H-1601

AN ACT Relating to mental health practitioners' loan repayment program; adding a new chapter to Title 28B RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature finds that significant changes occurring in the mental health profession and changes in the demography of the national population have resulted in a shortage of mental health practitioners. This has dramatically reduced the quality of mental health care in the state of Washington, particularly for the mentally ill populations defined in chapter 71.24 RCW.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Community mental health program" means the total mental health program established by a county or group of counties acting in combination for the purpose of providing mental health services in accordance with the community mental health services act, chapter 71.24 RCW.

(2) "Mental health practitioner" means a regularly employed staff member or supervisor engaged in providing direct evaluative, diagnostic, or therapeutic services to consumers of mental health services provided by an agency licensed under chapter 71.24 RCW.

(3) "Loan repayment" means a loan that is paid in full or in part if the participant renders service in a community mental health program as defined in chapter 71.24 RCW located in a mental health shortage area.

(4) "Participant" means a mental health practitioner who has commenced practice as a provider for mentally ill persons as defined in chapter 71.24 RCW, in a community mental health program located in a mental health shortage area.

(5) "Board" means the higher education coordinating board.

(6) "Mental health shortage areas" means those areas where mental health practitioners are in short supply, or where vacancies exist in serious numbers that jeopardize patient care and pose a threat to the public health and safety, as determined by the department of social and health services and including but not limited to rural areas.

(7) "Satisfied" means paid‑in‑full.

(8) "Service obligation" means rendering service as a mental health practitioner in a community mental health program, as defined in chapter 71.24 RCW, located in a mental health shortage area.

NEW SECTION. Sec. 3. The mental health practitioners' loan repayment program is established for mental health practitioners serving in mental health shortage areas. The program shall be administered by the board. In administrating this program, the board shall have the following duties:

(1) Select mental health practitioners to participate in the loan repayment program;

(2) Adopt rules to administer the program;

(3) Publicize the program; and

(4) Facilitate collection and acceptance of grants and donations from public and private sources for the program.

NEW SECTION. Sec. 4. The board shall establish a planning committee to assist it in developing criteria for the selection of participants. The board shall, at a minimum, include on the planning committee: Representatives from regional support networks, mental health service providers, consumers, advocates, underserved populations, community residential services, the department of social and health services, and the state board for community college education.

NEW SECTION. Sec. 5. The board may grant loan repayment awards to eligible participants from the funds appropriated for this purpose, or from any private or public funds given to the board for this purpose. The amount of the loan repayment shall not exceed three thousand dollars per year for a maximum of five years. The board may establish awards of less than three thousand dollars per year based upon reasonable levels of expenditures for each of the mental health professions covered by this chapter. Participants in the mental health practitioners' conditional scholarship program are ineligible to receive assistance from the program authorized by this chapter.

NEW SECTION. Sec. 6. Participants in the mental health practitioners' loan repayment program shall receive payment from the program for the purpose of repaying educational loans secured while attending a program of mental health practitioner training which led to employment as a mental health practitioner in the state of Washington.

(1) Participants shall agree to serve as a mental health practitioner for at least five years in a community mental health program located in a mental health shortage area.

(2) Repayment shall be limited to eligible educational loans as determined by the board and shall include principal and interest.

(3) Loans from both government and private sources may be repaid by the program. Participants shall agree to allow the board access to loan records and to acquire information from lenders necessary to verify eligibility and to determine payments. Loans may not be renegotiated with lenders to accelerate repayment.

(4) Repayment of loans established pursuant to this program shall begin no later than ninety days after the individual has become a participant. Payments shall be made quarterly, or more frequently if deemed appropriate by the board, to the participant until the loan is repaid or the participant becomes ineligible due to discontinued service in a mental health shortage area or after the fifth year of services when eligibility discontinues, whichever comes first.

(5) Should the participant discontinue service in a mental health shortage area payments against the loans of the participants shall cease to be effective on the date that the participant discontinues service.

(6) Except for circumstances beyond their control, participants who serve less than five years shall be obligated to repay to the program an amount equal to the total amount paid by the program on their behalf, plus interest, in addition to any payments on the unsatisfied portion of the principal and interest. The period for repayment shall be five years and shall begin the first day of the next repayment quarter. The terms of the repayment, including deferral and rate of interest, shall be consistent with the terms of the federal guaranteed loan program. The board shall determine the applicability of this subsection.

(7) The board is responsible for the collection of payments made on behalf of participants from the participants who discontinue service before their five‑year obligation. The board shall exercise due diligence in such collection, maintaining all necessary records to ensure that the maximum amount of payment made on behalf of the participant is recovered. Collection under this section shall be pursued using the full extent of the law, including wage garnishment if necessary.

(8) Receipts from the payment of principal or interest or any other subsidies to which the board as administrator is entitled that are paid by or on behalf of participants under this section shall be deposited with the board and shall be used to cover the costs of granting the loan repayments, maintaining necessary records, and making collections under subsection (7) of this section. The board shall maintain accurate records of these costs, and all receipts beyond those necessary to pay such costs shall be used to grant loan repayments to eligible students.

(9) The board shall not be held responsible for any outstanding payments on principal and interest to any lenders.

NEW SECTION. Sec. 7. No loan repayment awards may be granted after June 30, 1997, unless reauthorized by the legislature.

NEW SECTION. Sec. 8. Sections 2 through 7 of this act shall constitute a new chapter in Title 28B RCW.