ASSEMBLY, No. 6046

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED DECEMBER 5, 2019

 

 

Sponsored by:

Assemblyman  RAJ MUKHERJI

District 33 (Hudson)

Assemblywoman  PAMELA R. LAMPITT

District 6 (Burlington and Camden)

Assemblyman  HERB CONAWAY, JR.

District 7 (Burlington)

 

 

 

 

SYNOPSIS

     Establishes loan redemption program for certain psychiatrists who work in public schools.

 

CURRENT VERSION OF TEXT

     As introduced.

  

An Act concerning loan redemption for school psychiatrists and supplementing chapter 71C of Title 18A of the New Jersey Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    As defined in this act:

     "Authority" means the Higher Education Student Assistance Authority.

     "Eligible qualifying loan expenses" means the cumulative outstanding balance of student loans, including interest paid or due, covering the cost of attendance at an accredited medical school.

     "Executive director" means the executive director of the Higher Education Student Assistance Authority.

     "Program" means the School Psychiatrist Loan Redemption Program established pursuant to section 2 of this act.

     "Program participant" means a school psychiatrist who contracts with the authority to provide psychiatric services in a public school in exchange for the redemption of eligible qualifying loan expenses provided under the program.

     "Public school" means a public school as defined in N.J.S.18A:1-1.

     "Qualifying loan" means a government or private loan for the actual costs paid for tuition and reasonable education and living expenses incurred by a program participant in attending an accredited medical school.

     "School psychiatrist" means a State-licensed physician who has completed all educational and residency training requirements for the practice of psychiatry and who is employed by a board of educationto provide psychiatric services in a public school in the State.

     "Total and permanent disability" means a physical or mental disability that is expected to continue indefinitely or result in death and renders a program participant unable to perform that person's employment obligation, as determined by the executive director or his designee.

 

     2.    There is established within the Higher Education Student Assistance Authority the School Psychiatrist Loan Redemption Program.  The program shall provide for the redemption of a portion of the eligible qualifying loan expenses of a program participant for each year of service at a public school in the State.

 

     3.    To be eligible to participate in the program, an applicant shall:

     a.     be a resident of the State;

     b.    be a State-licensed physician who has completed all educational and residency training requirements for the practice of psychiatry; and

     c.     agree to practice full-time as a school psychiatrist under the terms and conditions provided for in section 5 of this act and the agreement issued thereunder.

 

     4.    Maximum redemption of loans under the loan redemption program shall amount to 10 percent of principal and interest of eligible qualifying loan expenses in return for one full school year of service as a school psychiatrist, an additional 12 percent for a second full school year of service, an additional 15 percent for a third full school year of service, and an additional 15 percent for a fourth full school year of service for a total redemption of eligible qualifying loan expenses of up to, but not to exceed, $100,000.  No amount of eligible qualifying loan expenses shall be redeemed for services performed for less than a full school year.

 

     5.    a.  A program participant shall enter into a written contract with the authority for a specified number of school years, not to exceed four school years, in which the program participant agrees to practice full-time as a school psychiatrist.  The contract shall specify the program participant's dates of required service and the total amount of eligible qualifying loan expenses to be redeemed by the authority in return for the service provided by the program participant.

     b.    The contract shall require a program participant to maintain employment as a school psychiatrist for the full duration of the program participant's contract with the authority.

     c.     A program participant who has previously entered into a contract with the authority may nullify the agreement by notifying the authority in writing and reassuming full responsibility for the remaining outstanding balance of the loan debt. 

     d.    In the case of a program participant's death or total or permanent disability, the authority shall nullify the service obligation of the participant; or where continued enforcement of the contract may result in extreme hardship, the authority may nullify or suspend the participant's service obligation. 

     e.     In the case of a program participant's conviction of a crime or an act of gross negligence in the performance of employment obligations, or a program participant's breach of the standards established pursuant to section 6 of this act, the executive director or his designee is authorized to terminate the program participant's participation in the program.

 

     6.    A program participant, as a condition of participation shall be required to adhere to performance standards established by the authority in consultation with the Department of Education.  The standards shall include, but not be limited to, requirements that a program participant:

     a.     maintain residency in the State;

     b.    maintain a license to practice psychiatry in the State;

     c.     remain current with payments on any student loans;

     d.    maintain satisfactory performance of services rendered in a public school; and

     e.     report to the authority, on a form and in a manner prescribed by the authority, on the program participant's performance of services rendered prior to repayment of the annual amount eligible for redemption.

 

     7.    An individual who is participating in the tuition reimbursement program for psychiatrists who provide mental health care services in a State underserved area or in a State psychiatric hospital, P.L.2017, c.126 (C.18A:71C-59 et seq.); in the Primary Care Practitioner Loan Redemption Program, N.J.S.18A:71C-32 et seq.; or in the federally administered National Health Service Corps Loan Repayment Program, section 338B of the Public Health Service Act (42 U.S.C. s.254l-1), shall not be eligible to participate simultaneously in the loan redemption program established pursuant to this act.

 

     8.    A person who knowingly or willfully furnishes any false or misleading information for the purpose of receiving loan redemption benefits under the program is guilty of a crime of the fourth degree.

 

     9.    The Higher Education Student Assistance Authority, in consultation with the Department of Education, shall adopt, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary to implement the provisions of this act.

 

     10.  This act shall take effect immediately.

 

 

STATEMENT

 

This bill creates the School Psychiatrist Loan Redemption Program. 

Under this bill, a school psychiatrist will be eligible for the redemption of a portion of his eligible qualifying loan expenses for each school year of service in a public school.  Program participants must: (1) be a State resident, (2) be a State-licensed physician who has completed all educational and residency requirements for the practice of psychiatry, and (3) agree to practice full-time as a school psychiatrist under the terms and conditions provided for under the agreement issued pursuant to this act.

A program participant will enter into a contract with the Higher Education Student Assistance Authority (HESAA) for a specified number of school years, not to exceed four school years, to provide psychiatric services as a school psychiatrist.  In return for this commitment, a portion of the participant's eligible qualifying loan expenses will be redeemed as follows: (1) 10 percent of the principal and interest of eligible qualifying loan expenses for one full school year of service, (2) 12 percent for a second full school year of service, (3) 15 percent for a third full school year of service, and (4) 15 percent for a fourth full school year of service.  The total amount of loan redemption provided for under the program would not exceed $100,000.  In order to remain eligible for loan redemption, a program participant must maintain employment with a board of education for the full duration of the contract with the HESAA. 

A program participant can nullify the contract with the HESAA in writing or in the event of a program participant's death or total or permanent disability.  The HESAA can terminate the contract if the program participant is convicted of a crime or gross negligence in the performance of employment obligations or breach of standards established pursuant to the program. 

     Under this bill, a program participant must adhere to certain performance standards that include maintaining their State residency and medical license, remaining current on payments of any student loans, maintaining satisfactory performance of services, and reporting to the HESAA on the performance of services rendered prior to repayment of the annual amount eligible for redemption.

     An individual participating in one of three other tuition reimbursement or loan redemption programs currently administered by the State or federal government is prohibited from participating simultaneously in the School Psychiatrist Loan Redemption Program. 

     This bill will make it a crime of the fourth degree to knowingly or willfully furnish any false or misleading information for the purpose of receiving loan redemption benefits under this program.  A crime of the fourth degree is ordinarily punishable by a term of imprisonment of up to 18 months or a fine of up to $10,000, or both.