KLC 2021 Legislative Update

2021 

KENTUCKY LEAGUE OF CITIES 

LEGISLATIVE 

UPDATE 

KLC.ORG

2021 KLC LEGISLATIVE UPDATE 

TABLE OF CONTENTS 

Alcoholic Beverages ---------------------------------------------------------------- 

HB 179 Alcohol Regulatory License Fees 

HB 249 Direct Shipper Regulatory License Fees 

HB 415 Direct Shipper License 

SB 15 Microbreweries 

SB 67 Alcoholic Beverages to Go 

Annexation ---------------------------------------------------------------------------- 

SB 88 City Annexation Filings 

SB 274 Annexation into Third County 

Community Development -------------------------------------------------------- 

HB 321 West End Opportunity Partnership 

HB 556 Funding West End Opportunity Partnership 

SB 105 Abandoned and Blighted Property Conservatorship 

COVID-Related Actions ------------------------------------------------------------ 

HB 1 

Plans for Reopening Economy 

HJR 77 Extension of COVID-Related Emergency Actions 

SB 1 

Limitation of Emergency Orders 

SB 2 

Limitation of Emergency Regulations 

SB 5 

Liability Protections 

Economic Development ----------------------------------------------------------- 

HB 249 Film Industry Tax Credit 

HB 249 Qualified Nonresident Employees 

HB 320 Broadband Deployment 

HB 382 Regional Development Agency Assistance Fund (TVA) 

SB 146 Employment Offices 

Section 1 

Section 2 

Section 3 

Section 4 

Section 5

Emergency Services -------------------------------------------------------------- Section 6 

HB 44 Mental Health Benefits for Firefighters 

HB 120 Consolidated Emergency Services Districts 

Environmental Protection ------------------------------------------------------ 

HB 249 Registration of Petroleum Storage Tanks 

HB 303 Underground Facility Protection 

SB 86 Regulation of Open Dumps 

Historic Preservation and Commemoration ------------------------------ 

HB 249 Historic Tax Credit Projects 

HB 556 250th Anniversary Commemoration Commissions 

Law Enforcement ------------------------------------------------------------------ 

HB 105 Missing Persons 

SB 4 No-Knock Warrants 

SB 52 Sexual Offenses by Peace Officer 

SB 80 Peace Officer Decertification 

Local Government Regulation and Administration -------------------- 

HB 190 Sale of Grocery Items by Food Service Establishments 

HB 210 Adoption Leave 

SB 8 Immunizations 

SB 66 Youth Camps 

SB 148 Operation of Family Child Care Homes 

SB 165 Riverport Authorities 

SB 171 Local Government Investments 

SB 171 Splash Pads 

Section 7 

Section 8 

Section 9 

Section 10 

Local Government Taxation ---------------------------------------------------- Section 11 

HB 84 Exemptions for Disaster Response Businesses 

HB 249 Occupational License Fees 

HB 249 Refund of Business Taxes 

HB 249 Taxation of Veteran Service Organizations 

HB 513 Sheriffs’ Collection Fees

2021 KLC LEGISLATIVE UPDATE TABLE OF CONTENTS 

Open Records ------------------------------------------------------------------------- 

HB 273 Exemptions for Certain Photographs and Videos 

HB 312 Access to Public Records 

Retirement ---------------------------------------------------------------------------- 

HB 9 CERS Separation – Phase 2 

HB 69 Actuarial Reporting for State Retirement Systems 

HB 87 Retirement Systems Housekeeping Measures 

HB 261 Fraud Against Retirement Systems 

SB 169 Duty-Related Disability Benefits 

Substance Abuse -------------------------------------------------------------------- 

HB 7 

Recovery Ready Communities 

HB 427 Opioid Abatement Advisory Commission 

Transportation ----------------------------------------------------------------------- 

HB 199 Encroachment Permits 

HB 328 Advertising Devices 

SB 62 Commercial Quadricycles 

Utility Services ---------------------------------------------------------------------- 

HB 207 Energy Source Availability 

HB 238 City Utility Commission Membership 

HB 272 Penalties for Nonpayment of Utility Services 

Section 12 

Section 13 

Section 14 

Section 15 

Section 16 

House Bills 

HB 1 Plans for Reopening Economy ···························································· Page 20 

HB 7 Recovery Ready Communities ···························································· Page 57 

HB 9 CERS Separation – Phase 2·································································· Page 51 

HB 44 Mental Health Benefits for Firefighters ··············································· Page 29 

HB 69 Actuarial Reporting for State Retirement Systems ···························· Page 52 

HB 84 Exemptions for Disaster Response Businesses ··································· Page 46

HB 87 Retirement Systems Housekeeping Measures ····························· Page 53 

HB 105 Missing Persons··············································································· Page 36 

HB 120 Consolidated Emergency Services Districts··································· Page 29 

HB 179 Alcohol Regulatory License Fees···················································· Page 8 

HB 190 Sale of Grocery Items by Food Establishments······························ Page 41 

HB 199 Encroachment Permits··································································· Page 59 

HB 207 Energy Source Availability······························································ Page 61 

HB 210 Adoption Leave··············································································· Page 41 

HB 238 City Utility Commission Membership············································· Page 61 

HB 249 Direct Shipper Regulatory License Fees········································· Page 8 

HB 249 Film Industry Tax Credit·································································· Page 25 

HB 249 Historic Tax Credit Projects····························································· Page 34 

HB 249 Occupational License Fees····························································· Page 47 

HB 249 Qualified Nonresident Employees················································· Page 25 

HB 249 Refund of Business Taxes································································ Page 47 

HB 249 Registration of Petroleum Storage Tanks······································· Page 32 

HB 249 Taxation of Veteran Service Organizations···································· Page 47 

HB 261 Fraud Against Retirement Systems················································ Page 54 

HB 272 Penalties for Nonpayment of Utility Services································ Page 61 

HB 273 Exemption of Certain Photographs and Videos····························· Page 48 

HB 303 Underground Facility Protection···················································· Page 32 

HB 312 Access to Public Records································································ Page 49 

HB 320 Broadband Services········································································ Page 25 

HB 321 West End Opportunity Partnership················································ Page 14 

HB 328 Advertising Devices········································································· Page 59 

HB 382 Regional Development Agency Assistance Fund··························· Page 27 

HB 415 Direct Shipper License ··································································· Page 9 

HB 427 Opioid Abatement Advisory Commission······································ Page 58 

HB 513 Sheriffs’ Collection Fees································································· Page 47 

HB 556 250th Anniversary Commemoration Commission························ Page 34 

HB 556 Funding West End Opportunity Partnership ································· Page 16 

HJR 77 Extension of COVID-Related Emergency Actions··························· Page 21

Senate Bills 

SB 1 

Limitation of Emergency Orders····················································· Page 21 

SB 2 

Limitation of Emergency Regulations············································ Page 22 

SB 4 

No-Knock Warrants········································································· Page 36 

SB 5 

Liability Protections········································································ Page 23 

SB 8 

Immunizations················································································· Page 42 

SB 15 Microbreweries················································································ Page 10 

SB 52 Sexual Offenses by Peace Officers ················································· Page 38 

SB 62 Commercial Quadricycles······························································· Page 60 

SB 66 Youth Camps····················································································· Page 43 

SB 67 Alcoholic Beverages to Go······························································ Page 11 

SB 80 Peace Officer Decertification·························································· Page 39 

SB 86 Regulation of Open Dumps····························································· Page 33 

SB 88 City Annexation Filings···································································· Page 12 

SB 105 Abandoned and Blighted Property Conservatorship···················· Page 16 

SB 146 Employment Offices········································································ Page 28 

SB 148 Operation of Family Child Care Homes·········································· Page 43 

SB 165 Riverport Authorities······································································ Page 44 

SB 169 Duty-Related Disability Benefits····················································· Page 55 

SB 171 Local Government Investments······················································ Page 44 

SB 171 Splash Pads····················································································· Page 45 

SB 274 Annexation into Third County························································ Page 13 

NOTE 

The effective date of all legislation enacted by the 2021 Regular Session of the General Assembly 

is June 29, 2021, except for measures containing emergency or delayed effective date provisions. 

(OAG 21-02) 

If a bill reported in this update becomes effective on a date other than June 29, 2021, 

it is noted in the summary of the bill.

A MESSAGE FROM KLC 

Dear members and friends of KLC, 

The impact of the COVID public health emergency dominated much of the discussion in the 2021 Regular 

Session of the General Assembly. Legislators passed measures that address COVID-related liability issues, 

the financial strain the pandemic put upon municipal utilities, and the utilization of federal American Rescue 

Plan Act (ARPA) funds. Legislators were focused on ensuring a quick recovery from the health and financial 

impact of the pandemic. 

Cities have been at the forefront of the state’s recovery effort, and the Kentucky League of Cities proudly 

worked with legislators to ensure local elected officials remain engaged and involved in decisions made at 

the local level. House Bill 272 protects the ability of a municipal utility to maintain vital finances and ensures 

local utility employees are classified as essential. Senate Bill 66 will help local governments as they work to 

reestablish summer camps for children, and Senate Bill 171 gives cities some much needed guidance for the 

operation of splash pads. 

The measures are among the 17 KLC initiatives legislators passed in the short, 30-day session. Several top 

priorities for cities have already become law and many more will this summer. Just as importantly, legislators 

did not enact any of the many measures KLC opposed this session. 

Work still needs to be done, and KLC continues to discuss with legislators the pressing needs of cities. 

Kentucky cannot put off for another year the growing problem of infrastructure funding and the inequity 

of the state’s antiquated road funding formulas. Legislators must begin the process of diversifying local 

government revenue options to ensure economic growth. As Kentucky emerges from the COVID pandemic, 

the recovery begins with cities. 

You will find on the following pages information on the measures legislators enacted in the 2021 session that 

impact cities. If you have any questions on these bills or issues for the 2022 session, you can reach us at 800- 

876-4552. Thank you for entrusting us to represent you as the united voice of cities in Frankfort. 

Sincerely, 

J.D. & Bryanna 

J.D. CHANEY 

EXECUTIVE DIRECTOR/CEO 

BRYANNA L. CARROLL 

DIRECTOR OF PUBLIC AFFAIRS

1) ALCOHOLIC BEVERAGES 

HB 179 

ALCOHOL REGULATORY LICENSE FEES 

Sponsor: Representative Phillip Pratt (R–Georgetown) 

House Bill 179, a KLC initiative, amends regulatory license fee legislation passed in 2019 to clarify 

that cities and counties that voted to go wet with a local-option election held between July 15, 2014, 

and July 15, 2018, can enact a regulatory license fee. The legislation amends KRS 243.075 to: (1) 

expand the authorization to impose a regulatory license fee to counties that contain a city with a 

population larger than 20,000 that imposed a regulatory license fee prior to January 1, 2019; and (2) 

allow any city or county that held a local-option election pursuant to KRS 243.070 between July 15, 

2014, and July 15, 2018, to enact a regulatory license fee within two years of the effective date of the 

Act. 

KLC Executive Director/CEO J.D. Chaney and 

Representative Phillip Pratt (R-Georgetown) 

testify before the Senate Licensing and 

Occupations Committee for passage of House 

Bill 179. 

HB 249 

DIRECT SHIPPER REGULATORY LICENSE FEES 

Sponsor: Representative Jason Petrie (R–Elkton) 

House Bill 249 amends KRS 243.029 to require regulatory license fees imposed by a city or county 

upon gross receipts from the sale of alcoholic beverages by each licensed establishment also be 

applied to direct shippers of alcoholic beverages to consumers located within the city or county. The 

regulatory license fee shall be separately stated on the invoice, bill of sale, or similar document given 

to the consumer. KRS 243.075 is amended to require a direct shipper licensee to remit the regulatory 

license fee to the city or county as though it were an establishment located in the city or county 

licensed to sell alcoholic beverages. 

KRS 139.010 is amended to exempt from sales and use tax local alcohol regulatory license fees 

separately stated on an invoice, bill of sale, or similar document given to a purchaser of alcoholic 

beverages from a direct shipper of alcoholic beverages. Effective July 1, 2021. 

8 www.KLC.org


HB 415 

DIRECT SHIPPER LICENSE 

Sponsor: Representative Adam Koenig (R–Erlanger) 

House Bill 415 is an update to House Bill 415 passed by the 2020 General Assembly to clarify 

requirements to hold a direct shipper license. House Bill 415 (2020) established a framework 

for issuance of direct shipper licenses by the Department of Alcoholic Beverage Control to a 

manufacturer in Kentucky or any other state for shipment of alcoholic beverages directly to legal-age 

consumers. 

KRS 243.027 is amended to permit the holder of a direct shipper license to utilize the services of a 

third party to fulfill shipments, subject to the following conditions: (1) no licensed entity shall serve as 

a third party to fulfill shipments other than the holder of a storage license or transporter’s license; (2) 

the third party may operate from the premises of the direct shipper licensee or from another business 

location; and (3) the direct shipper licensee shall be liable for any violation of KRS Chapters 242 or 

244 relating to shipments to dry territories that may occur by the third party. 

KRS 243.027 is further amended to permit a manufacturer located and licensed in Kentucky to 

ship samples of alcoholic beverages produced by the manufacturer by a common carrier holding 

a Kentucky transporter’s license in quantities not to exceed 1 liter of any particular product in one 

calendar year of distilled spirits or wine, or 96 ounces of any particular product in one calendar year 

of malt beverages, to the following: (1) marketing or media representatives 21 years of age or older; 

(2) distilled spirits, wine, or malt beverage contests or competitions; (3) wholesalers or distributors 

located outside of Kentucky; (4) federal, state, or other regulatory testing labs; and (5) third-party 

product formulation and development partners. The samples shall be marked by affixing across the 

product label a not readily removable disclaimer with the words “Sample-Not for Sale” and the name 

of the manufacturer. 

KRS 243.110 is amended to specify that a brewer, microbrewery, distilled spirits and wine supplier, 

and malt beverage supplier may also hold a direct shipper license. 

KRS 243.0305 is amended to permit a distiller ‒ in instances of retail drink and package sales that 

occur as souvenir package sales, retail drink sales on the distillery premises, or sales by a distiller 

to consumers at fairs and festivals ‒ to transfer its products from the distillery proper to the location 

where those sales occur without having to transfer physical possession of the distilled spirits to 

a licensed wholesaler and, effective January 1, 2022, report and pay all taxes required to the 

Department of Revenue at the time and in the manner required by the department. 

KRS 243.884 is amended to require all direct shipper licensees shipping alcohol to a consumer at 

a Kentucky address to pay a wholesale tax. On and after the effective date of the Act, the following 

rates shall apply for direct shipper sales: (1) for distilled spirits shipments, 11% for wholesale sales 

or sales at wholesale; and (2) for wine and beer shipments, 10% for wholesale sales or sales at 

wholesale. For direct shipper sales, if a wholesale price is not readily available, the direct shipper 

licensee shall calculate the wholesale price to be seventy 70% of the retail price of the alcoholic 

beverages. Gross receipts from sales at wholesale or wholesale sales shall not include sales made 

between a direct shipper licensee and a consumer located outside of Kentucky. An emergency is 

declared. House Bill 415 became law on March 12, 2021, when signed by the governor. 

www.KLC.org 

9


SB 15 

MICROBREWERIES 

Sponsor: Senator Julie Raque Adams (R–Louisville) 

Senate Bill 15 amends KRS 243.157 to expand the authority of a microbrewery license to permit the 

licensee to sell and deliver up to 2,500 barrels of malt beverages annually to any retail license holder 

without going through a distributor, provided that: (1) the microbrewery registers with the Department 

of Alcoholic Beverage Control any products sold and delivered that are not otherwise registered by a 

licensed distributor; and (2) the microbrewer notifies the distributor of any self-distribution delivery by 

electronic or other means. 

A new section of KRS Chapter 244 is created to set forth terms of contracts between microbreweries 

and distributors. As of the effective date of the Act, KRS 244.602 (requiring a three-tier system for the 

distribution and sale of malt beverages) and KRS 244.606 (relating to the contents of agreements 

among brewers, importers, and distributors) shall not apply to any new distribution agreement or 

the renewal of an existing distribution agreement between a distributor of malt beverages and a 

microbrewery. Any existing distribution agreement between a distributor of malt beverages and a 

microbrewery shall be deemed to renew upon the earlier of January 1, 2022, or the renewal date set 

forth in the existing agreement. 

Every distribution agreement providing for and specifying the rights and duties of a microbrewer 

and distributor with and regarding the sale of the products of the microbrewer shall be in writing. A 

distribution agreement between a microbrewer and a distributor shall not: (1) require the microbrewer 

or distributor to agree to renew the distribution agreement at the expiration of a term; (2) permit a 

microbrewer or distributor to terminate a distribution agreement without first providing written notice 

of any alleged deficiency and giving the other party 60 days from the date a notice of an alleged 

deficiency is received to cure the alleged deficiency; (3) permit the assignment of the distribution 

agreement, in part or in whole, without first obtaining the consent of the other party, which shall not 

be unreasonably withheld provided the assignee possesses the financial, technical, and operational 

skills necessary to perform under the distribution agreement; (4) permit the microbrewer or distributor 

to unilaterally amend a distribution agreement; (5) require a microbrewer or distributor to mediate 

or arbitrate disputes which may arise between them, though nothing shall prohibit the parties from 

resolving a dispute by retaining an independent mediator or arbitrator while equally sharing the 

cost; or (6) prohibit a microbrewer or distributor from litigating in state or federal courts located in 

Kentucky. 

A microbrewer may terminate a distribution agreement according to the terms of the agreement, 

or in any of the following instances: (1) the assignment or attempted assignment by the distributor 

for the benefit of creditors, the institution of proceedings in bankruptcy by or against the distributor, 

the dissolution or liquidation of the distributor, the insolvency of the distributor, or the distributor’s 

failure to pay for malt beverages in accordance with law; (2) the felony conviction of a distributor 

or any of its owners who participate in the distributor’s management that in the sole judgment of 

the microbrewer may adversely affect the goodwill or interests of the microbrewer; (3) fraudulent or 



discriminatory conduct of the distributor in any of its dealings with a microbrewery or a microbrewer’s 

products; (4) revocation or suspension for more than 31 days of the distributor’s federal basic permit 

or any state or local license required of the distributor for the normal operation of its business; 

(5) sale of malt beverages by a distributor outside its sales territory prescribed by the distribution 

agreement in accordance with KRS 244.585; (6) the distributor effectuates a change of ownership or 

possession of ownership interests, establishes a trust or other ownership interest, enters into buy-sell 

agreements, or grants an option to purchase an ownership interest without a microbrewer’s consent; 

or (7) in the case of a microbrewer whose products represent 5% or less of a distributor’s gross 

annual sales, by the giving of a 45-day notice of termination to the distributor and payment by the 

microbrewer to the distributor of reasonable compensation to buy back its saleable products upon 

return by the distributor, which shall be equivalent to the fair market value of the distributor’s total 

investment in the microbrewer’s products being terminated. If the parties are unable to agree on the 

fair market valuation, the dispute shall be resolved by arbitration. 

SB 67 

ALCOHOLIC BEVERAGES TO GO 

Sponsor: Senator John Schickel (R–Union) 

Senate Bill 67 creates new sections of KRS Chapter 243 to codify guidelines put in place in 2020 

to assist local businesses due to the economic impact of the state of emergency in response to 

COVID-19. New sections of KRS Chapter 243 are created to allow current license holders with the 

privilege of selling alcoholic beverages by the drink at retail to sell alcoholic beverages by the drink in 

a sealed container and by the package in sealed original containers on a delivery, to-go, or takeout 

basis in conjunction with the purchase of a prepared meal in quantities that a reasonable person 

would purchase with a meal. Deliveries, if applicable, shall be made by a person at least 21 years of 

age in a vehicle operated and owned by the licensee, the licensee’s employee, or an independent 

contractor or agent. Vehicles used for deliveries shall be exempt from displaying the name and 

license number of the retail licensee selling the alcoholic beverages being delivered. 

All licensees and their employees and independent contractors are prohibited from: (1) selling 

alcohol in bulk quantities; (2) completing sales in dry territories; and (3) delivering to a minor under 

21 years of age or to an intoxicated person. 

Alcoholic beverages to go shall be placed in a bag or other container that is secured in a manner 

that makes it visibly apparent if the container has been subsequently opened or tampered with 

and transported in a locked glove compartment or the trunk or other area that is not a passenger 

area. 

The Department of Alcoholic Beverage Control may, but is not required to, promulgate an 

administrative regulation that sets forth the conditions under which sales may take place, the days 

and times that sales may take place, and the requirements for transportation of alcoholic drinks to 

go. An emergency is declared. Senate Bill 67 became law on March 15, 2021, when signed by the 

governor. 


11

2) ANNEXATION 

SB 88 

CITY ANNEXATION FILINGS 

Sponsor: Senator Phillip Wheeler (R–Pikeville) 

Senate Bill 88, a KLC initiative, modernizes how cities file annexation documents with the Secretary 

of State after a boundary change. KRS 81A.470 is amended to require a city within 60 days of a 

boundary change to file with the Secretary of State: (1) a duly certified paper or electronic copy of 

the final ordinance that changed the city’s boundaries; (2) a map prepared by a professional land 

surveyor depicting the parcel annexed or severed in paper or electronic form; and (3) an electronic 

file containing a closed geometric figure depicting the territory being added or removed that is 

referenced to a Kentucky State Plane Coordinate System zone in any one of the following formats: 

AutoDesk AutoCAD DWG or DXF; Bentley MicroStation DGN; or ESRI ArcGIS Shapefile. If the 

electronic file is attached to an email, the email and all attached files shall not cumulatively exceed 

15 megabytes in size. 

KRS 81A.475 is amended to require a city within 60 days of the enlargement or reduction of its 

boundaries to file with the county clerk of the county in which the city is located a duly certified paper 

or electronic copy of the final ordinance that changed the city’s boundaries and a map meeting the 

specifications for maps set for in KRS 81A.470 prepared by a professional land surveyor depicting 

the parcel annexed or severed in paper or electronic form. 

The Senate State and Local Government Committee unanimously passed Senate Bill 88 on February 

25 after testimony from KLC Director of Public Affairs Bryanna L. Carroll and Senator Phillip Wheeler 

(R-Pikeville). 


2) ANNEXATION 

SB 274 

ANNEXATION INTO A THIRD COUNTY 

Sponsor: Senator Robert Stivers (R–Manchester) 

Senate Bill 274 creates a new section of KRS Chapter 81A to establish procedures for a city whose 

boundaries extend into two counties to annex territory in an additional county. The legislation 

allows a city wholly contained within two counties to annex territory in an additional county if the 

territory proposed to be annexed: (1) is adjacent or contiguous to the city’s boundaries at the time 

an annexation proceeding is begun; (2) is urban in character or suitable for development for urban 

purposes without unreasonable delay; (3) is not within the boundary of another incorporated city; 

(4) contains infrastructure owned by the city or any agency, political subdivision, department, or 

instrumentality of the city, including governing bodies of municipal utilities operating under KRS 

Chapter 96; (5) includes no territory that does not contain infrastructure owned by the city or any 

agency, political subdivision, department, or instrumentality of the city; and (6) each of the owners of 

record of the territory proposed to be annexed gives prior consent in writing to the annexation and 

the annexation proceeds under the provisions of KRS 81A.412. 

At least 30 days prior to adoption of an annexation ordinance under KRS 81A.412, the city shall 

provide notice of the proposed annexation by certified mail to the fiscal court of the county containing 

the territory to be annexed. The failure of the city to notify the fiscal court of the proposed annexation 

shall serve to void the ordinance annexing the territory. The notice shall contain, at a minimum: 

(1) a description of the territory to be annexed; (2) the projected date for passage of an ordinance 

annexing the territory; and (3) certification by the mayor of the city proposing the annexation that the 

city shall comply with the applicable requirements of KRS Chapter 81A related to annexation. 

KRS 61.197 is amended to establish a base revenue for license fees for counties if a city annexes 

territory in a county pursuant to this Act and both the city and the county levy a license fee. The 

county shall receive at least the same dollar amount of revenue that was generated in the preceding 

tax year by the county license fee. After the tax year in which the annexation occurs, if the revenues 

generated by both the city and county license fees for that territory decrease below the amount of 

revenue generated in that preceding tax year by the county license fee, then the revenue received 

by the county shall be reduced proportionately. Any increase in the license fee rate by the city or the 

county after the date of the annexation shall be subject to the crediting provisions contained in KRS 

61.197. 


13

3) COMMUNITY DEVELOPMENT 

HB 321 

WEST END OPPORTUNITY PARTNERSHIP 

Sponsor: Representative Brandon Reed (R–Hodgenville) 

House Bill 321 is a companion bill to House Bill 556 (2021). The legislation targets redevelopment 

of Louisville’s West End. New sections of KRS Chapter 65 are created to anticipate a tax increment 

financing (TIF) district in west Louisville comprised of the communities of Parkland, Shawnee, Park 

Duvalle, Russell, Portland, California, Chickasaw, Park Hill, Algonquin, and adjacent areas. The TIF 

district would last for 20 years and allow for new development in the area to be financed with future 

tax revenues from the increase in property values over base values and increased sales taxes. 

Eighty percent (80%) of new local and state tax revenues generated above a base level would be 

reinvested in the TIF district over time. 

The effort, known as the West End Opportunity Partnership, with spur reinvestment in the 

development area. The partnership will: (1) manage and support the revitalization of and investment 

in the development area with a focus on projects supported by residents and businesses within the 

development area; (2) encourage private investment in businesses and residential projects that 

will have a significant impact within the development area; (3) ensure that all projects include the 

employment of area residents, both in short-term construction jobs and long-term employment in 

businesses locating within the development area; and (4) ensure that all housing projects include 

affordable housing in accordance with federal guidelines for low-income families. 

The West End Opportunity Partnership shall be governed by a board. The board shall initially 

consist of the following members: (1) one member appointed by the governor; (2) one member 

appointed by the mayor of the consolidated local government; (3) one member of the legislative 

council of the consolidated local government appointed by its members; (4) a representative of the 

University of Louisville appointed by its board of trustees; (5) a representative of Simmons College of 

Kentucky appointed by its board of trustees; and (6) seven members appointed by the governor, one 

member each from the following organizations: (a) NAACP of Kentucky; (b) OneWest in Louisville; 

(c) Louisville Urban League; (d) Federal Reserve Bank in Louisville; (e) Volunteers of America in 

Louisville; (f) a locally based foundation with assets over $100 million; and (g) a bank with local 

assets greater than $1 billion. 

The board shall include in its bylaws a process for appointing one member from each of the nine 

neighborhoods comprising the development area. The head of economic development for the 

consolidated local government and the secretary of the Cabinet for Economic Development, or their 

designees, shall serve as nonvoting, ex officio members of the board. The majority of the board shall 

reflect the racial majority of the residents living in the development area. The board shall annually 

select a chair. 

A West End Advisory Council is additionally established as a subcommittee of the West End 

Opportunity Partnership. The council shall consist of one resident from each of the nine 

neighborhoods located within the development area to represent the communities in decisions on 

local projects and initiatives that will impact them directly. The council shall elect its own chairperson, 



adopt bylaws, and establish and evaluate goals and outcomes for economic development and 

housing issues in the development area. As a prerequisite to service, each member of the West 

End Advisory Council and each appointee to the board of the West End Opportunity Partnership 

shall participate in a board-sanctioned training program on the topics of community and economic 

development, finance, equity, community engagement, gentrification, and the implications of each 

concept. 

Pursuant to House Bill 556 (2021), prior to any development actions by the West End Opportunity 

Partnership, a combined total of $20 million shall be pledged by and received by the West End 

Opportunity Partnership from private sector investors and the Louisville Metro consolidated local 

government. Upon verification of receipt of the $20 million by the partnership, $10 million shall be 

appropriated by the Kentucky General Assembly. Beginning in the calendar year following receipt of 

the initial funds and continuing for 20 years, 80% of the incremental revenues in the tax increment 

financing district anticipated in House Bill 556 shall be pledged to the West End Opportunity 

Partnership by the consolidated local government and the commonwealth. 

A local tax increment financing participation agreement shall be executed between the West End 

Opportunity Partnership and the consolidated local government pledging incremental revenues 

to support implementation of the development plan. The governing body of the consolidated local 

government and the Department of Revenue shall release to the West End Opportunity Partnership 

local and state incremental tax revenues generated. 

The West End Opportunity Partnership shall provide a biennial report to the Interim Joint Committee 

on Appropriations and Revenue on or before August 1, 2023, and on or before August 1 of each 

odd-numbered year thereafter. The report shall include: (1) an accounting of moneys received from 

private sector investors, the consolidated local government, and the commonwealth, including 

the party that made the payment; (2) annual financial statements of the West End Opportunity 

Partnership, including the current balances of all funds and accounts; (3) the total amount of state tax 

revenues and local tax revenues received by the West End Opportunity Partnership for the preceding 

year categorized by each type of tax; (4) the operating expenditures incurred by the West End 

Opportunity Partnership, including management, investment, legal, or administrative fees incurred; 

(5) a list of the projects supported by investments from the West End Opportunity Partnership in 

the preceding year and a description of the investment amount contributed for each project; (6) 

the amount of bonds issued or other borrowed moneys received by the West End Opportunity 

Partnership; and (7) upon request from the General Assembly, copies of the bylaws and any 

contracts or agreements in which the West End Opportunity Partnership is a party. 

A new section of KRS Chapter 141 is created to establish in the development area an income 

tax credit available to owners of residential property in the area equal to the amount in which the 

property tax paid on the residential property in a taxable year exceeds the amount of property 

tax assessed on the residential property on January 1, 2021. The credit, an effort to help avoid 

gentrification of the area, basically freezes a homeowner’s property taxes at the 2021 level. The tax 

credit shall remain available to an owner of residential property, and to any heirs of the owner who 


15


inherit the property, for 20 years or until the residential property is sold by the owner. The West End 

Opportunity Partnership shall develop a program to assist homeowners residing in the development 

area to fill out returns or other paperwork required to claim the tax credit and, where needed, enable 

homeowners in the development area to timely pay property taxes by lending funds on a short-term 

basis until the refundable tax credit is returned to the homeowner. 

HB 556 

FUNDING WEST END OPPORTUNITY PARTNERSHIP 

Sponsor: Representative Danny Bentley (R–Russell) 

House Bill 556 is a companion bill to House Bill 321 (2021) relating to creation of the West End 

Opportunity Partnership targeting redevelopment of Louisville’s West End. Prior to any development 

actions by the partnership, a minimum investment of $20 million shall be pledged and received by 

the partnership from private sector investors and Louisville-Jefferson County Metro Government, with 

a minimum of $5 million pledged and received from Metro Government. 

Upon verification of receipt of $20 million by the West End Opportunity Partnership, general 

fund moneys in the amount of $10 million shall be appropriated by the General Assembly to the 

Department for Local Government for use by the West End Opportunity Partnership for revitalization 

of the development area. The Kentucky State Treasurer shall verify receipt by the partnership of the 

full $20 million prior to appropriation by the General Assembly of $10 million from the general fund. 

If the West End Opportunity Partnership does not receive the full $20 million prior to June 30, 2022, 

the General Assembly shall not appropriate $10 million from the general fund. 

SB 105 

ABANDONED AND BLIGHTED PROPERTY CONSERVATORSHIP 

Sponsor: Senator Robby Mills (R–Henderson) 

Senate Bill 105, a KLC initiative, creates new sections of KRS Chapter 99 to permit court 

appointment of a conservator to bring an abandoned and blighted property into compliance with 

applicable housing, building, and nuisance code requirements if certain conditions are met. An 

abandoned and blighted property is defined as a residential, commercial, or industrial building that 

has been continuously vacant for at least one year with significant conditions evidencing blight, 

including repeated housing, building, or nuisance code violations. 

“Conservator” means a competent entity appointed by a court to take possession of and rehabilitate 

an abandoned and blighted building. “Competent entity” is defined as a person or entity, including 

a nonprofit corporation, with experience in the rehabilitation of residential, commercial, or industrial 

buildings and the ability to provide or obtain the necessary financing for rehabilitation. 

As evidence of the blighted condition, the building must meet at least three of the following criteria: 



(1) the building has not been brought into compliance with the housing, building, or nuisance code 

requirements of the local government in which it is located within time constraints placed upon the 

owner by the appropriate code enforcement agency or agencies; (2) the building is unfit for human 

habitation, occupancy, or use; (3) the condition and vacancy of the building materially increases the 

risk of fire to the building and to adjacent properties; (4) the building, by reason of neglect or lack of 

maintenance, has become a place for the substantial accumulation of trash and debris or a haven 

for rodents or other vermin that create potential health and safety hazards; (5) the building is subject 

to unauthorized entry leading to potential health and safety hazards, and either the owner has failed 

to take reasonable and necessary measures to secure the building or the local government has 

secured the building in order to prevent such hazards after the owner has failed to do so; (6) the 

building is an attractive nuisance to children or for illicit purposes, including drug use and vagrancy; 

or (7) the building, because of its dilapidated appearance or other conditions, substantially negatively 

affects the economic well-being of residents or businesses in close proximity to the building. 

Certain properties are ineligible for conservatorship including property that has been legally occupied 

within the previous 12 months; property owned by the current owner for less than six months; 

property actively marketed within the previous 60 days; and property subject to a mortgage or 

pending foreclosure. If all criteria are met, a local government may file a petition with the circuit court 

in the county in which the building is located for appointment of a conservator to take possession of 

and rehabilitate the building with notice provided to all interested parties, including the owner of the 

building and any lienholders. 

Senator Robby Mills (R-Henderson) 

speaks on the Senate floor for passage 

of Senate Bill 105. 


17


The petition must include the name and last known address of the owner of the vacant property; 

copies of all code violations with proof of service; a preliminary plan for rehabilitation to bring the 

building into compliance with code requirements, including the current condition of the building, 

photographs, and initial cost estimates; anticipated funding sources; and an estimated timeline for 

completion. The petition must additionally include a recommendation as to which person or entity 

should be appointed conservator, including the qualifications of the person or entity. 

After the petition is filed, the court shall hold a hearing with notice provided to all interested 

parties. Any party can present evidence to support or contest the petition. The court may appoint a 

competent entity as conservator if the property meets the required conditions and the owner of the 

building has not come forward to make repairs. In appointing a conservator, the court may consider 

recommendations contained in the petition or presented by any interested party. 

If the court finds after a hearing that the conditions for conservatorship have been established but the 

owner represents that the conditions will be abated in a reasonable period, the court may allow the 

owner to proceed to remedy the conditions. If the owner proceeds, the court shall require the owner 

to post a bond in the amount of the repair costs estimated in the petition as a condition to retaining 

possession of the building. The court must also enter an order providing if the conditions are not 

abated by the owner by a specific date, or that other specified remedial activities have not occurred 

by a specific date or dates, an order appointing a conservator will be entered. 

Following appointment, a conservator must develop a final plan for rehabilitation of the building 

for submission to the court and all parties that can include everything from repairs to potential 

demolition. Any party can comment on or request a hearing on the final plan. Thereafter, the 

conservator must update the court and all interested parties every six months on the status of the 

project. 

Senator David Givens (R-Greensburg), 

Senator Robert Stivers (R-Manchester), and 

Representative David Osborne (R-Prospect). 

Photo courtesy LRC Public Information. 



The conservator shall have all powers and duties necessary to bring the building into compliance 

with all applicable housing, building, and nuisance code requirements. The conservator can provide 

the necessary funds for rehabilitation of the building, borrow money, or incur indebtedness to cover 

the costs of rehabilitation. To facilitate the borrowing of funds for the costs of rehabilitation, the 

court shall grant priority status to a lien given to secure payment on a debt incurred for purposes of 

rehabilitation. If funds are provided by the conservator, the conservator will be reimbursed upon sale 

of the property. 

After implementation of the final plan, the conservator shall submit to the court and all parties a full 

accounting of all actions taken and expenditures incurred. The conservator may then petition the 

court for authorization to sell the property. Any sale of the property is subject to the supervision and 

approval of the court. 

The court may order sale of the property if it finds the conditions that were the grounds for the 

petition have been corrected by the conservator, the owner has not successfully petitioned the 

court for termination of the conservatorship, and notice of the proposed sale and an opportunity for 

a hearing has been provided to all parties. If no party objects to the proposed sale or requests a 

hearing, the court may proceed without a hearing. 

The court may authorize sale of the property free and clear of all liens, claims, and encumbrances 

provided the proceeds of the sale are distributed in accordance with the following priorities: (1) 

costs and expenses of sale; (2) state and local government tax liens, unless priority is waived by a 

local government; (3) principal and interest on any borrowing or incurrence of indebtedness granted 

priority over existing liens and security interests; (4) costs of rehabilitation; (5) properly recorded local 

government code enforcement liens; (6) other valid liens and security interests in accordance with 

their priority; and (7) the owner. If the owner cannot be located, any proceeds from the sale which 

belong to the owner shall be presumed to be abandoned and unclaimed and shall be subject to the 

custody and control of the commonwealth. The conservator may thereafter petition the court for 

termination of the conservatorship. 

Senate Bill 205 has a delayed effective date of January 1, 2022. 


19

4) COVID-RELATED ACTIONS 

Note: House Bill 1, Senate Bill 1, and Senate Bill 2, enacted on February 2, 2021, and House 

Joint Resolution 77 are subject to litigation filed in Franklin Circuit Court. The court issued a 

temporary injunction, and as of April 15, 2021, House Bill 1, Senate Bill 1, Senate Bill 2, and 

House Joint Resolution 77 had no legal force pending further legal proceedings. 

HB 1 

OPERATING PLANS FOR REOPENING THE ECONOMY 

Sponsor: Representative Bart Rowland (R–Tompkinsville) 

House Bill 1 permits any business, for-profit or not-for-profit organization, local government, 

association, or any school or school district to remain open and operational through January 31, 

2022, notwithstanding any state law or executive order to the contrary, so long as it obtains and 

follows a comprehensive operating plan that: (1) meets or exceeds all applicable guidance issued by 

the Centers for Disease Control and Prevention (CDC) or the executive branch of state government, 

whichever is least restrictive; (2) details how the entity will foster the safety of employees, customers, 

attendees and patrons, including social distancing requirements; and (3) is posted in a conspicuous 

place on the main entrance door of the physical location of the entity as well as on its website, if a 

website exists. 

The House passed House Bill 1, sponsored by Representative Bart 

Rowland (R-Tompkinsville), on January 7. 




The business, for-profit or not-for-profit organization, local government, association, school, or school 

district may prepare the plan itself or utilize a plan prepared by a local or state government, local or 

state chamber of commerce, trade association, or any other recognized affiliated organization. No 

state or local agency shall enforce restrictions that exceed current applicable guidelines issued by 

the CDC or the executive branch of state government, whichever is least restrictive. 

Interest and penalties on unpaid employer contributions pursuant to KRS 341.300 shall not accrue, 

shall not be charged against an employer, shall not be considered due and owing, and shall not be 

collected by the Labor Cabinet through December 31, 2021. 

HJR 77 

EXTENSION OF COVID EMERGENCY ACTIONS 

Sponsor: Representative David Osbourne (R–Prospect) 

House Joint Resolution 77 ratifies and extends in whole or in part eight executive orders issued 

by the governor and many specific orders and administrative regulations that relate to the state’s 

response to the COVID-19 pandemic. Senate Bill 1 (2021) limits the orders to 30 days unless the 

General Assembly approves an extension. The resolution extends some of the emergency actions 

and regulations for 90 days and others for 30 days from the effective date of the Act. 

The Resolution has no immediate force or effect pending litigation currently pending in the Franklin 

Circuit Court. 

SB 1 

LIMITATION OF EMERGENCY ORDERS 

Sponsor: Senator Matt Castlen (R–Owensboro) 

Senate Bill 1 amends KRS 39A.090 to limit to 30 days executive orders, administrative regulations, 

or other directives issued by the governor under the provisions of KRS Chapter 39A relating to 

statewide emergency management programs unless the General Assembly approves an extension, 

modification, or termination. The measure applies to any executive order or directive that (1) places 

restrictions on (a) the in-person meeting or functioning of elementary, secondary, or postsecondary 

educational institutions; (b) private businesses or nonprofit organizations; (c) political, religious, 

or social gatherings; (d) places of worship; or (e) local governments; or (2) imposes mandatory 

quarantine or isolation requirements. 

Upon expiration of an executive order or other directive declaring an emergency, the governor shall 

not declare a new emergency or continue to implement any of the powers enumerated in KRS 

Chapter 39A based upon the same or substantially similar facts and circumstances as the original 

declaration without General Assembly approval. The General Assembly, by joint resolution, may 

terminate an emergency declaration at any time. 


21


KRS 39A.100 is amended to require the governor to report to the General Assembly, if in session, 

or to the Legislative Research Commission if the General Assembly is not in session. The governor 

must include on a form provided by the Commission: (1) all expenditures relating to contracts issued 

during the emergency under any provision for which a state agency does not solicit bids or proposals 

for a contract; and (2) all revenues received from the federal government in response to the declared 

emergency, any expenditures or expenditure plan for the federal funds, the state agency or program 

that was allocated the federal funds, and any state fund expenditures required to match the federal 

funds. The report must be filed within 30 days of a declared emergency and every 30 days thereafter. 

Senator Matt Castlen (R-Owensboro) discusses 

Senate Bill 1 with the Senate State and Local 

Government Committee on January 6. 


SB 2 

LIMITATION OF EMERGENCY REGULATIONS 

Sponsor: Senator Stephen West (R–Paris) 

Senate Bill 2 amends various provisions of KRS Chapter 13A to add requirements for promulgation 

of emergency administrative regulations. An administrative body must clearly demonstrate, through 

documentary evidence submitted with the filing of an emergency administrative regulation, that the 

regulation must be placed into effect immediately in order to: (1) meet an imminent threat to public 

health, safety, welfare, or the environment; (2) prevent an imminent loss of federal or state funds; (3) 

meet an imminent deadline for the promulgation of an administrative regulation that is established by 

state statute or federal law; or (4) to comply with an executive order issued under KRS Chapter 39A. 

An emergency administrative regulation is temporary in nature and will expire or be replaced by an 

ordinary administrative regulation. 



Senate Bill 2 amends KRS 214.020, relating to administrative regulations promulgated by the 

Cabinet for Health and Family Services necessary to prevent the introduction or spread of infectious 

or contagious disease or diseases. Any administrative regulation promulgated under KRS 214.020 

could be in effect no longer than 30 days if the administrative regulation places restrictions on 

the in-person meeting or functioning of: (1) elementary, secondary, or postsecondary educational 

institutions; (2) private businesses or nonprofit organizations; (3) political, religious, or social 

gatherings; or (4) places of worship, or if the administrative regulation imposes mandatory quarantine 

or isolation requirements. The administrative regulation must include the penalty and appeal and due 

process rights for violation of the regulation. 

The bill also includes a KLC initiative stating that the Administrative Regulation Review 

Subcommittee may determine that an administrative regulation is deficient if the agency enacting or 

requesting the regulation did not property notify impacted parties. 

Senator Steve West (R-Paris) testifies for Senate Bill 2 in the 

January 6 Senate State and Local Government Committee. 


SB 5 

LIABILITY PROTECTIONS 


Senate Bill 5 creates a new section of KRS Chapter 39A to provide liability protections for owners 

of businesses and providers of essential services against any COVID-related claim for an act or 

omission arising from COVID-19 that accrued on or after an emergency was declared on March 

6, 2020, and until the emergency declaration is withdrawn, is revoked, or lapses. “Arising from 

COVID-19” is defined to mean an injury or harm caused by or resulting from the actual, alleged, or 

possible exposure to, transmission of, or contraction of COVID-19, or services, treatment, or other 

action performed to limit or prevent the spread of COVID-19. 


23


Any essential service provider during the declared emergency of the COVID-19 pandemic shall not 

be liable for any COVID-19 claim. However, nothing limits any liability of an essential service provider 

for gross negligence or wanton, willful, malicious, or intentional conduct. Essential service providers 

shall be considered an agent of the commonwealth for the limited purpose of providing essential 

services arising from COVID-19. Essential service providers include local government agencies 

and political subdivisions; organizations that provide charitable and social services; health care 

providers; elementary and secondary schools, whether public or private; child care service providers; 

home-based care and services; individuals and businesses that produce, supply, prepare, and sell 

food; individuals and businesses needed for transportation; financial institutions; mail and shipping 

services; as well as other entities. 

Portions of the Act pertaining to liability protection are retroactive to the declaration of an emergency 

on March 6, 2020, and they shall be repealed effective December 31, 2023. Any COVID-19 claim for 

personal injury against an essential service provider shall be brought within the time set out in KRS 

413.149. If any part of the Act is held unconstitutional, the remaining parts shall remain in force. 

An emergency is declared. Senate Bill 5 became law on April 11, 2021. 

Senator Robert Stivers (R-Manchester) 

speaks on the floor. 



5) ECONOMIC DEVELOPMENT 

HB 249 

FILM INDUSTRY TAX CREDIT 


House Bill 249 amends KRS 141.383 to reinstate the film industry tax credit for film and television 

production in Kentucky with a $75 million annual cap for calendar year 2022 and each year 

thereafter. Beginning January 1, 2022, to qualify for the refundable credit, all applicants must begin 

production within six months of filing an application and complete production within two years of 

their production start date. A new subchapter 61 of KRS Chapter 154 moves the application and 

approval process related to the film industry tax credit to the Economic Development Cabinet from 

the Tourism, Arts, and Heritage Cabinet effective January 1, 2022. 

HB 249 

QUALIFIED NONRESIDENT EMPLOYEES 


House Bill 249 creates a new section of KRS 154, subchapter 20 to give the secretary of the Cabinet 

for Economic Development the authority to consider for review applications to the Cabinet for tax 

incentives under subchapters 12, 22, 23, 24, 25, 26, 27, 28, 32, or 34 of KRS Chapter 154 a resident 

of one of Kentucky’s seven bordering states as a qualified employee for a new full-time position 

essential to an approved economic development project in Kentucky no more than 25 miles from the 

boundary line of the bordering state. 

HB 320 

BROADBAND DEPLOYMENT 

Sponsor: Representative Brandon Reed (R–Hodgenville) 

House Bill 320 as amended by House Bill 382 (2021) creates a new section of KRS Chapter 278 

to allow rural electric cooperatives regulated by the Public Service Commission to qualify for funds 

through Kentucky’s Broadband Deployment Fund for deployment of broadband service through an 

affiliate to unserved and underserved households and businesses. The measure builds on legislation 

the General Assembly passed in 2020 that established the Broadband Deployment Fund in the State 

Treasury. The Kentucky Infrastructure Authority administers the fund to provide grants to government 

agencies and private sector entities to construct infrastructure for the deployment of broadband 

service to unserved and underserved areas. Rural electric cooperatives may access and leverage 

federal funding to extend and enhance the availability of broadband service in Kentucky to residents 

who are currently unserved or underserved. 

“Unserved area” is defined by the legislation to mean any project area where fixed, terrestrial 

broadband service with a minimum of 10 megabits per second downstream and one megabit per 

second upstream is not available. “Underserved area” means any project area where fixed, terrestrial 


25


broadband service with a minimum of 25 megabits per second downstream and three megabits per 

second upstream is not available. 

“Affiliate” is defined by KRS 278.010 to mean a person who controls or is controlled by, or is under 

common control with, a utility. “Person” includes natural persons, partnerships, corporations, and two 

or more persons having a joint or common interest. 

A rural electric cooperative, known as a distribution cooperative under KRS Chapter 279, may 

facilitate the operation of an affiliate engaged exclusively in the provision of broadband service to 

unserved or underserved households and businesses by: (1) leasing excess capacity on any fiber 

optic cable used to support the distribution cooperative’s distribution system; (2) issuing securities or 

evidences of indebtedness in an amount not to exceed 25% of the net book value of its assets, the 

proceeds of which shall be used for the exclusive purpose of capitalizing the affiliate; or (3) pledging 

up to 25% of the net book value of its assets as collateral for a loan entered into by the affiliate for 

the purpose of providing broadband services. The Public Service Commission is required to approve 

the leasing of excess capacity, the issuing of securities or evidences of indebtedness, or the pledging 

of assets upon a finding the proposal is in the public interest. The commission is additionally required 

by the legislation to promulgate administrative regulations prior to December 31, 2021, regarding 

attachments to poles under its jurisdiction, including those necessary for the provision of broadband 

service. 

The legislation appropriates $250 million in federal funds in Fiscal Year 2021-2022 to the Broadband 

Deployment Fund to provide grants to government agencies and private entities to deploy broadband 

service in unserved and underserved areas. No more than $50 million can be awarded before April 

1, 2022. Funding for projects shall be awarded based on the following criteria in the order listed: (1) 

projects in underserved areas or unserved areas where local, state, or federal broadband funds are 

not currently designated; (2) projects within underserved areas or unserved areas where local, state, 

or federal broadband funds are inadequate; and (3) projects that reach the customers that are the 

least economical to serve. 

The legislation additionally appropriates federal funds from the State Fiscal Recovery Fund of 

the American Rescue Plan Act in the amount of $50 million in Fiscal Year 2020-2021 to be used 

for projects that provide broadband service in furtherance of securing economic development 

opportunities for commercial and industrial customers. 

All funded projects will require a match of not less than 50% of the total project cost, which can be 

private funds or from a city, county, urban county government, or consolidated local government. A 

request for proposals shall be issued for projects. 

The agency administering the broadband deployment fund shall promulgate administrative 

regulations to develop a process for receiving and recording complaints relating to insufficient 

broadband service; reporting information collected; and referring complaints to the Office of the 

Attorney General, Federal Communications Commission, or Federal Trade Commission, as 

appropriate. 



The agency shall additionally report to the Legislative Research Commission on a quarterly basis, 

beginning October 1, 2021, and the first day of each quarter thereafter, the following information: the 

location, by county, for each consumer complaint related to insufficient broadband service, including 

a brief description of the complaint; the broadband provider; the response of the broadband provider; 

whether the complaint was resolved to the satisfaction of the consumer; and whether a referral was 

made to the Office of the Attorney General, Federal Communications Commission, or Federal Trade 

Commission. 

An emergency is declared. House Bill 320 as amended by House Bill 382 became law on March 30, 

2021, when delivered to the secretary of state. 

Representative Brandon Reed 

(R-Hodgenville) in committee. 


HB 382 

REGIONAL DEVELOPMENT AGENCY ASSISTANCE FUND 

Sponsor: Representative Richard Heath (R–Mayfield) 

House Bill 382 amends KRS 96.895 and 96.905 to revise the distribution formula and permitted use 

of funds in the Regional Agency Assistance Fund. The fund currently receives $6 million per year 

from the Tennessee Valley Authority (TVA) by way of the General Fund for use by cities, counties, 

and school districts within fund-eligible Kentucky counties in the TVA service area. The payment is 

made to the eligible counties by TVA in-lieu of payment of property taxes. KRS 96.895 is amended to 

require the funds to be distributed equally among the approximately 14 fund-eligible counties. 

KRS 96.905 is amended to prohibit the use of funds distributed by the Regional Development 

Agency Assistance Program for operational expenses and to require applications for grants from 

the Regional Development Agency Assistance Fund as administered by the Department for Local 

Government to be made by the legislative bodies of one or more counties entitled to receive money. 

Applications must include any recipient agency as a co-applicant and a concurrence letter from each 

legislative body entitled to receive money. 


27


Senator Mike Nemes (R-Shepherdsville) 

speaks on the Senate floor. 


SB 146 

EMPLOYMENT OFFICES 

Sponsor: Senator Mike Nemes (R–Shepherdsville) 

Senate Bill 146 repeals KRS 151B.285 and reenacts it as a new section of KRS Chapter 336 

to transfer administration and supervision of state employment offices from the Education and 

Workforce Development Cabinet to the Labor Cabinet and requiring the creation of regional 

employment offices. Twelve regional full-time, free public employment offices shall be open, fully 

operational, and staffed by properly trained unemployment insurance specialists on or before 

April 15, 2021, in each of the regions where the secretary has determined there is an average 

unemployment rate above 5% for the preceding six-month period ending either on June 30 or 

December 31. The Labor Cabinet may, at its discretion, open and operate additional free public 

employment satellite offices on a full or partial schedule. 

An emergency is declared. Senate Bill 146 became law on April 5, 2021, when signed by the 

governor. 


6) EMERGENCY SERVICES 

HB 44 

MENTAL HEALTH SERVICES FOR FIREFIGHTERS 

Sponsor: Representative Kim Banta (R‒Fort Mitchell) 

House Bill 44 amends KRS 210.365 to make firefighters eligible for crisis intervention team training 

(CIT) along with law enforcement officers currently eligible for CIT training. “Crisis intervention team 

training” means a 40-hour training curriculum based on best practices for intervention with persons 

who may have a mental illness, substance use disorder, an intellectual disability, developmental 

disability, or dual diagnosis that meets requirements approved by the Kentucky Fire Commission and 

the Kentucky Law Enforcement Council. 

KRS 95A.220 is amended to designate funds within the Firefighters Foundation Program Fund 

administered by the Fire Commission for reimbursement of costs incurred by a firefighter for 

treatment of a post-traumatic stress injury or post-traumatic stress disorder diagnosed by a 

psychiatrist, psychologist, or certified professional counselor caused by an event, or an accumulation 

of events, that occurred in the course and scope of his or her employment as a full-time career or 

volunteer firefighter, regardless of whether or not there is an initial physical injury. Post-traumatic 

stress injury and post-traumatic stress disorder shall be defined as set out by the American 

Psychiatric Association’s Diagnostic and Statistical Manual of Mental Disorders. A post-traumatic 

stress injury that arises solely from a legitimate personnel action such as transfer, promotion, 

demotion, or termination shall not be considered a compensable injury. 

Following diagnosis, if a firefighter seeks mental health treatment, he or she may submit to the Fire 

Commission corresponding receipts for reimbursement of medical bills paid by the firefighter after 

use of in-network health insurance. Receipts may be submitted for a period of 12 months from the 

time a firefighter seeks mental health treatment. Reimbursement shall be made from moneys in the 

Firefighters Foundation Program Fund allocated for firefighter mental health treatment. 

HB 120 

CONSOLIDATED EMERGENCY SERVICES DISTRICTS 

Sponsor: Representative Ed Massey (R–Hebron) 

House Bill 120 creates new sections of KRS Chapter 75A to establish processes for forming a 

consolidated emergency services district. A new consolidated emergency services district may be 

formed by one of the following: 

(1) The boards of any two or more fire protection districts established under KRS Chapters 

75 or 273, any special district whose services are subject to the licensure provisions of KRS Chapter 

311A, or any rescue squads established under KRS Chapter 39F adopting a resolution agreeing to 

and requesting the creation of a consolidated emergency services district; or 

(2) The boards of any fire protection districts established under KRS Chapters 75 or 273, any 

special district whose services are subject to the licensure provisions of KRS Chapter 311A, or any 

rescue squads established under KRS Chapter 39F that have merged within the five years prior to 

the effective date of this Act that would have been eligible to consolidate under the provisions of this 


29


Act adopting a resolution agreeing to the formation of a consolidated emergency services district and 

requesting the creation of a consolidated emergency services district. 

Upon adoption of resolutions, the governing bodies shall notify the county fiscal court or consolidated 

local government with jurisdiction over the proposed district and request the formation of a 

consolidated emergency services district. Any county fiscal court or consolidated local government 

on receipt of a request from two or more fire protection districts, special districts whose services 

are subject to the licensure provisions of KRS Chapter 311A, or rescue squads established under 

KRS Chapter 39F may create a consolidated emergency services district in their jurisdiction by 

adopting an ordinance approving the establishment of a consolidated emergency services district 

and authorizing any relevant fire protection district to join if its governing authority has approved it 

to join the consolidated district. The ordinance shall describe the boundaries by metes and bounds 

and name the consolidated district. No consolidated emergency services district shall take effect less 

than 60 days from completing the required elements for establishing the district. 

The county fiscal court or consolidated local government shall notify all planning commissions, cities, 

and area development districts within whose jurisdiction the approved service area is located and 

any state agencies required by law to be notified of the proposal for the creation of the taxing district 

within 30 days from adopting the ordinance authorizing creation of the district. The creation of a 

consolidated emergency services taxing district shall be of legal effect only after a certified copy of 

the ordinance creating the taxing district is filed with the county clerk. 

Upon passage of an ordinance by the county fiscal court or consolidated local government creating 

the district, the affairs of the district shall be conducted by a board of trustees consisting of seven 

members, four to be elected by the members of the district and three to be appointed by the county 

judge/executive or chief executive officer of the county. Two members of the board shall be elected 

by the firefighters from the departments within the district who shall be active firefighters within 

the district. Two members shall be property owners of real or personal property subject to the fire 

protection tax pursuant to KRS 75.040 who shall be elected by the property owners of the district, 

reside in the district, and not be active firefighters. The county judge/executive of the county in which 

the district is located shall, with the approval of the fiscal court, appoint three members of the board. 

Appointment and election of trustees to a newly created district shall be completed within 60 days of 

the passage of the ordinance creating the district. 

The board shall meet at least once a month at a time and place designated by the board and all 

meetings shall be open to the public. The chief of the consolidated emergency services district shall 

be appointed by the board to manage the affairs of the district, subject to directives and guidance 

from the board. He or she shall attend all sessions of the board and execute all orders of the board. 

Upon the creation of a district, the trustees of a district are authorized to provide fire services, 

emergency medical services subject to KRS Chapter 311A, or rescue services pursuant to KRS 

Chapter 39F and to levy a tax upon the property in the district. The property taxed shall be subject 

to county tax, and the tax levied by the board upon creation of the district shall be approved by the 



county fiscal court or consolidated local government having jurisdiction over the district at the time of 

passage of the ordinance creating the district. The tax shall not exceed $0.10 per $100 of assessed 

valuation as assessed for county taxes for the purpose of defraying the expenses for the provision of 

fire services or rescue services. 

The district that establishes and operates an emergency ambulance service and is the primary 

service provider in the district may levy a tax upon the property in the district. The tax to be levied 

shall be proposed by the board and approved by the county fiscal court or consolidated local 

government having jurisdiction over the district. The tax shall not exceed $0.20 per $100 of valuation 

as assessed for county taxes for the purpose of defraying the expenses of the provision of fire 

services, emergency medical services, or rescue services. 

The board of trustees, upon assumption of office, shall assume all the duties, responsibilities, and 

liabilities of all previous entities that have been merged into the district. The territories of former 

districts and unincorporated territory shall become special taxing districts until their indebtedness has 

been relieved. Any agreements established by former entities now merged into the district for the 

provision of services outside the district as established shall remain in effect for terms of service and 

duration as the agreement created has specified. 

If a majority of the entities that entered into a consolidated emergency services district were 

participating employers in the County Employees Retirement System (CERS) prior to entering into 

the district, the district shall apply to become a participating member in CERS in accordance with 

KRS 78.530. If the district is not required to apply to participate in CERS or does not voluntarily 

apply to participate in CERS, any employee who was participating in CERS through an entity that 

is entering into or petitioning to join in a consolidated emergency services district shall remain a 

participating employee in CERS in the existing retirement tier and hazardous duty classification for 

the remainder of his or her employment with the district. 

Representative Jason Petrie (R-Elkton) speaks with 

Representative C. Ed Massey (R-Hebron) in the House. 



31

7) ENVIRONMENTAL PROTECTION 

HB 249 

PETROLEUM STORAGE TANKS 


House Bill 249 amends KRS 224.60-142 to extend the registration of petroleum storage tanks 

through July 15, 2025. 

HB 303 

UNDERGROUND FACILITY PROTECTION 

Sponsor: Representative Sal Santoro (R–Florence) 

House Bill 303 amends several provisions of KRS 367.4901 to 367.4917 relating to underground 

facility protection and operation of the Kentucky Contact Center. Most municipal utilities maintain 

their own notification centers for locate requests and are not operator members of the Kentucky 

Contact Center. House Bill 303 does not mandate membership by municipal utilities, but provisions 

in House Bill 303 relating to the operation of protection notification centers apply to municipal utilities 

that maintain a notification center. “Protection notification center” is defined to mean an operatorprovided 

notification center through which an excavator can contact the operator to enable the 

operator to provide the excavator with the approximate location of underground facilities. 

KRS 367.4909 is amended to expand the two-day permissible time in which to provide a positive 

response to a facility locate request to include any time prior to the scheduled excavation start date 

if agreed upon by an operator and an excavator, excluding large project requests, design information 

requests, emergency locate requests, and unmapped facilities. “Positive response” is defined as 

an automated or written communication system provided by each protection notification center 

for all locate requests the center receives that allows excavators, locators, operators, and other 

interested parties to determine the status of locating an underground facility and requires response 

and verification by operators and excavators to comply with their respective requirements under the 

Underground Facility Damage Prevention Act of 1994. 

KRS 367.4911 is amended to define procedure if an operator fails to give a positive response to a 

locate request within the time provided. The excavator must submit a second notice to the protection 

notification center. If an operator fails to give a positive response to a second request within one 

working day of receipt, an excavator that has fully complied shall not be deemed liable for any 

damages to an underground facility that would have been located if the operator had complied with 

its duties under the Act, except for damages to a person or an underground facility due to negligence 

or intentional misconduct of an excavator. This provision shall not apply to any underground facility 

used to transport gas or hazardous liquid subject to federal pipeline safety laws. 

KRS 367.4913 is amended to require protection notification centers to maintain locate request 

information for five years and provide, in addition to current requirements: (1) an emergency 

contact number for incidents occurring outside the working day; (2) a positive response system for 

excavators, locators, operators, and other interested parties to determine the status of locating an 


7) ENVIRONMENTAL PROTECTION 

underground facility; (3) an identification number for each location request and the names of the 

facility owners or operators to be notified; (4) contact information for the protection notification center 

on its website; and (5) public awareness education and damage prevention programs in the manner 

and amount determined by each protection notification center. 

House Bill 303 has a delayed effective date of January 1, 2022. 

SB 86 

REGULATION OF OPEN DUMPS 

Sponsor: Senator Phillip Wheeler (R–Pikeville) 

Senate Bill 86 amends KRS 224.40-100 and KRS 30A.190 to provide options for cleanup of open 

dumps by local governments. A local government that has not established a code enforcement board 

may adopt an ordinance to prohibit open dumping and impose a civil fine of not less than $250 and 

not more than $500 on any person who transports or disposes of waste at any site or facility that 

does not have a waste disposal permit issued by the Energy and Environment Cabinet. Penalties 

shall be imposed by the district court in the county where the offense occurred, collected by the 

circuit court clerk, and transferred in their entirety to the treasurer of the county in which the offense 

occurred to be used for the abatement, cleanup, and restoration of the open dump site. The owner, 

occupant, or person having control or management over the property shall not be penalized if he 

or she did not generate the waste or knowingly allow the disposal of solid waste on the property 

and has made reasonable efforts to prevent the disposal of solid waste by other persons onto the 

property. 

KRS 65.8808 is amended to expressly include littering and open dumping of solid waste as offenses 

subject to enforcement by a local government code enforcement board. 

KRS 224.99.010 is amended to require fines imposed and collected under the environmental 

protection statutes for depositing leaves, clippings, prunings, garden refuse, or household waste 

materials in any litter receptacle to be transferred to the county treasurer where the offense occurred 

and placed in a fund for solid waste cleanup. 

KRS 431.100 is amended to require 60% of fines collected for violation of KRS 512.070 (criminal 

littering), 433.753 (criminal littering on public highways), and 433.757 (criminal littering on public 

waters) to be transferred by the circuit clerk to the treasurer of the county in which the offense 

occurred for the cleanup and abatement of litter and open dumps, and 40% to the agency that issued 

the citation. 

Nothing in Senate Bill 86 shall limit the authority of the Energy and Environment Cabinet to regulate 

the transport, permitting, or disposal of solid waste. 


33

8) HISTORIC PRESERVATION & COMMEMORATION 

HB 249 

HISTORIC TAX CREDIT PROJECTS 


House Bill 249 as amended by House Bill 321 (2021) creates a new section of KRS Chapter 171 to 

authorize the Kentucky Heritage Council to award one application prior to December 31, 2021, for 

preliminary approval of a major certified rehabilitation for a tax credit against the individual income, 

corporate income, or limited liability entity taxes imposed pursuant to KRS 141.020, 141.040, or 

141.0401. “Certified rehabilitation” means a completed substantial rehabilitation of a certified historic 

structure that meets the United States Secretary of the Interior’s Standards for Rehabilitation. 

The major certified rehabilitation must contain the following characteristics: (1) historic structure 

listed on the National Register of Historic Places on or before December 31, 1981; (2) size exceeds 

300,000 square feet; and (3) total project costs exceed $50 million. Substantial rehabilitation of the 

structure must begin prior to December 31, 2021. The application for preliminary approval must 

reflect that following substantial rehabilitation, the certified historic structure will be used as a hotel, 

tourism destination, or other use supporting or relating to the promotion of tourism to and within the 

commonwealth. The proposed project is reported to be the Seelbach Hotel in Louisville. 

The tax credit is limited to the first $30 million of qualified rehabilitation expenses as defined in KRS 

171.397.House Bill 249 additionally amends KRS 171.396 to increase the annual tax credit cap for 

rehabilitation of a historic structure from $5 million to $100 million for applications received on or 

after April 30, 2022, with 25% of the credit cap to be awarded to owner-occupied residential property 

and 75% to property other than owner-occupied residential property, including a major certified 

rehabilitation project. The major certified rehabilitation shall be considered in determining whether the 

certified rehabilitation credit cap has been met. 

HB 556 

250th ANNIVERSARY COMMEMORATION COMMISSIONS 

Sponsor: Representative Danny Bentley (R–Russell) 

House Bill 556 creates new sections of KRS Chapter 448 to establish three historic commemoration 

commissions to recognize historic events in Kentucky’s early history: the Harrodsburg 

Sestercentennial Commission, Kentucky State Parks Centennial Commission, and the Kentucky 

Sestercentennial Commission. 

Harrodsburg Sestercentennial Commission 

The Harrodsburg Sestercentennial Commission is established to plan, develop, and coordinate 

events and other activities related to the 250th anniversary in 2024 of the founding of Harrodsburg. 

The commission shall be attached to the Kentucky Historical Society for administrative purposes. 

To accomplish its charge, the commission shall: (1) plan and implement events for a yearlong 

sestercentennial commemoration in the year 2024; (2) assist local governments and their 

representatives with planning, preparation, and grant applications for sestercentennial events and 

projects; (3) seek funding sources; (4) coordinate federal, state, local, and nonprofit organizations’ 

sestercentennial activities occurring in Kentucky; (5) create press, print, and electronic contacts to 

generate related stories on a continual basis; (6) create a call for papers on how the history of the 

settlement impacted American history; (7) evaluate the existing infrastructure of Old Fort Harrod 


8) HISTORIC PRESERVATION & COMMEMORATION 

State Park and provide recommendations for what infrastructure should be in place for the successful 

undertaking of appropriate events and activities; (8) ensure adequate wayfinding signage and 

mapping to mark and identify Old Fort Harrod State Park; and (9) perform other duties necessary to 

highlight the sestercentennial commemoration. 

The commission shall consist of the secretary of the Education and Workforce Development Cabinet; 

secretary of the Transportation Cabinet; two members from the Tourism, Arts and Heritage Cabinet; 

one member each from the Kentucky Heritage Council, Kentucky Humanities Council, Harrodsburg 

250th, Inc., and Friends of Fort Harrod; and three citizen members appointed by the governor, one of 

whom shall be designated as chair. 

Kentucky State Parks Centennial Commission 

The Kentucky State Parks Centennial Commission is established to plan and implement events 

to celebrate the 100th anniversary of the state parks system in 2024. To accomplish its charge, 

the commission shall assist local governments and organizations with planning, preparation, and 

grant applications for centennial events and projects; seek funding sources; coordinate events and 

activities; establish press, print, and electronic contacts to continually generate related stories; and 

perform other duties necessary to highlight Kentucky’s parks system during its 100th year. The 

commission shall be attached to the Tourism, Arts, and Heritage Cabinet for administrative purposes. 

The commission shall consist of the secretary and one additional member from the Tourism, Arts, 

and Heritage Cabinet; one member each from the Kentucky Historical Society and Kentucky Heritage 

Council; three members selected by the secretary of the Tourism, Arts, and Heritage Cabinet who 

work in onsite park leadership; and two citizen members appointed by the governor, one of whom 

shall be designated as chair. 

Kentucky Sestercentennial Commission 

The Kentucky Sestercentennial Commission is established to plan and implement events to celebrate 

the 250th anniversary of the founding of Old Fort Harrod in 1774 to the Declaration of Independence 

in 1776. Celebrations include the founding of Harrodsburg in 1774, the opening of Boone Trace in 

1775, the genesis of the westward movement, and events tied to the nation’s founding in 1776. The 

commission shall be attached to the Kentucky Historical Society for administrative purposes. 

The commission shall coordinate events for a three-year commemoration in the years 2024 to 2026 

that emphasize Kentucky’s role in the events occurring 1774 to 1776 and the impact of Kentucky and 

its citizens on the nation’s history. The commission shall additionally assist local governments with 

planning, preparation, and grant applications for sestercentennial events and activities; seek funding 

sources; establish press, print, and electronic contacts to continually generate related stories; and 

perform other duties necessary to highlight the sestercentennial. 

The commission shall consist of the secretary of the Education and Workforce Development Cabinet; 

commissioner of the Department of Parks; president of Friends of Boone Trace; president of Fort 

Boonesborough Foundation; one member each from the Kentucky Heritage Council, Kentucky 

Humanities Council, Kentucky Historical Society, Friends of Fort Harrod, Kentucky Native American 

Heritage Commission, and Kentucky African American Heritage Commission; and three citizen 

members appointed by the governor, one of whom shall be designated as chair. 


35

9) LAW ENFORCEMENT 

HB 105 

MISSING PERSONS 

Sponsor: Representative Deanna Frazier (R‒Richmond) 

House Bill 105 amends KRS 39F.180 to require any search for a missing person initiated by 

any agency ‒ including but not limited to local law enforcement, the Kentucky State Police, fire 

departments, rescue squads, and emergency management ‒ that is not considered a Golden 

Alert (impaired person) or Green Alert (veteran at risk) to be reported to the Division of Emergency 

Management by telephone or radio within four hours of initiation. The local search and rescue 

coordinator, emergency management director, or a designee must make the notification. 

Any agency searching for a lost or missing person shall utilize existing resources, including but 

not limited to electronic highway signs; the Amber Alert System; law enforcement communications 

systems; electronic media; local, regional, and statewide media providers; and the Integrated Public 

Alert and Warning System, if authorized and under conditions permitted by the federal government. 

The duty officer of the Division of Emergency Management shall contact the Transportation Cabinet if 

the local search coordinator determines the use of electronic highway signs will aid in the search and 

is in the best interest of the missing person. 

The Transportation Cabinet shall promulgate administrative regulations to develop a written standard 

operating procedure for handling and reporting requests made by the duty officer of the Division 

of Emergency Management to initiate the use of electronic highway signs as part of a search for a 

missing, lost, or overdue person. The standard operating procedure shall be a public record. 

SB 4 

NO-KNOCK WARRANTS 


Senate Bill 4 creates new sections of KRS Chapter 455 governing warrants authorizing entry without 

notice to establish procedures and requirements for issuance of both search warrants and arrest 

warrants authorizing entry without notice. The legislation prohibits issuance of an arrest warrant 

or search warrant authorizing entry without notice unless the court finds by clear and convincing 

evidence that: 

1. The crime alleged is a crime that would qualify a person, if convicted, as a violent offender 

under KRS 439.3401 in relation to eligibility for parole; the crime alleged is a crime 

designated in KRS 525.045, 527.200, 527.205, or 527.210 related to terrorism or the use 

of a weapon of mass destruction; or the evidence sought may give rise to the charge of a 

crime that would qualify a person, if convicted, as a violent offender under KRS 439.3401 

or may give rise to a charge of a crime designated in KRS 525.045, 527.200, 527.205, or 

527.210 related to terrorism or use of a weapon of mass destruction; 

2. The giving of notice prior to entry will endanger the life or safety of any person or result in 

the loss or destruction of evidence sought that may give rise to a charge of a crime that 



would qualify a person, if convicted, as a violent offender under KRS 439.3401 or may give 

rise to a charge of a crime designated in KRS 525.045, 527.200, 527.205, or 527.210; 

3. The law enforcement officer seeking the warrant has obtained the approval of his or her 

supervising officer, or has the approval of the highest-ranking officer in his or her law 

enforcement agency; 

4. The law enforcement officer seeking the warrant has consulted with the commonwealth’s 

attorney, county attorney, assistant commonwealth’s attorney, or assistant county attorney 

for the jurisdiction for which the warrant is sought; 

5. The law enforcement officer seeking the warrant discloses to the judge, as part of the 

application, any other attempt to obtain a warrant authorizing entry without notice for the 

same premises, or for the arrest of the same individual; and 

6. The warrant authorizes that the entry without notice can occur only between the hours of 

6:00 a.m. and 10:00 p.m., except in exigent circumstances where the court makes findings 

in relation to the crimes alleged. The court may further find by clear and convincing 

evidence that there are substantial and imminent risks to the health and safety of the 

persons executing the warrant, the occupants of the premises, or the public, justifying entry 

without notice during other hours designated by the court. 

If the warrant is not issued electronically pursuant to KRS 455.170, the warrant must include the 

legibly printed name and signature of the judge. 

Senate President Robert Stivers (R-Manchester) argues on 

the Senate floor for passage of Senate Bill 4. Photo courtesy 

LRC Public Information. 


37


Execution of Warrant 

A new section of KRS Chapter 455 is created to require any warrant issued pursuant to the 

Act to be executed by law enforcement officers with a certified or licensed paramedic or emergency 

medical technician in proximity and available to provide medical assistance, if needed. The law 

enforcement officers shall be: 

• Members of a special weapons and tactics team or special response team trained and tasked 

with resolving high-risk situations and incidents who have received appropriate training in the 

execution of arrest and search warrants authorizing entry without notice. If members of a special 

weapons and tactics team or special response team are not available to execute the warrant in 

a timely manner in counties having a population of less than 90,000 and the court finds by clear 

and convincing evidence that the risks to the health and safety of the persons executing the 

warrant, the occupants of the premises, or the public are greater if the warrant is not executed 

in a timely manner, the court may approve the execution of the warrant without members of a 

special weapons and tactics team or special response team; 

• Equipped with body-worn cameras, or in counties having a population of less than 90,000, 

equipped with other audio-visual or audio recording devices for required recording of the entirety 

of the execution of the warrant; and 

• Equipped with clearly visible insignia on any protective equipment or clothing that clearly 

identifies the name of the agency that employs the members of the special weapons and tactics 

team or special response team. 

SB 52 

SEXUAL OFFENSES BY PEACE OFFICERS 

Sponsor: Senator Denise Harper Angel (D–Louisville) 

The legislation amends three sexual offense statutes to include offenses by peace officers while 

serving in their official capacity. KRS 510.120, sexual abuse in the second degree, is amended to 

include a peace officer who subjects a person whom the officer has arrested, held in custody, or 

investigated for commission of a traffic or criminal offense, or knew or should have known was under 

arrest, held in custody, or being investigated for commission of a traffic or criminal offense, to sexual 

contact. Sexual abuse in the second degree is a Class A misdemeanor. 

KRS 510.090, sodomy in the third degree, is amended to include a peace officer who subjects 

a person whom the officer has arrested, held in custody, or investigated for committing a traffic 

or criminal offense, or knew or should have known was under arrest, held in custody, or being 

investigated for committing a traffic or criminal offense, to deviant sexual intercourse. Sodomy in the 

third degree is a Class D felony. 

KRS 510.060, rape in the third degree, is amended to include a peace officer who subjects 

a person whom the officer has arrested, held in custody, or investigated for committing a 



traffic or criminal offense, or knew or should have known was under arrest, held in custody, 

or being investigated for committing a traffic or criminal offense, to sexual intercourse. Rape 

in the third degree is a Class D felony. 

SB 80 

PEACE OFFICER DECERTIFICATION 

Sponsor: Senator Danny Carroll (R–Paducah) 

Senate Bill 80, a KLC initiative, amends several provisions of KRS Chapter 15 to strengthen 

Kentucky’s police decertification laws. 

KRS 15.391 is amended to expand the definitions of “professional malfeasance” and “professional 

nonfeasance” as follows: 

• “Professional malfeasance” is defined to mean engaging in an act in one’s professional capacity 

as a peace officer that violates a federal, state, or local law or regulation, or any act that involves: 

(1) the unjustified use of excessive or deadly force, as determined by an investigating agency; 

(2) any intentional action by a peace officer that interferes with or alters the fair administration 

of justice, including but not limited to tampering with evidence, giving false testimony, or the 

intentional disclosure of confidential information in a manner that compromises the integrity of an 

official investigation; or (3) engaging in a sexual relationship with an individual the peace officer 

knows or should have known is a victim, witness, defendant, or informant in an ongoing criminal 

investigation in which the peace officer is directly involved. 

• 

• 

• 

• 

• 

• 

Senator Danny Carroll (R-Paducah) speaks on the Senate floor 

shortly before the Senate passed Senate Bill 80 by a 28-0 vote. 


• 

• 

• 


39


• “Professional nonfeasance” is defined to mean a failure to perform one’s professional duty as a 

peace officer through omission or inaction that violates a federal, state, or local law or regulation, 

or any failure to act that involves: (1) the failure to intervene when it is safe and practical to do 

so in any circumstance where it is clear and apparent to the peace officer that another peace 

officer is engaged in the use of unlawful and unjustified excessive or deadly force; or (2) the 

intentional failure to disclose exculpatory or impeachment evidence that the peace officer knew 

or should have known to be materially favorable to an accused for the purpose of altering the fair 

administration of justice. 

KRS 15.391 is further amended to expand grounds for revocation of peace officer certification by the 

Kentucky Law Enforcement Council (KLEC). In addition to current grounds for revocation, including 

for professional malfeasance or professional nonfeasance, the certification of a peace officer may 

be revoked for: (1) a plea of guilty to, conviction of, or entering of an Alford plea to any misdemeanor 

offense in this state or out of it that involves dishonesty, fraud, deceit, misrepresentation, physical 

violence, sexual abuse, crimes against a minor or a family or household member; or (2) receipt of an 

other than honorable discharge from any branch of the U.S. Armed Forces. 

In addition to current grounds for automatic revocation by KLEC, the certification of a peace officer 

shall be automatically revoked for: (1) a plea of guilty to, conviction of, or entering an Alford plea to 

any state or federal felony or any criminal offense committed in another state that would constitute 

a felony if committed in Kentucky; or (2) willful falsification of information to obtain or maintain 

certification. 

The council may impose any reasonable condition upon the reinstatement of certification it 

may deem warranted under the facts of the case. A final order issued by the council denying 

reinstatement of certification may be appealed pursuant to KRS 13B.140. 

A new section of KRS 15.380 to 15.510 is created to allow any law enforcement agency or other 

unit of government that employs a certified peace officer to make a conditional offer of employment 

to a candidate pending receipt and evaluation of information requested from KLEC regarding the 

certification status of the candidate or from any agency that previously employed the candidate. 

Any agency that receives an inquiry from another agency regarding a candidate for a peace officer 

position who was formerly employed by the agency shall provide the following documentation within 

14 days following receipt of the request: (1) a complete copy of the peace officer’s personnel file; 

(2) any documentation related to the arrest or prosecution of the peace officer that the agency 

maintained; (3) any documentation related to a completed internal administrative investigation 

of the peace officer; and (4) any documentation related to an incomplete internal administrative 

investigation of the peace officer that was not completed because of the officer’s resignation or 

retirement while the investigation was pending. The agency that elects to make a conditional offer of 

employment subject to receipt and evaluation of information shall require the candidate to complete 

a waiver and release of liability authorizing the hiring agency to request the information from all prior 

agencies, which may include employing agencies outside of Kentucky. 


10) LOCAL GOVERNMENT REGULATION/ADMINISTRATION 

HB 190 

SALE OF GROCERY ITEMS BY FOOD SERVICE ESTABLISHMENTS 

Sponsor: Representative John Blanton (R–Salyersville) 

House Bill 190 creates a new section of KRS 217.280 to 217.390 to exempt legally permitted food 

service establishments from any state or local laws and administrative regulations that prohibit the 

sale of grocery items such as bread, milk, and other grocery staples to any customer. Sales shall be 

limited to no more than 25% of the food service establishment’s gross annual sales for the federal tax 

year. 

No additional permit or permit fee shall be required for the sale of grocery items by legally permitted 

food service establishments in accordance with this Act. 

An emergency is declared. House Bill 190 became law on March 18, 2021, when signed by the 

governor. 

HB 210 

ADOPTION LEAVE 

Sponsor: Representative Samara Heavrin (R–Leitchfield) 

House Bill 210 amends KRS 337.015 to expand adoption leave from the current maximum of six 

weeks upon receipt by an employer of a written request. The bill requires employers to provide the 

same leave policies to adoptive parents as they do to birth parents if the employer has established 

a policy providing time off for birth parents that is greater than six weeks. The policy must include 

the same type, amount, and duration of paid leave and other benefits. House Bill 210 additionally 

increases the applicable age of an adoptive child from 7 to 10 years. 

Leave policies shall not apply to an adoption by fictive kin; stepparent; stepsibling; blood relative, 

including a first cousin, aunt, uncle, nephew, or niece; a person of a preceding generation as denoted 

by prefixes of grand, great, or great-great; or a foster parent who adopts a foster child who is already 

in their care. 


41


SB 8 

IMMUNIZATIONS 

Sponsor: Senator Mike Wilson (R–Bowling Green) 

Senate Bill 8 amends KRS 214.036 to expand exceptions to mandatory immunization against 

disease to include, in addition to a child, any emancipated minor or adult opposed to medical 

immunization against disease who, personally or by a parent or guardian, submits a written sworn 

statement objecting to immunization based on religious grounds. 

In the event of an epidemic in a given area, Senate Bill 8 prohibits any administrative order issued 

by the Cabinet for Health and Family Services, any administrative regulation promulgated pursuant 

to KRS Chapter 13A, or any emergency executive order issued pursuant to KRS Chapter 39A 

to require: (1) the immunization of any child or adult for whom, in the written opinion of his or her 

attending health care provider, the immunization would be injurious to his or her health; or (2) the 

immunization of any child, emancipated minor or adult opposed to medical immunization against 

disease who, personally or by a parent or guardian, submits a written sworn statement objecting to 

the immunization based on religious grounds or conscientiously held beliefs. 

The Cabinet for Health and Family Services shall develop and make available on its website a 

standardized form relating to exemptions from immunization requirements and accept a completed 

standardized form when submitted. 

An emergency is declared. Senate Bill 8 became law on March 28, 2021, without the governor’s 

signature. 

Senator Mike Wilson (R-Bowling Green) calls for 

passage of Senate Bill 8 on February 4. 




SB 66 

YOUTH CAMPS 

Sponsor: Senator John Schickel (R‒Union) 

Senate Bill 66, a KLC initiative, creates a new section of KRS Chapter 194A to exempt local 

government youth day camps from licensure or permitting requirements. “Local government youth 

day camp” means a camp operated by a local government for all or part of a day, whether free or 

for a fee, for five or more children under 18 years of age outside the presence of their parent or 

guardian. The camp may be for recreational or educational purposes for four or more consecutive 

hours per day during school vacation periods, school breaks, or school cancellations. A local 

government youth day camp shall not be required to obtain a permit under KRS 211.180 or be 

licensed as a child care center as defined in KRS 199.894 or KRS 211.180. 

KRS 194A.382 and KRS 194A.383 are amended to ensure background checks for all staff members 

at youth camps, including volunteers. KRS 194A.380 is amended to define “staff member” to 

include: (1) an individual who is employed by a youth camp or a local government youth day camp 

for compensation; (2) a contract employee or a self-employed individual whose employment directly 

involves the care or supervision of children or unsupervised access to children placed with a youth 

camp or a local government youth day camp; or (3) a volunteer or intern whose activities on behalf 

of a youth camp or a local government youth day camp directly involve the care or supervision of 

children or unsupervised access to children placed with a youth camp or a local government youth 

day camp. 

The Senate passed Senate Bill 66 by a 91-0 vote after Senator 

John Schickel (R-Union) explained the provisions of the bill. 

SB 148 

OPERATION OF FAMILY CHILD CARE HOMES 

Sponsor: Senator Danny Carroll (R‒Paducah) 

Senate Bill 148 amends KRS 199.8982 to prohibit a local government from adopting or enforcing any 

licensure, certification, or training requirements specifically applicable to family child care homes. 

The prohibition does not exempt family child care homes from compliance with local government 

ordinances and regulations that apply generally within the jurisdiction. 

“Certified family child care home” means a private home certified by the Cabinet for Health and 


43


Family Services pursuant to KRS 199.8982 that is the primary residence of an individual who 

provides full-time or part-time care day or night for six or fewer children who are not the children, 

siblings, stepchildren, grandchildren, nieces, nephews, or children in legal custody of the provider. 

KRS 199.8982 is additionally amended to require a local government that has adopted land use 

regulations pursuant to KRS Chapter 100 to specifically include, by January 1, 2022, family child 

care homes in the text of its zoning regulations to authorize the board of adjustments to separately 

consider the applications of proposed family child care homes for conditional use permits within 

the residential zones of the planning unit where they are not a fully permitted use pursuant to KRS 

100.237. 

An emergency is declared. Senate Bill 148 became law on March 30, 2021, when delivered to the 

secretary of state. 

SB 165 

RIVERPORT AUTHORITIES 

Sponsor: Senator Whitney Westerfield (R–Crofton) 

Senate Bill 165 amends KRS 65.530 relating to the powers of riverport authorities to make the 

imposition of rates, charges, and fees for use of the riverport facilities permissive rather than 

mandatory. Publication of rates, charges, and fees, if any, for use of the riverport facilities shall be 

presented in a manner available to the public in the county in which the riverport is located, which 

may or may not be by newspaper publication. 

SB 171 

LOCAL GOVERNMENT INVESTMENTS 

Sponsor: Senator Wil Schroder (R‒Wilder) 

Senate Bill 171 amends KRS 66.480 to increase options for investment of money by local 

governments. KRS 66.480 currently limits money invested at any one time by a local government in 

mutual funds, exchange traded funds, individual equity securities, or individual corporate bonds to a 

maximum of 40% of the total money invested. The legislation exempts from the investment maximum 

of 40% a mutual fund consisting solely of investments in obligations of the United States government, 

obligations backed by the full faith and credit of the United States, bonds of this state, securities 

issued by a state or local government, or any combination thereof. 



SB 171 

SPLASH PADS 

Sponsor: Senator Wil Schroder (R‒Wilder) 

Senate Bill 171, a KLC initiative, addresses an issue experienced by some cities related to the 

operation of splash pads. “Splash pad” is defined as an artificially constructed recreation area for 

water play over which water is sprayed but is not allowed to pool. Splash pads have previously been 

regulated as swimming pools. 

Senate Bill 171 creates a new section of KRS Chapter 211 directing the Cabinet for Health and 

Family Services to promulgate administrative regulations to establish standards for the operation 

and maintenance of splash pads to ensure they are maintained in a safe, sanitary manner and to 

distinguish the operation and maintenance of splash pads from the operation and maintenance of 

swimming pools. The administrative regulations shall include a requirement that water in splash 

pads, if recirculated, be chemically treated, properly filtered, and monitored. The regulations shall not 

require ring buoys, life poles, shepherd’s crooks, backboards, telephones, bathhouses, restrooms, 

drinking fountains, first-aid kits, lifeguards, on-site attendants, or fences. The regulations shall also 

not require flow meters if the water in a splash pad is not recirculated. 

Senator Wil Schroder (R-Wilder) and KLC Director of Public Affairs Bryanna L. Carroll testify to the 

Senate State and Local Government Committee on February 24. 


45

11) LOCAL GOVERNMENT TAXATION 

HB 84 

EXEMPTIONS FOR DISASTER RESPONSE BUSINESSES 

Sponsor: Representative Myron Dossett (R–Pembroke) 

House Bill 84 addresses the applicability of Kentucky income tax and licensing statutes to 

nonresident disaster response businesses and employees who come into the state pursuant to 

a request by a registered business or by a state or local government for purposes of performing 

disaster or emergency-related work during a disaster response period. “Disaster or emergencyrelated 

work” is defined to mean repairing, renovating, installing, building, or rendering services 

that are essential to the restoration of critical infrastructure that has been damaged, impaired, or 

destroyed by a declared state disaster or emergency. 

“Disaster response business” is defined to mean any entity: (1) that has no presence in the state 

and conducts no business in the state, except for disaster or emergency-related work during a 

disaster response period; (2) whose services are requested by a registered business or by a state 

or local government for purposes of performing disaster or emergency-related work in the state 

during a disaster response period; and (3) that has no registrations, tax filings, or nexus in this state 

other than disaster or emergency-related work during the calendar year immediately preceding the 

declared state disaster or emergency. “Disaster response employee” means an employee who does 

not work or reside in the state, except for disaster or emergency-related work during the disaster 

response period. 

“Disaster response period” means a period that begins 10 days prior to the first day of the governor’s 

declaration under KRS 39A.100, or the president’s declaration of a federal major disaster or 

emergency, whichever occurs first, and that extends 30 days after the declared state disaster or 

emergency. 

KRS 141.020 is amended to exempt disaster response employees and disaster response businesses 

from income tax beginning on or after January 1, 2021, and before January 1, 2025. KRS 141.040 is 

amended to exempt disaster response businesses from payment of corporate income tax beginning 

on or after January 1, 2021, and before January 1, 2025. 

KRS 68.180, 68.197, 91.200, and 92.300 are amended to exclude the income of a disaster response 

employee and a disaster response business from payment of local occupational license taxes. No 

license tax shall be imposed upon the profits earned or income received for work performed during a 

disaster response period by a disaster response business or a disaster response employee. 

KRS 227.480 is amended to exclude a disaster response business from any requirement to obtain 

a permit before commencing construction, alteration, or repairs of any electrical system. KRS 

227A.030 is amended to exclude disaster response employees licensed as an electrician or master 

electrician in another state or disaster response businesses licensed as electrical contractors in 

another state from any requirement to apply for a Kentucky electrician’s license. 


11) LOCAL GOVERNMENT TAXATION 

HB 249 

OCCUPATIONAL LICENSE FEES 


House Bill 249 amends KRS 68.197 to permit counties authorized to collect an occupational license 

fee to increase or decrease the license fee with the approval of the fiscal court through the passage 

of an ordinance, rather than by approval of voters at a public referendum. The percentage rate on 

which the fee is based shall not exceed one percent. The maximum salary limit for collection of the 

fee shall not exceed an amount equal to the maximum Social Security contribution and benefit base 

established pursuant to 42 U.S.C. § 430. Notwithstanding KRS 68.197(7), there shall be no credit of 

any license fee increased or decreased pursuant to the amendment except by agreement between 

the county and the city in accordance with KRS 68.197(6). Effective July 1, 2021. 

HB 249 

REFUND OF BUSINESS TAXES 


House Bill 249 creates a new section of KRS Chapter 67 to permit a local government taxing district 

to share a refund application and any related information that is submitted to it by an employee 

seeking a refund of any amount of net profits, gross receipts, or occupational license taxes withheld 

and paid by his or her employer to the tax district pursuant to KRS 67.750 to 67.795 with any other 

tax district that is referenced in the refund application or in related information. 

HB 249 

TAXATION OF VETERAN SERVICE ORGANIZATIONS 


House Bill 249 creates a new section of KRS Chapter 132 to permit a veteran service organization 

to qualify as an institution of purely public charity as described in Section 170 of the Kentucky 

Constitution related to property exempt from taxation if over 50% of its annual net income is 

expended on behalf of military veterans and other charitable causes. If a veteran service organization 

qualifies as an institution of purely public charity, its property assessed on January 1, 2022, shall not 

be subject to ad valorem taxation from the state, county, city, school, or other taxing district in which 

it has a taxable situs. The exemption does not apply to real property, if any, owned by the veteran 

service organization and occupied by another entity or person for compensation. Effective January 1, 

2022. 

HB 513 

SHERIFFS’ COLLECTION FEES 

Sponsor: Representative Michael Meredith (R–Oakland) 

House Bill 513 creates a new section of KRS Chapter 70 to require the sheriff to negotiate a 

collection fee with the governing body of any local government that levies or imposes a special tax, 

license, fee, or other charge to be collected by the sheriff as part of a property tax bill. The local 

government shall then set the negotiated collection fee, and the sheriff shall retain an amount not to 

exceed 4.25% of the special tax, license, fee, or other charge collected, if no other compensation is 

otherwise authorized. 


47

12) OPEN RECORDS 

HB 273 

EXEMPTIONS FOR CERTAIN PHOTOGRAPHS AND VIDEOS 

Sponsor: Representative Chris Freeland (R–Benton) 

House Bill 273 amends KRS 61.878 to exclude from the Open Records Act photographs or videos 

that depict the death, killing, rape, or sexual assault of a person, except at the request of: (1) any 

victim depicted in the photographs or videos, his or her immediate family, or legal representative; (2) 

any involved insurance company or its representative; (3) the legal representative of any involved 

party; or (4) any state agency or political subdivision investigating official misconduct. 

Such photographs or videos shall be made available by the public agency to the requesting party for 

viewing on the premises of the public agency or at a mutually agreed upon location. 


governor. 

Representative Chris Freeland (R-Benton) presents House Bill 273 

on the House floor. Photo courtesy LRC Public Information. 



HB 312 

ACCESS TO PUBLIC RECORDS 

Sponsor: Representative Bart Rowland (R–Tompkinsville) 

House Bill 312, a KLC initiative, amends several provisions in Kentucky’s Open Records Act relating 

to access to public records. KRS 61.872 is amended to permit access to inspection of public records 

under the Open Records Act to any resident of the commonwealth. KRS 61.870 is amended to 

define “resident of the commonwealth” to mean: (1) an individual residing in the commonwealth; (2) a 

domestic business entity with a location in the commonwealth; (3) a foreign business entity registered 

with the secretary of state; (4) an individual that is employed and works at a location or locations 

within the commonwealth; (5) an individual or business entity that owns real property within the 

commonwealth; (6) any individual or business entity that has been authorized to act on behalf of an 

individual or business entity qualifying as a resident of the commonwealth; or (7) a “news-gathering 

organization” as defined in KRS 189.635. 

KRS 61.872 is additionally amended to expand methods for residents of the commonwealth to 

submit written applications for inspection of public records to include via email to the public agency’s 

official custodian of public records at the email address designated in the public agency’s rules and 

regulations as required pursuant to KRS 61.876. The official custodian may require the applicant 

to provide a statement in the written application about how the applicant is a resident of the 

commonwealth. 

KRS 61.876 is amended to require the attorney general to promulgate by administrative regulation 

a standardized form that may be used to request public records from a public agency. The form 

shall request the following: (1) name of the requesting party; (2) mailing or email address of the 

requesting party; (3) whether the request is for a commercial purpose; (4) a description of the 

documents requested; (5) a statement about how the person making the request is a resident of the 

commonwealth; and (6) the signature of the requesting party. The attorney general shall make the 

form readily available to the public, including on the attorney general’s website. 

KRS 61.876 is further amended to require each public agency to display in a prominent location 

accessible to the public, including on its website: (1) a copy of its rules and regulations pertaining to 

public records; (2) the mailing address, email address, and phone number of the official custodian 

of the records to which all requests for public records shall be made; and (3) the form developed by 

the attorney general that may be used to request public records. A public agency shall not require 

the use of any particular form for the submission of an open records request but shall accept for any 

request the standardized form developed by the attorney general. 

KRS 61.880 is amended to require each public agency, upon any request for records, to determine 

within five days after receiving the request excepting Saturdays, Sundays, and legal holidays (rather 

than three days as currently required) whether to comply with the request and to notify in writing the 

person making the request of its decision. If a requester is not notified within five days whether or not 

the request will be complied with, he or she may complain in writing to the attorney general. 

KRS 7.119 is amended regarding records in the custody of the Legislative Research Commission or 


49


the General Assembly. Requests for records in the custody of the Legislative Research Commission 

or the General Assembly shall be directed to the director of the Legislative Research Commission 

who shall determine within five days after receipt of the request, excepting Saturdays, Sundays, and 

legal holidays, whether to comply with the request. The director shall notify the person making the 

request in writing of his or her decision. A request for review of a determination by the director shall 

be made to the Legislative Research Commission which shall issue its decision within 30 days of the 

first scheduled meeting held following receipt of the request for review. If the Legislative Research 

Commission does not issue its decision on a review of the director’s determination within 30 days 

of the first scheduled meeting held following receipt of the request for review, the review shall be 

considered denied and unappealable. 

KLC Executive Director/CEO J.D. Chaney, Representative Jason Petrie (R-Elkton), and 

Representative Bart Rowland (R-Tompkinsville) testify to the Senate State and Local Government 

Committee for passage of House Bill 312. 


13) RETIREMENT 

HB 9 CERS SEPARATION - PHASE 2 

Sponsor: Representative Russell Webber (R–Shepherdsville) 

House Bill 9, a KLC initiative, amends various statutes in KRS Chapters 16, 61, and 78 to finalize 

creation of a separate statutory structure for the County Employees Retirement System (CERS), 

apart from the Kentucky Retirement Systems (KRS) as provided in House Bill 484 passed by the 

2020 General Assembly. House Bill 484 created an independent CERS Board of Trustees within the 

administrative structure of the newly created Kentucky Public Pensions Authority (KPPA) effective 

April 1, 2020. 

KLC Director of Public Affairs Bryanna L. Carroll 

testifies for passage of House Bill 9. 

• House Bill 9 makes the following changes to the language in House Bill 484 (2020): 

• Allows the CERS and KRS boards to hire a general counsel; 

• Requires the governor to make an appointment or reappointment to the CERS and KRS boards 

at least 30 days prior to a current member’s term expiring; 

• Allows the KPPA to hire a chief investment officer and deputy chief investment officer outside the 

KRS Chapter 18 personnel requirements; 

• Requires KPPA to submit a single biennial budget for legislative approval that lists separate 

CERS and KRS expenses after submission of requests by each board; 

• Gives KPPA the authority to promulgate administrative regulations and carry out all administrative 

actions needed for KRS and CERS; 


51


• Permits the chief executive officer of the KRS board and the chief executive officer of the CERS 

board, rather than the executive director of KPPA, to call a special meeting of their respective 

boards; 

• Establishes that the CERS and KRS boards may have a joint Disability Appeals Committee; 

• Separates CERS from KRS retiree health benefit provisions; and 

• Allows the current KRS Executive Director to serve as the KPPA Executive Director until a 

permanent replacement is determined by July 1, 2021. 

House Bill 9 does not increase or decrease benefits, limit the General Assembly’s authority to change 

benefits, or change employer contribution rates. 


governor. 

Representative Jerry Miller (R-Louisville) in committee. 


HB 69 

ACTUARIAL REPORTING FOR STATE RETIREMENT SYSTEMS 

Sponsor: Representative Jerry Miller (R–Louisville) 

House Bill 69 amends KRS 6.350 to establish additional standards and requirements for completion 

of the actuarial analysis required for bills filed in the General Assembly pertaining to the stateadministered 

retirement systems. 

The legislation requires the actuarial analysis to be provided in a uniform format established by the 

Legislative Research Commission and include on the front page a summary of relevant data from 

the analysis, including but not limited to: (1) the total projected nominal dollar savings or costs over 

a period of 30 years rather than 20 years; (2) the net present value of savings or costs over the 30 



years; and (3) the estimated change in the normal cost, if applicable. 

KRS 21.440, 61.670, and 161.400 are amended to require the state-administered retirement systems 

to provide a projection/analysis over 30 years rather than 20 years. 

HB 87 

RETIREMENT SYSTEMS HOUSEKEEPING MEASURES 

Sponsor: Representative Jennifer Decker (R–Waddy) 

House Bill 87 amends various provisions in KRS Chapters 16 and 61 relating to Kentucky’s 

retirement systems. 

• KRS 161.520 is amended to permit a widow or widower receiving survivor’s benefits to continue 

to receive benefits upon remarriage. 

• KRS 61.542 is amended to allow a retiree to change his or her actual monthly payment option 

upon marriage or remarriage if the retiree files a beneficiary change form within 120 days of 

marriage or remarriage designating the new spouse as a beneficiary and selecting a survivorship 

payment option. The resulting payments would be actuarially equivalent to the retirement 

allowance provided at the date of the original retirement. 

• KRS 61.542 is additionally amended to allow a retiree to elect to change his or her beneficiary 

at any time if the retiree has selected upon retirement a basic monthly annuity, a period certain 

payment option, or the Social Security adjustment option without survivorship rights as provided 

in KRS 61.542 and 61.635. 

• KRS 16.578 and 61.640 are amended to apply the alternate death benefit calculation options 

as written prior to 2009 legislation for deaths occurring prior to retirement. The amendments are 

retroactive to June 25, 2009. 

• KRS 61.545 is amended to provide that if a member is working in a regular full-time hazardous 

duty position that participates in the Kentucky Employees Retirement System (KERS) or 

the County Employees Retirement System (CERS) and is simultaneously employed in a 

nonhazardous position that is not considered regular full-time with a different participating 

employer, the member may elect within 30 days of taking employment to not participate in the 

system for his or her employment in the nonhazardous position. The amendment shall apply only 

to prospective nonhazardous employment occurring on or after the effective date of the Act. 

• KRS 61.598 is amended to provide the 10% cap on creditable compensation growth during a 

member’s five years of employment shall not apply to situations where the growth in excess of 

10% during the five-year period results in a benefit change of less than $25 per month. 

• 


53


• Members who retired prior to the effective date of the Act, who were married or remarried prior to 

the effective date of the Act and remain married or remarried to the same spouse, may exercise a 

onetime election to select a survivorship payment option for the new spouse by filing a beneficiary 

change form with the retirement office on or before January 1, 2022. 

Representative Jennifer Decker (R-Waddy) congratulates 

Representative David Osborne (R-Prospect) after being 

reelected as speaker of the House. Photo courtesy LRC 

Public Information. 

HB 261 

FRAUD AGAINST RETIREMENT SYSTEMS 

Sponsor: Representative Jerry Miller (R–Louisville) 

House Bill 261 amends KRS 61.685 to make a person liable for civil penalties if he or she knowingly 

submits false or fraudulent claims or fails to report or remit required money, records, or property to 

the Kentucky Public Pensions Authority (KPPA) in order to obtain retirement benefits from any of 

the retirement systems administered by the KPPA. “Person” is defined to mean a natural person, 

individual, county, city, agency, board or commission, sole proprietorship, partnership, corporation, 

limited liability company, organization, association, business, trust, or other legal entity. 

A person shall be liable if he or she knowingly: (1) submits or causes to be submitted a false 

or fraudulent claim for the payment or receipt of any benefit provided from any of the Kentucky 

retirement systems; (2) makes, uses, or causes to be made or used a false record or statement 

material to a false or fraudulent claim to obtain benefits provided from any of the Kentucky retirement 

systems; or (3) possesses or otherwise has custody or control of money, records, or property used 



or to be used by the KPPA or the systems it administers and fails to deliver or delivers less than all 

of the money, records, or property to which the authority or the retirement systems it administers 

are entitled, including but not limited to member agencies failing to report and remit employer and 

employee contributions and employment records to the authority. 

A person found to have committed one or more of the actions by a preponderance of the evidence in 

an administrative process before the authority or in an action before the Franklin Circuit Court shall 

be liable for: (1) restitution of any payments received for which the person was not entitled to receive 

and interest at the maximum legal rate; (2) civil payment in an amount up to three times the amount 

of the excess payments; (3) civil payment of $500 for each false or fraudulent claim submitted for the 

payment of retirement benefits; and (4) legal fees and costs of investigation and enforcement of civil 

remedies, including all attorneys’ fees and costs of litigation. 

Upon the written request of KPPA, the attorney general shall investigate and file the necessary 

actions to enforce civil penalties for violations and, if funds are recovered by or on behalf of the 

authority in any legal action, may recover reasonable costs of litigation as determined by the court. 

SB 169 

DUTY-RELATED DISABILITY BENEFITS 

Sponsor: Senator Christian McDaniel (R–Taylor Mill) 

Senate Bill 169 amends KRS 16.582 and 61.621 to increase line-of-duty or duty-related disability 

benefits payable to a member of any of the systems administered by the Kentucky Public Pensions 

Authority (KPPA) from 25% of the member’s final rate of pay to not less than 75% of the member’s 

monthly average pay. Additionally, a monthly payment equal to 10% of the disabled member’s 

monthly average pay is payable to each dependent child of the member on his disability retirement 

date. The payments shall be divided equally among all dependent children payable to each 

dependent child, to a legally appointed guardian, or as directed by the system. Total maximum 

dependent children’s benefits shall not exceed 25% of the member’s monthly average pay while the 

member is living and 40% of the member’s monthly average pay after the member’s death. “Monthly 

average pay” is defined as the higher of the member’s monthly final rate of pay or the average 

monthly creditable compensation earned by the disabled member during his or her last 12 months of 

employment prior to the date the line-of-duty or duty-related injury occurred. 

KRS 61.702 is amended to ensure full hospital and medical insurance benefits for the member, 

spouse, and dependents of a member who is totally and permanently disabled as a direct result 

of an act in the line of duty or disabled because of a duty-related injury for so long as the member, 

beneficiary, or dependent child individually remain eligible for benefits. 

The increase in line-of-duty or duty-related disability benefits is limited to members in a hazardousduty 

position or members in a nonhazardous position that could be certified as a hazardous-duty 

position under KRS 61.592. 


55


Related Amendments 

KRS 61.607 is amended to require members receiving line-of-duty or duty-related disability benefits 

to annually file with KPPA information regarding receipt of workers’ compensation or Social Security 

disability benefits for the purpose of computation of any adjustments. 

KRS 61.610 is amended to require disability medical reviews for members receiving line-of-duty or 

duty-related disability benefits to occur once every three years, rather than once each year following 

retirement. KRS 61.610 is additionally amended to require KPPA to hire or contract for the services 

of an investigator to investigate potential fraud involving disability benefits. The investigator shall 

evaluate potential cases of disability fraud and conduct spot audits for potential fraud as determined 

by KPPA in cases involving members who become totally and permanently disabled as a direct result 

of an act in the line of duty or a duty-related injury. 

KRS 7A.255 is amended to require KPPA to report line-of-duty and duty-related disability benefits to 

the Kentucky Public Pension Oversight Board on or before November 15 following the close of each 

fiscal year, broken down by system and whether the member is drawing a benefit as a hazardous 

member or a nonhazardous member who worked in a position that could be certified as a hazardous 

position. 

In the month following the effective date of the Act, any member, spouse of a disabled or deceased 

member, and any dependent child of a disabled or deceased member who is receiving a monthly 

benefit shall have his or her monthly benefit increased and be eligible for the health insurance 

benefits specified in the Act. 

The provisions of Senate Bill 169 apply to the Kentucky Employees Retirement System (KERS), the 

County Employees Retirement System (CERS), and the State Police Retirement System (SPRS). 

Senator Christian McDaniel (R-Taylor Mill) 

speaks on the floor. 



14) SUBSTANCE ABUSE 

HB 7 

RECOVERY READY COMMUNITIES 

Sponsor: Representative Adam Bowling (R–Middlesboro) 

House Bill 7, a KLC initiative, creates a new section of KRS Chapter 222 relating to alcohol and drug 

abuse prevention, intervention, and treatment that establishes the Advisory Council for Recovery 

Ready Communities. The council will work with city leaders and community members to help bring 

consistency to local substance abuse prevention, treatment, and recovery efforts across the state. 

The Council shall be attached to the Office of Drug Control Policy within the Justice and Public Safety 

Cabinet for administrative purposes. 

The Advisory Council for Recovery Ready Communities shall consist of: 

1. One member appointed by the governor from each of the following entities: Kentucky League 

of Cities, Kentucky Association of Counties, Kentucky Chamber of Commerce, Recovery 

Consortium of Kentucky, Kentucky School Boards Association, Kentucky Pharmacists 

Association, and Kentucky Association of Regional Programs; 

2. The following government officials or their designees: president of the Senate; speaker 

of the House; attorney general; chief justice of the Supreme Court; the public advocate; 

commissioner of the Department for Public Health; commissioner of the Department 

for Behavioral Health, Development, and Intellectual Disabilities; commissioner of the 

Department of Corrections; and commissioner of the Department of Workforce Investment; 

and 

3. Other professional and community members appointed by the governor as follows: 

one person representing the leadership of active law enforcement officers in Kentucky; 

one physician representing the medical profession; one person from a family advocate 

organization; one person from a faith community organization with experience in substance 

use recovery disorders; and two persons in recovery from a substance use disorder, one who 

has served time in jail or prison due to a substance use disorder. 

The Advisory Council for Recovery Ready Communities shall: (1) establish a Kentucky Recovery 

Ready Community Certification Program for cities and counties to provide a quality measure of a 

city’s or county’s substance use disorder recovery programs; (2) establish guidelines, protocols, 

standards, and an application and approval process for cities and counties related to the Kentucky 

Recovery Ready Community Certification Program; (3) ensure that the certification process evaluates 

a city’s or county’s availability of high-quality substance use treatment programs in their communities 

for persons in active, post, and recovered addiction status; (4) request and utilize federal, state, 

and private funds, including funds from philanthropic sources; (5) improve procedures for ensuring 


57

14) SUBSTANCE ABUSE 

accountability and measuring success of recovery programs that receive state, federal, and 

philanthropic funds; and (6) perform other duties and responsibilities as designated by the governor. 

The Justice and Public Safety Cabinet may contract with any public or private agency or any 

individual for research, the gathering of information, the printing and publication of reports, 

consulting, or for any other purpose necessary to discharge the duties of the advisory council. 

KLC Executive Director/CEO J.D. 

Chaney testifies for passage of House 

Bill 7 at the February 3 House Local 

Government Committee. 

HB 427 

OPIOID ABATEMENT ADVISORY COMMISSION 

Sponsor: Representative Danny Bentley (R‒Russell) 

House Bill 427 creates new sections of KRS Chapter 15 to establish a general structure for receipt 

and disbursement of funds from various lawsuits against opioid manufacturers, producers, and 

distributors, including disbursement of funds to local governments. The legislation creates the 

Kentucky Opioid Abatement Advisory Commission for receipt and award of moneys from the various 

lawsuits for reimbursement of prior expenses or to fund projects according to specified criteria. 


15) TRANSPORTATION 

HB 199 

ENCROACHMENT PERMITS 

Sponsor: Representative Brandon Reed (R‒Hodgenville) 

House Bill 199, a KLC initiative, amends KRS 177.106 to clarify requirements for an encroachment 

permit. “Encroachment” is defined to mean any improvement to land, including but not limited to 

buildings, fences, ditches, embankments, driveways, signs, or any change from the original contour 

of the land, that: (1) is constructed, created, or implemented under, on, or over the right-of-way of 

a state-maintained road; and (2) may hinder or prevent use or maintenance of the road or rightof-way. 

Encroachment on any part of the right-of-way of a state-maintained highway requires an 

encroachment permit from the Department of Highways. 

If the Department of Highways determines that an encroachment for which an encroachment permit 

was not issued interferes with the safe, convenient, and continuous use and maintenance of a road, 

the department shall issue to the responsible party a notice of violation and order to remove or 

relocate the encroachment within seven days at the expense of the responsible party. 

If the department orders the removal or relocation of an encroachment and the responsible party fails 

to remove it or change its location within the time allotted, the department shall cause the removal of 

the encroachment and recoup the cost of removal from the responsible party. Moneys recouped shall 

be deposited in the state road fund. 

In addition to any payment required to cover the costs of removal or relocation, any person who fails 

to obtain a permit shall be subject to a civil fine of $500 for the first violation, $1,000 for a second 

violation within a three-year period, and $2,000 for a third or subsequent violation within a three-year 

period. After a third violation, a responsible party shall be prohibited from receiving an encroachment 

permit for a period of six months from the date of notice of the third violation and be responsible for 

payment within 24 hours of notice from the department of any safety measures determined to be 

necessary by the department. Any civil fines imposed shall be collected by the municipality in which 

the violation occurred and used by the municipality for public safety or infrastructure purposes. 

HB 328 

ADVERTISING DEVICES 

Sponsor: Representative DJ Johnson (R–Owensboro) 

House Bill 328 amends KRS 177.830 to redefine “advertising device” in response to a court ruling 

that questioned Kentucky’s authority to regulate advertising devices under existing law. “Advertising 

device” means any billboard, sign, notice, poster, display, or other device, including the structure 

erected or used in connection with the display or device and all lighting or other attachments used in 

connection with the display or device, that is: (1) operated or owned by a person or entity that earns 

compensation directly or indirectly from a third party or parties for the placement of a message on the 

device; and (2) intended to attract the attention of operators of motor vehicles on highways. 


59

15) TRANSPORTATION 

KRS 177.860 is amended to require the Transportation Cabinet to promulgate administrative 

regulations no later than August 1, 2021, to establish: (1) permit fees for advertising devices not 

to exceed $250 for the initial permit application review, site and compliance inspection, and permit 

issuance, and $100 for an annual permit renewal; and (2) reasonable standards for signs, notices, 

posters, displays, or other devices that do not meet the definition of advertising device. Advertising 

devices indicating the name or type of business or profession conducted on the property or the sale 

or lease of the property on which the device is located are excluded from regulation. 


governor. 

Representative DJ Johnson (R-Owensboro) and KLC Director of Public Affairs Bryanna L. 

Carroll appear before the Senate State and Local Government Committee on March 3. 

SB 62 

COMMERCIAL QUADRICYCLES 

Sponsor: Senator Jimmy Higdon (R‒Lebanon) 

Senate Bill 62 amends the definition of “commercial quadricycle” in KRS 240.010 to modify the 

requirement that a commercial quadricycle be powered exclusively by means of human muscular 

power. The legislation allows for usage of an electrical assist system only when traveling to or from 

its storage location while not carrying passengers and specifies a commercial quadricycle is not a 

motor vehicle as defined in KRS 185.010 or 189.010. 


16) UTILITY SERVICES 

HB 207 

ENERGY SOURCE AVAILABILITY 

Sponsor: Representative Jim Gooch (R–Providence) 

House Bill 207 creates a new section of KRS Chapter 65 to prohibit a local government, with certain 

exceptions, from taking any legislative or executive action that has the purpose or effect of impairing 

a consumer’s ability to use: (1) utility services relating to the production and distribution of electricity 

or natural gas or the transportation of fluids by pipeline that are provided by a utility regulated by the 

Public Service Commission under KRS Chapter 278 or by a rural electric cooperative under KRS 

Chapter 279; or (2) liquefied petroleum gas as defined in KRS 234.100. 

House Bill 207 does not prohibit the ability of a local government to act under state law in matters 

relating to planning and zoning pursuant to KRS Chapter 100 and franchises pursuant to authority 

granted under Sections 163 and 164 of the Kentucky Constitution. The bill does not prohibit the 

ability of a local government or its utilities to provide any lawful utility service to its customers 

pursuant to state law. 

HB 238 

CITY UTILITY COMMISSION MEMBERSHIP 

Sponsor: Representative DJ Johnson (R–Owensboro) 

House Bill 238, a KLC initiative, expands the pool of persons with qualifications and expertise who 

may serve on a city utility commission. The legislation amends KRS 96.530 to allow city utility 

commissions to consist of either three or five members regardless of the size of the city and to 

broaden the permissible appointment of nonresident commission members. In cities with three 

commission members, one commission member may be appointed who does not live within the 

boundaries of the city. In cities with five commission members, two commission members may be 

appointed who do not live within the boundaries of the city. 

In both instances, the appointment or appointments of nonresident members shall occur only if the 

appointing authority determines that each appointee: (1) is a resident of a county in which the utility 

operates; (2) possesses qualifications and expertise that would benefit and be in the best interests of 

the city utility; and (3) is not employed by, possess an ownership interest in, or serve in any fiduciary 

or agency capacity with a direct supplier or direct competitor of the city utility. 

HB 272 

PENALTIES FOR NONPAYMENT OF UTILITY SERVICES 

Sponsor: Representative Josh Bray (R–Mount Vernon) 

House Bill 272, a KLC initiative, creates a new section of KRS Chapter 39F to prohibit current or 

future executive orders, administrative regulations, or other guidance during a declared emergency 

to remain in effect or be issued or promulgated by a department or officer of state government that 

prohibits or otherwise impairs the right of a municipal utility, subject to or created under KRS Chapter 

96, from terminating service for nonpayment of a customer’s utility bill or assessing or collecting its 

usual and customary fees or penalties for a customer’s nonpayment or delinquent payment of a utility 

bill. 


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16) UTILITY SERVICES 

A new section of KRS Chapter 39F is additionally created to prohibit any department or officer of 

state government to issue or promulgate an executive order, administrative regulation, or other 

guidance during a declared emergency that conflicts with any requirement or guidance issued by 

the U.S. Department of Homeland Security regarding the classification or treatment of employees 

of utilities as essential or critical infrastructure workers that are needed to ensure the continuity of 

functions critical to public health and safety or economic and national security. 

A new section of KRS Chapter 278 is created to allow a water district formed pursuant to KRS 

Chapter 74 or a water association formed pursuant to KRS Chapter 273 to charge a customer who 

fails to pay a bill by the due date shown on the bill a late payment charge of 10% of the amount 

billed. Any late payment charge imposed by a water district or water association shall be waived for 

any bill or portion of a bill for which a customer has received third-party billing assistance through 

the Low-Income Household Drinking Water and Wastewater Emergency Assistance Program or from 

another public or charitable source. 

The Public Service Commission shall not modify, reject, or suspend the operation of a late payment 

charge provided for in a water district or water association tariff or require a water district or water 

association to demonstrate to the commission that the late payment charge is required to recover 

customer-specific costs incurred that would otherwise result in a monetary loss to the utility or 

increased rates to other customers. 

Representative Derek Lewis (R-London), Representative Josh Bray (R-Mount Vernon), Kentucky Rural Water Association Executive 

Director Gary Larimore and KLC Executive Director/CEO J.D. Chaney testified in the final days of the 2021 session for passage of 

House Bill 272. 


NOTES 


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64 www.KLC.org 

KLC.ORG

KLC 2021 Legislative Update

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