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164.7891 Osteopathic Medicine Scholarship Program.
(1)
(2)
(3)
(4)
(5)
It is the intent of the General Assembly to establish a scholarship program to
provide eligible Kentucky students the opportunity to attend an accredited
osteopathic school of medicine located in the Commonwealth and become
certified practitioners rendering medical service in the Commonwealth.
The Kentucky Higher Education Assistance Authority may award scholarships,
to the extent funds are available for that purpose, to persons who declare an
intent to become osteopaths and practice in the Commonwealth and who are
eligible under subsection (4) of this section.
The authority may award scholarships to students who meet the following
criteria:
(a) Kentucky residents who are United States citizens as determined by the
institution in accordance with criteria established by the Council on
Postsecondary Education for the purposes of admission and tuition
assessment;
(b) Students who are enrolled or accepted for enrollment in an eligible
program of study accredited by the Bureau of Professional Education of
the American Osteopathy Association or its successor, on a full-time
basis, or eligible students who have 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;
(c) Students who agree to render one (1) year of qualified service in the
Commonwealth for each year the scholarship was awarded. "Qualified
service" means a full-time practice in the Commonwealth of Kentucky as
a licensed doctor of osteopathy for a majority of the calendar year in the
fields of family practice, general practice, general internal medicine,
general pediatrics, general obstetrics, or gynecology, 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 another 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; and
(d) Students who sign a promissory note as evidence of the scholarship
awarded and the obligation to repay the scholarship amount or render
medical service as agreed in lieu of payment.
The amount of the scholarship awarded to an eligible student by the authority
shall be equal to the difference between:
(a) The average of the prevailing amount charged for in-state tuition at the
University of Kentucky School of Medicine and the University of Louisville
School of Medicine; and
(b) The prevailing amount charged for tuition at the osteopathic school of
medicine in which the student is enrolled.
The authority shall require a promissory note to be executed by the student as
evidence of the obligation. The recipient shall render one (1) year of qualified
service for each year the scholarship was awarded. Upon completion of each
year of qualified service, 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. In the event a recipient fails to complete an eligible
program of study, or fails to render qualified medical service as a primary care
physician as agreed in subsection (3) of this section, the recipient shall be
liable for the total repayment of the sum of all outstanding promissory notes
and accrued interest.
(6) A scholarship shall not be awarded or a promissory note cancellation shall not
be granted to 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 until 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 medicine,
subject to the procedures set forth in KRS Chapter 311.
(9) Notwithstanding KRS 164.753(3), the authority shall establish by administrative
regulation procedures or the terms of promissory notes for the administration of
this program, including the execution of appropriate contracts and promissory
notes, cancellation of the obligation, the rate of repayment and deferment of
repayment of outstanding debt, and the priority of awarding scholarships if
funds are insufficient to honor all requests.
(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 "Osteopathic Medicine Scholarship Program" is hereby created as a
special trust fund in the State Treasury administered by the Kentucky
Higher Education Assistance Authority for the purpose of providing funds
for scholarships to eligible students studying osteopathic medicine in
schools in the Commonwealth.
(b) Funding shall be transferred to the special trust fund from the coal
severance tax revenues levied under KRS 143.020 in an amount that
permits each Kentucky resident eligible under subsection (3) of this
section to be awarded a scholarship in the amount established under
subsection (4) of this section. No more than four percent (4%) of the coal
severance tax revenues levied under KRS 143.020 and collected annually
shall be transferred to the trust fund. To the extent this appropriation and
other funds are available, the authority shall award scholarships to all
renewal applicants and eligible students in accordance with the formula
for determining the amount of the scholarship award established in this
section.
(c) The trust fund may also receive state appropriations, gifts, and grants
from public and private sources, and federal funds. Any unallotted or
unencumbered balances in the trust fund shall be invested as provided in
KRS 42.500(9). Income earned from the investments shall be credited to
the trust fund. Any fund balance at the close of the fiscal year shall not
lapse but shall be carried forward to the next fiscal year and continuously
appropriated only for the purposes specified in this section. 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 section.
(d) All moneys repaid to the authority under this section shall be added to the
appropriations made for purposes of this section, and the funds and
unobligated appropriations shall not lapse.
(12) On or before August 1 of each year, sixty-five percent (65%) of the amount of
funding provided in subsection (11)(b) of this section shall be transferred to the
special trust fund and the remaining thirty-five percent (35%) shall be
transferred on or before December 1 of each year. The revenue transfers shall
be based upon the revenue estimates prevailing at the time each transfer is
due.
Effective:April 11, 2012
History: Amended 2012 Ky. Acts ch. 110, sec. 15, effective April 11, 2012. -Amended 2003 Ky. Acts ch. 180, sec. 4, effective June 24, 2003. -- Amended
2000 Ky. Acts ch. 196, sec. 1, effective July 14, 2000. -- Created 1998 Ky. Acts
ch. 256, sec. 1, effective July 15, 1998.
2012-2014 Budget Reference. See State/Executive Branch Budget, 2012 Ky. Acts
ch. 144, Pt. V, H, 1 at 1245.
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