Week 8 Legislative Update
Sen. Steve Rawlings (District 11)
We have entered the decisive phase of the legislative session. With crossover underway, bills are advancing between chambers and the General Assembly is focused on protecting liberty, strengthening accountability and limiting unnecessary government expansion.
This week, House Bill 1 moved forward a measure grounded in educational freedom and fiscal responsibility. The bill allows Kentucky to participate in a federal Education Freedom Tax Credit program beginning in 2027. The program provides up to $1,700 in federal tax credits for donations that support K-12 scholarships.
Importantly, HB 1 does not grow state government. It does not increase spending. It does not raise taxes. It does not reduce SEEK funding. This is a federal tax credit tied to federal tax liability that will be claimed regardless of Kentucky’s participation. The only question is whether those federal dollars stay here to support Kentucky students.
Families earning up to 300 percent of the area median income are eligible a threshold that includes most working families. Scholarships may support tuition, tutoring, special-needs services, and classroom resources, including for public school students.
At its core, HB 1 respects taxpayers and empowers families, without expanding bureaucracy or state mandates.
Turning to the budget, the legislature remains committed to passing a responsible two-year spending plan. HB 500 began as a structural outline while lawmakers awaited detailed financial data from executive agencies. Responsible governance requires transparency and full information, and that process is ongoing.
With the Senate officially in receipt of the House’s proposal, next week is when our deliberate and meticulous work really begins.
This week, I was proud to pass an important piece of legislation off the Senate floor that strengthens accountability in government and protects Kentucky consumers.
Senate Bill 52 reinforces constitutional guardrails in our state permitting process. The bill requires agencies to clearly state approval criteria in statute and prohibits permit denials for reasons not grounded in law. It establishes a 30-day deadline for agency action, deems applications approved if no action is taken, and shifts the burden of proof to agencies in disputes. SB 52 increases transparency, expands judicial review and ensures permitting decisions are timely, fair and based strictly on the law — not shifting interpretations.
Several other measures were approved in the Senate this week and were either delivered to the Governor’s desk or sent to the state House of Representatives for consideration.
Senate Bill 124 Allows Kentucky school districts to offer educators the option to receive payment for a portion of unused sick leave while preserving the choice to save it. The voluntary program provides flexibility for teachers and financial planning tools for districts. Supporters say it could reduce reliance on substitutes and improve teacher retention.
Senate Bill 129 Reduces employer contribution rates to the Unemployment Insurance Service Capacity Upgrade Fund, created to modernize the state’s unemployment system. The bill lowers rates through 2026 and establishes a capped annual adjustment process beginning in 2027. Contributions are suspended if fund balances meet specified thresholds.
Senate Bill 162 Streamlines Kentucky’s juvenile diversion process by removing the mandatory FAIR Team step in certain status offense cases. The bill preserves diversion options while allowing cases to move more efficiently and strengthens accountability provisions within diversion agreements. It also updates reporting requirements for court-designated workers.
Senate Bill 170 Creates a four-year SOAR pilot program in at least 10 school districts to address habitual truancy through early intervention and family engagement. The bill establishes RISE teams, updates the definition of habitual truant and enhances data reporting. It also prioritizes support-based accountability and limits secure detention for younger status offenders.
Senate Bill 101 Requires school districts to adopt policies mandating a minimum 12-month expulsion for students in grades 6–12 who assault school staff without provocation. It also requires immediate reporting of assaults to law enforcement and sets penalties for noncompliance. The measure aims to strengthen teacher safety and classroom order.
Senate Bill 98 Requires contractors to comply with American Welding Society standards when specified in project plans. Qualified inspections must be conducted when those standards apply. The bill reinforces structural safety requirements for major public and private construction projects.
House Bill 314 Modernizes oversight of KentuckyWired by transferring operational control to the Commonwealth Office of Technology. The bill eliminates the Kentucky Communications Network Authority’s executive director position and updates board governance to include local government representation. An emergency clause ensures continuity of service during the transition.
Senate Bill 37 Designates the Treeing Walker Coonhound as the official state dog of Kentucky. The bill recognizes the breed’s deep ties to Kentucky’s hunting heritage and outdoor traditions.
Senate Bill 157 Clarifies how “total loan amount” is calculated for certain mortgage loans and aligns Kentucky law with federal standards. The bill exempts loans below federal fee thresholds from existing income limits. The goal is to promote consistency and transparency in mortgage lending practices.
Senate Bill 214 Authorizes the Kentucky Department of Agriculture to accept and manage nonfederal funds and grants from public or private sources. The bill clarifies the department’s authority to apply for and administer funds at all levels of government. An emergency clause allows the department to immediately pursue grant opportunities.