Title 013 | Chapter 005 | Regulation 020
SUPERSEDED
This document is no longer current.
COUNCIL ON POSTSECONDARY EDUCATION
(New Administrative Regulation)
13 KAR 5:020.Healthcare program incentives.
Section 1.
Definitions.(1)
"Council" is defined by KRS 164.001(8).(2)
"Dedicated funds" is defined by KRS 164.0401(2).(3)
"Eligible postsecondary institution" means an institution licensed by the Council or the Commission on Proprietary Education to operate in Kentucky that offers a healthcare program.(4)
"Fund" means the healthcare workforce investment fund as established by KRS 164.0402.(5)
"Grantor" is defined by KRS 164.0401.(6)
"Healthcare partner" is defined KRS 164.0401(5).(7)
"Healthcare program" is defined in KRS 164.0401(6).(8)
"Incentives" means healthcare program incentives as established by KRS 164.0404.(9)
"Kentucky resident" is defined by KRS 164.020(8).(10)
"Match" means monies from the fund provided to the institution on a dollar-for-dollar basis, subject to funds availability, to the healthcare partner's contribution pursuant to KRS 164.0404(1).(11)
"Steering committee" means the healthcare workforce investment steering committee established by the Council for the purpose of advising on issues related to healthcare training scholarships, including determining funding allocations, defining partnership proposal criteria, and making awards. The steering committee shall be comprised of a minimum of nine (9) members who have experience in healthcare programs, healthcare workforce, state government, and a minimum of one (1) member of the Council on Postsecondary Education. On making selections to the committee, and to the extent possible, the Council shall ensure equal representation of the experiences listed, and diversity in geography, healthcare program discipline, and size of healthcare workforce provider.Section 2.
Healthcare Incentive Proposals without Dedicated Funds. To be eligible to receive funding, an incentive proposal without dedicated funds shall include:(1)
The name of the requesting healthcare programs certified by the signature of their respective chief executive officer and a designated point of contact with contact information;(2)
A narrative explaining how the healthcare program intends to use requested funds to support the performance and excellence in its production of specific eligible healthcare credentials solely through funding the areas outlined in KRS 164.0404;(3)
Certification that the healthcare program is offered by an eligible postsecondary institution or a Kentucky public high school or secondary career and technical center offering a healthcare vocational program in Kentucky;(4)
The total proposed budget for the incentive funds requested;(5)
Discussion of how the healthcare credentials aligns with Kentucky's high-demand workforce sectors identified by the Kentucky Workforce Innovation Board and the Education and Labor Cabinet. If not aligned, the healthcare program shall provide other verifiable proof of workforce demand for the healthcare credentials;(6)
An explanation of the program's past five (5) years of data on student retention and graduation rates and current efforts to retain and graduate students in applicable healthcare credentials;(7)
An explanation on how the program increased the average annual degree production in the credential over the past five (5) years;(8)
A description of what career development or job placement programs are offered by the program;(9)
An explanation as to what learning experiences in simulated or clinical settings are offered by the program;(10)
A description of what learning experiences are offered by the program to middle or high school students, if any;(11)
Any relative data and analysis addressing the factors set forth in KRS 164.0404; and(12)
An explanation of how the program shall meet any other criteria determined by the steering committee.Section 3.
Incentive Proposals with Dedicated Funds. To be eligible to receive funding, an incentive proposal with dedicated funds shall include:(1)
The criteria established in Section 2 of this administrative regulation;(2)
A statement of assurances that the healthcare program shall not violate any of the requirements set forth by KRS 164.0404; and(3)
An explanation of how the program shall meet any criteria established by the grantor healthcare partner as part of their contribution of dedicated funds.Section 4.
Evaluation Process.(1)
The steering committee shall review and rank each healthcare program proposal on the extent to which it meets the priorities set forth in Sections 2 and 3 of this administrative regulation, as applicable. The steering committee may engage with a grantor healthcare partner in evaluating incentive proposals with grantor criteria if required by the dedicated funds.(2)
Once the proposals are evaluated and ranked, the steering committee shall consider the distribution of funds to avoid a concentration in a small number of programs before determining award distributions.(3)
Once awards distributions are finalized by the steering committee, the Council shall notify the designated points of contact.Section 5.
Incentive Awards.(1)
Upon award, the Council shall enter into a contract with the healthcare program to distribute the funds. The contract shall include the requirements of KRS 164.0404 and any reporting requirements set forth by the Council.(2)
Once the contract is finalized, the Council shall disburse from the fund moneys deposited by the healthcare partner and the matching funds appropriated by the General Assembly to the healthcare program.MADISON SILVERT, Chair
STERLING CRAYTON, Attorney
APPROVED BY AGENCY: June 29, 2023
FILED WITH LRC: June 30, 2023 at 1 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on September 21, 2023 at 10:00 a.m. EST at the Council on Postsecondary Education, 100 Airport Road, Second Floor, Frankfort, Kentucky 40601 in Conference Room A. Individuals interested in being heard at this hearing shall notify this agency in writing five workdays prior to the hearing of their intent to attend. If no notification to attend the hearing is received by that date, the hearing may be cancelled. This hearing is open to the public. Any person who wishes to be heard 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 until September 30, 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: Sterling Crayton, Attorney, Council on Postsecondary Education, 100 Airport Road, Second Floor, Frankfort, Kentucky 40601, phone 502.573.1555, email sterling.crayton@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Sterling Crayton
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes the Kentucky Healthcare Program Incentives, established in KRS 164.0402, designed to reward performance and excellence among the Commonwealth's healthcare programs.
(b) The necessity of this administrative regulation:
KRS 164.0402 requires the Council on Postsecondary Education to promulgate regulations to administer the Kentucky healthcare workforce investment fund and KRS 164.0404 requires the Council to set forth the requirements to provide healthcare program incentives to reward performance and excellence among Kentucky’s healthcare programs.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
The administrative regulation conforms explicitly to the authorizing statute.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This regulation establishes the application process and requirements for issuing healthcare program incentives.
(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:
Any eligible healthcare program offered by an eligible postsecondary institution, or a Kentucky public high school, or a secondary career and technical center offering a healthcare vocational program in Kentucky may be affected. There roughly over 100 of these entities total.
(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:
A detailed explanation of the actions the entities referenced in paragraph (3) of this subsection will be required to undertake in order to comply with the proposed administrative regulation:
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
To be eligible to receive funding, healthcare programs must submit an incentive proposal. Upon proposal evaluation and subsequent award, the Council, shall enter into a contract with the healthcare program to distribute the funds. The contract shall include the requirements of KRS 164.0404 and any reporting requirements set forth by the Council.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
An estimate of the costs imposed on entities referenced in paragraph (3) of this subsection in order to comply with the proposed administrative regulation: There is no additional cost to entities. The benefits that may accrue to the entities referenced in paragraph (3) of this subsection as a result of compliance: Once the contract with the entity is finalized, the Council shall disburse from the fund moneys deposited by healthcare partners and the matching funds appropriated by the General Assembly to the healthcare program.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
See 4(b) above.
(b) On a continuing basis:
See 4(b) above.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
? The healthcare workforce investment fund established by KRS 164.0402.
(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:
This regulation does not assess fees.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This regulation does not assess fees.
(9) TIERING: Is tiering applied?
Tiering is not applicable because similarly situated entities are treated similarly under this administrative regulation. However, dedicated funds may put some parameters about what types of healthcare programs can receive incentives. In addition, upon advice of the steering committee, the Council may create separate pools of funding to reward performance in particularly high need areas.
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?
The Council on Postsecondary Education and any eligible healthcare program offered by an eligible postsecondary institution, or a Kentucky public high school, or a secondary career and technical center offering a healthcare vocational program in Kentucky.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 164.0402, 164.0404
(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.
(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 state or local government.
(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?
See 3(a).
(c) How much will it cost to administer this program for the first year?
Initially and on an ongoing annual basis, we estimate expenses totaling roughly $650,000 to include the addition of staff (and associated costs) with specific expertise to include backgrounds in healthcare, finance, and legal to stand up/maintain the program in addition to a program/project manager and program evaluation-related costs.
(d) How much will it cost to administer this program for subsequent years?
See 3(c).
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
N/A.
Expenditures (+/-):
N/A.
Other Explanation:
N/A.
(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?
This regulation will not generate any cost savings for the regulated entities, but will provide revenue for those awarded incentives.
(b) How much cost savings will this administrative regulation generate for the regulated entities for subsequent years?
See 4(a).
(c) How much will it cost the regulated entities for the first year?
Duties related to this regulation will generally be assumed by designated entity staff members as part of their many other responsibilities. There are no additional costs to regulated entities.
(d) How much will it cost the regulated entities for subsequent years?
See 4(c).
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Cost Savings (+/-):
N/A.
Expenditures (+/-):
N/A.
Other Explanation:
N/A.
(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 regulation is not anticipated to have a major economic impact on state or local government or regulated entities. This regulation will provide incentives to eligible healthcare programs for high performance and excellence which is anticipated to have a positive economic impact.
COUNCIL ON POSTSECONDARY EDUCATION
(New Administrative Regulation)
13 KAR 5:020.Healthcare program incentives.
Section 1.
Definitions.(1)
"Council" is defined by KRS 164.001(8).(2)
"Dedicated funds" is defined by KRS 164.0401(2).(3)
"Eligible postsecondary institution" means an institution licensed by the Council or the Commission on Proprietary Education to operate in Kentucky that offers a healthcare program.(4)
"Fund" means the healthcare workforce investment fund as established by KRS 164.0402.(5)
"Grantor" is defined by KRS 164.0401.(6)
"Healthcare partner" is defined KRS 164.0401(5).(7)
"Healthcare program" is defined in KRS 164.0401(6).(8)
"Incentives" means healthcare program incentives as established by KRS 164.0404.(9)
"Kentucky resident" is defined by KRS 164.020(8).(10)
"Match" means monies from the fund provided to the institution on a dollar-for-dollar basis, subject to funds availability, to the healthcare partner's contribution pursuant to KRS 164.0404(1).(11)
"Steering committee" means the healthcare workforce investment steering committee established by the Council for the purpose of advising on issues related to healthcare training scholarships, including determining funding allocations, defining partnership proposal criteria, and making awards. The steering committee shall be comprised of a minimum of nine (9) members who have experience in healthcare programs, healthcare workforce, state government, and a minimum of one (1) member of the Council on Postsecondary Education. On making selections to the committee, and to the extent possible, the Council shall ensure equal representation of the experiences listed, and diversity in geography, healthcare program discipline, and size of healthcare workforce provider.Section 2.
Healthcare Incentive Proposals without Dedicated Funds. To be eligible to receive funding, an incentive proposal without dedicated funds shall include:(1)
The name of the requesting healthcare programs certified by the signature of their respective chief executive officer and a designated point of contact with contact information;(2)
A narrative explaining how the healthcare program intends to use requested funds to support the performance and excellence in its production of specific eligible healthcare credentials solely through funding the areas outlined in KRS 164.0404;(3)
Certification that the healthcare program is offered by an eligible postsecondary institution or a Kentucky public high school or secondary career and technical center offering a healthcare vocational program in Kentucky;(4)
The total proposed budget for the incentive funds requested;(5)
Discussion of how the healthcare credentials aligns with Kentucky's high-demand workforce sectors identified by the Kentucky Workforce Innovation Board and the Education and Labor Cabinet. If not aligned, the healthcare program shall provide other verifiable proof of workforce demand for the healthcare credentials;(6)
An explanation of the program's past five (5) years of data on student retention and graduation rates and current efforts to retain and graduate students in applicable healthcare credentials;(7)
An explanation on how the program increased the average annual degree production in the credential over the past five (5) years;(8)
A description of what career development or job placement programs are offered by the program;(9)
An explanation as to what learning experiences in simulated or clinical settings are offered by the program;(10)
A description of what learning experiences are offered by the program to middle or high school students, if any;(11)
Any relative data and analysis addressing the factors set forth in KRS 164.0404; and(12)
An explanation of how the program shall meet any other criteria determined by the steering committee.Section 3.
Incentive Proposals with Dedicated Funds. To be eligible to receive funding, an incentive proposal with dedicated funds shall include:(1)
The criteria established in Section 2 of this administrative regulation;(2)
A statement of assurances that the healthcare program shall not violate any of the requirements set forth by KRS 164.0404; and(3)
An explanation of how the program shall meet any criteria established by the grantor healthcare partner as part of their contribution of dedicated funds.Section 4.
Evaluation Process.(1)
The steering committee shall review and rank each healthcare program proposal on the extent to which it meets the priorities set forth in Sections 2 and 3 of this administrative regulation, as applicable. The steering committee may engage with a grantor healthcare partner in evaluating incentive proposals with grantor criteria if required by the dedicated funds.(2)
Once the proposals are evaluated and ranked, the steering committee shall consider the distribution of funds to avoid a concentration in a small number of programs before determining award distributions.(3)
Once awards distributions are finalized by the steering committee, the Council shall notify the designated points of contact.Section 5.
Incentive Awards.(1)
Upon award, the Council shall enter into a contract with the healthcare program to distribute the funds. The contract shall include the requirements of KRS 164.0404 and any reporting requirements set forth by the Council.(2)
Once the contract is finalized, the Council shall disburse from the fund moneys deposited by the healthcare partner and the matching funds appropriated by the General Assembly to the healthcare program.MADISON SILVERT, Chair
STERLING CRAYTON, Attorney
APPROVED BY AGENCY: June 29, 2023
FILED WITH LRC: June 30, 2023 at 1 p.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on September 21, 2023 at 10:00 a.m. EST at the Council on Postsecondary Education, 100 Airport Road, Second Floor, Frankfort, Kentucky 40601 in Conference Room A. Individuals interested in being heard at this hearing shall notify this agency in writing five workdays prior to the hearing of their intent to attend. If no notification to attend the hearing is received by that date, the hearing may be cancelled. This hearing is open to the public. Any person who wishes to be heard 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 until September 30, 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: Sterling Crayton, Attorney, Council on Postsecondary Education, 100 Airport Road, Second Floor, Frankfort, Kentucky 40601, phone 502.573.1555, email sterling.crayton@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Sterling Crayton
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes the Kentucky Healthcare Program Incentives, established in KRS 164.0402, designed to reward performance and excellence among the Commonwealth's healthcare programs.
(b) The necessity of this administrative regulation:
KRS 164.0402 requires the Council on Postsecondary Education to promulgate regulations to administer the Kentucky healthcare workforce investment fund and KRS 164.0404 requires the Council to set forth the requirements to provide healthcare program incentives to reward performance and excellence among Kentucky’s healthcare programs.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
The administrative regulation conforms explicitly to the authorizing statute.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This regulation establishes the application process and requirements for issuing healthcare program incentives.
(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:
Any eligible healthcare program offered by an eligible postsecondary institution, or a Kentucky public high school, or a secondary career and technical center offering a healthcare vocational program in Kentucky may be affected. There roughly over 100 of these entities total.
(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:
A detailed explanation of the actions the entities referenced in paragraph (3) of this subsection will be required to undertake in order to comply with the proposed administrative regulation:
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
To be eligible to receive funding, healthcare programs must submit an incentive proposal. Upon proposal evaluation and subsequent award, the Council, shall enter into a contract with the healthcare program to distribute the funds. The contract shall include the requirements of KRS 164.0404 and any reporting requirements set forth by the Council.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
An estimate of the costs imposed on entities referenced in paragraph (3) of this subsection in order to comply with the proposed administrative regulation: There is no additional cost to entities. The benefits that may accrue to the entities referenced in paragraph (3) of this subsection as a result of compliance: Once the contract with the entity is finalized, the Council shall disburse from the fund moneys deposited by healthcare partners and the matching funds appropriated by the General Assembly to the healthcare program.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
See 4(b) above.
(b) On a continuing basis:
See 4(b) above.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
? The healthcare workforce investment fund established by KRS 164.0402.
(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:
This regulation does not assess fees.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This regulation does not assess fees.
(9) TIERING: Is tiering applied?
Tiering is not applicable because similarly situated entities are treated similarly under this administrative regulation. However, dedicated funds may put some parameters about what types of healthcare programs can receive incentives. In addition, upon advice of the steering committee, the Council may create separate pools of funding to reward performance in particularly high need areas.
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?
The Council on Postsecondary Education and any eligible healthcare program offered by an eligible postsecondary institution, or a Kentucky public high school, or a secondary career and technical center offering a healthcare vocational program in Kentucky.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 164.0402, 164.0404
(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.
(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 state or local government.
(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?
See 3(a).
(c) How much will it cost to administer this program for the first year?
Initially and on an ongoing annual basis, we estimate expenses totaling roughly $650,000 to include the addition of staff (and associated costs) with specific expertise to include backgrounds in healthcare, finance, and legal to stand up/maintain the program in addition to a program/project manager and program evaluation-related costs.
(d) How much will it cost to administer this program for subsequent years?
See 3(c).
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
N/A.
Expenditures (+/-):
N/A.
Other Explanation:
N/A.
(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?
This regulation will not generate any cost savings for the regulated entities, but will provide revenue for those awarded incentives.
(b) How much cost savings will this administrative regulation generate for the regulated entities for subsequent years?
See 4(a).
(c) How much will it cost the regulated entities for the first year?
Duties related to this regulation will generally be assumed by designated entity staff members as part of their many other responsibilities. There are no additional costs to regulated entities.
(d) How much will it cost the regulated entities for subsequent years?
See 4(c).
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Cost Savings (+/-):
N/A.
Expenditures (+/-):
N/A.
Other Explanation:
N/A.
(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 regulation is not anticipated to have a major economic impact on state or local government or regulated entities. This regulation will provide incentives to eligible healthcare programs for high performance and excellence which is anticipated to have a positive economic impact.