Create a new section of KRS Chapter 164 to create the physician recruitment and retention program to provide loan repayment to eligible medical students; define terms; specify the Kentucky Higher Education Assistance Authority may provide awards to eligible students; require 10 years of qualified medical service; require repayment if services are not rendered; specify that failure to meet repayment obligations may be cause for revocation of a medical license at the discretion of the Kentucky Board of Medical Licensure.

Amend KRS 338.991 to increase the civil penalties for employers who have violated any provision of KRS Chapter 338, received a citation for a violation of the requirements of KRS Chapter 338, or failed to correct a violation for which a citation has been issued; require the secretary for the Education and Labor Cabinet to annually adjust the maximum civil penalties beginning in 2026 by the percentage increase, if any, in the Consumer Price Index for all Urban Customers (CPI-U); direct the secretary to begin a 3 year phase-in for penalty adjustments beginning August 1, 2026.

Amend KRS 456.010 to define "school violence"; amend KRS 456.030 to allow a victim of school violence to file a petition for an interpersonal protective order; amend various sections of KRS Chapter 456 to conform.

Create a new section of KRS Chapter 317A to prohibit a licensee from performing services that go beyond the stratum germinativum layer unless practicing under the immediate supervision of a licensed physician; prohibit a licensee from performing any service regulated by another agency without the appropriate licensing for that service; amend various sections of KRS Chapter 317A to define "fixed salon" and "mobile salon"; change "limited beauty salon" to "limited facility" throughout; require any person who attempts to practice cosmetology or shampoo styling without being licensed to pay an administrative penalty to the board in an amount not to exceed $1,500 for each offense; authorize the board to investigate any and all unlicensed activity of services licensed under KRS Chapter 317A; prohibit a licensee from holding clinics if the clinics are not sponsored by a beauty specialty group for a service that require a license or permit under KRS Chapter 317A; require any person who applies for an esthetician license to have completed 750 hours of instruction in a licensed school within 5 years of submitting an application for licensure; establish licensing for mobile salons and limited facilities; exclude completion of 50 hours of esthetics or nail technology training within the last 2 years from licensure requirements for teaching esthetic practices or nail technology; establish license and renewal periods by administrative regulations promulgated by the board; establish a permit for natural hair braiding; exempt a person practicing natural hair brading from being required to have a salon license if working out of their home, a limited facility license if only working with other natural hair braiders, or obtaining cosmetology instruction hours beyond a sanitation course; require the board to promulgate administrative regulations to set standards for mobile salons and limited facilities; establish a code of professional conduct for persons licensed and permitted by the board; establish the inspection criteria for fixed and mobile salons; require the board to hold hearings in accordance with KRS Chapter 13B upon the request of an unlicensed party facing penalties; require schools to follow the student-teacher ratio listed in administrative regulations; allow the board to take immediate remedial measures to help a school operate according to standards if a complaint or concern has been validated through an inspection; prohibit a licensee from failing to follow sanitation standards prescribed by administrative regulations; allow the board to investigate all complaints concerning any person that is performing regulated services without a license; establish a fine of not less than $50 nor more than $1,500 per violation for any person who provides regulated services without a license.

Direct the Legislative Research Commission to establish the Charitable Gaming Modernization Task Force to study Kentucky’s charitable gaming laws and regulations and to produce information relating to improved regulatory guidance and clarity, stakeholder input, and technological processes; establish membership; require the task force to submit recommendations to the Legislative Research Commission by December 1, 2026.

Amend KRS 160.463 to make technical corrections.

Amend KRS 230.210 to define various terms; create new sections of KRS Chapter 230 to authorize the Kentucky Horse Racing and Gaming Corporation to regulate the conduct of fantasy contest operators; require the use of geolocation technology; require fantasy contest operators to implement procedures to prevent fraud, abuse, and money laundering; require notification to the corporation for a confirmed breach of a sport's governing body's internal rules and codes of conduct, conduct that corrupts any outcome, and confirmed illegal activities; establish licensing requirements for a fantasy contest operator; allow the corporation to promulgate administrative regulations to establish additional qualifications and requirements for licensing to preserve the integrity and security of fantasy contests; prohibit a license from being issued to a person that has been convicted of a felony, crime involving illegal gaming or gambling, or any crime involving theft or fraud; require a fantasy contest operator to conduct an independent audit; require a fantasy contest operator to be at least 21 years old; require the corporation to investigate all reasonable allegations of prohibited conduct; require each fantasy contest operator to include a statement regarding obtaining assistance with real-money gaming problems on the operator's website or mobile application; prohibit a fantasy contest operator from paying any price or award to a person who is on the self-exclusion list; create a new section of KRS Chapter 230 to establish the purse stabilization fund from fixed-odds wagers on horse racing taxes and fees; amend KRS 138.552 to define "fixed-odds wagering"; impose a 15% excise tax on the adjusted gross revenue of fixed-odds wagers on live horse racing; amend various sections of KRS Chapter 230 to establish the corporation's jurisdiction over fantasy contests and fixed-odds wagering; establish the Attorney General's concurrent jurisdiction with the Commonwealth's attorneys and county attorneys of this state for the enforcement of KRS Chapter 230 and 238; require the corporation to establish a process for the compilation, dissemination, and notification of the self-exclusion list; allow the corporation to authorize additional racing dates or amend racing dates; define "affiliate" and "beneficial interest"; prohibit an association or track or its affiliate from holding a license to conduct charitable gaming; require associations and tracks to accelerate the adoption of technologies, update the totalizator by April 1, 2027, and update technologies related to pari-mutuel wagering annually; require associations and tracks to disable all wagering simultaneously, but not later than the moment the starting gate is opened for commencement of a race; change the age of access to sports wagering from 18 to 21; allow a track to conduct fixed-odds wagering on horse racing; require a track or service provider to have a mandatory minimum hold of at least $2,000 per race; define "proposition bet"; prohibit sports wagering licensees and service providers from offering any proposition bets on individual players participating in collegiate sporting events; prohibit a track or association from participating in or contracting with platforms that offer events contracts through prediction markets; prohibit a track or association from contracting with a service provider that offers events contracts through a prediction market; amend various sections of KRS Chapter 238 to redefine "chairperson" and "charitable gaming facility"; define "licensed charitable gaming facility"; establish the power of the office relating to licensure issuance and renewal and imposing fines and penalties; require a background check for any person associated with an applicant if the corporation deems it necessary; change the distributor and manufacturer licensing fee from $1,000 to $5,000; change the charitable organization's licensing fee from $300 to $1,000; require an applicant to submit an application at least 60 days prior to the expiration of its existing license or its first expected date of operation; prohibit a person under the age of 21 from participating in the play of charitable gaming activities or events; increase the limit for a prize for an individual charity game ticket from $599 to $1,499; establish an affirmative defense for any prosecution for selling charitable gaming supplies to a minor if the sale was induced by the use of false identification; change the charitable gaming facility licensing fee from $2,500 to $5,000; prohibit an owner or affiliate of a licensed charitable gaming facility from soliciting licensed charitable organizations or holding a distributor license under KRS Chapter 238; allow the corporation to investigate and have free access to the office or place of business of a charitable gaming license or facility where licensed charitable gaming is offered; increase the administrative fine for a violation of KRS Chapter 238 from $1,000 to $5,000; allow a person to apply to the corporation for a stay of the ruling of the notice of violation; require a summary suspension to cease operations if there is an imminent risk to the health and safety of the public or a misappropriation of charitable gaming revenues; repeal and reenact KRS 238.538 to require a licensed charitable organization to only offer the play of electronic devices at locations authorized by the corporation and one additional location in either the same county or a county that is contiguous to the charitable organization's office location; require a charitable gaming facility to transfer its license first to one of the licensed charitable organizations it is affiliated with as of January 1, 2026, and next to any licensed charitable organization; prohibit a charitable gaming facility from transferring more than 3 licenses from locations where persons 21 years old and under are permitted to locations where only persons 21 years or older are permitted within 90 days of the effective date of this Act; establish the occurrences in which the play of charitable gaming devices shall be lost and forfeited at an additional location; amend KRS 243.500, 436.480, 525.090, 528.010, and 528.070 to exempt fantasy contests, fixed-odds wagering, and wagering on live horse races and historical horse races; amend KRS 2.015, 68.182, 91.202, 92.282, and 238.550 to conform; require the corporation to present a status report on the purse stabilization fund not later than November 30, 2027; provide that the Act may be cited as the Wagering Consumer Protection Act.

Amend KRS 525.080, relating to harrassing communications, to include sending repeated electronic communications in a manner reasonably likely to harass, annoy, alarm, torment, embarass, or offend another and include posts to social media or an internet website any material that is reasonably likely to cause emotional distress, abuse, or torment; elevate harassing communications from a Class B misdemeanor to a Class A misdemeanor.

Establish KRS Chapter 239 and create new sections to establish the Department of Psychoactive Substances; define terms; make the department responsible for the oversight, regulation, and enforcement of cannabis, kratom, and designated hemp products; grant the department jurisdiction over regulated products and regulated adult-use products, which are a type of regulated products that include lawful products with psychoactive effects meant for human consumption; set out the functions, powers, and duties of the department, including the creation of a Regulated Products Control Board; establish hemp and kratom divisions within the department and the categories for licensure; authorize the department to promulgate administrative regulations, limit numbers of licenses, and set licensing fees; establish procedures for license denial, suspension, and revocation, and other disciplinary matters; prohibit use of regulated adult-use products by anyone under 21; move control over cannabis-infused beverages and direct shippers of regulated adult-use products from the Department of Alcoholic Beverage Control to the Department of Psychoactive Substances; create the Kentucky hemp fund and the Department of Psychoactive Substances fund; establish laboratory and testing standards and procedures; exempt designated persons from prosecution or discipline, including attorneys who represent those affiliated with regulated adult-use products; amend KRS 12.020 and 12.252 to place the Department of Psychoactive Substances in the Public Protection Cabinet; amend KRS 217.039 to move regulation of hemp-derived cannabinoids and manufacturers of cannabis-infused beverages to the Department of Psychoactive Substances from the Department for Public Health; amend KRS 2.015, 138.870, 218A.010, 218B.010, 218B.015, 218B.090, 260.852, 260.858, 260.862, 260.8635, and various sections of KRS Chapters 241 to 244 to conform; require the Department of Agriculture, Department for Public Health, and Department of Alcoholic Beverage Control to transfer relevant licensee data to the Department of Psychoactive Substances; repeal KRS 243.401, 243.403, and 243.405.

Amend KRS 158.162 to define "critical incident," require investigations in emergency plans for critical incidents and state the goals of the investigations; amend KRS 158.4410 to task the state school security marshal with investigating serious physical injury or death incidents that occur on school property, at school-sanctioned events, or during interscholastic athletic events; create a new section of KRS Chapter 158 to outline the parameters of the investigation, require referral of potential criminal charges, and require necessary administrative regulations; amend KRS 72.025 to require the coroner conduct an autopsy in deaths occurring on public or nonpublic school property or during a school-sanctioned event.

Appropriate General Fund moneys from the budget reserve trust fund account in each fiscal year of the 2026-2028 fiscal biennium to various state agencies for miscellaneous projects and programs; APPROPRIATION; EMERGENCY.

Amend KRS 392.020 to provide that the dower interest in a 1/3 life estate for real estate owned during marriage shall not apply to any property acquired by a spouse by inheritance during the marriage if it is not the primary residence of the married couple.

Propose to amend Section 170 of the Constitution of Kentucky to exempt property owned by seniors who are 65 years of age or older and property owned by a former member of the United States Armed Forces, including the National Guard, who is 100% service-connected combat-related disabled and, upon his death, property owned by his or her surviving spouse; apply to property assessed on or after January 1, 2027; provide ballot language; submit to voters for ratification or rejection.

Create new sections of KRS Chapter 138 to define terms; impose a 4% state retail regulatory license fee on all alcoholic beverage and cannabis-infused beverage sales to consumers by alcoholic beverage retailers; establish procedures and duties of retailers; impose state wholesale regulatory license fees on alcoholic beverages and cannabis-infused beverages and state retail regulatory license fees on kratom, hemp-derived, and cannabinoid products; set out regulatory license fee rates, deductions for timely filing and payment, and licensee duties; amend KRS 211.285 to fund the alcohol wellness and responsibility education fund with 0.5% of the collected state retail regulatory license fees; create a new section of KRS Chapter 217 to establish Department for Public Health laboratory and testing standards and procedures; amend KRS 241.010 to define "state or national conference" and redefine "alcoholic beverages"; amend KRS 241.069 to delete outdated language; amend various sections of KRS Chapter 243 to establish state license fees for new and existing license types; limit licensee discipline to only the specific license in question; establish a souvenir package license for distillers; authorize distillers, small farm wineries, and microbreweries to allow leashed dogs on their premises; allow caterers and special temporary auction licensees at state and national conferences; modify the privileges for various licensees, including a wholesaler, Class B distiller, and special agent or solicitor; add references to the new tax structure and statutes; modify requirements for public notice of a license application; sunset existing excise, wholesale, and other taxes on July 1, 2027, as they relate to alcoholic beverages and cannabis-infused beverages; repeal and reenact KRS 243.075, relating to local regulatory license fees, to allow any moist or wet city or county to impose the fee; authorize audits of each city's or county's regulatory license fee fund by the Auditor of Public Accounts for the most recent 10 years; describe audit penalties for cities and counties that fail to substantially comply; direct cities and counties to reduce the regulatory license fee to 3% within 4 years; limit future cities and counties to a 1% regulatory license fee; amend KRS 244.080 to permanently prohibit a retail license from using a premises if the licensee sold to minors at that premises 3 or more times in 24 months; amend KRS 244.585 to establish limitations for agreements between distributors and breweries or microbreweries; amend KRS 131.250, 139.010, 243.045, 243.430, 243.790, 243.850, and 243.990 to conform; EFFECTIVE, in part, July 1, 2027; EMERGENCY.

Direct the Transportation Cabinet to designate a portion of Kentucky Route 451 in Perry County as the SSgt John "Pott" Spencer, Jr. Memorial Highway.