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Bill Summary · HB 358

Overview

HB 358 (2026 Regular Session, Kentucky) establishes the Coal County Paramedic Scholarship Program to support paramedic education for residents of coal-producing counties. The program provides scholarships covering in-state tuition and fees for eligible students who commit to four years of service as licensed paramedics in coal-producing counties after completing their program. The bill also creates a dedicated coal county paramedic scholarship fund financed primarily by coal severance tax receipts.

Purpose and intent

  • Ensure the availability of paramedics in Kentucky’s coal-producing counties.
  • Provide a pathway for eligible Kentucky residents to become licensed paramedics while incentivizing service in designated coal counties.

Key provisions

  • Creation of the Coal County Paramedic Scholarship Program within the Kentucky higher education framework (new section of KRS 164.740 to 164.7891).
  • Eligibility and requirements:
    • Applicant must be a Kentucky resident and a permanent resident of a coal-producing county for at least one year before the academic year of the scholarship.
    • Applicant must be a U.S. citizen as determined by the participating institution.
    • Enroll in a full-time eligible paramedic program at a participating institution accredited by the CAHEEP.
    • Agree to four years of qualified service as a licensed paramedic in a coal-producing county after program completion.
    • Agree to sign a promissory note evidencing the scholarship and service obligation.
  • Eligible program of study: Paramedic programs approved by the authority and accredited by CAHEEP.
  • Scholarship amount:
    • Up to 100% of in-state tuition and fees for the eligible program, with funding contingent on available funds.
    • Administrative regulations to determine allocation when funds are insufficient and to consider demonstrated financial need.
    • Annual scholarship amount depends on funds available and established criteria.
  • Service obligation:
    • Four years of full-time, qualified service in a coal-producing county after completing the program.
    • Upon completion of four years, the promissory notes are canceled.
    • If the recipient fails to complete the program or fulfill the service obligation, they owe the total amount of outstanding promissory notes plus interest.
  • Default and loan terms:
    • Prior scholarship defaults disqualify or delay eligibility for this program until financial obligations are satisfied, with potential waivers for cause.
    • Repayment terms include a maximum 12% annual interest rate; judgments accrue interest at 5% above the note rate.
  • Licensure and sanctions:
    • Failure to meet repayment obligations can lead to revocation of the recipient’s paramedic license under KRS Chapter 311A procedures.
  • Administration:
    • The Kentucky Higher Education Authority administers the program, including contracts, promissory notes, debt cancellation, deferments, and related procedures.
  • Funding mechanism:
    • Establishment of the Coal County Paramedic Scholarship Fund in the State Treasury (trust and agency account).
    • Fund sources include coal severance tax receipts, state appropriations, gifts/grants, and federal funds.
    • Beginning July 1, 2027, coal severance tax receipts are transferred to the fund annually, up to the lesser of 1% of total coal severance tax revenues or the amount needed to fully fund eligible scholarships.
    • Allocation schedule: 65% of annual transfers by August 1; 35% by December 1.
    • Transfers adjusted to reflect prevailing coal severance tax revenue estimates; shortfalls reduce subsequent transfers.
    • Unspent fund balances do not lapse; excess funds revert to the local government economic assistance fund (within 90 days after fiscal year end).
    • Repaid amounts to the fund are added back to the fund.
  • Other:
    • Non-lapse provision for fund balances and clear procedures for contracts, promissory notes, cancellation of obligations, and deferment of repayment.

Who is affected

  • Eligible Kentucky residents who reside in coal-producing counties and intend to pursue paramedic education at participating institutions.
  • Participating postsecondary institutions offering CAHEEP-accredited paramedic programs.
  • Coal-producing counties' communities that rely on paramedics for emergency services, by increasing workforce availability.
  • The Kentucky Higher Education Authority, which would administer the program and manage promissory notes and debt cancellation.
  • The state treasury through the Coal County Paramedic Scholarship Fund.

Procedural and timeline notes

  • Effective mechanics begin with program administration after the bill’s passage; scholarships could be awarded as funds become available.
  • Funding mechanism begins disbursement process on or before July 1, 2027, with annual transfers to the scholarship fund.
  • Annual transfer schedule and funding formula outlined (65% by August 1, 35% by December 1; adjustments for revenue estimates).
  • The four-year service obligation follows program completion; debt cancellation occurs only after four years of qualified service.
  • Violations trigger loan repayment or licensure consequences per existing statutes (KRS 164.x and KRS 311A).

Summary

HB 358 creates a targeted scholarship program to facilitate paramedic education for residents of coal counties, tying financial support to a four-year post-education service commitment in coal-producing counties. It establishes a dedicated funding stream from coal severance tax revenues and sets forth eligibility, repayment, licensure, and administrative rules to ensure program viability and accountability. The initiative aims to strengthen emergency medical services in coal-dependent regions while expanding the pool of licensed paramedics in Kentucky.

Compiled from official sources — confirm details with the bill’s official record.

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