KRS 164.7890: Coal county scholarship program for pharmacy students.

(1) To ensure the public health purpose of access to pharmaceutical services in the

coal-producing counties of the Commonwealth, which have been traditionally

underserved for pharmaceutical services due to a shortage of pharmacists in the

Commonwealth, the General Assembly hereby establishes a coal county scholarship

program to provide eligible Kentucky students the opportunity to attend an

accredited school of pharmacy or a provisionally accredited school of pharmacy in

the Commonwealth, and to become certifie d pharmacists in the Commonwealth,

provided that the scholarship recipient agrees to practice pharmacy in a coal -

producing county for each year a scholarship is provided.

(2) "Coal-producing county" as used in this section has the same meaning as in KRS

42.4592(1)(c).

(3) The authority may award scholarships, to the extent funds are available for that

purpose, to any person who:

(a) Is a Kentucky resident;

(b) Is considered a permanent resident of a coal -producing county for at least one

(1) year immediatel y preceding July 1 of the academic year in which the

scholarship is made for students who first receive a scholarship under this

section on or after July 1, 2014;

(c) Is a United States citizen as determined by the institution in accordance with

criteria e stablished by the Council on Postsecondary Education for the

purposes of admission and tuition assessment;

(d) Is enrolled or accepted for enrollment in a Pharm.D. program at an accredited

institution or a provisionally accredited institution in the Common wealth on a

full-time basis, or is a student who has a disability defined by Title II of the

Americans with Disabilities Act, 42 U.S.C. secs. 12131 et seq., certified by a

licensed physician to be unable to attend the eligible program of study full -

time because of the disability;

(e) Agrees to render one (1) year of qualified service in a coal -producing county

of the Commonwealth for each year the scholarship was awarded. "Qualified

service" means a full -time practice in a coal -producing county of the

Commonwealth of Kentucky as a licensed pharmacist for a majority of the

calendar year, except that an individual having a disability defined by Title II

of the Americans with Disabilities Act, 42 U.S.C. secs. 12131 et seq., whose

disability, certified by anothe r licensed physician, prevents him or her from

practicing full -time, shall be deemed to perform qualified service by

practicing the maximum time permitted by the attending physician, in the

coal-producing county; and

(f) Agrees to sign a promissory note as evidence of the scholarship awarded and

the obligation to repay the scholarship amount or render pharmacy service as

agreed in lieu of payment.

(4) (a) Notwithstanding KRS 164.753(3), the amount of the scholarship shall not

exceed forty percent (40%) of t he approximate average of first professional

year in -state tuition for all pharmacy schools in the United States. The

authority shall establish, by administrative regulation a procedure for

awarding scholarships which shall give preference to students resi ding in

coal-producing counties and which shall establish procedures to award

scholarships should funding be insufficient to award scholarships to all

eligible students. The authority may also, by administrative regulation,

establish scholarship amounts based on demonstration of initial financial need

by eligible students.

(b) The actual amount of the scholarship awarded to each eligible student by the

authority for each semester shall be based on the amount of funds available

and the criteria established under paragraph (a) of this subsection.

(5) (a) The authority shall requir e each student receiving a scholarship to execute a

promissory note as evidence of the obligation.

(b) The recipient shall render one (1) year of qualified service in a coal-producing

county for each year the scholarship was awarded. Upon completion of eac h

year of qualified service in a coal-producing county, the authority shall cancel

the appropriate number of promissory notes. Promissory notes shall be

canceled by qualified service in the order in which the promissory notes were

executed. Service credit shall not include residency service.

(c) If a recipient fails to complete an eligible program of study, or fails to render

service as a pharmacist as agreed in this subsection, the recipient shall be

liable for the total repayment of the sum of all outstan ding promissory notes

and accrued interest.

(6) Any person who is in default on any obligation to the authority under any program

administered by the authority under KRS 164.740 to 164.785 shall not be awarded a

scholarship or have a promissory note cancel ed until all financial obligations to the

authority are satisfied, except that ineligibility for this reason may be waived by the

authority for cause.

(7) A repayment obligation imposed by this section shall not be voidable by reason of

the age of the recipient at the time of executing the promissory note.

(8) Failure to meet repayment obligations imposed by this section shall be cause for the

revocation of the scholarship recipient's license to practice pharmacy, subject to the

procedures set forth in KRS Chapter 311.

(9) Notwithstanding KRS 164.753(3), the authority shall establish by administrative

regulation procedures for the administration of this program, including but not

limited to the execution of appropriate contracts and promissory notes, cancell ation

of obligations, the rate of repayment, and deferment of repayment of outstanding

debt.

(10) Notwithstanding any other statute to the contrary, the maximum interest rate

applicable to repayment of a promissory note under this section shall be twelve

percent (12%) per annum, except that if a judgment is rendered to recover payment,

the judgment shall bear interest at the rate of five percent (5%) greater than the rate

actually charged on the promissory note.

(11) (a) The coal county pharmacy scholarship fund is hereby created as a revolving

fund in the State Treasury to be administered by the Kentucky Higher

Education Assistance Authority for the purpose of providing scholarships to

qualifying students studying pharmacy in schools in the Commonwealth.

(b) The fund shall consist of amounts transferred from coal severance tax receipts

as provided in paragraph (c) of this subsection and any other proceeds from

grants, contributions, appropriations, or other moneys made available for the

fund.

(c) 1. Receipts from the coal severance tax levied under KRS 143.020 shall be

transferred to the fund on an annual basis in an amount not to exceed the

lesser of:

a. Four percent (4%) of the total annual coal severance tax revenues

collected under KRS 143.020; or

b. The amount necessary to provide full funding for all students who

qualify for a scholarship under this section, considering all other

resources available.

2. Transfers required by subparagraph 1. of this paragraph shall be made as

follows:

a. On or before Augu st 1 of each year, sixty -five percent (65%) of

the amount of funding provided for in this paragraph shall be

transferred to the fund; and

b. The remaining thirty-five percent (35%) shall be transferred on or

before December 1 of each year.

3. The amount tr ansferred shall be based upon the prevailing revenue

estimate for coal severance tax receipts at the time each transfer is made.

(d) Any unallotted or unencumbered balances in the trust fund shall be invested

as provided in KRS 42.500(9).

(e) Income earned from the investments shall be credited to the trust fund.

(f) Notwithstanding KRS 45.229, any fund balance at the close of the fiscal year

shall not lapse but shall be transferred to the Osteopathic Medicine

Scholarship Program described in KRS 164.7891 w ithin ninety (90) days of

the end of the fiscal year.

(g) All amounts included in the fund shall be continuously appropriated only for

the purposes specified in this section.

(h) A general statement that all continuing appropriations are repealed,

discontinued, or suspended shall not operate to repeal, discontinue, or suspend

this fund or to repeal this action.

(i) All moneys repaid to the authority under this section shall be added to the

fund.