SB153 - Prevention of Harmful Real Estate Practices
Summary
Kentucky Governor signed SB153 into law on April 8, 2026, establishing comprehensive protections against harmful and fraudulent real estate practices. The Act prohibits contractors from engaging in specific predatory behaviors including requiring assignment of benefits, charging unenforceable cancellation fees, making false representations, and soliciting business in person for 90 days after a declared emergency. The Attorney General receives expanded enforcement authority including concurrent jurisdiction over insurance fraud investigations and new emergency registration requirements for contractors operating in disaster areas.
What changed
SB153 enacts comprehensive amendments to Kentucky Revised Statutes Chapter 367 governing real estate goods and services contractors. Key provisions require contractors to furnish notice before entering contracts, prohibit unenforceable cancellation fees, ban certain marketing representations, and prevent financial connections between contractors and third parties. The Act also creates a new emergency registration framework empowering the Attorney General to issue orders requiring contractor registration during declared states of emergency, with 90-day in-person solicitation bans in affected areas.
Affected contractors must immediately assess existing contract templates for compliance with new prohibitions, particularly regarding assignment of benefits clauses and fee provisions. Real estate service providers should monitor for Attorney General rulemaking establishing registration procedures. The criminal penalty provisions for violations create heightened enforcement risk, and insurers should review internal processes given the expanded fraudulent insurance act definition.
What to do next
- Contractors must review and update consumer-facing contract language to eliminate prohibited fee provisions
- Contractors operating in disaster areas must obtain certificate of registration from Attorney General and post at each job site
- Contractors should implement compliance training on new prohibitions against assignment of benefits and post-emergency solicitation
Penalties
Violations constitute fraudulent insurance act under KRS 304.47-020 and criminal mischief in the first degree under KRS 512.020
Archived snapshot
Apr 9, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
ChangeBridge / Kentucky / SB153 Signed by Governor SB153 Senate Bill Signed by Governor 2026-04-08
AN ACT relating to the prevention of harmful and fraudulent practices.
Amend KRS 367.620 to exclude certain activity from the definition of "goods or services relating to real estate"; amend KRS 367.624 to require contractors to furnish a notice relating to assignment of benefits prior to entering into a real estate goods or services contract; amend KRS 367.626 to prohibit requiring a person to pay a cancellation fee or any other fee contained in a contract that is not enforceable against the person; amend KRS 367.628 to prohibit certain representations and marketing by a contractor or person representing a contractor; provide that certain contracts between a contractor or person representing a contractor and an insured are not enforceable; modify provision prohibiting causing, or encouraging another person to cause, damage to real estate; prohibit contractors from having a financial connection with certain persons; prohibit contractors from soliciting or providing contracts on behalf of certain persons; provide that certain violations constitute a fraudulent insurance act under KRS 304.47-020 and criminal mischief in the first degree under KRS 512.020; amend KRS 367.627 to make technical amendments; require the Attorney General to enforce the contractor requirements; create a new section of KRS Chapter 15 to provide the Attorney General with concurrent jurisdiction in the investigation and prosecution of offenses under KRS 304.47-020; amend KRS 304.47-020 and 512.020 to conform; create a new section of KRS Chapter 367 to authorize the Attorney General to issue an order during certain states of emergency to require persons engaging in business as a contractor in the designated area to obtain a certificate of registration; establish registration application requirements; authorize peace officers in the designated area to enforce an order issued by the Attorney General; require contractors to post a copy of the contractor's certificate of registration at each job site within the designated area; require contractors to provide a copy of the certificate of registration or proof of registration to specified persons; prohibit contractors from soliciting business in person within the designated area for 90 days after a state of emergency is declared; prohibit local governments from imposing emergency registration or licensure for contractors under certain circumstances; exempt contractors from the registration and related requirements if the Attorney General determines that the local government imposes greater emergency registration or licensing requirements; permit a local government to submit a declaration to the Attorney General stating that the local government's emergency registration or licensure requirements are greater than those imposed under the section; require the Attorney General to affirm or reject a local government's declaration; authorize the Attorney General to promulgate administrative regulations; amend KRS 411.230 to conform; direct that certain provisions apply to contracts entered into on or after the effective date of the Act.
Bill Details
State Kentucky
Session 2026 Regular Session
Chamber Senate
Official Source apps.legislature.ky.gov/record/26RS/sb153....
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Sponsors
Greg Elkins (Sen - R) Jared Carpenter (Sen - R) Matthew Deneen (Sen - R) Rick Girdler (Sen - R) Amanda Mays Bledsoe (Sen - R) Robert Mills (Sen - R) Matt Nunn (Sen - R) Steve Rawlings (Sen - R) Aaron Reed (Sen - R) Brandon Storm (Sen - R) Reginald Thomas (Sen - D)
Action History
2026-04-08 S signed by Governor 2026-03-27 S delivered to Governor 2026-03-27 S enrolled, signed by Speaker of the House 2026-03-27 S enrolled, signed by President of the Senate 2026-03-27 S received in Senate 2026-03-26 H 3rd reading, passed 90-0 2026-03-24 H posted for passage in the Regular Orders of the Day for Wednesday, March 25 2026 2026-03-05 H 2nd reading, to Rules 2026-03-04 H reported favorably, 1st reading, to Calendar 2026-03-02 H to Banking & Insurance (H) 2026-02-13 H to Committee on Committees (H) 2026-02-13 H received in House 2026-02-12 S 3rd reading, passed 38-0 with Committee Substitute (1) 2026-02-11 S posted for passage in the Regular Orders of the Day for Thursday, February 12 2026 2026-02-11 S 2nd reading, to Rules 2026-02-10 S reported favorably, 1st reading, to Calendar with Committee Substitute (1) 2026-02-06 S to Banking & Insurance (S) 2026-02-02 S to Committee on Committees (S) 2026-02-02 S introduced in Senate
Votes
2026-02-12 Senate: Third Reading RSN# 3818 Yea: 38 Nay: 0 2026-03-26 House: Veto Override RCS# 338 Yea: 90 Nay: 0
Committee Referrals
2026-02-02 S Committee on Committees 2026-02-06 S Banking and Insurance 2026-02-11 S Rules 2026-02-13 H Committee On Committees 2026-03-02 H Banking and Insurance 2026-03-05 H Rules
Amendments
0000-00-00 Senate Committee Substitute 0000-00-00 Senate Committee Substitute 0000-00-00 Senate Committee Substitute
Bill Text Versions
0000-00-00 Introduced 0000-00-00 Engrossed
Subjects
Administrative Regulations and Proceedings Attorney General Consumer Protection Contracts Crimes and Punishments Disasters And Recovery Efforts Insurance Local Government Real Estate Trade Practices and Retailing Corrections Impact Local Mandate Legislative data powered by LegiScan (CC BY 4.0)
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