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KY

Kentucky 2026 Regular Session

Senate Standing Committee on Economic Development, Tourism, and Labor (2-5-26)

Economic Development, Tourism, & Labor

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Summary: The Senate Standing Committee on Economic Development, Tourism, and Labor met with a quorum and considered two bills. Senate Bill 136, sponsored by Vice Chair Frommeyer, made a housekeeping change to unemployment insurance fraud reporting by correcting prior language so suspected fraud is reported to the appropriate county or commonwealth attorney and the U.S. Department of Labor, rather than the Justice and Public Safety Cabinet. Members asked about how often local prosecutors pursue these cases and whether the state follows up on clawing back fraudulent payments; the cabinet said it would check on the exact recovery process. Senator Boswell also raised broader concerns about delays and difficulties claimants face in the unemployment insurance system. The committee approved SB 136 unanimously, 11-0, and reported it favorably. The committee then heard Senate Bill 183 from Senator Nunn, which would regulate proxy voting advice by requiring transparency, economic analysis, and disclosure when proxy advisers rely on non-financial factors or give advice inconsistent with a company board’s recommendation. Nunn said the bill is intended to protect Kentuckians’ retirement and investment interests, prevent politically or ideologically driven advice, and create enforcement through Kentucky’s deceptive trade practices law. Senator Clemens questioned how the bill would apply to nontraditional groups and whether the affected firms are registered or regulated; a witness, Chris Nolan, said there is little federal oversight and no Kentucky oversight of proxy adviser firms. Senator Maiden supported the bill, while Senator Thomas opposed it, arguing investors should be free to seek advice based on their own interests and that the bill could chill such advice. The committee passed SB 183 by a 9-2 vote and reported it favorably.
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Summary: The Budget Subcommittee met without a quorum at first, then approved the minutes once a quorum was reached. The first presentation was from the Department of Housing, Buildings, and Construction within the Public Protection Cabinet. Commissioner Max Fuller and Deputy Commissioner David Moore reviewed the department’s licensing structure, noting about 50 license types and roughly 42,000 active licenses, with most tied to plumbing, HVAC, and electrical work. They compared Kentucky’s fees and requirements with neighboring states and said Kentucky is generally in line or slightly below surrounding states when local and contractor licensing requirements elsewhere are considered. The department also described staffing and inspection pressures. Officials said boiler inspections have a measurable backlog, with about 18% of state-jurisdiction boilers and pressure vessels past due statewide and a higher percentage in Jefferson County. They said building code plan review turnaround has risen from about 30 days to roughly 33–35 days, and that some areas are struggling to maintain same-day plumbing inspections and three-day HVAC inspections. Members asked whether the agency could handle increased housing construction, especially in rural areas; the department said it had requested additional plumbing staff and a plan reviewer, particularly for the Bowling Green/Warren County area, and noted that electrical inspectors are stretched across the state and are also pulled into disaster response work. The committee then heard from Kentucky Venues and the Kentucky State Fair Board on the Kentucky Exposition Center renovation and related operations. David Beck, board chairman David Williams, CFO Tony Shrek, and others said the project is progressing ahead of schedule, with keys to the new building expected in December and the facility already booked for future events. They reported strong tourism and economic impact, including record activity at the Exposition Center and downtown convention center, and said the Farm Machinery Show and other events continue to drive demand. Members asked about budget status, and the presenters said inflation, delayed access to funds due to the RFP/design process, and added costs have left them short of money to finish all planned work. They identified phase three funding needs, including food and beverage service improvements and completion of Freedom Hall seating, and said they are considering bringing food and beverage operations back under their control to improve efficiency and revenue. The meeting ended with no formal votes on the presentations and an announcement that the committee would meet again the following Tuesday.
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Summary: The committee heard budget-related testimony from the Department of Corrections on a request for additional funding to take over operations of the Lee Adjustment Center, including $2.2 million in fiscal year 2027 and $5.2 million in fiscal year 2028. The witness said the governor’s budget did not recommend the request. Members asked about the cost savings of private operation versus state operation, the facility’s role in the department’s long-term goals, and whether the state intends to move toward operating all adult correctional facilities directly. The Department of Juvenile Justice then presented on staffing, recruitment, retention, and facility planning. Officials described recent pay increases and other investments, including a 10% security pay raise in 2021, an 8% state employee raise in 2022, higher youth worker starting salaries, and $4.8 million in 2023 funding to sustain salary increases. They said DJJ has also expanded mental health and medical staffing, improved recruitment efforts, and seen an upward trend in hiring. In response to questions, the commissioner said barriers to recruitment and retention include the Tier 3 retirement system, the structured and restrictive nature of detention work, and competition from other employers. He also said the department wants to move toward a regional model for female facilities under SB 162 and believes those facilities can be staffed. DJJ provided staffing figures showing 1,339 funded positions, with 157 filled and 182 vacant at a January benchmark, and 524 detention positions with 450 filled and 74 vacant. Officials said 30 correctional officers were in basic training and expected to join posts soon. Members also asked about the feasibility of staffing additional facilities and the department’s vacancy trends. Finally, the Kentucky Law Enforcement Council testified on a funding request for one attorney, one paralegal, one additional monitor, higher costs for existing monitor positions, and Lexington office rent. Officials said the request is needed to handle a growing decertification caseload and expanded oversight responsibilities as the number of academies has increased to about eight, with more than 2,100 instructors requiring biennial review. They said KLEC currently has one attorney and about 15 total staff, with roughly 180 cases pending, more than 50 complaints left to file, and another 30 cases expected soon. Members asked about current staffing, attorney salary, the number of academies, and the move to a separate Lexington office. No votes were taken, and the meeting adjourned without a quorum for approving minutes.
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Summary: The House convened, received the invocation and Pledge of Allegiance, established a quorum with 89 members present, excused absent members, and suspended rules to allow co-sponsorships and vote modifications. The chamber approved the prior day’s journal and received notice that the Senate had passed SB 13, 22, 46, 51, and 90 and requested concurrence. On second reading, HB 134 (sexual assault nurse examiners), HB 168 with HCS 1 (voting under the influence), and HR 7 (recognizing guiding principles of elections in Kentucky) were reported. The House also recommitted HB 258 to the Transportation Committee and took up HB 312 for third reading and passage. HB 312, relating to concealed firearms and deadly weapons, drew the bulk of the debate. The sponsor argued the bill would allow law-abiding 18- to 20-year-olds to obtain a provisional concealed carry license, saying they are adults in other respects, the Second Amendment protects their right to bear arms, and Kentucky should align with other states. Supporters framed the measure as a constitutional rights issue and cited defensive gun use statistics, while one member argued the root problem is family upbringing rather than guns. Opponents said the bill would increase risks in schools and public spaces, pointed to concerns from school district police and SROs, and cited research linking younger age groups and loosened carry laws to higher firearm violence; they also argued the bill would make communities less safe and that no one’s rights would be taken away by voting no. The sponsor said no stakeholder had expressed opposition and clarified the bill would not change where firearms are permitted. The transcript provided does not include the final vote on HB 312.
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Summary: The committee met to approve the October 21 minutes and then took up BR 25 for the 2026 regular session, a proposal relating to prohibited uses of tax dollars and public resources. The sponsors said the bill is intended to strengthen existing law by adding civil and criminal penalties for taxpayer-funded advocacy on ballot questions, especially in light of controversies during the 2024 election over school officials and districts using public resources to oppose a constitutional amendment. They also described related concerns about school districts hiring third-party lobbyists and public relations firms, particularly in Fayette County, and said the proposal was meant to keep tax dollars focused on public services rather than political persuasion. Committee members raised several concerns about scope and drafting. Some asked whether the bill should specifically mention schools, school boards, and school employees, and the sponsors said they would add that language. Others questioned whether the measure would also affect local government lobbying through groups like KLC and KCO, and the sponsors said they intended to focus narrowly on schools while exempting certain advocacy organizations and internal government lobbyists. Members also asked whether public employees could still speak as private individuals, and the sponsors said yes. Several members suggested splitting the lobbying and ballot-advocacy issues into separate bills, and the sponsors said they would consider that. Members also pressed for clarification on how the bill would apply in practice, including whether it would cover legal challenges to petition drives or only advocacy after a question is on the ballot. Counsel for the sponsors said the bill would not cover some petition-related litigation as drafted, though they believed it should. The sponsors and supporters argued the proposal was needed to give the existing prohibition real enforcement, while some members warned that the language could unintentionally limit legitimate public representation or be too broad if not carefully drafted. No final vote was taken during the discussion.
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Summary: The committee met, approved the October 21 minutes, and then took up BR 25 for the 2026 regular session, a proposal to prohibit the use of tax dollars and public resources to advocate for or against ballot questions, including constitutional amendments. Senator Rawlings and the other presenters argued the current law already bars such advocacy but lacks meaningful enforcement, citing the 2024 school choice amendment campaign and other examples where public officials and school systems allegedly used taxpayer-funded resources to influence voters. They said the bill would add civil and criminal penalties, while preserving First Amendment rights for public employees acting in their personal capacities. Much of the discussion focused on whether the bill should be limited to school districts or broadened to cover other public entities, and on how to define terms such as “advocating in impartial terms.” Members raised concerns about possible effects on county and city lobbying through groups like KLC and KCO, on legitimate factual explanations by public officials, and on whether the bill could unintentionally restrict needed representation for local governments. The sponsors said the measure was intended to be narrow, would be vetted further, and would not bar individuals from speaking on their own behalf. Several members suggested revisions. Representative Lockett asked that schools and school employees be specifically named, and suggested separating the lobbying restrictions from the ballot-measure provisions into different bills. Representative Layman questioned the meaning of the bill’s language and whether it would cover factual testimony by officials. Representative Heen asked about a Jefferson County example involving legal fees used to challenge petition signatures; counsel said that situation would likely be allowable under the bill as drafted, though some members thought it should be covered. No final vote was taken on BR 25 during this discussion.
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Summary: The Senate Standing Committee on State and Local Government first took up Senate Bill 193, a simple measure described as restoring wallet cards for jailers to carry when they are outside the jail. The sponsor noted the fiscal impact was essentially zero, there were no questions, and the committee approved the bill 9-0 for passage to the Senate floor. The committee then heard Senate Bill 9, sponsored by Senator Higdon, which would change how the Teachers Retirement System (TRS) treats sick leave, personal leave, and annual leave in retirement calculations. The sponsor argued the bill is intended to address TRS’s financial challenges by standardizing leave rules statewide, limiting TRS retirement credit to 10 sick days and 2 personal days per year, preventing annual leave from being rolled into sick leave, requiring districts to pay the actuarial cost for any leave beyond the cap, and adding reporting and oversight requirements for participating agencies. He also said the bill would add 30 days of maternity leave, allow voluntary district contributions for tier four teachers, and direct the state auditor to audit TRS and report on agencies. Committee members asked about how overages would be audited and billed, the cost of a sick day, and how the bill would interact with local leave policies, including paid parental leave in some districts. The sponsor clarified that existing accumulated leave would not be affected, that the bill applies going forward, and that districts could still offer more leave but would bear the added cost. Members also discussed whether the maternity leave language set a cap or a minimum, and one senator noted the bill was intended to preserve personal days while stopping annual leave from being converted into pension credit. No vote on Senate Bill 9 was shown in the transcript excerpt.