Kentucky 2024 2024 Regular Session

Kentucky Senate Bill SB346 Introduced / Bill

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AN ACT relating to business regulation. 1 
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 
Section 1.   KRS 14.250 is amended to read as follows: 3 
(1) The Secretary of State shall serve as the chief business official, and in 4 
consultation with other state agencies,[ Finance and Administration Cabinet, the 5 
Cabinet for Economic Development, and the Commonwealth Office of 6 
Technology] shall develop, operate, and maintain the Kentucky One-Stop 7 
Business Portal which[jointly establish a one-stop electronic business portal that] 8 
shall serve as a single, unified entry point for business owners to access and 9 
complete initial and ongoing state services and requirements in relation to the 10 
creation or ongoing operation of a business located in the Commonwealth of 11 
Kentucky[. The agencies identified in this subsection shall coordinate, manage, and 12 
implement the portal based on the results of an assessment conducted by the One-13 
Stop Business Portal Advisory Committee under subsection (3) of this section]. 14 
(2) No later than January 1, 2025: 15 
(a) The Secretary of State shall establish an updated framework and 16 
information exchange process for the Kentucky One-Stop Business Portal, 17 
including uniform policies and procedures in order to ensure coordination 18 
between government agencies; and 19 
(b) The Commonwealth Office of Technology shall redirect web traffic on the 20 
website for the Secretary of State, and shall cooperate with the Secretary of 21 
State for the transfer of all intangible property currently in use by the 22 
Kentucky One-Stop Business Portal, including but not limited to the One 23 
Stop Business Portal uniform resource locator, the application 24 
programming interface, the web hosting infrastructure, and data to the 25 
Secretary of State[The One-Stop Business Portal Advisory Committee is 26 
hereby established to provide guidance in the creation and implementation of 27  UNOFFICIAL COPY  	24 RS BR 2351 
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the one-stop business portal. The committee shall consist of the Secretary of 1 
State, the secretary of the Governor's Executive Cabinet, the secretary of the 2 
Economic Development Cabinet or his or her designee, the secretary of the 3 
Finance and Administration Cabinet or his or her designee, the secretary of 4 
the Education and Labor Cabinet or his or her designee, the secretary of the 5 
Public Protection Cabinet or his or her designee, the secretary of the 6 
Transportation Cabinet or his or her designee, the secretary of the Tourism, 7 
Arts and Heritage Cabinet or his or her designee, and the secretary of the 8 
Energy and Environment Cabinet or his or her designee. The Governor may 9 
appoint other members to the committee at his or her discretion. The 10 
committee shall be co-chaired by the Secretary of State and the secretary of 11 
the Governor's Executive Cabinet]. 12 
(3) No later than January 1, 2026, the Kentucky One-Stop Business Portal shall be 13 
available for public use and may include the information and capabilities 14 
described by subsections (4) to (9) of this section[The One-Stop Business Portal 15 
Advisory Committee shall prepare an assessment detailing recommendations for the 16 
creation, ongoing operation, and management of the one-stop business portal, to be 17 
presented to the Governor, the Secretary of State, and the Legislative Research 18 
Commission by December 31, 2011. This assessment shall include the following: 19 
(a) An estimate of the costs for full implementation of the portal, including those 20 
associated with technology, maintenance, sharing agency data, information 21 
security, and other start-up costs; 22 
(b) An estimate of the costs of establishing and maintaining a call center staffed 23 
with persons trained to answer questions and help businesses obtain 24 
information and services, along with a recommendation as to where the call 25 
center should be located and the number of staff necessary to operate it; 26 
(c) Recommendations on the location, design, and functionality of the portal; 27  UNOFFICIAL COPY  	24 RS BR 2351 
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(d) Recommendations as to the roles of the state agencies identified in subsection 1 
(1) of this section regarding the day-to-day operational management of the 2 
portal; 3 
(e) Recommendations on the time line for developing and testing the portal; 4 
(f) Identification of any statutory or regulatory changes that need to be made to 5 
existing law to effectuate the portal's functionality; 6 
(g) Identification of other state agencies that possess business-related functions 7 
and content so that those functions can be added to the portal; 8 
(h) Identification of any impediments posed by federal law and recommended 9 
ways to address the impediment; 10 
(i) A comprehensive analysis of the processes of all state agencies, with a view 11 
toward streamlining and reducing the paperwork necessary for businesses to 12 
interact with each agency; and 13 
(j) Recommendations on the scope of services to be provided by the portal. At a 14 
minimum, services shall include: 15 
1. Application and renewal of business-related licenses and fees incident to 16 
the start-up and operation of a business; 17 
2. Electronic payment of taxes and related costs imposed by state law 18 
incident to the operation of a business; 19 
3. Filing of documents and papers imposed by state law associated with the 20 
operation of a business; and 21 
4. Creation of individual electronic accounts for each business which 22 
allows the business to monitor its filings, payments, and other business-23 
compliance activities]. 24 
(4) The Kentucky One-Stop Business Portal [Advisory Committee ]shall provide a 25 
single point of entry for conducting interactions with state agencies, and may 26 
facilitate or provide the capability to: 27  UNOFFICIAL COPY  	24 RS BR 2351 
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(a) Access consolidated records concerning notices, communications, and 1 
calendar requirements from all government agencies integrated with the 2 
portal;[Ensure that the portal has a Web site and the ability to process new 3 
business registrations as handled by the Secretary of State's Office, and will 4 
be in a testing phase for the Department of Revenue's tax registration 5 
application by December 31, 2012; and] 6 
(b) Identify and notify registered businesses of new compliance standards 7 
relevant to each particular business. State agencies shall use the Kentucky 8 
One-Stop Business Portal to promptly notify relevant businesses of 9 
regulatory changes;[Ensure that subsequent and additional online business 10 
applications maintained by the Commonwealth shall be evaluated and 11 
prioritized] 12 
(c) Engage with interactive tools designed to gauge preparedness to start a 13 
business, aid in understanding the process of creating a business plan, 14 
assist in determining the best structure for a business, and search for 15 
licenses and permits based on a business type; 16 
(d) Complete and access information, forms, and requirements related to 17 
starting a business, including guidance on how to determine a name and 18 
structure, register a business, receive tax numbers, discover insurance 19 
requirements, find licenses and permits, understand employer 20 
responsibilities, and identify administrative regulations for the business; 21 
and 22 
(e) Obtain information related to operating a business, including but not 23 
limited to federal, state, and local tax information, insurance policies, 24 
employer responsibilities, professional and environmental permits and 25 
licenses, guidance on annual reporting, current administrative regulations, 26 
business counseling, and assistance with retirement, ownership transfer, 27  UNOFFICIAL COPY  	24 RS BR 2351 
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and dissolution. 1 
(5) The Secretary of State may establish, and update as necessary, the following 2 
business registration features on the Kentucky One-Stop Business Portal: 3 
(a) A flexible identification management system for the portal; 4 
(b) Unemployment insurance business registration requirements; 5 
(c) The opportunity to register as a health care facility and child care provider, 6 
and a description of the certificate of need process; 7 
(d) Kentucky vendor services registration for all of the Commonwealth's 8 
procurement services; 9 
(e) Notifications on local government business registration, occupational safety 10 
and health requirements, and wage and hour requirements; and 11 
(f) The ability to make electronic payments. 12 
(6) The Secretary of State may automate and integrate, and update as necessary, the 13 
following capabilities of the Kentucky One-Stop Business Portal: 14 
(a) All interactions a business may have with the unemployment insurance 15 
system; and 16 
(b) All interactions a business may have with the Department of Workers' 17 
Claims. 18 
(7) The Secretary of State may implement, and update as necessary, the following 19 
features on the Kentucky One-Stop Business Portal: 20 
(a) An electronic license system for individual professional licenses; 21 
(b) A pathway for businesses to apply, renew, and maintain licenses through 22 
the Kentucky One-Stop Business Portal; 23 
(c) A section for businesses to apply for permits needed to operate their 24 
business through the Kentucky One-Stop Business Portal; and 25 
(d) Access to materials related to compliance needs including but not limited to 26 
certificates, reporting, and maintenance of status. 27  UNOFFICIAL COPY  	24 RS BR 2351 
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(8) The Kentucky One-Stop Business Portal shall streamline licensing and 1 
regulatory requirements, and accommodate the needs of government agencies 2 
through the integration of licensing and regulatory systems, into the notice and 3 
messaging communications of the portal by January 1, 2026. 4 
(9) The Secretary of State may establish additional features and capabilities of the 5 
Kentucky One-Stop Business Portal as needed in order to keep the portal 6 
functioning and current. 7 
(10) The Secretary of State shall establish the standard use of North American 8 
Industry Classification System or similar system of universal industry codes in 9 
order to identify and match businesses with their regulatory agencies and 10 
determine the agencies that will primarily regulate or tax them. 11 
(11) No later than January 1, 2026, all executive branch agencies, other than the 12 
Department of Revenue, shall integrate their licensing and regulatory compliance 13 
with the Kentucky One-Stop Business Portal. 14 
(12) The Secretary of State shall establish a consolidated call center to be staffed by 15 
trained and knowledgeable persons who are able to provide business information 16 
and services related to the Kentucky One-Stop Business Portal. 17 
(13) The Secretary of State shall submit a report to the Legislative Research 18 
Commission for referral to Interim Joint Committee on Licensing, Occupations, 19 
and Administrative Regulations on the progress of the Kentucky One-Stop 20 
Business Portal on or before June 30, 2026, and each successive year. 21 
(14) The Secretary of State may promulgate administrative regulations as necessary, 22 
in accordance with KRS Chapter 13A, to implement the provisions of this section, 23 
and may perform additional technical updates as necessary to maintain the 24 
operation of the Kentucky One-Stop Business Portal. 25 
Section 2.   KRS 14.255 is amended to read as follows: 26 
(1) To help facilitate data sharing between state agencies and as part of the ongoing 27  UNOFFICIAL COPY  	24 RS BR 2351 
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establishment of the Kentuckyt[a] One-Stop[ electronic] Business Portal, the 1 
Secretary of State[, the Finance and Administration Cabinet, the Cabinet for 2 
Economic Development, the Education and Labor Cabinet, and the Commonwealth 3 
Office of Technology] shall[ jointly] establish a unique Commonwealth business 4 
identification number which can be used in filings and services provided by the 5 
[business ]portal. 6 
(2) The Secretary of State shall assign each business entity registered through the 7 
Kentucky One-Stop Business Portal a unique Commonwealth business 8 
identification number. 9 
(3)[(2)] By January 1, 2026, state agencies integrated with the Kentucky One-Stop 10 
Business Portal shall use the Commonwealth business identification number[By 11 
December 31, 2013, the agencies identified in subsection (1) of this section shall: 12 
(a) Recommend a timeline for implementing the new business identification 13 
numbering system for new business filings; and 14 
(b) Establish a five (5) year timeline for all state agencies to utilize the 15 
Commonwealth business identification number] to facilitate data sharing and 16 
continued growth of services provided by the[ business] portal. 17 
Section 3.   KRS 11.202 is amended to read as follows: 18 
(1) The duties of the Commission on Small Business Innovation and Advocacy shall 19 
include but not be limited to: 20 
(a) Coordinate and promote the awareness of the Federal Small Business 21 
Regulatory Enforcement Fairness Act of 1996, and its subsequent 22 
amendments within the small business community of the Commonwealth; 23 
(b) Develop a process by which the small business community is made aware of 24 
state legislation and administrative regulations affecting it, both prior to its 25 
enactment and during its implementation; 26 
(c) Advocate for the small business sectors when state legislation and 27  UNOFFICIAL COPY  	24 RS BR 2351 
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administrative regulations are overly burdensome, costly, or harmful to the 1 
success and growth of the sector; 2 
(d) Collect information and research those public policies and government 3 
practices which are helpful or detrimental to the success and growth of the 4 
small business community; and 5 
(e) Review administrative regulations that may impact small business. The 6 
commission may seek input from other agencies, organizations, or interested 7 
parties. In acting as an advocate for small business, the commission may 8 
submit a written report to the promulgating administrative body to be 9 
considered as comments received during the public comment period required 10 
by KRS 13A.270(1)(c). The report may specify the commission's findings 11 
regarding the administrative regulation, including an identification and 12 
estimate of the number of small businesses subject to the administrative 13 
regulation, the projected reporting, recordkeeping, and other administrative 14 
costs required for compliance with the administrative regulation, and any 15 
suggestions the commission has for reducing the regulatory burden on small 16 
businesses through the use of tiering or exemptions, in accordance with KRS 17 
13A.210. A copy of the report shall be filed with the regulations compiler of 18 
the Legislative Research Commission. 19 
(2) By September 1 of each year, the commission shall submit a report to the Governor, 20 
and the Legislative Research Commission[Interim Joint Committee on Economic 21 
Development and Workforce Investment, and the Interim Joint Committee on 22 
Tourism, Small Business, and Information Technology] detailing its work in the 23 
prior fiscal year, including but not limited to the following: 24 
(a) Activities and achievements of the commission in accomplishing its purposes 25 
and duties; 26 
(b) Findings of the commission related to its collection of information and 27  UNOFFICIAL COPY  	24 RS BR 2351 
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research on public policies and government practices affecting small 1 
businesses, including specific legislation and administrative regulations that 2 
are helpful or detrimental to the success of small businesses; and 3 
(c) Specific recommendations of ways state government could better promote the 4 
economic development efforts of small businesses in the Commonwealth. 5 
(3) Beginning December 1, 2012, and on every December 1 thereafter, the commission 6 
shall submit an annual report to the Secretary of State and the Legislative Research 7 
Commission setting forth an analysis of how the Kentucky One-Stop[ electronic] 8 
Business Portal established in KRS 14.250 may be improved to make it[the 9 
business portal] more user friendly for businesses. 10 
Section 4.   KRS 147A.032 is amended to read as follows: 11 
(1) As used in this section, "department" means the Department for Local Government. 12 
(2) The department may, to the extent resources are available, establish an industrial 13 
revenue bond information clearinghouse to serve as a central statewide point of 14 
contact for the dissemination of information and guidance relating to the issuance 15 
and use of industrial revenue bonds by units of local government. 16 
(3) The clearinghouse shall collect and disseminate information and guidance that may 17 
be adopted by units of local government seeking to issue industrial revenue bonds, 18 
including: 19 
(a) Identification of best practices; 20 
(b) Model ordinances and resolutions; 21 
(c) Proper issuance procedures; 22 
(d) Examples of possible uses of industrial revenue bond proceeds; and 23 
(e) Other model guidelines. 24 
(4) Information provided through the clearinghouse shall be published on a Web site 25 
that is accessible to the general public to assist private sector businesses, nonprofit 26 
organizations, and others that may benefit from the issuance of industrial revenue 27  UNOFFICIAL COPY  	24 RS BR 2351 
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bonds. 1 
(5) The Finance and Administration Cabinet, the Cabinet for Economic Development, 2 
and the Energy and Environment Cabinet shall assist the department, as needed, in 3 
the development of the clearinghouse, to ensure the most complete, accurate, and 4 
current information relating to the issuance and possible uses of industrial revenue 5 
bonds is available on the Web site. 6 
(6) After the initial development of the clearinghouse is complete, and for as long as it 7 
is available, a link to the Web site shall be made available on the Kentucky One-8 
Stop Business Portal established in KRS 14.250. 9