GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

S	1 

SENATE BILL 1059

Short Title:  Social Workers' Ed. Loan Fund.	(Public)
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Sponsors: Senators Walker; and Lee.
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Referred to:  Children and Human Resources.
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May 6, 1993

A BILL TO BE ENTITLED
AN ACT TO ESTABLISH THE SOCIAL WORKERS' EDUCATION LOAN FUND AND TO APPROPRIATE FUNDS FOR ITS IMPLEMENTATION.
The General Assembly of North Carolina enacts:
Section 1.  Effective July 1, 1994, Article 3 of Chapter 143B of the General Statutes is amended by adding a new Part to read:
"Part 4B.  Social Workers' Education Loan Fund.
"§ 143B-150.25.  Social Workers' Education Loan Fund.
(a)	There is established in the Department of Human Resources the Social Workers' Education Loan Fund within the Office of the Secretary, to attract trained social workers into public child welfare positions in all county departments of social services in the State.  The Secretary shall administer the Fund in concert with the Department's responsibility for supervising public child welfare service training for the professional personnel rendering these services.
(b)	The Secretary shall ensure that all students receiving funds pursuant to this section meet the following eligibility criteria:
(1)	All students shall  be enrolled in an institution of higher education in North Carolina in an accredited bachelors of social work or masters of social work program;
(2)	All students shall be residents of North Carolina.  For purposes of this section, residency shall be determined by the same standard as residency for tuition purposes pursuant to G.S. 116-143.1;
(3)	All students shall enter into a legal agreement with the Department to accept employment in public child welfare in exchange for receiving any funds, which agreement shall include stipulation that the student is willing to accept employment in rural or other need-based counties; and
(4)	Any additional criteria that the Secretary considers necessary to administer the program effectively.
(c)	The Secretary shall ensure that the loan amounts are limited as follows:
(1)	For a student pursuing a bachelors of social work degree, four thousand dollars ($4,000) per year for a maximum of four years; and
(2)	For a student pursuing a masters of social work degree, five thousand dollars ($5,000) per year for a maximum of two years.
(d)	The Secretary shall ensure that the following loan cancellations and repayment schedules apply to all funds distributed pursuant to this section:
(1)	The individual who graduates with a bachelors of social work degree or a masters of social work degree and who works for a public child welfare agency in North Carolina shall have that amount of the loan cancelled that is based on the amount of time employed and the number of academic years funds were received.  One full year of employment shall cancel one academic year's loan, whether four thousand dollars ($4,000) or five thousand dollars ($5,000);
(2)	The individual who graduates with a bachelors of social work degree or a masters of social work degree and who works in public child welfare in North Carolina for the equivalent of the total number of academic years funds were received shall have the entire loan cancelled;
(3)	The individual who graduates with a bachelors of social work degree or a masters of social work degree and who does not work in public child welfare in North Carolina for any or all of the equivalent of the number of years funds were received shall repay the loan to the Department according to a schedule prescribed by the Secretary, plus ten percent (10%) annual interest; and
(4)	The individual who does not graduate with a bachelors of social work degree or a masters of social work degree shall repay the loan according to a schedule prescribed by the Secretary, plus fifteen percent (15%) annual interest.
The Secretary shall ensure that all repayments, including accrued interest, shall be placed in the Fund.
(e)	The Social Workers' Education Loan Fund established by this section shall award loans for education beginning with the 1994-95 academic year."
Sec. 2.  There is appropriated from the General Fund to the Department of Human Resources the sum of one million dollars ($1,000,000) for the 1994-95 fiscal year to implement this act.