KRS 154.20-420: Science and technology organization -- Duties -- Funding application

process -- Negotiation of agreements.

(1) The science and technology organization shall have the authority to review

applications, qualify companies, and certify qualified companies.

(2) The science and technology organization shall develop application criteria and an

application process.

(3) The science and technology organization shall focus on providing support to

research and development projects that are 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 in novation-driven economic growth

and a reasonable probability to enhance employment opportunities within the

Commonwealth.

(4) An eligible company may submit to the science and technology organization an

application for funding. The application shall includ e but not be limited to the

following information:

(a) Verification that the applicant is an eligible company that is Kentucky-based;

(b) A technical research and commercialization 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 by each partner, and expected product or service with

estimated costs to be reflected in the negotiated contract or agreement;

(e) A statement of the economic development potential of the project; and

(f) Any other information the science and technology organization may require.

(5) The science and technology organization shall conduct an independent review using

internal and external resources to evaluate each application. Following the

application review, the science and technology organization shall make a written

determination of whether the applicant is a qualified company as defined in KRS

154.20-400.

(6) Before a qualified company is approved for funding, the qualified company shall

negotiate an agreement and funding contract that is satisfactory to the science and

technology or ganization with any project partners to undertake the research and

development work.

(7) 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 negotiate the terms for funding with the qualified company and

shall enter into a contract with the qualified company if an agreement is reached.

(8) Any agreement shall include a provision that a qualified company shall, at a

minimum, match t he funding provided through the science and technology

organization on a one -to-one dollar ratio for each year of the project. The science

and technology organization shall have sole discretion to authorize an in -kind

contribution in lieu of part of the ma tch required for the qualified company, if the

science and technology organization determines that the financial limitations of the

qualified company warrant this authorization.

(9) The science and technology organization may negotiate with the qualified c ompany

the ownership and disposition of patents, royalties, all other intellectual property

rights, and an equity or related position on behalf of the Kentucky alternative fuel

and renewable energy fund for the sole purpose of reinvesting and sustaining a

revolving fund to carry out KRS 154.20-400 to 154.20-420.

(10) The science and technology organization, upon approval by the cabinet, shall issue

guidelines for statewide notification of the program's availability and a program

schedule, including but not limited to an application review cycle including:

(a) A deadline for submission of applications, which shall be at least biennially;

and

(b) A deadline for completing the review of applications, which shall not exceed

five (5) months after the application submission deadline.