Week 11 Legislative Update

Sen. Steve Rawlings (District 11)
This week, the Senate passed a balanced and responsible state budget. As a member of the Senate Appropriations and Revenue Committee, I have been directly involved in reviewing agency requests, evaluating priorities, and working through the details to ensure we serve the best interests of the people.

The Senate passed a balanced and responsible state budget that protects taxpayers, strengthens essential services and positions Kentucky for long-term stability. The plan avoids using one-time dollars to fund ongoing expenses, maintains strong reserves and continues the work of reducing long-term liabilities such as pensions and retiree health costs. At the same time, it allows us to make targeted investments in the services Kentuckians rely on every day.

The budget continues strong support for education at every level, including investments in school safety and continued support for student services and workforce development programs. 

In addition, the plan fully funds pension and health obligations while providing targeted support for state employees, law enforcement and first responders who serve our communities. It also includes strategic investments in infrastructure, energy development, technology modernization and disaster preparedness, while strengthening transparency and oversight to ensure taxpayer dollars are used responsibly.

With the Senate’s changes now before the House of Representatives, lawmakers from both chambers will continue working together in the coming days to finalize a two-year budget that meets the needs of Kentuckians while protecting the commonwealth’s long-term financial health.

The General Assembly also acted quickly to override the governor’s veto of House Bill 1, ensuring it is now law.

More bills are now making their way to the governor’s desk. While the governor can veto legislation, the General Assembly can override those vetoes when necessary, as we have already done this session.

The most significant work still underway is the state’s two-year budget and road plan. The Senate is reviewing the House’s proposal and preparing changes before returning it for further consideration. If the chambers do not agree, a conference committee will work to finalize the details.

This week, the Senate continued advancing legislation, and I was pleased to see additional measures I’ve been working on move forward.

SB 195 – Updates Kentucky law governing civil liability in roadway construction and maintenance projects by establishing clear standards for contractor liability. The bill creates a rebuttable presumption that contractors met specifications once a project is accepted and limits liability unless a failure to follow specifications or a hidden defect was a substantial factor in causing harm. It also establishes a presumption in certain roadway cases involving impaired driving or speeds 25 mph or more over the limit and clarifies that contractors are not responsible for government design or engineering decisions unless those responsibilities were assumed.

SB 249 – Allows the governor, in consultation with the Kentucky Workforce Innovation Board, to approve workforce training programs eligible for federal Workforce Pell Grants and coordinate approvals to prevent duplicate payments. The board must also establish a process to ensure programs meet federal requirements without imposing stricter standards.

SB 263 – Updates Schools of Innovation laws to give districts more flexibility to adopt new practices. It streamlines the waiver process, requires the Department of Education to review applications within 30 days, and allows expedited waivers with approval from the Kentucky Board of Education. The bill also protects districts from penalties for previously approved actions and creates a pilot program with a dedicated fund.

SB 278 – Limits certain types of off-duty or secondary employment for law enforcement personnel, excluding retail establishments, weddings, and businesses that primarily sell alcohol. It permits work tied to public contracts, projects involving contractors serving public entities, organizations receiving state funding, and ticketed events where public safety is a concern. The commissioner must also establish policies governing off-duty employment and use of uniforms, equipment, and facilities.

SB 281 – Updates grandparent visitation law by establishing a clear and convincing evidence standard when a child is in a parent’s custody and a preponderance of the evidence standard when another person is the custodian. The bill also outlines factors courts may consider when determining a child’s best interests and removes the rebuttable presumption standard.

SB 289 – Expands the criteria for issuing an AMBER Alert, including when a child is reported missing by law enforcement, when the disappearance may not have been voluntary and the child’s safety is at risk, and when a child is missing while in the custody of state agencies or placement programs. It also clarifies that alert resources must comply with federal requirements. Section 2 designates the act as “Wynter’s Law.”

SB 324 – Updates Kentucky’s film and entertainment tax incentive program by expanding eligible productions to include commercials, video games, and music projects while raising in-state spending requirements to increase economic impact. The bill clarifies eligible expenses, allows unused portions of the tax credit cap to carry forward, assigns application review to the Kentucky Film Office, and requires a certified audit within 180 days of completing production.

HB 500 – Establishes a balanced two-year state budget focused on fiscal stability and key investments. It fully funds pension and health obligations, maintains about $3.9 billion in reserves, and includes spending controls. The plan sustains education funding, supports universities and school safety, preserves Medicaid services, expands behavioral health care, and invests in infrastructure, disaster response, and economic development projects such as nuclear energy.

HB 503 – Largely maintains the House proposal while ensuring the General Assembly has the resources to carry out its duties. It includes 2% annual salary increases for legislative staff and funds a salary study to evaluate compensation, supporting long-term workforce planning.

HB 504 – Maintains core judicial funding while improving efficiency and flexibility. It includes 2% annual raises for judicial employees, fully funds judgeships created in 2022, and provides $1 million annually for county support services. The bill also refines expense reductions, supports key facility projects, pauses new courthouse construction, and increases oversight of capital projects.

HB 900 – Allows one-time strategic investments from the state’s Budget Reserve Trust Fund while maintaining strong reserves. It funds targeted infrastructure, economic development, and emergency response projects and separates these expenditures from the operating budget to promote disciplined use of surplus funds.

HB 96 – Updates the structure and membership of the Council on Postsecondary Education’s working group by expanding legislative representation, establishing the council president as a nonvoting chair, and shifting meetings to a calendar-year cycle beginning in 2026. A Senate committee substitute changes the meeting requirement from every three years to every four years.

HB 280 – Updates healthcare and school health policies by adjusting nursing licensure requirements, strengthening reporting and oversight, and expanding access to emergency medications in schools. It allows trained individuals to administer undesignated glucagon during diabetic emergencies with liability protections. A Senate committee substitute clarifies provisions related to diabetes management plans and glucagon administration.

HB 459 – Establishes a statewide system to collect healthcare workforce data through licensure renewals to better assess workforce supply and needs. Licensing boards will collect information on education, employment status, practice setting, and workforce participation while protecting privacy and allowing opt-outs for data sharing. The bill also streamlines licensure processes and sets timelines for correcting application errors.

HB 555 – Allows schools to establish student-run businesses such as stores or food stands to provide real-world business experience. Local school boards may approve and regulate these programs, including operations and use of earnings, while certain limits on food sales are removed. A Senate committee substitute requires all food sold to meet federal school nutrition standards.

HB 562 – Updates Kentucky’s high school diploma options for students with disabilities by creating an “alternate” diploma that meets federal graduation standards and a “modified” diploma that does not count toward federal graduation rates. The bill also directs workforce officials to promote job opportunities for alternative diploma graduates and clarifies that eligible students remain able to receive KEES funding.

HB 648 – Strengthens protections for motor vehicle dealers by setting clearer standards for manufacturer reimbursement for warranty and recall work, including parts, labor, and related costs. A Senate floor amendment extends the deadline for dealers to submit reimbursement claims from 30 to 90 days