On March 27, 2025, Kentucky Senate passed Senate Bill 84, marking a new age for state agencies in Kentucky. This new law, drawing inspiration from the Supreme Court’s decision in Loper Bright Enterprises v. Raimondo, which overturned the Chevron Doctrine and ended judicial deference agency interpretations of statutes, fundamentally changes how Kentucky courts interact with state agencies, particularly in terms of interpreting laws and regulations. Loper, 603 U.S. 369 (2024), Chevron, 487 U.S. 837 (1984).
At its core, the new law introduces two new sections in the Kentucky Revised Statutes (KRS) and amended an existing provision establishing a de novo standard of review for agencies, including the Kentucky Department of Revenue. This de novo standard means the court will now look at the legal issues presented to them with fresh eyes. In simpler terms, the bill removes the automatic deference that courts once granted to state agencies’ interpretations of law. From now on, Kentucky courts will review agency decisions from scratch, meaning they are no longer bound by an agency’s interpretation of a statute or regulation unless it has a clear legal grounding. This new framework ensures that courts, not agencies, will now have the final say on legal interpretation in the state.
Moreover, by removing presumptive authority once granted to agencies, this law ensures that courts no longer have to automatically defer to an agency’s interpretation of the law. The playing field for judicial review is now leveled between state agencies and those challenging their decisions. What this means is that, rather than taking an agency’s word as final, a board’s position is now just one of many. This gives respondents the opportunity to challenge an agency’s legal reasoning directly. While this doesn’t guarantee a “win”, it does give respondents a better chance of securing a favorable outcome if they can persuade the court to overturn the agency’s decision.
As a result of these changes, agencies in the public sector will now need to adapt to new reporting standards and may even face internal restructuring. While these changes could streamline operations in the long run, they may also create initial challenges for agency leaders and employees as they adjust to the new legal landscape and prepare for more frequent legal challenges to their decisions.
This provides the potential for greater fairness, more frequent checks on the power of state agencies, and clearer legal outcomes. Whether you’re a business owner dealing with state regulations or an individual caught up in a legal dispute with a government agency, the new law gives courts more authority to interpret agency statutes and decisions. As a result of courts having more power to scrutinize decisions that are unsupported by evidence, or unreasonable, it’s important to seek experienced counsel in administrative and regulatory work. It can make all the difference between your legal dispute being resolved quickly or fighting government agencies indefinitely.
This law will certainly be one to watch, as it could set the stage for broader interpretation of agency statutes and regulations. The full effects of the law on public service and state agencies will unfold over the next few months as new regulations and reporting systems take their shape.
