Thank you to commissioner clark and her team for our informative quarterly commissioner connect call on february 18 at 2pm est. 

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LEGISLATIVE SESSION 2025

And So it Begins…
With ice, snow, and frigid weather blanketing the state, the General Assembly's 2025 Session was gaveled in on Tuesday, January 7. This is a 30-day “short"  session where the first week is marked by ceremonies of swearing in members, formal leadership elections, and officially setting committee rosters and chairmanships. The first week of a short session generally sees slower legislative movement.
 

HB 1 Continues Tax Philosophy
The main legislative action this week was the GOP supermajorities taking another step toward their goal of eliminating the state's income tax on individuals. House Bill 1, filed on the first day of the session, reduces the individual tax rate from 4% to 3.5%, as outlined in the revenue triggers adopted in 2022's HB 8. The bill passed the House with bipartisan support on Thursday by a margin of 90-7. It is now in the Senate, where it was given a reading and favorably reported by the A&R Committee on Friday.
 

Though House Bill 1 is likely to proceed with little resistance it may be the first sign of what is to come this session: intra-party jockeying. On HB 1, there have been floor amendments filed by majority members in each chamber that would have removed the income tax reduction triggers and moved the state more quickly to 0% income tax regardless of the state's finances. Similar reforms were passed in Kansas and have since been partially rolled back due to negative state revenue consequences. These amendments can be tricky as it is tough for many legislators to vote against guaranteed tax decreases. The House ultimately ruled the amendment as unconstitutional because it would have created an unbalanced budget. The Senate will have to deal with the same amendment when they return from recess.   
 

Key Bill Introductions 
As usual in the opening week, there were many bill introductions: 262 bills, to be exact. Other than HB 1, HB 2, and HB 15, the leadership of each chamber has deferred the filing of other priority bills, denoted by a low number, until February. House Bill 2, sponsored by Rep. T.J. Roberts, enforces the bouillon sales tax exemption that the Department of Revenue has been unwilling to implement. HB 15 would lower the age for drivers to get their learner's permit. 

Governor Gives SOC Speech
Democrat Governor Andy Beshear gave his State of the Commonwealth address on Wednesday to a joint session of the General Assembly. In the past, Governors have used this speech as a stage for announcing major policy initiatives, but with Republican supermajorities in each legislative chamber, it was more of a review of economic development efforts. The Governor did highlight the need for a statewide effort at talent attraction and the need to increase teacher pay.
 

Looking Ahead
The legislature adjourned on Friday, January 10, and will not return to session until Tuesday, February 4. 
Other than HB 1, there was very little committee activity this week, but action will pick up after the return to session in February since early movement of bills during a short session is crucial to their chances of enactment. During this second part of the session, the General Assembly will not be in session on Mondays. The schedule for standing committee meetings during the 2025 Session has been set and can be found HERE. 
 

Big I Update
Welcome to the 2025 Regular Session of the General Assembly! Tune in here every week to hear about the key bills and issues impacting independent insurance agents in the Kentucky legislature. Week 1 is in the books, but first, some housekeeping…Weekly during the session, we will highlight several bills/issues of interest in this report, but we encourage you to review the Big I bill list, which is updated nightly and can be accessed HERE. This is a static link that you can bookmark and review at any time, or you can subscribe to get it emailed to you periodically.

Now down to business.

Committee Makeup
As we have previously communicated this is an organizational session when new committee chairs can be appointed and new committee assignments made. Fortunately for us, we return both of our Chairmen to Banking & Insurance: Rep. Michael Meredith in the House and Sen. Jared Carpenter in the Senate. 

We did pick up a few new members on each committee, which are listed below. You can view the full B&I committee rosters at these links: House & Senate.

House
Rep. Jared Bauman (R) - Replaces Jacob Justice (retired). Bauman is a business-friendly member
Rep. Adreiell Camuel (D) - Replaces Cherlynn Stevenson (lost election). In first full term from Lexington
Rep. Mike Clines (R) - Replaces Danny Bentley (retired). An independent agent from NKY.
Rep. Daniel Grossberg (D) - Replaces Rachel Roberts (retired). In real estate from Louisville.
Rep. Tony Hampton (R) - Additional member. Freshman from Georgetown who is retired law enforcement
Rep. Erika Hancock (D) - Replaces Rep. Rachel Roarx. State Farm agent from Frankfort.
Rep. Samara Heavrin (R) - Additional member. Business-friendly member from E-Town.

Senate
Sen. Cassie Chambers Armstrong (D) - Replaces Sen. Gerald Neal. Attorney from Louisville.
Sen. Steve Rawlings (R) - Replaces John Schickel (retired). Freshman from NKY.
Sen. Greg Elkins (R) - Replaces Johnnie Turner (deceased). Business-friendly member from Central KY

Proactive Issues
Used Car Dealer Coverage - SB 18 was filed this week by Sen. Rick Girdler. The bill provides surplus lines carrier coverage as an option for used car dealer liability insurance. This is a Big I priority and is a specific member-driven response to address an issue in the market. Big I member Adam Sheridan reached out to the Big I Government Affairs team back in the summer, and we worked with him to shape this legislation to provide more options for agents trying to place coverage for used car dealers in a market that has gotten very hard. We encourage you to contact your Senator and ask them to vote YES on Senate Bill 18.

Bills to Review
HB 184 - Extends the sunset date for the insurance regulatory sandbox
SB 24 - NICB/IIK bill to include claim inflation in the definition of insurance as in LA
SB 12 - A health insurance bill that would require drug rebates to be passed through to customers at the point of sale rather than being used to lower premiums

More to come…we will provide our next update after the legislature returns to session in February.
 

Legislative Calendar
While it may be changed by leadership, the current Legislative Calendar can be accessed HERE. Key dates remaining include:

January 10 to February 3: Recess
February 4: Part 2 of Session Convenes
February 18: Last Day for Filing Senate Bills
February 19: Last Day for Filing House Bills
March 13 & 14: Concurrence Days
March 15-26: Veto Recess
March 28: Sine Die Adjournment
 

Join the Big I Kentucky Government Affairs Committee

Connect with Big I Kentucky President/CEO Tara Purvis for information on current legislative bills affecting the independent insurance agencies in Kentucky 

 Looking for resources to educate your clients on the current insurance market? Download the Hard Market Toolkit.

The Kentucky Agents Political Action Committee (KAPAC) is our state level PAC that gives Kentucky's independent agents a voice at the State Capitol. KAPAC allows Big I Kentucky to fight for pro-insurance legislation and support candidates that support these efforts.

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