KRS 164.0403: Healthcare training scholarships -- Partnership proposal requirements --

Partnership contract -- Scholarship contract -- Restrictions -- Recoupment --

Prohibitions.

(1) The council shall reserve at least sixty -five percent (65%) of all net m oneys in the

Kentucky healthcare workforce investment fund for partnership proposals between

healthcare programs and healthcare partners to provide healthcare training

scholarships to Kentucky residents enrolled in healthcare programs in Kentucky.

(2) In a ccepting partnerships, the council shall evaluate each partnership proposal to

determine if the proposal meets the requirements of this section and administrative

regulations promulgated by the council. The administrative regulations shall create

a process to prioritize accepting partnerships to proposals:

(a) Targeted to address the specific needs of a historically underserved county or

to improve racial and ethnic diversity within a specific designated healthcare

credential targeted by the partnership;

(b) Targeted to reduce the workforce demand of a specific eligible healthcare

credential that is determined by the council, based on objective criteria, to be

among the highest in demand in the Commonwealth; or

(c) From healthcare partners with fifty (50) or fewer employees.

(3) A partnership shall require a written partnership contract between a healthcare

program, healthcare partner, and the council. The partnership contract shall:

(a) Prohibit any disbursement of moneys from the Kentucky healthcare

workforce investment fund until the moneys appropriated by the General

Assembly to be distributed are matched, at least dollar for dollar, with moneys

deposited to the fund by the healthcare partner;

(b) Require the healthcare program to use all moneys distribute d to the healthcare

program pursuant to the partnership contract to issue direct healthcare training

scholarships to Kentucky students enrolled in the healthcare program;

(c) If applicable to a healthcare program, require that the healthcare training

scholarship application process encourage applicants to complete the Free

Application for Federal Student Aid; and

(d) Meet all other requirements set forth in this section and administrative

regulation, including but not limited to any reporting requirements t o the

council.

(4) Disbursements of moneys from the Kentucky healthcare workforce investment fund

to support healthcare training scholarships shall be made directly to a healthcare

program pursuant to the terms of the partnership contract.

(5) A healthcare program that enters a partnership contract shall solicit, acce pt, and

review healthcare training scholarship applications submitted by students enrolled

in the healthcare program. A partnership contract may require that a healthcare

program do so in collaboration with the healthcare partner. The healthcare program

shall award healthcare training scholarships pursuant to any scholarship criteria set

forth in the partnership contract, this section, and administrative regulations. The

decisions of the healthcare program in the issuance of scholarships shall be final.

(6) A healthcare training scholarship issued by a healthcare program pursuant to a

partnership contract shall be made directly to a recipient pursuant to a written

scholarship contract between the recipient and the healthcare program. The

scholarship contract shall not restrict the recipient's ability to utilize the scholarship

for the total cost of attendance. Each recipient of a scholarship shall:

(a) Agree in the written contract to practice as a licensed or certified medical

professional in the Commonwealt h for a contract period of one (1) year for

each academic year funded by the scholarship up to a maximum of two (2)

total years; and

(b) Sign a promissory note as evidence of the scholarship and the obligation to

repay the scholarship amount upon failure to complete terms of the contract.

(7) A grantor may place restrictions upon a contribution to the Kentucky healthcare

workforce investment fund requiring specific criteria for a healthcare training

scholarship or scholarships funded by the grantor's dedica ted funds to students who

agree in the scholarship contract required by subsection (6)(a) of this section to

practice as a certified or licensed healthcare professional, including but not limited

to criteria restricting:

(a) Except as provided in subsectio n (9) of this section, employment by the

healthcare partner for the contract period; or

(b) Employment at a location within a designated geographic area of the

Commonwealth for the contract period.

(8) The healthcare training scholarship contract shall gra nt the healthcare program, the

Commonwealth, or the healthcare partner the authority to initiate recoupment

proceedings for the recovery of the total amount of all healthcare training

scholarships awarded to an individual that fails to complete the terms o f a contract

entered into in accordance with subsection (6) of this section, together with

reasonable attorney fees and interest at a compound rate not to exceed eight percent

(8%) per annum from the date of disbursement from the fund.

(9) (a) A healthcare training scholarship shall not be awarded to an applicant enrolled

in a state registered nursing aide training and competency evaluation program

who is:

1. Not charged for any portion of the program pursuant to 42 C.F.R. sec.

483.152(c)(1); or

2. Eligible for reimbursement for the costs of the program pursuant to 42

C.F.R. sec. 483.152(c)(2) prior to entering the scholarship contract.

(b) A healthcare training scholarship awarded to applicants enrolled in a state

registered nursing aide training and compet ency evaluation program shall not

include an employment restriction that would restrict the recipient to be

employed by a specific healthcare partner for the contract period required by

subsection (6) of this section or that would otherwise constitute an o ffer of

employment in accordance with 42 C.F.R. sec. 483.152(c)(1).

(10) An applicant who has been listed on the nurse aide abuse registry with a

substantiated finding of abuse, neglect, or misappropriation of property shall not be

eligible for a healthcare training scholarship.