Topeka ? An organization established by the Kansas Legislature to spur investment in bioscience technology announced Thursday that it plans to sever its ties with the state and become a private entity in 2016.

The Kansas Bioscience Authority, headquartered in Olathe, said its board of directors voted unanimously to become a private entity at its Dec. 18 meeting.

The announcement, sent to reporters late Thursday afternoon, did not specify when the transition to become a private entity would be finalized. However, it did say that KBA president and CEO Duane Cantrell would step down effective Jan. 1, to be replaced by Kevin Lockett, who has served as KBA’s chief financial officer and chief operating officer.

KBA was established in 2004 as a kind of public-private venture capital entity that used both state funds and private money to invest in startup bioscience technology companies locating mainly in the Kansas City area.

In recent years, though, tensions have grown between the KBA and the Kansas Legislature over the types of investments made. Some lawmakers have also expressed philosophical concerns about whether it is appropriate to use state funds to make private equity investments.

During the 2015 session, lawmakers slashed the state’s appropriation to KBA to just $13 million in each of the next two years, instead of the $35 million and $75 million KBA was expecting to receive. Of that $13 million, nearly half is directed to state universities.

“Based on current realities, privatizing the KBA best serves the Kansas bioscience industry, KBA’s portfolio of companies, the state of Kansas and the organization,” Cantrell said.

Thursday’s announcement did not provide details about how it plans to handle the state’s equity interests in KBA’s portfolio. Attempts to reach KBA officials by phone Thursday afternoon were not successful.