11 KAR 19:020. Service cancellation

and repayment of Coal County Pharmacy Scholarship.

 

      RELATES TO: KRS

164.740, 164.7890

      STATUTORY

AUTHORITY: KRS 164.744(2), 164.748(4), 164.753(3), 164.7890(9)

      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. (37 Ky.R. 1925; Am. 2152;

eff. 4-1-2011.)