This year’s session of the General Assembly adjourned on Friday, March 28, with several legislative victories aimed at easing regulatory burdens, addressing workforce shortages and continuing tax reform.

One of the most impactful was Senate Bill 23, sponsored by Sen. Steve West. SB 23 strengthens legislative oversight of state agencies that create new administrative regulations. Agencies must now appear before a legislative committee and make a good faith effort to answer questions about their proposals. If they fail to do so, the committee may find the regulations deficient. Those regulations would then be nullified at the end of the following legislative session, and agencies would be barred from immediately issuing a similar rule.

“This is about accountability and transparency,” NFIB State Director Tom Underwood said. “Small businesses shouldn’t have to navigate burdensome rules that were created behind closed doors.”

House Bill 398, sponsored by Rep. Walker Thomas, aligns Kentucky’s workplace safety standards with federal OSHA rules. The legislation prohibits Kentucky OSHA from imposing regulations stricter than the federal baseline, ensuring consistency for businesses operating across state lines.

“Employers shouldn’t be penalized just because they do business in more than one state,” Underwood said. “This helps create a level playing field.”

Another key measure for business owners is House Bill 1, introduced by Rep. Jason Petrie, which continues the state’s phased reduction of the personal income tax. Beginning Jan. 1, Kentucky’s income tax rate will drop from 4% to 3.5%, part of a long-term plan to eventually eliminate the tax altogether.

To help address ongoing labor shortages, especially in skilled trades and transportation, lawmakers passed two additional bills:

• House Bill 54, by Rep. Kim Banta, allows high school trade course credits to count toward full licensure in licensed trades, aiming to fast-track young workers into the job market.
• House Bill 444, by Rep. John Blanton, permits individuals 18 and older to obtain a commercial driver’s license with a hazardous materials endorsement for intrastate hauling — a move intended to bolster the state’s trucking and delivery workforce.

“On behalf of our members, I want to thank the General Assembly for recognizing the challenges faced by Kentucky’s job creators and passing legislation that helps small businesses grow and address workforce challenges,” Underwood said.