2025 Kentucky Revised Statutes Chapter 164 - State universities and colleges -- regional education -- archaeology 164.6023 Authority of the science and technology organization to review applications, qualify companies, and certify qualified companies.
Universal Citation:
KY Rev Stat § 164.6023 (2025)
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164.6023
Authority of the science and technology organization to review
applications, qualify companies, and certify qualified companies.
(1)
(2)
(3)
(4)
(5)
(6)
The science and technology organization shall have the authority, upon approval by
the cabinet, to review applications, qualify companies, and certify qualified
companies to receive funding from the Kentucky enterprise fund.
The science and technology organization shall develop application criteria and an
application process subject to the following limitations. The proposed project shall
be likely to:
(a) Produce a measurable result and be technically sound;
(b) Lead to innovative technology or new knowledge;
(c) Lead to commercially successful products, processes, or services within a
reasonable period of time; or
(d) Show significant potential for stimulating economic growth and a reasonable
probability to enhance employment opportunities within the Commonwealth.
The applicant shall provide to the science and technology organization an
application that shall include but not be limited to the following information:
(a) Verification that the applicant is an eligible company that meets the definition
of a Kentucky-based company and medium-size company or small company;
(b) A technology description and plan that is sufficient for outside expert review;
(c) A detailed financial analysis that includes the commitment of resources by the
applicant and others;
(d) Sufficient detail concerning proposed project partners, type and amount of
work to be performed and financing to be contributed by each partner, and
expected product or service with estimated costs to be reflected in the
negotiated contract or agreement; and
(e) A statement of the economic development potential of the project.
The science and technology organization shall conduct an independent review with
the use of outside experts to evaluate each application. Following the application
review, the science and technology organization shall make a determination of the
application and may determine that the applicant is a qualified company as defined
in KRS 164.6011.
Upon a qualified company's presentation of a legal agreement or contract meeting
the conditions under subsection (6) of this section, the science and technology
organization shall present the qualified company, the project partners, if any, and
the college or university in the Commonwealth, if any, with a certification
authorizing funding.
Prior to receiving certification authorizing funding from the science and technology
organization, the qualified company shall:
(a) Negotiate an agreement and funding contract with a college or university in
the Commonwealth, if any, and with a project partner, if any, that is
satisfactory to the science and technology organization, to undertake the
commercialization work; and
(b) Provide assurance to the science and technology organization that the college
(7)
(8)
or university and the qualified company have negotiated the ownership and
disposition of patents, royalties, all other intellectual property rights, and
equity or related position relating to the contract between the qualifying
company and the college or university;
unless the requirement to partner with a college or university is recommended to be
waived by the science and technology organization.
Prior to certifying a qualified company, the science and technology organization
may negotiate with the qualified company the ownership and disposition of patents,
royalties, all other intellectual property rights, and an equity, near equity such as a
simple agreement for future equity or "SAFE agreement", convertible debt, or
similar investment format that is approved by the executive director of the Office of
Entrepreneurship and Innovation on behalf of the Kentucky enterprise fund for the
sole purpose of reinvesting and sustaining a revolving fund to carry out the
provisions of KRS 164.6021 and 164.6023.
The science and technology organization, upon approval by the cabinet, shall set
forth guidelines as to when and how all areas of the state will be notified about the
program's availability and a program schedule, including but not limited to the
following:
(a) A review cycle including:
1.
A deadline for submission of applications at least biannually; and
2.
A deadline for reviewing applications of no more than one hundred
twenty (120) days after the application submission deadline; and
(b) A deadline, from the date an applicant is determined to be a qualified
company, by which certification shall be made. If certification is not made by
that deadline the funding voucher award is made void.
Effective: June 29, 2023
History: Amended 2023 Ky. Acts ch. 75, sec. 35, effective June 29, 2023. -- Amended
2021 Ky. Acts ch. 185, sec. 136, effective June 29, 2021. -- Amended 2008 Ky. Acts
ch. 98, sec. 4, effective July 15, 2008. -- Amended 2002 Ky. Acts ch. 230, sec. 39,
effective July 15, 2002. -- Created 2000 Ky. Acts ch. 522, sec. 7, effective July 14,
2000.
2024-2026 Budget Reference. See State/Executive Branch Budget, 2024 Ky. Acts ch.
175, Pt. I, B, 1, (3) at 1827.
Legislative Research Commission Note (11/5/2021). Under the authority of KRS 7.136,
the Reviser of Statutes has corrected a manifest clerical or typographical error in
subsection (7) of this statute.
Legislative Research Commission Note (7/15/2008).
A manifest clerical or
typographical error in 2008 Ky. Acts ch. 98, sec. 4 (this statute), amending this
statute has been corrected in codification pursuant to KRS 7.136. The waiver
referred to at the end of subsection (6) of that Acts chapter and section appears in
subsection (4) of Section 3 of that Act, not as incorrectly cited as "subsection (4) [of]
Section 4 of this Act."
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