Kentucky legislators will reconvene tomorrow after a five-week recess leading up to part two of the 2023 session. A flurry of legislative activity and bill filings are expected as lawmakers gavel in on Tuesday, February 7, to tackle legislative priorities in the 26 remaining working days of the odd-year session.

Where we left off

In January, week one of the 2023 “short” session saw legislative movement reducing the personal income tax rate with the House’s passage of House Bill 1 and the final passage of Senate Bill 10 amending the unemployment insurance and reporting dates passed during the last regular session.

During the recess, lawmakers held committee meetings which gave them the opportunity to make final agreements on legislation before reconvening.

Key upcoming issues

Over the next few weeks, the introduction of several priority bills and key issues are expected, including :

• Tax Reform – House Bill 1, sponsored by Rep. Brandon Reed (R-Hodgenville), reduces the personal tax rate to 4.5% in 2023 and 4% in 2024. This bill is poised for a quick passage, after passing the House and having two votes in the Senate before the recess. Action to tweak the tax reforms included in House Bill 8 from the 2022 session is expected as well.
• Juvenile Justice Reforms – This has been a focus of significant activity over the recess with a bi-partisan working group created by Senate Concurrent Resolution 31 during the first week of session. Last week, the group announced some of their recommendations including addressing staffing shortages at juvenile detention centers, the need for new leadership, and the implementation of a tracking notification system within the agency.
• Education – Kentucky’s teacher shortage has been an area of focus for the General Assembly. Legislation aimed at improving teacher recruitment and retention are expected in the coming days.
• Gray machines – While no bills have been filed yet, the debate over the legality and regulation of these machines is expected to resurface during the 2023 session.
• Budget – While there is not expected to be a major rewrite of the biennial budget passed during last year’s regular session, there could be some revisions along with additional dollars allocated for natural disaster relief.

GLI’s advocacy team will be in Frankfort to advocate for the priorities of the Greater Louisville business community. To view the full list of bills we’re tracking, click here.