KentuckySB 1532026 Regular SessionSenateWALLET

AN ACT relating to the prevention of harmful and fraudulent practices.

How does this bill affect your finances?

Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.

Free to download

Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Stronger rules for insurance-paid repairs

Before you sign, the contractor must give contact details and a detachable cancellation form. You can cancel until midnight on the fifth business day after you get written notice from your insurer that some or all work is not covered. Contractors cannot take advance payments until that window ends, and must refund deposits within 10 days after you cancel. Contractors cannot act or market as adjusters or insurance experts; they can still provide repair estimates and talk to your insurer. They may not pay your deductible, rebate claim money, or give you more than $100 in bonuses or referral fees. They cannot have financial ties with public adjusters or appraisers, or sign you up for out‑of‑scope claim services. If your insurer pays or will pay, the contractor cannot file a mechanic’s lien for any amount above the insurer’s payment. The Attorney General can enforce these rules and seek $5,000 per violation. If you are harmed, you can sue, stop the practice, get twice your economic losses, and recover attorney fees and costs.

Crackdown on insurance damage scams

It is illegal for a contractor to cause or ask someone to damage your property to get work or grow an insurance claim. That scheme is now both insurance fraud and first‑degree criminal mischief, with criminal penalties. The Attorney General and local prosecutors can bring cases, and they must notify the insurance commissioner when they find fraud unless it has already been reported. Victims can sue for losses and their investigation and lawyer costs. You may also sue someone who knowingly directs others to commit the damage and seek punitive damages and court costs.

Disaster-area contractor registration rules

When a disaster damages real estate and a state of emergency is declared, the Attorney General can require contractors doing roofing, siding, water‑damage, or tree/debris work in the area to register for a set period. Contractors must apply with business and owner details, a local contact with ID numbers and date of birth, proof of liability insurance or bond, workers’ comp proof, 10‑year prior names, and lawsuit history. The AG issues nontransferable certificates. Contractors must show and post the certificate at job sites and provide it to insured customers and their insurers when claim payments are directed. In‑person door‑to‑door solicitation is banned for 90 days unless the owner approves; public ads and phone or digital outreach are allowed. Local governments generally cannot add a separate emergency license if contractors follow the AG rules, unless the AG agrees within five days that stricter local rules apply. Peace officers can enforce AG orders, and the AG can make rules to run the program.

Harsher penalties for infrastructure tampering

Damaging or tampering with key infrastructure so it stops working or becomes dangerous is now first‑degree criminal mischief. The law raises penalties to better protect public services and safety.

Reasonable charges for emergency repairs

If a contractor performs emergency repairs to stop more damage, they can bill a reasonable, customary amount even if the main contract cannot be enforced. You may still owe for the emergency work, but the charge must be reasonable.

Sponsors & Cosponsors

Sponsor

Greg Elkins
Republican • Senate

Cosponsors

Amanda Mays Bledsoe
Republican • Senate
Aaron Reed
Republican • Senate
Brandon J. Storm
Republican • Senate
Jared Carpenter
Republican • Senate
Matthew Deneen
Republican • Senate
Matt Nunn
Republican • Senate
Rick Girdler
Republican • Senate
Robby Mills
Republican • Senate
Reginald L. Thomas
Democrat • Senate
Steve Rawlings
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 128 • No: 0

House vote • 3/26/2026

3rd reading, passed

Yes: 90 • No: 0

Senate vote • 2/12/2026

3rd reading, passed

Yes: 38 • No: 0

Actions Timeline

signed by Governor (Acts Ch. 54)
4/8/2026
delivered to Governor
3/27/2026
enrolled, signed by Speaker of the House
3/27/2026Senate
enrolled, signed by President of the Senate
3/27/2026Senate
received in Senate
3/27/2026Senate
3rd reading, passed 90-0
3/26/2026House
posted for passage in the Regular Orders of the Day for Wednesday, March 25 2026
3/24/2026House
2nd reading, to Rules
3/5/2026House
reported favorably, 1st reading, to Calendar
3/4/2026House
to Banking & Insurance (H)
3/2/2026House
to Committee on Committees (H)
2/13/2026House
received in House
2/13/2026House
3rd reading, passed 38-0 with Committee Substitute (1)
2/12/2026Senate
posted for passage in the Regular Orders of the Day for Thursday, February 12 2026
2/11/2026Senate
2nd reading, to Rules
2/11/2026Senate
reported favorably, 1st reading, to Calendar with Committee Substitute (1)
2/10/2026Senate
to Banking & Insurance (S)
2/6/2026Senate
to Committee on Committees (S)
2/2/2026Senate
introduced in Senate
2/2/2026Senate

Bill Text

Current
2/12/2026
PDF
Introduced
2/2/2026
PDF

Related Bills

Back to State Legislation