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Bill Summary · SB 225

Summary of SB 225 (2026RS) — Kentucky

Purpose and Intent

SB 225 proposes to regulate residential construction through the creation and empowerment of the Kentucky Department of Housing, Buildings and Construction within the Public Protection Cabinet. The bill sets out the department’s structure, oversight responsibilities, funding mechanisms, and procedures for adopting administrative regulations related to building standards, codes, and related programs. It emphasizes cooperation with federal, state, and local entities and introduces a formal process for committee review of proposed administrative regulations affecting the building trades.

Key Provisions and Changes

  • Department Creation and Leadership

    • Establishes the Kentucky Department of Housing, Buildings and Construction.
    • A commissioner, appointed by the Governor, would lead the department and oversee its activities.

  • Staffing and Conflict of Interest

    • The commissioner may hire staff as needed.
    • Neither the commissioner nor any staff member may be employed in any aspect of the regulated building industry while serving in the department.

  • Administrative Regulation Process and Committee Review

    • The department is responsible for budgeting, procurement, and administrative tasks for statewide regulation, enforcement of building standards, codes, and inspection standards.
    • Before promulgating an administrative regulation, the department must offer the relevant standing committee an opportunity to provide written comments.
    • If the committee provides comments, those must be attached to public submissions or filings (including under KRS Chapter 13A).
    • The committee has a maximum of 30 days to submit comments, unless the regulation is an emergency rule.
    • If the committee does not meet on a schedule that allows timely review, the department must arrange a meeting; if the committee fails to comment within the window, the department may proceed.

  • Intergovernmental and Federal Cooperation; Grants

    • The department may enter agreements with federal agencies, other state agencies, local governments, and private or nonprofit organizations to achieve its purposes.
    • The commissioner must cooperate with federal agencies, counties, cities, housing authorities, nonprofits, and area development districts to qualify for and receive grants and aid.
    • The department can take necessary steps to meet grant conditions and execute agreements.

  • Funding and Trust Fund

    • The department can receive grants, aid, and gifts from federal and other sources for programs under the chapter, including administration costs.
    • Funds must be deposited into a state trust and agency fund and may not revert to the general fund.

  • Cost-Benefit and Market Impact Analysis

    • For proposed new or amended administrative regulations, the department must conduct:
    • A cost-benefit analysis, including anticipated compliance costs for residential builders and public safety/quality-of-life benefits.
    • An assessment of potential changes in the volume of residential construction in Kentucky.
    • These analyses must be completed before submitting the regulation to the committee and attached when the regulation is filed with the Legislative Research Commission.

  • Precedence Over Conflicting Statutes

    • If another statute conflicts with these provisions, SB 225’s requirements take precedence for the department’s regulatory authority.

Who and What Is Affected

  • Who is Affected

    • Builders, contractors, inspectors, and other professionals involved in residential construction in Kentucky.
    • Local governments, housing authorities, area development districts, and related non-profit and for-profit organizations engaged in housing and construction activities.
    • State agencies and the public that interacts with building codes and residential construction regulations.

  • What Is Affected

    • Administrative regulations governing residential construction, building codes, inspection standards, and related programs.
    • The process by which such regulations are proposed, reviewed, and adopted, including required cost-benefit and market impact analyses.
    • The governance and funding mechanisms for the state’s housing/building department, including grant administration.

Procedural and Timeline Highlights

  • Regulatory Review Timeline

    • Committee has up to 30 days to provide written comments on proposed regulations (with an exception for new emergency regulations).
    • Department must coordinate meetings to ensure timely review; if the committee does not respond within the window, the department may proceed.

  • Analyses Attached to Regulations

    • Cost-benefit and market impact analyses must be prepared before submission to the committee and included as attachments with the regulation filing to the Legislative Research Commission.

  • Budgeting, Procurement, and Administration

    • The department handles budgeting and procurement for its regulatory activities and enforcement.
    • Funds from grants and gifts support department activities via a dedicated trust and agency fund (not reverting to the general fund).

Practical Implications

  • Potentially more centralized and formal oversight of residential construction standards in Kentucky.
  • Increased transparency and stakeholder input in the rulemaking process through mandated committee review and published analyses.
  • Greater ability for the state to leverage federal funding and grants for housing and construction programs.
  • Development of cost-impact data to inform regulatory decisions affecting builders and the housing sector.

This summary provides a high-level view of SB 225’s core elements, focusing on substance, affected parties, and procedural steps.

Compiled from official sources — confirm details with the bill’s official record.

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