New Laws Take Effect June 27

New laws passed this year by the Kentucky General Assembly will go into effect on June 27. 

Cities can expect changes on a variety of measures from alcohol beverage control investigators certification, firefighter work schedules, municipal audits, the Local Assistance Road Program (LARP), and street-legal special purpose vehicles, to name a few.  

While many laws are taking effect this week, multiple pieces of legislation went into effect immediately in March with an emergency clause.  One piece of legislation that went into effect upon the governor’s signature provides a comprehensive framework for the regulation of cannabis infused beverages by the Department of Alcoholic Beverage Control. Another provides for the State Aid Funding for Emergencies 4860 (SAFE 4860 Fund), administered by the Department of Military Affairs, Division of Emergency Management, which took effect March 31, 2025, and provides critical support for responding to and recovering from recent natural disasters across the state. 

Here’s a look at some of the bills going into effect on June 27: 

House Bill 437, a KLC initiative, requires alcohol beverage control (ABC) administrators and investigators in local governments to be certified under the Peace Officer Professional Standards (POPS), in order to make arrests.  

Senate Bill 63 creates a new section of KRS Chapter 186 allowing street-legal special purpose vehicles to operate on highways in Kentucky, provided that certain conditions are met, including approval from the city or county to allow operation on state highways within the local government’s jurisdiction.  The legislation defines a "street-legal special purpose vehicle" as an all-terrain vehicle (ATVs), utility terrain vehicle (UTVs), minitruck, pneumatic-tired military vehicle, or full-size special purpose-built vehicle (including self-constructed or modified vehicles) that meets specific equipment requirements. For more on this topic, see our article on the City News section of the KLC website.  

House Bill 546 establishes the Local Assistance Road Program (LARP) to provide an additional option for cities to secure state funding for road rehabilitation projects. LARP is administered by the Department of Rural and Municipal Aid within the Kentucky Transportation Cabinet (KYTC), and the program is designed to help local governments address key transportation needs. The application window for the next funding cycle closed on October 1, 2025. A comprehensive review of LARP is also available on our website. 

House Bill 555, a KLC initiative, raises the population threshold for cities authorized to conduct audits every other year to allow cities with populations of less than 3,000, based on the most recent decennial census, to conduct audits only in odd-numbered fiscal years. The bill also raises the annual audit exemption from $150,000 to $500,000. Additionally, the Department of Local Government can grant extensions of up to 18 months for submission of municipal audit reports if warranted and can consider any evidence it deems appropriate, including proof of the city’s progress toward compliance. The bill also provides clarification that cities can contract with the Auditor of Public Accounts to perform their financial audit. Lastly, the bill states that state funds and state nondiscretionary payments for the provision of city services may not be withheld due to a city’s failure to comply with statutory provisions.  

House Bill 321, another KLC initiative, revises some training requirements for planning commissioners and board of adjustment members as well as for planning professionals employed by local governments. The bill extends the time allowed for planning commission and board of adjustment members to complete their required orientation training, allowing the four hours of required training to be completed within one year of appointment rather than 120 days. At least one hour of orientation training for members and staff to focus on the impact of planning and zoning policies and procedures on housing supply and accessibility. Members must complete their required eight hours of continuing education over a four-year period instead of two, with one of those eight hours to be dedicated to housing. Staff requirements remain unchanged at 16 hours every two years, but one of those hours must be dedicated to housing. The new law also includes language to limit who is authorized to appeal a final action concerning planning and zoning to only owners of real property within the zone where the property is located. 

House Bill 398 brings Kentucky Occupational Safety and Health (OSHA) standards in line with federal standards, which will require various updates in Kentucky OSHA regulations. The law prohibits Kentucky OSHA from adopting or enforcing any standards that the Occupational Safety and Health Administration or the United States Department of Labor have not adopted. Other provisions include amendments to workplace reporting, inspection, and citation procedures (including provisions for de minimis violations) and review procedures for appeals from citations.  

While these highlight some of the key bills impacting cities, many other new laws also take effect June 27 across a broad range of policy areas. A comprehensive overview of all new laws affecting cities is available in KLC’s 2025 Legislative Update. City officials are encouraged to review the update to stay informed on changes that may affect operations, compliance, and local policy decisions.