Amend KRS 456.010 to define "school violence"; amend KRS 456.030 to allow a victim of school violence to file a petition for an interpersonal protective order; amend various sections of KRS Chapter 456 to conform.

Create a new section of KRS Chapter 160 to define "lobbying" and "public school or school district"; prohibit a public school or school district from expending any moneys to compensate an external individual or entity to lobby; permit employees of public schools or school districts to engage in lobbying services; permit schools to compensate external individuals or entities to represent their interest before the executive or legislative branch of the federal government; create a new section of KRS Chapter 164 to prohibit a public postsecondary education institution from expending moneys to compensate an external individual or entity to engage in lobbying services; permit employees of public postsecondary education institutions to engage in lobbying services; permit public postsecondary education institutions to compensate external individuals or entities to represent their interest before the executive or legislative branch of the federal government.

Create new sections of KRS Chapter 138 to define terms; impose a 4% state retail regulatory license fee on all alcoholic beverage and cannabis-infused beverage sales to consumers by alcoholic beverage retailers; establish procedures and duties of retailers; impose state wholesale regulatory license fees on alcoholic beverages and cannabis-infused beverages and state retail regulatory license fees on kratom, hemp-derived, and cannabinoid products; set out regulatory license fee rates, deductions for timely filing and payment, and licensee duties; amend KRS 211.285 to fund the alcohol wellness and responsibility education fund with 0.5% of the collected state retail regulatory license fees; create a new section of KRS Chapter 217 to establish Department for Public Health laboratory and testing standards and procedures; amend KRS 241.010 to define "state or national conference" and redefine "alcoholic beverages"; amend KRS 241.069 to delete outdated language; amend various sections of KRS Chapter 243 to establish state license fees for new and existing license types; limit licensee discipline to only the specific license in question; establish a souvenir package license for distillers; authorize distillers, small farm wineries, and microbreweries to allow leashed dogs on their premises; allow caterers and special temporary auction licensees at state and national conferences; modify the privileges for various licensees, including a wholesaler, Class B distiller, and special agent or solicitor; add references to the new tax structure and statutes; modify requirements for public notice of a license application; sunset existing excise, wholesale, and other taxes on July 1, 2027, as they relate to alcoholic beverages and cannabis-infused beverages; repeal and reenact KRS 243.075, relating to local regulatory license fees, to allow any moist or wet city or county to impose the fee; authorize audits of each city's or county's regulatory license fee fund by the Auditor of Public Accounts for the most recent 10 years; describe audit penalties for cities and counties that fail to substantially comply; direct cities and counties to reduce the regulatory license fee to 3% within 4 years; limit future cities and counties to a 1% regulatory license fee; amend KRS 244.080 to permanently prohibit a retail license from using a premises if the licensee sold to minors at that premises 3 or more times in 24 months; amend KRS 244.585 to establish limitations for agreements between distributors and breweries or microbreweries; amend KRS 131.250, 139.010, 243.045, 243.430, 243.790, 243.850, and 243.990 to conform; EFFECTIVE, in part, July 1, 2027; EMERGENCY.

Appropriate General Fund moneys from the budget reserve trust fund account in each fiscal year of the 2026-2028 fiscal biennium to various state agencies for miscellaneous projects and programs; APPROPRIATION; EMERGENCY.

Create a new section of KRS 78.510 to 78.852 to allow employers participating in the County Employees Retirement System (CERS) to make a one-time election to offer members who work in hazardous positions who are hired on or after January 1, 2014, but prior to July 1, 2027, so that, in lieu of continued participation in the hybrid cash balance plan (Tier III benefits), these members receive the benefits provided to members in a hazardous position who began participating immediately prior to January 1, 2014 (Tier II benefits); allow for employers in CERS to make a one-time election to opt in to the benefit change by July 1, 2027; allow members who are employed by an employer that makes a one-time election to make a one-time election to opt into the benefit change within 30 days of the employer election and allow a member to pay the costs to convert any other Tier III benefit service in a hazardous position to Tier II benefit service; provide that all new hires after July 1, 2027, in hazardous positions for any employer that makes a one-time election receive Tier II benefits; require that accumulated contributions in the hybrid cash balance plan remain in the member's account; provide that any member eligible to make a one-time irrevocable election to change their benefits shall not have the option to change or make a new election under any circumstances relating to a change in employment or reemployment with a participating employer; amend KRS 61.5955 to exempt members who are participating in Tier II benefits based upon an election of an employer pursuant to this Act; amend KRS 61.680 to allow members who have Tier II and Tier III service to consolidate that service for the purpose of determining eligibility and amount of benefits; amend KRS 78.510 to add December 31, 2013, to the definition of "membership date" for members whose benefit tier changes pursuant to this Act; amend KRS 78.5520 to allow members to pay the cost of converting any other Tier III service in a hazardous position to Tier II service and allow employers to pay the cost of converting any Tier III service that could be converted to Tier II service on behalf of the employee; amend KRS 78.635 to require employers who make a one-time irrevocable election to pay an additional actuarially accrued liability contribution that is sufficient to fund the conversion of benefits; amend KRS 78.640 to allow a member's accumulated employer credit attributable to service converted to Tier II benefits to be transferred to the retirement allowance account; EFFECTIVE July 1, 2027.

Appropriate $43,827,000 from the budget reserve trust fund account in fiscal year 2026-2027 to the Kentucky Public Pensions Authority to fund one-time supplemental payments on July 1, 2026, to recipients of a retirement allowance who have been retired for at least 12 months from the Kentucky Employees Retirement System (KERS) and the State Police Retirement System (SPRS); specify that the one-time supplemental payment shall be equal to the monthly payment received by the recipient in the month of June 2026, not to exceed $1,000; APPROPRIATION; EMERGENCY.

Amend KRS 317.410 to define "direct supervision" and "shop training program"; create a new section of KRS Chapter 317 to establish a shop training program and establish program requirements; amend KRS 317.420 to exempt individuals who participate in the shop training program from KRS Chapter 317; amend KRS 317.450 to require the Kentucky Board of Barbering to issue an apprentice license to a person who has completed 1,200 hours in a shop training program; require 9 months of participation in a shop training program.

Amend KRS 48.195 to establish that the General Assembly shall set the salaries of the Justices of the Supreme Court and Judges of the Court of Appeals.

Amend KRS 158.162 to define "critical incident," require investigations in emergency plans for critical incidents and state the goals of the investigations; amend KRS 158.4410 to task the state school security marshal with investigating serious physical injury or death incidents that occur on school property, at school-sanctioned events, or during interscholastic athletic events; create a new section of KRS Chapter 158 to outline the parameters of the investigation, require referral of potential criminal charges, and require necessary administrative regulations; amend KRS 72.025 to require the coroner conduct an autopsy in deaths occurring on public or nonpublic school property or during a school-sanctioned event.

Amend KRS 160.463 to make technical corrections.

Amend KRS 13A.3102 to make technical corrections.

Amend KRS 139.340 to redefine the sales and use tax nexus standard for remote retailers and marketplace providers to include a sales volume threshold only; amend KRS 131.383 and 141.044 to allow the Department of Revenue to refund an estimated tax payment in the event the payment was submitted to the department in error; amend KRS 96.895 to require reporting by the Department for Local Government to the Legislative Research Commission related to the Tennessee Valley Act in lieu of tax payments; amend KRS 154.30-030 to sunset the tax increment financing state-participation programs; allow TIF projects approved prior to this date to continue to be governed in accordance with the tax incentive agreement's terms and conditions; amend KRS 141.010, 141.019, and 141.039 to conform to the Internal Revenue Code in effect on December 31, 2025, for taxable years beginning on or after January 1, 2026; decouple from certain IRC provisions; delay the deferred tax deduction until January 1, 2028; create a new section of KRS Chapter 138 to define terms and impose an excise tax on fantasy contests; set requirements for administering the tax; amend KRS 139.010 to define "data brokering services"; amend KRS 139.200 to impose sales and use taxes on pay phones and data brokering services; amend KRS 139.202 to exempt from the tax pre-existing lease or rental agreements; amend KRS 224.50-868 to extend the fee currently imposed for each new motor vehicle, trailer, or semitrailer tire sold in Kentucky to July 1, 2028; amend KRS 224.50-872 to require reporting by the Energy and Environment Cabinet to the Legislative Research Commission on the waste tire trust fund; amend KRS 45.760 and 45.770 to limit the transfer of moneys for a capital project from 15% to 5%; amend KRS 45.345 and create new sections of KRS Chapters 65, 160, and 367 to define terms and require rounding of cash transactions to the nearest $.05 increment; amend KRS 139.210 to prohibit retailers from being relieved of their responsibility to collect the correct amount of sales tax regardless of the purchaser' s payment method; create new sections of KRS Chapter 65 in relation to regional industrial development districts to prioritize the purposes for organizing the district; exclude cities and school occupational license taxes from the single occupational license tax imposition restriction; require the fee to expire the earlier of date bonds issued are retired or 20 years; require notification to all local governments with territory in the boundaries of the multicounty region before interlocal agreement is executed; prohibit inclusion of any portion of a city that has not consented to participation; require reporting to the Department for Local Government and the Legislative Research Commission; amend KRS 143A.030 to tax fluorspar as a natural resource; amend KRS 143A.010 to add fluorspar to the definition of "natural resources"; amend KRS 140.160, relating to the inheritance and estate taxes, to extend the deadline for filing a tax return from 18 months to 36 months for deaths on or after July 1, 2026; amend KRS 140.210 to correspondingly extend the due date for payment of tax and discount; amend KRS 134.490 to modify notification requirements for third-party purchasers of delinquent taxes; amend KRS 138.130 to define "premium cigar," and amend "vending machine operator" to include cigarettes, tobacco products, vapor products, or a combination thereof; amend KRS 138.140 to tax premium cigars at the rate of 15% of the actual price up to 60 cents per cigar; require an annual CPI adjustment for the maximum rate and publication on the Department of Revenue's website; amend KRS 138.195 to require a vending machine operator to secure a license for dispensing tobacco products and vapor products in vending machines; amend KRS 141.0205 to order income tax credits; amend KRS 131.190 to allow the Department of Revenue to report on certain credits to the Legislative Research Commission; amend KRS 160.613 to impose the utility gross receipts license tax on the furnishing of pay phone service; amend KRS 139.538 to sunset sales and use tax exemptions for filming and producing motion pictures in this state July 1, 2028; amend KRS 132.096, 139.480, 139.4802, 139.481, 141.0401, 141.206 to delete tax exemptions for property certified as a fluidized bed energy production facility; amend KRS 139.481 to extend the agricultural exemption license number for sales and use taxes to 6 months; amend KRS 154.20-236 to end further applications for the Kentucky Angel Investment ; amend KRS 141.065 to sunset the credit for hiring the unemployed as of January 1, 2028; amend KRS 141.412 to sunset the qualified farming operation credit as of January 1, 2028; amend KRS 151B.402 to sunset the employer High School Equivalency Diploma program incentive credit as of January 1, 2028; amend KRS 171.396 to allocate 15% of the certified rehabilitation credit cap to owner-occupied residential property and 85% to all other property; define "commercial residential property" and "median family income"; amend KRS 171.397 to sunset the current application process; create a new section of KRS Chapter 171 to establish 2 application rounds by which the certified rehabilitation credit may be applied for; allow credit based on 30% of the qualified rehabilitation expenses if the commercial residential property is affordable to households earning 80% of the median family income; amend KRS 441.135 to require compensation received from disposal of property that was purchased from a jail canteen account to be returned to the canteen account; require reporting of proceeds by the jailer; create a new section of KRS Chapter 224A to require an administrative fee of 0.5% to be paid for each project funded by the Infrastructure for Economic Development Fund for Coal-Producing Counties and the Infrastructure for Economic Development Fund for Tobacco Counties; amend KRS 45.050 require audit expenses of audits with federal funds to be paid by the agency being audited; amend KRS 18A.080 Executive branch agencies assessed for the operation of the Personnel Board; require the amount to be determined and collected by Finance and Administration Cabinet based on the number of full-time employees of each agency on July 1; amend KRS 151.723 to prohibit state and local taxes on water withdrawal fees; amend KRS 304.17B-021 to require insurance premium and retaliatory taxes for accident and health and insurance premiums to be deposited into the general fund; amend KRS 11.068 to require the Office of State Budget Director to publish on its website by September 1 of each year an estimate of general fund and road fund revenue loss from tax expenditures; create a new section of KRS Chapter 16 to require billing of Kentucky State Police security services provided to nonstate-operated events; create a new section of KRS Chapter 138 to impose a new excise tax on predictive markets; define terms; amend KRS 160.470 to increase the publication requirements when a local board of education proposes to levy a general tax rate; amend KRS 132.017 to require the petition committee challenge information be published on the home page of the county clerk's website; amend KRS 160.473 to prohibit a personal property tax rate levied by a local board of education to be higher than the rate levied on January 1, 2026; amend KRS 160.607 to prohibit an occupational license tax from being imposed in a school district that does not currently have one imposed as of January 1, 2026; prohibit an occupational license tax rate levied for a school district to increase on or after January 1, 2026; amend KRS 160.613 to prohibit a utility gross receipts license tax from being imposed in a school district that does not currently have one imposed; prohibit a utility gross receipts license tax rate from increasing on or after January 1, 2026; amend KRS 11A.211 to increase the registration fee for each employer of one or more executive agency lobbyist and each real party in interest from $500 to $750; amend KRS 278.010 to define “municipal interlocal gas utility”; exempt “municipal interlocal gas utility” from the definition of “utility”; amend KRS 65.230 to define “municipal interlocal gas utility”; create a new section of KRS 65.210 to 65.300 to provide that municipal interlocal gas utilities shall be considered special purpose governmental entities and pay an annual fee to the Department for Local Government; amend KRS 65.240 to allow public agencies to enter into agreements to acquire natural gas facilities outside of its municipal jurisdictional boundaries; amend KRS 96.5375 to allow municipal interlocal gas utilities to extend or construct natural gas systems outside the constituents city’s boundaries; define municipal interlocal gas utility; allow for the selling or disposal of real property purchased with capital construction funds or equipment or state funds; require reporting of property sold or disposed; require school districts receiving urgent needs school allotments to reimburse the Commonwealth; amend various other sections to conform; make technical changes; repeal KRS 160.621, 160.625, 160.627, 160.633, 160.472, 211.390, and 211.392; EFFECTIVE, in part, August 1, 2026, and January 1, 2027; RETROACTIVE, in part to January 1, 2020; EMERGENCY.

Amend KRS 158.192 to require a local board of education to allow parents and guardians an opportunity to orally recite passages from materials, programs, or events that are subject to appeal; require immediate removal of the material, program, or event if the board denies a parent or guardian the opportunity to orally recite passages.

Create a new section of KRS Chapter 17 to prohibit the public disclosure of uniform citation reports created in response to a motor vehicle accident where law enforcement suspects that the use of drugs or alcohol contributed to the accident until the law enforcement agency receives the results of the any test for drugs or alcohol.

Amend KRS 118.125, relating to primary elections, to remove the requirement that 2 registered voters from a candidate's party and district or jurisdiction must sign the candidate's notification and declaration; amend KRS 118A.060 to remove the requirement that 2 registered voters from a judicial candidate's district or circuit must sign the candidate's petition for nomination; amend KRS 118A.100 to remove the requirement that 2 registered voters from a judicial candidate's district or circuit must sign the candidate's petition for nomination; amend KRS 118.155 to conform, make retroactive effective as of November 1, 2025; RETROACTIVE.