A3216

An Act providing financial incentives for certain mental health professionals who serve children and adolescents and supplementing Title 18A and Title 54A of the New Jersey Statutes.

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

1. As used in sections 1 through 4 of P.L. , c. (C. ) (pending before the Legislature as this bill):

“Authority” means the Higher Education Student Assistance Authority established pursuant to N.J.S.18A:71A-3.

“Eligible student loan expenses” means the cumulative outstanding balance of the principal and interest due on student loans used to cover the cost of attendance while enrolled in an undergraduate or graduate degree program at an institution of higher education.

“Executive director” means the executive director of the authority.

“Program” means the Child and Adolescent Mental Health Loan Redemption Program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

“Program participant” means a licensed mental health professional who meets the criteria set forth in subsection b. of section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), and who has entered into a written contract with the authority for participation in the program.

“Regulatory board” includes the State Board of Medical Examiners, the State Board of Psychological Examiners, the State Board of Social Work Examiners, the State Board of Marriage and Family Therapy Examiners, the Alcohol and Drug Counselor Committee, the Professional Counselor Examiners Committee, and the Certified Psychoanalysts Advisory Committee.

2. a. There is established in the authority a Child and Adolescent Mental Health Loan Redemption Program for licensed mental health professionals who provide mental health counseling services to children and adolescents. The program shall provide loan redemption payments, not to exceed $1,000 per payment, to program participants for each year of mental health counseling service, except that a program participant may not participate in the program for longer than four years. A program participant shall use each loan redemption payment to defray the costs of eligible student loan expenses.

b. To qualify for participation in the program, an applicant shall:

(1) be a resident of the State;

(2) be a licensed mental health professional who agrees to be employed in a full-time position that is wholly or primarily dedicated to providing mental health counseling services to children and adolescents during the duration of program participation;

(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.

c. The executive director shall select the program participants from among those applicants who meet the criteria set forth in subsection b. of this section, subject to available funds.

3. a. A person who has been selected by the executive director pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall enter into a written contract with the authority. The contract shall, at a minimum, specify the dates that the program participant shall remain employed in a full-time position that is wholly or primarily dedicated to providing mental health counseling services to children and adolescents.

b. Before the authority may provide a loan redemption payment to a program participant during any year of program participation, the program participant shall submit to the authority:

(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 full-time position that is wholly or primarily dedicated to providing mental health counseling services to children and adolescents 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.

c. Upon certification that a program participant has met all criteria set forth in this section, the authority shall provide a loan redemption payment, in an amount not to exceed $1,000, to the program participant to defray the costs of eligible student loan expenses. If during any year of program participation, the eligible student loan expenses of a program participant do not exceed $1,000, then the authority shall provide a loan redemption payment equal to the outstanding balance of the eligible student loan expenses, and the program participant shall cease to participate in the program.

d. A program participant who has entered into a written contract with the authority may nullify the agreement by notifying the authority, in writing, and reassuming full responsibility for the outstanding balance of eligible student loan expenses.

e. A 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.

4. The authority shall adopt rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to effectuate the purposes of the program.

5. a. A licensed mental health professional who is employed in a full-time position that is wholly or primarily dedicated to providing mental health counseling services to children and adolescents for the entirety of a taxable year shall be allowed a credit, in an amount not to exceed $1,000, against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq.

b. The amount of the credit allowed pursuant to this section shall not reduce the tax liability otherwise due for the taxable year to an amount less than zero.

c. The order of priority of the application of the credit allowed pursuant to this section, and any other credits allowed against the tax imposed pursuant to the “New Jersey Gross Income Tax Act,” N.J.S.54A:1-1 et seq., for a taxable year shall be as prescribed by the director.

d. In the case of married individuals filing jointly, each individual shall be permitted to claim the credit pursuant to this section in the taxable year if that individual is eligible for the credit.

e. The director shall promulgate procedures and forms by which an individual may certify that the individual qualifies for the credit allowed pursuant to this section.

f. As used in this section:

“Director” means the Director of the Division of Taxation in the Department of the Treasury.

“Licensed mental health professional” means a person who provides mental health counseling services and is licensed or otherwise authorized pursuant to Title 45 of the Revised Statutes to practice a health care profession that is regulated by the State Board of Medical Examiners, the State Board of Psychological Examiners, the State Board of Social Work Examiners, the State Board of Marriage and Family Therapy Examiners, the Alcohol and Drug Counselor Committee, the Professional Counselor Examiners Committee, or the Certified Psychoanalysts Advisory Committee.

6. The Director of the Division of Taxation in the Department of the Treasury shall adopt rules and regulations, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to effectuate the purposes of section 5 of P.L. , c. (C. ) (pending before the Legislature as this bill).

7. This act shall take effect immediately, except that section 5 shall apply to the first full taxable year next following the date of enactment.

STATEMENT

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.