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AB-850 Social workers: student loan repayment program.(2019-2020)

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Date Published: 04/12/2019 04:00 AM
AB850:v97#DOCUMENT

Amended  IN  Assembly  April 11, 2019
Amended  IN  Assembly  March 28, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 850

Introduced by Assembly Member Lackey

February 20, 2019

An act to add Article 2.6 (commencing with Section 127934.10) to Chapter 2 of Part 3 of Division 107 of the Health and Safety Code, and to add Section 17131.11 to the Revenue and Taxation Code, relating to public health.


LEGISLATIVE COUNSEL'S DIGEST


AB 850, as amended, Lackey. Social workers: student loan repayment program.
Existing law establishes the Office of Statewide Health Planning and Development (OSHPD) in the California Health and Human Services Agency to regulate health planning and research development. Existing law makes the OSHPD responsible for administering various scholarship and loan repayment programs for health care professionals.
This bill would establish the California Social Worker Student Loan Repayment Program in the OSHPD to provide loan repayment awards to individuals who have completed a bachelors bachelor’s or master’s degree in social work, as specified, have received a student loan student loans in order to meet the costs associated with obtaining that degree, have been employed are in the 3rd year of employment as a child welfare social worker for 5 years, and and will continue to have repayment obligations on the student loan loans at the end of that 5-year employment period. year. The bill would require that the loan repayment award be equal to 50% of the balance remaining on the student loan at the end of the 5-year employment period. 3rd year of the specified employment. The bill would authorize the OSHPD to adopt rules and regulations for the purpose of administering the program and would make its provisions operative only upon appropriate funding, as determined by the OSHPD, being made available by appropriation of the Legislature or other sources. The bill would limit the period for acceptance of new program applications to 5 years after the first appropriation of funding by the Legislature.
The Personal Income Tax Law, in conformity with federal income tax law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income.
The bill would, if the program becomes operative, exclude from gross income for purposes of the Personal Income Tax Law the amount of a loan repayment award received by an individual under the California Social Worker Student Loan Repayment Program. The bill would direct the Legislative Analyst, on an annual basis and upon appropriation by the Legislature, to collaborate with the Franchise Tax Board to review the effectiveness of the tax credit.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Article 2.6 (commencing with Section 127934.10) is added to Chapter 2 of Part 3 of Division 107 of the Health and Safety Code, to read:
Article  2.6. California Social Worker Student Loan Repayment Program

127934.10.
 (a) This article shall be known, and may be cited, as the California Social Worker Student Loan Repayment Program.
(b) There is hereby established within the Office of Statewide Health Planning and Development, the California Social Worker Student Loan Repayment Program.

127934.15.
 (a) The office shall administer the program. Under the program an individual who has completed a bachelors bachelor’s degree in social work work, a bachelor of arts degree in social work, or a master’s degree in social work may be eligible to receive a loan repayment award. In order to be eligible to receive a loan repayment award, an applicant shall satisfy all of the following conditions:
(1) In order to meet the costs associated with obtaining a bachelors bachelor’s degree in social work, a bachelor of arts degree in social work, or a master’s degree in social work, the applicant has received a student loan. student loans.

(2)The applicant has been employed for five years as a child welfare social worker.

(2) The applicant is currently in the third consecutive year of employment as a child welfare social worker with either the state or a county in California.
(3) The applicant continues will continue to have repayment obligations on the loan loans after the conclusion of the five-year three-year period.
(b) The amount of the loan repayment award provided pursuant to this article shall be equal to 50 percent of the balance remaining on the loan loans after the conclusion of the five-year period. applicant’s third consecutive year of employment as a child welfare social worker with either the state or a county of California.

127934.20.
 (a) The office shall develop a process to distribute an applicant’s loan repayment award.
(b) The office shall administer this program, and shall adopt rules and regulations for that purpose. The rules and regulations shall include, but shall not be limited to, provisions regarding the period of time for which a loan repayment award shall remain valid, the reallocation of loan repayment awards that are not utilized, and the development of projections for funding purposes.
(c) The office shall work in conjunction with lenders participating in federal or similar loan programs to develop a streamlined application process for participation in the program.
(d) New applications for the program shall be accepted by the office for five years after the date of the first appropriation made by the Legislature for purposes of this article.

127934.25.
 (a) The office may seek matching funds from foundations and private sources. The office may also contract with an exempt foundation for the receipt of matching funds to be transferred to the fund for use by this program.
(b) The California Social Worker Student Loan Repayment Fund is hereby established within the State Treasury. All funds received by the state for the purposes of this article shall be deposited in the fund.
(c) Moneys in the fund shall, shall be available for the purposes of this article upon appropriation by the Legislature, be available for the purposes of this article. Legislature.

127934.30.
 For purposes of this article, the following definitions shall apply:
(a) “Child welfare social worker” means a child, family, and school social worker employed by either the state or a county child welfare services agency in California.
(b) “Fund” means the California Social Worker Student Loan Repayment Fund.
(c) “Loans” means any direct, subsidized or unsubsidized federal loans accumulated for the costs associated with obtaining a bachelor’s degree in social work, bachelor of arts degree in social work, or master’s degree in social work.

(a)

(d) “Office” means the Office of Statewide Health Planning and Development.

(b)

(e) “Program” means the California Social Worker Student Loan Repayment Program.

(c)“Fund” means the California Social Worker Student Loan Repayment Fund.

127934.35.
 Except for Section 127934.25, this article shall not become operative unless appropriate funding, as determined by the office, is made available for that purpose upon appropriation by the Legislature or other sources. The director of the office shall file a written notice with the Legislature pursuant to Section 9795 of the Government Code, when sufficient funds have been received.

SEC. 2.

 Section 17131.11 is added to the Revenue and Taxation Code, to read:

17131.11.
 For taxable years beginning on or after January 1, 2020, gross income shall not include a loan repayment award received pursuant to Article 2.6 (commencing with Section 127934.10) of Chapter 2 of Part 3 of Division 107 of the Health and Safety Code. This section shall become operative only if the program set forth in Article 2.6 (commencing with Section 127934.10) of Chapter 2 of Part 3 of Division 107 of the Health and Safety Code receives sufficient funding and becomes operative as set forth in Section 127934.35 of the Health and Safety Code.

SEC. 3.

 (a) For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares, with respect to Section 17131.11 of the Revenue and Taxation Code, that the specific goals, purposes, and objectives to be achieved by the tax credit allowed by this act are as follows:
(1) To increase retention rates of child, family, and school social workers within the State of California.
(2) To reduce the amount of student debt for child, family, and school social workers within the State of California.
(b) The Legislative Analyst shall, on an annual basis upon appropriation of the Legislature, collaborate with the Franchise Tax Board to review the effectiveness of the tax credit allowed by Section 17131.11 of the Revenue and Taxation Code. The review shall include, but not be limited to, an analysis of the demand for the tax credit and the economic impact of the tax credit.
(c) The data collection requirements for determining whether the tax credit is meeting, failing to meet, or exceeding those specific goals, purposes, and objectives are as follows:
(1) To assist the Legislature in determining whether the tax credit allowed by this act meets the goals, purposes, and objectives specified in subdivision (a), and in carrying out their duties under subdivision (c), the Legislative Analyst may request information from the Franchise Tax Board.
(2) The Franchise Tax Board shall provide any data requested by the Legislative Analyst pursuant to this subdivision.