SB 52 — AN ACT relating to ensuring fair permitting and licensing practices.

UNOFFICIAL COPY 26 RS BRSB 115752/GA AN ACT relating to ensuring fair permitting and licensing practices.

WHEREAS,Be theit freedomenacted ofby the citizensGeneral Assembly of Kentuckythe toCommonwealth engageof inKentucky: constitutionally protected activities has been increasingly curtailed by delays in permit requirements, licensing restrictions, and burdensome rules that require obtaining government permission;

and WHEREAS, about one-third of Kentucky citizens must get some form of permission from the state to do their jobs;

and WHEREAS, property owners are frequently forced to give up land, money, or other rights in exchange for building or development permits;

and WHEREAS, unelected bureaucrats, many of whom spend decades in their respective roles, have been exercising extraordinary judgment in approving permits using unclear criteria, unknown deadlines for approval, and uncertain appeals processes for permits that applicants believe were wrongly denied;

NOW, THEREFORE, Be it enacted by the General Assembly of the Commonwealth of Kentucky:

and (4) "Party""State hasagency": the same meaning as in KRS 13B.010;

and(a) (5)Means "Publica agency"department, hascabinet, theoffice, samedivision, meaningcommission, ascouncil, inboard, KRSbureau, 61.870.committee, institution, agency, government corporation, or any other entity within the executive branch of state government;

and (b) Does not include the Department of Kentucky State Police.

(1) Notwithstanding any other law to the contrary, a publicstate agency shall specify in Page 1 of 4 XXXX 1/7/2026 1:38 PM Jacketed UNOFFICIAL COPY 26 RS BR 1157 clear and unambiguous language the criteria for approval of a license or permit.

(2) A publicstate agency shall notapprove or deny aan permitapplication for reasonsa notlicense specifiedor bypermit law.within sixty (60) days if:

(3) (a) A publicspecific agencytimeline shallto approve or deny an application for a license or permit:permit is not otherwise prescribed by law, administrative regulation, or rule;

or (b) A law, administrative regulation, or rule is silent or ambiguous on a timeline to approve or deny an application for a license or permit.

(3) If a license or permit is not approved or denied within the timeframe established in subsection (2) of this section, the application shall be deemed approved by a state agency unless:

Page 1 of 4 SB005210.100 - 1157 - XXXX 2/23/2026 4:59 PM GA UNOFFICIAL COPY 26 RS SB 52/GA (a) The application is materially incomplete and the applicant, after being notified of the deficiency, has failed to correct it;

or (b) A state agency issues a written justification for an extension of time within the sixty (60) days that specifies the additional time necessary for making a determination on an application for a license or permit, which shall:

WithinNot exceed an additional thirty (30) days;days under any circumstance;

and 2.

Be based upon a substantial and demonstrable interest in protecting public health, safety, or welfare, including but not limited to, permits or licenses involving building safety, fire protection, utilization of public infrastructure, utility capacity, or which require coordination with other state agencies.

(4) The determination of what constitutes clear and unambiguous language shall be a judicial question, without deference to a state agency.

(5) (a) This section shall not apply to licenses, permits, or other authorizations:

1.

The criteria or the programs for which are either established by, adopted from, or directly authorized by federal law;

AtThat aare specificestablished timeby prescribedfederal bylaw law,in administrativewhich regulation,authority rule,to determine the criteria for approval of a license, permit, or ordinance;other authorization has been delegated to a state agency;

and (b) IfThe aapplication law,of administrativethis regulation,section rule,to ora ordinancelicense, ispermit, silent or ambiguousother onauthorization apursuant timeline to approveparagraph or(a) denyof athis licensesubsection orwould permit,result thenin a publicviolation agencyof shallfederal approvelaw or denya violation of the licenseterms orof permitdelegation withinmade thirtypursuant (30)to days.federal law to the state agency.

(4) If a license or permit is not approved or denied within the timeframe defined in subsection (3) of this section, the application shall be deemed approved by a public agency unless:

(a) The application is incomplete;

and (b) The applicant, after being notified of the deficiency, has failed to correct it.

(5) The determination of what constitutes clear and unambiguous language shall be a judicial question, without deference to the government or public agency.

(6) This section shall not apply to licenses or permits the criteria for which are established by federal law.

(1) AAn partyapplicant who has been denied a license or permit may request an administrative hearing to be conducted by the publicstate agency that issued the denial.

Page 2 of 4 SB005210.100 - 1157 - XXXX 2/23/2026 4:59 PM GA UNOFFICIAL COPY 26 RS SB 52/GA The publicstate agency shall conduct the hearing in accordance with this section and KRS Chapter 13B or the relevant provision governing administrative hearings for that publicstate agency.

(2) Notwithstanding subsection (1) of this section, in any publicstate agency hearing Page 2 of 4 XXXX 1/7/2026 1:38 PM Jacketed UNOFFICIAL COPY 26 RS BR 1157 involving an application for a license or permit, a publicstate agency shall have the burden of persuasion relating to a publicstate agency's:agency's denial of:

(a) DenialA of a license or permit;

or (b) DenialAn of an application or request for modification of a license or permit application;application.

(c)(3) ActionNotwithstanding tosubsection suspend,(1) revoke,of terminate,this section, at a state agency hearing involving an application for a license or modifypermit, upon the motion of an applicant or the state agency and for use as evidence, the hearing officer may permit a deposition to be taken, in the manner and on itsthe ownterms initiativedesignated materialby conditionsthe hearing officer, of a licensewitness who cannot be subpoenaed or permit;who is unable to attend the hearing.

(d) Imposition of fees or penalties;

and (e) Compliance order.

(3) Notwithstanding subsection (1) of this section, a public agency hearing involving an application for a license or permit, upon application of a party or the public agency and for use as evidence, the hearing officer may permit a deposition to be taken, in the manner and on the terms designated by the hearing officer, of a witness who cannot be subpoenaed or who is unable to attend the hearing.

(1) TheAn partiesapplicant in a publicstate agency hearing involving the denial of a license or permit shall be entitled to a speedy and public judicial review of a final order pursuant to KRS 13B.140 or the relevant provisions governing judicial review of a final order of an administrative hearing for that publicstate agency.