AN ACT relating to economic development.

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AN ACT relating to economic development. 1
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2
Section 1. KRS 154.12-300 is amended to read as follows: 3
As used in KRS 154.12-300 to 154.12-310, unless the context indicates otherwise: 4
(1) "Early-stage company" means a company that is: 5
(a) A small or medium-size company in its initial stages of operation; 6
(b) Characterized by new or evolving product or service development; and 7
(c) Establishing initial customer or market validation with potential material 8
growth in employment or revenue; 9
(2) "Entrepreneur-led economic development" means a strategy in which successful 10
entrepreneurs contribute to regional growth by mentoring new founde rs, 11
strengthening local support networks, and helping guide collaborative efforts that 12
foster the development and scaling of innovative early -stage and high -growth 13
companies; 14
(3) "Executive director" means the executive director of the Office of 15
Entrepreneurship and Innovation; 16
(4) "High-growth company" means a company that is: 17
(a) A small or medium-size company; and 18
(b) Demonstrating or has demonstrated potential for rapid and sustained 19
expansion in employment, revenue, or market share with potential for 20
continued material growth; 21
(5) "Hub" means a location identified as the headquarters for program activity in a 22
region or subregion; 23
(6) "Medium-size company" means a business with fifty -one (51) to one hundred 24
fifty (150) employees; 25
(7) "Program" means the Kentucky Entrepreneurship and Innovation Hub 26
Program["Affiliate" means an ICC identified as the headquarters for program 27
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activity in a region or subregion; 1
(2) "Commissioner" means the commissioner of the Department of Commercialization 2
and Innovation established in KRS 154.12-278; 3
(3) "ICC" means the Kentucky Innovation and Commercialization Center]; 4
(8)[(4)] "Region" means a geographic area of Kentucky designated as having a unique 5
innovation strategic plan by the Office of Entrepreneurship [Department of 6
Commercialization] and Innovation; and[ 7
(5) "Satellite" means an office of an affiliate in a region] 8
(9) "Small company" means a business with fifty (50) or fewer employees. 9
Section 2. KRS 154.12-305 is amended to read as follows: 10
(1) There is established the Kentucky Entrepreneurship and Innovation Hub 11
Program[Kentucky Innovation and Commercialization Center Program] within the 12
Office of Entrepreneurship and Innovation[Department of Commercialization and 13
Innovation]. The goal of the [ICC ]program is to create products, new companies, 14
and value-added jobs in communities throughout the Commonwealth. Strategies to 15
achieve this goal include: 16
(a) Increasing quality deal flow of knowledge-based, technology -intensive 17
companies[technology-based firms] in Kentucky; 18
(b) Increasing understanding of start-up process and investment practices;[ and] 19
(c) Providing value-added services to the start-up and investment community; 20
(d) Supporting entrepreneur-led economic development; and 21
(e) Attracting workforce talent, investors, and start-up companies to Kentucky. 22
(2) The duties of the hubs[ICC program] shall include but not be limited to: 23
(a) Identifying and linking entrepreneurs, faculty, subject-matter experts, 24
scientists, venture capita lists, and other key individuals from the business 25
sector, universities, community and technical colleges, local leaders, and 26
government for the creation and expansion of knowledge -based, technology-27
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intensive companies; 1
(b) Establishing a uniform protocol for assembling and communicating project 2
concepts and opportunities; 3
(c) Supporting high-quality projects through the concept and development phases 4
including services such as market research, prototype development, business 5
plan and strategies development , grant and contract capabilities, and capital 6
and management resource identification; and 7
(d) Identifying, in the area of technology development, potential partners, 8
strategic opportunities, training and educational needs, and issues that inhibit 9
the growth of technology sectors and business clusters in the state. 10
Section 3. KRS 154.12-310 is amended to read as follows: 11
(1) The program hubs [Kentucky Innovation and Commercialization Centers] are 12
private-public partnerships, operating as a cohesive statewide infrastructure to 13
support the implementation of key Kentucky Innovation Act initiatives. 14
(2) The organization of the hubs[ICCs] shall be a statewide network [ of Kentucky 15
innovative hubs], with the location and services provided for each hub determined 16
by the executive director in accordance with the following: [of the Office of 17
Entrepreneurship and Innovation.] 18
(a) The Office of Entrepreneur ship and Innovation shall be the central 19
headquarters for the program[Kentucky innovative] hubs and has primary 20
responsibility for the following: 21
1. Managing and administering the[ ICC] program; 22
2. Establishing uniform program application, protocol, and operating 23
guidelines when appropriate; 24
3. Supporting the protocol by creating and funding centralized services to 25
be distributed throughout the network; and 26
4. Identifying those issues, opportunities, and challenges that have 27
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statewide implications;[.] 1
(b) The hubs[regional affiliates] are responsible for fulfilling the duties as set 2
forth in KRS 154.12 -305 relating to the implementation of the region's 3
innovation strategic plan and supporting the impl ementation of the Kentucky 4
Innovation Act initiatives in the region or subregion; and 5
(c) The hubs[satellites] are responsible for generating technology business 6
development in their assigned geographic area, acting as a bridge between 7
individuals and companies[businesses] needing critical early state concept 8
and development work and the hubs[affiliate centers] that can provide this 9
support. 10
The hubs[affiliates and satellites] provide a valuable assurance for equal access to 11
the Kentucky Innovation Act initiatives and funding, and provide an opportunity for 12
full participation in rural and remote, as well as metropolitan, areas of the state. 13
(3) The executive director [ of the Office of Entrepreneurship and Innovation] shall 14
have all the powers and authority, not explicitly prohibited by statute, necessary and 15
convenient to carry out and effectuate the purposes of KRS 154.12 -300 to 154.12 -16
310. 17
(4) The executive director [ of the Office of Entrepreneurship and Innovation] may, in 18
effectuating the provisions of K RS 154.12 -300 to 154.12 -310, contract with a 19
science and technology organization as defined in KRS 164.6011 to administer and 20
manage the[ ICC] program. 21
Section 4. KRS 164.6011 is amended to read as follows: 22
As used in KRS 164.6011 to 164.6029, unless the context indicates otherwise: 23
(1) "Applied research" means those research activities occurring at universities and in 24
private enterprises that have potential commercial application; 25
(2) "Cabinet" means the Cabinet for Economic Development; 26
(3) "Closely related family members" means any of the following in relation to an 27
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employee or their spouse: 1
(a) Parents or grandparents; 2
(b) Children or their spouses; or 3
(c) Siblings or their spouses; 4
(4) "Cluster" means a geographica lly bound concentration of similar, related, or 5
complementary companies[businesses] with active channels for business 6
transactions, communications, and dialogue, that share specialized infrastructure, 7
labor markets, and services, and that are faced with co mmon opportunities and 8
threats; 9
(5) "Commonwealth" means the Commonwealth of Kentucky; 10
(6) "Early-stage company" means a company that is: 11
(a) A small or medium-size company in its initial stages of operation; 12
(b) Characterized by new or evolving product or service development; and 13
(c) Establishing initial customer or market validation with potential material 14
growth in employment or revenue; 15
(7) "Eligible company" means any corporation, limited liability company, partnership, 16
limited partnership, sole proprietorship, business trust, person, group, or other 17
entity; 18
(8) "High-growth company" means a company that is: 19
(a) A small or medium-size company; and 20
(b) Demonstrating or has demonstrated potential for rapid and sustained 21
expansion in employment, revenue, or market share with potential for 22
continued material growth; 23
(9)[(7)] "Kentucky-based company" means a company[business] with its principal 24
place of business in Kentucky or no less than fifty percent (50%) of its property and 25
payroll located in Kentucky; 26
(10)[(8)] "Knowledge-based" means technology-intensive or driven by knowledge, 27
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innovation, and speed; 1
(11)[(9)] "Medium-size company" means a b usiness with fifty-one (51) to one hundred 2
fifty (150) employees; 3
(12)[(10)] "Qualified company" means an eligible company that may be granted a 4
funding voucher or award pending certification; 5
(13)[(11)] "Science and technology organization" means an indep endent, nonprofit or 6
quasi-governmental organization, with a statewide mission, that has a demonstrated 7
history of managing complicated programs in the areas of entrepreneurial 8
innovation, science, and technology advancement; 9
(14)[(12)] "Seed funding" means financing that is provided for early -stage development, 10
refinement, and commercialization of a product, process, or innovation through 11
continuing applied research, advancing the patent process, determining commercial 12
and market potential, or moving research toward development of a prototype; and 13
(15)[(13)] "Small company" means a company[firm] with fifty (50) or fewer employees. 14
Section 5. KRS 164.6019 is amended to read as follows: 15
(1) There is established and created a trust and agency account entitled the ["]Kentucky 16
enterprise fund["] for the purpose of enabling early-stage or high -growth[small or 17
medium-size], Kentucky -based companies to undertake feasibility, concept 18
development, research and dev elopment, [or ] commercialization, or expansion 19
work. 20
(2) The Kentucky enterprise fund may receive moneys from any public or private 21
source, including but not limited to general fund appropriations of the 22
Commonwealth, grants, or contributions of money, pro perty, labor, or other things 23
of value to be used to carry out the fund's operations, functions, and responsibilities, 24
and to otherwise make investments . Moneys received by the fund from a public or 25
private source may be subject to use restrictions, sector or cluster limitations, 26
investment criteria, or other conditions imposed by the contributing entity and are 27
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subject to approval by the cabinet, provided such conditions are consistent with 1
the purposes of the fund. 2
(3) The Kentucky enterprise fund shall a lso receive moneys transferred from the 3
Kentucky rural innovation fund under KRS 164.6027, the Kentucky 4
commercialization fund under KRS 164.6035, and the Kentucky alternative fuel 5
and renewable energy fund under KRS 154.20-410. 6
(4) Any unallocated or unen cumbered balances in the fund shall be invested as 7
provided in KRS 42.500(9), and any income earned from the investments along 8
with the unallotted or unencumbered balances in the fund shall not lapse, and shall 9
be made available solely for the purposes and benefits of the Kentucky enterprise 10
fund. 11
Section 6. KRS 164.6021 is amended to read as follows: 12
(1) The Cabinet for Economic Development shall manage the Kentucky enterprise fund 13
to provide capital to early-stage and h igh-growth[small and medium -size], 14
Kentucky-based companies to undertake feasibility, concept development, research 15
and development, [or ]commercialization, or expansion work. 16
(2) The purpose of the Kentucky enterprise fund is to: 17
(a) Accelerate knowledge transfer and technological innovation, improve 18
economic competitiveness, and spur economic growth in Kentucky -based 19
companies; 20
(b) Support feasibility, concept development, research and development, or 21
commercialization activities that have clear potential to lead to commercially 22
successful products, processes, or services within a reasonable period of time; 23
(c) Stimulate growth-oriented enterprises within the Commonwealth; 24
(d) Encourage partnerships and collaborative projects between private enterprises, 25
Kentucky's colleges and universities, and research organizations , including 26
collaborations involving one (1) or more such entities; 27
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(e) Promote research and development and commercialization activities that are 1
market-oriented;[ and] 2
(f) Support early-stage and high -growth[small and medium -sized] companies; 3
and 4
(g) Attract, recruit, and support early -stage and high -growth companies to 5
locate, relocate, or establish a substantial presence in the Commonwealth. 6
(3) The Kentucky enterprise fund shall be used to fund qualified companies in 7
accordance with this section as follows: 8
(a) Funding[Grants] of up to fifty thousand dollars ($50,000) for companies 9
exploring the feasibility of technology commercialization or projects related 10
to feasibility studies, such as incubator and accelerator programs; 11
(b) Funding of up to two hundred fifty thousand dollars ($250,000) for companies 12
in the concept development phase of technology commercialization; 13
(c) Funding of up to five hundred thousand dollars ($500,000) for companies 14
advancing and promoting the program g oals, as outlined in subsection (2) of 15
this section; and 16
(d) For new investments made on or after July 1, 2021, no qualified company can 17
receive a total investment from the fund in excess of up to five hundred 18
thousand dollars ($500,000). 19
(4) [Beginning July 1, 2021, ] The cabinet shall allocate at least twenty percent (20%) 20
of the annual allotment of funds for the Kentucky enterprise fund to qualified 21
companies located in rural or enhanced incentive counties, as certified under KRS 22
154.32-050, and at least twenty percent (20%) of the annual allotment of funds to 23
qualified companies located in Opportunity Zones, as designated by the 24
Commonwealth and certified by the Secretary of the United States Treasury. 25
(5) For all funding totaling more than thirty thousand dollars ($30,000), the science and 26
technology organization or any entity designated by the executive director of the 27
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Office of Entrepreneurship and Innovation shall receive an equity interest in the 1
qualified company, such as a general or limited partnership interest, limited liability 2
company interest, common or preferred stock with or without voting rights and 3
without regard to seniority position, forms of subordinate or convertible unsecured 4
debt, or both, with warrants, rights, or other means of equit y conversion attached, a 5
near equity interest such as a simple agreement for future equity or "SAFE 6
agreement", or other convertible debt instruments that are determined to qualify as 7
an adequate investment interest by the executive director of the Office of 8
Entrepreneurship and Innovation. 9
Section 7. KRS 164.6023 is amended to read as follows: 10
(1) The science and technology organization shall have the authority, upon approval by 11
the cabinet, to review applications, quali fy companies, and certify qualified 12
companies to receive funding from the Kentucky enterprise fund. 13
(2) The science and technology organization shall develop application criteria and an 14
application process subject to the following limitations. The proposed project shall 15
be likely to: 16
(a) Produce a measurable result and be technically sound; 17
(b) Lead to innovative technology or new knowledge; 18
(c) Lead to commercially successful products, processes, or services within a 19
reasonable period of time; or 20
(d) Show significant potential for stimulating economic growth and a reasonable 21
probability to enhance employment opportunities within the Commonwealth. 22
(3) The applicant shall provide to the science and technology organization an 23
application that shall include but not be limited to the following information: 24
(a) Verification that the applicant is an eligible company that: 25
1. Meets the definition of a Kentucky -based company , or has 26
demonstrated potential to become a Kentucky -based company within 27
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one hundred eighty ( 180) days after certification authorizing funding 1
under subsection (5) of this section, or within a timeframe determined 2
by the executive director of the Office of Entrepreneurship and 3
Innovation; and 4
2. Is an early -stage or high -growth[and medium-size company or small] 5
company; 6
(b) A technology description and plan that is sufficient for outside expert review; 7
(c) A detailed financial analysis that includes the commitment of resources by the 8
applicant and others; 9
(d) Sufficient detail c oncerning proposed project partners, type and amount of 10
work to be performed and financing to be contributed by each partner, and 11
expected product or service with estimated costs to be reflected in the 12
negotiated contract or agreement; and 13
(e) A statement of the economic development potential of the project. 14
(4) The science and technology organization shall conduct an independent review with 15
the use of outside experts to evaluate each application. Following the application 16
review, the science and technology organization shall make a determination of the 17
application and may determine that the applicant is a qualified company as defined 18
in KRS 164.6011. 19
(5) Upon a qualified company's presentation of a legal agreement or contract meeting 20
the conditions under su bsection (6) of this section, the science and technology 21
organization shall present the qualified company, the project partners, if any, and 22
the college or university in the Commonwealth, if any, with a certification 23
authorizing funding. 24
(6) Prior to receiving certification authorizing funding from the science and technology 25
organization, the qualified company shall: 26
(a) Negotiate an agreement and funding contract with a college or university in 27
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the Commonwealth, if any, and with a project partner, if any, that is 1
satisfactory to the science and technology organization, to undertake the 2
commercialization work; and 3
(b) Provide assurance to the science and technology organization that the college 4
or university and the qualified company have negotiated the owne rship and 5
disposition of patents, royalties, all other intellectual property rights, and 6
equity or related position relating to the contract between the qualifying 7
company and the college or university; 8
unless the requirement to partner with a college or university is recommended to be 9
waived by the science and technology organization. 10
(7) Prior to certifying a qualified company, the science and technology organization 11
may negotiate with the qualified company the ownership and disposition of patents, 12
royalties, all other intellectual property rights, and an equity, near equity such as a 13
simple agreement for future equity or "SAFE agreement", convertible debt, or 14
similar investment format that is approved by the executive director of the Office of 15
Entrepreneurship and Innovation on behalf of the Kentucky enterprise fund for the 16
sole purpose of reinvesting and sustaining a revolving fund to carry out the 17
provisions of KRS 164.6021 and 164.6023. 18
(8) The science and technology organization, upon approval by the cabinet, shall set 19
forth guidelines as to when and how all areas of the state will be n otified about the 20
program's availability and a program schedule, including but not limited to the 21
following: 22
(a) A review cycle including: 23
1. A deadline for submission of applications at least biannually; and 24
2. A deadline for reviewing applications of no more than one hundred 25
twenty (120) days after the application submission deadline; and 26
(b) A deadline, from the date an applicant is determined to be a qualified 27
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company, by which certification shall be made. If certification is not made by 1
that deadline the funding voucher award is made void. 2
Section 8. KRS 154.20-234 is amended to read as follows: 3
(1) The requirements for small businesses, investors, and investments to be qualified 4
for participation in the Angel Investor Program are as follows: 5
(a) To be certified as a qualified small business, the business shall demonstrate to 6
the authority that it is an entity which, at the time the small business requests 7
certification: 8
1. Has a net worth of ten million dollars ($10,0 00,000) or less or net 9
income after federal income taxes for each of the two (2) preceding 10
fiscal years of three million dollars ($3,000,000) or less; 11
2 Is actively and principally engaged in a qualified activity within the 12
Commonwealth, or will be activel y and principally engaged in a 13
qualified activity within the Commonwealth after the receipt of a 14
qualified investment by a qualified investor; 15
3. Has no more than one hundred (100) full-time employees; 16
4. Has more than fifty percent (50%) of its assets, op erations, and 17
employees located in the Commonwealth; and 18
5. Has at no time received an aggregate amount of qualified investments 19
that has allowed qualified investors to receive more than one million 20
dollars ($1,000,000) in angel investor credits; 21
(b) To be certified as a qualified investor, an individual investor shall demonstrate 22
to the authority that he or she: 23
1. Is an individual natural person who may utilize a single -member limited 24
liability company to make the investment as long as the individual 25
natural person is the owner and the limited liability company is a 26
disregarded entity; 27
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2. Qualifies as an accredited investor pursuant to Regulation D of the 1
United States Securities and Exchange Commission, 17 C.F.R. sec. 2
230.501, in effect as of the date the individual investor requests 3
certification; 4
3. Does not hold in excess of twenty percent (20%) ownership interest in, 5
and is not employed by, the qualified small business prior to making the 6
qualified investment in that qualified small business; 7
4. Is not closely related to an individual who holds in excess of twenty 8
percent (20%) ownership interest in, or who is employed by, the 9
qualified small business prior to making the qualified investment in that 10
qualified small business. For purposes of this subpara graph, "closely 11
related" means any of the following in relation to the owner or owners 12
or spouse of the owner or owners: 13
a. Parents or grandparents; 14
b. Children or their spouses; or 15
c. Siblings or their spouses; and 16
5. Seeks a financial return from the inv estment made in the qualified small 17
business;[ and] 18
(c) To be certified as a qualified investment, the investment shall: 19
1. Be a cash investment of at least ten thousand dollars ($10,000), in a 20
qualified small business made: 21
a. Directly by a qualified investor; or 22
b. Indirectly thro ugh a pass -through entity formed for the sole 23
purpose of making one (1) or more investments in a single, 24
qualified small business and treated as a pass -through entity for 25
federal income tax purposes; 26
2. If made through a pass -through entity, the amount eli gible for the tax 27
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credit shall be limited to that individual's pro rata share of the capital 1
contributed to the entity that is ultimately invested in the qualified 2
small business; and 3
3.[2.] Be offered and executed in compliance with applicable state and f ederal 4
securities laws and regulations; and 5
(d) A pass-through entity utilized under paragraph (c) of this subsection shall 6
not make qualified investments in more than one (1) company. 7
(2) In consideration for the qualified investment, the qualified invest or shall receive an 8
equity interest, or a near equity interest, such as a simple agreement for future 9
equity, or "SAFE agreement", or a convertible debt instrument in the qualified 10
small business. 11
(3) The authority may establish additional requirements and guidelines for the efficient 12
implementation and administration of the Kentucky Angel Investment Act and to 13
carry out its purposes. 14
Section 9. KRS 154.20-254 is amended to read as follows: 15
As used in KRS 154.20-250 to 154.20-284, unless the context clearly requires otherwise: 16
(1) "Affiliate" means any person or entity who directly or indirectly, through one (1) or 17
more intermediaries, controls or is controlled by or is under common control with 18
another person or entity; 19
(2) "Agreement" means an investment fund agreement entered into pursuant to KRS 20
154.20-255(5) by the authority and an investment fund manager on behalf of the 21
investment fund, the investment fund manager, and any investor in the investment 22
fund; 23
(3) "Amended application" means a document submitted by an investment fund 24
manager, in a form acceptable to the authority and on behalf of an investment fund, 25
for the purpose of increasing the aggregate amount of available tax credits; 26
(4) "Applicant" means any perso n or entity who has not received approval from the 27
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authority as an investment fund manager, but who has submitted or will submit an 1
application to the authority for approval as an investment fund manager; 2
(5) "Authority" means the Kentucky Economic Develop ment Finance Authority or its 3
designee; 4
(6) "Cash contribution" means an investment of money by an investor in an investment 5
fund under the terms of KRS 154.20-250 to 154.20-284; 6
(7) "Committed cash contribution" means a legally binding agreement by an investor to 7
make a cash contribution in an amount set forth in a written agreement between an 8
investor and an investment fund; 9
(8) "Commonwealth" means the Commonwealth of Kentucky; 10
(9) "Credit" means a nonrefundable credit for investors against state tax lia bility 11
allocated and granted by the authority pursuant to KRS 154.20 -258 for qualified 12
investments made by approved investment funds; 13
(10) "Entity" means any corporation, limited liability company, business development 14
corporation, partnership, limited par tnership, sole proprietorship, association, joint 15
stock company, receivership, trust, professional service organization, or other legal 16
entity through which business is conducted; 17
(11) "Financial institution" means "financial institution" as defined in KRS 136.500(10) 18
and includes savings and loan associations, savings banks, and similar institutions 19
subject to the taxes imposed by KRS 136.290, 136.300, or 136.310; 20
(12) "Insurance company" means any insurance company subject to the taxes imposed 21
by KRS 136.320, 136.330, or 304.3-270; 22
(13) "Investment fund" means any entity that is organized by an investment fund 23
manager in compliance with applicable state and federal securities laws and 24
regulations, and is approved by the authority to make qualified investme nts 25
pursuant to KRS 154.20-256; 26
(14) "Investment fund manager" means any person or entity that has been approved by 27
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the authority to manage one (1) or more investment funds authorized under the 1
provisions of KRS 154.20 -250 to 154.20 -284 and is in complianc e with all 2
applicable federal and state regulations; 3
(15) "Investor" means any person or entity, including financial institutions and insurance 4
companies, that is subject to state tax liability and that makes a cash contribution or 5
a committed cash contrib ution to an investment fund in accordance with the 6
provisions of KRS 154.20 -250 to 154.20 -284 and has not been convicted of 7
violating any of Kentucky's tax laws within the past ten (10) years; 8
(16) "Knowledge-based" has the same meaning as in KRS 164.6011; 9
(17) "Nonprofit entity" means an investor that is exempt from federal income tax under 10
Section 501(c) of the Internal Revenue Code of 1986, as amended; 11
(18) "Qualified activity" has the same meaning as in KRS 154.20-230; 12
(19) "Qualified investment" means an investment of at least ten thousand dollars 13
($10,000) in a small business by an investment fund, in compliance with applicable 14
state and federal securities laws and regulations, seeking a financial return based 15
upon that con sideration. In consideration for the qualified investment, the 16
investment fund shall receive an equity interest in the small business, such as a 17
general or limited partnership interest, common or preferred stock with or without 18
voting rights and without re gard to seniority position, forms of subordinate or 19
convertible unsecured debt, or both, with warrants, rights, or other means of equity 20
conversion attached; and 21
(20) "Small business" means any entity which at the time a qualified investment is made 22
by an investment fund: 23
(a) 1. Has a net worth of five million dollars ($5,000,000) or less or net 24
income after federal income taxes for each of the two (2) preceding 25
fiscal years of three million dollars ($3,000,000) or less; or 26
2. Is a knowledge -based business, as shall be prescribed by the executive 27
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director of the Office of Entrepreneurship and 1
Innovation[commissioner of the Department of Commercialization and 2
Innovation], and has a net worth of ten million dollars ($10,000,000) or 3
less; 4
(b) Is actively and pr incipally engaged in a qualified activity within the 5
Commonwealth, or will be actively and principally engaged in a qualified 6
activity within the Commonwealth after the receipt of a qualified investment 7
by an investment fund; 8
(c) Has no more than one hundred (100) employees; and 9
(d) Has more than fifty percent (50%) of its assets, operations, and employees 10
located in Kentucky. 11