KRS 164.7015: Aviation training scholarship program.

(1) The council shall reserve at least sixty -five percent (65%) of all net moneys in the

fund for partnership proposals between aviation programs and aviation industry

partners to provide aviation training scholarships to Kentucky residents enrolled in

aviation programs.

(2) In accepting partnerships, the council shall collaborate with the advisory committee

to evaluate each partnership proposal to determine if the proposal meets the

requirements of this section and administrative regulations promulgated by the

council. The administrative regulations shall create a process to prioritize accepting

partnerships to proposals targeted to reduce the workforce demand of a specific

eligible aviation credential that is determined by the council, in collaboration with

the advisory committee, to be among the highest in demand in the Commonwealth

based on objective criteria.

(3) A partnership shall require a written partnership contract between an aviation

program, aviation industry partner, and the council. The partnership contract shall:

(a) Prohibit any disbursement of moneys from the fund until the moneys

appropriated by the General Assembly to be distributed are matched, at least

dollar for dollar, with moneys deposited to the fund by the aviation industry

partner;

(b) Require the aviation program to use all moneys distributed to the aviation

program pursuant to the partnership contract to issue direct aviation training

scholarships to Kentucky students enrolled in the aviation program;

(c) If applicable to an aviation p rogram, require that the aviation training

scholarship application process encourage applicants to complete the Free

Application for Federal Student Aid; and

(d) Meet all other requirements set forth in this section and administrative

regulations, includin g but not limited to any reporting requirements to the

council.

(4) Disbursements of moneys from the fund to support aviation training scholarships

shall be made directly to an aviation program pursuant to the terms of the

partnership contract.

(5) An avia tion program that enters a partnership contract shall solicit, accept, and

review aviation training scholarship applications submitted by students enrolled in

the aviation program. A partnership contract may require that an aviation program

do so in collaboration with the aviation industry partner. The aviation program shall

award aviation training scholarships pursuant to any scholarship criteria set forth in

the partnership contract, this section, and administrative regulations. The decisions

of the aviation program in the issuance of scholarships shall be final.

(6) An aviation training scholarship issued by an aviation program pursuant to a

partnership contract shall be made directly to a recipient pursuant to a written

scholarship contract between the r ecipient and the aviation program. The

scholarship contract shall not restrict the recipient's ability to utilize the scholarship

for the total cost of attendance. Each recipient of a scholarship shall:

(a) Agree in the written contract to be employed within Kentucky's aviation

industry for a contract period of one (1) year for each academic year funded

by the scholarship, up to a maximum of two (2) total years; and

(b) Sign a promissory note as evidence of t he scholarship and the obligation to

repay the scholarship amount upon failure to complete terms of the contract.

(7) A grantor may place restrictions upon a contribution to the fund requiring specific

criteria for an aviation training scholarship or schol arships funded by the grantor's

dedicated moneys, including but not limited to criteria restricting employment at the

aviation industry partner for the contract period.

(8) The aviation training scholarship contract shall 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 that fails to complete the terms of a contract entered into

in accordance with subsection (6) of this section, together with reasonable attorney

fees and interest at a compound rate not to exceed eight percent (8%) per annum

from the date of disbursement from the fund.