Page 1 of 4 LRC 2024-BR2400-HB734
COMMONWEALTH OF KENTUCKY FISCAL NOTE STATEMENT
LEGISLATIVE RESEARCH COMMISSION
2024 REGULAR SESSION
MEASURE
2024 BR NUMBER 2400 HOUSE BILL NUMBER 734
TITLE AN ACT relating to the promotion of family well-being and making an appropriation therefor.
SPONSOR Representative Killian Timoney
FISCAL SUMMARY
STATE FISCAL IMPACT: YES NO UNCERTAIN
OTHER FISCAL STATEMENT (S) THAT MAY APPLY: ACTUARIAL ANALYSIS
LOCAL MANDATE CORRECTIONS IMPACT HEALTH BENEFIT MANDATE
APPROPRIATION UNIT(S) IMPACTED: Cabinet for Health and Family Services; Dept. of Agriculture;
Finance and Administration Cabinet; Council on Postsecondary Education; Dept. of Corrections;
Administrative Office of the Courts; Kentucky State Police; Legislative Research Commission
FUND(S) IMPACTED: GENERAL ROAD FEDERAL RESTRICTED Universities’
Tuition and Fees
( ) indicates a decrease/negative
FISCAL ESTIMATES 2023-2024 2024-2025 2025-2026 ANNUAL IMPACT
AT FULL
IMPLEMENTATION
REVENUES
EXPENDITURES General Fund
>$90.4 million
Federal Funds
$67.7 million
Restricted Funds
$38.1 million
Total
>$196.2 million
General Fund
>$120.4 million
Federal Funds
$143.7 million
Restricted Funds
$38.1 million
Total
>$302.2 million
General Fund
>$120.4 million
Federal Funds
$143.7 million
Restricted Funds
$38.1 million
Total
>$302.2 million
NET EFFECT General Fund
>($90.4 million)
Federal Funds
($67.7 million)
Restricted Funds
($38.1 million)
Total
>($196.2 million)
General Fund
>($120.4 million)
Federal Funds
($143.7 million)
Restricted Funds
($38.1 million)
Total
>( $302.2 million)
General Fund
> ($120.4 million)
Federal Funds
($143.7 million)
Restricted Funds
($38.1 million)
Total
>( $302.2 million) Page 2 of 4 LRC 2024-BR2400-HB734
PURPOSE OF MEASURE: This measure seeks to expand the eligibility and benefits for public
assistance programs for families and pregnant individuals within the Cabinet for Health and
Family Services (CHFS) with provisions including banning the Cabinet from relying solely on
automated Artificial Intelligence-based software to identify fraud; requiring breast-feeding
supplies and lactation support service coverage through Medicaid; requiring that Supplemental
Nutrition Assistance Program Employment and Training (SNAP E&T) programs expand job
training and support services; requiring CHFS to continue the eligibility and reimbursement
changes made to the Child Care Assistance Program (CCAP) during COVID-19; requiring the
expansion of the Women, Infants, and Children (WIC) Famers Market Nutrition Program into
Jefferson County; requiring WIC extended benefits for six months upon ineligibility of the
program; and requiring additional slots in the Home and Community Based (HCB), Michelle P,
and the Supports for Community Living (SCL) Waivers. The bill also directs CHFS to
administer a Basic Health Plan, exercise a State Plan Amendment, submit a Section 1332 State
Innovation Waiver application, and submit a United States Department of Agriculture Food and
Nutrition Services Waiver.
Additional provisions require health coverage insurers to provide a special enrollment period for
pregnant individuals to access health coverage, require health benefit plans to provide coverage
for dependents regardless of age, require the establishment of a rental assistance program
through the Kentucky Housing Corporation (KHC) for pregnant individuals and/or children
under age five, require the Department of Agriculture to establish a Farm-to-School program and
establish a Senior Farmers Market Nutrition Program; and require any Kentucky postsecondary
institution to waive tuition and mandatory fees for students who meet the entrance requirements
if the student is pregnant or the parent of child under eighteen (18) years of age, and has incomes
at or below the 150 percent of the federal poverty level. The Legislative Research Commission
(LRC) is also required to establish a Basic Health Program Design Task Force.
FISCAL EXPLANATION : This legislation includes a General Fund appropriation to CHFS of
$37.1 million in fiscal year 2025 and $67.1 million in fiscal year 2026, and a Federal Funds
appropriation to CHFS of $64 million in fiscal year 2025 and $140 million in fiscal year 2026.
The Cabinet anticipates these funds should be adequate to implement the provisions listed in this
legislation in Sections 34-39. In addition to the appropriations for CHFS, it is estimated it will
cost the Cabinet up to $730,000 in General Fund and $3.7 million in Federal Funds annually to
implement the breast-feeding supplies and lactation support service coverage through Medicaid
listed in Section 13 and at least $46.5 in General Fund dollars in each fiscal year to support the
CCAP initiative listed in Section 19. The provisions in this legislation direct CHFS to utilize the
federal Child Care and Development Fund block grant to fund the CCAP initiatives, but future
federal funding for the grant is uncertain; therefore, the estimated costs listed are General Fund.
Section 31 appropriates $5 million in General Fund in each fiscal year to KHC, which is
administratively attached to the Finance and Administration Cabinet to support the rental
assistance program.
Sections 32 and 33 appropriate $1.1 million in General Fund in each fiscal year to support the
Farm-to-School and Senior Farmer Market Programs at the Department of Agriculture.
Page 3 of 4 LRC 2024-BR2400-HB734
There are additional fiscal impacts anticipated beyond the appropriations provided in this bill.
The Council on Postsecondary Education (CPE) estimates that the provisions in Section 21,
which provide for a waiver of tuition and mandatory student fees, could have an annual impact
of $38.1 million in Restricted Funds to the universities' tuition and fees accounts.
There will be a minimal fiscal impact of less than $25,000 for the LRC to implement the Health
Program Design Task Force.
Depending on the exact number of future expungement orders, there may be a need for
additional staff to process expungement orders. The impacted agencies include the Department
of Corrections, the Administrative Office of the Courts, and the Kentucky State Police. Because
the number of future expungements is unknown, these provisions have an indeterminable impact
on the General Fund.
In conclusion, the overall cost of this legislation is expected to be greater than $196.2 million in
fiscal year 2025 and greater than $302.2 million in fiscal year 2026 and at full implementation.
The overall impact is indeterminable given the unknown costs related to future expungement
orders. A table is included which details appropriations provided within this legislation by fiscal
year and fund source.
Page 4 of 4 LRC 2024-BR2400-HB734
Appropriations Provided in House Bill 734
Agency Section Fund
Source
Appropriation
2024-2025
Appropriation
2025-2026
Biennium Total
Kentucky Housing-Rental
Assistance
31 General $5,000,000 $ 5,000,000 $10,000,000
Dept of Agriculture-Farm to
School Program
32 General 1,000,000 1,000,000 2,000,000
Dept of Agriculture-Senior
Farmers Market Nutrition
Program
33 General 100,000 100,000 200,000
CHFS-WIC Farmers Market 34 General 100,000 100,000 200,000
CHFS-SNAP E&T 35 General 2,000,000 2,000,000 4,000,000
CHFS-HCB Waiver 36 General 1,413,100 2,826,200 4,239,300
140 slots each Fiscal Year
Federal 3,297,300 6,594,600 9,891,900
CHFS-Michelle P Waiver 37 General 16,050,200 32,100,400 48,150,600
1,050 slots each Fiscal Year
Federal 31,450,500 74,900,900 106,351,400
CHFS-SCL Waiver 38 General 12,530,900 25,061,800 37,592,700
400 slots each Fiscal Year
Federal 29,238,700 58,477,400 87,716,100
CHFS-WIC Expansion 39 General 5,000,000 5,000,000 10,000,000
General Fund Totals
General $43,194,200 $73,188,400 $116,382,600
Federal Funds Totals
Federal $63,986,500 $139,972,900 $203,959,400
Grand Total
$107,180,700 $213,161,300 $320,342,000
DATA SOURCE(S): Cabinet for Health and Family Services; LRC Staff
PREPARER: Kevin Newton; Zach Ireland; Sara Rome; Savannah Wiley; Justin Smith; Jeremy
Simpson; Justin Perry NOTE NUMBER: 150 REVIEW: JB DATE: 3/22/2024