The General Assembly adjourned Sine Die on Friday, March 28, bringing an end to the 2025 legislative session. until Tuesday, January 6, 2026. 
 

For a 30-day “short" non-budget session, it was action-packed with legislators putting 153 bills and 10 joint/concurrent resolutions on the Governor's Desk. As of this writing, 129 have become law either with the Governor's signature, without the Governor's signature, or over the Governor's veto. The 34 bills and joint/concurrent resolutions delivered to the Governor on the session's final two days await action by the Governor, but the legislature will not have the opportunity to override any vetoes he may issue in the next 10 days.  
 

Top 10 List
It's hard to succinctly summarize the past three months of legislative action. Obviously, you are more interested in the bills/issues of most interest to your specific interests, which are below. However, we do think it is helpful to highlight some bills, issues, and political dynamics that defined the 2025 Regular Session to better inform your specific client results. So with that introduction…our Top 10 List from the 2025 Session (In No Particular Order):
 

1. 29 Vetoes - The Governor vetoed more bills in the 2025 Session than in any previous session during his terms. As of this writing, he has vetoed 24 bills in their entirety and issued line-item vetoes on five bills. As expected, the Republican supermajorities in each chamber have overridden all 29 with the exception of a couple of line items in SB 25. The total number of vetoes for this session could grow as the General Assembly sent him an additional 34 bills on the session's final two days that he could potentially veto..
 

2. Education Lead The Way - Of the 129 bills/resolutions that have become law thus far, 28 of them were related to education, and this was greater than any other issue area for this session. Some of the new laws include these notable bills:
HB 4 - Prohibit DEI programs in postsecondary
HB 208 - Requires schools to have policies to limit cell phone use by students
SB 207 - Procedures for creation and administration of schools of innovation
HB 240 - To get students reading by third grade, this bill would allow for retention in K or 1st grade 
HB 241 - Adjusts the school calendar for flooding & flu outages and addresses virtual school enrollment
HB 424 - Addresses tenure for professors at postsecondary institutions
 

3. Business Regulations - If there was a theme for business interests this session, it was to rein in Executive Branch regulations. Some were specifically directed at the promulgation process, and some were directed at specific industry areas by prohibiting the state from requiring more stringent regulations, permits, or policies than the federal level. Here are some examples:
HB 6 - Establishes limitations on executive branch agencies to promulgate regulations
SB 65 - Deals with administrative regulations that the legislature found lacked statutory authority
SB 84 - Creates a standard for judicial review of executive branch agency actions 
SB 89 - Deals with water permits and not having more stringent requirements than Federal requirements
HB 346 - Standards for assessment of emissions of emergency engines for air permit fees  
HB 398 - Prevent KY OSHA from enforcing rules that are more stringent than those of the Federal OSHA 
 

4. Budget & Taxes - The legislature held firm on their promise to tighten the reins on spending and appropriating money in this non-budget session. Any monies appropriated were redirected from other appropriations or to make corrections to the 2024 budget. There were some bills considered on tax credits/incentives that became law. A few of those included:
HB 775 - A variety of tax issues, including a tax credit for data centers and taxing THC beverages
HB 1 - Reduce individual income tax rate from 4% to 3.5%. 
HB 2 - Exempt "bullion currency" from sales tax.  
HB 622 - Included school facility and school resource officer funding, as well as budget corrections.
HB 606 - A multi-county economic development authority and a tax credit for a festival project in Louisville
SB 28 - Department of Agriculture economic development initiative
 

5. Gaming/Alcohol/Tobacco - For a short session, there was significant movement on several issues that ran through the Senate & House Licensing & Occupations Committees. Those included:
SB 100 - Retail licensure and enforcement provisions related to vaping
SB 202 - Establishes a regulatory structure for THC-infused beverages, “weed water"
HB 618 - Addresses three alcohol issues: auctioneer sales, retail sales to bars, and barrel picks for bars
HB 566 - Line-item vetoes to the Racing & Gaming Commission clean-up bill
 

6. Few Health Care Bills…But Big Medicaid Changes - Due to policy differences between the House and Senate and the Chairs of the Health Services committees, many of the big health care issues did not make it across the finish line. The one healthcare policy area that did see some activity was Medicaid. The passage of HB 695, omnibus Medicaid triage legislation, intended to slow spending growth in Medicaid, accompanied by the establishment of the Medicaid Oversight and Advisory Board, passed as part of HB 695 & SB 25, signals a change in Medicaid policy that is likely to play out in future sessions.
 

7. Transportation…Popular - The transportation sector not only brought the most popular bill of the session but also gave us the only automated camera-involved safety bill to pass this session. HB 15, sponsored by House Majority Floor Leader Rudy, lowered the age for driver's permits from 16 to 15, and was arguably the session's most popular bill in terms of co-sponsors, media coverage, and hallway talk. Additionally, HB 664, sponsored by Rep. Blanton, related to highway workzone safety, overcame controversy in past sessions to become the only camera-involved safety measure to pass this session.
 

8. Influence from DC - It was clear that the 2025 Session was influenced by activities of the new administration in Washington. Whether it was conservative fiscal policy in response to what may be a significant Medicaid funding cut from Congress that also influenced HB 695 on Medicaid. Or maybe it was the anti-DEI legislation that aligned in many ways with the Executive Orders signed by President Trump on the subject. Or several resolutions and bills creating a KY version of the DOGE initiatives. There was certainly some influence from DC.
 

9. Confirmation of Appointments - Consistent with its usual practice, the Senate confirmed 95 gubernatorial appointments to a variety of executive branch boards and commissions via simple resolution on the session's final two days.
 

10. Looking Down the Road - Sine die adjournment is always a bittersweet event, marking an end and a beginning. This session's adjournment is more so than usual as the General Assembly will be moving from the chambers it has occupied since 1910 to temporary housing in order that a total renovation of the Capitol can take place, a process that may not be completed until 2028 at the earliest. 
 

Interim committee meetings will begin in June to prepare for the 2026 Session, which will be a budget session tasked with the constitutional duty of adopting an Executive Branch Budget and Road Plan.   While coming up with a two-year spending plan is always a massive undertaking, there is reason to believe it may be even more challenging in 2026 in view of changes that are likely to have taken place with federal funding of many programs that affect the Commonwealth's budget. 
 

Big I Update
A successful 2025 Regular Session has come to an end. Many Thanks to our Big I members who engaged with us in the legislative process this session, and for those that didn't…we stand ready to help get you involved in the future! 

We also want to THANK the many legislators who supported our industry in the 2025 Session. There are too many members to list them all here individually, but we would specifically THANK our Banking & Insurance Chairs, the members of the House and Senate Banking & Insurance Committees, and Sen. Rick Girdler, Rep. Josh Bray, and Rep. Sarge Pollock, who carried our priority legislation this session. It is easier to address our industry's issues when we have insurance agents in the legislature, and we are blessed with many! Thanks!

So what Passed & What Didn't
We have provided an update on bills of interest that passed below and in the attached bill report to aid in your compliance efforts. Additionally, you can review your complete Big I bill list for a complete picture of the final fate of bills we tracked this session.

LAW
HB 390 - M. Meredith  - Adopts the IICMVA real-time insurance verification processes
HB 233 - W. Williams - Addresses fraudulent practices of contractors in an insurance claim situation
HB 19 - J. Hodgson - Restricts drone usage 
HB 184 - Clines - Extend insurance regulatory sandbox/Adopts NAIC Safe Harbor on transaction netting
SB 18 - R. Girdler - Surplus lines for auto dealer liability
SB 63 - B. Storm - Allows off-highway vehicles access to roads/Insured as Motorcycles
SB 136 - J. Higdon - Electronic titling & lien legislation/Salvage Valuation reg language
SB 201 - P. Wheeler - Division of W/C ALJ governance reform/UPIKE B Readers/Audiologist
SB 183 - M. Nunn - Adds “proxy adviser"  language
HB 493 - S. Pollock - Regulation of towing companies
HB 188 - R. Duvall - Motor vehicle driveaway plates - Delivered to Governor

Didn't Pass
HB 416 - J. Bray - PIP Reform to apply workers comp fee schedule
HB 20 - J. Hodgson - Restricts use of ALPRs
HB 388 - T. Roberts - Allows litigation against corporate boards over ESG & DEI policies
HB 502 - M. Whitaker - Exemption from W/C 45-day billing
SB 185 - M. Nunn - Restricts use of ALPRs
SB 191 - P. Wheeler - Omnibus W/C reform bill
SB 123 - Sen. Adams - Matching - Senate B&I
SB 99 - D. Douglas - Hands-Free Legislation
HB 420 - L. Burke - W/C for first responders
HB 166 - A. Tackett Laferty - Omnibus W/C Reforms
HB 413 - K. Moser - Point of Sale Pharmacy Rebates
SB 12 - S. Meredith - Point of Sale Pharmacy Rebates