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KentuckySB 762025 Regular SessionSenate

AN ACT relating to contracts for the improvement of real estate.

Sponsored By: Greg Elkins (Republican)

Signed by Governor

PropertyReal EstateContracts

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Higher escrow threshold for construction payments

Kentucky raises the contract threshold for protected construction payments from $500,000 to $2 million. For real-estate improvement contracts worth at least $2 million, owners must put withheld payments into a separate escrow account. Smaller contracts lose this required protection, and construction contracts cannot waive the rule where it applies. The account must be held by a bank or trust company authorized to do business in Kentucky. Deposited money belongs solely to the contractor, and the escrow agent chooses how to invest it. After satisfactory completion, shown by the owner's written release, the contractor must immediately receive the funds and earned interest. A commercially reasonable fee, agreed to by the owner, contractor, and escrow agent, is paid from the account. Contractors can sue owners who fail to provide the release. Contracts with Kentucky's state government and the local government entities and school boards specified in the law are exempt.

Sponsors & Cosponsors

Sponsor

  • Greg Elkins

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 137 • No: 0

House vote • 3/28/2025

3rd reading, passed

Yes: 100 • No: 0

Senate vote • 2/11/2025

3rd reading, passed

Yes: 37 • No: 0

Actions Timeline

  1. signed by Governor (Acts Ch. 156)

    4/2/2025

  2. delivered to Governor

    3/28/2025

  3. enrolled, signed by Speaker of the House

    3/28/2025Senate

  4. enrolled, signed by President of the Senate

    3/28/2025Senate

  5. received in Senate

    3/28/2025Senate

  6. 3rd reading, passed 100-0

    3/28/2025House

  7. posted for passage in the Regular Orders of the Day for Thursday, March 13, 2025

    3/12/2025House

  8. 2nd reading, to Rules

    3/12/2025House

  9. reported favorably, 1st reading, to Calendar

    3/11/2025House

  10. to Economic Development & Workforce Investment (H)

    3/5/2025House

  11. to Committee on Committees (H)

    2/12/2025House

  12. received in House

    2/12/2025House

  13. 3rd reading, passed 37-0

    2/11/2025Senate

  14. posted for passage in the Regular Orders of the Day for Tuesday, February 11, 2025

    2/7/2025Senate

  15. 2nd reading, to Rules

    2/7/2025Senate

  16. reported favorably, 1st reading, to Calendar

    2/6/2025Senate

  17. to Economic Development, Tourism, & Labor (S)

    2/4/2025Senate

  18. to Committee on Committees (S)

    1/10/2025Senate

  19. introduced in Senate

    1/10/2025Senate

Bill Text

  • Current

    2/11/2025

    PDF

  • Introduced

    2/11/2025

    PDF

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