The Kentucky Bankers Association 600 W. Main St. Suite 400 Louisville, KY 40202
I want to personally thank you and everyone at Republic Bank & Trust for your continued membership in the Kentucky Bankers Association and, just as importantly, for your involvement and support of our Association. As I begin my role as President & CEO, one of my priorities is to strengthen the relationships we have with our member banks and ensure that KBA continues to be an organization that you value and are proud to be a part of. I want to hear from you about your challenges, opportunities and how we can serve you. We appreciate your commitment—not only to KBA, but also to the banking industry and the communities you serve throughout Kentucky. KBA is only as strong as the banks and bankers who choose to be actively engaged in our work. Whether through attending our programs and events, serving on committees, participating in advocacy efforts, or simply sharing your ideas and perspective, your involvement makes a meaningful difference. Thank you for your membership, your partnership, and your confidence in the Kentucky Bankers Association. I look forward to working with you and continuing to build an even stronger Association together. With sincere appreciation,
Timothy A. Schenk President & CEO Kentucky Bankers Association
KBA LEADERSHIP
Tim Schenk
Alex Croft
Matt Vance CFO
Selina O. Parris Director of Membership
Matt Simpson
Jessie Southworth
Chuck Maggard President & CEO KBA Insurance Solutions
Billie Wade Executive Director, HOPE of the Midwest
President & CEO
Director of Communications
General Counsel
Director of Education
FEDERAL ISSUES
1033 Data Aggregation ISSUE BACKGROUND The CFPB finalized a rule implementing 1033 during the latter days of the Biden-Harris Administration. It was immediately challenged in a lawsuit filed by a community bank, the Kentucky Bankers Association, and the Bank Policy Institute. A trade association representing fintechs and data aggregators, the Financial Technology Association, successfully intervened in May 2025. In July 2025, a new coalition of fintechs, retailers, and crypto emerged with an interest in preserving the current rule’s fee prohibition and payment initiation feature (which will scale adoption of the pay-by-bank use case). The CFPB intends to issue an Advanced Notice of Proposed Rulemaking (ANPR) as a starting point, which will likely solicit feedback on the current version of the rule to determine areas of potential improvement. Please refer to the codified version of the regulation at 12 CFR Part 1033. A central question going forward will be the scope of the rule and whether it primarily focuses on consumers themselves or the broader network of third-party companies seeking access to their information. Other aspects of the rule that will likely take center stage are: the ability for data providers to charge third parties fees to access the developer interface, whether to include payment initiation, ability to deny sharing requests due to risk management concerns, limitations on secondary use of consumer personal information, liability for data breaches and unauthorized activity, the role of industry standard setters, and the permissibility of screen scraping.
WHY IT MATTERS Banks support their customers’ ability to access and share their financial data in a secure, transparent manner that gives the customer control. Screen scraping is a dangerous practice that leaves consumers’ credentials and account information subject to security risks and fraud, and it is important that the industry adopt more secure data sharing methods. The market was solving for these factors; however, the CFPB’s flawed former 1033 rule puts consumer data at greater risk while imposing significant costs on banks.
RECOMMENDED ACTION ITEMS a. Allow data providers to charge third parties fees to access the developer interface with one secure uniform system for data sharing rather than a patchwork of operating systems created by a multitude of outside organizations. Community banks should not bear the costs of establishing and maintaining developer portals or for vetting the security protocols of potentially thousands of companies seeking to access their customers’ data. b. Liability for data breaches and unauthorized activity. Nonbank aggregators that access customer information and store bank login credentials may not take the same care in protecting consumer privacy and data that banks do, thus putting consumer data at serious risk.
1071 Small Business Data Reporting BACKGROUND On March 30, 2023, the Consumer Financial Protection Bureau (CFPB) issued a final rule to implement section 1071 of the Dodd Frank Act. Section 1071 is an amendment to the Equal Credit Opportunity Act, which requires lenders to collect, and report to the CFPB, information about lending to “women owned, minority-owned and small businesses.” The CFPB expanded the 13 data points Congress mandated, requiring lenders to report a total of 81 data points. The data points include the race, gender, and ethnicity of the business's principal owners, and whether the business is owned by minorities, women, and/or LGBTQI+ individuals. The rule is being challenged in numerous federal courts, including Kentucky. The CFPB has indicated it is rewriting the rule but has not vacated the current rule.
WHY IT MATTERS Section 1071 is Washington overreach. Collecting 81 pieces of data on every small business loan, including sensitive demographic details, is a privacy invasion for our small business owners and farmers, and a massive compliance burden for community banks. Non-banks face far less scrutiny. While section 1071 applies to non-banks and banks alike, banks will be regularly examined for compliance and data accuracy and non-banks are not subject to Bureau examination for compliance with 1071. The costs associated with the 1071 data collection may discourage bank lending to small businesses, particularly by community and mid-size banks. Finally, the CFPB will make the 1071 data public at the loan level, creating severe risks to privacy of small businesses.
RECOMMENDED ACTION ITEMS FOR CONGRESS 1. Provide for a Consumer Opt Out. Consumers should not have to report their personal information that have nothing to do with a loan request. Issues such as race, sex, gender and sexual preference do not impact credit quality. Consumers should have their first amendment and statutory right to opt out of providing such information. 2. Express support for S. 557 and H.R. 976, which would repeal 1071 altogether, permanently removing lenders’ obligation to collect and report small business lending data to the CFPB. 3. Also express support for bills to reduce the burden of 1071, including the Small Lender Act, which would exempt lenders originating fewer than 2,500 small-business loans in each of the preceding two calendar years or lenders with assets of less than $10 billion. It would also limit the rule’s application to small businesses with gross annual revenues of under $1 million.
BSA/AML Reform BACKGROUND The Anti-Money Laundering Act of 2020 (AMLA) was the first comprehensive overhaul of Bank Secrecy Act (BSA) laws in over two decades, but these reforms have mostly not been implemented. Treasury Secretary Bessent recently voiced support for true risk-based BSA rule reform — expressly allocating resources to higher-risk areas and away from lower-risk areas — which would allow banks to focus on real threats, including the $158.3 billion Americans may lose annually to fraud, and the trillion-dollar fentanyl crisis.
WHY IT MATTERS & RECOMMENDATIONS — BSA Program Rule Reform. True BSA program rule reform would explicitly allow banks to reallocate compliance resources away from low-risk areas and direct them to high-risk areas to focus on real threats and eliminate unnecessary paperwork. — Customer Due Diligence (CDD) Rule Reform. Banks open between 140-160 million new accounts each year, rather than one account per company, so the CDD rule, which requires the collection of ownership information each time a new account is opened (even by existing customers), places an enormous burden on banks. Instead, CDD information should be collected on a “per customer” basis and updated on the basis of risk. — Beneficial Ownership Reform. Although FinCEN recently exempted 33 million U.S. small businesses from beneficial ownership reporting requirements by amending its beneficial ownership reporting rule (limiting it to 12,000 foreign businesses), FinCEN needs to make the reporting rule changes to complete this reform. — Reports Required Under the BSA. Cash is still king and innocent cash transactions should not require reporting. Over 20 million Currency Transaction Reports (CTRs) —1 for every 16 Americans— are filed annually, five times more than reports of suspicious activity (SARs). Over a third of banks’ SARs are structuring SARs, diverting banks’ resources away from investigating real threats. Instead of requiring reporting on law-abiding customers, FinCEN should limit CTRs and focus on suspicious activity. Likewise, state-licensed cannabis businesses should not require SAR reporting. — Indexing. For decades, many regulatory thresholds have stayed fixed in nominal terms, even as the economy has grown. These thresholds were typically set during very different economic conditions and have not been updated to reflect changes in the banking sector. As a result, thresholds that once reflected meaningful levels for anti-money laundering efforts are no longer relevant. Indexing is a low-cost, high-impact reform.
Protect Community Development Financial Institutions ISSUE BACKGROUND Community Development Financial Institutions (CDFIs) play an important role in supporting economic development in rural, tribal and other underserved communities. They enhance the viability of community development projects, especially in rural areas, by offering flexible financing tools such as longer loan terms and interest-only repayment periods. Since its inception over 30 years ago, the CDFI Fund has awarded more than $7.4 billion to CDFIs, community development organizations, and financial institutions through its funding programs, allocated $76 billion in tax credits through the New Markets Tax Credit Program (NMTC), and guaranteed nearly $2.5 billion in bonds through the CDFI Bond Guarantee Program. It is unclear how these programs will continue to operate if the CDFI Fund’s obligations cease to function. President Trump’s first Administration worked with Congress to make historic investments into the CDFI community. The President’s signature legislation, the One Big Beautiful Bill Act (OBBBA), made the NMTC permanent at $5 billion in annual allocation authority. Over the duration of the tax credit, NMTC has created over one million jobs, disproportionately in rural America. Most recently, the Senate-passed Fiscal Year 2026 National Defense Authorization Act includes language to improve transparency at the Fund and establish a secondary market to enable CDFIs to get more capital to small businesses. The Trump Administration has indicated it will lay off CDFI staff in December and abolish the CDFI Fund within the Treasury Department.
WHY IT MATTERS The CDFIs and developers who rely on a functioning CDFI Fund are essential to expanding our nation’s housing supply. Not only are CDFIs key drivers of development and preservation of affordable housing, but the Capital Magnet Fund (CMF) is a tool used by the CDFI Fund to scale housing investments to build new housing and bring down housing costs. CMF dollars often pair with the Low-Income Housing Tax Credit (LIHTC), which the OBBBA permanently expanded and strengthened. Stable delivery of CMF dollars will help LIHTC meet its full potential in addressing our nation’s housing shortage and improving housing affordability for everyday Americans. According to a Kentucky Housing Corporation study, Kentucky is short at least 200,000 homes and rentals for Kentuckians. Closing the CDFI fund will only exacerbate Kentucky’s housing crisis.
RECOMMENDED ACTION ITEMS Express support for CDFIs and urge the Trump Administration to continue CDFI funding and maintain its CDFI staff within the Treasury Department.
Protect Americans’ Payment Cards The Credit Card Competition Act would impose government mandates on the credit market, reducing the security of credit card transactions, limiting community bank card offerings and eliminating important consumer benefits like credit card rewards programs.
RECOMMENDED ACTION ITEMS — Oppose the Credit Card Competition Act (CCCA) and prevent a massive wealth transfer from community financial institutions and their customers to large retailers.
Credit Unions ISSUE UPDATE More than 90 years ago, Congress enacted the Federal Credit Union Act, giving credit unions a mission to provide basic consumer financial services to those of modest means connected through some common bond within a well-defined community, such as employees of a company or parishioners. The credit union industry has evolved dramatically over the past few decades, with America’s entire population now eligible for membership. The expansion of the common bond and field of membership – largely a result of the Credit Union Membership Access Act of 1998 and subsequent actions taken by the National Credit Union Administration (NCUA) – have pushed credit unions away from their mission and eliminated the justification for their preferential tax and regulatory treatment.
WHY IT MATTERS Justifying Tax Subsidy. The $2.3 trillion credit union industry receives a $32.2 billion tax subsidy to provide basic consumer financial services to under-resourced groups and communities. However, unlike most taxexempt non-profits, tax-exempt credit unions have no community benefit reporting requirements and do not file IRS Form 990. With few reporting and disclosure requirements, credit unions have little accountability as it relates to their use of taxpayer resources. Serving LMI Communities. Community Reinvestment Act (CRA) requirements have historically not applied to credit unions. Although NCUA-approved field of membership expansions have since granted credit unions access to the entire country, the CRA exemption remains. This incongruity deprives low- and moderate-income communities of investment and access. Credit Unions are Acquiring Tax-Paying Banks at an Alarming Rate. These purchases have a wide spectrum impact across the financial system and for consumers. In 2024 alone, credit unions announced 22 bank purchases (19 that have not now been terminated), more than in any previous year on record. Through August 2025, credit unions have already announced eight more deals to acquire banks. The revenue and profits from the credit union going forward are no longer taxed. Not only are consumers losing, so are local schools, hospitals, fire fighters, police, etc.
RECOMMENDED ACTION ITEMS — Hold a Hearing on the Credit Union Industry and Modify its Tax Exemption. Congress last convened a hearing on credit unions in 2005; oversight is necessary to determine whether 21st-century credit union industry activities, like acquiring banks, align with its tax treatment. Congress should eliminate the credit union income tax exemption for institutions larger than $1 billion. All credit unions should be required to file a 990 with the IRS. — Require Metrics Around Credit Union Service to LMI Communities. Congress should scrutinize whether credit unions are meeting their statutory objective of serving low- and moderate-income communities in a robust, demonstrable way.
Deposit Insurance Reform FDIC insurance protects customers’ deposits across America’s safe and sound banking system, which is well capitalized and highly liquid. While the FDIC has evaluated options to reform the deposit insurance system, any major changes will require congressional approval. — Crises come without warning. Between an unstable global landscape and the perpetual potential for natural or manmade disasters, Congress must act now to protect the entire banking ecosystem. — As a first step, we propose that Congress immediately amend the Federal Deposit Insurance Act to institute a Transaction Guarantee (TAG) program that enables the Secretary of the Treasury to invoke emergency authority whenever there is a high likelihood of widespread bank runs due to severe financial conditions. — The emergency TAG program we propose would provide unlimited deposit insurance on transaction accounts for a temporary period of 120 days. This 120-day period of full coverage will allow time for the precipitating circumstances to settle, providing a calming effect.
Fraud ISSUE BACKGROUND The bank industry faces many challenges with no challenge being larger than fraud. Bankers throughout the country consistently cite fraud as their largest concern and challenge for their institutions and their customers. Whether it is the 271% increase in losses reported for noncard payments according to the Federal Trade Commission (FTC), the unknown number of checks that are stolen daily, or rampant scams, fraud is damaging too many consumers and businesses daily. The 2024 FBI/IC3 report documented $16.6 Billion in consumer losses. The 2024 FTC report documented $12.5 Billion. A 2024 FTC study estimating the overall cost of fraud revealed we have between $23-$158 Billion in unreported fraud losses. The 2024 Federal Reserve of Household Economics and DecisionMaking Survey revealed that survey participants reported non-card fraud losses estimated at $63 Billion. The Federal Reserve System, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency are all aware of Section 314(b) of the Patriot Act which “permits financial institutions, upon providing notice to the United States Department of the Treasury, to share information with one another in order to identify and report to the federal government activities that may involve money laundering or terrorist activity.” Banks often avoid using 314(b) due to confusion about what data is protected under the safe harbor, especially with regard to fraud data, thus only about 3,626 of the roughly 9,148 eligible banks and credit unions nationwide participate in Section 314(b) data-sharing.
RECOMMENDED ACTION ITEMS 1. Clarify 314(b) Safe Harbor Protections. Regulators should issue clear, specific guidance on what types of fraud-related data can be shared under 314(b), helping banks understand their legal boundaries and boosting their willingness to share. 2. Assist in Educating Consumers. Too many consumers ignore or disregard the training and alerts that banks, private associations and government agencies provide. Many banks have proactive messaging built into their online and mobile banking sites warning about specific scams; however, consumers ignore them and proceed to fall victim. True fraud education must include all industries including, but not limited to, internet search providers, retail websites, dating apps, social media apps, telecommunications and financial services. 3. All stakeholders must bear some accountability, including consumers. Regulation E and other regulations that govern transactions place tremendous burdens on financial institutions with consumers bearing no concern of reprisal in situations that can sometimes be prevented. For example, a consumer could provide a family member with access to their debit card but a transaction could still be unauthorized because express permission was not granted for an express transaction. One could argue such action is negligence by the consumer. However, Regulation E could shift liability to the bank for those “unauthorized transactions”. If fraud is going to be reduced, there must be some reconsideration of current regulations that essentially absolve consumers of all responsibility.
Indexing Thresholds BACKGROUND For decades, many regulatory thresholds have stayed fixed in nominal terms, even as the economy has grown. These thresholds were typically set during very different economic conditions and have not been updated to reflect changes in the banking sector. As a result, thresholds that once reflected meaningful distinctions in size, complexity, or risk now capture institutions that were never intended to be subject to more burdensome regulatory requirements. For example, heightened audit requirements established by the FDIC kick in when a bank’s assets reach $500 million. When this threshold was set in 1993, the more stringent requirements applied to only 7 percent of banks. Today, it applies to 41 percent. Dozens of thresholds, from stress testing to resolution planning, have drifted the same way.
WHY IT MATTERS This regulatory “drift” creates three problems: — Burdens institutions never meant to be captured. Over time, economic growth and inflation erode the real value of thresholds, pulling more institutions into regulatory regimes that were never intended to apply to them. Banks with limited complexity or risk profiles may be forced to shoulder costs and reporting burdens designed for much larger entities. — Discourages organic growth. Institutions manage their balance sheets defensively to avoid crossing arbitrary thresholds. In some cases, this distortion discourages organic growth and instead encourages consolidation as the only viable means to absorb new regulatory burdens. — Dilutes regulatory resources. An expanding pool of covered banks beyond the intended scope dilutes regulatory efforts and the ability of agencies to focus on the largest sources of risk. These outcomes run counter to the policy objectives Congress and regulators have set.
RECOMMENDED ACTION ITEMS The solution is indexing. After a one-time adjustment to correct for past inaction, asset-based thresholds should be linked to nominal GDP, which reflects the size of the economy and the scale of the banking sector. Indexing is a low-cost, high-impact reform. It improves transparency, reduces arbitrary burdens, and allows regulators to focus on where the risk really is.
OCC Nonbank Charters BACKGROUND During the years of 2016–2020, as fintech and crypto firms emerged, interest grew in using the national trust bank charter as a way to come under federal supervision without taking deposits. In 2020 (Acting Comptroller Brian Brooks) the OCC issued guidance affirming that national banks and federal savings associations could provide custody services for cryptocurrency, and that the OCC could charter special purpose national banks (SPNBs), including national trust banks, to engage in these activities. In 2021–2023, under Acting Comptroller Michael Hsu, the OCC slowed or paused approvals for new fintech/crypto trust charters, citing concerns about safety, soundness, and transparency. Now, in 2025, multiple digital asset issuers (Circle, Paxos, Ripple, Fidelity Digital Assets) are applying for national trust bank charters to manage stablecoin reserves, custody digital assets, and operate under federal regulation without becoming full-service commercial banks.
WHY IT MATTERS Based on the limited information included in the public portions of the current Applications, there are significant policy and legal questions as to whether the Applicants’ proposed business plans involve the types of fiduciary activities performed by national trust banks. Granting these Applications could represent a fundamental departure from existing OCC precedent. With a lack of public information or public input, the OCC’s approval of the Applications would raise significant policy and process concerns.
RECOMMENDED ACTION ITEMS — The OCC should postpone consideration of the Applications. The delay should continue until such time as the OCC has released enough information concerning the Applicants’ intended business plans, as well as other aspects of the applications, to inform the public’s review and interested stakeholder comment, consistent with the historical transparency of the OCC’s charter application review process. Proposals based on novel interpretations of the law demand increased transparency and public scrutiny. — Broader Change to OCC Policy With Respect to Trust Activities should Require Public Scrutiny. National trust banks have historically been permitted to engage solely in activities authorized under 12 U.S.C. § 92a. Banking powers reserved for national banks under 12 U.S.C. § 24(Seventh) should not be exercised by trust companies chartered pursuant to 12 U.S.C. § 27(a), unless such powers are also authorized under 12 U.S.C. § 92a or relate to the exercise of powers authorized under that section. Otherwise, 12 U.S.C. § 27(a) would be a loophole available for companies seeking to take advantage of the benefits of a national bank charter without the attendant regulatory oversight generally applicable to national banks, including under the Bank Holding Company Act, absent a written agreement with the OCC.
S TAT E S E S S I O N
State Session in Summary This year there were 1293 bills filed, and 196 bills passed; a thirty-six- and one-half percent (36.5%) increase in bills enacted from 2025 and a four and seven tenths percent (4.7%) decrease in bills enacted from 2024. There were thirty-eight bills (38) vetoed by Governor Beshear and thirty-six vetoes (36) were overridden by the Kentucky General Assembly prior to the session’s conclusion. One hundred and fourteen measures (114) were signed into law by Governor Beshear, and eighteen bills (18) became law without Governor Beshear’s signature. There is interesting statistical information after the bill summaries to show how the Session ended, by the numbers. Bills that impact the banking industry are summarized below. If a bill contains more than one subject, only the portion that impacts banks is summarized. Each bill, unless it contains an emergency clause, will go into effect July 15, 2026. If you need more information on any of these bills, please contact Timothy Schenk at tschenk@kybanks.com.
Bills Impacting the Banking Industry 1. HB144 – Motor Vehicle Titles. Amends KRS 186A.295 to exclude the costs of repair and labor required for the surrender of title for a motor vehicle or trailer. If cosmetic repairs are not made, it is subject to a salvage title. Insurers must still pay for the full cost of repair. 2. HB176 – Prior Authorization. Allows more provider exemptions for prior authorization to increase efficiencies within the healthcare system. 3. HB184 – HSA Plans. Creates a new section of KRS Chapter 304 to ensure HSA plans have a safe harbor for federal compliance in cost-sharing. 4. HB264 – Real Estate Fraud. Provides a presumption of theft by deception when a person lists or advertises property for sale without legal title or authority. 5. HB333 – Religious Housing. Creates a new section of KRS Chapter 100 to make affordance housing developed by a religious developer a permitted use and not subject to permitting. The development must be 24 units or less and must be used entirely for affordable housing. 6. HB355 – Property Appraisers. Creates a new section of KRS 324A requiring civil actions to be brought against appraisers within one year from the date of the appraisal. Removes current real estate appraisal board and establishes a new board. Requires thirty-eight (38) hours of continuing education for appraisers. Preserves current bank conducted real estate evaluations. 7. HB456 – Unclaimed Property. Amends KRS 393A for those filing reports without the necessary information to be subject to civil penalties.
BILLS IMPACTING THE BANKING INDUSTRY (CONTINUED) 8. HB500 – Executive Branch Budget. Provides the Executive Branch budget for the upcoming Fiscal 2026-2028 biennium, appropriating $31.1 Billion in General Fund dollars. 9. HB518 Collection of Local Business Tax. Amends KRS Chapter 67 to require the Secretary of State to prescribe standard forms for net profits, gross receipts and payroll occupational tax returns. Allows local tax districts to opt out. 10. HB566 – Judicial Sales. Allows Master Commissioners optionality to sell property at the best site of sale, clarifies language for what is required in the source of title, requires deeds to be filed within thirty (30) days of receipt of the deed and clarifies sales of real property shall not exceed ten percent (10%) of the sales price. 11. HB600 – Collection of Delinquent Tax Bills. Allows counties to collect delinquent tax bills, requires that actual attorney fees of up to $2,000 be warranted based on documented work and customary rates for similar work, requires more disclosures by third party tax purchasers and public notice of sale of property on tax foreclosures.
BILLS IMPACTING THE BANKING INDUSTRY (CONTINUED) 12. HB757 – Revenue Bill. Kentucky’s revenue bill. Creates new sales tax on fantasy sports contests, the sale of products by data brokering services defined as “the act of collecting, aggregating, and analyzing personal data for sale to a third party while possession of the personal data is maintained by the person providing the data brokering services or by the third party, wherever located, regardless of whether the charge for the services provided is on a ‘per use, per user, per license, subscription, or some other basis’”, amongst other things. Addresses rounding with shortage of the penny by requiring amounts ending in .01 or .02 dollars be rounded down and amounts ending in .03 or .04 dollars be rounded up in cash transactions when pennies are not available. Cash transactions ending in .06 or .07 dollars must be rounded to 5 cents and cash transactions ending in .08 or .09 dollars must be rounded to ten cents when pennies are not available. The bill removes Tax Increment Financing (TIF) districts that are not already in existence. The bill removes research and development tax credits. The bill makes historical tax credits available to all entities. The bill bans kratom. The bill prevents school district boards from issuing new occupational or personal property taxes. The bill directs LRC to conduct a study on the taxation structure of banks and credits unions. The bill allows placement of a statute or artwork of Mitch McConnell in the Capitol.
BILLS IMPACTING THE BANKING INDUSTRY (CONTINUED) 13. HB900 – Appropriations Bill. Appropriates $1.77 Billion in funding for one-time, non-recurring allocations from the Budget Reserve Trust Fund, also known as the “Rainy Day” fund. The funding invests in more than 300 statewide and regional projects across Kentucky, including significant funding for road projects, downtown Louisville revitalization, mega-development projects, riverport and water utility improvements, general aviation airport grants, an endowed research fund, a school of innovation pilot project, and a Parkinson’s Disease research registry. 14. SB50 – Omnibus Trust Bill. Omnibus trust bill that amends the Electronic Signatures in Global and National Commerce Act as it pertains to trusts and adopts the Uniform Electronic Wills Act, Uniform Directed Trust Act, Uniform Trust Decanting Act and Uniform Electronic Estate Planning Act. The bill also provides for “asset protection trusts”. 15. SB110 – Electronic Motor Vehicle Lien Titling. Beginning January 1, 2027, lienholders and motor vehicle dealers must use the electronic title application and registration system to submit title, registration, and lien documents. Titles will not automatically be printed and mailed to the vehicle owner but kept electronically in the automated vehicle information system. Establishes procedures for those wanting a printed title. There are technical corrections to include manufactured housing. There are provisions adopted in statute in the event the system is not operational by January 1, 2027. 16. SB153 – Disaster Repair Fraud. Designed to reduce disaster fraud, the bill prohibits cancellation fees in repair contracts and prohibits certain “door-to-door activities”. Places new restrictions on contracts in disaster areas including proof of licensure, soliciting business and disclosures.
BILLS IMPACTING THE BANKING INDUSTRY (CONTINUED) 17. SB157 – Income Limits on Loan Secured by a Mortgage. Adopts technical corrections for state law to comport with federal law. 18. SB158 – Financial Protection Products. Creates a framework for regulation of new vehicle protection products related to the debt versus the actual value of the vehicle. This bill expressly excludes VSI insurance. 19. SB183 – Proxy Advisors. Creates a new section of KRS Chapter 367 that requires proxy advisors to disclose when they are considering factors other than the financial interests of their fiduciary. 20. SB189 – Crypto Kiosks. Creates a framework for the regulation of crypto kiosks. Requires license and registration with the state, creates disclosures on the kiosk for the user for consumer protection, requires bonding, a $2,000 per day or $10,500 aggregate limit for new users and a seventy-two (72) hour rescission period.
The Final Count HANNAH NEWS SERVICE – KLS REPORTS · 2026 REGUL AR SESSION Total of 202 Bills & CRs/JRs Enacted during the 2026 Regular Session - 2026 RS All Enacted Bills Report 192 Bills (99.5% of Enrolled Bills & 14% of Filed Bills) 10 CRs/JRs (90.9% of Enrolled CRs/JRs & 8.8% of Filed CRs/JRs) — 138 Bills Signed by Governor (71.9% of Enacted Bills) - 2026 RS Signed by Governor Report — 89 HBs / 49 SBs — 35 Bills Enacted Over Governor’s Veto* (18.2% of Enacted Bills) - 2026 RS Enacted Over Veto Report — 23 HBs / 12 SBs — 18 Bills Became Law Without Governor’s Signature (9.4% of Enacted Bills) - 2026 RS Enacted Without Signature Report — 8 HBs / 10 SBs — 1 Constitutional Amendment Delivered to Secretary of State (0.5% of Enacted Bills) - 2026 RS Constitutional Amendment Report
— 6 Joint Resolutions Signed by Governor (60.0% of Enacted Resolutions) — 3 HJRs / 3 SJRs — 2 Concurrent Resolutions Signed by Governor (20.0% of Enacted Resolutions) — 2 SCR — 1 Joint Resolution Enacted Over Governor’s Veto (10.0% of Enacted Resolutions) — 1 HJR — 1 Joint Resolution Became Law Without Governor’s Signature (10.0% of Enacted Resolutions) — 1 HJR
— 1 SB
TOTAL OF 120 HOUSE BILLS ENACTED
TOTAL OF 72 SENATE BILLS ENACTED
— 9.3% of Filed Bills
— 5.6% of Filed Bills
— 12.8% of HBs
— 20.3% of SBs
— 62.1% of All Enrolled Bills
— 37.3% of All Enrolled Bills
— 62.5% of All Enacted Bills
— 37.5% of All Enacted Bills
— 100.0% of Enrolled HBs
— 98.6% of Enrolled SBs
TOTAL OF 5 HOUSE RESOLUTIONS ENACTED
TOTAL OF 5 SENATE RESOLUTIONS ENACTED
— 4.4% of Filed CRs/JRs
— 4.4% of Filed CRs/JRs
— 6.8% of HCRs/HJRs
— 12.8% of SCRs/SJRs
— 45.5% of Enrolled CRs/JRs
— 45.5% of Enrolled CRs/JRs
— 50.0% of Enacted CRs/JRs
— 50.0% of Enacted CRs/JRs
— 100.0% of Enrolled HCRs/HJRs
— 83.3% of Enrolled SCRs/SJRs
* Bills Enacted with Line Item Vetoes are counted under both the Enacted and Vetoed sections of this report **Only 50 out of 60 Legislative Days were used during the 2020 Regular Session