State agencies would set clear permit rules and deadlines

State agencies must state clear permit and license approval rules and decide covered applications within 60 days. These rules cover executive branch state agencies, except the Department of Kentucky State Police. The 60-day deadline applies when no law, regulation, or rule sets a decision timeline, or when the timeline is silent or unclear. An agency may extend the deadline by up to 30 days only if it gives a written reason within the first 60 days, states the added time needed, and shows a substantial, demonstrable need to protect public health, safety, or welfare. A late application counts as approved unless it is materially incomplete and the applicant fails to fix it after notice. These rules do not apply to certain federally governed permits when applying them would violate federal law or the terms of federal authority delegated to the agency. The Act would take effect January 1, 2027. The 60-day deadline applies when no clear decision timeline is set by law, regulation, or rule.

Applicants denied a license or permit may request an agency hearing, where the agency must prove its reason for denying the application. The agency must prove its reason in hearings involving a license or permit denial, or a denial of a request to modify a license or permit application. The hearing follows the state's administrative hearing rules or the rules that apply to that agency. A hearing officer may allow recorded testimony from a witness who cannot be subpoenaed or cannot attend. The Act would take effect January 1, 2027.

Applicants may seek court review of a final agency decision; if the applicant asks, the court must schedule a preliminary conference. This applies to applicants in state agency hearings involving a denied license or permit. Court review follows the rules that apply to that agency's final decisions. The conference may address scheduling and other matters related to the application. The Act would take effect January 1, 2027. If requested, the court must schedule the conference within 30 days after receiving the official record.