Senator Greg Elkins, a Republican from Winchester, serves Bath, Clark, Montgomery, Menifee, and a portion of eastern Fayette County. 

A new bill introduced by the senator will soon go into effect. 

According to a press release from the Commonwealth of Kentucky Senate Majority Caucus, Senate Bill 76 (SB 76) not only passed, but did so unanimously and with bipartisan support. 

The bill, as noted in the release, is “a significant legislative measure…to modernize escrow retainage requirements in the construction industry.”

Senator Elkins reflected on its passage. 

“This unanimous vote underscores the Senate’s commitment to ensuring fairness and financial stability in Kentucky’s construction industry,” he said. “By updating outdated thresholds and reinforcing payment protections, SB 76 creates a more equitable and transparent process for contractors.” 

Specifically, SB 76 provides updates of Kentucky’s escrowed retainage requirements for construction contracts. 

As a result, this ensures greater financial security for contractors that are involved with real estate improvement projects. 

Decades ago, the contract threshold for escrowed retainage was set at $500,000. 

The passed legislation raises that threshold to $2,000,000.

In a separate press release, during which he provided several legislative updates, Elkins spoke further. 

“It ensures timely payments by requiring retained funds in qualifying contracts to be held in escrow,” he said, noting that the new threshold is in line with current project costs. “This bill is a significant step forward in promoting fairness, stability, and transparency in Kentucky’s construction industry.” 

SB 76 now moves to the House for further consideration. 

Those who wish to learn about additional updates on SB 76 and other legislative measures can do so at Legislature.ky.gov.