Kentucky State Laws

✅ Law #1: SB 76 — Real Estate Improvement Contracts / Escrow Account Rules

📝 Real Estate Improvement Contract Escrow Law (SB 76)

  • What it does:

    • For real estate improvement contracts worth $2,000,000 or more, the law requires that any “retainage” (money held back by the project owner) must be deposited in a separate escrow account with a bank or trust company in Kentucky. (apps.legislature.ky.gov)

    • Also prohibits contract terms that waive any requirement of this law. In other words, contractors can’t be forced by contract to give up their right to that escrow protection. (apps.legislature.ky.gov)

  • Cost to taxpayers / employers / property owners:

    • For large real estate contracts, owners will have to set up escrow accounts, manage them, possibly pay fees to banks/trust companies and interest. This adds administrative and financial burden. (apps.legislature.ky.gov)

    • Contractors benefit by having clearer protection over retainage.

  • Who it helps/affects:

    • Contractors working on big real estate improvement projects: gives them stronger guarantee of being paid once work is completed properly.

    • Property owners / developers with big contracts, who now have to manage escrow and funds.

    • Smaller contracts under $2M are not affected by the escrow requirement, so smaller contractors are less impacted.

  • Who sponsored / initiated it:

    • Sponsored by Sen. Greg Elkins (Republican). Massive bipartisan support (the bill passed unanimously in both chambers). (apps.legislature.ky.gov)

  • Who opposed it / concerns raised:

    • Not much visible opposition: the bill passed 37-0 in Senate, 100-0 in House. (apps.legislature.ky.gov)

    • Possible concerns by some large property owners about cost, but no strong public record of dissent.

✅ Pros & ❌ Cons

✅ Pros:

  • Protects contractors from non-payment or delays by requiring escrow.

  • Adds fairness to large construction projects.

  • Provides financial security and clarity for contractors about when they get paid.

❌ Cons:

  • Adds administrative work & cost for project owners (setting up and managing escrow).

  • Might increase project costs or delays due to extra procedural steps.

  • For contracts just under threshold, similar issues remain unaddressed.

🗳️ The Ballot Beacon Takeaway

Kentucky’s SB 76 makes large real estate improvement contracts (≥ $2 million) place withheld payment into escrow and forbids contract terms that waive that right — better protection for contractors, but more burden on big project owners.

✅ Law #2: HB 398 / SB 84 — Occupational Safety & Health Act / Agency Review Reforms

📝 Kentucky OSHA Alignment & Legal Review Reform (HB 398 / SB 84)

  • What it does:

    • Brings Kentucky’s OSHA (occupational safety & health) laws more in line with federal OSHA standards. This includes:
      • Establishing a limitations period for issuing safety violations. (Littler Mendelson P.C.)
      • Creating a “de minimis” (minor or negligible) violation category for administrative issues. (Littler Mendelson P.C.)
      • Allowing employers to recover certain costs/fees if they win an appeal. (Littler Mendelson P.C.)
      • Requiring “personal knowledge” for reporting violations—meaning the reporter must know the violation personally. (Littler Mendelson P.C.)

    • SB 84 changes how courts review decisions from state agencies: adopts a de novo review standard (courts don’t defer to agency decisions, but review anew). (Littler Mendelson P.C.)

  • Cost to taxpayers / employers:

    • Employers may have lower risk of unclear or unfair violations. Less uncertainty, possibly fewer surprise costs. (Littler Mendelson P.C.)

    • Agencies and courts may see more litigation / appeals, which could increase costs. (Littler Mendelson P.C.)

  • Who it helps/affects:

    • Employers in Kentucky who want clearer regulatory expectations.

    • Workers, to the extent that alignment with federal standards may ensure safety and consistent enforcement.

    • Legal system (courts) and agencies (new procedures).

  • Who sponsored / initiated it:

    • Introduced by Kentucky legislature; though Governor Andy Beshear vetoed both bills, the legislature overrode the vetoes. (Littler Mendelson P.C.)

  • Who opposed it / concerns raised:

    • Some worker safety advocates worry that aligning too closely with federal minima may weaken state-specific protections. (Littler Mendelson P.C.)

    • Concerns about whether Kentucky will maintain its state OSHA plan status if changes are too lax. (Littler Mendelson P.C.)

✅ Pros & ❌ Cons

✅ Pros:

  • Brings clarity, predictability for businesses and compliance.

  • Reduces risks of open ended or “surprise” citations.

  • Encourages fairness in appeals and judicial review.

❌ Cons:

  • Some safety protections may be reduced or delayed under new standards.

  • More legal burden on agencies / courts.

  • Possible loss of some protections workers relied upon under stricter state rules.

🗳️ The Ballot Beacon Takeaway

Kentucky’s HB 398/SB 84 align state safety rules with federal OSHA, add clearer timelines, appeal rights, and judicial review reforms — improving consistency for employers, but sparking debates about whether worker protections are diluted.

✅ Law #3: Senate Bill 73 — Sextortion Becomes a Felony

📝 Sextortion Law (SB 73)

  • What it does:

    • Defines sextortion as its own crime under Kentucky law — coercing someone to produce sexual content or perform sexual acts via threats, blackmail, etc. (Kentucky Youth Advocates)

    • Makes it easier to collect legal damages from perpetrators. (Kentucky Youth Advocates)

    • Requires schools to provide information to families about sextortion. Also schools must include sextortion info in bullying/harassment presentations (starting in 4th grade). (https://www.wkyt.com)

  • Cost to taxpayers / state budget:

    • Some cost for school districts to develop informational curricula and provide materials. (https://www.wkyt.com)

    • Law enforcement and courts may incur costs due to prosecution, investigations, and potentially more cases.

  • Who it helps/affects:

    • Victims of sextortion (especially minors). Gives legal recourse.

    • Schools, students, parents — more awareness and protection.

    • Perpetrators (legal responsibility increases) and possibly educators who need training.

  • Who sponsored / initiated it:

  • Who opposed it / concerns raised:

    • I didn’t find major public opposition in my sources. Some concerns might come from costs or ensuring fair legal definitions/proof burden.

✅ Pros & ❌ Cons

✅ Pros:

  • Stronger protection for minors and others from digital extortion and abuse.

  • Promotes awareness in schools; encourages prevention.

  • Legal clarity: perpetrators can be held accountable.

❌ Cons:

  • Schools may be under-resourced to meet the new information/training requirements.

  • Legal definitions might lead to challenges: what counts as coercion, threat, etc.

  • Increased caseloads for law enforcement/courts could strain resources.

🗳️ The Ballot Beacon Takeaway

Kentucky’s SB 73 makes sextortion a felony starting June 2025, forces schools to teach about it, and gives victims more legal tools. Big win for protection—but with cost and implementation challenges.

✅ Law #4: Senate Bill 15 — Minimum Wage Exceptions & Declaring an Emergency

📝 SB 15 — Minimum Wage Exceptions

  • What it does:

  • Cost to taxpayers / employers:

    • Employers in certain industries or with certain types of employment covered by these exceptions could pay less (lower cost).

    • Potential risk of worker pay reductions where exceptions apply.

  • Who it helps/affects:

    • Employers who benefit from exceptions (industries covered).

    • Workers in those sectors may not get full minimum wage under new exceptions.

    • Everyone else not affected if they remain under standard law.

  • Who sponsored / initiated it:

    • Sponsored by Kentucky legislators (Senate Bill 15); passed unanimously in the Senate (38-0). (apps.legislature.ky.gov)

  • Who opposed it / concerns raised:

    • Likely concerns from labor advocates about fairness and risk of exploitation.

    • Worker groups may argue exceptions undermine minimum wage protections.

✅ Pros & ❌ Cons

✅ Pros:

  • Gives flexibility to employers for certain cases.

  • Emergency declaration can allow quicker response to economic issues.

❌ Cons:

  • Exceptions can reduce wages for some workers, possibly increasing inequality.

  • Harder to enforce or monitor exceptions.

  • Risk of misuse or over-broad application of exceptions.

🗳️ The Ballot Beacon Takeaway

Kentucky’s SB 15 (Acts Ch. 22) adds exceptions to the minimum wage law under certain conditions, effective right away via an emergency clause. Helps select businesses, but could leave some workers with less pay protection.

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