{"data":{"id":"us-ky/krs-164.6023","jurisdiction":"us-ky","citation":"KRS 164.6023","heading":"Authority of the science and technology organization to review","body":"applications, qualify companies, and certify qualified companies.\n(1) The science and technology organization shall have the authority, upon approval by\nthe cabinet, to revie w applications, qualify companies, and certify qualified\ncompanies to receive funding from the Kentucky enterprise fund.\n(2) The science and technology organization shall develop application criteria and an\napplication process subject to the following limi tations. The proposed project shall\nbe likely to:\n(a) Produce a measurable result and be technically sound;\n(b) Lead to innovative technology or new knowledge;\n(c) Lead to commercially successful products, processes, or services within a\nreasonable period of time; or\n(d) Show significant potential for stimulating economic growth and a reasonable\nprobability to enhance employment opportunities within the Commonwealth.\n(3) The applicant shall provide to the science and technology organization an\napplication that shall include but not be limited to the following information:\n(a) Verification that the applicant is an eligible company that:\n1. Meets the definition of a Kentucky-based company, or has demonstrated\npotential to become a Kentucky -based company within  one hundred\neighty (180) days after certification authorizing funding under\nsubsection (5) of this section, or within a timeframe determined by the\nexecutive director of the Office of Entrepreneurship and Innovation; and\n2. Is an early-stage or high-growth company;\n(b) A technology description and plan that is sufficient for outside expert review;\n(c) A detailed financial analysis that includes the commitment of resources by the\napplicant and others;\n(d) Sufficient detail con cerning proposed project partners, type and amount of\nwork to be performed and financing to be contributed by each partner, and\nexpected product or service with estimated costs to be reflected in the\nnegotiated contract or agreement; and\n(e) A statement of the economic development potential of the project.\n(4) The science and technology organization shall conduct an independent review with\nthe use of outside experts to evaluate each application. Following the application\nreview, the science and technology o rganization shall make a determination of the\napplication and may determine that the applicant is a qualified company as defined\nin KRS 164.6011.\n(5) Upon a qualified company's presentation of a legal agreement or contract meeting\nthe conditions under subs ection (6) of this section, the science and technology\norganization shall present the qualified company, the project partners, if any, and\nthe college or university in the Commonwealth, if any, with a certification\nauthorizing funding.\n(6) Prior to receiving certification authorizing funding from the science and technology\norganization, the qualified company shall:\n(a) Negotiate an agreement and funding contract with a college or university in\nthe Commonwealth, if any, and with a project partner, if any, th at is\nsatisfactory to the science and technology organization, to undertake the\ncommercialization work; and\n(b) Provide assurance to the science and technology organization that the college\nor university and the qualified company have negotiated the owners hip and\ndisposition of patents, royalties, all other intellectual property rights, and\nequity or related position relating to the contract between the qualifying\ncompany and the college or university;\nunless the requirement to partner with a college or un iversity is recommended to be\nwaived by the science and technology organization.\n(7) Prior to certifying a qualified company, the science and technology organization\nmay negotiate with the qualified company the ownership and disposition of patents,\nroyalties, all other intellectual property rights, and an equity, near equity such as a\nsimple agreement for future equity or \"SAFE agreement,\" convertible debt, or\nsimilar investment format that is approved by the executive director of the Office of\nEntrepreneurship and Innovation on behalf of the Kentucky enterprise fund for the\nsole purpose of reinvesting and sustaining a revolving fund to carry out the\nprovisions of KRS 164.6021 and 164.6023.\n(8) The science and technology organization, upon approval by the ca binet, shall set\nforth guidelines as to when and how all areas of the state will be notified about the\nprogram's availability and a program schedule, including but not limited to the\nfollowing:\n(a) A review cycle including:\n1. A deadline for submission of applications at least biannually; and\n2. A deadline for reviewing applications of no more than one hundred\ntwenty (120) days after the application submission deadline; and\n(b) A deadline, from the date an applicant is determined to be a qualified\ncompany, by which certification shall be made. If certification is not made by\nthat deadline the funding voucher award is made void.","path":["KRS Chapter 164"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57634","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:16Z","sha256":"1066871736ad7452299a0673ed1bf88cafbbb6b3c5f4b1ff633973772069db87","source_id":"us-ky","stale":false,"prev":"us-ky/krs-164.6021","next":"us-ky/krs-164.6025"},"notice":"GroundRules: Original legal text. Not legal advice."}