From Congressman Scott Madon's Office
Week 3 of the 2025 Regular Session
It’s official. House Bill 1 has been signed into law, marking another step forward in delivering tax relief to hardworking Kentuckians. This measure authorizes the next half-percentage reduction in the state’s individual income tax, bringing it down from 4 percent to 3.5 percent. As a result, an estimated $718 million will remain in the hands of Kentucky families, allowing them to save, invest, and spend as they see fit. This reduction will officially take effect on Jan. 1, 2026, and continue our commitment to a responsible tax policy that benefits individuals and the state’s economy.
With this priority completing the legislative process, several other bills continued to receive favorable votes during week three of the 2025 Legislative Session. The last day to file legislation in the Senate is Tuesday, Feb. 18. The state House of Representatives’ deadline is Wednesday, Feb 19.
In the meantime, lawmakers returned to Frankfort this past week. We convened for legislative business at the historic Old State Capitol, where we approved Senate Bill (SB) 313, officially designating June as Kentucky History Month.
I passed my first bill on the Senate floor this week. SB 89 updates Kentucky’s water regulations by refining the definition of “waters of the Commonwealth” to provide greater clarity in environmental oversight. The bill ensures regulatory certainty by specifying that statutory definitions apply only to relevant sections of the law, preventing unnecessary overreach. Additionally, it establishes a clear process for calculating additional bond amounts for permits requiring long-term water treatment, ensuring responsible environmental management and financial accountability. The bill includes an emergency clause, making it effective immediately upon passage.
The following are other bills we passed in the Senate this week:
SB 18 introduces specific insurance requirements for automotive recycling dealers, distinguishes their coverage terms, and exempts dealers with certified self-insurance from the Department of Insurance. It also clarifies when dealer-provided insurance is primary or secondary in cases involving loaned vehicles.
SB 59 removes regulatory barriers to allow faith-based organizations to build affordable housing on their existing properties. It designates these projects as permitted uses in all residential and commercial zones while maintaining local oversight. To qualify, the institution must have owned the property before Jan. 1, 2025. Inspired by the 2024 Affordable Housing Task Force, this bill promotes housing development without expanding government involvement.
SB 64 strengthens protections for critical infrastructure by expanding legal safeguards to include cable, telephone, and broadband facilities. To enhance public safety and service reliability, it increases penalties for crimes like copper theft, which has caused 911 outages and power failures. The bill includes an emergency clause for immediate enactment upon final passage.
SB 73, which I co-sponsor and was proud to support, introduces new measures to combat sexual extortion, enhance victim protections, and raise public awareness through education and resource accessibility.
SB 76 updates construction contract rules by raising the escrow retainage threshold from $500,000 to $2 million to reflect modern project costs. It requires timely payments through escrow accounts and prohibits contract waivers, promoting fairness and financial stability in the industry.
SB 85 expands the authority of the Auditor’s Office and Ombudsman to improve oversight of state agencies. It clarifies roles, enhances confidentiality protections, and mandates software access to resolve data disputes. The bill also requires CHFS to provide contact information for the Ombudsman and supports reporting suspected child abuse while protecting privacy. An emergency clause ensures it takes effect immediately.
It’s a privilege to serve you in Frankfort. If you have questions or ideas, feel free to contact my office at (502)-564-8100 or email me at Scott.Madon@kylegislature.gov.