House committee advances bill to modernize Kentucky innovation hubs and enterprise fund

House lawmakers on the House Standing Committee on Economic Development and Workforce Investment voted to report House Bill 577 favorably after representatives from the innovation community described the measure as an update to Kentucky’s startup support framework.

Representative Josh Branscomb (House District 83) urged the committee to adopt HB 577, saying the bill renames existing innovation and commercialization centers to the Kentucky Entrepreneurship Innovation Hub model, clarifies statutory definitions to improve transparency, broadens the Kentucky Enterprise Fund’s purposes and flexibility for supporting scaling companies, and expands the angel investor program to allow pass‑through entities to participate. Branscomb said the bill also would permit out‑of‑state companies to qualify for programs if they commit to become Kentucky‑based within 180 days.

Dave Knox, executive director and CEO of Blue North, one of Kentucky’s innovation hubs, attended as a proponent. Committee discussion was brief; the chair called for a motion, the committee recorded a roll call and the measure was reported out with a favorable recommendation.

Supporters said the changes are intended to align state statutes with contemporary startup and investment structures without creating new bureaucracy. The bill’s sponsors characterized the measures as tools to help recruit and scale high‑growth companies and to improve the state’s competitiveness for entrepreneurs and investors.

The committee did not adopt amendments on the record during the hearing and took a favorable committee action to advance the bill to the next legislative stage.