An act TO CREATE THE BEHAVIORAL HEALTH LOAN 10 FORGIVENESS PROGRAM, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas              A Bill
2 95th General Assembly

3 Regular Session, 2025                                          SENATE BILL 554

4

5 By: Senator C. Tucker

6 By: Representative Wooldridge

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8                                For An Act To Be Entitled

9   AN ACT TO CREATE THE BEHAVIORAL HEALTH LOAN

10  FORGIVENESS PROGRAM; AND FOR OTHER PURPOSES.

11

12

13                               Subtitle

14                       TO CREATE THE BEHAVIORAL HEALTH LOAN

15                       FORGIVENESS PROGRAM.

16

17

18 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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20  SECTION 1. Arkansas Code Title 6, Chapter 81, is amended to add an

21 additional subchapter to read as follows:

22  Subchapter 21 -- Behavioral Health Loan Forgiveness Program

23

24  6-81-2101. Definitions.

25  As used in this subchapter:

26  (1) "Behaviorally underserved community" means a given

27 geographical area in this state that the Secretary of the Department of Human

28 Services determines has unmet needs for behavioral health services caused by

29 factors, including without limitation:

30                       (A) The ratio of mental health professionals to the

31 population in the given geographical area;

32                       (B) The ratio of licensed alcoholism and substance abuse

33 counselors to the population in the given geographical area;

34                       (C) The percentage of the population with incomes below

35 the federal poverty level in the given geographical area;

36                       (D) Accessibility within the given geographical area to

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1 mental health professionals and alcoholism and substance use counselors; and

2            (E) Other relevant criteria the secretary may deem

3 necessary for a determination of unmet needs for behavioral health services

4 in the given geographical area;

5            (2) "Eligible loan" means the student loan debt incurred by a

6 participant to become a mental health professional or a licensed alcoholism

7 and drug abuse counselor;

8            (3) "Licensed alcoholism and drug abuse counselor" means the

9 same as defined in � 17-27-401;

10           (4) "Mental health professional" means a psychiatrist,

11 psychologist, advanced practice registered nurse, therapist, counselor, or

12 social worker licensed in this state and certified by the Division of Aging,

13 Adult, and Behavioral Health Services of the Department of Human Services;

14 and

15           (5) "Participant" means a mental health professional or a

16 licensed alcoholism and substance abuse counselor who has been selected by

17 the secretary to participate in the Behavioral Health Loan Forgiveness

18 Program.

19

20         6-81-2102. Creation.

21         (a) There is created the Behavioral Health Loan Forgiveness Program to

22 be administered by the Department of Human Services in accordance with the

23 provisions of this subchapter.

24         (b) The program shall promote mental health professionals serving in

25 behaviorally underserved communities in this state by providing participants

26 with payments toward eligible loans in accordance with this subchapter.

27

28         6-81-2103. Secretary of Department of Human Services powers and

29 duties.

30         The Secretary of the Department of Human Services shall:

31           (1) Determine the behaviorally underserved communities in this

32 state;

33           (2) Prescribe forms for and regulate the submission of

34 applications for possible participants in the Behavioral Health Loan

35 Forgiveness Program;

36           (3) Determine eligibility of applicants;

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1   (4) Select applicants each year for participation in the program

2 within the limits of available funding;

3   (5) Select applicants for the program based on their suitability

4 for best addressing the unmet needs of behaviorally underserved communities

5 as indicated by experience or training;

6   (6) Give preference to applicants for the program closest to

7 completing their training or having completed their training;

8   (7) Otherwise administer the program; and

9   (8) Promulgate reasonable rules necessary to implement this

10 subchapter, including rules addressing the requirements and in conformance

11 with the requirements of the Arkansas Administrative Procedure Act, � 25-15-

12 201 et seq., and other appropriate state laws in promulgating and placing

13 rules into effect to establish the program.

14

15  6-81-2104. Eligibility.

16  (a) To be eligible to be a participant, an individual shall:

17  (1) Either:

18  (A) Be a mental health professional or a licensed

19 alcoholism and substance abuse counselor; or

20  (B) Be enrolled in a training or education program to

21 become a mental health professional or a licensed alcoholism and substance

22 abuse counselor; and

23  (2) Submit an application for the Behavioral Health Loan

24 Forgiveness Program.

25  (b) An applicant selected to be a participant shall sign a contract to

26 agree to serve a minimum three-year full-time service obligation as a mental

27 health professional or a licensed alcoholism and substance abuse counselor in

28 behaviorally underserved communities.

29  (c) A participant shall:

30  (1) Secure his or her own qualified educational loans;

31  (2) Verify to the Secretary of the Department of Human Services

32 with documentation the amount of the participant's eligible loans; and

33  (3) Designate to the secretary a particular eligible loan toward

34 which the participant will use any loan repayment disbursement from the

35 Arkansas Behavioral Health Professional Student Loan Repayment Fund.

36

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1   6-81-2105. Disbursement.

2   (a)(1) The Secretary of the Department of Human Services shall

3 distribute available funds from the Arkansas Behavioral Health Professional

4 Student Loan Repayment Fund to participants proportionally among the eligible

5 professions according to the vacancy rate for mental health professionals and

6 licensed alcoholism and substance abuse counselors.

7   (2) If the secretary does not receive enough qualified

8 applicants each year to use the entire allocation of funds for one (1)

9 eligible profession, the remaining funds may be allocated proportionally

10 among the other eligible professions according to the vacancy rate for each

11 profession, as determined by the secretary.

12  (b) Upon the completion of each year that a participant meets the

13 service obligation required under � 6-81-2104(b), up to a maximum of three

14 (3) years, the secretary shall make annual disbursements from the fund

15 directly to the participant in an amount equivalent to fifteen percent (15%)

16 of the average educational debt for indebted graduates in the participant's

17 profession in the year closest to the participant's selection for the

18 Behavioral Health Loan Forgiveness Program for which information is

19 available, not to exceed the balance of the participant's qualifying

20 educational loans.

21  (c)(1) Before receiving loan repayment disbursements from the fund and

22 as requested by the secretary, a participant shall complete and return to the

23 secretary a confirmation of practice form provided by the secretary verifying

24 that the participant is practicing as required under � 6-81-2104(b).

25  (2) A participant who moves their practice to a new location

26 remains eligible for loan repayment in the program as long as he or she

27 practices as required under � 6-81-2104(b).

28  (3) The participant shall verify to the secretary with

29 documentation that the full amount of loan repayment disbursement from the

30 fund received by the participant as part of the program has been applied

31 toward the designated eligible loan.

32  (4) The secretary shall not make an additional loan repayment

33 disbursement to a participant from the fund until the verification required

34 by subdivision (c)(3) of this section has been received by the secretary.

35  (d)(1) If a participant does not fulfill the contract of service

36 required under � 6-81-2104(b), the secretary shall:

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1                    (A) Collect from the participant the total amount paid to

2 the participant under the program plus interest at a rate of five percent

3 (5%) per annum; and

4                    (B) Deposit the money collected under this subchapter into

5 the fund.

6            (2) The secretary shall allow waivers of all or part of the

7 money owed to the secretary as a result of the nonfulfillment penalty under

8 subdivision (d)(1) of this section if, subject to the secretary's discretion,

9 exigent circumstances prevented the participant's fulfillment of the terms of

10 the contract required by � 6-81-2104(b).

11

12       SECTION 2. Arkansas Code Title 19, Chapter 5, Subchapter 12, is

13 amended to add an additional section to read as follows:

14       19-5-1288. Arkansas Behavioral Health Professional Student Loan

15 Repayment Fund.

16       (a) There is created on the books of the Treasurer of State, the

17 Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous

18 fund to be known as the "Arkansas Behavioral Health Professional Student Loan

19 Repayment Fund".

20       (b) The fund shall consist of:

21           (1) Moneys obtained from private or public grants, gifts, or

22 donations that are designated to be credited to the fund; and

23           (2) Any other funds authorized, appropriated, or provided by

24 law.

25       (c) The fund shall be used by the Department of Human Services to

26 create and maintain the Behavioral Health Loan Forgiveness Program under � 6-

27 81-2101 et seq.

28       (d) Moneys remaining in the fund at the end of each fiscal year shall

29 carry forward and be made available for the purposes stated in this section

30 in the next fiscal year.

31       (e) The Secretary of the Department of Human Services shall:

32           (1) Administer and disburse the fund;

33           (2) Manage, operate, and control all funds and property

34 appropriated or otherwise contributed to the fund for the program;

35           (3) Accept gifts, grants, bequests, or devises and apply them to

36 the fund as a part of the program;

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1   (4) Accept moneys from federal programs that may be used for

2 furtherance of the program; and

3   (5) Promulgate reasonable rules necessary to implement this

4 section, including rules addressing the requirements and in conformance with

5 the requirements of the Arkansas Administrative Procedure Act, � 25-15-201 et

6 seq., and other appropriate state laws in promulgating and placing rules into

7 effect to establish the fund.

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