Rebecca Gilpatrick

This administrative regulation sets forth the definitions of terms used in the administration of the Early Childhood Development Scholarship Program.

This administrative regulation is necessary to define or reference certain statutory definitions of terms commonly used in the administration of the Early Childhood Development Scholarship Program.

KRS 164.518(3) requires the authority to promulgate administrative regulations for the administration of the Early Childhood Development Scholarship Program.

This administrative regulation assists in the effective administration of the statutes by defining terms applicable to the Early Childhood Development Scholarship program.

The amendment will change this existing administrative regulation by adding “master degree in interdisciplinary early childhood education” to the definition of the “ECAC-approved early childhood development credential” in Subsection (7)(a). Additionally, the amendment will remove the specific exclusion of religious education from the definition of “scholarship program curriculum” set forth in Subsection (15). Finally, the amendment will update the description of the early childhood development earned under the curriculum from “ECDA-approved” to “ECAC-approved” in order to be consistent with the definition set forth in Subsection (7).

The amendment to this administrative regulation is necessary in order to expand the types of credentials for which Early Childhood Development Scholarship funds can be used to include Master’s degrees at the request of the Cabinet for Health and Family Services (CHFS) and the Kentucky Governor’s Office of Early Childhood. This expansion of the definition of eligible credentials will enable utilization of the newly awarded grant funds under the American Rescue Plan. Further, it is necessary to remove the religious education exclusion since this has been deemed irrelevant to this scholarship program. Finally, “ECAC” needs to be substituted as the proper approval entity for the program – the Early Childhood Advisory Council – to be consistent with the remainder of the regulation.

The authorizing statutes require the Authority to promulgate administrative regulations establishing terms and conditions for the administration of the Early Childhood Development Scholarship program. The amendment to this administrative regulation conforms to the content of those statutes by identifying eligible credentials for which an award under this program is eligible and expanding that to include the master’s degree.

The authorizing statutes require the Authority to promulgate administrative regulations establishing terms and conditions in order to administer the Early Childhood Development Scholarship program. The amendment to this administrative regulation enhances the administration thereof by expanding eligible credentials under the program and correctly identifying the Early Childhood Advisory Council as the governing body for this program.

Applicants for the Early Childhood Development Scholarship will be positively impacted by the amendment to this administration regulation in that they will now be eligible to pursue a post-baccalaureate degree with scholarship award funds, enroll in more hours each semester and receive a larger award. (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 in order to comply with this administrative regulation or amendment: No action will be required of those individuals impacted by this regulation in order to comply therewith.

No cost will be imposed on those individuals impacted by this regulation in compliance therewith.

Those individuals who meet the eligibility criteria for this program and apply therefore will be considered for scholarship awards. (5) Provide an estimate of how much it will cost to implement this administrative regulation:

None.

See paragraph (5)(a) above.

Funding for the Early Childhood Development Scholarship Program has previously been provided through a combination of money designated to the Commonwealth from the master settlement agreement signed on November 22, 1998, between the participating tobacco manufacturers and the forty (40) settling states and related federal legislation, as provided in 2000 Ky. Acts ch. 549, Part XI and civil penalties. However, in Fiscal Year 2019, the Kentucky General Assembly redirected the tobacco settlement funds to other state initiatives. Since that time, KHEAA has been able to keep the program going by spending down the funds that continued from year to year. All available funding would have been exhausted during the current year had the CHFS received a $30.0 million grant under the American Recue Plan. This grant will provide the funding for the enhanced ECDS program for a period of three (3) years, from 2022 to 2024.

No increase in fees will be necessary. Increased funding will be required and is being provided through the American Rescue Plan as described in (6) above. (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 does it directly or indirectly increase any fees.

No. Tiering was not applied to the amendment of this administrative regulation. The concept is not applicable to this amendment of this administrative regulation. The administrative regulation is intended to provide equal opportunity to participate within parameters, and consequently does not inherently result in disproportionate impacts on certain classes of regulated entities or address a particular problem to which certain regulated entities do not contribute. Disparate treatment of any person or entity affected by this administrative regulation could raise questions of arbitrary action on the part of the agency. 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 ON STATE AND 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. Although additional funds will be expended for the program, these will be provided by the Cabinet for Health and Family Services through a $30.0 million grant under the American Rescue Plan. 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. 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. c. How much will it cost to administer this program for the first year? No additional costs are associated with this regulation. d. How much will it cost to administer this program for subsequent years? No additional costs are associated with this regulation. 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: