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continuing significant lack of efficiency and effectiveness in the governance and administration of Kentucky State University. Upon the recommendation of the council, the General Assembly may extend the council's involvement with and oversight of the university beyond 2025.

Section 3. (1) There is hereby appropriated to the Council on Postsecondary Education General Fund moneys in the amount of $23,000,000 in fiscal year 2021-2022 to address financial instability at Kentucky State University, including a cash shortfall due to prior year deficits and a projected financial structural imbalance in fiscal year 2021-2022. Prior to receiving any disbursement of the funds from the council, the university shall submit a request with supporting documentation required by the council for the council's review and approval and make recommendations for further investigations necessary, if any conduct has risen to the level of a crime. The total disbursed to Kentucky State University shall be a non-interest bearing loan to be repaid by university. Funds not disbursed to the university shall be deposited to the loan repayment trust fund created in Section 4 of this Act.

  1. By November 1, 2025, the Council on Postsecondary Education shall make recommendations to the Interim Joint Committee on Appropriations and Revenue for consideration by the General Assembly during the 2026 Regular Session for the terms and schedule for repayment of the loan beginning in fiscal year 2026-2027 based on ongoing monitoring of Kentucky State University's financial status.
  2. The council shall provide an annual report to the Interim Joint Committee on Appropriations and Revenue detailing the status of the Kentucky State University loan by November 1, 2026, and by November 1 each year thereafter for as long as the loan is in effect.

Section 4. (1) The Kentucky State University loan repayment trust fund is hereby created as a trust fund in the State Treasury to be administered by the Council on Postsecondary Education for the purpose of receiving loan payments as described in

HB025020.100 - 864 - XXXX

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Engrossed