Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 554 3
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By: Senator C. Tucker 5
By: Representative Wooldridge 6
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For An Act To Be Entitled 8
AN ACT TO CREATE THE BEHAVIORAL HEALTH LOAN 9
FORGIVENESS PROGRAM; AND FOR OTHER PURPOSES. 10
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Subtitle 13
TO CREATE THE BEHAVIORAL HEALTH LOAN 14
FORGIVENESS PROGRAM. 15
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 18
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SECTION 1. Arkansas Code Title 6, Chapter 81, is amended to add an 20
additional subchapter to read as follows: 21
Subchapter 21 — Behavioral Health Loan Forgiveness Program 22
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6-81-2101. Definitions. 24
As used in this subchapter: 25
(1) “Behaviorally underserved community” means a given 26
geographical area in this state that the Secretary of the Department of Human 27
Services determines has unmet needs for behavioral health services caused by 28
factors, including without limitation: 29
(A) The ratio of mental health professionals to the 30
population in the given geographical area; 31
(B) The ratio of licensed alcoholism and substance abuse 32
counselors to the population in the given geographical area; 33
(C) The percentage of the population with incomes below 34
the federal poverty level in the given geographical area; 35
(D) Accessibility within the given geographical area to 36 SB554
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mental health professionals and alcoholism and substance use counselors; and 1
(E) Other relevant criteria the secretary may deem 2
necessary for a determination of unmet needs for behavioral health services 3
in the given geographical area; 4
(2) “Eligible loan” means the student loan debt incurred by a 5
participant to become a mental health professional or a licensed alcoholism 6
and drug abuse counselor; 7
(3) “Licensed alcoholism and drug abuse counselor” means the 8
same as defined in § 17 -27-401; 9
(4) “Mental health professional” means a psychiatrist, 10
psychologist, advanced practice registered nurse, therapist, counselor, or 11
social worker licensed in this state and certified by the Division of Aging, 12
Adult, and Behavioral Health Services of the Department of Human Services; 13
and 14
(5) “Participant” means a mental health professional or a 15
licensed alcoholism and substance abuse counselor who has been selected by 16
the secretary to participate in the Behavioral Health Loan Forgiveness 17
Program. 18
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6-81-2102. Creation. 20
(a) There is created the Behavioral Health Loan Forgiveness Program to 21
be administered by the Department of Human Services in accordance with the 22
provisions of this subchapter. 23
(b) The program shall promote mental health professionals serving in 24
behaviorally underserved communities in this state by providing participants 25
with payments toward eligible loans in accordance with this subchapter. 26
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6-81-2103. Secretary of Department of Human Services powers and 28
duties. 29
The Secretary of the Department of Human Services shall: 30
(1) Determine the behaviorally underserved communities in this 31
state; 32
(2) Prescribe forms for and regulate the submission of 33
applications for possible participants in the Behavioral Health Loan 34
Forgiveness Program; 35
(3) Determine eligibility of applicants; 36 SB554
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(4) Select applicants each year for participation in the program 1
within the limits of available funding; 2
(5) Select applicants for the program based on their suitability 3
for best addressing the unmet needs of behaviorally underserved communities 4
as indicated by experience or training; 5
(6) Give preference to applicants for the program closest to 6
completing their training or having completed their training; 7
(7) Otherwise administer the program; and 8
(8) Promulgate reasonable rules necessary to implement this 9
subchapter, including rules addressing the requirements and in conformance 10
with the requirements of the Arkansas Administrative Procedure Act, § 25-15-11
201 et seq., and other appropriate state laws in promulgating and placing 12
rules into effect to establish the program. 13
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6-81-2104. Eligibility. 15
(a) To be eligible to be a participant, an individual shall: 16
(1) Either: 17
(A) Be a mental health professional or a licensed 18
alcoholism and substance abuse counselor; or 19
(B) Be enrolled in a training or education program to 20
become a mental health professional or a licensed alcoholism and substance 21
abuse counselor; and 22
(2) Submit an application for the Behavioral Health Loan 23
Forgiveness Program. 24
(b) An applicant selected to be a participant shall sign a contract to 25
agree to serve a minimum three -year full-time service obligation as a mental 26
health professional or a licensed alcoholism and substance abuse counselor in 27
behaviorally underserved communities. 28
(c) A participant shall: 29
(1) Secure his or her own qualified educational loans; 30
(2) Verify to the Secretary of the Department of Human Services 31
with documentation the amount of the participant’s eligible loans; and 32
(3) Designate to the secretary a particular eligible loan toward 33
which the participant will use any loan repayment disbursement from the 34
Arkansas Behavioral Health Professional Student Loan Repayment Fund. 35
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6-81-2105. Disbursement. 1
(a)(1) The Secretary of the Department of Human Services shall 2
distribute available funds from the Arkansas Behavioral Health Professional 3
Student Loan Repayment Fund to participants proportionally among the eligible 4
professions according to the vacancy rate for mental health professionals and 5
licensed alcoholism and substance abuse counselors. 6
(2) If the secretary does not receive enough qualified 7
applicants each year to use the entire allocation of funds for one (1) 8
eligible profession, the remaining funds may be allocated proportionally 9
among the other eligible professions according to the vacancy rate for each 10
profession, as determined by the secretary. 11
(b) Upon the completion of each year that a participant meets the 12
service obligation required under § 6 -81-2104(b), up to a maximum of three 13
(3) years, the secretary shall make annual disbursements from the fund 14
directly to the participant in an amount equivalent to fifteen percent (15%) 15
of the average educational debt for indebted graduates in the participant’s 16
profession in the year closest to the participant’s selection for the 17
Behavioral Health Loan Forgiveness Program for which information is 18
available, not to exceed the balance of the participant’s qualifying 19
educational loans. 20
(c)(1) Before receiving loan repayment disbursements from the fund and 21
as requested by the secretary, a participant shall complete and return to the 22
secretary a confirmation of practice form provided by the secretary verifying 23
that the participant is practicing as required under § 6 -81-2104(b). 24
(2) A participant who moves their practice to a new location 25
remains eligible for loan repayment in the program as long as he or she 26
practices as required under § 6 -81-2104(b). 27
(3) The participant shall verify to the secretary with 28
documentation that the full amount of loan repayment disbursement from the 29
fund received by the participant as part of the program has been applied 30
toward the designated eligible loan. 31
(4) The secretary shall not make an additional loan repayment 32
disbursement to a participant from the fund until the verification required 33
by subdivision (c)(3) of this section has been received by the secretary. 34
(d)(1) If a participant does not fulfill the contract of service 35
required under § 6-81-2104(b), the secretary shall: 36 SB554
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(A) Collect from the participant the total amount paid to 1
the participant under the program plus interest at a rate of five percent 2
(5%) per annum; and 3
(B) Deposit the money collected under this subchapter into 4
the fund. 5
(2) The secretary shall allow waivers of all or part of the 6
money owed to the secretary as a result of the nonfulfillment penalty under 7
subdivision (d)(1) of this section if, subject to the secretary’s discretion, 8
exigent circumstances prevented the participant’s fulfillment of the terms of 9
the contract required by § 6 -81-2104(b). 10
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SECTION 2. Arkansas Code Title 19, Chapter 5, Subchapter 12, is 12
amended to add an additional section to read as follows: 13
19-5-1288. Arkansas Behavioral Health Professional Student Loan 14
Repayment Fund. 15
(a) There is created on the books of the Treasurer of State, the 16
Auditor of State, and the Chief Fiscal Officer of the State a miscellaneous 17
fund to be known as the "Arkansas Behavioral Health Professional Student Loan 18
Repayment Fund". 19
(b) The fund shall consist of: 20
(1) Moneys obtained from private or public grants, gifts, or 21
donations that are designated to be credited to the fund; and 22
(2) Any other funds authorized, appropriated, or provided by 23
law. 24
(c) The fund shall be used by the Department of Human Services to 25
create and maintain the Behavioral Health Loan Forgiveness Program under § 6 -26
81-2101 et seq. 27
(d) Moneys remaining in the fund at the end of each fiscal year shall 28
carry forward and be made available for the purposes stated in this section 29
in the next fiscal year. 30
(e) The Secretary of the Department of Human Services shall: 31
(1) Administer and disburse the fund; 32
(2) Manage, operate, and control all funds and property 33
appropriated or otherwise contributed to the fund for the program; 34
(3) Accept gifts, grants, bequests, or devises and apply them to 35
the fund as a part of the program; 36 SB554
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(4) Accept moneys from federal programs that may be used for 1
furtherance of the program; and 2
(5) Promulgate reasonable rules necessary to implement this 3
section, including rules addressing the requirements and in conformance with 4
the requirements of the Arkansas Administrative Procedure Act, § 25 -15-201 et 5
seq., and other appropriate state laws in promulgating and placing rules into 6
effect to establish the fund. 7
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