2025 Legislative Update

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2025
KLC
Legislative
UPDATE
SECTION TITLE
Address
100 East Vine St #800
Lexington, KY 40507
Phone
800.876.4552
Web
KLC.ORG
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TABLE OF CONTENTS
Alcoholic Beverages -------------------------------------------------------------------------- Page 7
HB 437 Alcoholic Beverage Control Administrators & Investigators
HB 437 Sale of Alcoholic Beverages by the Drink on Sunday
HB 618 Alcohol Licensing Amendments
HB 775 Electronic Submission of Reports by Microbrewery Licensee
HB 775 Property Taxes on Distilled Spirits Aging in Barrels
Tobacco and Regulated Substances -----------------------------------------------------
HB 775 Taxation of Cannabis-Infused Beverages
SB 202 Regulation of Cannabis-Infused Beverages
SB 100 Licensure of Tobacco Retailers
Page 10
SECTION TITLE
Economic Development & Tourism ------------------------------------------------------ Page 13
HB 114 Recreational Use Immunity
HB 552 Tourist and Convention Commissions
HB 605 Government Resources Grant Program
HB 606 Regional Economic Development Projects
HB 775 Sales Tax Incentives for Qualifying Entertainment Events
SB 1 Kentucky Film Office
Election Petitions ----------------------------------------------------------------------------- Page 18
HB 684 Election Petitions
Emergency Services -------------------------------------------------------------------------- Page 19
HB 152 Public Ground Ambulance Provider Program
HB 305 Health Care
SB 27 Nonemergency Medical Transport (NEMT)
SB 129 Emergency Response Fee
SB 237 Telecommunicator Training
Energy & Utilities -----------------------------------------------------------------------------
SB 64 Key Infrastructure Assets
SB 179 Nuclear Energy Development
Page 22
Environmental Protection ------------------------------------------------------------------ Page 24
HB 137 Air Quality Monitoring
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SB 89
Environmental Protection – Waters of the Commonwealth
Firefighters ------------------------------------------------------------------------------------- Page 25
HB 131 Firefighters’ Work Schedules
SB 25 Appeals from Final Orders of Fire Officials
Housing -----------------------------------------------------------------------------------------
HB 160 Manufactured Housing
SB 25 Revenue Bonds for Qualified Housing Development
SB 129 Metro Tax Delinquency Diversion Program
Planned Communities ----------------------------------------------------------------------
HB 27 Planned Communities
Page 27
Page 30
Law Enforcement -----------------------------------------------------------------------------
HB 10 Unlawful Occupation of Real Property
HB 520 Open Records
HB 234 Airport Police
HB 369 Annual Leave Policy for Qualifying Police Departments
SB 237 Peace Officer Certification
SB 237 School Resource Officers for Postsecondary Institutions
Page 31
SECTION TITLE
Local Government Administration ------------------------------------------------------
HB 555 Municipal Audits
HB 555 Finance and Revenue of Cities
HB 662 Personally Identifiable Information
Page 34
Planning & Zoning ---------------------------------------------------------------------------- Page 36
HB 321 Planning and Zoning Appeals
HB 321 Planning and Zoning Training
SB 129 Density Development Projects
SB 129 Binding Element Enforcement
Retirement ------------------------------------------------------------------------------------- Page 38
HB 30 Pension Spiking
SB 10 Health Insurance Subsidies for CERS Retirees
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State Funded or Administered Programs ---------------------------------------------- Page 40
HB 546 Local Assistance Road Program (LARP)
HJR 46 County Priority Road Projects
HB 537 Opioid Abatement Trust Fund
HB 398 Occupational Safety and Health Administration
State Revenue Measures -------------------------------------------------------------------- Page 42
HB 1 State Individual Income Tax Rate for 2026
HB 544 State Aid Funding for Disaster Relief
HB 775 State Income Tax Reform
HJR 30 Troubled Water and Wastewater Assistance Fund
SECTION TITLE
Tax Increment Financing Programs -----------------------------------------------------
HB 775 Tax Increment Development Area Within Existing Development Area
SB 129 Signature Project Program
SB 129 Mixed-Use Redevelopment in Blighted Urban Areas
Transportation & Motor Vehicles ---------------------------------------------------------
HB 15 Driver Instruction Permits
HB 443 Hal Rogers Parkway
HB 493 Towing and Storage of Motor Vehicles
HB 546 Interstate 69 Ohio River Bridge Crossing Project
HB 664 Automated Speed Enforcement in Work Zone
SB 63 Street-Legal Special Purpose Vehicles
Page 44
Page 46
BILL TITLE & PAGE NUMBER
House Bills in Index Are Listed in Numerical Order
HB 1: State Individual Income Tax Rate for 2026.................................................................. Page 42
HB 10:
HB 15:
HB 27:
HB 30:
Unlawful Occupation of Real Property........................................................................ Page 31
Driver Instruction Permits........................................................................................... Page 46
Planned Communities................................................................................................. Page 30
Pension Spiking............................................................................................................ Page 38
HB 114: Recreational Use Immunity......................................................................................... Page 13
HB 131: Firefighters’ Work Schedules....................................................................................... Page 25
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HB 137: Air Quality Monitoring................................................................................................ Page 24
HB 152: Public Ground Ambulance Provider Program........................................................... Page 19
HB 160: Manufactured Housing.............................................................................................. Page 27
HB 234: Airport Police.............................................................................................................. Page 32
HB 305: Health Care................................................................................................................. Page 20
HB 321: Planning and Zoning Appeals.................................................................................... Page 36
HB 321: Planning and Zoning Training................................................................................... Page 36
HB 369: Annual Leave Policy for Qualifying Police Departments.......................................... Page 32
HB 398: Occupational Safety and Health Administration...................................................... Page 41
HB 437: Alcoholic Beverage Control Administrators and Investigators................................. Page 7
HB 437: Sale of Alcoholic Beverages by the Drink on Sunday................................................ Page 7
HB 443: Hal Rogers Parkway.................................................................................................... Page 46
HB 493: Towing and Storage of Motor Vehicles...................................................................... Page 46
HB 520: Open Records............................................................................................................. Page 31
HB 537: Opioid Abatement Trust Fund................................................................................... Page 40
HB 544: State Aid Funding for Disaster Relief......................................................................... Page 42
HB 546: Local Assistance Road Program................................................................................. Page 40
HB 546: Interstate 69 Ohio River Bridge Crossing Project...................................................... Page 47
HB 552: Tourist and Convention Commissions...................................................................... Page 13
HB 555: Municipal Audits......................................................................................................... Page 34
HB 555: Finance and Revenue of Cities................................................................................... Page 35
HB 605: Government Resources Grant Program.................................................................... Page 13
HB 606: Regional Economic Development Projects............................................................... Page 14
HB 618: Alcohol Licensing Amendments................................................................................ Page 8
HB 662: Personally Identifiable Information.......................................................................... Page 35
HB 664: Automated Speed Enforcement in Work Zone......................................................... Page 48
HB 684: Election Petitions....................................................................................................... Page 18
HB 775: Electronic Submission of Reports by Microbrewery Licensee.................................. Page 9
HB 775: Property Taxes on Distilled Spirits Aging in Barrels.................................................. Page 9
HB 775: Taxation of Cannabis-Infused Beverages.................................................................. Page 10
HB 775: Sales Tax Incentives for Qualifying Entertainment Events....................................... Page 17
HB 775: State Income Tax Reform........................................................................................... Page 43
HB 775: Tax Increment Development Area Within Existing Development Area.................... Page 44
HJR 30: Troubled Water and Wastewater Assistance Fund.................................................... Page 43
HJR 46: County Priority Road Projects.................................................................................... Page 40
SECTION TITLE
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SECTION TITLE
Senate Bills in Index Are Listed in Numerical Order
SB 1: Kentucky Film Office.................................................................................................... Page 17
SB 10: Health Insurance Subsidies for CERS Retirees............................................................ Page 39
SB 25: Appeals from Final Orders of Fire Officials.................................................................. Page 26
SB 25: Revenue Bonds for Qualified Housing Development................................................. Page 28
SB 27:
SB 63:
SB 64:
SB 89:
Nonemergency Medical Transport............................................................................... Page 20
Street-Legal Special Purpose Vehicles......................................................................... Page 48
Key Infrastructure Assets.............................................................................................. Page 22
Environmental Protection - Waters of the Commonwealth....................................... Page 24
SB 100: Licensure of Tobacco Retailers.................................................................................... Page 11
SB 129: Emergency Response Fee............................................................................................ Page 20
SB 129: Metro Tax Delinquency Diversion Program................................................................. Page 28
SB 129: Density Development Projects.................................................................................... Page 37
SB 129: Binding Element Enforcement.................................................................................... Page 37
SB 129: Signature Project Program.......................................................................................... Page 44
SB 129: Mixed-Use Redevelopment in Blighted Urban Areas.................................................. Page 45
SB 179: Nuclear Energy Development...................................................................................... Page 22
SB 202: Regulation of Cannabis-Infused Beverages................................................................ Page 10
SB 237: Telecommunicator Training......................................................................................... Page 21
SB 237: Peace Officer Certification........................................................................................... Page 33
SB 237: School Resource Officers for Postsecondary Institutions.......................................... Page 33
NOTE
The effective date of all legislation enacted by the 2025 Regular Session of the General Assembly is
Friday, June 27, 2025, except for measures containing emergency or delayed effective date provisions.
(OAG 25-05)
If a bill reported in this update becomes effective on a date other than Friday, June 27, 2025,
it is noted in the summary of the bill.
The complete text of all bills is available for review on the Legislative Research Commission
website at www.lrc.ky.gov.
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HB 437
Alcoholic Beverage Control Administrators and Investigators
Sponsor: Representative Tony Hampton (R-Georgetown)
HB 437, a KLC initiative, amends multiple sections of KRS Chapter
241 to require that alcoholic beverage control (ABC) administrators and
investigators in local governments must be certified under the Peace Officer
Professional Standards (POPS), in accordance with KRS 15.380 to 15.404,
in order to be vested with the authority to make arrests. The bill creates an
exception for any individual serving as an administrator in a consolidated
local government as of the effective date of the act.
HB 437
Sale of Alcoholic Beverages by the Drink on Sunday
Sponsor: Representative Tony Hampton (R-Georgetown)
HB 437 amends KRS 244.290 to permit a licensee authorized to sell distilled spirits and
wine by the drink at retail to sell distilled spirits and wine by the drink on Sunday and during the
times and hours as permitted by a local ordinance of the legislative body with local jurisdiction.
Likewise, KRS 244.480 is amended to permit a licensee authorized to sell malt beverages
by the drink at retail to sell malt beverages by the drink on Sunday and during the times and hours
as permitted by a local ordinance of the legislative body with local jurisdiction.
Local ordinances of a legislative body may regulate the hours of sale, but they may not
prohibit the sale or gift of malt beverages, distilled spirits, and wine by the drink between 6:00
a.m. and midnight on any day except Sunday.
ALCOHOLIC BEVERAGES
House Bill 437
Sponsor
Representative
Tony Hampton
(R-Georgetown)
testifies with
KLC Director of
Government
Affairs Gracie Kelly
and Kentucky
Association of
Chiefs of Police
Executive Director
Shawn Butler.
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HB 618
Alcohol Licensing Amendments
Sponsor: Representative Matthew Koch (R–Paris)
HB 618 amends KRS 243.034, KRS 243.084, and KRS 243.250 to permit the holder of a
limited restaurant license, the holder of a Nonquota type 2 (“NQ2”) retail drink license operating
as a restaurant, and the holder of a quota retail drink license to purchase alcoholic beverages by
the package directly from retailers licensed to sell distilled spirits, wine, and malt beverages, but
only if the alcoholic beverages have first gone through the three-tier system.
Any purchase made shall: 1) only be sold by the drink for consumption on the licensed
premises or off-premises consumption pursuant to KRS 243.081; 2) be reported quarterly on
a form prescribed by the Department of Alcoholic Beverage Control; and 3) include a copy of
each receipt of purchase. The holder of a limited restaurant license or NQ2 retail drink license
operating as a restaurant shall not purchase at retail more than 9 liters of distilled spirits per
month, 9 liters of wine per month, and three cases of malt beverages per month. The holder of
a quota retail drink license shall not purchase at retail more than 9 liters of distilled spirits and 9
liters of wine per month.
ALCOHOLIC BEVERAGES
KRS 243.088 is amended to permit the holder of a Nonquota type 4 (“NQ4”) retail
malt beverage drink license to purchase malt beverages by the package directly from retailers
licensed to sell malt beverages at retail, but only if the malt beverages have first gone through
the three-tier system. Any purchase shall: 1) only be sold by the drink for consumption on the
licensed premises; 2) be reported quarterly on a form prescribed by the department; and 3)
include a copy of each receipt of purchase. The holder of an NQ4 retail malt beverage drink
license shall not purchase at retail more than three cases of malt beverages per month.
HB 618 amends KRS 243.036 to permit a special temporary alcoholic beverage auction
license to be issued by the Department of Alcoholic Beverage Control to an auctioneer licensed
under KRS Chapter 330 that is valid for a period of one year. Alcoholic beverages shall only be
sold by an auctioneer under a special temporary auction license if the alcoholic beverages were
not purchased or attained for the purpose of resale at auction, such as in instances of an estate
sale or sale of a collection held by one individual or household.
An auctioneer holding a special temporary alcoholic beverage auction license may: 1)
transport, receive, possess, store, advertise, auction, sell, deliver, and ship alcoholic beverages
either sold or intended for sale at auction by the licensee; 2) sell only alcoholic beverages
at auction that were previously lawfully sold at retail and are in their original manufacturer’s
unopened container; and 3) conduct the auction on premises licensed by the department,
unlicensed premises, or online only on the days and during the hours that the sale of alcoholic
beverages is otherwise authorized in the county or municipality where the live auction is held or,
for an online auction, the physical location of the alcoholic beverages being sold.
A special temporary alcoholic beverage auction conducted by an auctioneer shall be:
1) subject to all restrictions and limitations contained in KRS Chapters 241 to 244 and the
administrative regulations issued under those chapters; 2) separate from any other type of
alcoholic beverage auction authorized under KRS Chapters 241 to 244, but may be combined
with other types of auctions authorized under KRS Chapter 330 relating to auctioneers and
auction houses; 3) authorized for in-person live auctions and online auction closings only on the
days and only during the hours that the sale of alcoholic beverages is otherwise authorized in
the county or municipality where the live auction is held or, for an online auction, the physical
location of the alcoholic beverages being sold; and 4) subject to the auction and auctioneer
requirements of KRS Chapter 330.
An auctioneer conducting a special temporary alcoholic beverage auction shall post a
copy of its license at the location of the event for in-person auctions and on the auction website
for online auctions. All advertising for an auctioneer special temporary alcoholic beverage
auction shall show the name and license number of the auctioneer licensee and conform to all
advertising requirements and restrictions for auctions contained in KRS Chapter 330 and any
administrative regulations promulgated under that chapter.
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A new section of KRS Chapter 330 is created to authorize an auctioneer licensed
under the chapter to obtain a special temporary alcoholic beverage auction license from the
Department of Alcoholic Beverage Control. A special temporary alcoholic beverage auction
license shall allow the auctioneer to auction alcoholic beverages as authorized under KRS
Chapter 243.
An auctioneer who receives a suspension or revocation from the Department of
Alcoholic Beverage Control for a violation related to a special temporary alcoholic beverage
auction license may be subject to additional discipline by the board under KRS Chapter 330.
The Department of Alcoholic Beverage Control has no authority to take any action relating to
an auctioneer’s license issued under KRS Chapter 330. An auctioneer may auction alcoholic
beverages as a separate auction or in the same auction with other types of real and/or personal
property.
HB 618 also amends KRS 243.110 and KRS 243.238 to allow a limited nonquota package
license to be issued as a supplementary license to a licensee that holds a Nonquota Type 3, or
NQ3, retail drink license or a quota retail drink license in a jurisdiction that has authorized the
sale of distilled spirits and wine by the package.
An NQ3 retail drink license is available to businesses such as private clubs, dining cars,
and bed and breakfast accommodations. A quota retail drink license authorizes a licensee to
purchase and sell distilled spirits and wine at retail by the drink for consumption on the licensed
premises or off premises pursuant to KRS 243.110.
A limited nonquota package license authorizes a licensee to purchase private selection
packages in the original manufacturer’s unopened containers and to sell private selection
packages at retail in the original manufacturer’s unopened containers only for consumption off
the licensed premises. A “private selection package” refers to a bottle of distilled spirits sourced
from a barrel or barrels selected by individuals, groups, non-profits, businesses, or retailers.
HB 775
Electronic Submission of Reports by Microbrewery Licensee
Sponsor: Representative Jason Nemes (R-Middletown)
ALCOHOLIC BEVERAGES
HB 775 amends KRS 131.250 to require a licensee holding a microbrewery license who is:
1) authorized to sell malt beverages under KRS 243.157; and 2) required to pay wholesale sales
tax under KRS 243.884 and excise tax on malt beverages under KRS.243.720 to electronically
submit any payment and tax return, report, or statement to the Department of Revenue
beginning July 1, 2026.
HB 775
Property Taxes on Distilled Spirits Aging in Barrels
Sponsor: Representative Jason Nemes (R-Middletown)
HB 775 amends portions of HB 5 passed by the 2023 Kentucky General Assembly
relating to state and local ad valorem tax rates on distilled spirits stored or aging in barrels in a
bonded warehouse or premises. KRS 132.140, 138.208, and 157.362 are amended to require that
the property tax reductions on distilled spirits stored or aging in barrels located in a bonded
warehouse or premises as determined in HB 5 be based on the assessed value that is subject to
state and local ad valorem taxes rather than the applicable tax rate.
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HB 775 Taxation of Cannabis-Infused Beverages
Sponsor: Representative Jason Nemes (R-Middletown)
HB 775 amends several sections of KRS Chapter 243 to impose an excise tax and a
wholesale sales tax on cannabis-infused beverages. “Cannabis-infused beverage” is defined by
KRS 241.010 to mean a properly permitted adult-use cannabinoid liquid product intended for
human consumption that has intoxicating properties that change the function of the nervous
system and results in alterations of perception, cognition, or behavior, and shall not contain more
than 5 milligrams of intoxicating adult-use cannabinoids per 12-ounce serving.
KRS 243.720 is amended to levy upon the use, sale, or distribution by sale or gift of
cannabis infused beverages a tax of $1.92 on each gallon of a cannabis-infused beverage, and a
proportional rate per gallon on all cannabis-infused beverages used, sold, or distributed in any
container of more or less than one gallon.
TOBACCO & SUBSTANCES
KRS 243.730 is amended to: 1) require cannabis-infused beverage distributors to pay
and report the tax levied under KRS 243.720 in the month next succeeding the month in which
possession or title of cannabis-infused beverages is transferred from the cannabis-infused
beverage distributor to retailers or consumers in accordance with administrative regulations;
and 2) require every manufacturer of cannabis-infused beverages permitted by the Department
of Public Health to sell, transfer, or pass title to cannabis-infused beverages to any person in the
state other than a distributor or retailer to pay and report the tax levied under KRS 243.720 in
the month next succeeding the month in which possession of title to cannabis-infused beverages
is transferred in accordance with administrative regulations.
SB 202 Regulation of Cannabis-Infused Beverages
Sponsor: Senator Julie Raque Adams (R-Louisville)
SB 202 amends several sections of KRS Chapters 241, 243, and 244 to provide a
comprehensive framework for regulation of cannabis-infused beverages similar to the manner
in which other alcoholic beverages are regulated. “Cannabis-infused beverage” means: 1) a
properly permitted adult-use cannabinoid liquid product intended for human consumption
that has intoxicating properties that change the function of the nervous system that result in
alterations of perception, cognition, or behavior; and 2) shall not contain more than 5 milligrams
of intoxicating adult-use cannabinoids per 12-ounce serving. “Cannabinoid” means a compound
found in the hemp plant Cannabis sativa L. from a United States Department of Agriculture
sanctioned domestic hemp production program. Cannabis-infused beverages do not include
medicinal cannabis regulated by KRS Chapter 218B, any type of hemp tincture, or any product
containing solely nonintoxicating cannabinoids.
The Department of Alcoholic Beverage Control shall establish specific licensing,
distribution, and sales requirements for cannabis-infused beverages pursuant to administrative
regulations promulgated by the department on or before July 1, 2026. Key provisions will
include creation of specific licenses for cannabis-infused beverage retailers and cannabisinfused
beverage distributors and requiring that such beverages can only be sold by package
in wet territories by holders of both a quota retail package license and a new cannabisinfused
beverage retail package license. Individuals under the age of 21 will be prohibited
from purchasing a cannabis-infused beverage. While the Department of Alcoholic Beverage
Control will regulate the beverages, the Department for Public Health will continue to oversee
manufacturers until July 2026 as currently provided.
A grace period is included. Retailers that currently have products on the shelves at more
than 5 milligrams per 12-ounce serving may continue sales until June 1, 2025, when all cannabisinfused
beverages with more than 5 milligrams per 12-ounce serving must be removed.
An emergency is declared. SB 202 became law on March 25, 2025, when signed by the
governor.
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SB 100
Licensure of Tobacco Retailers
Sponsor: Senator Jimmy Higdon (R-Lebanon)
SB 100 creates new sections in KRS 438.305 to 438.350 relating to sale and distribution of
tobacco products and amends current statutes within KRS 438.305 to 438.350 to establish the
Division of Tobacco, Nicotine, and Vapor Product Licensing within the Department of Alcoholic
Beverage Control to license and regulate the sale and distribution of tobacco, alternative
nicotine, and vapor products. The bill requires all retailers who sell tobacco, alternative nicotine,
or vapor products to be licensed effective Jan. 1, 2026, and gives the Department of Alcoholic
Beverage Control inspection and enforcement powers similar to those exercised in relation to
alcohol retailers.
Each application for a tobacco, alternative nicotine, or vapor product license shall be
made on a form prescribed by the department. The application shall be accompanied by a
non-refundable application fee of $50 and any supporting documentation required by the
department. The application fee shall be applied to the licensing fee if the license is issued. If no
license is issued, the application fee shall be retained by the department.
A tobacco, alternative nicotine, or vapor product license shall: 1) be renewed annually; 2)
remain in full force and effect for one year from the date of issuance unless it is surrendered by
the licensee, suspended, or revoked; and 3) posted in a conspicuous place inside the premises
of the business where tobacco, alternative nicotine, or vapor products are sold. The fee for a
license shall be $500 per year for each licensed premises payable to the State Treasury. All of
the fees paid to the State Treasury for state licenses shall be credited to a revolving trust and
agency account. Half of the funds shall go to a youth program administered by the Department
of Public Health directed at targeting and educating youth on the dangers of tobacco products,
alternative nicotine products, and vapor products.
A person, firm, or corporation shall not operate as a retailer selling tobacco, alternative
nicotine, or vapor products in or on any premises in the commonwealth without first obtaining
a tobacco, nicotine, or vapor product license issued by the department. Any person who, by
himself or herself or through another, directly or indirectly operates as a retailer without a license
shall for the first offense, be guilty of a Class B misdemeanor; for the second offense, be guilty
of a Class A misdemeanor; and for the third and each subsequent offense, be guilty of a Class D
felony.
A retailer shall not sell, give away, or distribute any nicotine vapor product to any person
under 21 years of age. Any retailer that violates the ban regarding sale of vapor products shall
be subject to a: 1) $100 fine to the retail sales clerk for a first citation and a notice to the owner
of a retail establishment which details the violation; 2) $100 fine to the retail sales clerk and an
additional $500 fine to the owner of a retail establishment for a second citation; 3) $100 fine to
the retail sales clerk and an additional $1,000 fine to the owner of a retail establishment for a
third citation; and 4) revocation of the tobacco, nicotine, or vapor product license upon a fourth
citation. Revocation for any fourth and subsequent citation within a two-year period shall result
in the inability to reapply for a license for two years.
TOBACCO & SUBSTANCES
Any person under the age of 21 years found possessing or consuming tobacco, alternative
nicotine, or vapor products may be required to participate in a community service program or
attend a tobacco cessation program.
The bill additionally bans the sale or distribution of nitrous oxide by tobacco, alternative
nicotine, or vapor product retailers. A retailer shall not sell, distribute, give away, or cause to
be sold any device, canister, tank, or receptacle that either exclusively contains nitrous oxide or
exclusively contains a chemical compound mixed with nitrous oxide. Any retailer that violates
the ban shall be subject to:
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1. a $2,500 fine to the owner of a retail establishment for a first citation;
2. a $5,000 fine to the owner of a retail establishment for a second citation; and
3. up to 30 days in jail for the owner of a retail establishment for a third citation.
An emergency is declared. Parts of the bill became effective on March 24, 2025, when
signed by the governor. Other parts, including licensing requirements, become effective Jan. 1,
2026.
Senate Bill 100
Sponsor Senator
Jimmy Higdon
(R-Lebanon)
Courtesy LRC
TOBACCO & SUBSTANCES
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HB 114
Recreational Use Immunity
Sponsor: Representative Timmy Truett (R–McKee)
HB 114 amends KRS 150.645 relating to landowner liability to provide immunity to an
owner, lessee, or occupant of premises who gives permission to another person to participate
in rock climbing, bouldering, or rappelling on the premises, in addition to other previously
identified activities, for any injury to any person or property caused by the negligent acts of any
person to whom permission is granted except for willful and malicious failure on behalf of the
owner, lessee, or occupant.
KRS 411.190, relating to obligations of an owner to persons using land for recreation,
is amended to include rocks, boulders, and cliffs in the definition of “land” and rock climbing,
bouldering, and rappelling in the definition of “recreational purpose.” An owner of land owes
no duty of care to keep the premises safe for use by others for rock climbing, bouldering, or
rappelling on the premises.
HB 552 Tourist and Convention Commissions
Sponsor: Representative Kim King (R-Harrodsburg)
HB 552 amends KRS Chapter 91A.360 to allow the appropriate chief executive officer
or officers of the local governing body or bodies that established the tourist and convention
commission in a local jurisdiction to appoint to the commission persons representing local
restaurants, hotels, or motels residing within the city or county of the commission if no formal
local city or county restaurant association, hotel and motel association, or chamber of commerce
exists to appoint specifically designated commission members.
The legislation additionally amends KRS 91A.390 related to multicounty tourist and
convention commissions as provided in KRS 91A.350(3) to amend the current permissible 1%
additional transient room tax above the 3% rate if used for the purpose of funding regional
efforts relating to the promotion of tourist and convention business and convention centers
if approved by each governing body of the multicounty commission. Instead of the current
1% limit, the bill provides the additional tax shall not be subject to a tax rate cap if used
for the purpose of funding regional efforts relating to, in addition to the original purpose,
the construction, maintenance, repair, renovation, improvement, expansion, acquisition,
development, promotion, or operation of real property, personal property, or facilities within the
jurisdiction of the multicounty tourist and convention commission in order to encourage tourism,
visitation, recreation, or economic development.
ECONOMIC DEVELOPMENT
KRS 154.90-010 is amended to increase the number of board members for the Northern
Kentucky Convention Center Corporation from seven to 11. The county judge/executives of
Kenton, Campbell, and Boone counties, with approval of their fiscal courts, shall each appoint
two members, which is an increase from their current appointment powers of one member each.
Additionally, the governor shall now appoint four members, rather than three.
HB 605
Government Resources Grant Program
Sponsor: Representative Josh Bray (R-Mount Vernon)
HB 605 amends several statutes in KRS Chapter 154.14 relating to the Government
Resources Accelerating Needed Transformation (GRANT) Program established under the
Cabinet for Economic Development as a state-level initiative designed to help local communities
secure and match federal grants for eligible projects. Eligible projects are projects that meet
the requirements for a federal grant offered or administered by a qualifying federal entity that
requires a local match. The bill expands the definition of eligible grant applicant to include, in
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addition to a city or county governing body or a nonprofit charitable organization, any entity
organized in Kentucky providing public services through law enforcement, fire, emergency
medical, rescue, waterfront development, or a water utility or wastewater facility for persons
domiciled in Kentucky. Local match is determined based on the county population ranking
based on population density and growth as provided in KRS Chapter 154.14-050. Up to 80% of
matching funds allocated shall be used for match awards to city or county governing bodies.
To participate in the GRANT program, eligible grant applicants shall submit either a
standardized or a regional grant application to the Cabinet for Economic Development. The
cabinet shall review applications monthly and provide a preliminary evaluation within 14 calendar
days of the first day of the month. The program includes a comprehensive scoring system to
prioritize projects and provisions for awards of amounts deposited into the fund and transfer
of any funds remaining in one of two categories of matching funds. As part of the preliminary
evaluation, the cabinet shall consider the applicant’s eligibility and the application completeness
when evaluated against the requirements of the federal grant. The cabinet shall provide a final
decision on the application in the last day of the month in which it was reviewed, with feedback
about possible corrective action in the event of denial, in which case the applicant can resubmit
after taking the recommended action.
ECONOMIC DEVELOPMENT
The GRANT program shall sunset on Dec. 31, 2026, unless authorized by the General
Assembly to continue its work for a specified period of time. Whereas the GRANT program
is available for a limited time period and administrative efficiency requires that funding be
allocated immediately, an emergency is declared to exist, and this act takes effect upon its
passage and approval by the governor or upon its otherwise becoming a law.
HB 606
HB 605 became law on March 24, 2025, when signed by the governor.
Regional Economic Development Projects
Sponsor: Representative Wade Williams (R- Earlington)
HB 606 creates a new section of KRS Chapter 65 to allow two or more local governments
constituting a multicounty region to join together by entering into an interlocal agreement
under KRS 65.210 to 65.300 to develop real estate as part of a regional economic development
project. The interlocal agreement shall specify the investment dollars contributed to the regional
economic development project by each local government, the use of those investment dollars
for the project, and the provision of services provided by each local government. “Multicounty
region” means multiple counties, multiple cities not located in the same county, or a combination
of counties and cities with at least two local governments from different counties.
A regional economic development project shall consist of 300 or more contiguous acres
located in the jurisdiction of a local government that is a party to the interlocal agreement and
result in the creation of at least 500 new jobs.
The territory that will be used in a regional economic development project may be
organized into a taxing district for the purpose of levying taxes to provide for the establishment,
operation, and maintenance of governmental services for the district and pay debt service on
bonds issued to finance the cost of building infrastructure in the district. A taxing district shall
comply with KRS 65.182 to 65.190, including the petition requirements, but not the percentage of
registered voter signature requirements under KRS 65.182(1)(a). The territory located within the
district shall not be subject to annexation without the consent of the governing bodies of all of
the local governments that are a party to the interlocal agreement.
Once created, the district shall constitute a taxing district within the meaning of Section
157 of the Constitution of Kentucky and authorize to levy a special ad valorem tax on property
located within the jurisdictional boundaries of the district. The tax rate shall not exceed $0.10 per
$100 of the assessed value of the property. The tax shall be in addition to all other ad valorem
KLC UPDATE

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taxes and administered and collected in the same manner as the county ad valorem taxes,
except the revenues shall be turned over to the district board.
In addition to the special ad valorem tax, the governing body of a local government in
which the district is located may, with agreement of the governing bodies of all of the local
governments that are a party to the interlocal agreement, impose and collect an occupational
license fee on businesses, trades, professions, or occupations performed, rendered, or conducted
within the district, at a percentage rate not to exceed 3% of: 1) salaries, wages, commissions,
and other compensation earned by persons within the district for work done and services
performed, rendered, or conducted within the district; 2) the net profits of self-employed
individuals, partnerships, professional associations, or joint ventures resulting from businesses,
trades, professions, occupations, or activities conducted in the district; and 3) the net profits of
corporations resulting from businesses, trades, professions, occupations, or activities conducted
in the district.
Once an occupational license fee is imposed, the rate shall never increase and shall be
the only occupational license fee imposed on businesses, trades, professions, or occupations
performed, rendered, or conducted within the district, except for an occupational license fee
imposed under KRS Chapter 160 for school districts. An occupational license fee imposed shall
expire 20 years after the year of imposition. After the occupational license fee has expired, an
additional occupational license fee shall not be imposed by the district.
Each local government that is a party to the interlocal agreement shall receive a portion
of the revenues collected from the occupational license fee as specified by the agreement. The
revenues may be deposited into the general fund of the local government to be used to provide
for the establishment, operation, and maintenance of governmental services for the district and
pay debt service on bonds issued to finance the cost of building infrastructure in the district.
A board shall be established to control and manage the affairs of the district. The board
shall: 1) represent a multicounty region; 2) comply with the provisions of KRS Chapter 65A
relating to special purpose governmental entities; 3) agree, in writing, to the use or distribution
of the revenue generated from the special ad valorem tax levied; and 4) agree, in writing, to the
collection and distribution of the revenue generated from the occupational license fee imposed.
The board shall operate in accordance with the following: 1) the board membership
shall consist of at least one trustee from each local government that is a party to the interlocal
agreement; 2) the trustees shall serve staggered terms of four years; 3) the chair of the board
shall be elected by the trustees from among its membership; 4) the board may appoint a
secretary, an executive director, and other officials and employees who need not be members
of the board; and 5) vacancies of the board shall be filled in the same manner as the original
appointments.
ECONOMIC DEVELOPMENT
The board shall additionally provide an annual report by August 1 of each year to
the Department for Local Government containing: 1) a description of the regional economic
development project, including the location, specific boundaries, and the total number of acres;
2) a description of each business located in the district; 3) the total number of jobs created by
the regional economic development project; 4) the total number of people employed within the
boundaries of the district; 5) the name of each local government that is a party to the interlocal
agreement; 6) the total amount of money contributed by each local government for the regional
economic development project and a description of how the money was used; 7) the rate of
a special ad valorem tax levied, the total revenues collected from the tax for each year, and
a breakdown of how the revenues were used; and 8) the rate of an occupational license fee
imposed, the total revenues collected from the fee for each year, and a breakdown of how the
revenues were used.
No later than Oct. 1 of each year, the Department for Local Government shall compile the
information reported and provide the compiled information to the Interim Joint Committee on
Appropriations and Revenue.
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HB 775
Sales Tax Incentives for Qualifying Entertainment Events
Sponsor: Representative Jason Nemes (R-Middletown)
HB 775 creates a new section of KRS Chapter 139 relating to sales and use taxes to
permit a sponsoring entity and facility operator to be granted a sales tax incentive equal to 50%
of the Kentucky sales tax generated by the sale of admissions to a qualifying attraction held
at a qualifying venue, and the sale of tangible personal property and services related to the
qualifying attraction, including but not limited to the sale of food and beverage concessions,
souvenirs, camping, and parking.
The amount of the sales tax incentive shall be allocated as follows: 1) 50% to the facility
operator to support operations and maintenance at the venue; and 2) 50% to the sponsoring
entity of the qualifying attraction from which the sales taxes were generated. Only one
incentive request shall be made for each qualifying attraction each year. The facility operator
and sponsoring entity shall have no obligation to refund or otherwise return any amount of the
sales tax incentive to the persons from whom the sales tax was collected. The incentive shall be
reduced by the vendor compensation allowed under KRS 139.570. Interest shall not be allowed
or paid on any sales tax incentive payment made. These provisions are notwithstanding KRS
134.580 and 139.770.
ECONOMIC DEVELOPMENT
“Venue” means: 1) public property located in a consolidated local government or
an urban-county government that is owned, operated, or controlled by the consolidated
local government, urban-county government, or the commonwealth; 2) a park located in a
consolidated local government that is open to the general public and owned, operated, or
controlled by any nonprofit corporation established under KRS 273.161 to 273.390; 3) property
located in a consolidated local government or an urban county government that is owned,
operated, or controlled by a public university; or 4) privately owned property located in a
consolidated local government or an urban-county government that is suitable for hosting
entertainment events and qualifying attractions.
“Qualifying attraction” means a series of entertainment events: 1) held at a venue over
a duration of at least two consecutive days; 2) hosted by a sponsoring entity pursuant to an
agreement with a facility operator that authorizes the sponsoring entity to conduct one or more
series of entertainment events annually during at least five consecutive years from which sales
taxes eligible for rebate are generated; and 3) open to the public upon purchase of tickets, with
attendance totaling at least 60,000 admissions over the duration of each series of entertainment
events.
The department shall accept initial applications for sales tax incentives for qualifying
attractions held on or after July 1, 2025. Eligibility depends on an initial, timely filed application
including sufficient information about the qualifying attraction. After approval of its initial
application and the completion of the qualifying attraction, a sponsoring entity shall apply for
a sales tax rebate with supporting documentation. Both the initial application and the sales tax
incentive application shall be in the form prescribed by the Department of Revenue through the
promulgation of an administrative regulation.
Prior to Nov. 1, 2026, and continuing each Nov. 1 thereafter to Nov. 1, 2035, the
Department of Revenue shall provide an annual report detailing information related to each
qualifying attraction receiving incentives during the fiscal year concluding on June 30 of the
reporting period. The sales tax incentive for entertainment events shall expire on June 30, 2035.
KLC UPDATE

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SB 1
Kentucky Film Office
Sponsor: Senator Phillip Wheeler (R-Pikeville)
SB 1 creates new sections of subchapter 12 of KRS Chapter 154 to establish the Kentucky
Film Office and the administratively attached Kentucky Film Leadership Council within the
Cabinet for Economic Development. The Film Office shall coordinate with the Kentucky Film
Leadership Council to develop marketing strategies to promote and grow the film production
industry in Kentucky.
The Kentucky Film Office shall be headed by an executive director. Duties of the office
shall include but not be limited to: 1) coordinating with local and regional film offices or local
tourism commissions on issues impacting the film industry in Kentucky, including streamlining
local permitting processes; 2) marketing Kentucky as a location for film production; 3)
assisting production companies to comply with Subchapter 61 of KRS Chapter 154; 4) assisting
film studios and workforce training programs to increase the film production workforce; 5)
coordinating with the Kentucky Film Leadership Council to develop marketing strategies to
promote and grow the film production industry in Kentucky; 6) creating a Kentucky Film Office
website and a one-stop portal to provide information to film producers regarding studios, local
and regional commissions, personnel, filming locations, permitting, and other matters relevant to
the film industry; and 7) adopting recommendations of the council and promulgating regulations
under KRS Chapter 13A for office operations.
The Film Leadership Council shall consist of seven voting members including the
secretaries of the Economic Development Cabinet, Tourism, Arts and Heritage Cabinet, and the
Education and Labor Cabinet, and four members appointed by the g
overnor with knowledge of or experience in the Kentucky film industry as follows: 1) two
representatives from Kentucky film production companies; 2) one representative from a film
profession, including but not limited to producers, actors, production accountants with film
industry experience, or film financiers; and 3) one representative who is the head of a local or
regional film commission.
The functions and purposes of the Leadership Council shall be to: 1) review all
applications for tax incentives to determine initial eligibility within 20 days of receipt; after
further review, the cabinet shall be responsible for negotiating, preparing, and executing any
tax incentive agreements; 2) recommend policies and standards for the Kentucky Film Office;
3) Develop comprehensive film industry strategies in partnership with the Cabinet for Economic
Development, Tourism, Arts and Heritage Cabinet, and the Education and Labor Cabinet; 4)
partner with local and regional film commissions, production studios, and relevant workforce
training programs in Kentucky; and 5) conduct a nationwide search for the executive director of
the Kentucky Film Office and make decisions regarding hiring and compensation.
ECONOMIC DEVELOPMENT
Effective July 1, 2026.
Senate Bill 1
Kentucky Film
Office
KLC.ORG

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HB 684
Election Petitions
Sponsor: Representative Jennifer Decker (R-Waddy)
HB 684 amends KRS 118.125 to require that the two voters signing a candidate’s
notification and declaration be of the same party and from the same district or jurisdiction
as the candidate at the time of signing. The notification and declaration oath for a candidate
must include the candidate’s date of birth. KRS 118.315 is amended so that a petitioner for the
nomination of a candidate may be counted for every petition they sign, and they may sign
for more than one nominating form for the same office. KRS 118.165 is amended so that all
nomination papers must be filed no later than 4 p.m. local time at the place of filing on the last
date on which the papers may be filed.
House Bill 684
Sponsor
Representative
Jennifer Decker
(R-Waddy)
Courtesy LRC
ELECTION PETITIONS
KLC UPDATE

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HB 152
Public Ground Ambulance Provider Program
Sponsor: Representative Michael Meredith (R–Oakland)
HB 152 creates a new section of KRS Chapter 205 to establish a Medicaid supplemental
payment program specifically for public ground ambulance providers. The bill defines a “public
ground ambulance provider” as an ambulance service licensed by the Kentucky Board of
Emergency Medical Services and owned or operated by a local government or special district,
other than a local rescue squad district under KRS Chapter 39F. The Kentucky Department for
Medicaid Services is required to submit a Medicaid preprint (a formal request) with a Jan. 1,
2026, effective date to the Centers for Medicare and Medicaid Services seeking authorization to
establish and administer a supplemental payment program to provide state-directed Medicaid
managed care payments to eligible public ground ambulance providers.
If approved by the Centers for Medicare and Medicaid Services, the department must
create a payment program that calculates reimbursement payment rates based on average
cost per transport. To be eligible to receive state-directed payments, ambulance providers must
hold a valid Medicaid provider agreement, submit an annual cost report in accordance with
administrative regulations promulgated by the department, and provide emergency medical
transportation services to Medicaid beneficiaries.
The state match funds required for the supplemental payment program for public ground
ambulance providers shall: 1) be provided by public ground ambulance providers participating in
the supplemental payment program via intergovernmental transfers or similar government fund
transfers; and 2) include a total of $200,000 annually that shall be retained by the department
to offset administrative expenses related to the supplemental payment program for public
ground ambulance providers. Each participating public ground ambulance provider shall be
responsible for a percentage of the administrative fee. Participating public ground ambulance
providers shall identify, utilize, and identify as a continued source of funding, a source of funding
for the intergovernmental fund transfers that is separate from the assessment authorized under
KRS 205.6406, not from the state general fund, and in compliance with the requirements of
Centers for Medicare and Medicaid Services.
EMERGENCY SERVICES
House Bill 152
Public Ground
Ambulance
Provider Program
KLC.ORG

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HB 305
Health Care
Sponsor: Representative Ken Fleming (R-Louisville)
HB 305 permits hospital-owned ambulance services to operate through managed
services agreements without requiring a certificate of need. The bill also removes an existing
sunset provision that would have ended an exemption for local governments to provide
emergency transport services without obtaining a certificate of need. Additionally, HB 305
amends KRS 311A.030 to prohibit administrative regulations from setting a time limit for when
an ambulance service must apply for licensure after receiving a certificate of need. The Board of
Emergency Medical Services is authorized to require reports related to the licensure application
process by administrative regulation. The bill also clarifies that any ambulance service issued a
certificate of need on or after July 14, 2022, does not need to obtain a new certificate of need to
apply for licensure.
SB 27
Nonemergency Medical Transport (NEMT)
Sponsor: Senator Brandon Storm (R-London)
EMERGENCY SERVICES
SB 27 creates a new section of KRS Chapter 311A to allow a skilled nursing facility or
hospital that operates a nonemergency medical transportation (NEMT) service to transport
its residents or patients, including transportation by stretcher, if the contracted transportation
broker is first given the opportunity to provide the service and declines or is unable to do so.
The bill prohibits Medicaid from reimbursing any expenses for transportation services provided
directly by the facility or hospital under this exemption. However, it clarifies that nothing in the
bill prevents a skilled nursing facility or hospital from becoming a contracted nonemergency
medical transportation provider if they meet applicable requirements.
SB 129
Emergency Response Fee
Sponsor: Senator Julie Raque Adams (R-Louisville)
SB 129 amends KRS 65.111 to prohibit a local government, special district, or other
provider of any emergency response service to submit a demand for payment or require a
landlord to pay any emergency response fee if the emergency response: 1) arises out of the
actions of a residential tenant or his or her guest; and 2) was not the result of any failure by the
landlord to maintain a building in compliance with applicable housing, building, plumbing, fire,
health, or nuisance code requirements.
Nothing shall prevent a local government, special district, or other provider of any
emergency response service from submitting a demand for payment of an emergency response
fee from a responsible party.
Senate Bill 129
Sponsor
Senator Julie
Raque Adams
(R-Louisville)
Courtesy LRC
KLC UPDATE

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SB 237
Telecommunicator Training
Sponsor: Senator Jason Howell (R-Murray)
SB 237, a KLC initiative, amends several provisions in KRS Chapter 15 pertaining to
telecommunicators and telecommunicator training.
KRS 15.552 and KRS 15.560 pertain to telecommunicators who function as a public
safety dispatcher, 911 telecommunicator, or 911 call taker. KRS 15.552 is amended to remove the
hiring date restriction and require all part-time telecommunicators to successfully complete the
40-hour online course, “Telecommunicator Overview Training” approved by the Kentucky Law
Enforcement Council. A part-time telecommunicator who successfully completes the 40-hour
telecommunicator overview training course and moves to a full-time telecommunicator position
shall be credited 40 hours toward the training requirements of the full-time public safety
telecommunicator academy.
KRS 15.560 is amended to require all part-time public safety telecommunicators not
previously certified as a telecommunicator by the Kentucky Law Enforcement Council to
complete telecommunicator overview training within 12 months from the date of hire.
SB 237 takes effect on June 27, 2025, except for Sections 2 and 3, which establish basic
and continuing training requirements for public safety telecommunicators. These sections are
delayed until July 1, 2026, to allow for implementation. However, under Section 4, part-time
telecommunicators hired on or after June 27, 2025, must complete a 40-hour online training
within 12 months of their hire date.
Senate Bill 237
Sponsor
Senator
Jason Howell
(R-Murray)
Courtesey LRC
EMERGENCY SERVICES
KLC.ORG

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SB 64
Key Infrastructure Assets
Sponsor: Senator Brandon Storm (R-London)
SB 64 amends KRS 511.100 by expanding the definition of a key infrastructure assets to
include: 1) a facility, equipment, or communication line used in the delivery of cable television,
telephone, or broadband service; and 2) electrical highway infrastructure.
The bill was filed to address an increase in copper theft that particularly impacts
communication infrastructure containing copper wiring such as cable, telephone, and broadband
services that can lead to disruptions in service. The bill also includes electrical highway
infrastructure as a key infrastructure asset such as an electric vehicle charging station.
KRS 512.020 is amended to broaden the offense of criminal mischief in the first degree
to include a person who intentionally or wantonly damages or possesses a key infrastructure
asset in a manner that renders the asset inoperable, in whole or in part, or renders the operation
of the asset harmful or dangerous. Criminal mischief in the first degree is a Class D felony.
An emergency is declared. SB 64 became law on March 19, 2025, when signed by the
governor.
SB 179
Nuclear Energy Development
ENERGY & UTILITIES
Sponsor: Senator Danny Carroll (R-Paducah)
SB 179 creates a new section of KRS Chapter 164 to require the Kentucky Nuclear
Energy Development Authority to establish the Nuclear Energy Development Grant Program
for the advancement and location of nuclear energy-related projects to support the entire
nuclear energy ecosystem in the commonwealth, including utility and private sector economic
development activities. The Kentucky League of Cities shall appoint two members to the
advisory board, as designated by its executive director. One appointee shall be a representative
of municipal utilities, and the other shall be a mayor of a city located within an “energy
community” as defined by the Inflation Reduction Act of 2022.
The nuclear energy ecosystem includes many processes, including, but not limited to,
the nuclear fuel cycle, which includes fuel conversion, enrichment, and fabrication, as well
as potential future spent fuel recycling and reprocessing; reactor design and component
manufacturing; component supply chain manufacturing and distribution; facility siting and
development; radioisotope production; facility operation and maintenance; decommissioning
waste storage, transport, and management; and end uses of nuclear energy and co-products.
The membership of the Kentucky Nuclear Energy Development Authority shall select
five of its voting members to serve on a nuclear energy development grant administration
subcommittee. The subcommittee shall: 1) create grant applications; 2) establish grant applicant
eligibility requirements; 3) establish objective scoring criteria to evaluate grant applications,
including but not limited to: a) the likelihood that the proposed project funded by the grant will
precipitate further investment in the nuclear energy ecosystem; b) the economic impact of the
grant funding on the community and region where the proposed project will be located; c) the
readiness of the community where the proposed project will be located to host nuclear-related
investments; and d) the amount of additional investment that would be made in the proposed
project by the grant applicant and other sources; 4) make determinations on grant eligibility and
funding; and 5) make grant awards based on those determinations, not to exceed $2 million per
individual grant.
KLC UPDATE

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KRS 164.2802 is amended to require the director of the Kentucky Nuclear Energy
Development Authority to publicize and encourage applications to the Nuclear Energy
Development Grant Program.
A section of the 2024 Kentucky Acts is amended to permit $8 million of the $20 million
made available in each fiscal year to the University of Kentucky budget unit to be invested as a
quasi-endowment by the University to be used in fiscal year 2025-2026 to support the Nuclear
Energy Development Grant Program.
An emergency is declared. SB 179 became law on March 24, 2025, when signed by the
governor.
Senate Bill 179
Nuclear Energy
Development
ENERGY & UTILITIES
KLC.ORG

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HB 137
Air Quality Monitoring
Sponsor: Representative Jim Gooch, Jr. (R-Providence)
HB 137 amends KRS 77.155 and KRS 224.20-110 to provide that, for purposes of
determining compliance with the requirements established by an air pollution control board,
the Energy and Environment Cabinet, or the federal Clean Air Act, any enforcement actions
alleging violations or noncompliance must be based on a data collection method, emissions
test, or monitoring method that is approved or promulgated by the United States Environmental
Protection Agency, or a monitoring method or test that produces scientifically defensible,
quality-assured data that is accepted by the EPA.
Any data collected using a method not meeting these requirements is inadmissible and
cannot be considered in any enforcement proceedings initiated by the air pollution control
board, an air pollution officer, or a private citizen. Exemptions in KRS 77.155 are amended to
specifically not apply to the standard for data collection.
SB 89
Environmental Protection – Waters of the Commonwealth
Sponsor: Senator Scott Madon (R-Pineville)
ENVIRONMENTAL PROTECTION
For purposes of general definitions under KRS 224.1-010 in relevant sections
governing environmental protection, SB 89 amends the definition of “water” or “waters of
the commonwealth” to include navigable waters, sinkholes with open throat drains, naturally
occurring artesian or phreatic springs, any other domestic water supply spring water, and
wellhead protection areas that are wholly or partly in, or bordering, Kentucky or within
Kentucky’s jurisdiction. The definition of “navigable waters” is aligned with the federal definition
as outlined in the Clean Water Act.
The definitions under KRS 350.010, relating to surface coal mining, are amended to
include “long-term treatment,” defined as any active or passive water treatment necessary
to meet water quality effluent standards at the time the Energy and Environment Cabinet
determines that a permittee has completed backfilling, regrading, topsoil replacement, and
drainage control—including soil preparation, seeding, and mulching—under an approved
reclamation plan, and has submitted a report to the Energy and Environment Cabinet for the
area.
Under KRS 350.060, which governs permitting requirements, SB 89 adds a provision
mandating that for any permit or permit increment identified as requiring long-term treatment,
the cabinet shall calculate an additional bond or other financial assurance amount. This amount
must be based on the estimated annual treatment cost provided by the permittee and verified
by the cabinet, multiplied by a factor of 25, plus any capital cost of the treatment system. If the
cabinet is unable to verify the permittee’s estimate, it shall instead use its own estimate of annual
treatment costs.
An emergency is declared. SB 89 became law on March 27, 2025, following an override of
the governor’s veto.
Senate Bill 89
Sponsor
Senator
Scott Madon
(R-Pineville)
KLC UPDATE

25
HB 131
Firefighters’ Work Schedules
Sponsor: Representative Michael Meredith (R-Oakland)
HB 131, a KLC initiative, amends KRS 95.500 to permit, but not require, an alternate
staffing schedule for fire personnel operating under KRS Chapter 95 in urban-county
governments and cities formerly of the second class. Currently, fire personnel in a platoon shall
be on duty for 24 consecutive hours, after which the platoon serving 24 hours shall be allowed
to remain off duty for 48 consecutive hours. Unless otherwise provided in a collective bargaining
agreement, the alternate staffing schedule permits: 1) fire personnel in a platoon to be on duty
for 48 consecutive hours, after which the platoon serving 48 hours shall be allowed to remain
off duty for 96 consecutive hours; or 2) be on duty for 24 consecutive hours, after which the
platoon serving 24 hours shall be allowed to remain off duty for 72 hours, after which that
platoon shall be on duty again for 48 hours, then shall be allowed to remain off duty again for 72
hours (also known as a 1-3-2-3 schedule), except in cases of dire emergency.
Any city or urban-county government that maintains a collective bargaining agreement
with members of its fire department may reach an agreement with the bargaining unit to
establish an alternate staffing and scheduling plan for the operation of its fire department.
House Bill 131
Sponsor
Representative
Michael Meredith
(R-Oakland)
Courtesy LRC
FIREFIGHTERS
KLC.ORG

26
SB 25
Appeals from Final Orders of Fire Officials
Sponsor: Senator Robby Mills (R-Henderson)
SB 25 amends existing sections under KRS Chapter 227 and creates a new section of KRS
227.200 to 227.400 relating to fire prevention and protection to allow for the creation of local
appeals boards to hear appeals from final orders of fire chiefs and deputy state fire marshals.
KRS 227.200 is amended to add definitions of “local government,” and “local legislative
body,” as used in KRS 227.200 to 227.400, which include cities, counties, urban-county
governments, consolidated local governments, charter county governments, and unified local
governments and their respective chief legislative bodies.
The mayor or county judge/executive of a local government enforcing the fire prevention
and protection codes may, upon approval of the local legislative body, appoint a local
appeals board. The local appeals board shall consist of five technically qualified persons with
professional experience related to the fire prevention and construction industry to hear appeals
from orders of the local fire chief or designee or any deputy or assistant of the state fire marshal
acting in the state fire marshal’s name and his or her delegated authority. Three of the five
members shall not be employed by the local government. A fire chief or an employee of a local
fire prevention or fire department shall not sit on a local appeals board if the board is hearing
an appeal to a decision rendered by his or her department. Additionally, any member of a local
appeals board shall not hear an appeal in a case in which he or she has a private interest.
FIREFIGHTERS
Any party to a decision by the local fire chief or designee or any deputy or assistant of
the state fire marshal acting in the name of the state fire marshal may appeal a decision of the
local fire chief or the office of the state fire marshal to the local appeals board. An appeal may
be made to the state fire marshal if no local appeals board has been established. In no case shall
the state fire marshal hear an appeal when there is a local appeals board with jurisdiction. The
local appeals board shall: 1) convene a hearing to consider the appeal within 15 days of receipt
of an appeal from a qualified party; 2) notify all parties of the time and place of the hearing by
certified mail no later than 10 days prior to the date of the hearing; and 3) render a decision
within five working days after the hearing.
An appeal shall include 1) citations of the provisions of the fire prevention and protection
codes that are at issue; and 2) an explanation of why the decision is being contested. The local
appeals board shall uphold, amend, or reverse the decision of the fire chief or designee or any
deputy or assistant of the state fire marshal on each infraction being appealed.
An appeal to the state fire marshal when no local appeals board has been established
shall be in accordance with KRS 227.335. An appeal of a local appeals board’s final order, or of
the state fire marshal’s final order in cases where no local appeals board has jurisdiction, shall be
to the circuit court with jurisdiction.
An emergency is declared. This provision went into effect on March 28, 2025.
KLC UPDATE

27
HB 160
Manufactured Housing
Sponsor: Representative Susan Witten (R-Louisville)
HB 160 amends KRS 100.348 to express recognition that the protection of property
values is a legitimate issue to local governments and the enactment of regulations designed to
protect property values is a proper exercise of local government legislative power. At the same
time, the Kentucky General Assembly also recognizes and affirms that while local governments
have legitimate authority to enact reasonable zoning regulations, the provision of quality,
affordable housing through qualified manufactured homes serves an essential public purpose.
The definition of “qualified manufactured home” in KRS 100.348 is amended to mean
a manufactured home that meets all of the following criteria: 1) is manufactured on a date not
to exceed five years prior to the date of installation and has all parts that operate only during
transport removed; 2) is affixed to a permanent foundation, connected to the appropriate
facilities, and installed in compliance with KRS 227.570 relating to installation standards and
requirements for manufactured homes; 3) has a width of at least 20 feet at its smallest width
measurement or is two stories in height and oriented on the lot or parcel so that its main
entrance door faces the street; and 4) has a minimum total living area of 900 square feet.
A local government shall not adopt or enforce any zoning regulation, ordinance, or
other requirement that: 1) excludes qualified manufactured homes from any residential zone
where single-family residences are permitted; 2) discriminates against qualified manufactured
homes; or 3) imposes foundation requirements on manufactured homes that conflict with the
structural engineering of the homes, conflict with KRS 227.570, or require more than one type of
permanent foundation system.
Any architectural compatibility standards applied to qualified manufactured homes
must be equivalent to, and not more stringent than, those standards applied to other singlefamily
residential structures in the same zone. Current compatibility standards adopted by a
local government are amended to be limited to the following architectural features that have an
impact on the overall assessed value of the structure: 1) roof pitch; 2) square footage of livable
space; 3) type and quality of exterior finishing materials; 4) foundation skirting; 5) existence and
type of attached structures; and 6) setback restrictions, lot dimensions, and orientation of the
home on the lot, so long as they are no stricter than those for site-built homes within the same
zone.
HOUSING
House Bill 160
Manufactured
Housing
KLC.ORG

28
A manufactured home that does not meet the minimum width of 20 feet or minimum total
living area of 900 square feet needed to be considered a qualified manufactured home may be
treated as a qualified manufactured home if the setback requirements or lot dimensions would
not reasonably accommodate a home meeting these minimum dimensions; the home is the
maximum width and square footage that could reasonably fit on the lot while complying with all
applicable setback requirements and other zoning regulations; and the home otherwise meets all
other requirements of a qualified manufactured home.
Any zoning regulation, ordinance, or requirement that violates the act is void and
unenforceable.
Cities located in a county containing a consolidated local government that do not have
the authority to adopt zoning regulations as set out in KRS 100.137(3), may enact compatibility
standards consistent with the provisions of HB 160 in lieu of standards adopted by the
consolidated local government.
Effective July 1, 2026.
SB 25
Revenue Bonds for Qualified Housing Development
Sponsor: Senator Robby Mills (R-Henderson)
HOUSING
SB 25 amends KRS 103.200 relating to the issuance of industrial revenue bonds for city
or county projects to broaden the definition of “building” to include new construction that would
result in an increase of 48 units or more to the stock of residential multifamily housing units,
thus qualifying such projects for issuance of industrial revenue bonds for use in financing new
housing construction.
An emergency is declared. This provision went into effect on March 28, 2025.
SB 129
Metro Tax Delinquency Diversion Program
Sponsor: Senator Julie Raque Adams (R-Louisville)
SB 129 amends KRS 99.727 to expand an established tax delinquency diversion program
created by the legislative body in a consolidated local government to address vacant and
abandoned residential properties by diverting certificates of delinquency issued for nonpayment
of property taxes for identified properties selected for the program, with the county attorney
playing a role in protecting the properties. The reason for the program is to hold areas with
numerous vacant and abandoned properties for eventual redevelopment in a coordinated
fashion.
“Vacant and abandoned property” means a residential property that has been
continuously vacant for at least one year with repeated housing, building, or nuisance code
violations. A certificate of delinquency represents a lien against real property when property
taxes are not paid which can be sold to a third-party purchaser for the amount of delinquent
property taxes, penalties, and accrued interest. “Third-party purchaser” means a purchaser of a
certificate of delinquency.
The previously established tax delinquency diversion program requires the legislative
body of the consolidated local government to appoint a commission to identify and certify
priority project areas for inclusion in the previously established tax delinquency diversion
program which are then submitted to the legislative body for consideration and approval.
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The expanded tax delinquency diversion program established by SB 129 permits
purchase of a certificate of delinquency related to vacant and abandoned property which has
been placed in a tax delinquency diversion program after 90 days from the creation of the
certificate of delinquency. A diverted tax delinquency purchaser who is interested in purchasing
a certificate of delinquency for a vacant and abandoned property shall send a notification to the
county attorney requesting that the certificate of delinquency be made available for purchase.
To qualify as a diverted tax delinquency purchaser, the third-party purchaser must
register with the Department of Revenue and be either: 1) a political subdivision of the
commonwealth created by the governing body of a consolidated local government; 2) a
state or local agency, board, or commission created by the governing body of a consolidated
local government or operating within the boundaries of a consolidated local government; 3) a
quasi-governmental entity created by the governing body of a consolidated local government
or operating within the boundaries of a consolidated local government; or 4) a nonprofit
organization that has been registered with the Kentucky Secretary of State for a minimum of
five years; has a principal place of business in Kentucky; includes affordable housing in its stated
purpose; and is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code.
The Department of Revenue shall: 1) maintain a list of applicants issued a certificate of
registration; 2) promulgate administrative regulations to establish a process for the purchase
and sale of certificates of delinquency related to property placed in a tax delinquency diversion
program; and 3) decline to issue a certificate of registration to any applicant who does not
qualify as a diverted tax delinquent purchaser.
Within 30 days of receipt of the notification that a diverted tax delinquency purchaser is
interested in purchasing a certificate of delinquency for a vacant and abandoned property, the
county attorney shall: 1) verify with the commission that the property is vacant and abandoned;
2) remove the certificate of delinquency from the protected list; and 3) notify the county clerk
and all other diverted tax delinquency purchasers that the certificate of delinquency is available
for purchase. When all requirements are met, the county clerk shall conduct a sale of the
certificate of delinquency to a diverted tax delinquency purchaser.
HOUSING
House Bill 129
Metro Tax
Delinquency
Diversion
Program
KLC.ORG

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HB 27
Planned Communities
Sponsor: Representative David Osborne (R-Prospect)
Current law under KRS 381.800 governing display of political yard signs provides that
the governing documents of an association cannot prohibit the outdoor display of political yard
signs by an owner or resident on the owner or resident’s property. Signs can be displayed no
earlier than 30 days before an election and no later than seven days after the election, unless
a longer time period is provided by local ordinance. However, the governing documents can
include reasonable rules and regulations as to placement, size, and manner of display.
HB 27 adds a provision extending this section to all planned communities and voiding any
existing governing documents of a planned community that contravene these provisions.
PLANNED COMMUNITIES
House Bill 27
Sponsor
Speaker David
Osborne
(R-Prospect)
Courtesy LRC
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HB 10
Unlawful Occupation of Real Property
Sponsor: Representative Marianne Proctor (R-Union)
HB 10 creates a new section of KRS Chapter 383 relating to real property to permit
a property owner or his or her authorized agent to request a law enforcement officer to
immediately remove a person or persons unlawfully occupying a residential dwelling or other
structure on the real property, instead of filing a complaint for removal by forcible detainer with
the district court, if: 1) an unauthorized person or persons have unlawfully entered and remain
on the property; 2) the real property was not open to members of the public at the time the
unauthorized person or persons entered; 3) the property owner has directed the unauthorized
person to leave the property; 4) the unauthorized person or persons are not current or holdover
tenants pursuant to a written or oral rental agreement authorized by the property owner; 5) the
unauthorized person or persons are not immediate family members of the property owner; and
6) there is no pending litigation related to the real property between the property owner and
any known unauthorized person.
The request for immediate removal of an unlawful occupant of a residential dwelling
or other structure (also referred to as a “squatter,” defined under KRS 512.010 as amended by
HB 10) shall be made by presenting a completed and notarized Petition to Remove Persons
Unlawfully Occupying Residential Real Property to a law enforcement officer substantially in the
form as presented in the act.
Upon receipt of a petition, the law enforcement officer shall verify that the person
submitting the petition is the record owner of the real property or the authorized agent of the
owner and appears otherwise entitled to relief.
If ownership is verified, the law enforcement officer shall, without unnecessary delay,
serve a notice to immediately vacate the property on all of the unlawful occupants and put
the owner in possession of the real property. Sheriffs and constables may charge a $20 fee
for service of notice. A cause of action is created for a person harmed by wrongful removal
under this section and a prevailing plaintiff can be awarded costs and fees in addition to other
appropriate relief. A law enforcement officer or property owner acting in good faith shall be
immune from criminal and civil liability.
LAW ENFORCEMENT
HB 520
Open Records
Sponsor: Representative Chris Fugate (R-Chavies)
HB 520, a KLC initiative, amends KRS 61.878 to provide that records of law enforcement
agencies or agencies involved in administrative adjudication compiled in the process of
detecting and investigating statutory or regulatory violations shall be exempt from public
inspection if the disclosure of the information
could pose an articulable risk of harm to
the agency or its investigation by revealing
the identity of informants or witnesses not
otherwise known or by the premature release
of information to be used in a prospective law
enforcement action.
The bill was filed to address a case
decided by the Kentucky Supreme Court in
2024 relating to the application of the law
enforcement exception in the Kentucky Open
Records Act.
House Bill 520
Sponsor
Representative
Chris Fugate
(R-Chavies)
Courtesy LRC
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HB 234
Airport Police
Sponsor: Representative Wade Williams (R-Earlington)
HB 234 amends KRS 16.220 which requires confiscated firearms to be sold at public
auction by the Department of Kentucky State Police, with proceeds from sales of firearms to
be utilized by the Kentucky Office of Homeland Security to provide grants to local government
police departments, sheriff’s departments, and other specified entities for the purchase of body
armor and other equipment. The bill adds airport safety and security departments to the list of
agencies eligible to receive grant funds.
HB 369
Annual Leave Policy for Qualifying Police Departments
Sponsor: Representative Mark Hart (R-Falmouth)
HB 369, a KLC initiative, amends KRS 95.495, which currently provides annual leave of
15 working days with full pay for members of police departments in urban-county governments
and cities formerly of the second and third class. As amended, each member of the police
department shall be permitted to accrue an annual leave of 15 working days with full pay
each year, as specifically established in the personnel policy applicable to members of the
department.
LAW ENFORCEMENT
House Bill 369
Sponsor
Representative
Mark Hart
(R-Falmouth)
Courtesy LRC
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SB 237
Peace Officer Certification
Sponsor: Senator Jason Howell (R-Murray)
SB 237, a KLC initiative, amends KRS 15.382 relating to peace officer professional
standards certification requirements for passage of a physical agility test in the case of a person
who has previously been employed as a peace officer in another state. A person shall not be
required to pass a physical agility test for certification in Kentucky if the person can provide
certified documentation that at the time of his or her application to the employing agency, the
person: 1) is currently employed, or has been separated from service for less than three months
as a certified law enforcement officer in another state; 2) is currently in good standing, or
separated from service in good standing, with the other state or law enforcement agency where
he or she is certified; 3) has been continuously employed as a law enforcement officer in the
state where he or she is certified for at least 10 years prior to his or her application; and 4) has
passed a physical agility test as a condition of employment with the law enforcement agency in
the other state where he or she is certified.
Senate Bill 237
Sponsor
Senator Jason
Howell and
KLC Executive
Director/CEO
J.D. Chaney
LAW ENFORCEMENT
SB 237
School Resource Officers for Postsecondary Institutions
Sponsor: Senator Jason Howell (R-Murray)
KRS 164.952 provides that a postsecondary institution may employ individuals who have
retired from the Kentucky Employees Retirement System, the County Employees Retirement
System, or the State Police Retirement System, as police officers, subject to certain conditions of
eligibility and limitations as set forth by the statute. SB 237 amends these provisions to remove
the limitation on the number of retired police officers a postsecondary education can hire,
which was previously limited to five retired officers or 25% of police officers employed by the
postsecondary institution in calendar year 2018, whichever was greater.
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HB 555
Municipal Audits
Sponsor: Representative Chris Freeland (R-Benton)
HB 555, a KLC initiative, includes three amendments to KRS 91A.040. Two of the
amendments increase the thresholds for exception to the requirement that each city cause
each fund of the city to be audited annually by a certified public accountant or by the auditor
of public accounts. Currently, in lieu of the annual audit requirement, a city with a population
equal to or less than 1,000 persons may elect to have an audit performed every odd-numbered
fiscal year, rather than every year. The bill raises the population threshold for the audit exception
to cities with a population equal to or less than 3,000 persons, thus permitting cities with a
population equal to or less than 3,000 to elect to have an audit performed every odd-numbered
fiscal year rather than every year. Each city exempted in an odd-numbered fiscal year shall
instead prepare a financial statement.
LOCAL GOV ADMINISTRATION
The bill amends existing law to increase the revenue threshold under which a city may
be exempt from the requirement to conduct an annual audit of each city fund. Currently, a
city that receives and expends less than $150,000 from all sources in a fiscal year and has no
long-term debt is exempt from the audit requirement for that year. The bill raises this threshold
to $500,000, allowing cities with no long-term debt and annual receipts and expenditures below
that amount to forgo the audit. In addition to preparing and submitting financial statements,
cities that use this exemption for more than four consecutive years, must contract with an
auditor to complete an attestation engagement in lieu of the audit.
The statute is further amended to permit the Department for Local Government to
approve a request for an extension of the deadline for submission of municipal audit reports to
the department if, in the judgment of the department, the request is warranted. The department
may consider any evidence it deems appropriate, including but not limited to proof of the city’s
progress toward compliance, with extensions granted not to exceed 18 months, rather than the
current nine months.
House Bill 555
Sponsor
Representative
Chris Freeland
(R-Benton)
testifies with
KLC Executive
Director/CEO
J.D. Chaney
KLC UPDATE

35
Each city required to conduct an annual or biennial audit shall enter into a written
contract with an auditor, who shall be a certified public accountant or the auditor of public
accounts.
KRS 154.40-060 is amended to provide that a city government that appoints members
to the board of the Eastern Kentucky Exposition Center Corporation may, in lieu of having the
auditor of public accounts perform the annual audit, 1) make an irrevocable election upon written
notice to the auditor that it shall include the corporation within the city’s audit under KRS
91A.040 or 2) upon written notice to the auditor, a city government meeting the requirements
of 1) and the board may jointly elect to have its annual audit performed by an independent
auditor, to be generally conducted and conform to the requirements of KRS 91A.040. An audit
performed in either of these manners must be forwarded to the auditor of public accounts.
HB 555
Finance and Revenue of Cities
Sponsor: Representative Chris Freeland (R-Benton)
HB 555 amends KRS 91A.040 related to finance and revenue of cities, KRS 65.003
related to codes of ethics, and KRS 65.920 related to failure of local governments to comply
with statutory provisions to indicate that withholding of state funds from a municipality due to
noncompliance with statutory provisions shall not be interpreted or construed to permit the
state to withhold any nondiscretionary payments that are due to the city, county, or consolidated
local government for the provision of services by the city, county, or consolidated local
government to the state or any of its agencies, including for the use of utility services.
HB 662
Personally Identifiable Information
Sponsor: Representative John Blanton (R-Salyersville)
LOCAL GOV ADMINISTRATION
HB 662 creates a new section of KRS Chapter 61 governing open records to define
various terms as they apply to records held by government agencies containing personal
information of judicial officers. These include definitions of “covered person,” “disclose,”
“immediate family member,” “judicial officer,” “personally identifiable information,” and “written
request.”
HB 662 prohibits the disclosure of personally identifiable information of judicial officers
or their immediate family members by a government agency if one of these covered people
has made a written request not to disclose the information. Government agencies must remove
personally identifiable information of a judicial officer or their immediate family member from
publicly available content within 72 hours of receiving the request for removal. The government
agency is not to publicly post or release the information unless the covered person voluntarily
publishes it on the internet. The bill also establishes a civil cause of action for covered persons
seeking injunctive or declaratory relief to enforce this section.
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HB 321
Planning and Zoning Appeals
Sponsor: Representative DJ Johnson (R–Owensboro)
HB 321 amends KRS 100.347 to prohibit persons claiming to be injured or aggrieved
by any final action of a board of adjustment, planning commission, or the legislative body of a
local government in relation to a map amendment from appealing a final action unless they own
real property within the same zone where the property that is the subject of the final action is
located.
HB 321
Planning and Zoning Training
Sponsor: Representative DJ Johnson (R–Owensboro)
HB 321, a KLC initiative, repeals, reenacts, and amends KRS 147A.027 as a new section of
KRS Chapter 100 to revise some training requirements for planning commissioners and board of
adjustment members as well as for planning professionals employed by local governments.
PLANNING & ZONING
The time in which planning commissioners and board of adjustment members are
required to complete initial orientation training is revised to allow completion of the required
four hours within one year following appointment rather than within 120 days, with at least one
of the hours focused on the impact of planning and zoning policies and procedures on housing
supply and accessibility. Each planning commissioner and board of adjustment member must
additionally, within each period of four years from the date of his or her appointment, instead
of two years, attend at least eight hours of continuing education including at least one hour
focused on the impact of planning and zoning policies and procedures on housing supply and
accessibility.
Each planning professional, zoning administrator, administrative official, and each
planning professional’s deputies and assistants employed by a local government must attend
eight hours of orientation training within 120 days of employment including one hour focused on
the impact of planning and zoning policies and procedures on housing supply and accessibility.
Staff must additionally within each two-year period from the date of his or her employment
House Bill 321
Sponsor
Representative
DJ Johnson
(R-Owensboro)
and KLC Director
of Government
Affairs
Gracie Kelly
KLC UPDATE

37
attend at least 16 hours of continuing education including at least one hour on the impact of
planning and zoning policies and procedures on housing supply and accessibility.
All persons attending orientation training shall certify his or her attendance by a
written statement filed with the secretary of his or her planning commission within 30 days of
completion of orientation training.
All persons attending continuing education training shall certify his or her attendance by
a written statement filed with the secretary of his or her planning commission within 30 days of
completion of continuing education requirements.
SB 129
Density Development Project
Sponsor: Senator Julie Raque Adams (R-Louisville)
A new section of KRS Chapter 100 is created to require any density development project
that is proposed in a traditional single-family home zone in a county containing a consolidated
local government to be treated as if it were an amendment to the zoning map, and shall be
subject to the procedures set forth in KRS 100.211, 100.2111, 100.212, 100.213, and 100.214,
including approval by the legislative body, except a planning unit shall not use the alternative
regulation for a zoning map amendment under KRS 100.2111 when considering a density
development project.
“Density development project” is defined to mean any proposed residential development
project that contains multifamily housing and, if approved, would result in an increase in: 1) fire
department or emergency medical service response times for current residents in the vicinity of
the project; or 2) traffic and congestion on roads accessing the development that would reduce
the level of service on the most adjacent arterial, collector, or access road a full letter grade,
or reduce level of service below grade D on those roads. “Traditional single-family home zone”
means a zone that, as of Jan. 1, 2025, did not include multifamily homes as a permitted use.
A new section of KRS Chapter 383 is created to prohibit a property owner in a county
containing a consolidated local government to lease or allow to be occupied after the effective
date of this act any single-family home, multifamily housing unit, or accessory dwelling unit
located on a lot that contains a single-family home in a traditional single-family home zone,
unless the owner primarily resides in the single-family home or multifamily housing unit or an
accessory dwelling unit on the lot. The restriction does not apply to a lot that contains only one
single family home and does not contain an accessory dwelling unit.
PLANNING & ZONING
SB 129
Binding Element Enforcement
Sponsor: Senator Julie Raque Adams (R-Louisville)
SB 129 creates a new section of KRS 100.401 to 100.419 relating to binding element
enforcement. “Binding element” in a county containing a consolidated local government means
a binding requirement, provision, restriction, or condition imposed by a planning commission or
its designee, or a promise or agreement made by an applicant in writing in connection with the
approval of a land use development plan or subdivision plan.
The bill prohibits a planning commission in a county containing a consolidated local
government to waive or amend an agreed-upon binding element added by the legislative body
without the approval of the legislative body exercising planning authority.
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HB 30
Pension Spiking
Sponsor: Representative John Blanton (R–Salyersville)
Current law provides an increase in yearly credible compensation during the last five
years of employment of a retiree of the Kentucky Employees Retirement System, County
Employees Retirement System, or State Police Retirement System that is more than 10% higher
than their compensation from the previous year will not be counted when calculating a retiree’s
monthly retirement allowance, referred to as “pension spiking,” unless the increase is due to a
bona fide promotion or career advancement exempt from pension spiking provisions.
HB 30, a KLC initiative, amends KRS 61.598 to expand the definition of “bona fide
promotion or career advancement,” which provides an exemption from pension spiking
provisions applicable to members of the Kentucky Employees Retirement System, County
Employees Retirement System, and State Police Retirement System. The spiking exemption now
applies to increases in creditable compensation for all employees in a specified class due to
pay raises authorized or funded by the legislative or administrative body of an employer, or pay
increases mandated by a collective bargaining agreement approved by the employer’s legislative
body.
RETIREMENT
House Bill 30
Sponsor
Representative
John Blanton
(R-Salyersville)
Courtesy LRC
KLC UPDATE

39
SB 10
Health Insurance Subsidies for CERS Retirees
Sponsor: Senator Robby Mills (R-Henderson)
SB 10, a KLC initiative, amends KRS 78.5536 relating to retiree health provisions of
the County Employees Retirement System (CERS) to increase health insurance subsidies for
members who began participating in the system on or after July 1, 2003. Specifically, it raises
the monthly health insurance contribution for non-hazardous position members who meet
the “career threshold” to $40 per month for each year of service for retirees not eligible for
Medicare, and for hazardous position members to $50 per month for each year of service for
retirees not eligible for Medicare. The bill extends an existing employee contribution used to fund
retiree health benefits to include members who began participating in the system on or after
July 1, 2003, and increases the hazardous employee contribution rate to 2% of pay for those
eligible for a fixed-dollar retiree health subsidy. The changes will be effective July 1, 2026, with
subsidies payable beginning Jan. 1, 2026, and will apply to service earned prior to the effective
date.
The bill also directs the Public Pension Oversight Board to continue reviewing the
retiree health funds actuarial data and to, during the 2025 Interim, evaluate potential legislative
options to adjust retiree health benefits and costs for those members who began participating
in the system on or after July 1, 2003, in the event the retiree health funds continue to see
actuarial improvement. The amendments are retroactive with the purpose of providing more
comprehensive health insurance support for retired county employees.
Effective July 1, 2026.
(From Left) KLC
Executive Director/
CEO J.D. Chaney,
Elizabethtown
Police Department
Chief Jeremy
Thompson, Senator
Robby Mills
(R-Henderson),
Kentucky
Professional
Firefighters
Director of
Legislative Affairs
Jeff Taylor, and
Kentucky Sheriff’s
Association
Executive Director
Jerry Wagner
RETIREMENT
KLC.ORG

40
HB 546
Local Assistance Road Program (LARP)
Sponsor: Representative Jason Petrie (R-Elkton)
HB 546 creates new sections of KRS Chapter 176 to establish a Local Assistance Road
Program (“LARP”) to provide funding for road rehabilitation projects in Kentucky’s cities and
counties. The bill requires the Transportation Cabinet to establish procedures by which a city
or county may make application for portions of county roads, streets, and urban roads in its
jurisdiction to be considered for grants from the LARP program based on a list of rehabilitation
projects identified by the General Assembly for funding.
Only rehabilitation projects that bring the road or street back to its original condition,
not projects that increase capacity or involve other improvements over the original design of
the road, will be considered. The maximum amount of funding that a city or county may receive
for any individual project under a LARP grant is $500,000. Beginning on June 1 of each year, a
city or county may submit projects for consideration for LARP grants to the cabinet in advance
of each regular session of the General Assembly. In order to be considered for funding during
a regular session, the submission must be made by Oct. 1 of the preceding year. A project
submitted in a previous year that was not selected must be resubmitted with a new application in
order to be considered in a future year.
STATE PROGRAMS
The cabinet must evaluate projects within 30 days of application. To evaluate projects
submitted for grants, the cabinet shall develop a scoring system to assign a score for each
project using a 1-10 scale, with higher numbers assigned to projects exhibiting the greatest
need based on the following factors: 1) preservation of assets; 2) safety; 3) cost; and 4) traffic
volume. The cabinet shall establish a graduated local funding match requirement based on the
county population ranking system developed by the Cabinet for Economic Development under
KRS 154.21-015 to determine the amount of local matching funds required for grants awarded
for LARP projects. The match requirements range from 10% to 20%. A city or county may use
funds received under KRS 177.320(2) and 177.365 for secondary roads, rural roads, and municipal
road aid to provide local matching funds. The Transportation Cabinet must submit a list of all
evaluated requests to the General Assembly through the Legislative Research Commission no
later than Nov. 1 of each year. The General Assembly shall determine projects for awards.
HJR 46
County Priority Road Projects
Sponsor: Representative Jason Petrie (R-Elkton)
House Joint Resolution 46 sets out the County Priority Projects portion of the Six-Year
Road Plan. An emergency is declared. HJR 46 became law on March 28, 2025.
HB 537
Opioid Abatement Trust Fund
Sponsor: Representative Chris Fugate (R-Chavies)
HB 537 amends KRS 15.293 relating to the Opioid Abatement Trust Fund to expand
sources of funding. Specifically, the bill allows the trust fund to receive money from settlements,
judgments, or bankruptcy proceedings against any entity involved in manufacturing or
distributing opioids, removing previous references to specifically named defendants.
The bill additionally authorizes the Attorney General to create administrative regulations
for distributing funds if a court order impacts the standard distribution process. The trust fund
will continue to consist of 50% of proceeds from opioid-related legal actions, with the remaining
50% distributed directly to local governments based on established metrics. Recipients of the
funds must submit annual certifications demonstrating that the money was used for approved
purposes related to opioid use disorder treatment, prevention, and recovery services. These
purposes include supporting treatment programs, emergency response services, housing for
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41
individuals in recovery, crisis stabilization centers, addiction counselor training, and various
prevention and education initiatives.
Senate Bill 1
Opioid
Abatement Trust
Fund
HB 398
Occupational Safety and Health Administration
Sponsor: Representative Walker Thomas (R-Hopkinsville)
HB 398 amends several provisions of KRS Chapter 338 related to workplace standards.
KRS 338.062 is amended to prohibit the Kentucky Occupational Safety and Health Standards
Program, the secretary of the Education and Labor Cabinet, and the commissioner of
the Department of Workplace Standards from adopting, promulgating, or enforcing any
occupational safety and health administrative regulation that the Occupational Safety and Health
Administration or the United States Department of Labor has not promulgated, or that is more
stringent than the corresponding federal provision enforced by the United States Department of
Labor under the Occupational Safety and Health Act of 1970.
KRS 338.091 is amended to modify procedures for review of decisions made by the
Kentucky Occupational Safety and Health Review Commission on appeals from citations,
notifications, and variances issued by the commission. Any party adversely affected or aggrieved
by a final order of the review commission may appeal to the Franklin Circuit Court for a review
of the order. The amendment allows the court to award actual expenses incurred, including court
costs and attorney fees, against the department.
STATE PROGRAMS
KRS 338.111, 338.121, 338.141, and 338.991 are amended to modify workplace inspection
and citation procedures. Representatives for both the employer and employees shall be
given the opportunity to accompany the commissioner or authorized representative of the
commissioner during the physical inspection of any place of employment. Any citation issued to
an employer shall describe with particularity the alleged violation, including a reference to the
provision of the act, standard, rule, or administrative regulation alleged to have been violated.
Any citation or a notice of a de minimis violation shall be promptly issued after the inspection.
A citation shall not be classified as a
repeated violation when issued more
than three consecutive years from the
final order date of the previous citation.
A citation or a notice of a de
minimis violation shall not be issued
more than six months after the
occurrence of any alleged violation. A
de minimis violation is a violation that
has no direct or immediate relationship
to safety or health. Any employer
who receives a notice of a de minimis
violation, including any standard,
administrative regulation, or order, shall
not be assessed a civil penalty.
House Bill 398
Sponsor
Representative
Walker Thomas
(R-Hopkinsville)
Courtesy LRC
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42
HB 1 State Individual Income Tax Rate for 2026
Sponsor: Representative Jason Petrie (R-Elkton)
HB 1 amends KRS 141.020 to reduce the Kentucky individual income tax rate from 4%
to 3.5% for taxable years beginning on or after Jan. 1, 2026, pursuant to the provisions of HB 8
enacted by the General Assembly in 2022.
According to the language of HB 8, the income tax rate change from 4% to 3.5% for
taxable years beginning on or after Jan. 1, 2026, required action by the General Assembly if
certain rate reduction conditions for the prior fiscal year were met as required. The Department
of Revenue determined the conditions were met.
House Bill 1
Sponsor
Representative
Jason Petrie
(R-Elkton)
Courtesy LRC
STATE REVENUE MEASURES
HB 544
State Aid Funding for Disaster Relief
Sponsor: Representative Jason Petrie (R-Elkton)
HB 544 creates a new section of KRS Chapter 39A to establish the State Aid Funding
for Emergencies 4860 fund (“SAFE 4860 fund”) administered by the Department of Military
Affairs, Division of Emergency Management as a separate fund to provide financial support for
those directly impacted by the Kentucky disaster. “Kentucky disaster” means the severe storms,
straight-line winds, flooding, and landslides that occurred in Kentucky beginning on Feb. 14,
2025, as named in the disaster declaration. “Declaration” means the Presidential Declaration of a
Major Disaster, designated FEMA-4860-DR-KY.
Eligibility to receive financial support from the SAFE 4860 fund shall be limited to a city
or county government, nonprofit or public utility service provider, state agency, or school district
that has disaster-related needs as a result of the Kentucky disaster. An eligible recipient may
receive moneys from the SAFE 4860 fund for expenses to provide disaster and recovery relief
if the recipient is located in the areas of the Kentucky disaster and has disaster-related needs
in response to the disaster. Financial support should not cover any new construction inside the
100-year floodplain area.
Eligible expenses shall be those used to support disaster and recovery relief, including
but not limited to: 1) replacement or renovation of publicly owned buildings damaged by
the Kentucky disaster, but only to the extent of damage directly caused by the disaster and
replacement, renovation, or expansion of an essential government facility used for existing
services at the time of Kentucky disaster, including police, fire, and ambulance stations,
functioning above capacity at the time of application, but only to the extent of damage directly
from the disaster; 2) reimbursement for services, personnel, and equipment provided during
the time of response and recovery to communities impacted by the disaster, but only to the
extent of damage directly caused by the disaster; 3) funding to cities, counties, and publicly
owned utilities for the cost of damages to water and wastewater infrastructure and supporting
systems caused by the disaster, but only to the extent of damage directly caused by the disaster;
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4) assistance to cities and counties for expenses related to planning efforts for rebuilding and
recovering from the disaster; 5) assistance to support disaster recovery and relief needs of
local school districts, but only to the extent of loss or damage directly caused by the disaster,
including but not limited to financial support for school districts that will experience a default in
bond payments; and 6) contracted employees to administer and report on the funds.
Each recipient of moneys from the SAFE 4860 fund, including any agency of Kentucky
state government, shall: 1) retain documentation of a timely application for any applicable
reimbursement, including but not limited to federal emergency disaster grant assistance, other
financial disaster assistance, and insurance proceeds; and 2) adhere to the terms of the SAFE
4860 fund regarding reimbursement to the commonwealth if funds from other sources are
subsequently received after the receipt of financial assistance from the commonwealth.
Moneys in the SAFE 4860 fund may be used for advancement of moneys to cities,
counties, school districts, and nonprofit or public utility service providers experiencing strained
fiscal liquidity while awaiting reimbursement from FEMA or insurance claims and shall not
be used for capital improvements. This reimbursement shall be determined by 1) the statelocal
finance officer within the Department for Local Government for cities and counties, and
nonprofit or public utilities, and the Department of Education for school districts; and 2) include
a quarterly accounting of the advancement released and the outstanding balance through June
30, 2028.
Under the legislation, $48 million will be transferred from the previous SAFE funds to the
newly created SAFE 4860 fund. The bill also allows $100 million to be spent on flood aid from
the current state budget on governor-declared emergency.
An emergency is declared. HB 544 became law on March 31, 2025, when signed by the
governor.
HB 775
State Income Tax Reform
Sponsor: Representative Jason Nemes (R-Middletown)
HB 775 amends KRS 141.020 to establish new annual budget triggers for cuts to the
Kentucky individual income tax rate with the goal of eliminating the tax. HB 8 passed by the
General Assembly in 2022 created a trigger system to incrementally lower the income tax rate so
long as certain budget conditions are met each fiscal year. Kentucky met the fiscal year trigger
for a tax cut in 2024 with the General Assembly finalizing the half percentage point cut in HB 1 in
2025, which lowers the income tax rate from 4% to 3.5% beginning in 2026.
STATE REVENUE MEASURES
The bill modifies the current rate reduction process established by 2022 HB 8 by altering
the tax cut trigger system to allow for smaller incremental reductions by tenths (0.1% to 0.5%),
rather than by one-half of a percentage point if triggers are met, potentially permitting more
frequent tax reductions. Any tax cut continues to require a vote by the General Assembly.
If the revised tax rate reduction conditions are met for fiscal year 2025-2026, the General
Assembly may take action to reduce the rate for taxable year beginning Jan. 1, 2028.
HJR 30
Troubled Water and Wastewater Assistance Fund
Sponsor: Representative Jason Petrie (R-Elkton)
House Joint Resolution 30 authorizes the Office of State Budget Director to release
a portion of the moneys appropriated for the Kentucky Water or Wastewater Assistance for
Troubled or Economically Restrained Systems Fund Account established by KRS 48.705 in fiscal
years 2024-2025 and 2025-2026 to fund 34 water or wastewater projects designated in the
resolution.
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HB 775
Tax Increment Financing Development Area Within Existing
Development Area
Sponsor: Representative Jason Nemes (R-Middletown)
HB 775 amends KRS 65.494 to permit a new state participation tax increment financing
development area to be created within an existing development area in a consolidated local
government, or city of the first class, under certain conditions and to remove the minimum size
requirement of one square mile for a development area.
TAX INCREMENT FINANCING
A new development area to be created within an existing development area in a
consolidated local government may be approved if the following requirements are met: 1) the
project for the existing development area is amended to remove the new development area
from the existing development area; 2) all contracts regarding the application of tax increments
derived from the new development area require not less than 10% of the increment be paid
to the agency for which the existing area development was established; 3) notwithstanding
provisions under KRS 65.495 to the contrary, payment to the agency under 2) are not taken
into account in determining whether thresholds in the contract have been met; and 4) the
amendment of the project for an existing development area is approved by the county
containing a city of the first class, or the city of the first class in which the existing development
area is located; by the state; and by the agency for which the existing development area was
established; and if applicable, the insurer of any bonds issued for the benefit of the agency for
which the existing development area was established. Tax increment financing provisions for
consolidated local governments in KRS 65.490 to 65.499 applicable to existing development
areas otherwise apply to a new development area.
SB 129
Signature Project Program
Sponsor: Julie Raque Adams (R-Louisville)
SB 129 amends KRS 154.30-050 relating to the state participation Signature Project
Program. The purpose of the program is to encourage private investment in the development
of major projects that will have a significant impact on the commonwealth judged to be of
such magnitude that the effect upon the location of a project warrants extraordinary public
support wherein both the state and the local government in which a project is located commit to
dedicating increased taxes (increments) received by the state and local government as a result
of the project to financing infrastructure in support of the project.
The statute is amended to create an exception to certain requirements for qualification
as a signature project. If a project has a residential use that comprises at least 50% of the total
finished square footage of the proposed project: 1) the report required in KRS 154.30-030(2)
(a)3.b. shall not be required; and 2) the certification required by KRS 154.30-030(6)(b) and
subparagraph 1.c. that relates to demonstrating a net positive economic impact on the state shall
not be required.
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SB 129
Mixed-Use Redevelopment in Blighted Urban Areas
Sponsor: Julie Raque Adams (R-Louisville)
SB 129 amends KRS 154.30-060 relating to the tax increment financing program for
Mixed-Use Redevelopment in Blighted Urban Areas. “Mixed use” means a project that includes
at least two or three qualified uses, each of which comprises at least 20% of the finished square
footage of the project or at least 20% of the total capital investment. “Qualified use” means
retail, residential, office, restaurant, or hospitality. The goal of the program is to revitalize urban
areas through mixed-use projects.
The statute is amended to create an exception to program requirements for projects
where at least 50% of the total finished square footage is dedicated to residential use. If a
project meets this threshold, it is exempt from two specific requirements: 1) a requirement to
submit a report required by KRS 154.30-030(2)(a)3.b.; and 2) the certification required by KRS
154.30-030(6)(b) and paragraph (g) that pertains to demonstrating a net positive economic
impact on the state shall not be required.
The Kentucky
State Capitol
TAX INCREMENT FINANCING
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HB 15
Driver Instruction Permits
Sponsor: Representative Steven Rudy (R-Paducah)
HB 15 amends KRS 186.450 to allow persons who are at least 15 years of age to apply for
an instruction permit to operate a motor vehicle. The permit shall be valid for four years, instead
of three years as currently provided, and may be renewed.
KRS 186.454 is amended to allow a person with an intermediate license who has attained
the age of 17 years, held an intermediate license for a minimum of 180 days without a conviction
for a moving violation, and completed a driver training program under KRS 186.410(4) to apply
for an operator’s license to operate a motor vehicle.
An emergency is declared. HB 15 became law on March 25, 2025, when signed by the
governor.
HB 443
Hal Rogers Parkway
Sponsor: Representative John Blanton (R-Salyersville)
TRANSPORTATION & VEHICLES
Current law under KRS 177.317 provides that the Transportation Cabinet shall allow partial
control of access on the Hal Rogers Parkway between the junction of KY 192 and the junction of
KY 80 and establishes minimum spacing requirements and the manner in which the access is to
be provided. Minimum access spacing under this section must be no less than 1,200 feet.
HB 443 adds a provision requiring the Transportation Cabinet to include Kentucky Route
80 in the counties of Perry, Knott, and Floyd as part of the Hal Rogers Parkway, with the cabinet
to update online maps and databases on effective date of the Act and update highways and
directional signs upon normal replacement schedule.
HB 493
Towing and Storage of Motor Vehicles
Sponsor: Representative Michael Pollock (R-Campbellsville)
HB 493 makes various changes to the statutes found in KRS Chapter 281 regarding
towing services, including investigatory holds on impounded vehicles and associated storage
rates.
KRS 281.630 is amended to authorize the Department of Vehicle Regulation to issue
“towing and storage certificates,” granting authority for the operation of one or more tow trucks,
storage facilities, or both. Applicants must file a rate sheet with the department reflecting
charges that are reasonable and customary in Kentucky. The registration fee for a motor carrier
vehicle license plate is set at $10 for each tow truck not actively registered with the unified
carrier registration system.
KRS 281.928 states that when a vehicle is held as potential evidence in a civil or criminal
investigation, the entity requesting the hold must notify the vehicle owner within five business
days of initiating the hold and again within two business days after the hold is lifted. Notice may
be provided electronically or by certified mail.
KRS 281.926 is amended to require towing companies and storage facilities to maintain a
single, uniform rate sheet applicable to all customers, regardless of the customer, except when
a separate rate is negotiated by contract with a law enforcement entity. Charges above the
published rate sheet are deemed excessive, and any such charges related to property or casualty
insurance claims constitute a fraudulent insurance act. Excessive payments must be returned to
the payor within 30 days of notice to the company or facility.
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KRS 281.930 is amended to recognize that towing companies or storage facilities can
charge storage fees during such investigatory holds. Reasonable daily fees for these evidence
holds cannot exceed the daily storage rate on the rate sheet, and no additional fees can be
charged other than daily storage or labor. If an insurer offers to provide secure facility storage,
the entity may allow the vehicle to be moved there. Upon release of a hold and payment from
the owner or insurer for towing and storage charges, the vehicle must be released.
KRS 281.990 is amended to strengthen enforcement provisions. A towing company or
storage facility that violates KRS 281.920 to 281.936 will have its certificate suspended for up
to 30 days for each of up to four violations within a three-year period. A subsequent violation
within that period shall result in a 12-month suspension. During any period of suspension, the
towing company or storage facility is prohibited from charging fees. The Transportation Cabinet
is authorized to promulgate administrative regulations to establish additional penalties.
House Bill 493
Towing and
Storage of Motor
Vehicles
TRANSPORTATION & VEHICLES
HB 546
Interstate 69 Ohio River Bridge Crossing Project
Sponsor: Representative Jason Petrie (R-Elkton)
HB 546 creates a new section of KRS Chapter 177 relating to state and federal highways
to require the Transportation Cabinet by July 1, 2025, to enter into a new memorandum of
understanding with the state of Indiana to use tolling revenues to finance the Interstate 69
Ohio River Crossing project, a planned extension of Interstate 69 over the Ohio River between
Evansville, Indiana, and Henderson, Kentucky. The bridge and its approach roadways will make
up a portion of the Interstate 69 corridor from Michigan to Texas.
The General Assembly finds that: 1) the I-69 Ohio River Crossing Project, since its
inception, was designed to be financed by tolling revenues; 2) in 2016, the governors of
Kentucky and Indiana signed a memorandum of understanding directing both states to restart
the I-69 Ohio River Crossing Project; and 3) based on the anticipated cost of the project and
the current funding environment, the memorandum of understanding acknowledged that tolling
would need to be part of the financial plan to achieve an implementable solution.
All funds for the project shall be conditioned on the incorporation of bridge tolling.
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HB 664
Automated Speed Enforcement in Work Zone
Sponsor: Representative John Blanton (R-Salyersville)
HB 664 creates a new section of KRS Chapter 189 to permit a peace officer to issue a
citation at the time of an offense in a highway work zone based on images transmitted by an
automated speed enforcement device if: 1) a motor vehicle is detected traveling in excess of 10
miles per hour over the posted speed limit; 2) at least one bona fide worker is present in the
highway work zone; and 3) there is a peace officer certified under KRS 15.380 to 15.404 present
in or near the end of the highway work zone in a marked vehicle.
“Images” means images transmitted by an automated speed enforcement device showing
the speed and rear license plate of a motor vehicle. “Automated speed enforcement device”
means a photographic, radar, lidar (light detection and ranging), or other device with one or
more vehicle sensors that transmits a vehicle’s speed and an image of the rear license plate of a
vehicle exceeding the speed limit.
TRANSPORTATION & VEHICLES
The Transportation Cabinet shall: 1) install signage in highway work zones notifying
the public that vehicle speed within the work zone may be enforced by an automated speed
enforcement device; 2) require the signage to be affixed with lights that shall be flashing at all
times when the automated speed enforcement device is active; and 3) calibrate the automated
speed enforcement device on an annual basis. The cabinet shall promulgate administrative
regulations relating to any matters necessary for the efficient administration of automated speed
enforcement.
KRS 189.2327 is amended to require if a violation occurs in a highway work zone, the
fine shall be $500 if no person is physically injured or dies as a result of the violation, which is
prepayable. A driver may additionally attend a state traffic school, or a county-attorney operated
traffic safety program.
SB 63
Street-Legal Special Purpose Vehicles
Sponsor: Senator Brandon Storm (R-London)
SB 63 creates a new section of KRS Chapter 186 to allow street-legal special purpose
vehicles to operate on a highway under certain conditions.
“Street-legal special purpose vehicle” means a special purpose vehicle equipped with
all of the following: 1) one or more headlamps; 2) one or more tail lamps; 3) one or more brake
lamps; 4) a trail lamp or other lamp constructed and placed to illuminate the registration plate
with a white light; 5) one or more red reflectors on the rear of the vehicle; 6) an amber electric
turn system, one on each side of the front of the vehicle; 7) amber or red electric turn signals
on the rear of the vehicle; 8) a braking system, other than a parking brake; 9) a horn or other
warning device; 10) a working muffler; 11) rearview mirrors on the right and left side of the driver;
12) a windshield, unless the operator of the vehicle wears eye protection while operating the
vehicle; 13) a speedometer, illuminated for nighttime operation; 14) a roll bar or roll cage; 15) for
multi-passenger vehicles, a seatbelt assembly that conforms to the federal motor vehicle safety
standard provided in 49 C.F.R. sec. 571.209 for each designated seating position; and 16) tires
that have at least two thirty-seconds of an inch or greater tire tread.
“Street legal special purpose vehicle” does not include a low-speed vehicle as defined in
KRS 186.010 or a vehicle primarily used for farm or agricultural activities.
A person shall not operate a street-legal special purpose vehicle on a highway if: 1)
the highway is located within the jurisdictional boundaries of a local government where the
operation of special purpose vehicles has not been allowed by local ordinance; 2) the highway
is a controlled-access system, including but not limited to an interstate or parkway; or 3) the
United States Department of Agriculture prohibits special purpose vehicles where the highway
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is located. Street-legal special purpose vehicles are additionally prohibited from traveling a
distance greater than 20 miles on a highway displaying centerline pavement markings.
A street-legal special purpose vehicle shall: 1) be registered in accordance with KRS
186.020; 2) be insured by the owner or operator for the payment of tort liabilities in the same
form and amounts as set forth in KRS 304.39-110 for motorcycles; and 3) comply with all other
requirements in KRS Chapter 186 relating to licensing of motor vehicles.
Upon registration of a street-legal special purpose vehicle, the county clerk shall issue
to the owner a standard motorcycle registration plate for the vehicle. Prior to submitting an
application for title to the county clerk, an owner of a street-legal special purpose vehicle
seeking to register the vehicle shall have the vehicle inspected by a certified inspector. There
shall be a $25 fee for the certification payable to the sheriff’s office.
An applicant renewing his or her registration for a street-legal special purpose vehicle
shall certify that the vehicle still meets all enumerated equipment requirements.
The legislative body of a local government may, by ordinance, allow the operation of
street-legal special purpose vehicles on highways within the jurisdictional boundaries of the
local government. The legislative body may additionally adopt more stringent local ordinances
governing the operation of and required safety equipment for street-legal special purpose
vehicles on highways within the boundaries of the local government.
act.
Senate Bill 63
Sponsor
Senator
Brandon Storm
(R-London)
Courtesy LRC
The Transportation Cabinet shall promulgate administrative regulations to implement the
TRANSPORTATION & VEHICLES
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