KY HB697

Prohibits commercial surrogacy in Kentucky, making it unlawful to operate, facilitate, advertise, broker, or arrange commercial surrogacy services, or to solicit Kentucky residents to participate in such arrangements

Permits altruistic surrogacy, defined as surrogacy without compensation; reimbursement for actual pregnancy-related expenses (hospital services, prenatal care, medical complications) is allowed and not considered "compensation"

Declares all commercial surrogacy contracts involving Kentucky residents void and unenforceable as against public policy, regardless of where the contract was executed

Establishes criminal penalties: Class D felony for first offense and Class C felony for subsequent offenses, plus civil penalties up to $10,000 per violation (each day of continuing violation counts as separate offense)

Corporations or organizations convicted of violations forfeit their charter or right to do business in Kentucky; Attorney General may initiate Circuit Court proceedings to enforce penalties and obtain injunctions