HB 851 (2026 Session, Kentucky) – Summary of Reporting Requirements and Fee Allocations
Purpose and intent
- This act revises and clarifies fees charged by county clerks for various recording, filing, and related services and establishes permanent, dedicated funds for the Kentucky affordable housing trust and for the costs of permanent record storage and digitization.
- It also imposes reporting duties to track receipts and expenditures from these funds.
Key provisions and changes
1) Revised fee schedule (KRS 64.012, subsection (1))
- The bill lists numerous services eligible for recording and indexing fees, including deeds, deeds of trust, liens, notices (e.g., lis pendens, IRS liens), assignments, powers of attorney, releases, maps, surveys, real estate mortgages, and other court-ordered or statutory recordings.
- General fee structure:
- For items where the entire instrument does not exceed five pages: $33.00
- For items exceeding five pages: $3.00 per additional page
- Additional reference fees: $4.00 per additional reference relating to the same instrument
- Specific variations and notable items:
- Acknowledgments/notarizations, licenses, marriage licenses, and other listed services have individual fees (e.g., marriage license and certificate: $26.50; recording plats/maps: $40 per page; bonds: $10 per bond; notarization: $5 per signature).
- Certain specialized or state-related filings (e.g., notices of liens, IRS notices) are included in the schedule.
- Notably, subsection (1)(a)(1) aggregates many categories with a base schedule and per-page/additional-reference charges.
2) Allocation of the $33 fee (subsection (1)(a))
- Of the $33 fee:
- $27 retained by the county clerk
- $6 remitted to the Affordable Housing Trust Fund (KRS 198A.710)
- Remittance to the Trust Fund is due within ten days after the end of the quarter in which the fee is received, with a summary report on a form prescribed by the Kentucky Housing Corporation.
3) Special allocation for the mortgage and related filings (subsection (1)(ae))
- Recording and indexing a real estate mortgage up to 30 pages: $63
- For mortgages exceeding 30 pages: $3 per additional page
- The $63 mortgage-related fee is divided as:
- $57 retained by the county clerk
- $6 remitted to the Affordable Housing Trust Fund, with same reporting requirements as above
4) Perimeter for storage-related services (subsection (2)(a)-(c))
- For permanent storage-related services (listed items: certain records such as deeds, maps, etc.), the clerk may receive a $10 reimbursement.
5) Fund governance and reporting in urban-county and consolidated local government contexts
- Urban-county or charter/unified local governments (and counties with urban-county status) must:
- Use the funds in a separate account; do not lapse to the general fund
- Use the funds exclusively for equipment, hardware, software, digitization personnel, and cloud/cybersecurity costs related to permanent storage and access to records
- Report annually (by August 1) to the Legislative Research Commission detailing receipts, expenditures, and remaining balances
- In consolidated local governments:
- Similar dedicated fund requirements and annual reporting to the consolidated government and LRC
- Expenditures identified similarly for permanent storage and digitization
Who is affected
- County clerks and their offices (filing/recording duties, fee collection, and remittance processes)
- Individuals and entities recording or filing real estate documents, liens, notices, licenses, and related instruments
- Affordable Housing Trust Fund (receives portions of specified recording fees)
- Kentucky Housing Corporation (provides forms/guidance for reporting to the Trust Fund)
- Local governments (urban-county, charter, unified local governments, and consolidated local governments) responsible for managing and reporting the dedicated storage/digitization funds
Procedural and timeline aspects
- The bill establishes quarterly remittance deadlines to the Affordable Housing Trust Fund (within ten days after the end of the quarter).
- Annual reporting deadline for fund balances and expenditures: no later than August 1 each year (the bill shows a July/August date in brackets, indicating a potential July/August target).
- Funds are to be maintained in separate accounts and are not allowed to lapse to general funds in affected jurisdictions.
Overall impact
- Creates a structured fee framework for recording/filing services with a portion earmarked for affordable housing.
- Establishes dedicated funds for permanent storage/digitization of records, with governance and annual reporting requirements to increase transparency and accountability.
- Aims to improve record preservation infrastructure while linking a portion of recording activity to housing affordability initiatives.
