new text begin Subd. 3. new text end

new text begin Loan forgiveness program. new text end

new text begin (a) For the purposes of this subdivision,
"qualified educational loan" means a government, commercial, or foundation loan for
actual costs paid for tuition, reasonable education expenses, and reasonable living
expenses related to the graduate education of a mental health professional.
new text end

new text begin (b) (1) A loan forgiveness program account is established. The commissioner of
human services shall use money from the account to establish a loan forgiveness program
for individuals who are employed by a nonprofit agency that provides mental health
services for cultural or ethnic minority clients.
new text end

new text begin (2) Appropriations made to the account do not cancel and are available until
expended, except that at the end of the biennium, any remaining balance in the account
that is not committed by contract and is not needed to fulfill existing commitments shall
cancel to the fund.
new text end

new text begin (c) To be eligible to participate in the loan forgiveness program, an individual must
be employed by a nonprofit agency that provides mental health services for cultural or
ethnic minority clients and must be of the same culture or ethnicity as the clients. An
applicant selected to participate must sign a contract agreeing to remain employed with
the nonprofit agency for a three-year full-time term, which shall begin no later than 30
days following completion of the required training.
new text end

new text begin (d) The commissioner of human services may select applicants each year for
participation in the loan forgiveness program, within the limits of available funding.
Applicants are responsible for securing their own qualified educational loans. The
commissioner shall select participants based on their suitability for practice serving the
required cultural or ethnic minority population. The commissioner shall give preference to
applicants closest to completing their education.
new text end

new text begin (e) For each year that a participant meets the service obligation required under
paragraph (c), the commissioner shall make annual disbursements directly to the
participant equivalent to 25 percent of the participant's loan indebtedness, not to exceed
the balance of the participant's qualifying educational loans. Before receiving loan
repayment disbursements, and as requested, the participant and the employer must
complete and return to the commissioner an affidavit of practice form provided by the
commissioner verifying that the participant is practicing as required under paragraph (c).
The participant must provide the commissioner with verification that the full amount of
the loan repayment disbursement received by the participant has been applied toward
the designated loans. After each disbursement, verification must be received by the
commissioner and approved before the next loan repayment disbursement is made.
new text end

new text begin (f) If a participant does not fulfill the minimum commitment of service under
paragraph (c), the commissioner of human services shall collect from the participant the
full amount paid to the participant under the loan forgiveness program plus interest at
the rate established under section 270C.40. The commissioner shall deposit the money
collected in the general fund. The commissioner shall allow waivers of all or part of the
money owed the commissioner as a result of nonfulfillment if emergency circumstances
prevented fulfillment of the minimum service commitment.
new text end