HB 525/FN/LM (BR 1034) - J. Richards, L. Clark, J. Callahan, C. Geveden, Ji. Lee, H. Moberly
AN ACT relating to development of science, technology, and business.
Amend KRS 68.180, KRS 68.197, KRS 91.200, and KRS 92.28l prohibiting the imposition of license fees or occupational taxes on investment partnerships if the investment would not be taxable if individually held; create a new section of KRS Chapter 141 to grant a tax credit against income tax of 5% for qualified construction costs of research facilities; amend KRS 141.0205 to conform; amend KRS 141.206 to clarify the tax code to prohibit the taxation of nonresidents on investment income, distributed by a qualified investment partnership, that would not be taxable to the nonresident if held individually; create new sections of Subchapter 12 of KRS Chapter 154 to define terms; establish the Kentucky Innovation and Commercialization Center (ICC) Program within the Office for the New Economy; describe the structure and function of the ICCs; create a concept phase funding pool to support the services of the program; create a new section of Subchapter 12 of KRS Chapter 154 to require the Kentucky Science and Technology Corporation to administer and manage the Kentucky Science and Engineering Foundation; amend KRS 154.12-224 to delineate the role of the commissioner of the Office for New Economy; amend KRS 154.12-274 to conform; amend KRS 154.12-278 to expand the duties of the Office for the New Economy; create new subsections of Subchapter 20 of KRS Chapter 154, relating to venture capital, to define terms; allow the authority to approve investment funds, fund managers, and tax credits; state the total amount of tax credits required; require that a person or entity seeking to be an investment fund manager be approved by the authority; require a commitment of cash contributions not less than $500,000; make additional requirements concerning the number of investors, the type of investments, and the size of investments; require specific application, business plan, credit and additional information and disclosures; require documents related to the Commonwealth's immunity; require that the fund and fund manager comply with all applicable state and federal laws; set limits on unused credits; set forth criteria to be considered by the authority for the approval of an investment fund; require that an investment fund manager operate no more than three separate investment funds; allow the authority to promulgate administrative regulations; grant a tax credit equal to 40% of an investor’s proportional ownership share of all qualified investments made by a fund and allow these credits to be taken against KRS 141.020, 141.040 or KRS 136.070; allow credits for insurance companies and financial institutions to be taken against KRS 136.330, 304.3-270, and the taxes imposed under KRS 136.500 to 136.570; limit the amount of tax credits taken in any tax year; allow for a fifteen-year carry-forward provision; allow a nonprofit entity to transfer tax credits; allow tax credits to pass through under certain conditions; specify a penalty for funds that violate provisions; provide for reporting requirements; allow for investment funds approved prior to July 1, 2002, to continue operating under certain conditions; amend KRS 154.20-277, 154.20-279, and 154.20-281; amend 154.20-283 to allow for an investment fund manager to occupy a management position in a small business under certain conditions; amend KRS 164.6011, relating to definitions; amend KRS 164.6013 to reference conforming sections; amend KRS 164.6015 to detail reporting requirements; amend KRS 164.6017 to clarify the role of the Council on Postsecondary Education; amend KRS 164.6029 to make technical changes in the Kentucky Rural Innovation Fund program; amend KRS 164.6033 to increase the fund award from $25,000 to $50,000 with a maximum $100,000; amend KRS 292.320 to permit an investment adviser to charge a performance-based fee with respect to a client that is an accredited investor; amend KRS 292.330 to provide an exemption from investment adviser registration for KIFA-approved investment fund managers; amend KRS 292.410 to expand the small-offering exemption under certain conditions; allow an issuer to sell its securities; increase the total amount of securities that an issuer may offer in reliance on the exemption; and repeal KRS 154.12-270; 154.20-253, 154.20-257, 154.20-259, 154.20-261, 154.20-263, 154.20-267, 154.20-269, 154.20-271, 154.20-273, and 164.6043.
HB 525 - AMENDMENTS
HFA (1, H. Moberly) - Amend KRS 68.180, 68.197, 91.200, and 92.281 to clarify when investment funds shall not be taxable to an individual investor; in Section 11, permit rather than require the commissioner to contract with a science and technology organization; amend KRS 154.12-278 to specify the programs to be reviewed and approved by the Office for the New Economy; make technical corrections; change Section 20 to identify when an investor can claim a credit and set the maximum amount of credits to $3 million each fiscal year; in Section 29, retain original definition of a "science and technology organization"; in KRS 164.6017 remove subsection (7); amend KRS 164.6023 and 164.6025 to clarify provisions of the Kentucky Research and Development Voucher program; and renumber sections.
HFA (2, J. Richards) - Retain original provisions; in Section 5, add remodeling to the definition of "construction of research facilities" and remove the reference to new facilities.
SCS - Retain the original provisions of the bill except remove the requirement that the department shall defer to the commissioner of the Office of the New Economy when preparing contracts subsequent to KEDFA approval; remove the requirement for action upon contracts within 60 days; remove the provision requiring the commissioner of the Office for the New Economy to establish standards to be used to grant investment fund managers a waiver from compliance with certain provisions.
SFA (1, E. Scorsone) - Add a new section to include in the definition of abuse of a corpse the acceptance of remuneration for the preparation of a corpse for burial or cremation and a deliberate failure to do so.
Jan 29-introduced in House
Jan 30-to Appropriations and Revenue (H)
Feb 8-posted in committee
Feb 12-reported favorably, 1st reading, to Calendar
Feb 13-2nd reading, to Rules
Feb 14-posted for passage in the Regular Orders of the Day for Friday, February 15, 2002
Mar 5-floor amendment (1) filed
Mar 7-floor amendment (2) filed
Mar 8-3rd reading, passed 94-0 with floor amendments (1) and (2)
Mar 11-received in Senate
Mar 14-to Economic Development, Tourism & Labor (S)
Mar 21-floor amendment (1) filed
Mar 26-taken from committee; laid on clerk's desk; 1st reading, to Calendar
Mar 27-2nd reading, to Rules; recommitted to Economic Development, Tourism & Labor (S)
Mar 28-reported favorably, to Rules with Committee Substitute as a Consent Bill
Mar 29-posted for passage in the Consent Orders of the Day for Friday, March 29, 2002; taken from the Consent Orders of the Day, placed in the Regular Orders of the Day; 3rd reading; floor amendment (1) withdrawn ; passed 38-0 with Committee Substitute
Apr 1-received in House; posted for passage for concurrence in Senate Committee Substitute
Apr 2-House concurred in Senate Committee Substitute ; passed 96-0; enrolled, signed by each presiding officer; delivered to Governor
Apr 8-signed by Governor (Acts ch. 230)