KRS 164.7013: Declaration of intent -- Kentucky Aerospace, Aviation, and Defense

Investment Fund Advisory Committee -- Membership -- Kentucky aerospace,

aviation, and defense investment fund -- Purposes -- Administrative

regulations.

(1) It is the intent of t he General Assembly to incentivize collaboration between

aviation programs, aviation industry partners, and the Commonwealth to grow and

strengthen the education and training pipeline of aviation professionals within

Kentucky by:

(a) Improving the ability of a broad variety of Kentucky's aviation programs to

meet the workforce demands and capacity of the Commonwealth;

(b) Raising awareness of and interest in a broad variety of aviation occupations;

(c) Reducing the barriers of access to the aviation program s necessary to pursue

these occupations, including financial barriers;

(d) Improving pathways between high school career and technical programs and

aviation programs; and

(e) Developing strategies for aviation industry partners to support career growth

and development for their employees.

(2) (a) The Kentucky Aerospace, Aviation, and Defense Investment Fund Advisory

Committee is hereby created to be administered by the council. The advisory

committee shall be responsible for advising the council on the implementation

of KRS 164.7011 to 164.7021.

(b) The advisory committee shall be composed of the following twelve (12)

members:

1. The president of the council, who shall serve as chair of the advisory

committee;

2. The commissioner of the Department of Aviation in the Transportation

Cabinet;

3. Ten (10) members appointed by the chair of the council, of whom:

a. One (1) member shall b e selected from a list of three (3)

candidates nominated by the Kentucky Association of

Manufacturers who possess professional experience and expertise

with aviation manufacturing;

b. One (1) member shall have professional experience and expertise

as an aviation engineer;

c. One (1) member shall have professional experience and expertise

with Department of Defense contracts related to aviation;

d. One (1) member shall have professional experience and expertise

with Department of Defense contracts related to aerospace;

e. One (1) member shall have professional experience and expertise

with airport management or Federal Aviation Administration

airport compliance and classifications;

f. One (1) member shall be a member from the Kentucky Aviation

Association;

g. One (1) member shall be a licensed air transport pilot;

h. One (1) member that is a licensed airframe and powerplant

mechanic; and

i. Two (2) members shall be employees of a public aviation

program.

(c) Members appointed under paragraph (b)3. of this subs ection shall serve for

terms of two (2) years, and any vacancy on the advisory committee shall be

filled for the remainder of the unexpired term in the same manner as the

original appointment. An appointed member shall continue to serve until

reappointed or replaced.

(d) The majority of the voting members shall constitute a quorum, and all

meetings shall be conducted in accordance with the Open Meetings Act, KRS

61.805 to 61.850.

(e) A member of the advisory committee shall not receive compensation or

benefits for the member's service, but a member appointed under paragraph

(b)3. of this subsection shall receive per diem and travel expenses consistent

with the reimbursement policy for state employees.

(3) There is hereby created a trust and agency account ca lled the Kentucky aerospace,

aviation, and defense investment fund to be administered by the Council for

Postsecondary Education for the purpose of funding:

(a) Public and private partnerships to provide aviation training scholarships in

accordance with KR S 164.7015 to reduce the financial barriers of Kentucky

residents seeking eligible aviation credentials;

(b) Public and private partnerships to provide aviation and aerospace equipment

grants in accordance with KRS 164.7017 to enhance Kentucky's aviation

programs' ability to meet the workforce demands and capacity of the

Commonwealth; and

(c) The council's administrative, research, consulting, fundraising, planning, and

analysis costs of administering KRS 164.7011 to 164.7021.

(4) (a) It is the intent of the General Assembly to encourage private financial and

philanthropic support of the Kentucky aerospace, aviation, and defense

investment fund, as the aerospace, aviation, and defense industries directly

benefit from a well -trained workforce capable of mee ting their employment

needs and the needs of the Commonwealth. To the extent allowed by

applicable laws, the fund may directly accept gifts, grants, or donations

subject to restrictions imposed by a grantor.

(b) 1. The Kentucky aerospace, aviation, and def ense investment fund shall

consist of two (2) accounts.

2. There shall be an appropriation account containing all moneys

appropriated by the General Assembly and any federal funds received

for this purpose.

3. There shall be a grantor account containing al l moneys received in the

form of gifts, grants, or donations subject to restrictions imposed by a

grantor, or any other moneys made available for the purposes of the

fund.

(c) Notwithstanding KRS 45.229, any moneys appropriated to the fund by the

General Assembly that remain in the fund at the end of any fiscal year prior to

the 2029-2030 fiscal year shall not lapse.

(d) Any moneys remaining in the appropriation account at the end of fiscal year

2029-2030 shall be forfeited and shall lapse to the general fund.

(e) Any moneys remaining in the grantor fund at the end of the 2029 -2030 fiscal

year shall be returned to each gra ntor proportionally based on the amount

donated by the grantor in relation to the total amount donated by all grantors.

(5) Subject to available funds, the fund shall consist of any:

(a) Appropriations designated for the fund;

(b) Funds, grants, and receip ts from the council's fundraising activities on behalf

of the fund;

(c) Federal funds; and

(d) Other moneys made available for the purposes of the fund.

(6) Any interest earnings of the fund shall become a part of the fund and shall lapse

only as provided in subsection (4) of this section. Moneys in the fund are hereby

appropriated for the purposes set forth in this section.

(7) The portion of the fund expended towards the council's costs of administering KRS

164.7011 to 164.7021 shall not exceed one -half of one percent (0.5%) of all gross

moneys in the fund or seventy -five thousand dollars ($75,000) annually, whichever

is less.

(8) (a) The council shall promulgate administrative regulations by August 1, 2024, in

accordance with this subsection and KRS Chap ter 13A to administer KRS

164.7011, 164.7013, 164.7015, and 164.7017.

(b) At least thirty (30) days before filing an administrative regulation with the

regulations compiler, the council shall first submit the draft administrative

regulation, a detailed imp lementation plan, and other documents required to

be filed by KRS Chapter 13A to the members of the Interim Joint Committee

on Education and the Interim Joint Committee on Transportation for review

and comment.

(c) The council shall consider any comments and recommendations provided by

the members of the Interim Joint Committee on Education and the Interim

Joint Committee on Transportation before filing the administrative regulation.

(9) A member of the advisory committee shall recuse himself or herself fr om any vote

related to any aviation program or industry partner:

(a) Owned by the member or an immediate family of a member;

(b) That employs the member or immediate family member of the member; or

(c) That would otherwise result in a direct benefit, finan cial or otherwise, to that

member or an immediate family member of that member.