Title 011 | Chapter 005 | Regulation 037
SUPERSEDED
This document is no longer current.
KENTUCKY HIGHER EDUCATION ASSISTANCE AUTHORITY
Division of Student and Administrative Services
(New Administrative Regulation)
11 KAR 5:037.CAP Grant student eligibility.
Section 1.
In order to qualify for disbursement of a college access program grant, a student shall:(1)
Be a resident of Kentucky;(2)
Be enrolled at an educational institution as at least a part-time student as determined by the educational institution, in an eligible program of study and not have previously earned a first baccalaureate or professional degree;(3)
Demonstrate financial need in accordance with 11 KAR 5:130 and 11 KAR 5:145 for CAP grant assistance;(4)
Have remaining KHEAA grant limit;(5)
Not receive financial assistance in excess of the need to meet educational expenses;(6)
Maintain satisfactory progress in an eligible program of study according to the published standards and practices of the educational institution in which the student is enrolled;(7)
Satisfy all financial obligations to the Authority under any program administered pursuant to KRS 164.740 to 164.7891 and to any educational institution, except that ineligibility for this reason may be waived by the executive director of the Authority, at the recommendation of a designated staff review committee, for cause;(8)
Be a citizen of the United States or an eligible noncitizen;(9)
Be receiving at least part-time credit at an educational institution in an eligible program of studying and paying at least part-time tuition and fees to that institution, if the student is studying abroad or off-campus.(10)
Have been eligible to receive a CAP Grant in the preceding year, if the student is enrolled in an equivalent undergraduate program of study, established by the Authority in 11 KAR 15:090, Section 5;(11)
Be:(a)
Attending an eligible institution with the main campus or headquarters located in Kentucky; or(b)
Attending at least fifty (50) percent of courses on-ground in Kentucky if enrolled at an eligible institution with the main campus or headquarters not located in Kentucky; and(12)
Not be:(a)
In default on any loan under Title IV of the federal act, codified at 20 U.S.C. 1070 to 1099, unless eligibility has been reinstated;(b)
Liable for any amounts that exceed annual or aggregate limits on any loan under Title IV of the federal act, codified at 20 U.S.C. 1070 to 1099; and(c)
Liable for overpayment of any grant or loan under Title IV of the federal act, codified at 20 U.S.C. 1070 to 1099.CATHE DYKSTRA, Chair KHEAA Board
APPROVED BY AGENCY: October 13, 2022
FILED WITH LRC: November 7, 2022 at 1:40 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Thursday, January 26, 2023, 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 five (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 January 31, 2023. 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: Hon. 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, email dbarber@kheaa.com.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Rebecca Gilpatrick
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes student eligibility requirements for the College Access Program (CAP) grant.
(b) The necessity of this administrative regulation:
KRS 164.748(4) requires the Authority to promulgate administrative regulations pertaining to the awarding of grants, scholarships, and honorary scholarships as provided in KRS 164.740 to 164.785. KRS 164.753(4) requires the Authority to promulgate administrative regulations pertaining to grants.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This administrative regulation establishes eligibility requirements for the College Access Program (CAP) grant program.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation will ensure that grant applicants meet the eligibility criteria in order to receive CAP grant funds.
(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:
N/A
(b) The necessity of the amendment to this administrative regulation:
N/A
(c) How the amendment conforms to the content of the authorizing statutes:
N/A
(d) How the amendment will assist in the effective administration of the statutes:
N/A
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
The proposed regulation will positively impact all applicants for awards under the CAP grant program by establishing the eligibility criteria for this program. For academic year ending June 30, 2022, 224,272 individuals submitted the Free Application for Federal Student Aid (FAFSA) which serves as the application for KHEAA-administered grant programs including CAP. Of those, 89,315 applicants were eligible and received an offer of a CAP grant. A total of 53,956 individuals accepted these offers and received CAP grant awards during that same period. (4) Provide an analysis of how the entities identified in question 3 will be impacted by either the implementation of this administrative regulation, if new, or by the change if it is an amendment, including:
(4) Provide an analysis of how the entities identified in question (3) 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:
Applicants for the CAP grant program will be required to comply with the provisions of this administrative regulation, including submitting the specified application and satisfying the eligibility criteria.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
There is no cost to applicants in order to comply with this administrative regulation.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
Applicants who comply with this administrative regulation will be considered for an award under this program. (5) Provide an estimate of how much it will cost to implement this administrative regulation:
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
Based on the total CAP grant disbursement in academic year 2021-2022, of $106,605,000, the initial year of this new administrative regulation is estimated to be that same cost.
(b) On a continuing basis:
See 5(a) above.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
Awards under this program are funded entirely though net lottery revenue.
(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 administrative regulation.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
It does not establish or increase any fees.
(9) TIERING: Is tiering applied?
Tiering was not applied. It is not applicable to this regulation. 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 regulation provides equal treatment and opportunity for all applicants and recipients.
FISCAL NOTE
(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?
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 164.748(4), 164.753(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.
Since this administrative regulation is merely replacing the original CAP grant regulation, 11 KAR 5:034, it will not result in any additional expenditures beyond those already being made for the CAP grant program.
(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 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 regulation will not generate any revenue for subsequent years.
(c) How much will it cost to administer this program for the first year?
No additional costs are associated with this regulation for the first year.
(d) How much will it cost to administer this program for subsequent years?
No additional costs are associated with this 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:
(4) Estimate the effect of this administrative regulation on the expenditures and cost savings of regulated entities for the first full year the administrative regulation is to be in effect.
(a) How much cost savings will this administrative regulation generate for the regulated entities for the first year?
The regulated entities – applicants for CAP grant awards – will incur no cost savings as a result of this regulation during the first full year in which this administrative regulation is in effect since there are no costs incurred by those regulated entities.
(b) How much cost savings will this administrative regulation generate for the regulated entities for subsequent years?
Same as 4a above.
(c) How much will it cost the regulated entities for the first year?
The regulated entities – applicants for CAP grant awards – will incur no costs for the first year in which this administrative regulation is in effect.
(d) How much will it cost the regulated entities for subsequent years?
Same as 4c above.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Cost Savings (+/-):
Expenditures (+/-):
Other Explanation:
(5) Explain whether this administrative regulation will have a major economic impact, as defined below.
"Major economic impact" means an overall negative or adverse economic impact from an administrative regulation of five hundred thousand dollars ($500,000) or more on state or local government or regulated entities, in aggregate, as determined by the promulgating administrative bodies. [KRS 13A.010(13)]. This administrative regulation will not have a major economic impact on the Authority or regulated entities.
KENTUCKY HIGHER EDUCATION ASSISTANCE AUTHORITY
Division of Student and Administrative Services
(New Administrative Regulation)
11 KAR 5:037.CAP Grant student eligibility.
Section 1.
In order to qualify for disbursement of a college access program grant, a student shall:(1)
Be a resident of Kentucky;(2)
Be enrolled at an educational institution as at least a part-time student as determined by the educational institution, in an eligible program of study and not have previously earned a first baccalaureate or professional degree;(3)
Demonstrate financial need in accordance with 11 KAR 5:130 and 11 KAR 5:145 for CAP grant assistance;(4)
Have remaining KHEAA grant limit;(5)
Not receive financial assistance in excess of the need to meet educational expenses;(6)
Maintain satisfactory progress in an eligible program of study according to the published standards and practices of the educational institution in which the student is enrolled;(7)
Satisfy all financial obligations to the Authority under any program administered pursuant to KRS 164.740 to 164.7891 and to any educational institution, except that ineligibility for this reason may be waived by the executive director of the Authority, at the recommendation of a designated staff review committee, for cause;(8)
Be a citizen of the United States or an eligible noncitizen;(9)
Be receiving at least part-time credit at an educational institution in an eligible program of studying and paying at least part-time tuition and fees to that institution, if the student is studying abroad or off-campus.(10)
Have been eligible to receive a CAP Grant in the preceding year, if the student is enrolled in an equivalent undergraduate program of study, established by the Authority in 11 KAR 15:090, Section 5;(11)
Be:(a)
Attending an eligible institution with the main campus or headquarters located in Kentucky; or(b)
Attending at least fifty (50) percent of courses on-ground in Kentucky if enrolled at an eligible institution with the main campus or headquarters not located in Kentucky; and(12)
Not be:(a)
In default on any loan under Title IV of the federal act, codified at 20 U.S.C. 1070 to 1099, unless eligibility has been reinstated;(b)
Liable for any amounts that exceed annual or aggregate limits on any loan under Title IV of the federal act, codified at 20 U.S.C. 1070 to 1099; and(c)
Liable for overpayment of any grant or loan under Title IV of the federal act, codified at 20 U.S.C. 1070 to 1099.CATHE DYKSTRA, Chair KHEAA Board
APPROVED BY AGENCY: October 13, 2022
FILED WITH LRC: November 7, 2022 at 1:40 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on Thursday, January 26, 2023, 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 five (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 January 31, 2023. 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: Hon. 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, email dbarber@kheaa.com.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Rebecca Gilpatrick
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes student eligibility requirements for the College Access Program (CAP) grant.
(b) The necessity of this administrative regulation:
KRS 164.748(4) requires the Authority to promulgate administrative regulations pertaining to the awarding of grants, scholarships, and honorary scholarships as provided in KRS 164.740 to 164.785. KRS 164.753(4) requires the Authority to promulgate administrative regulations pertaining to grants.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This administrative regulation establishes eligibility requirements for the College Access Program (CAP) grant program.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation will ensure that grant applicants meet the eligibility criteria in order to receive CAP grant funds.
(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:
N/A
(b) The necessity of the amendment to this administrative regulation:
N/A
(c) How the amendment conforms to the content of the authorizing statutes:
N/A
(d) How the amendment will assist in the effective administration of the statutes:
N/A
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
The proposed regulation will positively impact all applicants for awards under the CAP grant program by establishing the eligibility criteria for this program. For academic year ending June 30, 2022, 224,272 individuals submitted the Free Application for Federal Student Aid (FAFSA) which serves as the application for KHEAA-administered grant programs including CAP. Of those, 89,315 applicants were eligible and received an offer of a CAP grant. A total of 53,956 individuals accepted these offers and received CAP grant awards during that same period. (4) Provide an analysis of how the entities identified in question 3 will be impacted by either the implementation of this administrative regulation, if new, or by the change if it is an amendment, including:
(4) Provide an analysis of how the entities identified in question (3) 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:
Applicants for the CAP grant program will be required to comply with the provisions of this administrative regulation, including submitting the specified application and satisfying the eligibility criteria.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
There is no cost to applicants in order to comply with this administrative regulation.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
Applicants who comply with this administrative regulation will be considered for an award under this program. (5) Provide an estimate of how much it will cost to implement this administrative regulation:
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
Based on the total CAP grant disbursement in academic year 2021-2022, of $106,605,000, the initial year of this new administrative regulation is estimated to be that same cost.
(b) On a continuing basis:
See 5(a) above.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
Awards under this program are funded entirely though net lottery revenue.
(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 administrative regulation.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
It does not establish or increase any fees.
(9) TIERING: Is tiering applied?
Tiering was not applied. It is not applicable to this regulation. 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 regulation provides equal treatment and opportunity for all applicants and recipients.
FISCAL NOTE
(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?
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 164.748(4), 164.753(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.
Since this administrative regulation is merely replacing the original CAP grant regulation, 11 KAR 5:034, it will not result in any additional expenditures beyond those already being made for the CAP grant program.
(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 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 regulation will not generate any revenue for subsequent years.
(c) How much will it cost to administer this program for the first year?
No additional costs are associated with this regulation for the first year.
(d) How much will it cost to administer this program for subsequent years?
No additional costs are associated with this 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:
(4) Estimate the effect of this administrative regulation on the expenditures and cost savings of regulated entities for the first full year the administrative regulation is to be in effect.
(a) How much cost savings will this administrative regulation generate for the regulated entities for the first year?
The regulated entities – applicants for CAP grant awards – will incur no cost savings as a result of this regulation during the first full year in which this administrative regulation is in effect since there are no costs incurred by those regulated entities.
(b) How much cost savings will this administrative regulation generate for the regulated entities for subsequent years?
Same as 4a above.
(c) How much will it cost the regulated entities for the first year?
The regulated entities – applicants for CAP grant awards – will incur no costs for the first year in which this administrative regulation is in effect.
(d) How much will it cost the regulated entities for subsequent years?
Same as 4c above.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Cost Savings (+/-):
Expenditures (+/-):
Other Explanation:
(5) Explain whether this administrative regulation will have a major economic impact, as defined below.
"Major economic impact" means an overall negative or adverse economic impact from an administrative regulation of five hundred thousand dollars ($500,000) or more on state or local government or regulated entities, in aggregate, as determined by the promulgating administrative bodies. [KRS 13A.010(13)]. This administrative regulation will not have a major economic impact on the Authority or regulated entities.