Amend KRS 241.065 to prohibit licensure for a quota retail package premises less than 1 mile from another quota retail package license premises in a county containing a city of the first class; exempt existing quota retail package license premises; allow for loss of exemption for an existing quota retail package license premises under designated circumstances.

Amend KRS 525.080, relating to harrassing communications, to include sending repeated electronic communications in a manner reasonably likely to harass, annoy, alarm, torment, embarass, or offend another and include posts to social media or an internet website any material that is reasonably likely to cause emotional distress, abuse, or torment; elevate harassing communications from a Class B misdemeanor to a Class A misdemeanor.

Amend KRS 342.260 to include a written notice of rejection or withdrawal of that rejection within the Insurance Coverage Look-up database; amend KRS 342.395 to require the commissioner of the Department of Workers' Claims to provide an online portal through which as employee's rejection or withdrawal may be electronically submitted to the department.

Amend KRS 116.045 to require a county clerk to verify the United States citizenship of voter registration applicants with the United States Social Security Administration; amend KRS 116.095 to remove language relating to Social Security numbers to conform; amend KRS 116.115 to remove exception for those registering to vote who are unable to provide a Social Security number, and to conform.

Create a new section of KRS Chapter 164 to establish the Kentucky Public Service Student Loan Forgiveness Program fund; require the Kentucky Higher Education Assistance Authority to administer the fund; require the authority to disburse funds for student loan repayment to recruit and retain eligible public service employees that live and work in Kentucky; specify terms and process; establish criteria for the program and applicant evaluation for awards; appropriate $30,000,000 from the budget reserve trust fund account for initial implementation of the student loan forgiveness program; appropriate $30,000,000 from the general fund for support of the student loan forgiveness program; APPROPRIATION; EMERGENCY, EFFECTIVE July 1, 2026.

Amend KRS 278.704 to make technical corrections.

Amend KRS 154.12-280 to change the Kentucky Film Office to the Kentucky Entertainment Commission; require the commission to promote film and television, music recording and production, live performances, workforce development, and regional entertainment industry incentives; amend KRS 154.12-282 to change the Kentucky Film Leadership Council to the Kentucky Entertainment Leadership Council and change the membership of the council; amend KRS 12.020, 141.383, and 154.61-010 to conform; require the council to create and implement the Kentucky Music Cities Together Pilot Program and report findings and recommendations to the Legislative Research Commission by December 1, 2028.

Amend KRS 78.5522 to allow for the 5 year service requirement for disability retirement to be waived for a person who works in a nonhazardous position that could be certified as a hazardous position who is injured in line of duty resulting in an incapacity to continue as an employee in the position that could be certified as hazardous; allow certain persons whose last day of paid employment was on or after January 1, 2022, but prior to the effective date of this Act to apply for disability benefits; RETROACTIVE.

Create a new section of KRS Chapter 7 to establish a Special Committee on Sexual Misconduct; direct the appointment of members; require investigation, hearings, and report of complaints submitted by employees of the Legislative Research Commission, another member of the General Assembly, and the public; require report of recommended punitive actions to Senate President, Speaker of the House of Representatives, and members of the General Assembly.

Create a new section of KRS 17.500 to 17.580 to require sex offender registrants to pay an annual registration fee; establish penalties for failure to pay annual registration fee; establish the sex offender registry fund.

Amend KRS 164.092 to change the membership of the postsecondary education working group of the Council on Postsecondary Education; require the working group to convene on a calendar year basis rather than a fiscal year basis; EMERGENCY.

Amend KRS 230.817 to redirect a portion of the amount deposited in the sports wagering administration fund from the permanent pension fund to the Kentucky lottery trust account.

Amend KRS 61.702, relating to the Kentucky Employees Retirement System and the State Police Retirement System, to increase the nonhazardous and hazardous duty under age 65 retiree health subsidy to $40 and $50 per month for each year of service, respectively, for those members who meet the "career threshold" who began participating in the system on or after July 1, 2003, and who are eligible for a fixed-dollar retiree health subsidy not tied to the premium; extend the employee contribution used to fund retiree health benefits to include members who began participating in the system on or after July 1, 2003, and increase the current hazardous employee contribution rate to 2% of pay for those eligible for the fixed-dollar retiree health subsidy; make technical amendments regarding the retiree health premium reimbursement program to conform to current policy; provide that the amendments to the employee contributions shall be effective July 1, 2027; for calculation of the retiree health subsidy increase, provide that the change shall apply to service earned prior to the effective date of this Act by eligible members, including retirees, and shall prospectively be adjusted annually by the 1.5% increase currently provided in statute; provide that subsidies payable to impacted retirees shall begin on or after January 1, 2027, to coincide with the next health plan year; direct the Public Pension Oversight Board to continue to review the retiree health fund actuarial data and evaluate potential legislative options to address any future continued improvements in the funds; RETROACTIVE.

Create new sections of KRS Chapter 160 to establish a process for the creation of new independent school districts; define terms; establish a petition process for voters of a qualifying city to place the question of creating a new independent district and local board of education on the ballot; specify the requirements for the question and the board of education provisional election; establish the initial terms of office for the interim board of education; establish the transition of authorities from the originating district board of education to the boards of both the altered originating district and the new independent district; require the Kentucky Department of Education to calculate assets and liabilities of the originating district for division to the altered originating district and the new independent district; authorize the altered originating district to maintain control and use of assets until the scheduled transfer to the new independent district and authorize the continued payments of debts; establish a negotiation process between the altered originating district and the new independent district to resolve the division of the originating district's assets and liabilities; establish a deadline for the negotiation to conclude; provide a process for resolution of disagreements; establish a deadline for the transfer of all assets and debts; authorize the altered originating district to continue to assess and collect taxes for both districts until the close of the tax year in which the new independent district is fully operational; provide for the distribution of collected taxes during the transition period; require the mayor of the city to call the newly elected interim board of new independent district to meet; allow the interim board to request assistance from the Kentucky Department of Education; establish the transition process for the new independent district to become fully functional; allow the interim board to submit a waiver request for a statute or administrative regulation to the Kentucky Board of Education; authorize the interim board to enter into service contracts with another school district during the transition; establish a process for the interim board to vote to terminate the establishment of the new independent district due to financial nonviability during the transition; establish the transition from an interim board to a fully functional board of the new independent district; require the continued collection of taxes restricted to the payment of debt or interest; waive the requirement for school-based decision making for the first year of operations of the new independent district; require the interim board of the new independent district to develop a transition plan and establish the requirements of the plan; create a new section of KRS Chapter 157, relating to state formula funding calculations, to establish a projection model for the first year of full operations of the new independent district and the altered originating district.

Amend KRS 154.32-010, relating to the Kentucky Business Investment Program, to add laboratory equipment, computer servers, software, capitalized leases, and leasehold improvements directly related to research and development, headquarters, high-technology operations, or service sector facilities to the definitions of "eligible costs" and "start-up costs," respectively.