Current through Register Vol. 51, No. 3, September 1, 2024
RELATES TO:
KRS
164.740,
164.7890
NECESSITY, FUNCTION, AND CONFORMITY:
KRS
164.744(2) authorizes the
authority to provide scholarships.
KRS
164.748(4) and
164.753(3)
require the authority to promulgate administrative regulations pertaining to
the awarding of scholarships as provided in
KRS
164.740 to
164.7891.
KRS
164.7890(9) requires the
authority to promulgate administrative regulations establishing the terms and
conditions for the award, cancellation, and repayment of coal county
scholarships for pharmacy students. This administrative regulation establishes
the requirements for service cancellation and repayment of scholarships
provided under the program.
Section 1.
Definitions.
(1) "Coal-producing county" is
defined in
KRS
164.7890(2).
(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) "Full-time practice" means providing
services as a pharmacist in a coal-producing county for a minimum of 2,000
hours per calendar year.
(4)
"Qualified service" is defined in
KRS
164.7890(3)(d).
Section 2. Cancellation.
(1) A recipient shall receive cancellation
under this program for each year during which service is provided as specified
in
KRS
164.7890(5)(b) if the
recipient:
(a) Has completed the program of
study;
(b) Has provided qualified
service in a coal-producing county in Kentucky; and
(c) Has submitted to the authority written
verification of qualified service.
(2) A recipient rendering qualified service
shall remain eligible for the credit cancellation if:
(a) The county in which qualified service is
provided ceases to be a coal-producing county as defined in
KRS
164.7890(2); and
(b) The recipient continues to render
continuous qualified service in the area.
Section 3. Repayment.
(1) Interest at the rate of six (6) percent
per annum shall be applicable to the coal county scholarship under this section
and shall begin accruing upon disbursement of the award.
(2) If repayment becomes necessary pursuant
to
KRS
164.7890(5)(c), the
authority shall send a written notification of demand for repayment to the
scholarship recipient's last known address. The notification shall be effective
upon mailing.
Section 4.
Application of Payment.
(1) The authority may
agree to accept repayment in installments in accordance with a schedule
established by the authority.
(2)
Payments shall first be applied to interest and then to principal on the
earliest unpaid promissory note.
(3) If a repayment obligation subsequently
becomes eligible for service credit cancellation as a result of the recipient's
provision of pharmacy service, 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
pharmacy service in a coal-producing county in the Commonwealth of Kentucky
shall be removed from default status.
Section 6. Rehabilitation.
(1) The authority shall offer a recipient in
default under this program an opportunity to rehabilitate the loan obligation
in order to remove it from default.
(2) A defaulted recipient interested in
pursuing loan rehabilitation shall contact the authority and enter into a
written agreement to submit six (6) consecutive, voluntary, on-time monthly
payments to the agency of the Commonwealth currently charged with collecting
the obligation.
(3) At the
completion of the rehabilitation repayment agreement, the recipient's loan
shall be removed from default and the account shall be transferred back to the
authority which shall resume servicing the loan.
(4) A refund of fees or charges assessed
during the default period shall not be due a recipient who completes
rehabilitation.
(5) A recipient
whose loan obligation has been removed from default due to rehabilitation shall
not be eligible for subsequent rehabilitation if there is a subsequent
default.
Section 7.
Disability Discharge. A conditional or permanent discharge of the repayment
obligation required by this program shall be granted by the Authority upon
submission by the recipient of the documentation required by this section.
(1) Conditional discharge. A conditional
discharge shall be granted for a maximum two (2) year period, subject to annual
review by the Authority, upon the submission of one (1) of the following as
proof of the recipient's qualifying disability:
(a) A finding of permanent disability by the
Social Security Administration; or
(b) A statement by the recipient's treating
physician that:
1. Identifies:
a. The nature of the condition; and
b. The date the condition
occurred; and
2.
Certifies that the:
a. Recipient is unable to
work or earn money; and
b. Condition
is expected to persist indefinitely.
(2) Permanent discharge. At the expiration of
the two (2) year Conditional Discharge period specified in subsection (1) of
this section, the Authority shall grant a permanent discharge to a recipient
under this program upon the Authority's review of the submission by the
recipient of current documentation verifying that the qualifying disability
continues to exist at the time the documentation is submitted.
STATUTORY AUTHORITY:
KRS
164.744(2),
164.748(4),
164.753(3),
164.7890(9)
