KENTUCKY HIGHER EDUCATION ASSISTANCE AUTHORITY

Division of Student and Administrative Services

(Amendment)

 

      11 KAR 16:060. Early Childhood Development Scholarship Program system of monetary incentives.

 

      RELATES to: KRS 164.518

      STATUTORY AUTHORITY: KRS 164.518(3), 164.748(4)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 164.518(3) requires the authority to promulgate administrative regulations for administration of the Early Childhood Development Scholarship Program. This administrative regulation establishes responsibility for administration of the system of monetary incentives offered to Early Childhood Development Scholarship recipients.

 

      Section 1. Textbook Expense Incentive[Reimbursement]. A scholarship recipient shall be entitled to a monetary allowance from his employer for the purchase of textbooks in an amount equal to the actual cost of the textbooks not to exceed fifty (50) dollars per academic term and $150 per academic year. This allowance may be provided through reimbursement to the scholarship recipient by the employer, direct payment by the employer to the textbook vendor, or other means as agreed upon by the employer and scholarship recipient.

      (1) Reimbursement.

      (a) The scholarship recipient shall present to his employer at the participating early childhood facility a receipt for the purchase of textbooks for the scholarship program curriculum. The scholarship recipient shall present the receipt to his employer no later than the end of the academic term to be eligible to receive a textbook expense reimbursement for the academic term.

      (b)[(2)] The participating early childhood facility shall, no later than fifteen (15) days after presentation of a receipt for textbook purchase, reimburse the scholarship recipient for the actual cost of the textbooks up to the maximum specified in this section[not to exceed fifty (50) dollars per academic term and $150 per academic year].

      (c)[(3)] The participating early childhood facility shall, upon request by the professional development counselor, provide evidence of reimbursement of scholarship recipients for textbooks.

      (2) Direct payment.

      (a) The participating early childhood facility shall enter into an arrangement with the textbook vendor whereby the employer authorizes the scholarship recipient to obtain the approved/necessary textbooks, and, upon receipt of a billing statement from the vendor, make a payment to the vendor of the actual cost of the textbooks up to the maximum specified in this section.

      (b) The participating early childhood facility shall, upon request by the professional development counselor, provide evidence of direct payment of the textbook incentive to the vendor on behalf of a scholarship recipient.

      (3) Other funding means. If the participating early childhood facility and the scholarship recipient mutually agree to another method for payment of the textbook expense incentive, the participating early childhood facility shall maintain documentation to evidence payment of the incentive and, upon request by the professional development counselor, provide proof to substantiate the payment.

 

      Section 2. Related Educational Expense Reimbursement. (1) Subject to the availability of funds, a scholarship recipient who meets the requirements set forth in this section shall be eligible for reimbursement of related educational expenses.

      (2) The scholarship recipient shall present to the professional development counselor no later than sixty (60) days following completion of the academic term an official grade report from the participating educational institution as evidence of completion of the scholarship program curriculum with a grade of at least "C" or its equivalent in each course in which the scholarship recipient is enrolled for credit during the academic term.

      (3) The amount of the related educational expense reimbursement shall be:

      (a) Fifty (50) dollars to a scholarship recipient pursuing a child development associate’s credential at a participating educational institution; or

      (b) $100 to a scholarship recipient pursuing an ECAC-approved early childhood development credential, pursuing other than a child development associate's, or an ECAC-approved associate or bachelor's degree credential.

      (4) The professional development counselor, no later than thirty (30) days after considering whether the scholarship recipient is eligible to receive reimbursement of related educational expenses associated with attendance at the participating educational institution, shall notify the scholarship recipient in writing of the determination of eligibility for the reimbursement of related educational expenses and the amount of the award.

      (5)(a) After determination of eligibility, the professional development counselor shall transmit to the Department for Community Based Services of the Cabinet for Health and Family Services a list of eligible recipients of reimbursement of related educational expenses. The list shall indicate:

      1. The name, home address, and Social Security number of the award recipient; and

      2. The amount of the reimbursement of related educational expenses earned by the recipient.

      (b) The Cabinet for Health and Family Service shall remit to the award recipient the earned reimbursement of related educational expenses specified in subsection (3) of this section.

 

      Section 3. Milestone Achievement Award. (1) The scholarship recipient shall present to the professional development counselor and to the participating early childhood facility no later than sixty (60) days following completion of the academic term evidence of earning the ECAC-approved early childhood development credential or degree to be eligible to receive a milestone achievement award. Milestone achievement award reimbursement shall be provided only to the extent funds are available.

      (2) Evidence of earning the ECAC-approved early childhood development credential or associate or bachelor's degree shall be:

      (a) The certificate for the Commonwealth Child Care Credential, the Child Development Associate Credential, or the Kentucky Early Childhood Development Director's Credential; or

      (b) The diploma or official transcript from the participating educational institution for an ECAC-approved early childhood associate or bachelor's degree.

      (3) The milestone achievement award amount shall be:

      (a) $100 for earning the Commonwealth Child Care Credential in an early childhood development program approved by the ECAC;

      (b) $250 for earning an initial child development associate's credential;

      (c) $300 for earning an initial associate degree in early childhood education or other program approved by the ECAC, or the Kentucky Early Childhood Development Director's Credential; or

      (d) $500 for earning an initial baccalaureate degree in interdisciplinary early childhood education or other program approved by the ECAC.

      (4) The professional development counselor, no later than thirty (30) days after considering whether the scholarship recipient is eligible to receive a milestone achievement award, shall notify the scholarship recipient in writing of the determination of eligibility for the milestone achievement award and the amount of the award.

      (5)(a) No later than fifteen (15) days following receipt of the document specified in subsection (2) of this section, the participating early childhood facility that employs the scholarship recipient at the time the scholarship recipient earns the ECAC-approved early childhood credential or degree shall remit to the scholarship recipient by check a minimum of ten (10) percent of the earned milestone achievement award specified in subsection (3) of this section.

      (b) The participating early childhood facility shall send to the professional development counselor a copy of the check as evidence that the participating early childhood facility has paid the scholarship recipient in accordance with paragraph (a) of this subsection.

      (6)(a) After determination of eligibility and evidence of payment by the participating early childhood facility of the milestone achievement award, the professional development counselor shall transmit to the Department for Community Based Services of the Cabinet for Health and Family Services a list of eligible recipients of the milestone achievement award. The list shall indicate:

      1. The name, home address, and Social Security number of the award recipient; and

      2. The amount of the milestone achievement award earned by the recipient.

      (b) The Cabinet for Health and Family Services shall remit to the award recipient ninety (90) percent of the earned milestone achievement award specified in subsection (3) of this section.

      (7) A participating early childhood facility may appeal to the Early Childhood Development Authority Advisory Council for an exception to the foregoing provisions regarding the type of credentials for which it funds the Milestone Achievement Award or the timing of the payment of the award based upon the needs and organizational goals of the facility, the professional learning objectives of the scholar, or any fiscal limitations to which the facility may be subject.

 

LISA PAYNE, Chair

      APPROVED BY AGENCY: May 21, 2015

      FILED WITH LRC: July 10, 2015 at 11 a.m.

      PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Tuesday, August 25, 2015, at 10:00 a.m. Eastern Time at 100 Airport Road, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing by 5 workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who attends will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted through August 31, 2015. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.

      CONTACT PERSON: Ms. Diana L. Barber, General Counsel, Kentucky Higher Education Assistance Authority, P.O. Box 798, Frankfort, Kentucky 40602-0798, phone (502) 696-7298, fax (502) 696-7293.

 

REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

 

Contact Person: Director of Student Aid Services

      (1) Provide a brief summary of:

      (a) What this administrative regulation does: This administrative regulation establishes the system of monetary incentives and expense reimbursement for the Early Childhood Development Scholarship program as authorized by KRS 164.518(3).

      (b) The necessity of this administrative regulation: This administrative regulation is necessary in order to set forth the system of monetary incentives and expense reimbursement for the Early Childhood Development Scholarship program.

      (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 164.518(3) requires the authority to promulgate administrative regulations pertaining to the Early Childhood Development Scholarship program.

      (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation assists in the effective administration of the statutes by establishing the system of monetary incentives and expense reimbursement for the Early Childhood Development Scholarship program.

      (2) If this is an amendment to an existing administrative regulation, provide a brief summary of:

      (a) How the amendment will change this existing administrative regulation: This amendment will change the existing administrative regulation by modifying the methods by which the textbook incentive can be funded by a participation early childhood facility.

      (b) The necessity of the amendment to this administrative regulation: This amendment to the administrative regulation is necessary in order to remove the barriers to participation that some early childhood facilities encounter as a result of fiscal and budgetary constraints to which they may be subject.

      (c) How the amendment conforms to the content of the authorizing statutes: The authorizing statutes require KHEAA to promulgate administrative regulations pertaining to the system of monetary incentives under the Early Childhood Development Scholarship program. This amendment conforms to the authorizing statues by expanding the permissible funding methods for one of the monetary incentives.

      (d) How the amendment will assist in the effective administration of the statutes: This amendment to the administrative regulation will assist in the effective administration of the statutes by enabling students employed by additional facilities, particularly public entities, to participate in the ECDS program by eliminating a barrier to participation that encounter as a result of fiscal and budgetary constraints to which they may be subject.

      (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: Students who are employed by early childhood facilities that are not currently able to participate in the program due to the strict funding requirements set forth in the existing administrative regulation will be able to participate if they satisfy the other requirements.

      (4) Provide an analysis of how the entities identified in (3) above will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:

      (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: The entities identified in (3) above will not be required to take any      additional actions in order to receive benefits under this amendment to the administrative regulation.

      (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): No costs are associated with compliance with the amendment to this administrative regulation.

      (c) As a result of compliance, what benefits will accrue to the entities    identified in question (3): The entities identified in (3) will be eligible for an award under this program without any additional compliance requirements.

      (5) Provide an estimate of how much it will cost to implement this administrative regulation:

      (a) Initially: No cost.

      (b) On a continuing basis: No cost.

      (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: Funding for the Early Childhood Development Scholarship Program is provided by appropriations from the Tobacco Settlement Fund. The authority does retain some of the funds for the costs associated in administering the Early Childhood Development Scholarship Program.

      (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change, if it is an amendment: No increase in fees or funding will be necessary to implement this amendment. Although expanded eligibility could result in an increase in the demand for the limited funds available for this program. However, it will result in neither an increase in the individual award amount nor an increase in the overall amount of funding available for scholarships under the program.

      (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees: This administrative regulation does not establish any fees nor increase any existing fees.

      (9) TIERING: Is tiering applied?   Tiering was not applied. It is not applicable to this amendment. This administrative regulation is intended to provide equal opportunity to participate, and consequently does not inherently result in disproportionate impacts on certain classes of regulated entities. The "equal protection" and "due process" clauses of the Fourteenth Amendment of the U.S. Constitution may be implicated as well as Sections 2 and 3 of the Kentucky Constitution. The administrative regulation provides equal treatment and opportunity for all applicants and recipients.

 

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 

      1. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this        administrative regulation? This administrative regulation will impact the Finance and Administration Cabinet, Kentucky Higher Education Assistance Authority.

      2. Identify each state or federal statute or federal regulation that requires or      authorizes the action taken by the administrative regulation. KRS 164.518(3), 164.748(4).

      3. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is      to be in effect. The administrative regulation will result in no additional       expenditures by or revenues to the Authority during the first full year of its effectiveness.

      a. How much revenue will this administrative regulation generate for the state or    local government (including cities, counties, fire departments, or school    districts) for the first year? This administrative regulation will not generate any revenue for the first year.

      b. How much revenue will this administrative regulation generate for the state or    local government (including cities, counties, fire departments, or school    districts) for subsequent years? This administrative regulation will not generate any revenue for subsequent years.

      c. How much will it cost to administer this program for the first year? No costs are associated with this administrative regulation for the first year.

      d. How much will it cost to administer this program for subsequent years? No costs are associated with this administrative regulation for subsequent years.

      Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.

      Revenues (+/-):

      Expenditures (+/-):

      Other Explanation: