Week three of the 2025 Legislative Session
It’s official. House Bill 1 has been signed into law, marking another step forward in delivering tax relief to hardworking Kentuckians. This measure authorizes the next half-percentage reduction in the state’s individual income tax, bringing it down from 4 percent to 3.5 percent. As a result, an estimated $718 million will remain in the hands of Kentucky families, allowing them to save, invest, and spend as they see fit. This reduction will officially take effect on Jan. 1, 2026, and continue our commitment to a responsible tax policy that benefits individuals and the state’s economy.
With this priority completing the legislative process, several other priorities continued during week three of the 2025 Legislative Session ahead of bill filing deadlines next week. The last day to file legislation in the Senate is Tuesday, February 18. The state House of Representatives deadline is Wednesday, February 19.
I introduced another nuclear energy-related measure in week three, Senate Bill (SB) 179. This bill establishes a grant program within the Kentucky Nuclear Energy Development Authority (KNEDA) for advancing and locating nuclear energy-related projects within the commonwealth. $10 million in funds already appropriated to the University of Kentucky for its operations would be set aside for these grants. KNEDA would be responsible for promoting the grants and accepting grant applications. A sub-committee of advisory board members would administer the grants. Nuclear energy grant funding is essential to allow Kentucky to compete with other states in this rapidly growing energy sector.
SB 111, which I noted last week, was approved in committee in week three and now qualifies for consideration by the full Senate. I was joined in committee by Cabinet for Health and Family Services Secretary Eric Friedlander and Department of Juvenile Justice (DJJ) Commissioner Randy White to present the bill.
SB 111 introduces key reforms to DJJ to improve the juvenile detention system’s safety, efficiency, and care. Two central components of the bill are constructing an acute mental health detention center and at least two female-only detention centers—one located in Central Kentucky and another in Western Kentucky. If population trends indicate a need, a third center may be built in Eastern or Northern Kentucky. The decision to build new female facilities rather than renovate existing ones stems from the challenges associated with separating male and female offenders, as well as violent and non-violent individuals, under the state’s current regional model. Officials determined that retrofitting existing centers would exceed the costs of building new, standalone female facilities.
The bill allocates $45 million for each new female detention center and an additional $5 million to design a high-acuity mental health center. The new mental health center will provide intensive care for youth with significant mental health challenges, aligning with a similar initiative in South Carolina. Legislators stressed the importance of these investments to improve the quality of care for juvenile offenders while enhancing public safety.
Additionally, the bill provides clarity regarding the handling of violent, mentally ill juveniles in medical settings. It authorizes law enforcement to take custody of individuals who engage in violent or disruptive behavior in hospitals, establishing clear protocols for transferring them to appropriate treatment or detention facilities. These facilities would include those offering the highest levels of mental health care when necessary.
While some concerns were raised about the bill’s costs, I emphasized the need for these reforms to address longstanding issues within the juvenile justice system. I’m happy to say the bill passed out of committee with bipartisan support, with lawmakers acknowledging that while the investments are substantial, they are crucial to ensuring the safety and well-being of juveniles and the broader community.
I also passed SB 103 out of committee this week with unanimous support. This bill creates more transparency in the Office of Vocational Rehabilitation (OVR) by requiring the agency to promulgate administrative regulations and report their activities and a complete operating and financial statement to the Governor, Legislative Research Commission for referral to the Families and Children Committee, which I chair, on an annual basis.
Some measures won Senate approval during week three and are now moving to the House for consideration.
SB 14 prevents pharmaceutical manufacturers from denying 340B drug pricing to Kentucky hospitals and pharmacies if they offer it in other states, ensuring fair access to discounted medications for safety-net providers and empowering the attorney general to investigate violations.
SB 26 prohibits discrimination based solely on disability in adoption, foster care, or parental rights decisions. It requires individualized assessments, mandates documentation for transparency, and aligns with the ADA to protect children and support families.
SB 59 removes regulatory barriers for faith-based organizations to build affordable housing on their existing properties. It designates these projects as permitted uses in residential and commercial zones while maintaining local oversight. The institution must have owned eligible properties before Jan. 1, 2025.
SB 61 updates pool regulations for improved safety while clarifying that pools on single-family home properties remain exempt from public pool rules, even if rented to guests.
SB 64 expands protections for critical infrastructure by increasing penalties for copper theft, which has caused 911 outages and power failures. The bill includes cable, telephone, and broadband systems and takes effect immediately upon passage.
SB 73 strengthens laws against sexual extortion by introducing clear penalties, civil remedies, and educational initiatives. The bill focuses on protecting minors, empowering victims, and equipping schools with tools to prevent and respond to these crimes.
SB 76 modernizes escrow retainage rules by raising the contract threshold from $500,000 to $2 million. It ensures timely payments, requires funds to be held in escrow, and prohibits contract waivers to protect contractors and subcontractors.
SB 85 expands the authority of the Auditor’s Office and Commonwealth Ombudsman to improve oversight of state agencies. It clarifies roles, enhances confidentiality protections, requires state agencies to provide software access, and ensures timely reporting of suspected child abuse while maintaining confidentiality. An emergency clause allows the bill to take immediate effect upon passage.
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.