Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
                                           Act 282 of the Regular Session
 1   State of Arkansas
 2   93rd General Assembly                        A Bill
 3   Regular Session, 2021                                                             HOUSE BILL 1200
 4
 5   By: Representative J. Mayberry
 6   By: Senators K. Hammer, J. English
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 8                                     For An Act To Be Entitled
 9                     AN ACT TO AMEND THE ARKANSAS REHABILITATION SERVICES
10                     FORGIVENESS OF STUDENT LOAN PROGRAM; TO CLARIFY
11                     REQUIREMENTS FOR ELIGIBILITY; AND FOR OTHER PURPOSES.
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14                                                 Subtitle
15                           TO AMEND THE ARKANSAS REHABILITATION
16                           SERVICES FORGIVENESS OF STUDENT LOAN
17                           PROGRAM; AND TO CLARIFY REQUIREMENTS FOR
18                           ELIGIBILITY.
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21   BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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23            SECTION 1.      Arkansas Code  25-30-206 is amended to read as follows:
24            25-30-206.      Arkansas Rehabilitation Services Forgiveness of Student
25   Loan Program.
26            (a)   There is established the Arkansas Rehabilitation Services
27   Forgiveness of Student Loan Program to assist counselors employed by eligible
28   employees of Arkansas Rehabilitation Services with the repayment of student
29   loans.
30            (b)(1)     The program shall be administered by Arkansas Rehabilitation
31   Services.
32                     (2)   Arkansas Rehabilitation Services shall promulgate rules for
33   determining: a counselor's eligibility for a loan under the program that
34   shall include the following requirements:
35                           (A)   Satisfactory completion of any probationary employment
36   period;
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 1                      (B)   Proof of a student loan that remains unpaid, including
 2   the name and address of the creditor; and
 3                      (C)   An executed employment contract in which the counselor
 4   agrees to:
 5                             (i)    Work for Arkansas Rehabilitation Services for a
 6   term that equals two (2) years for each year that the program makes a payment
 7   on the counselor's student loan; and
 8                             (ii)   Reimburse the program the full amount of any
 9   loan payments made under the program if the counselor resigns or is
10   terminated for cause before the term of the contract terminates.
11                (3)   The amount of the payment to be made directly to the
12   counselor's student loan creditor may not exceed:
13                      (A)   Two thousand dollars ($2,000) per year; or
14                      (B)   Ten thousand dollars ($10,000) per employee regarding
15   eligibility, payment, and program management consistent with this section.
16        (c)     An employee of Arkansas Rehabilitation Services is required to
17   satisfy the following in order to be eligible for the program:
18                (1)   Completion of a six-month probationary period, beginning
19   with the first day of employment with Arkansas Rehabilitation Services;
20                (2)   Provision of proof that the employee incurred student loan
21   debt for purposes of obtaining a degree in the field of vocational
22   rehabilitation, including without limitation the name and address of the
23   student loan creditor;
24                (3)   Provision of proof that the student loan is unpaid at the
25   time the employee applies for the program; and
26                (4)   Execution of a contract in which the employee agrees that
27   Arkansas Rehabilitation Services is not obligated to issue further payments
28   under the program if the employee resigns or is terminated for cause while
29   participating in the program.
30        (d)     Payments under the program are made directly to the employee's
31   student loan creditor and are subject to the following limitations:
32                (1)   A payment shall be issued in installments not to exceed two
33   thousand dollars ($2,000);
34                (2)   An eligible employee is required to have been continually
35   employed by Arkansas Rehabilitation Services for the two (2) years prior to
36   issuance of an installment in order to receive the installment; and
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 1              (3)   An eligible employee may receive no more than ten thousand
 2   dollars ($10,000) or up to five (5) installments under the program.
 3        (e)   The total payments to all employees under the program shall not
 4   exceed eighty thousand dollars ($80,000) per fiscal year.
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 8                                 APPROVED: 3/8/21
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