AN ACT implementing the federal education opportunity program in Kentucky.
Summary
HB 1 implements Kentucky’s participation in the federal qualified elementary and secondary education scholarship tax credit program under 26 U.S.C. sec. 25F. The bill authorizes the General Assembly to make the state election to participate each year, directs the Secretary of State to notify the U.S. Treasury and submit the required annual list of scholarship granting organizations, and requires the Secretary of State to publish federal guidance and related administrative rules on the agency website.
The bill also allows the Secretary of State to adopt regulations needed to administer the program and to collect fees or accept private contributions to cover administrative costs. Any money collected must be kept in a restricted fund and used only for program administration. The bill further includes a waiver of Eleventh Amendment immunity for purposes of the section, reflecting an effort to ensure the state can participate in and administer the federal tax credit program without legal barriers.
Impact
HB 1 creates a new section of KRS Chapter 14 and establishes a state framework for Kentucky’s participation in a federal education scholarship tax credit program. It assigns formal state responsibilities to the General Assembly and Secretary of State, requires annual notification and reporting to the federal government, and authorizes rulemaking and fee collection to support administration. The bill affects the Secretary of State’s duties, scholarship granting organizations operating in Kentucky, and taxpayers making qualifying contributions who may claim the federal tax benefit.
Sentiment
The voting history suggests the bill ultimately had enough support to become law, but it was not without opposition. The measure passed through veto override votes in both chambers, with the House and Senate each recording substantial majorities in favor on the final override. Earlier votes also show some resistance, indicating that while the bill had broad backing among supporters of the program, it remained politically contested. The final enactment and delivery to the Secretary of State indicate the override succeeded and the bill became law despite the veto.
Contention
The main points of contention appear to center on the state’s role in implementing a federal education tax credit program and the policy implications of supporting scholarship granting organizations through tax incentives. Opponents likely objected to the bill’s structure, the delegation of administrative authority to the Secretary of State, or the broader education policy direction, while supporters emphasized participation in a federal program intended to expand scholarship funding. The veto override votes indicate that disagreement was significant enough to prompt executive opposition, but not enough to prevent enactment.