Create new sections of KRS Chapter 278 to establish the membership of the Public Service Commission; provide for the appointment, confirmation, and replacement of commissioners; establish the qualifications of the commissioners; provide for the election of the chair and the delegation of his or her duties; set the terms and term limits for commissioners; set qualifications for intervenors in cases before the commission; provide that in cases in which the Attorney General intervenes, he or she shall be the sole advocate for residential consumers; amend KRS 278.020 to increase the minimum voltage and length of electric transmission lines for which a certificate of public convenience and necessity is required for construction; amend KRS 278.040 to provide that the commission is an independent department of state government that is administratively attached to the Auditor of Public Accounts only for the limited functions and purposes that the commission requests; allow the commission, in its sole discretion, to conduct procurements under KRS Chapter 45A, identify and determine the compensation for categories of its professional employees, and engage hearing officers and other entities on a contractual basis; prohibit the commission from being reorganized under KRS Chapter 12; amend KRS 278.060 to prohibit the immediate family members of commissioners from having any official relationship to any utility; allow for a commissioner or an immediate family member to have a pension or a retirement savings account with utility as long as no contributions have been made to it for at least 1 year prior to the commissioner's appointment; amend KRS 278.070 to allow the officer who appointed a commissioner to remove the commissioner for cause; amend KRS 278.100 and 278.120 to allow the commission to appoint and have sole discretion in fixing the compensation of the executive director; require the executive director to be subject to confirmation by the Senate; amend KRS 278.702, 12.020, 43.015, 64.640, 160.617, and 224.10-022 to conform; repeal KRS 278.050, relating to membership of the Public Service Commission; require the Auditor of Public Accounts to make initial appointments to the commission on or before July 1, 2026, and provide for the staggering of the appointments; allow current members of the commission to serve out the remainders of their terms provided that they meet the qualification requirements of the Act; terminate the terms of current commissioners who do not meet the qualification requirements of the Act and provide for their replacement; direct the transfer of all records, files, or documents associated with functions previously performed by the Energy and Environment Cabinet to the Auditor of Public Accounts; EMERGENCY.

Amend KRS 154.12-330 to make technical corrections.

Amend KRS 141.383 and 154.61-020 to allow that any unallocated portion of the $75 million credit cap be carried forward for utilization in subsequent calendar years for high-impact motion pictures or entertainment productions; amend KRS 154.12-280 to require the Kentucky Film Office to review applications, notify applicants of additional information needed, and forward applications to the Cabinet for Economic Development and the Kentucky Film Leadership Council; amend KRS 154.12-282 to update functions and purposes of the Kentucky Film Leadership Council; amend KRS 154.61-010 to define terms and revise definitions; provide that a motion picture or entertainment production eligible for credit includes a video game, music video, or commercial; amend KRS 154.61-020 to increase the minimum amount of qualifying expenditures and qualifying payroll expenditures that must be expended by an approved company to qualify for tax incentives; require, in addition to current reports, the submission of a certified audit by an approved company within 180 days of completion of production.

Amend KRS 151B.190 to include gender-neutral language.

Create a new section of KRS Chapter 336 to define "covenant not to compete" and "covered employee"; prohibit an employer from requiring a covered employee to enter into a covenant not to compete; set forth civil remedy, damages that can be recovered, and limitations to bring claim; require that provisions to be posted by the employer; prohibit an employer from retaliating against an employee for bringing a civil action; establish application of provisions; amend KRS 336.990 to provide civil penalties.

Amend KRS 431.200, relating to the restoration of property, to make technical corrections.

Order the Public Service Commission to open a new or include in an existing administrative case by May 15, 2026, to review the fuel adjustment charge to reduce volatility in the surcharge; receive comments from the public and affected parties on the fuel adjustment charge; and issue an order and amend the administrative regulation on the fuel adjustment charge by August 15, 2026; provide a report to the Legislative Research Commission by December 15, 2026; EMERGENCY.

Amend KRS 205.2003 to require the cabinet to develop and implement a Supplemental Nutrition Assistance Program, also known as SNAP, Employment and Training state plan amendment to promote specified improved employment outcomes and workforce participation related to healthy workforce habits through public-private partnerships.

Declare May 2026 to be Mental Health Month in Kentucky.

Amend KRS 15.808 to allow the Attorney General to pass through child support payments up to $200 per month to recipients of public assistance; require that the payments are not considered income for the purpose of determining public assistance eligibility or the recipient monthly benefit amount.

Amend KRS 304.17A-257 to require health benefit plans to provide coverage for colorectal cancer examinations and laboratory tests specified in the most recent version of a Centers for Medicare and Medicaid Services national coverage determination or nationally recognized clinical practice guidelines or recommendations; direct that coverage requirements for colorectal cancer examinations and laboratory tests applies to health benefit plans issued or renewed on or after the effective date of the Act; require the Cabinet for Health and Family Services or the Department for Medicaid Services to obtain federal approval, if necessary; provide authorization from the General Assembly to make changes in the Medicaid program as required under KRS 205.5372(1); EMERGENCY.

Amend KRS 241.140 to make technical corrections.

Amend KRS 164.2807 to provide for the administrative attachment of the Energy Planning and Inventory Commission (EPIC) to the University of Kentucky Center for Applied Energy Research, and the independent functions of EPIC; require EPIC to maintain separate accounts for all funds appropriated to it; provide the executive director of EPIC with the sole authority to hire staff and retain contractors; allow the commission in its sole discretion to set compensation for its professional employees; allow the commission to conduct its own procurements and perform its own bidding and negotiations under KRS Chapter 45A; limit the membership of the EPIC board to no more than 2 members who reside outside of the Commonwealth; amend the membership of the EPIC executive committee to consist of the EPIC commission board chair, the vice chair, 2 appointees made by the Attorney General, and 1 appointee elected by the membership of the board; require, instead of allow, EPIC to employ an executive director; allow the executive director to have the full authority to act on behalf of EPIC in all matters, with the advice of the commission; specify the termination and compensation adjustment procedures for the executive director; provide that all information, records, and data submitted by utilities and produced by EPIC members and staff shall be confidential and exempt from disclosure under KRS 61.870 to 61.884; establish the Energy Planning and Inventory Commission fund and specify the purposes of the fund; make conforming changes; require the Attorney General to make appointments to the EPIC executive committee on or before August 1, 2026, and terminate the terms of the current appointees for those positions on the effective date of the Act; EMERGENCY.

Amend KRS 160.463 to make technical corrections.

Create a new section of KRS Chapter 342 to establish the Department of Workers' Claims to be administratively attached to the Office of the Governor; amend KRS 342.122 to provide that the combined budgets of the Occupational Safety and Health Review Commission, Workers' Compensation Nominating Committee, Department of Workplace Standards, and the proportional support for general administration and approved indirect cost allocation to the Education and Labor Cabinet, shall not exceed 75% of the total combined budget submitted by the Workers’ Compensation Funding Commission and that the Workers’ Compensation Funding Commission, the Department of Workers’ Claims, the Occupational Safety and Health Review Commission, the Workers’ Compensation Nominating Committee, the Department of Workplace Standards, excluding the Division of Wages and Hours contained within the Department of Workplace Standards, and the Education and Labor Cabinet, shall each submit a budget which shall be combined by the Workers’ Compensation Funding Commission and reflected in the enacted budget of the Commonwealth; amend KRS 342.228 to require the commissioner of the Department of Workers' Claims to have specified knowledge and experience in the areas of public administration, administrative law, and workers' compensation by having a minimum of 8 years of legal practice experience in the area of workers' compensation; amend KRS 342.230 to authorize the commissioner to fill all positions in the Department for Workers' Claims with KRS Chapter 18A employees; amend KRS 151B.015 to remove the Department of Workers' Claims from the Education and Labor Cabinet; amend various other sections to conform; provide that all records, equipment, staff, budgets, and unexpended funds associated with the Department of Workers' Claims shall be transferred as part of the reorganization; provide that all administrative regulations, decisions, and actions of the department that have not been repealed or rescinded shall continue in effect after the effective date of the Act, unless and until they are amended, repealed, or rescinded by the department after the effective date of this Act; EMERGENCY.