Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO:
KRS
164.7891
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
164.7891(9) requires the
authority to promulgate administrative regulations for administration of the
Osteopathic Medicine Scholarship Program. This administrative regulation
establishes procedures for the application of payments made under the
Osteopathic Medicine Scholarship Program.
Section
1. Definitions.
(1) "Authority"
is defined in
KRS
164.740(1).
(2) "Default" means the status of an
obligation under this program that has entered repayment and upon which no
payment has been made for a cumulative period of 180 days following the
repayment begin date for the obligation.
(3) "Disbursement" means the date the school
indicates on the disbursement roster that funds were either credited to the
student's account or disbursed to the student in accordance with
11
KAR 14:030, Section 2.
(4) "Full-time practice in the Commonwealth
of Kentucky as a licensed doctor of osteopathy for a majority of the calendar
year" means practicing in a qualified field for at least 2000 hours per
calendar year.
(5) "Qualified
field" means family practice, general practice, general internal medicine,
general pediatrics, general obstetrics or gynecology.
(6) "Qualified service" is defined in
KRS
164.7891(3)(c).
Section 2.
(1) The scholarship recipient shall
immediately become liable for repayment of all outstanding promissory notes,
including unpaid principal and interest accrued since the date of disbursement,
if the scholarship recipient:
(a) Ceases
enrollment at the school of osteopathic medicine prior to completion of the
program of study;
(b) Begins, but
fails to complete, an internship leading to licensure to provide qualified
service;
(c)
1. Fails to begin a residency in a qualified
field immediately following completion of the program of study at the school of
osteopathic medicine or immediately following completion of an intervening
internship; or
2. Begins, but fails
to complete, a residency in a qualified field;
(d) Fails to obtain a license to practice
osteopathic medicine in the Commonwealth; or
(e) Otherwise fails to perform qualified
service in full-time practice in the Commonwealth of Kentucky as a licensed
doctor of osteopathy for a majority of the calendar year after obtaining a
license to practice osteopathic medicine.
(2) If the authority has reason to believe
that an event specified in subsection (1) of this section has occurred, the
authority shall send to the scholarship recipient's last known address written
notification of demand for payment of all outstanding promissory notes,
including unpaid principal and interest accrued since the date of disbursement,
that shall be effective upon mailing.
(3) The authority may agree, in its sole
discretion, to accept repayment in installments in accordance with a schedule
established by the authority. If more than one (1) promissory note has come due
for repayment and remains unpaid, payments shall first be applied to the
earliest unpaid promissory note. Payments shall be applied first to accrued
interest and then to principal.
Section 3. If the scholarship recipient
obligated for repayment remits a partial payment, the payment shall first be
applied to accrued interest and then to unpaid principal on the earliest unpaid
promissory note and on each unpaid promissory note in the order in which the
promissory notes were executed.
Section
4.
(1) The interest rate
applicable to repayment of a promissory note under this program shall be six
(6) percent per annum beginning April 1, 2005. Prior to April 1, 2005, the
interest rate shall be twelve (12) percent per annum.
(2) If a repayment obligation subsequently
becomes eligible for service credit cancellation as a result of the recipient's
completion of an eligible program of study and provision of qualified service
through full-time practice in the Commonwealth of Kentucky as a licensed doctor
of osteopathy, refund of payments previously made shall not be given to the
recipient.
Section 5.
Default.
(1) Upon default on a repayment
obligation under this program, the recipient's account shall be transferred to
the appropriate agency of the Commonwealth of Kentucky for collections and
shall be subject to the collection charges and fees assessed by that
agency.
(2) A recipient whose
repayment obligation has defaulted and who subsequently begins providing
qualified service in the Commonwealth of Kentucky shall be removed from default
status.
STATUTORY AUTHORITY:
KRS
164.748(4),
164.7891(9)