Current through Register Vol. 50, No. 9, March 1, 2024
RELATES TO: KRS 151B.450-151B.475
NECESSITY, FUNCTION, AND CONFORMITY: KRS 151B.465(9) requires
the Board of Directors of the Kentucky Assistive Technology Loan Corporation to
promulgate administrative regulations through the cabinet to establish and
administer a program for providing low-interest loans to qualified borrowers
through qualified lenders for the acquisition of assistive technology. This
administrative regulation prescribes when, and under what conditions, assistive
technology loans shall be provided, in order to distribute limited funds
equitably over the population of qualified borrowers.
Section 1. Definitions.
(1) "KATLC" means the Kentucky Assistive
Technology Loan Corporation.
(2)
"Nonprofit organization" means an incorporated entity under the provisions of
KRS 273.163 to 273.387 that is in good standing with the Kentucky Office of the
Secretary of State.
Section
2. Loan Purposes. The board shall:
(1) Consider:
(a) A loan for the acquisition of assistive
technology equipment if the equipment is essential to compensate for the
limitations caused by the disability; or
(b) An additional loan to finance a repair or
provide maintenance; and
(2) Depending on the availability of funds
and the applicant's eligibility for a loan, include in the amount of the loan:
(a) The cost of an assistive technology
service, including an assessment or training, if the service is directly
related to the assistive technology device; or
(b) An extended service agreement or
warranty.
Section
3. Eligibility to Apply for a Low Interest Loan.
(1) Except as provided in subsection (2) of
this section, to be eligible to apply for a low interest loan, an applicant
shall:
(a) Be an individual who meets the
definition of qualified borrower established in KRS 151B.450(6) with a
disability that is not of a temporary, transient, or acute nature;
(b) Be eighteen (18) years old and have the
legal authority to enter into a contract; and
(c) Be a resident of Kentucky for at least
six (6) continuous months prior to the date of application.
(2) To be eligible to apply for a
low interest loan, a nonprofit organization shall:
(a) Provide assistive technology to an
individual with disabilities who is a resident of Kentucky; and
(b) Affirm that, and explain how, the
adaptive equipment will be used for a current or potential employee, client,
customer, or other associated individual with disabilities as required by KRS 151B.450(6).
Section
4. Initial Verification of Disability. An applicant for an initial
loan shall verify disability by furnishing one (1) or more of the following:
(1) A statement from a licensed medical
professional indicating how the disability substantially affects one (1) or
more major life activities as described in KRS 151B.450;
(2) Proof of enrollment in one of the
following:
(a) State vocational rehabilitation
program;
(b) Social Security
Disability Insurance (SSDI);
(c)
Medicare enrollment based on disability;
(d) Medicaid enrollment based on
disability;
(e) Veterans
Administration enrollment based on current disability; or
(f) Educational services enrollment under an
individualized family service plan or individualized education plan;
or
(3) Other proof of a
disability that affects a major life activity as required by KRS 151B.450(6).
Section 5.
Required KATLC Application Information. The following material shall be
required as part of the loan request:
(1)
Legal name, current address and telephone number, and Social Security number
(if a nonprofit organization, the employer identification number shall
substitute for the Social Security number);
(2) Nature of relationship to a person with a
disability (if applicant does not have a disability);
(3) Nature of disability and how it affects
one (1) or more major life activities as described in KRS 151B.450;
(4) Description of the assistive technology
being requested and how it will compensate for the limitations of a disability
and improve the quality of life of an individual with a disability;
(5) Amount of money requested including the
cost for an extended warranty, necessary training, or other item requested to
be included in the amount of the loan. An itemized price quote from the
potential seller shall be attached;
(6) Total current monthly income with
sources;
(7) Total monthly
installment payments, which shall include the amount paid in rent, mortgage,
credit card payments, or unsecured loans;
(8) A signed statement that all submitted
information is truthful and accurate;
(9) A signed waiver allowing the release of
information about the individual between the board and the qualified lender;
and
(10) If the applicant is a
nonprofit organization, proof of that status as defined in Section 1(2) of this
administrative regulation.
Section
6. Loan Application Procedure.
(1) A loan request shall:
(a) Include as attachments all information
and documentation required by Section 5 of this administrative regulation;
and
(b) Be submitted to the KATLC,
275 E Main Street Mail Drop 2-EK, Frankfort Kentucky 40621,
1-877-675-0195.
(2)
After review of the request, the board of directors shall require the applicant
to obtain an evaluation from an assistive technology professional, medical
professional, or other professional if more information is needed for the board
to make a decision.
(3) An
application shall include a quote for the total price of the equipment or
service for which the loan is being requested. The board shall require the
applicant to obtain additional price quotes if it considers the submitted quote
to be unusually high, unless the applicant can demonstrate that the equipment
is available from a single source.
(4) The applicant shall be referred to a
qualified lender that has previously entered into an agreement with the board
that specifies the terms and conditions under which the qualified lender may
make a loan. The qualified lender shall conduct a credit check of the
applicant.
(5) The qualified lender
may reject the loan application. The board may override the denial based upon
the following criteria:
(a) Medical
debt;
(b) Payment of current
obligations;
(c) Financial support
from family;
(d) Existence of
co-signer;
(e) Down payment;
and
(f) No credit history or
limited credit history.
(6) KATLC shall notify the applicant of its
decision in writing, or in appropriate alternative format as requested, within
fifteen (15) days after the decision is made.
(7)
(a) If
desired, an applicant who is aggrieved by a decision of the board shall
petition the board for reconsideration, in writing or in appropriate
alternative format, and may provide additional documentation related to credit
history, income, or assistive technology that addresses the stated reasons for
denial.
(b) The board shall:
1. Consider the new information;
2. Provide the applicant with an opportunity
to be heard; and
3. Inform the
applicant of its decision at the meeting or in writing or in appropriate
alternative format within seven (7) days if the applicant is not present at the
meeting. The decision of the board shall be final.
Section 7. General Loan
Requirements.
(1) The minimum amount of a loan
shall be $500 and the maximum amount of a loan shall be $50,000, except that
the maximum amount for home modifications shall be $15,000.
(2) The period of a loan shall be from a
minimum of one (1) year to a maximum of ten (10) years or the estimated life of
a device, whichever is less. The loan period shall be congruent with the
agreement between the board and the qualified lender pursuant to Section 10 of
this administrative regulation.
(3)
The assistive technology that can be titled shall be titled in the name of the
qualified borrower with the board or its agent as lien holder.
(4) The board or the qualified lender may
require a qualified borrower to insure the equipment for the remaining value of
the loan.
(5) The qualified
borrower shall be responsible for the repair or maintenance of the equipment.
An additional loan may be considered to finance a repair or
maintenance.
(6) An individual may
obtain more than one (1) loan if the total amount of all loans does not exceed
$50,000.
(7) The qualified lender
may require a down payment.
Section
8. Priority Consideration. An application shall be considered in
the order in which it was received according to the following order of
preference:
(1) An individual with a
disability or parent or legal guardian of a person with a disability who has no
current loans through the board;
(2) An individual with a disability or parent
or legal guardian of a person with a disability who has one (1) or more
existing loans through the board; and
(3) A nonprofit organization.
Section 9. Confidentiality. The
application and all submitted information shall be held confidential.
(1) KATLC shall use an identification number
for each application. Unless otherwise required, the name, Social Security
number, address, telephone number, and electronic mail address of the applicant
shall not be revealed.
(2) The
board shall meet in closed session if discussing an appeal of an individual
application and shall refer to an application in open session by its
identification number.
(3) The
secretary of the cabinet or a designee shall maintain access to all records
relating to an application or loan.
Section 10. Agreement with a Qualified
Lender.
(1) In contracting with one (1) or
more qualified lenders, the board shall give primary consideration to:
(a) The lender's ability to provide loans
statewide;
(b) The most favorable
interest rate available for technology loans;
(c) The most favorable interest rate to be
paid on corporation deposits; and
(d) The funds to be made available for
technology loans over and above the amount of corporation funds on
deposit.
(2) A qualified
lender shall:
(a) Execute a written agreement
with the board that establishes the requirements and conditions for issuing a
loan, the length of the loan, and procedures for collecting on delinquent or
defaulted loans; and
(b) Agree to
abide by all administrative regulations pertinent to the corporation in
relation to loans.
STATUTORY AUTHORITY: KRS 151B.465(9)