Applied and Basic Research Development

KRS tit. XII, ch. 154, subch. 35

in effect

KRS 154.35-010 Definitions for subchapter

154.35-010. Definitions for subchapter As used in this subchapter, unless the context indicates otherwise: (1) "Beneficiary of an economic incentive package" means any entity for which any assessment, incentive, inducement, or tax credit is issued or awarded pursuant to KRS 154.22-010 to 154.22-070, KRS 154.24-010 to 154.24-150, KRS 154.26-015 to 154.26-100, and KRS 154.28-010 to 154.28-090; (2) "Board" means the governance board of the Kentucky Science and Technology Council, Inc.; (3) "Cabinet" means the Cabinet for Economic Development; (4) "Center" means either or both of the following as the context requires: (a) "Basic research centers" which means centers under contract with the University of Kentucky and the University of Louisville; and (b) "Applied research centers" which means centers for applied research and technologies development; (5) "Commonwealth" means the Commonwealth of Kentucky; (6) "Contracting university" means any of the following that contract with the council to operate a center: the University of Kentucky, the University of Louisville, Eastern Kentucky University, Western Kentucky University, Morehead State University, Northern Kentucky University, Murray State University, and Kentucky State University; (7) "Council" means the Kentucky Science and Technology Council, Inc.; (8) "Fund" means the Kentucky Research and Development Infrastructure fund created and established pursuant to KRS 154.35-040; (9) "Infrastructure" means the Kentucky Research and Development Infrastructure; (10) "Personal protective equipment" has the same meaning as in KRS 154.32-010; (11) "Secretary" means the secretary of the Cabinet for Economic Development; and (12) "Vital medications" has the same meaning as in KRS 154.32-010. Effective: June 29, 2021 History: Amended 2021 Ky. Acts ch. 185, sec. 127, effective June 29, 2021. -- Created 1994 Ky. Acts ch. 508, sec. 48, effective July 15, 1994. Legislative Research Commission Note (6/29/2021). Under the authority of KRS 7.136(1), the Reviser of Statutes has renumbered certain subsections in this statute during codification to place the terms in alphabetical order. The words in the text were not changed.

KRS 154.35-020 Kentucky Research and Development Infrastructure -- Location of research centers -- Integration of basic research centers and applied research centers

154.35-020. Kentucky Research and Development Infrastructure -- Location of research centers -- Integration of basic research centers and applied research centers (1) The Kentucky Science and Technology Council, Inc., is authorized to establish the Kentucky Research and Development Infrastructure in accordance with guidelines developed and adopted by the Cabinet for Economic Development and the council. The infrastructure, subject to qualification by the contracting universities in accordance with agreements between the council and the universities, shall consist of up to two (2) basic research centers and up to six (6) applied research centers located as follows: (a) A basic research center under contract with the University of Kentucky; (b) A basic research center under contract with the University of Louisville; (c) An applied research center to serve the central Kentucky area under contract with the University of Kentucky and Eastern Kentucky University; (d) An applied research center to serve the west central Kentucky area under contract with the University of Louisville and Kentucky State University; (e) An applied research center to serve the eastern Kentucky area under contract with Morehead State University; (f) An applied research center to serve the western Kentucky area under contract with Western Kentucky University; (g) An applied research center to serve the far western Kentucky area under contract with Murray State University; and (h) An applied research center to serve the northern Kentucky area under contract with Northern Kentucky University. (2) The basic research centers under contract with the University of Kentucky and the University of Louisville may be integrated with the applied research centers under contract with those institutions. Effective: July 15, 1994 History: Created 1994 Ky. Acts ch. 508, sec. 47, effective July 15, 1994.

KRS 154.35-030 Powers and authority of council

154.35-030. Powers and authority of council The council shall have all the powers and authority, not explicitly prohibited by statute, necessary and convenient to carry out and effectuate the purposes of KRS 154.35-010 to 154.35-055, including, but not limited to: (1) Entering into contracts or agreements necessary or incidental to the performance of its duties, functions, and responsibilities; (2) Soliciting, borrowing, accepting, receiving, and expending funds from any public or private source, including, but not limited to, general fund appropriations of the Commonwealth of Kentucky, grants or contributions of money, property, labor, or other things of value to be used to carry out the infrastructure's operations, functions, and responsibilities; and (3) Negotiating royalty payments on patents and licenses for innovations or inventions arising in the course of research conducted by the infrastructure's centers. Effective: July 15, 1994 History: Created 1994 Ky. Acts ch. 508, sec. 49, effective July 15, 1994.

KRS 154.35-040 Kentucky Research and Development Infrastructure fund

154.35-040. Kentucky Research and Development Infrastructure fund There is established a fund entitled the "Kentucky Research and Development Infrastructure Fund" for the purposes and benefit of the Kentucky Research and Development Infrastructure. The fund may receive state appropriations, gifts, grants, and any other funds both public and private. Moneys deposited in the fund shall be disbursed by the State Treasurer upon the warrant of the secretary of Finance and Administration Cabinet. Any unallotted or unencumbered balances in the fund shall be invested as provided in KRS 42.500(6), and any income earned from the investments along with the unallotted or unencumbered balances in the fund shall not lapse, and shall be deemed a trust and agency account and made available solely for the purposes and benefits of the Kentucky Research and Development Infrastructure. Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 194, sec. 65, effective July 15, 1996. -- Created 1994 Ky. Acts ch. 508, sec. 50, effective July 15, 1994.

KRS 154.35-044 Allocation of fund moneys by council -- Limitations

154.35-044. Allocation of fund moneys by council -- Limitations The council shall allocate moneys from the fund for the operation of the infrastructure and the centers subject to the following limitations: (1) The council may retain not more than eight percent (8%) of the deposits into the fund in any budget year for the central administration of the infrastructure; (2) After payment of expenses for central administration, not more than twenty-five percent (25%) of the remainder of the fund in any budget year shall be allocated to basic research centers and the balance shall be allocated to applied research centers; (3) Not more than twenty percent (20%) of the total moneys allocated to applied research centers in any budget year shall be allocated to any one (1) applied research center; and (4) All moneys allocated to the contracting universities for the operation of the centers shall be paid out in accordance with contracts entered into between the council and the universities; (5) Notwithstanding the provisions of subsections (1) to (3) of this section: (a) The council may defer the establishment of all centers for up to four (4) years after July 15, 1994 to allow the fund to grow to sufficient size to support operation of the centers; and (b) The allocation percentage set forth in subsection (3) of this section may be modified by the council with approval of the cabinet for a period of up to four (4) years after the first center is established. Effective: July 15, 1994 History: Created 1994 Ky. Acts ch. 508, sec. 52, effective July 15, 1994.

KRS 154.35-046 Establishment of accounts for individual research centers -- Report to Legislative Research Commission -- Audits

154.35-046. Establishment of accounts for individual research centers -- Report to Legislative Research Commission -- Audits (1) The council is authorized to establish accounts for each research center approved by the council. Each account shall be kept separately from any other accounts established by the council and shall be kept separately from any other moneys and accounts at participating research institutions. (2) Each approved center may draw money from its account as approved by the council. (3) On or before January 5, 1996, and annually on or before January 5 thereafter, the council shall submit to the Legislative Research Commission a written status report on the projects and activities of each center of the infrastructure. (4) The Auditor of Public Accounts shall be responsible for a biennial financial post audit of the books and records of the infrastructure and each center approved by the infrastructure. The audit shall be conducted in accordance with generally accepted accounting principles and shall be paid for by the infrastructure. Effective: July 15, 1994 History: Created 1994 Ky. Acts ch. 508, sec. 53, effective July 15, 1994.

KRS 154.35-050 Functions of basic research centers and applied research centers -- Advisory committees -- Goal of infrastructure -- Centers to retain or contract with experts

154.35-050. Functions of basic research centers and applied research centers -- Advisory committees -- Goal of infrastructure -- Centers to retain or contract with experts (1) The function of the basic research centers shall be to perform basic research of significant benefit to one (1) or more key industries that have been identified in and targeted by the state's economic development strategic plan as having major importance to the sustained economic growth of the Commonwealth. The areas of research to be performed by each basic research center shall be set forth in the contract between the council and the contracting university and shall be approved only for those projects for which the center has a commitment from a private sector partner to make use of the results of the research. (2) The functions of the applied research centers shall be: (a) To perform applied research, development, and technology transfer on a fee for service basis, to businesses and groups of businesses. For performing this function the center shall give preference to businesses in key industries and networks of businesses; (b) To provide advice to businesses regarding other areas of business operations necessary for improved performance, including workforce training, total quality assurance, inventory control, and reorganization of the business and workplace; and (c) To perform applied research and technology development of significant benefit to one (1) or more key industries in areas set forth in the contract between the council and the contracting university. (3) The council shall appoint advisory committees of persons knowledgeable in each key industry to advise the council and the centers with regard to research needs of the industry and to evaluate research plans and research r esults. (4) It shall be the goal of the infrastructure that eighty percent (80%) of the total revenues of each center shall be generated by payments under contracts from private businesses. (5) To perform the functions set out in this section each center s hall retain or contract with scientists, engineers, and other persons having high levels of expertise in appropriate fields of research, including but not limited to, faculty, staff and students of the contracting universities; provided, however, that all contracts with persons employed by the contracting university shall be subject to approval by the council. Effective: July 15, 1994 History: Created 1994 Ky. Acts ch. 508, sec. 54, effective July 15, 1994.

KRS 154.35-055 Qualification as contracting university

154.35-055. Qualification as contracting university Universities individually or jointly eligible to serve as contracting universities for the centers set forth in KRS 154.35-020 may qualify by: (1) Agreeing to match the moneys allocated to the center by the council from the fund dollar-for-dollar from nonstate, nonagency funds raised by the university for research purposes; provided that for university budget years ending on or before July 1, 1996 a contracting university may provide its matching funds by redirecting previously-budgeted state or agency funds. In the discretion of the council, a university may provide all or part of its match by in-kind contributions of facilities and equipment of equal value. (2) Providing an operations plan, acceptable to the council, for the center which sets forth staffing, facilities, equipment, anticipated business demand for services, a proposed budget that reflects revenues from all sources including the fund, matching contributions from the contracting university, and anticipated receipts from research contracts with private businesses, and such other matters as directed by the council; and (3) Entering into a contract with the council which sets forth the terms and conditions upon which the center will be operated, including the operations plan agreed upon by the parties, performance standards, and funding commitments. The contract may extend beyond the end of the budget cycle of the university, may be renewed or extended by the parties, and shall be terminable by the council for nonperformance or unacceptable performance by the university as specified in the contract. Effective: July 15, 1994 History: Created 1994 Ky. Acts ch. 508, sec. 55, effective July 15, 1994.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=37797Fetched: 10/20/2026