2026 Regular Session - Day 29 - HB 577 | Rep. Josh Branscum

House Bill 577 modernizes Kentucky's economic development statutes to better support early stage and high growth companies, strengthen our statewide innovation ecosystem, and improve our competitiveness in attracting entrepreneurs and investments to the Commonwealth. This bill builds upon tools we already have. It does not create any new bureaucracy, it just updates the framework to reflect how today's economy actually operates. First, the bill transitions the existing Innovation and Commercialization Center model into the Kentucky Entrepreneurship and Innovation Hub program. This name change reflects a shift to an entrepreneur-driven hub model, which already exists, that supports startup growth across Kentucky. Second, it clarifies and modernizes definitions within statute. This is very important because we want clear definitions to provide certainty for businesses and investors and improve program transparency. Third, it strengthens the Kentucky Enterprise Fund by expanding its purpose to better recruit and support scaling companies, allow more flexibility in how contributive funds can be used while still maintaining cabinet oversight, and allows out-of-state companies to qualify if they commit to becoming a Kentucky-based company within 180 days. That last piece is particularly important for business attraction. It gives us the ability to compete for relocating startups while still requiring a commitment to our Commonwealth. Finally, the bill expands the Angel Investor Program to allow for pass-through entities to participate, reflecting how modern investment groups are structured and increasing capital availability for Kentucky startups. Mr. Speaker, those are the details of House Bill 577, and I move to pass.