Stricken language would be deleted from and underlined language would be added to present law. *CRH147* 02/11/2025 7:23:11 AM CRH147 State of Arkansas 1 95th General Assembly A Bill 2 Regular Session, 2025 HOUSE BILL 1446 3 4 By: Representative Lundstrum 5 By: Senator J. English 6 7 For An Act To Be Entitled 8 AN ACT TO AMEND THE ARKANSAS WORKFORCE CHALLENGE 9 SCHOLARSHIP PROGRAM; TO AMEND THE DEFINITION OF 10 "APPROVED INSTITUTION OF HIGHER EDUCATION" TO INCLUDE 11 CERTAIN PUBLIC OR PRIVATE VOCATIONAL -TECHNICAL 12 SCHOOLS AND TECHNICAL INSTITUTES; TO INCREASE THE 13 AWARD AMOUNTS; TO DECLARE AN EMERGENCY; AND FOR OTHER 14 PURPOSES. 15 16 17 Subtitle 18 TO AMEND THE ARKANSAS WORKFORCE 19 CHALLENGE SCHOLARSHIP PROGRAM; AND TO 20 DECLARE AN EMERGENCY. 21 22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23 24 SECTION 1. Arkansas Code § 6 -85-302 is amended to read as follows: 25 6-85-302. Definitions. 26 As used in this subchapter: 27 (1) “Approved institution of higher education” means an 28 institution of higher education approved by the Division of Higher Education 29 to participate in the Arkansas Workforce Challenge Scholarship Program and 30 that is: 31 (A) A state-supported two-year or four-year college or 32 university; or 33 (B) A private, nonprofit two -year or four-year college or 34 university with its primary headquarters located in Arkansas that is eligible 35 to receive Title IV federal student aid funds; 36 HB1446 2 02/11/2025 7:23:11 AM CRH147 (C) A public or private vocational -technical school that 1 is: 2 (i) Eligible to receive Title IV federal student aid 3 funds; 4 (ii) Included on the Workforce Innovation and 5 Opportunity Act eligible training provider list; 6 (iii) Qualified to receive approval for veteran's 7 education benefits from the United States Department of Veterans Affairs; or 8 (iv) Included on the State Board of Private Career 9 Education list; or 10 (D) A public or private technical institute that is: 11 (i) Eligible to receive Title IV federal student aid 12 funds; 13 (ii) Included on the Workforce Innovation and 14 Opportunity Act eligible training provider list; 15 (iii) Qualified to receive approval for veteran's 16 education benefits from the United States Department of Veterans Affairs; or 17 (iv) Included on the State Board of Private Career 18 Education list; and 19 (2)(A) “Certificate program” means a program that is offered or 20 made available to a student by an approved institution of higher education 21 that leads to the obtainment of a certification or license, including without 22 limitation a program operated or sponsored by a third party or a United 23 States Department of Labor Registered Apprenticeship Program . 24 (B) The credit hours or contact hours awarded for a 25 certificate program may include credit hours or contact hours that are not 26 creditable toward an associate or a baccalaureate degree. 27 28 SECTION 2. Arkansas Code § 6 -85-304 is amended to read as follows: 29 6-85-304. Eligibility. 30 (a) A student is eligible to receive an Arkansas Workforce Challenge 31 Scholarship for an academic year if the student applies to the Division of 32 Higher Education by a date determined by the Division of Higher Education 33 preceding the academic year and: 34 (1) Is an Arkansas resident or, if the student is less than 35 twenty-one (21) years of age, either the student or one (1) parent of the 36 HB1446 3 02/11/2025 7:23:11 AM CRH147 student is an Arkansas resident; 1 (2) Is a citizen of the United States or is a lawful permanent 2 resident; 3 (3) Meets either of the following requirements: 4 (A) Graduated from a: 5 (i) Public high school in Arkansas or another state; 6 (ii) Private high school in Arkansas or another 7 state; or 8 (iii) Home school under § 6 -15-501 et seq. or 9 recognized by another state; or 10 (B) Received a high school equivalency diploma approved by 11 the Adult Education Section or another state; 12 (3)(4) Is not receiving a scholarship under the Arkansas 13 Academic Challenge Scholarship Program, § 6 -85-201 et seq.; 14 (4)(5) Is accepted for admission in a program of study at an 15 approved institution of higher education or a private trade school licensed 16 to do business in Arkansas that leads to an associate degree or a certificate 17 program that results in a portable license or certificate in one (1) of the 18 following high-demand fields: 19 (A) Industry Manufacturing; 20 (B) Health care; and 21 (C) Information technology; and 22 (C) Construction trades; and 23 (D) Logistics and distribution; and 24 (5)(A)(6) Whose program of study or certificate program will 25 result in the student's being qualified to work in an occupation identified 26 by the Division of Higher Education, in consultation with the Division of 27 Workforce Services under subdivision (a)(5)(B)(i) of this section . 28 (B)(i) The Division of Workforce Services shall provide 29 annually to the Division of Higher Education by March 1 a list that 30 identifies the five (5) most in -demand occupations in this state in each 31 high-demand field under subdivision (a)(4) of this section that require the 32 completion of a program of study that leads to an associate degree or a 33 certificate program. 34 (ii) The Division of Workforce Services shall publish 35 on its website the list under subdivision (a)(5)(B)(i) of this section and 36 HB1446 4 02/11/2025 7:23:11 AM CRH147 data supporting the list. 1 (b)(1) A student who received a scholarship under this subchapter and 2 successfully completed a program of study or certificate program that meets 3 the requirements under subdivision (a)(4) of this section is eligible to 4 reapply for a scholarship under this subchapter if the student is accepted 5 for admission in a different program of study or certificate program that 6 meets the requirements under subdivision (a)(4) of this section. 7 (2) A student who received a scholarship under this subchapter 8 and does not successfully complete the program of study or certificate 9 program is eligible to reapply for and receive a scholarship one (1) time 10 only. 11 (b)(1) An instructor of the program of study or certificate program 12 under subdivision (a)(6) of this section is required to be licensed or 13 certified in the subject he or she teaches. 14 (2) If the program of study or certificate program is a United 15 States Department of Labor Registered Apprenticeship Program, the 16 qualifications of the instructor shall be determined by the rules for 17 Arkansas's Registered Apprenticeship Programs promulgated by the Office of 18 Skills Development. 19 20 SECTION 3. Arkansas Code § 6 -85-305(b), concerning the award amounts 21 distributed under the Arkansas Workforce Challenge Scholarship Program, is 22 amended to read as follows: 23 (b)(1) The division shall distribute scholarships from the funds 24 available in an equal amount to every student eligible to receive a 25 scholarship under this subchapter. 26 (2) Except as provided in subsection (c) of this section, the 27 maximum scholarship award a student may receive in an academic year shall be 28 the lesser of: 29 (A) Eight hundred dollars ($800) Two thousand five hundred 30 dollars ($2,500); or 31 (B)(i) The cost of the certificate program or program of 32 study. 33 (ii) The cost of a certificate program or program of 34 study shall include: 35 (a) Tuition, fees, or other charges; 36 HB1446 5 02/11/2025 7:23:11 AM CRH147 (b) Textbooks or other course materials; and 1 (c) Equipment needed for a course. 2 (3) The scholarship awards may be used for expenses included in 3 the cost of the certificate program or program of study. 4 (4) A scholarship under this section shall be only for the 5 academic year for which it is awarded. 6 (5) If the program of study or certificate program extends 7 beyond an academic year, a student who is making sufficient progress may 8 carry over any unspent portion of the scholarship. 9 10 SECTION 4. Arkansas Code § 6 -85-307 is amended to read as follows: 11 6-85-307. Rules. 12 The Division of Higher Education , in consultation with the Division of 13 Workforce Services, shall promulgate rules to implement this subchapter. 14 15 SECTION 5. Arkansas Code Title 6, Chapter 85, Subchapter 3, is amended 16 to add an additional section to read as follows: 17 6-85-308. Reporting. 18 (a) An approved institution of higher education or certificate program 19 accepting funds under this subchapter shall submit an annual report to the 20 Division of Higher Education that includes without limitation the following: 21 (1) The number of students who graduate with a degree, license, 22 or certification from the approved institution of higher education; 23 (2) A comparison of the enrollment data and graduation data; 24 (3) Job placement statistics; 25 (4) Starting salaries of graduates; and 26 (5) Student information required to be provided to the division 27 under § 6-85-216. 28 (b) The division shall submit the annual report required under 29 subsection (a) of this section to the: 30 (1) House Committee on Education; 31 (2) Senate Committee on Education; and 32 (3) Lottery Oversight Subcommittee of the Legislative Council. 33 34 SECTION 6. DO NOT CODIFY. Rules. 35 (a) When adopting the initial rules required under this act, the 36 HB1446 6 02/11/2025 7:23:11 AM CRH147 Division of Higher Education shall file the final rules with the Secretary of 1 State for adoption under § 25 -15-204(f): 2 (1) On or before ninety (90) days from the effective date of 3 this act; or 4 (2) If approval under § 10 -3-309 has not occurred by ninety (90) 5 days from the effective date of this act, as soon as practicable after 6 approval under § 10-3-309. 7 (b) The division shall file the proposed rules with the Legislative 8 Council under § 10-3-309(c) sufficiently in advance of ninety (90) days from 9 the effective date of this act, so that the Legislative Council may consider 10 the rules for approval before ninety (90) days from the effective date of 11 this act. 12 13 SECTION 7. EMERGENCY CLAUSE. It is found and determined by the 14 General Assembly of the State of Arkansas that the Arkansas Constitution, 15 Article 19, § 14 was amended by Issue 1 of 2024 to allow state lottery 16 proceeds to fund vocational or technical school scholarships for Arkansans; 17 that there are workforce needs within the state, and the current law needs to 18 be amended immediately in order to effectuate this change voted for by the 19 people that would allow Arkansans to benefit from this change in the use of 20 lottery proceeds; and that this act is immediately necessary because the 21 process and procedures to distribute these scholarships need to be updated as 22 quickly as possible in order to provide scholarship funding for Arkansans 23 that would allow them to receive training and join the workforce of the 24 state. Therefore, an emergency is declared to exist, and this act being 25 immediately necessary for the preservation of the public peace, health, and 26 safety shall become effective on: 27 (1) The date of its approval by the Governor; 28 (2) If the bill is neither approved nor vetoed by the Governor, 29 the expiration of the period of time during which the Governor may veto the 30 bill; or 31 (3) If the bill is vetoed by the Governor and the veto is 32 overridden, the date the last house overrides the veto. 33 34 35 36