Week two of the 2025 Legislative Session
I was glad to finally join my colleagues in Frankfort after the constitutionally required three-week recess. The Kentucky General Assembly reconvened to continue the people’s business. The first and most critical order of business was passing House Bill 1, which will lower Kentucky’s income tax from 4 percent to 3.5 percent in January 2026. This reduction is part of a carefully structured process established by House Bill 8 in the 2022 legislative session.
Kentucky’s disciplined approach has earned praise from Moody’s and other leading economic rating agencies for being a well-structured, fiscally sound path to eventually reaching a 0 percent income tax. Unlike the aggressive tax cuts that led to fiscal instability in states like Kansas and West Virginia, our plan ensures long-term success without jeopardizing the state’s financial health. Since implementing these policies, Kentucky taxpayers have saved an estimated $1.8 billion through 2024. With this latest cut, taxpayers will save an additional $718 million annually.
I remain committed to eliminating Kentucky’s income tax and am glad we are taking a responsible and measured approach to get there. The strategy we settled on ensures that we continue to provide essential services for Kentucky’s most vulnerable populations, notably children, while making key investments in pensions, infrastructure, and transformative projects. This is the right way to lower taxes while maintaining essential government services so many rely on. I’m happy to support the legislature’s proven plan that shows we can do both simultaneously.
I was proud to cast my vote to lower individual income taxes and advance Kentucky’s path to greater economic freedom and prosperity.
Several other bills passed this week.
Senate Bill 17, the Mary Carol Akers Birth Centers Act, establishes licensure for freestanding birthing centers in Kentucky. It directs the Cabinet for Health and Family Services to set regulations on medical directors, informed consent, malpractice insurance, and hospital transfer agreements. Centers with up to four beds are exempt from certificate-of-need requirements, which eases regulatory barriers. The bill prohibits abortions in these facilities, maintains liability protections for providers, and classifies them as health facilities. Regulations must be implemented by December 1.
Senate Bill 23 strengthens legislative oversight of administrative regulations and ensures greater transparency and accountability in the regulatory process. It defines “full review” procedures for evaluating rules imposed by state agencies, distinguishing them from informational reviews focusing on minor updates. The bill also mandates agency cooperation during reviews and allows for deferrals when necessary, ensuring flexibility while upholding oversight responsibilities. An emergency clause ensures these changes take immediate effect upon the bill’s filing with the Kentucky Secretary of State’s Office. The Beshear administration requested a slight amendment to the bill before we gave it final passage. The reasonable request requires the legislature to give the administration a five-day notice before being called to testify.
Senate Bill 37 assigns burial or cremation decisions to the coroner or local government when a deceased person has no spouse or next of kin. This ensures clarity and dignified handling of remains.
Senate Bill 126 proposes a constitutional amendment to enhance accountability in the gubernatorial pardon process. The amendment seeks to suspend the governor’s power to issue pardons and commutations during a specified period—from 60 days before a gubernatorial election until the day of the next inauguration. This measure aims to ensure transparency and public trust in using gubernatorial powers. If passed by the legislature with a three-fifths majority, the amendment would appear on the next general election ballot for voter approval. It would need support from a majority of voters to amend the Constitution of Kentucky.
The Kentucky Office of Vocational Rehabilitation (OVR) is responsible for assisting Kentuckians with disabilities by helping them achieve competitive integrated employment and independence. As a father of a daughter with special needs, and the CEO of Easterseals West Kentucky, I’ve long been an advocate for those with disabilities because I understand the enormous contributions they bring to our state. Kentucky currently ranks 48th in the country concerning the employment gap between those with disabilities and those without. This is entirely unacceptable, and OVR has indicated it is working to improve this standing. I recently introduced legislation (SB 103) to bring transparency and improvements to OVR. I’ll share more on this effort as the bill proceeds through the legislative process.
After exhaustive work with the Department of Juvenile Justice (DJJ) working group, numerous stakeholders, and the executive branch, I have introduced another effort (SB 111) to address the issues surrounding our juvenile detention centers in the commonwealth, especially the care of high acuity mentally ill youth. The bill calls for constructing a high-acuity mental health treatment center, which would provide a secure environment and high-quality mental health treatment. This center would be groundbreaking in the country but similar to an effort in South Carolina. I hope we get the bill through this session after the legislature failed to step up last year. I hope to have positive updates for you on this front soon.
SB 111 also calls for constructing two female detention centers in the commonwealth: central Kentucky and western Kentucky. Provisions are also made for a third and fourth detention center, should the number of females held in detention centers dictate the need.
Finally, I’m working on legislation providing grant funding for companies that want to expand their nuclear energy businesses in Kentucky. This is the next step in our ongoing efforts to develop a strong nuclear energy ecosystem in the commonwealth.
Don’t forget to follow legislative coverage at legislature.ky.gov and find live and archived meeting footage at KET.org/legislature and the KY LRC Committee Meeting YouTube Channel. Don’t hesitate to reach out to my office at 502-564-8100 or Danny.Carroll@lrc.ky.gov.