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AN ACT relating to the regulation of electronic gaming devices and making an 1
appropriation therefor. 2
Be it enacted by the General Assembly of the Commonwealth of Kentucky: 3
SECTION 1. KRS CHAPTER 239 IS ESTABLISHED AND A NEW 4
SECTION THEREOF IS CREATED TO READ AS FOLLOWS: 5
As used in this chapter, unless the context suggests otherwise: 6
(1) "Commission" means the Kentucky Gaming Commission established pursuant to 7
Section 2 of this Act; 8
(2) "Control" or "controlling" means having the direct or indirect ability to direct 9
the management and policies of another person, whether through a financial 10
interest, an ownership interest, or otherwise. The following individuals shall be 11
deemed to have control of an entity: 12
(a) Officers and directors; and 13
(b) The chairperson and members of the board, or the head and members of 14
any other body exercising authority and responsibility over an entity's 15
affairs; 16
(3) (a) "Electronic gaming device" means a computerized device that: 17
1. Employs a monitor that has a display screen, software programs, 18
graphics board, graphics card, or any other necessary components 19
that give the monitor graphics capabilities for displaying and 20
manipulating pictures, words, numbers, or symbols; 21
2. Has a storage medium containing the source language or executable 22
code of a computer program that has graphic capabilities for 23
displaying on a monitor; 24
3. Allows a person, by inserting currency, coins, tokens or other similar 25
objects into the machine, or by otherwise making some payment of 26
consideration to make the machine available for the person to play; 27 UNOFFICIAL COPY 23 RS BR 1119
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and 1
4. Allows a person playing the machine an opportunity to win: 2
a. Cash; 3
b. Play credits; 4
c. Tokens, tickets, vouchers; or 5
d. Other things that can be exchanged for cash or any other thing 6
of value; and 7
(b) "Electronic gaming device" does not include: 8
1. Any device approved and registered under the provisions of KRS 138. 9
510 to 138.550 and KRS Chapter 230; 10
2. Any device approved and registered by the Kentucky Lottery 11
Corporation under the provisions of KRS Chapter 154A; 12
3. Any device approved and registered under the provisions of KRS 13
Chapter 238; 14
4. Pin ball machines; 15
5. Automatic weighing, measuring, musical, and vending machines 16
which are designed and constructed to give a uniform and fair return 17
in value for each coin deposited and in which there is no element of 18
chance; 19
6. Crane or claw vending machines; and 20
7. Vending machines. 21
(c) A machine as described in paragraph (a) of this subsection is no less an 22
electronic gaming device because it is not in working order or because some 23
mechanical act of manipulation or repair is required to accomplish its 24
adaptation, conversion, or workability; 25
(4) "Local county government" means a county, charter county, consolidated local 26
government, unified local government, or urban-county government; 27 UNOFFICIAL COPY 23 RS BR 1119
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(5) "Location" means any establishment or place of business that possesses an 1
electronic gaming device for use on its premises; 2
(6) "Net proceeds" means the total amount wagered at each location less the total 3
amount of payout by location; 4
(7) "Operator" means a person engaged in the business of manufacturing, 5
designing, assembling, selling, leasing, or otherwise furnishing electronic gaming 6
devices, electronic computer components of such devices, and other gaming 7
supplies and equipment; 8
(8) "Truck stop" shall have the same meaning as KRS 281.767; and 9
(9) "Vending machine" means a mechanical or electronic device or receptacle 10
designed: 11
(a) To receive a coin, bill, token made for the purpose, or other form of 12
payment; and 13
(b) In return for the insertion or deposit thereof, automatically to offer, provide, 14
assist in providing, or permit the acquisition of property or service. 15
SECTION 2. A NEW SECTION OF KRS CHAPTER 239 IS CREATED TO 16
READ AS FOLLOWS: 17
(1) The Kentucky Gaming Commission is hereby created as an independent agency 18
of state government with the responsibility and authority to supervise and strictly 19
regulate all electronic gaming devices in the Commonwealth. The commission 20
shall be attached to the Public Protection Cabinet for administrative purposes. 21
(2) The commission shall consist of seven (7) members to be appointed by the 22
Governor and confirmed by the Senate as provided in KRS 11.160. Commission 23
members appointed during periods when the General Assembly is not in session 24
may assume the responsibilities of the position pending confirmation. 25
(3) The Governor shall designate one (1) member as chairperson, and the 26
commission shall elect one (1) of its members as a vice chairperson. 27 UNOFFICIAL COPY 23 RS BR 1119
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(4) Requirements for members of the commission shall be as follows: 1
(a) One (1) member shall be: 2
1. A certified public accountant licensed by the Commonwealth of 3
Kentucky or by another state or a public accountant qualified to 4
practice public accounting under the provisions of KRS Chapter 325; 5
and 6
2. Have at least five (5) years of progressively responsible experience in 7
general accounting and a comprehensive knowledge of the principles 8
and practices of corporate finance or possess the qualifications of an 9
expert in the fields of corporate finance, auditing, general finance, 10
gaming, or economics; 11
(b) One (1) member shall be selected based on his or her training and 12
experience in the fields of investigation, law enforcement, law, or gaming; 13
(c) Not more than five (5) members of the commission shall be registered 14
members of the same political party; 15
(d) Each member shall be a Kentucky resident at the time he or she is 16
appointed, shall have been a Kentucky resident for at least five (5) 17
consecutive years prior to his or her appointment, and shall remain a 18
Kentucky resident during his or her tenure as a member of the commission; 19
(e) To achieve regionally diverse representation, each congressional district 20
shall be represented; 21
(f) All persons appointed to the commission shall be of good moral character 22
and shall not have been convicted of, or under indictment for, a felony in 23
Kentucky, any other state, federal court, or foreign country; and 24
(g) No member of the commission, or any family member of a member of the 25
commission, at the time of appointment or during the member's tenure on 26
the commission, shall: 27 UNOFFICIAL COPY 23 RS BR 1119
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1. Be a member of the Kentucky General Assembly, a person holding any 1
elective office in the state government, or any officer or official of any 2
political party; or 3
2. Have any pecuniary or ownership interest in, engage in any loan or 4
credit transaction with, be employed by or hold a position with, or 5
have any ownership or managerial position in any business or 6
professional organization that provides goods or services to, engages 7
in line of credit transactions with, or otherwise does business with, any 8
licensee, or any other person engaging in a business relating to 9
gambling, the lottery, or any affiliate of any thereof. 10
(5) All commissioners appointed by the Governor shall serve a term of four (4) years 11
or until their successors are appointed and duly qualified. 12
(6) A commissioner shall not serve more than two (2) full terms, provided that a 13
commissioner that is appointed to an initial term of less than four (4) years may 14
serve two (2) full terms upon completion of the initial term. 15
(7) Commission vacancies shall be filled in accordance with the requirements 16
established in subsections (2) to (5) of this section. 17
(8) (a) The Governor may remove any commissioner for misfeasance, malfeasance, 18
or nonfeasance in office. 19
(b) The removal may be made after the member has had the opportunity for a 20
public hearing in accordance with KRS Chapter 13B, if requested. 21
(c) The member charged may request a public hearing. The request shall be in 22
writing and shall be submitted to the Governor's office within ten (10) days 23
of the service of charges upon the member. 24
(d) If a public hearing is timely requested, the hearing shall be held before a 25
hearing officer appointed by the Governor. The hearing officer shall make 26
findings of fact and conclusions of law based upon the record of the 27 UNOFFICIAL COPY 23 RS BR 1119
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hearing, and shall provide the Governor with a recommendation for action. 1
The Governor's final decision, after recommendation by the hearing officer, 2
may be appealed to the Franklin Circuit Court. 3
(9) Before assuming his or her duties, each commissioner shall: 4
(a) Take the constitutional oath of office, which shall be filed with the office of 5
the commission; 6
(b) Swear that he or she: 7
1. Has not been convicted of, and is not under indictment for, a felony in 8
Kentucky or in any other state, federal court, or a foreign country; 9
and 10
2. Is not actively engaged in, and does not own or hold a pecuniary 11
interest in any entity actively engaged in operating a gaming facility, 12
or supplying gaming supplies and equipment; and 13
(c) Agree in writing that he or she shall not be employed by, agree to be 14
employed by, or solicit employment from any gaming licensee, or any 15
person holding a license or permit issued pursuant to KRS Chapter 230 16
during his or her term as commissioner, and for a period of three (3) years 17
following the termination of his or her service as a member of the 18
commission. 19
SECTION 3. A NEW SECTION OF KRS CHAPTER 239 IS CREATED TO 20
READ AS FOLLOWS: 21
(1) The commission shall establish and maintain an office in Frankfort for the 22
transaction of its business and may: 23
(a) Establish one (1) or more branch offices; and 24
(b) Hold meetings at any of its offices or at any other place based upon 25
convenience to its members, staff, those it regulates, and the general public. 26
(2) A majority of the commission membership shall constitute a quorum for the 27 UNOFFICIAL COPY 23 RS BR 1119
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purpose of transacting business or exercising any of the powers delegated to the 1
commission under this chapter. 2
(3) A majority of the members present at any commission meeting at which a quorum 3
is present shall have the authority to act on behalf of the commission. 4
(4) All members shall be reimbursed for necessary travel and other reasonable 5
expenses incurred in the performance of their official duties. 6
(5) The commission shall hold at least one (1) meeting each month. 7
(a) The chairperson or a majority of the commission members may call a 8
special meeting; and 9
(b) A special meeting shall not be held earlier than seventy-two (72) hours 10
after written notice has been sent to each member. 11
(6) Commission records shall be open and subject to public inspection in accordance 12
with KRS 61.870 to 61.884 unless: 13
(a) A record is exempted from inspection under KRS 61.878; 14
(b) A record involves a trade secret or other legally protected intellectual 15
property or confidential proprietary information of the commission or of an 16
applicant, licensee, individual, or entity having submitted information of 17
such character to the commission, in which case, the portion of the record 18
relating to these subjects may be closed; or 19
(c) The disclosure of the record could impair or adversely affect the operational 20
security of the commission in the regulation of gaming facilities or could 21
impair or adversely impact the operational security of applicants or 22
licensees. 23
(7) Meetings of the commission shall be open to the public in accordance with KRS 24
61.800 to 61.850 unless the exceptions set forth in KRS 61.810 apply or the 25
meeting addresses trade secrets, confidential or proprietary information, or 26
operational security issues as described in (6)(c) of this section. In such a case, 27 UNOFFICIAL COPY 23 RS BR 1119
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the commission may meet in closed session and shall follow the procedures set 1
forth in KRS 61.815. 2
(8) Commission members shall be subject to all applicable provisions of KRS 3
Chapter 11A. 4
(9) The commission shall develop a process to ensure that all individuals seeking to 5
provide the commission with information relating to issues that will be discussed 6
at a public meeting have the means to do so. 7
(10) The Auditor of Public Accounts shall perform an annual audit of the 8
commission, a copy of which shall be sent to the Governor and the Interim Joint 9
Committee on Appropriations and Revenue. 10
(11) The commission shall submit a written annual report to the Governor and the 11
Interim Joint Committee on Appropriations and Revenue on or before July 1, 12
2024, and by July 1 of each year thereafter. The commission shall file any 13
additional reports requested by the Governor or the Interim Joint Committee on 14
Appropriations and Revenue. The annual report shall include the following 15
information: 16
(a) The receipts and disbursements of the commission; 17
(b) Actions taken by the commission; and 18
(c) Any additional information and recommendations that the commission 19
considers useful or that the Governor or the Legislative Research 20
Commission requests. 21
SECTION 4. A NEW SECTION OF KRS CHAPTER 239 IS CREATED TO 22
READ AS FOLLOWS: 23
(1) The commission shall promulgate administrative regulations pursuant to KRS 24
Chapter 13A to: 25
(a) Require annual audits, due by March 1, of the preceding fiscal year's 26
financial statements of all licensees regulated under this chapter; 27 UNOFFICIAL COPY 23 RS BR 1119
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(b) Establish minimum standards for gaming licensees relating to effective 1
fiscal protection and control. The standards shall include provisions 2
relating to: 3
1. The safeguarding of assets and revenues; 4
2. The recording of cash and evidences of indebtedness; 5
3. The establishment of reliable records, accounts, and reports of 6
transactions, operations, and events, including reports to the 7
commission; and 8
4. The conduct of internal audits by qualified internal auditors or by 9
certified public accountants; 10
(c) Require periodic financial reports from each licensee regulated under this 11
chapter. These administrative regulations shall: 12
1. Establish standard forms for the reporting of: 13
a. Financial condition; 14
b. Operational results; 15
c. Gross gaming receipts and adjusted gaming receipts; 16
d. The amount of prizes paid during specific reporting periods; and 17
e. Other relevant financial information that the commission may 18
require; and 19
2. Establish a uniform code of accounts and accounting classifications to 20
ensure consistency, comparability, and effective disclosure of financial 21
information; 22
(d) Require annual audits of the financial statements of all licensees regulated 23
under this chapter in accordance with the following: 24
1. Independent accountants shall submit an audit report which shall 25
express an unqualified or qualified opinion or, if appropriate, disclaim 26
an opinion on the statements taken as a whole in accordance with 27 UNOFFICIAL COPY 23 RS BR 1119
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standards for the accounting profession established by rules and 1
administrative regulations promulgated by the Kentucky State Board 2
of Accountancy, but the preparation of statements without audits shall 3
not constitute compliance; and 4
2. The examination and audit shall disclose whether the accounts, 5
records, and control procedures maintained by the gaming licensee 6
are in compliance with the requirements established by administrative 7
regulations promulgated by the commission; 8
(e) Define and limit: 9
1. The electronic gaming devices and gaming supplies and equipment 10
permitted for use in a location; and 11
2. The method of operation of these electronic gaming devices and 12
gaming supplies and equipment. 13
The electronic gaming devices and gambling supplies and equipment 14
permitted for a location shall be uniform for persons licensed under 15
this chapter; and 16
(f) Establish the application fee structure for the fee required in subsection (2) 17
(f) of Section 7 of this Act. 18
(2) Licensees shall maintain complete records required by this chapter during 19
the term of licensure and shall retain the records for five (5) years after the 20
surrender, nonrenewal, or other loss of licensure. 21
SECTION 5. A NEW SECTION OF KRS CHAPTER 239 IS CREATED TO 22
READ AS FOLLOWS: 23
(1) Commissioners shall not communicate ex parte or off-the-record with: 24
(a) Any applicant; 25
(b) Any affiliate of an applicant; 26
(c) Any person who has any direct or indirect interest in the outcome regarding 27 UNOFFICIAL COPY 23 RS BR 1119
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a pending application for a license; or 1
(d) The agent of any applicant, affiliate of an applicant, or person who has any 2
direct or indirect interest in the outcome regarding a pending application 3
for a license. 4
(2) If an ex parte or off-the-record communication occurs, the commissioner shall: 5
(a) Notify the chairperson of the occurrence in writing; and 6
(b) 1. Note the occurrence and place a copy of the communication in the 7
applicant's file if the communication was written; or 8
2. Create a memorandum of the substance of the communication if the 9
communication was oral and place it in the applicant's file. 10
(3) A commissioner receiving an ex parte or off-the-record communication may 11
voluntarily recuse himself or herself from any role in deciding the matter that is 12
the subject of the communication, and shall provide written notice of recusal to 13
the chairperson. 14
(4) Upon receipt of notice of an ex parte or off-the-record communication, the 15
chairperson may recommend recusal of the recipient, and this recusal shall be 16
affirmed by a majority of a quorum of the commission voting at a special or 17
regular meeting. In determining whether to recommend recusal of a 18
commissioner, the chairperson shall consider whether, based on the 19
circumstances surrounding the ex parte or off-the-record communication and the 20
recipient's conduct with respect to it, the recipient's further participation in the 21
decision-making process would diminish public confidence in the commission's 22
integrity and that of its processes and procedures. 23
(5) Initiation of ex parte or off-the-record communication by a commissioner may 24
constitute cause for removal from the commission. 25
(6) Initiation of ex parte or off-the-record communication for the purpose of 26
influencing a commissioner's decision with respect to any matter pending before 27 UNOFFICIAL COPY 23 RS BR 1119
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the commission by an: 1
(a) Applicant or licensee; 2
(b) Applicant or licensee's affiliates, owners, or persons who have control of the 3
applicant or licensee; or 4
(c) Agent of an applicant, licensee, or persons who have control of the 5
applicant or licensee; 6
may constitute cause for denial, suspension, revocation, or nonrenewal of a 7
license. 8
SECTION 6. A NEW SECTION OF KRS CHAPTER 239 IS CREATED TO 9
READ AS FOLLOWS: 10
(1) The Governor shall appoint an executive director who shall serve as the chief 11
executive officer of the commission. The executive director shall serve a term of 12
four (4) years and may be reappointed. 13
(2) The executive director and any member of the executive director's family, at the 14
time of appointment and during the time of service as executive director, shall 15
not: 16
(a) Be a member of the Kentucky General Assembly, a person holding any 17
elective office in the state government, or any officer or official of any 18
political party; or 19
(b) Have any pecuniary or ownership interest in, engage in any loan or credit 20
transaction with, be employed by or hold a position with, or have any 21
ownership or managerial position in any business or professional 22
organization that: 23
1. Provides goods or services to; 24
2. Engages in line of credit transactions with; or 25
3. Otherwise does business with; 26
any licensee or any other person engaged in a business relating to 27 UNOFFICIAL COPY 23 RS BR 1119
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gambling. 1
(3) The executive director shall: 2
(a) Be engaged full-time in fulfilling the duties imposed under this chapter and 3
in conducting the business of the commission and shall not pursue any 4
other business or occupation or hold any other office for profit; 5
(b) Be responsible for the management of the commission's affairs. The 6
executive director shall possess the powers and perform the duties assigned 7
to the executive director by this chapter and shall have other duties as the 8
commission directs; 9
(c) Hire employees necessary to carry out the functions of the commission. The 10
executive director shall fix the compensation of employees in accordance 11
with KRS Chapter 18A; and 12
(d) Serve as secretary of the commission and shall keep a full record of all 13
proceedings before the commission and shall preserve at the commission's 14
office all books, maps, documents, licenses, and other records of the 15
commission. 16
(4) The executive director and commission employees shall be reimbursed for actual 17
expenses incurred in the discharge of their official duties. 18
(5) The executive director and all employees of the commission shall be subject to all 19
applicable provisions of KRS Chapter 11A. 20
SECTION 7. A NEW SECTION OF KRS CHAPTER 239 IS CREATED TO 21
READ AS FOLLOWS: 22
(1) The commission shall begin processing applications for electronic gaming device 23
operator licenses no later than six (6) months after the effective date of this Act. 24
(2) An application for an operator's license shall include, at a minimum, the 25
following: 26
(a) The name, business address, and telephone number of: 27 UNOFFICIAL COPY 23 RS BR 1119
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1. The applicant; 1
2. Any attorney that may represent the applicant in matters before the 2
commission; 3
3. Any individual designated by the applicant as a contact person with 4
whom the commission shall communicate concerning the application; 5
and 6
4. Any individual who provides answers to questions set forth in the 7
application, makes statements in the application, or provides 8
documents or other information to be submitted to the commission in 9
connection with the application; 10
(b) The address of the applicant's principal place of business and all locations 11
at which the applicant plans to store, lease, rent, or otherwise use electronic 12
gaming devices; 13
(c) A description of the applicant's ownership structure and identification of 14
those who own, control, or are an affiliate of the applicant; 15
(d) A statement as to whether the applicant or those who own, control, or are 16
an affiliate of the applicant: 17
1. Possess or have possessed any license or other grant of authority in 18
Kentucky or any other state or foreign country regarding the 19
operation of a gaming facility, any gaming-related activity, or the 20
manufacture, design, assembling, selling, leasing, or otherwise 21
furnishing of gaming supplies and equipment; 22
2. Have had any license or other grant of authority referenced in 23
subparagraph 1. of this paragraph revoked, suspended, denied, or not 24
renewed, with a description of the reasons for loss of the license or 25
grant of authority; 26
3. Have been indicted for or convicted of a felony in Kentucky, any other 27 UNOFFICIAL COPY 23 RS BR 1119
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state, a federal court, or a foreign country. Documentation detailing 1
the charges, dates of the charges, the prosecuting authorities, 2
disposition of the charges, and sentencing shall be provided to the 3
commission; 4
4. Have been the subject of any voluntary or involuntary bankruptcy 5
proceeding; 6
5. Have been involved in a formal process to adjust, defer, suspend, or 7
resolve the payment of a debt; or 8
6. Have been served with a complaint or notice filed in a court or with 9
any government body concerning state, local, or federal tax 10
delinquency. 11
An applicant, owner, person in control, or affiliate of the applicant shall 12
supplement the application with any documentation or information 13
necessary to explain the circumstances addressed in subparagraphs 1. to 6. 14
of this paragraph, if applicable; 15
(e) A statement listing the names and titles of public officials or officers of any 16
unit of government in Kentucky and their family members who directly or 17
indirectly: 18
1. Have a financial or beneficial interest in; 19
2. Are the creditors of; 20
3. Hold a debt instrument issued by; 21
4. Have an interest in; or 22
5. Have a contractual or service relationship with; 23
the applicant if the pecuniary value of the relationship exceeds ten thousand 24
dollars ($10,000) or the interest constitutes at least five percent (5%) of the 25
total ownership; 26
(f) Payment of an application fee not to exceed one million dollars 27 UNOFFICIAL COPY 23 RS BR 1119
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($1,000,000); and 1
(g) Any additional information required by the commission to approve or deny 2
the application. 3
(2) All applicants for, or holders of, an operator's license shall report to the 4
commission any material change in information required to be submitted in an 5
application within thirty (30) days after becoming aware of the change. 6
(3) If the commission receives information relating to a licensee that, if known at the 7
time of application, would have disqualified the licensee from obtaining a license, 8
the commission shall initiate an investigation of the licensee and shall suspend or 9
revoke the licensee's license unless the commission determines that revocation or 10
suspension of the license is not warranted based upon the facts and 11
circumstances presented. 12
(4) The burden of proving qualification for an operator's license shall rest with the 13
applicant. 14
(5) Upon approval of the issuance of an operator's license from the commission, an 15
operator shall: 16
(a) Apply to the local county government to seek the approval to provide 17
electronic gaming devices at a proposed location; 18
(b) Obtain from the commission an identifying sticker for each electronic 19
gaming device that is on the premises of the approved location; 20
(c) Pay the commission the required fee to register each machine at the 21
approved location; and 22
(d) Renew the registration of each electronic gaming device annually with the 23
commission. 24
SECTION 8. A NEW SECTION OF KRS CHAPTER 239 IS CREATED TO 25
READ AS FOLLOWS: 26
(1) (a) The owner or manager of a location which offers electronic gaming devices 27 UNOFFICIAL COPY 23 RS BR 1119
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shall ensure that each electronic gaming device on its premises contains a 1
sticker issued by the state. 2
(b) The sticker affixed on each electronic gaming device shall contain the 3
license number of the operator that supplies the electronic gaming device 4
and the expiration date of the operator's license. 5
(2) A convenience store shall not possess more than six (6) electronic gaming devices 6
on its premises. 7
(3) A truck stop shall not possess more than twelve (12) electronic gaming devices on 8
its premises. 9
(4) A private club licensed under KRS Chapter 243 shall not possess more than six 10
(6) electronic gaming devices on its premises. 11
(5) Every token submitted by a customer to the location for a payout shall include 12
the: 13
(a) Address of the location; 14
(b) License number of the machine that issued the token; and 15
(c) Amount paid to the customer. 16
(6) Locations shall submit to the commission a monthly report that details the net 17
proceeds from each electronic gaming device on its premises. 18
SECTION 9. A NEW SECTION OF KRS CHAPTER 239 IS CREATED TO 19
READ AS FOLLOWS: 20
(1) A local county government may: 21
(a) Review applications of operator licensees who wish to supply electronic 22
gaming devices to locations within a given county; 23
(b) Approve the number of electronic gaming devices allowed in a location; and 24
(c) Limit the number of electronic gaming devices to: 25
1. Not more than six (6) electronic gaming devices on the premises of a 26
convenience store; 27 UNOFFICIAL COPY 23 RS BR 1119
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2. Not more than twelve (12) electronic gaming devices on the premises 1
of a truck stop; and 2
3. Not more than six (6) electronic gaming devices on the premises of a 3
private club licensed under KRS Chapter 243. 4
(2) The local county government shall: 5
(a) Enact ordinances regulating the place and number of locations that offer 6
electronic gaming devices that do not conflict with Sections 1 to 12 of this 7
Act, Sections 13 to 18 of this Act, or the commission's administrative 8
regulations; 9
(b) Prohibit the use of electronic gaming machines at locations within its 10
territory through the passage of an ordinance; or 11
(c) Direct that the question of prohibiting locations from operating electronic 12
gaming devices within its territory be submitted to the voters of its territory 13
at the next regular election. 14
SECTION 10. A NEW SECTION OF KRS CHAPTER 239 IS CREATED TO 15
READ AS FOLLOWS: 16
(1) A person under the age of twenty-one (21) years shall be prohibited from playing 17
electronic gaming devices at any location in the Commonwealth. 18
(2) A licensed operator shall not have private discussion or dealings with local 19
county government employees. 20
SECTION 11. A NEW SECTION OF KRS CHAPTER 239 IS CREATED TO 21
READ AS FOLLOWS: 22
(1) A person who knowingly or intentionally does any of the following shall be guilty 23
of a Class A misdemeanor: 24
(a) Makes a false statement on a license application; or 25
(b) Permits a person less than twenty-one (21) years of age to play an electronic 26
gaming machine at any location. 27 UNOFFICIAL COPY 23 RS BR 1119
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(2) A person who knowingly or intentionally does any of the following shall be guilty 1
of a Class D felony: 2
(a) Uses, or possesses with the intent to use, a device to assist in: 3
1. Projecting the outcome of an electronic gaming device; 4
2. Analyzing the probability of the occurrence of an event relating to an 5
electronic gaming device; or 6
3. Analyzing the strategy for playing or betting to be used in the 7
electronic gaming device, except as permitted by the commission. 8
(b) Manufactures, sells, or distributes any gaming supplies or equipment 9
intended to be used to violate this chapter; 10
(c) Claims, collects, takes, or attempts to claim, collect, or take, money or 11
anything of value in or from an electronic gaming device by cheating; 12
(d) Uses or possesses counterfeit chips or tokens used in an electronic gaming 13
device; 14
(e) Except for a licensee or an employee of a licensee acting in the course of 15
the employee's employment, possesses a key or device designed for: 16
1. Opening, entering, or affecting the operation of an electronic gaming 17
device, drop box, or an electronic or a mechanical device connected 18
with an electronic gaming device; or 19
2. Removing coins, tokens, chips, or other contents of an electronic 20
gaming device; or 21
(f) Possesses materials used to manufacture a slug or device intended to be 22
used in a manner that violates this section. 23
SECTION 12. A NEW SECTION OF KRS CHAPTER 239 IS CREATED TO 24
READ AS FOLLOWS: 25
An operator's license can be revoked or suspended for the following causes: 26
(1) Providing electronic gaming devices to an unapproved location; 27 UNOFFICIAL COPY 23 RS BR 1119
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(2) Failing to provide monthly reports to the commission as required in Section 4 of 1
this Act; and 2
(3) Failure of the operator to comply with the provisions of Section 18 of this Act. 3
SECTION 13. A NEW SECTION OF KRS CHAPTER 138 IS CREATED TO 4
READ AS FOLLOWS: 5
(1) All initial license fees paid by gaming licensees pursuant to Section 7 of this Act 6
shall be deposited into the general fund and shall not be expended except 7
pursuant to an appropriation by the General Assembly. 8
(2) (a) There is hereby established in the State Treasury a revolving account to be 9
known as the Kentucky gaming account. The account shall be administered 10
by the commission. Interest earned on any moneys in the account shall 11
accrue to the account. Notwithstanding KRS 45.229, any moneys remaining 12
in the account at the close of the fiscal year shall not lapse but shall be 13
carried forward into the succeeding fiscal year. 14
(b) The fund shall consist of moneys received from the tax imposed by Section 15
15 of this Act, any fees, fines, and monetary penalties collected by the 16
commission, state appropriations, gifts, grants and federal funds. 17
(c) The commission shall retain sufficient funds to support its administrative 18
operations, not to exceed five million dollars ($5,000,000) in each fiscal 19
year, which are hereby appropriated for that purpose. 20
(d) From the amounts deposited into the Kentucky gaming account which are 21
not retained by the commission for operating expenses, the commission 22
shall make monthly disbursements to the following, which are hereby 23
appropriated for that purpose: 24
1. Thirty-eight percent (38%) shall be distributed to the local sheriffs of 25
the counties in which the licensed machines are located. This 26
allocation shall be based proportionately on the tax dollars collected 27 UNOFFICIAL COPY 23 RS BR 1119
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by county to the total amount collected for all counties in the 1
preceding month; 2
2. Thirty-eight percent (38%) shall be distributed to the local county 3
governments of the counties in which the licensed machines are 4
located. This allocation shall be based proportionately on the tax 5
dollars collected by county to the total amount collected for all 6
counties in the preceding month; and 7
3. Twenty-four percent (24%) shall be distributed to the general fund as 8
the state's portion of the tax. 9
(e) Moneys deposited in the fund are hereby appropriated for the purposes set 10
forth in this section and shall not be appropriated or transferred by the 11
General Assembly for any other purposes. 12
SECTION 14. A NEW SECTION OF KRS CHAPTER 138 IS CREATED TO 13
READ AS FOLLOWS: 14
As used in Sections 14 to 18 of this Act, unless the context requires otherwise: 15
(1) "Electronic gaming device" has the same meaning as in Section 1 of this Act; 16
(2) "Local county government" has the same meaning as in Section 1 of this Act; 17
(3) "Location" has the same meaning as in Section 1 of this Act; 18
(4) "Net proceeds" has the same meaning as in Section 1 of this Act; and 19
(5) "Operator" has the same meaning as in Section 1 of this Act; 20
SECTION 15. A NEW SECTION OF KRS CHAPTER 138 IS CREATED TO 21
READ AS FOLLOWS: 22
(1) An excise tax is imposed on the operator of electronic gaming devices: 23
(a) At the rate of twenty-six (26%); and 24
(b) On the net proceeds made through an electronic gaming device located in 25
Kentucky. 26
(2) The tax imposed by this section shall be paid, collected, administered, and 27 UNOFFICIAL COPY 23 RS BR 1119
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distributed as provided in Sections 13 and 16 to 18 of this Act. 1
SECTION 16. A NEW SECTION OF KRS CHAPTER 138 IS CREATED TO 2
READ AS FOLLOWS: 3
(1) The department shall enforce the provisions of and collect the tax and penalties 4
imposed and other payments required by Sections 15 to 18 of this Act, and in 5
doing so it shall have the general powers and duties granted it in KRS Chapters 6
131 and 135, including the power to enforce, by an action in the Franklin Circuit 7
Court, the collection of the tax, penalties and other payments imposed or required 8
by Sections 15 to 18 of this Act. 9
(2) (a) The remittance of the taxes imposed by Section 15 of this Act shall be made 10
monthly to the department no later than the twentieth of the month 11
following the calendar month in which the net proceeds were collected, and 12
shall be accompanied by returns and reports as prescribed by the 13
department. 14
(b) All funds received by the department from the taxes imposed by Section 15 15
of this Act shall be paid into the State Treasury and shall be credited to the 16
Kentucky gaming account, established in Section 13 of this Act. 17
(c) Every electronic gaming device licensee shall keep its books and records in 18
such a manner that: 19
1. The amount wagered through each location and county can be 20
determined; 21
2. The print-outs, vouchers, or other records that reflect the amounts 22
wagered and the winnings paid out from the machine daily; and 23
3. In any other manner as the department may set forth by promulgating 24
administrative regulations in accordance with KRS Chapter 13A. 25
(d) The department shall, at all reasonable times, have access to all books, 26
records, adding machines, and all other electronic gaming device equipment 27 UNOFFICIAL COPY 23 RS BR 1119
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for the purpose of examining and checking the same and ascertaining 1
whether or not the proper amount or amounts due the state are being or 2
have been paid, regardless of whether such information is in the possession 3
of the operator licensee or the location of the electronic gaming device. 4
(e) All books and records of the electronic gaming device licensee required by 5
paragraph (c) of this subsection shall be open to inspection by the 6
department and the Kentucky Gaming Commission. 7
SECTION 17. A NEW SECTION OF KRS CHAPTER 138 IS CREATED TO 8
READ AS FOLLOWS: 9
Any person who violates any provision of Sections 14 to 18 of this Act shall be subject 10
to the uniform civil penalties imposed pursuant to KRS 131.180 and interest at the tax 11
interest rate as defined in KRS 131.010(6). 12
SECTION 18. A NEW SECTION OF KRS CHAPTER 138 IS CREATED TO 13
READ AS FOLLOWS: 14
In addition to all other penalties provided in Sections 15 to 17 of this Act when the 15
electronic gaming device operator is licensed under Section 7 of this Act, the license 16
may be suspended, revoked, or its renewal refused by the Kentucky Gaming 17
Commission upon the failure of the operator to comply with Sections 14 to 18 of this 18
Act and administrative regulations promulgated by the department. 19
Section 19. KRS 12.020 is amended to read as follows: 20
Departments, program cabinets and their departments, and the respective major 21
administrative bodies that they include are enumerated in this section. It is not intended 22
that this enumeration of administrative bodies be all-inclusive. Every authority, board, 23
bureau, interstate compact, commission, committee, conference, council, office, or any 24
other form of organization shall be included in or attached to the department or program 25
cabinet in which they are included or to which they are attached by statute or statutorily 26
authorized executive order; except in the case of the Personnel Board and where the 27 UNOFFICIAL COPY 23 RS BR 1119
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attached department or administrative body is headed by a constitutionally elected 1
officer, the attachment shall be solely for the purpose of dissemination of information and 2
coordination of activities and shall not include any authority over the functions, 3
personnel, funds, equipment, facilities, or records of the department or administrative 4
body. 5
I. Cabinet for General Government - Departments headed by elected officers: 6
(1) The Governor. 7
(2) Lieutenant Governor. 8
(3) Department of State. 9
(a) Secretary of State. 10
(b) Board of Elections. 11
(c) Registry of Election Finance. 12
(4) Department of Law. 13
(a) Attorney General. 14
(5) Department of the Treasury. 15
(a) Treasurer. 16
(6) Department of Agriculture. 17
(a) Commissioner of Agriculture. 18
(b) Agricultural Development Board. 19
(c) Kentucky Agricultural Finance Corporation. 20
(7) Auditor of Public Accounts. 21
II. Program cabinets headed by appointed officers: 22
(1) Justice and Public Safety Cabinet: 23
(a) Department of Kentucky State Police. 24
1. Office of Administrative Services. 25
a. Division of Operational Support. 26
b. Division of Management Services. 27 UNOFFICIAL COPY 23 RS BR 1119
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2. Office of Operations. 1
a. Division of West Troops. 2
b. Division of East Troops. 3
c. Division of Special Enforcement. 4
d. Division of Commercial Vehicle Enforcement. 5
3. Office of Technical Services. 6
a. Division of Forensic Sciences. 7
b. Division of Information Technology. 8
(b) Department of Criminal Justice Training. 9
(c) Department of Corrections. 10
(d) Department of Juvenile Justice. 11
(e) Office of the Secretary. 12
(f) Office of Drug Control Policy. 13
(g) Office of Legal Services. 14
(h) Office of the Kentucky State Medical Examiner. 15
(i) Parole Board. 16
(j) Kentucky State Corrections Commission. 17
(k) Office of Legislative and Intergovernmental Services. 18
(l) Office of Human Resource Management. 19
1. Division of Human Resource Administration. 20
2. Division of Employee Management. 21
(m) Department of Public Advocacy. 22
(n) Office of Communications. 23
1. Information Technology Services Division. 24
(o) Office of Financial Management Services. 25
1. Division of Financial Management. 26
(p) Grants Management Division. 27 UNOFFICIAL COPY 23 RS BR 1119
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(2) Energy and Environment Cabinet: 1
(a) Office of the Secretary. 2
1. Office of Legislative and Intergovernmental Affairs. 3
2. Office of Legal Services. 4
a. Legal Division I. 5
b. Legal Division II. 6
3. Office of Administrative Hearings. 7
4. Office of Communication. 8
5. Mine Safety Review Commission. 9
6. Office of Kentucky Nature Preserves. 10
7. Kentucky Public Service Commission. 11
(b) Department for Environmental Protection. 12
1. Office of the Commissioner. 13
2. Division for Air Quality. 14
3. Division of Water. 15
4. Division of Environmental Program Support. 16
5. Division of Waste Management. 17
6. Division of Enforcement. 18
7. Division of Compliance Assistance. 19
(c) Department for Natural Resources. 20
1. Office of the Commissioner. 21
2. Division of Mine Permits. 22
3. Division of Mine Reclamation and Enforcement. 23
4. Division of Abandoned Mine Lands. 24
5. Division of Oil and Gas. 25
6. Division of Mine Safety. 26
7. Division of Forestry. 27 UNOFFICIAL COPY 23 RS BR 1119
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8. Division of Conservation. 1
9. Office of the Reclamation Guaranty Fund. 2
(d) Office of Energy Policy. 3
1. Division of Energy Assistance. 4
(e) Office of Administrative Services. 5
1. Division of Human Resources Management. 6
2. Division of Financial Management. 7
3. Division of Information Services. 8
(3) Public Protection Cabinet. 9
(a) Office of the Secretary. 10
1. Office of Communications and Public Outreach. 11
2. Office of Legal Services. 12
a. Insurance Legal Division. 13
b. Charitable Gaming Legal Division. 14
c. Alcoholic Beverage Control Legal Division. 15
d. Housing, Buildings and Construction Legal Division. 16
e. Financial Institutions Legal Division. 17
f. Professional Licensing Legal Division. 18
3. Office of Administrative Hearings. 19
4. Office of Administrative Services. 20
a. Division of Human Resources. 21
b. Division of Fiscal Responsibility. 22
(b) Office of Claims and Appeals. 23
1. Board of Tax Appeals. 24
2. Board of Claims. 25
3. Crime Victims Compensation Board. 26
(c) Kentucky Boxing and Wrestling Commission. 27 UNOFFICIAL COPY 23 RS BR 1119
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(d) Kentucky Horse Racing Commission. 1
1. Office of Executive Director. 2
a. Division of Pari-mutuel Wagering and Compliance. 3
b. Division of Stewards. 4
c. Division of Licensing. 5
d. Division of Enforcement. 6
e. Division of Incentives and Development. 7
f. Division of Veterinary Services. 8
(e) Department of Alcoholic Beverage Control. 9
1. Division of Distilled Spirits. 10
2. Division of Malt Beverages. 11
3. Division of Enforcement. 12
(f) Department of Charitable Gaming. 13
1. Division of Licensing and Compliance. 14
2. Division of Enforcement. 15
(g) Department of Financial Institutions. 16
1. Division of Depository Institutions. 17
2. Division of Non-Depository Institutions. 18
3. Division of Securities. 19
(h) Department of Housing, Buildings and Construction. 20
1. Division of Fire Prevention. 21
2. Division of Plumbing. 22
3. Division of Heating, Ventilation, and Air Conditioning. 23
4. Division of Building Code Enforcement. 24
(i) Department of Insurance. 25
1. Division of Health and Life Insurance and Managed Care. 26
2. Division of Property and Casualty Insurance. 27 UNOFFICIAL COPY 23 RS BR 1119
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3. Division of Administrative Services. 1
4. Division of Financial Standards and Examination. 2
5. Division of Licensing. 3
6. Division of Insurance Fraud Investigation. 4
7. Division of Consumer Protection. 5
(j) Department of Professional Licensing. 6
1. Real Estate Authority. 7
(k) Kentucky Gaming Commission. 8
(4) Transportation Cabinet: 9
(a) Department of Highways. 10
1. Office of Project Development. 11
2. Office of Project Delivery and Preservation. 12
3. Office of Highway Safety. 13
4. Highway District Offices One through Twelve. 14
(b) Department of Vehicle Regulation. 15
(c) Department of Aviation. 16
(d) Department of Rural and Municipal Aid. 17
1. Office of Local Programs. 18
2. Office of Rural and Secondary Roads. 19
(e) Office of the Secretary. 20
1. Office of Public Affairs. 21
2. Office for Civil Rights and Small Business Development. 22
3. Office of Budget and Fiscal Management. 23
4. Office of Inspector General. 24
5. Secretary's Office of Safety. 25
(f) Office of Support Services. 26
(g) Office of Transportation Delivery. 27 UNOFFICIAL COPY 23 RS BR 1119
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(h) Office of Audits. 1
(i) Office of Human Resource Management. 2
(j) Office of Information Technology. 3
(k) Office of Legal Services. 4
(5) Cabinet for Economic Development: 5
(a) Office of the Secretary. 6
1. Office of Legal Services. 7
2. Department for Business Development. 8
3. Department for Financial Services. 9
a. Kentucky Economic Development Finance Authority. 10
b. Finance and Personnel Division. 11
c. IT and Resource Management Division. 12
d. Compliance Division. 13
e. Incentive Administration Division. 14
f. Bluegrass State Skills Corporation. 15
4. Office of Marketing and Public Affairs. 16
a. Communications Division. 17
b. Graphics Design Division. 18
5. Office of Workforce, Community Development, and Research. 19
6. Office of Entrepreneurship and Small Business Innovation. 20
a. Commission on Small Business Innovation and Advocacy. 21
(6) Cabinet for Health and Family Services: 22
(a) Office of the Secretary. 23
1. Office of the Ombudsman and Administrative Review. 24
2. Office of Public Affairs. 25
3. Office of Legal Services. 26
4. Office of Inspector General. 27 UNOFFICIAL COPY 23 RS BR 1119
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5. Office of Human Resource Management. 1
6. Office of Finance and Budget. 2
7. Office of Legislative and Regulatory Affairs. 3
8. Office of Administrative Services. 4
9. Office of Application Technology Services. 5
10. Office of Data Analytics. 6
(b) Department for Public Health. 7
(c) Department for Medicaid Services. 8
(d) Department for Behavioral Health, Developmental and Intellectual 9
Disabilities. 10
(e) Department for Aging and Independent Living. 11
(f) Department for Community Based Services. 12
(g) Department for Income Support. 13
(h) Department for Family Resource Centers and Volunteer Services. 14
(i) Office for Children with Special Health Care Needs. 15
(7) Finance and Administration Cabinet: 16
(a) Office of the Secretary. 17
(b) Office of the Inspector General. 18
(c) Office of Legislative and Intergovernmental Affairs. 19
(d) Office of General Counsel. 20
(e) Office of the Controller. 21
(f) Office of Administrative Services. 22
(g) Office of Policy and Audit. 23
(h) Department for Facilities and Support Services. 24
(i) Department of Revenue. 25
(j) Commonwealth Office of Technology. 26
(k) State Property and Buildings Commission. 27 UNOFFICIAL COPY 23 RS BR 1119
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(l) Office of Equal Employment Opportunity and Contract Compliance. 1
(m) Kentucky Employees Retirement Systems. 2
(n) Commonwealth Credit Union. 3
(o) State Investment Commission. 4
(p) Kentucky Housing Corporation. 5
(q) Kentucky Local Correctional Facilities Construction Authority. 6
(r) Kentucky Turnpike Authority. 7
(s) Historic Properties Advisory Commission. 8
(t) Kentucky Higher Education Assistance Authority. 9
(u) Kentucky River Authority. 10
(v) Kentucky Teachers' Retirement System Board of Trustees. 11
(w) Executive Branch Ethics Commission. 12
(x) Office of Fleet Management. 13
(8) Tourism, Arts and Heritage Cabinet: 14
(a) Kentucky Department of Tourism. 15
1. Division of Tourism Services. 16
2. Division of Marketing and Administration. 17
3. Division of Communications and Promotions. 18
(b) Kentucky Department of Parks. 19
1. Division of Information Technology. 20
2. Division of Human Resources. 21
3. Division of Financial Operations. 22
4. Division of Purchasing. 23
5. Division of Facilities. 24
6. Division of Park Operations. 25
7. Division of Sales, Marketing, and Customer Service. 26
8. Division of Engagement. 27 UNOFFICIAL COPY 23 RS BR 1119
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9. Division of Food Services. 1
10. Division of Rangers. 2
(c) Department of Fish and Wildlife Resources. 3
1. Division of Law Enforcement. 4
2. Division of Administrative Services. 5
3. Division of Engineering, Infrastructure, and Technology. 6
4. Division of Fisheries. 7
5. Division of Information and Education. 8
6. Division of Wildlife. 9
7. Division of Marketing. 10
(d) Kentucky Horse Park. 11
1. Division of Support Services. 12
2. Division of Buildings and Grounds. 13
3. Division of Operational Services. 14
(e) Kentucky State Fair Board. 15
1. Office of Administrative and Information Technology Services. 16
2. Office of Human Resources and Access Control. 17
3. Division of Expositions. 18
4. Division of Kentucky Exposition Center Operations. 19
5. Division of Kentucky International Convention Center. 20
6. Division of Public Relations and Media. 21
7. Division of Venue Services. 22
8. Division of Personnel Management and Staff Development. 23
9. Division of Sales. 24
10. Division of Security and Traffic Control. 25
11. Division of Information Technology. 26
12. Division of the Louisville Arena. 27 UNOFFICIAL COPY 23 RS BR 1119
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13. Division of Fiscal and Contract Management. 1
14. Division of Access Control. 2
(f) Office of the Secretary. 3
1. Office of Finance. 4
2. Office of Government Relations and Administration. 5
(g) Office of Legal Affairs. 6
(h) Office of Human Resources. 7
(i) Office of Public Affairs and Constituent Services. 8
(j) Office of Arts and Cultural Heritage. 9
(k) Kentucky African-American Heritage Commission. 10
(l) Kentucky Foundation for the Arts. 11
(m) Kentucky Humanities Council. 12
(n) Kentucky Heritage Council. 13
(o) Kentucky Arts Council. 14
(p) Kentucky Historical Society. 15
1. Division of Museums. 16
2. Division of Oral History and Educational Outreach. 17
3. Division of Research and Publications. 18
4. Division of Administration. 19
(q) Kentucky Center for the Arts. 20
1. Division of Governor's School for the Arts. 21
(r) Kentucky Artisans Center at Berea. 22
(s) Northern Kentucky Convention Center. 23
(t) Eastern Kentucky Exposition Center. 24
(9) Personnel Cabinet: 25
(a) Office of the Secretary. 26
(b) Department of Human Resources Administration. 27 UNOFFICIAL COPY 23 RS BR 1119
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(c) Office of Employee Relations. 1
(d) Kentucky Public Employees Deferred Compensation Authority. 2
(e) Office of Administrative Services. 3
(f) Office of Legal Services. 4
(g) Governmental Services Center. 5
(h) Department of Employee Insurance. 6
(i) Office of Diversity, Equality, and Training. 7
(j) Office of Public Affairs. 8
(10) Education and Labor Cabinet: 9
(a) Office of the Secretary. 10
1. Office of Legal Services. 11
a. Workplace Standards Legal Division. 12
b. Workers' Claims Legal Division. 13
c. Workforce Development Legal Division. 14
2. Office of Administrative Services. 15
a. Division of Human Resources Management. 16
b. Division of Fiscal Management. 17
c. Division of Operations and Support Services. 18
3. Office of Technology Services. 19
a. Division of Information Technology Services. 20
4. Office of Policy and Audit. 21
5. Office of Legislative Services. 22
6. Office of Communications. 23
7. Office of the Kentucky Center for Statistics. 24
8. Board of the Kentucky Center for Statistics. 25
9. Early Childhood Advisory Council. 26
10. Governors' Scholars Program. 27 UNOFFICIAL COPY 23 RS BR 1119
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11. Governor's School for Entrepreneurs Program. 1
12. Foundation for Adult Education. 2
(b) Department of Education. 3
1. Kentucky Board of Education. 4
2. Kentucky Technical Education Personnel Board. 5
3. Education Professional Standards Board. 6
(c) Board of Directors for the Center for School Safety. 7
(d) Department for Libraries and Archives. 8
(e) Kentucky Environmental Education Council. 9
(f) Kentucky Educational Television. 10
(g) Kentucky Commission on the Deaf and Hard of Hearing. 11
(h) Department of Workforce Development. 12
1. Career Development Office. 13
2. Office of Vocational Rehabilitation. 14
a. Division of Kentucky Business Enterprise. 15
b. Division of the Carl D. Perkins Vocational Training Center. 16
c. Division of Blind Services. 17
d. Division of Field Services. 18
e. Statewide Council for Vocational Rehabilitation. 19
f. Employment First Council. 20
3. Office of Employer and Apprenticeship Services. 21
a. Division of Apprenticeship. 22
4. Kentucky Apprenticeship Council. 23
5. Division of Technical Assistance. 24
6. Office of Adult Education. 25
7. Office of the Kentucky Workforce Innovation Board. 26
(i) Department of Workplace Standards. 27 UNOFFICIAL COPY 23 RS BR 1119
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1. Division of Occupational Safety and Health Compliance. 1
2. Division of Occupational Safety and Health Education and 2
Training. 3
3. Division of Wages and Hours. 4
(j) Office of Unemployment Insurance. 5
(k) Kentucky Unemployment Insurance Commission. 6
(l) Department of Workers' Claims. 7
1. Division of Workers' Compensation Funds. 8
2. Office of Administrative Law Judges. 9
3. Division of Claims Processing. 10
4. Division of Security and Compliance. 11
5. Division of Specialist and Medical Services. 12
6. Workers' Compensation Board. 13
(m) Workers' Compensation Funding Commission. 14
(n) Kentucky Occupational Safety and Health Standards Board. 15
(o) State Labor Relations Board. 16
(p) Employers' Mutual Insurance Authority. 17
(q) Kentucky Occupational Safety and Health Review Commission. 18
(r) Workers' Compensation Nominating Committee. 19
(s) Office of Educational Programs. 20
(t) Kentucky Workforce Innovation Board. 21
(u) Kentucky Commission on Proprietary Education. 22
(v) Kentucky Work Ready Skills Advisory Committee. 23
(w) Kentucky Geographic Education Board. 24
III. Other departments headed by appointed officers: 25
(1) Council on Postsecondary Education. 26
(2) Department of Military Affairs. 27 UNOFFICIAL COPY 23 RS BR 1119
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(3) Department for Local Government. 1
(4) Kentucky Commission on Human Rights. 2
(5) Kentucky Commission on Women. 3
(6) Department of Veterans' Affairs. 4
(7) Kentucky Commission on Military Affairs. 5
(8) Office of Minority Empowerment. 6
(9) Governor's Council on Wellness and Physical Activity. 7
(10) Kentucky Communications Network Authority. 8
Section 20. KRS 243.500 is amended to read as follows: 9
Any license may be revoked or suspended for the following causes: 10
(1) Conviction of the licensee or the licensee's agent, servant, or employee for selling 11
any illegal alcoholic beverages on the licensed premises. 12
(2) Making any false, material statements in an application or renewal application for a 13
license or supplemental license. 14
(3) Conviction of the licensee or any of the licensee's agents, servants, or employees of: 15
(a) Two (2) violations of the terms and provisions of KRS Chapters 241 to 244, 16
or any act regulating the manufacture, sale, and transportation of alcoholic 17
beverages within two (2) consecutive years; 18
(b) Two (2) misdemeanors directly or indirectly attributable to the use of 19
alcoholic beverages within two (2 ) consecutive years; or 20
(c) Any felony. 21
(4) Failure or default of a licensee to pay an excise tax or any part of the tax or any 22
penalties imposed by or under the provisions of any statutes, ordinances, or Acts of 23
Congress relative to taxation, or for a violation of any related administrative 24
regulations promulgated by the Department of Revenue. 25
(5) Revocation of any license or permit provided in KRS 243.060, 243.070, 243.600, 26
and 243.610, or granted under any Act of Congress relative to the regulation of the 27 UNOFFICIAL COPY 23 RS BR 1119
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manufacture, sale, and transportation of alcoholic beverages. 1
(6) Setting up, conducting, operating, or keeping, on the licensed premises, any 2
gambling game, device, machine, contrivance, lottery, gift enterprise, handbook, or 3
facility for betting or transmitting bets on horse races; or permitting to be set up, 4
conducted, operated, kept, or engaged in, on the licensed premises, any gambling 5
game, device, machine, contrivance, lottery, gift enterprise, handbook, or facility. 6
This subsection shall not apply to: 7
(a) The sale of lottery tickets sold under the provisions of KRS Chapter 154A; 8
(b) The operation of a pari-mutuel system for betting, where authorized by law; 9
(c) The conduct of charitable gaming by a charitable organization licensed or 10
permitted under KRS Chapter 238;[ or] 11
(d) Special temporary raffles of alcoholic beverages under KRS 243.036 or 12
(e) Licensees regulated under Sections 1 to 12 of this Act and Sections 13 to 18 13
of this Act. 14
(7) Conviction of the licensee, the licensee's agents, servants, or employees for: 15
(a) The trafficking or possession upon the licensed premises of controlled or 16
illegal substances described in KRS Chapter 218A, including synthetic drugs; 17
(b) Knowingly permitting the trafficking or possession by patrons upon the 18
licensed premises of controlled or illegal substances described in KRS 19
Chapter 218A, including synthetic drugs; or 20
(c) Knowingly receiving stolen property upon the licensed premises. 21
(8) Failure to comply with the terms of a final order of the board. 22
Section 21. For initial commission appointments to the Kentucky Gaming 23
Commission: 24
(a) One (1) member shall be appointed for a one (1) year term; 25
(b) Two (2) members shall be appointed for two (2) year terms; 26
(c) Two (2) members shall be appointed for three (3) year terms; and 27 UNOFFICIAL COPY 23 RS BR 1119
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(d) Two (2) members shall be appointed for a four (4) year term. 1