract with either the state department of corrections or the department of juvenile corrections.

4. Not be currently fulfilling another obligation to provide mental health services as part of a scholarship agreement, student loan agreement or other student loan repayment program.

C. A mental health professional who participates in the mental health professionals loan repayment program shall initially contract with the department to provide services for at least five years.

D. To be eligible for repayment, a loan must:

1. Be evidenced by a promissory note that requires the loan proceeds to be used to pay attendance costs for the applicant's undergraduate, graduate or professional education.

2. Not have been made during the applicant's residency or to cover costs incurred after completion of a graduate or professional education.

3. Not be in default at the time of the application.

4. Not have an existing service obligation.

5. Not be subject to repayment through another student loan repayment or loan forgiveness program or as a condition of employment.

E. All loan repayment contract obligations are subject to the availability of monies and legislative appropriation. The department may cancel or suspend a loan repayment contract based on unavailability of monies for the program. The department is not liable for any claims, actual damages or consequential damages arising out of the cancellation or suspension of a contract.

F. This section does not prevent the department from encumbering an amount that is sufficient to ensure payment to each mental health professional for the services rendered during a contract period.

G. The department shall issue program monies to pay the principal, interest and related expenses of a mental health professional's education loans, not to exceed the mental health professional's total student loan indebtedness, according to the following maximum aggregate repayment amounts over the five-year period:

1. $160,000 For psychiatrists.

2. $80,000 For psychologists and licensed clinical social workers, licensed professional counselors and licensed marriage and family therapists who hold doctoral degrees.

3. $60,000 for advanced practice nurses.

4. $40,000 for licensed clinical social workers, licensed professional counselors and licensed marriage and family therapists who do not hold doctoral degrees.

5. $10,000 for licensed chemical dependency counselors who hold an associate degree.

H. Notwithstanding subsection G of this section, if the verified loan balance is less than the maximum aggregate award amount:

1. Ten percent of the original verified loan balance will be awarded in the first year.

2. Fifteen percent of the original verified loan balance will be awarded in the second year.

3. Twenty percent of the original verified loan balance will be awarded in the third year.

4. Twenty‑five percent of the original verified loan balance will be awarded in the fourth year.

5. Thirty percent of the original verified loan balance will be awarded in the fifth year.

I. A participant in the mental health professionals loan repayment program who breaches the loan repayment contract by failing to begin or to complete the obligated services is liable for liquidated damages in an amount that is equivalent to the amount that would be owed for default as prescribed by the federal state loan repayment program or as determined and authorized by the department. The department may waive the liquidated damages provisions of this subsection if it determines that death or permanent physical disability accounted for the participant's failure to fulfill the contract. The department may prescribe additional conditions for default, cancellation, waiver or suspension that are consistent with the national health service corps loan repayment program (42 Code of Federal Regulations sections 62.27 and 62.28).

J. Notwithstanding section 41‑192, the department may retain legal counsel and commence whatever actions are necessary to collect loan payments and charges if a mental health professional defaults on or breaches a contract entered into pursuant to this section.

K. The department may use private donations, grants and federal monies to implement, support, promote or maintain the program.

L. The mental health professionals loan repayment fund is established. The department shall administer the fund. All payments of principal and interest shall be deposited, pursuant to sections 35‑146 and 35‑147, in the fund. Monies in the fund are continuously appropriated for the purposes of this section. Monies in the fund are exempt from the provisions of section 35‑190 relating to lapsing of appropriations.

M. For the purposes of this section, "Mental health professional" means any of the following:

1. A psychiatrist.

2. A psychologist.

3. An advanced practice nurse who is board certified in psychiatric or mental health nursing.

4. A licensed professional counselor.

5. A licensed clinical social worker.

6. A licensed marriage and family therapist.

7. A licensed chemical dependency counselor who has received an associate degree related to chemical dependency counseling or behavioral science. END_STATUTE

START_STATUTE41-1691. Program termination

The program established by this article ends on July 1, 2030 pursuant to section 41-3102. END_STATUTE