SB127: AN ACT relating to aerospace infrastructure, making an appropriation therefor, and declaring an emergency.

Legislative Summary

Creates a new section of KRS Chapter 164 to define terms; establishes the Kentucky Aerospace, Aviation, and Defense Investment Fund Advisory Committee; establishes the membership of the committee; establishes the Kentucky aerospace, aviation, and defense investment fund to be administered by the Council for Postsecondary Education for the purpose of funding public and private partnerships to provide aviation training scholarships and aviation and aerospace equipment grants; requires that the portion of the fund expended toward the council’s administrative costs shall not exceed 0.5 percent of all gross moneys in the fund or $75,000 annually, whichever is less; directs the council to promulgate administrative regulations to carry out this Act; requires those administrative regulations to be submitted to the Legislative Research Commission for comment prior to filing; requires advisory committee members to abstain from voting on a matter involving a conflict of interest; requires that the council shall reserve at least 65 percent of all net moneys in the fund for partnership proposals between aviation and aerospace programs and aviation and aerospace industry partners to provide aviation training scholarships to Kentucky residents enrolled in aviation and aerospace programs; directs the council to prioritize accepting partnerships to proposals targeted to reduce the workforce demand of a specific eligible aviation or aerospace credential the council determines to be among the highest in demand in the Commonwealth; directs that a partnership shall require a written partnership contract and establishes the minimum contract requirements; directs that disbursements of moneys from the fund to support aviation training scholarships be made directly to an aviation program pursuant to the terms of the partnership contract; requires that an aviation program that enters a partnership contract solicit, accept, and review aviation training scholarship applications submitted by students enrolled in the aviation program; directs that an aviation training scholarship issued by an aviation program pursuant to a partnership contract be made directly to a recipient pursuant to a written scholarship contract between the recipient and the aviation program, and sets minimum contract requirements; directs that a grantor may place restrictions upon a contribution to the fund requiring specific criteria for an aviation training scholarship or scholarships funded by the grantor’s dedicated funds; directs that the aviation training scholarship contract grant the aviation program, the Commonwealth, or the aviation industry partner the authority to initiate recoupment proceedings for the recovery of the total amount of all aviation training scholarships awarded to an individual who fails to complete the terms of a scholarship contract; directs that the council reserve up to 35 percent of all net moneys in the fund for aviation equipment partnership contracts between public aviation training programs and aviation industry partners to provide aviation and aviation equipment grants; requires that an aviation equipment partnership require a written partnership contract between a public aviation program, aviation industry partner, and the council, and establishes minimum contract requirements; directs the council to collaborate with the advisory committee to select proposals for partnership contracts; directs that the council may prioritize designated contracts; provides that the council shall require the public aviation program to submit proof that the entire amount of the aviation equipment grant is invested in the maintenance, acquisition, or lease of aviation or aviation training equipment used by students enrolled in a public aviation training program; requires the council to submit a report to the Legislative Research Commission, and establishes minimum report requirements; sunsets the bill on June 30, 2030; and provides that this Act may be cited as the Aerospace Education Reinvestment Opportunity (AERO) Act; APPROPRIATION; EMERGENCY.