Committee advances HB 555 to define and authorize student‑run enterprises in Kentucky schools
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House Bill 555, introduced by Rep. Michael Sarge Pollock and presented by Taylor County teacher Marcus Rogers, would define "student based enterprises" (SBEs) in statute, make participation opt‑in at the district level, and clarify that proceeds are handled by the school and primarily benefit students; the committee approved the bill and advanced it to the House floor.
Representative Michael Sarge Pollock, R‑51, introduced House Bill 555 and invited Marcus Rogers, a business teacher at Taylor County High School, to describe student-based enterprises (SBEs). Rogers told the committee that SBEs are not currently defined in state law and that HB 555 would "set the record straight" by defining SBEs as "a legitimate business inside of a school system that is ran and operated fully by the students, and for academic purposes." He said students earn class credit while gaining workplace skills and that SBEs at Taylor County include a Cardinal Kroger convenience store and a student-run coffee shop.
Rogers said SBEs raise funds that go back to students: "100% of them goes right back to the students," and he added that about half of the money raised goes to scholarships. He and Rep. Pollock told the committee the program is opt-in; local boards may establish policies governing operation and use of proceeds. Rogers also told members the program complies with Redbook bookkeeping rules and that students are not employees of the district; proceeds are administered through established school accounting and used for student scholarships, travel, and other student-directed expenses.
Committee members asked how a local school would establish an SBE, whether breakfast participation would decline if coffee were sold in the morning, and whether tax or licensing requirements applied. Rogers replied SBEs require coordination with the superintendent and food-service director, and cited Taylor County's experience showing breakfast participation rose after opening a morning coffee shop. Representative Tipton asked about tax implications and whether proceeds are considered salary; Rogers and Pollock said students are not hired employees and proceeds are used as scholarships and student awards rather than wages.
The committee moved the substitute and held a roll-call vote; the chair announced House Bill 555 passes with the committee sub attached and will proceed to the House floor.
The hearing did not specify statewide regulatory changes beyond defining SBEs and giving local boards authority to establish policies; the committee did not adopt a separate funding authorization for SBEs in the hearing.
