(a)
(1) As used in this section, “electronic transcript” means a student transcript that is formatted and transmitted electronically in the uniform method prescribed by the Division of Higher Education and the Division of Elementary and Secondary Education for use by public schools and institutions of higher education in this state.
(2) An Arkansas public school shall use an electronic transcript in lieu of a paper transcript to:
(A) Provide to the Division of Higher Education as necessary to process state financial aid applications for students in grades nine through twelve (9-12);
(B) Transmit a transcript between public high schools to correctly enroll and place students in grades nine through twelve (9-12) transferring between public high schools and school districts; and
(C) Transmit a transcript to the Division of Elementary and Secondary Education.
(3) An institution of higher education in this state shall use an electronic transcript in lieu of a paper transcript:
(A) As the only method of accepting a transcript from an Arkansas public school;
(B) As the only method of accepting a transcript from or sending a transcript to another institution of higher education in this state;
(C) To provide to the Division of Higher Education as necessary to process state financial aid applications for higher education students; and
(D) To transmit a transcript to the Division of Elementary and Secondary Education.
(b)
(1) Except as provided under subdivision (b)(2) of this section, an institution of higher education that does not comply with this section shall not receive state financial aid on behalf of students.
(2) An institution of higher education with less than ten (10) students who receive financial aid from a program administered by the Division of Higher Education is exempt from the requirements under subsection (a) of this section and the penalty under this subsection.
(c)
(1) The Division of Elementary and Secondary Education shall prescribe a uniform method of formatting and electronically transmitting transcripts, which shall be used by all kindergarten through grade eight (K-8) public elementary or middle schools in this state.
(2) A public elementary or middle school shall use an electronic transcript in lieu of a paper transcript to transmit a transcript:
(A) Between public schools as necessary to correctly enroll and place students transferring between schools and school districts; and
(B) To the Division of Elementary and Secondary Education.