HB 904 — AN ACT relating to gaming.

Nine and three-quarters percent (9.75%) on the adjusted gross fixed-fixed-odds odds wagering revenue of fixed-odds wagers on live horse racing placed at the licensed track;

(4)[(3)] The department shall enforce the provisions of and collect the taxes and penalties imposed in this section, and in doing so it shall have the general powers and duties granted it in KRS Chapters 131 and 135, CHAPTER 184 13 including the power to enforce, by an action in the Franklin Circuit Court, the collection of the taxes, penalties, and other payments imposed or required by this section.

If a taxpayer's adjusted gross revenue for a month is a negative number, the Page 26 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO taxpayer may carry over the negative amount to the return filed for the subsequent month.

(9)[(8)] The Kentucky Horse Racing and Gaming Corporation may suspend, revoke, or decline to renew a license upon the taxpayer's failure to timely submit payment of taxes due under this section or the administrative regulations promulgated by the Page 27 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO department.

PageLegislative 28Research ofCommission 150PDF HB090490.100Version -ACTS 463OF -THE XXXXGENERAL 4/14/2026ASSEMBLY 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (e) Further, it is hereby declared the policy and intent of the Commonwealth that charitable gaming conducted by charitable organizations is an important method of raising funds for legitimate charitable purposes and is in the public interest.

(b) In addition, it is hereby declared the purpose and intent of this chapter to vest Page 29 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO in the corporation exclusive jurisdiction over sports wagering, fantasy contests, and fixed-odds wagering in the Commonwealth, with power to promulgate administrative regulations prescribing conditions under which all sports wagering, fantasy contests, and fixed-odds wagering are[ is] to be conducted.

(1) There is hereby created and established the Kentucky Horse Racing and Gaming Corporation to regulate all forms of live horse racing, pari-mutuel wagering, sports wagering, fantasy contests, fixed-odds wagering, breed integrity and development, Page 30 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO and on and after July 1, 2025, charitable gaming, in the Commonwealth, exclusive of the state lottery established under KRS Chapter 154A.

A different auditing entity that is qualified to evaluate municipal corporations shall conduct an annual audit of the corporation once each year in every year when the Auditor of Public CHAPTER 184 15 Accounts does not perform an audit.

(b) The corporation shall submit a written annual report to the Governor and the Legislative Research Commission on or before October[July] 1 of each year.[ The first report shall be due July 1, 2025.] The corporation shall file any additional reports requested by the Governor or the Legislative Research Page 31 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO Commission.

(b) Developing programs and procedures that will fulfill its oversight and Page 32 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO regulatory role on such matters as medical practices and integrity issues;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (j) Developing programs and procedures that will fulfill its oversight and regulatory role to ensure the highest integrity in charitable gaming;

and Page 33 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (m)[(l)] Ensuring that the correct responsibilities are assigned to each of its offices as established in KRS 230.232.

Page 34 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (a) A record is exempted from inspection under KRS 61.878;

(b) After the transfer to the corporation of any funds appropriated in fiscal year 2024-2025 and fiscal year 2025-2026 for the administration of this chapter and KRS Chapter 238, the corporation shall be self-sustainingself- sustaining and self-funded and moneys in the state general fund shall not be used or obligated to pay the Page 35 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO expenses of the corporation.

CHAPTER 184 17 (a) The Kentucky Horse Racing and Gaming Corporation shall assume all responsibilities of the Kentucky Horse Racing Commission;

or Page 36 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (d) Exercise jurisdiction over matters within the exclusive national authority of entities designated by the laws of the United States of America.

A chair or vice chair appointed when the Senate is not in session shall serve only until the next regular session, or Page 37 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO special session if such matter is included in the call therefor of the General Assembly, at which time the chair or vice chair shall be subject to confirmation by the Senate.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (c) Members of the board appointed by the Governor shall serve a term of four (4) years unless a member is removed, except the initial appointments under subsection (6)(c) of this section shall be as follows:

and (b) In making appointments, the Governor shall appoint members who meet the Page 38 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO following qualifications:

Use the member's official position or office to obtain financial gain for Page 39 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO himself or herself, or any spouse, parent, brother, sister, or child of the director;

CHAPTER 184 19 (c) A director shall abstain from action on an official decision in which he or she has or may have a personal or private interest, and shall disclose the existence of that personal or private interest in writing to each other member of the board on the same day on which the director becomes aware that the interest exists or that an official decision may be under consideration by the board.

The need for the director's particular contribution, such as special Page 40 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO knowledge of the subject matter, to the effective functioning of the corporation;

A director's Page 41 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO involvement in an official decision or other action of the corporation impacting a broad class of persons or entities, and affecting the director to no greater extent generally than the members of the class, shall not prohibit the director's employment or engagement as a member of the class for any period after service as a director.

(c) Determine whether to recommend administrative regulations to carry out and implement its powers and duties, the operation of the corporation, the conduct of live horse racing, pari-mutuel wagering, sports Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY wagering, fantasy contests, fixed-odds wagering, breed integrity and development, and on and after July 1, 2025, charitable gaming, and any other matters necessary or desirable for the efficient and effective operation of the corporation or convenience of the public;

Page 42 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO and 3.

(c) Before entering upon the discharge of their duties, all members of the board of directors of the Kentucky Horse Racing and Gaming Corporation shall take Page 43 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO the constitutional oath of office.

and CHAPTER 184 21 (d) Any fee charged by the Department of Kentucky State Police or the Federal Bureau of Investigation shall be an amount no greater than the actual cost of processing the request and conducting the background check.

Page 44 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (10) (a) The Governor may remove any board member for misfeasance, malfeasance, or nonfeasance in office.

Page 45 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (b) Live horse racing;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY The corporation shall have all powers necessary and proper to carry out and effectuate the purposes and provisions of this chapter on and after July 1, 2024, and the purposes and provisions of KRS Chapter 238 on and after July 1, 2025, including but not limited to the following:

Page 46 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (1) The corporation is vested with jurisdiction and supervision over all live horse racing, pari-mutuel wagering, sports wagering, fantasy contests, fixed-odds wagering, breed integrity and development, and on and after July 1, 2025, charitable gaming, except for lottery games authorized under KRS Chapter 154A, in this Commonwealth and over all associations and all persons on association grounds and may eject or exclude therefrom or any part thereof, any person, licensed or unlicensed, whose conduct or reputation is such that the person's presence on association grounds may, in the opinion of the corporation, negatively reflect on the honesty and integrity of horse racing, or on sporting events upon which sports wagers may be placed, or interfere with the orderly conduct of horse racing or racing at horse race meetings, but no persons shall be excluded or ejected from association grounds solely on the ground of race, color, creed, national origin, ancestry, or sex;

Page 47 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO A totalizator company under the jurisdiction of the corporation shall be licensed by the corporation, regardless of whether a totalizator company is located in the Commonwealth or operates from a location or locations outside of the Commonwealth, and the corporation may impose a license fee on a totalizator company.

(4) The corporation is vested with jurisdiction over any manufacturer, wholesaler, distributor, or vendor of any equine drug, medication, therapeutic substance, or metabolic derivative which is purchased by or delivered to a licensee or other person participating in Kentucky horse racing by means of the internet, mail delivery, in-personin- person delivery, or other means;

Page 48 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (9) Applications for licenses may be made in the form and manner and contain information as required by the corporation through the promulgation of administrative regulations.

CHAPTER 184 23 (11) The corporation may refuse to issue or renew a license, revoke or suspend a license, impose probationary conditions on a license, issue a written reprimand or admonishment, impose fines or penalties, deny purse money, require the forfeiture of purse money, or any combination thereof with regard to a licensee or other person participating in Kentucky horse racing for violation of any federal or state statute, regulation, or steward's or corporation's directive, ruling, or order to preserve the integrity of Kentucky horse racing or to protect the racing public.

(13) The corporation shall have authority to compel any racing association licensed under this chapter to file with the corporation at the end of its fiscal year, a balance sheet, showing assets and liabilities, and an earnings statement, together with a list Page 49 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO of its stockholders or other persons holding a beneficial interest in the association;

Page 50 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (b) The corporation may promulgate administrative regulations related to age requirements for placing sports wagers, availability of information related to sports wagers, and licensing requirements, including temporary authorizations, for service providers, vendors, and suppliers;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (b) The administrative regulations of the Kentucky Horse Racing Commission that are in effect on July 1, 2024, shall remain in effect as the initial administrative regulations of the corporation until the corporation amends or repeals the administrative regulations pursuant to KRS Chapter 13A, except as provided by KRS 13A.3102, 13A.3104, and 13A.330.

Page 51 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (1) Any person desiring to conduct horse racing at a horse race meeting within the Commonwealth of Kentucky or to engage in simulcasting and intertrack wagering as a receiving track during any calendar year shall first apply to the corporation for a license to do so.

and (h) Any other information that the corporation by administrative regulation deems relevant and necessary to determine the fitness of the applicant to receive a license, including fingerprints of any individual listed under paragraphs (a) Page 52 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO and (e), if necessary for proper identification of the individual or a determination of suitability to be associated with a licensed racing association.

CHAPTER 184 25 (3) The completed application shall be signed by the applicant or the chief executive officer if the applicant is an organization, sworn under oath that the information is true, accurate, and complete, and the application shall be notarized.

(4) If there is any change in any information submitted in the application process, the Page 53 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO applicant or licensee shall notify the corporation within thirty (30) days of the change.

(7) As a condition precedent to the issuance of a license, the corporation may require a surety bond or other surety conditioned upon the payment of all taxes due the Page 54 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO Commonwealth, together with the payment of operating expenses including purses and awards to owners of horses participating in races.

Page 55 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (12) Horse racing dates may be awarded and licenses issued authorizing horse racing on any day of the year.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (14) Every horse race not licensed under this section is hereby declared to be a public nuisance and the corporation may obtain an injunction against the same in the Circuit Court of the county where the unlicensed race is proposed to take place.

Page 56 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (b) The Department of Revenue may provide information to the corporation pertaining to a potential applicant or licensee in paragraph (a) as permitted by Section 53 of this Act.

(c) The corporation may issue a license if it finds that the financial responsibility, age, experience, reputation, competence, and general fitness of the applicant to perform the activity permitted by a license are consistent with the best interest of racing and the maintenance of the honesty, integrity, and high Page 57 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO quality thereof.

CHAPTER 184 27 (c) The corporation may issue a license if it finds that the financial responsibility, age, experience, reputation, competence, and general fitness of the applicant to perform the activity permitted by a license are consistent with the best interest of sports wagering in the Commonwealth, and the maintenance of the honesty, integrity, and high quality thereof.

(b) An association or track that holds a license to conduct racing under this Page 58 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO chapter, or its affiliate, shall not hold a license to conduct charitable gaming under KRS Chapter 238 or have a beneficial interest in the proceeds of charitable gaming.

With respect to horse owners and trainers, the corporation may promulgate administrative regulations to facilitate and promote Page 59 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO uniform, reciprocal licensing with other states.

(1) (a) The corporation may promulgate administrative regulations governing and regulating mutuel wagering on horse races under what is known as the pari-pari-mutuel mutuel system of wagering.

and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY c.

The Page 60 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO corporation may promulgate administrative regulations to establish a fully functioning sports wagering system within six (6) months after June 29, 2023.

(a) The corporation may promulgate administrative regulations governing all reported but unclaimed pari-mutuelpari- mutuel winning tickets and unredeemed pari-pari-mutuel mutuel vouchers held in this state by any person or association operating a pari-mutuel or similar system of betting authorized under this chapter;

Pari-mutuelPari- mutuel wagering licensed and approved under this subsection shall be limited to four (4) days per year.

(b) This subsection shall not prevent the pari-mutuel pools and odds from being Page 61 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO updated after wagering is disabled to reflect all wagers that were placed up to the moment wagering is disabled.

(a) Prior to placing a wager online via websites or mobile applications operated by either a sports wagering licensee or a service provider, a patron shall register the patron's sports wagering account with the operating sports wagering licensee or service provider either in person at a licensed facility for sports wagering or remotely through the service provider's website or mobile Page 62 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO application;

CHAPTER 184 29 2.

Page 63 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO c.

and (i) The corporation may enter into agreements with other jurisdictions or entities Page 64 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO to facilitate, administer, and regulate multijurisdictional sports betting by sports betting operators to the extent that entering into the agreement is consistent with state and federal laws and the sports betting agreement is conducted only in the United States.

(4) A track may contract with no more than three (3) service providers at a time to conduct and manage services and technology which support the operation of sports betting both on the track and online via websites and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY mobile applications.

(b) A track or association licensed under this chapter may conduct fixed-odds Page 65 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO wagering on horse racing with or without a service provider.

(c) A track or association licensed to conduct horse racing, sports wagering, or Page 66 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO a licensee offering fantasy contests under this chapter or its affiliate or an entity in which it has a beneficial interest shall not contract with a service provider that:

CHAPTER 184 31 (11) If a track or association holds two (2) or more licenses, only the specific license or licensee for which the track or association has violated the terms shall be subject to suspension or revocation or the applicable penalties.

(2) "Affiliate" means any corporation, partnership, association, or other business or professional entity or any natural person that directly or indirectly, through one or Page 67 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO more intermediaries, controls, or is controlled by, or is under common control with a licensed manufacturer, distributor, or charitable gaming facility;

An employee of the premises upon which the charitable gaming is conducted that is twenty-onetwenty- one (21) years of age or older, has completed training prescribed by the office, and has completed the required background checks;

Page 68 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (b) Training prescribed by the office in paragraph (a) of this subsection and the federal background check required in Section 26 of this Act shall not be in effect until July 1, 2027;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (11) "Charity fundraising event" means an activity of limited duration at which games of chance approved by the corporation are conducted, including bingo, raffles, charity game tickets, special limited charitable games, and wagering on prerecorded horse races, KRS Chapter 230 notwithstanding.

Examples of such activities include events that attract patrons for community, social, and entertainment purposes apart Page 69 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO from charitable gaming, such as fairs, festivals, carnivals, licensed charitable gaming organization conventions, bazaars, and banquets.

An electronic pulltab Page 70 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO device may only operate on a closed network or intranet that is confined to the licensee's premises, and shall not be internet accessible by patrons, but shall be connected to a central server system solely for the purposes of monitoring, reporting, accounting, and software maintenance.

and (b) Any distributor who cuts, collates, and packages for distribution any gaming Page 71 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO supplies and equipment purchased in bulk;

CHAPTER 184 33 (22) "Office" means the office regulating charitable gaming within the Kentucky Horse Racing and Gaming Corporation established by the president under KRS Chapter 230;

and (29) "Year" means calendar year except as used in KRS 238.535(11), 238.545(4), Page 72 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO 238.547(1), and 238.555(7), when "year" means the licensee's license year.

Page 73 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO 2.

and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 2.

(1) Licensing charitable organizations, charitable gaming facilities, manufacturers, and Page 74 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO distributors that desire to engage in charitable gaming;

and Page 75 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (10)[(8)] Proposing administrative regulations in accordance with KRS Chapter 13A which are necessary to carry out the purposes and intent of this chapter.

An applicant for any license to be issued under KRS 238.535 shall be subjected to a state criminal history background check and may, if CHAPTER 184 35 deemed reasonably necessary, be subjected to a national criminal history background check by the office with the assistance of the Department of Kentucky State Police and the Federal Bureau of Investigation.

(b) Any employee or member of an applicant who has been designated as Page 76 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO chairperson of the charitable gaming activity;

(7)[(5)] No applicant shall be licensed unless all applicants required to be fingerprinted under subsections[the provision of subsection] (3) and (4) of this Page 77 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO section have been fingerprinted.

Page 78 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (4) An applicant for a license as a manufacturer or distributor shall apply for license on forms provided by the office and shall submit as part of the application process the following:

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (b) If the applicant is a corporation or other business entity, the names, addresses, dates of birth, and Social Security numbers of all officers and management personnel;

Page 79 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (6) A distributor who does not receive payment in accordance with the terms of its sales or lease agreement from a licensed charitable organization within thirty (30) days of the delivery of charitable gaming supplies and equipment shall notify the office of the delinquency in writing in a form and manner prescribed by the office.

Page 80 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (e) Provide transportation services in any manner to patrons of a charitable gaming activity;

CHAPTER 184 37 (1) Any charitable organization conducting charitable gaming in the Commonwealth of Kentucky shall be licensed by the corporation.

(2) (a) Any charitable organization exempt from the process of applying for a license Page 81 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO under subsection (1) of this section, shall notify the office in writing, on a simple form issued by the office, of its intent to engage in exempt charitable gaming and the address at which the gaming is to occur.

Page 82 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (5) If the annual financial report is not received by January 31, the exemption is automatically rescinded unless an extension of no more than thirty (30) days is granted by the office.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (9) If the office determines that the applicant is qualified, it shall issue a charitable gaming license retroactive to the date on which the exemption limit was exceeded.

Page 83 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO 1.

Been actively engaged in charitable activities and has made Page 84 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO reasonable progress, as defined in subparagraph 3.

Have maintained an office or place of business, other than for the Page 85 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO conduct of charitable gaming, for at least one (1) year in the county in which charitable gaming is to be conducted.

The office or place of business shall be a separate and distinct address and location from that of any other CHAPTER 184 39 licensee of the Office of Charitable Gaming;

(c) Any charitable organization that was registered with the county clerk to conduct charitable gaming in a county on or before March 31, 1992, shall Page 86 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO satisfy the requirement contained in paragraph (a)4.

No fewer than two (2) employees or members of the charitable organization who are involved in the management and supervision of charitable gaming, along with the chief executive officer or the director of Page 87 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO the applicant organization, shall be designated as chairpersons;

and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (l) Any other information the office deems appropriate.

The organization holds a special event raffle license issued by the office and complies with the regulatory requirements in this chapter, including Page 88 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO but not limited to the quarterly reporting requirements of KRS 238.550(7), the retention requirements of KRS 238.536, and payment of the fee imposed by KRS 238.570;

(c) An applicant qualifying under paragraph (b) of this subsection shall submit an application for a special event raffle license, and the information to be Page 89 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO submitted shall include but not be limited to the following:

The names, addresses, dates of birth, and Social Security numbers of all employees and members of the organization who will be involved in the management and supervision of charitable CHAPTER 184 41 gaming.

A copy of the letter or other legal document issued by the Internal Revenue Service to grant tax-exempttax- exempt status;

Page 90 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO 9.

(c) A charitable organization may apply for reinstatement of its active license and Page 91 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO the license may[shall] be reinstated provided:

The office may issue a temporary license to an applicant that has submitted a complete and accurate license application form, and has complied with all other licensing requirements in this section, until the office makes a final decision to grant Page 92 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO or deny the annual license.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY SECTION 29.

The charitable gaming facility licensed prior to the effective date of this Act shall transfer its license by submitting to the corporation, in order, information for the first licensed charitable organization as Page 93 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO required in subparagraph 2.

(3) A charitable gaming facility may transfer no more than three (3) licenses under this section from locations where persons twenty-one (21) years of age and under are permitted to locations where only persons twenty-onetwenty- one (21) years of age and older are permitted, within ninety (90) days of the effective date of this Act.

Change of ownership or transfer of the charitable organization, or the Page 94 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO charitable organization’s permanent cessation of charitable gaming;

or CHAPTER 184 43 6.

(5) Notwithstanding subsection (1) of this section, a licensed charitable organization that offers the play of electronic charity game tickets or electronic pulltab devices Page 95 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO at more than one (1) additional location as provided in subsection (1) of this section on July 1, 2025, shall lose, forfeit, and cease those activities at all additional locations upon occurrence of any of the following:

The licensee shall Page 96 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO request a change in the date, time, or location of a charitable gaming event by mail, electronic mail, or facsimile transmission, and shall submit a lease and an original signature of an officer.

Volunteer personnel, who may or may not be members of the licensed charitable organization, may be utilized Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY if each volunteer is readily identifiable as a volunteer.

Any effort or attempt to disguise any other type of compensation or private inurement Page 97 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO shall be considered an unauthorized diversion of funds and shall be actionable under KRS 238.995.

(10) A licensed charitable organization authorized to offer the play of electronic pulltab devices shall restrict access to the area or areas where electronic pulltab devices are located and ensure persons under the age of twenty-one (21) do not Page 98 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO access those areas or participate in the play of those activities.

(11) (a) If a licensed charitable organization is offering for play electronic pulltab devices at premises that are restricted in their entirety to ages twenty-one (21) and over, the charitable organization shall establish one (1) cordoned-cordoned-off off area for all electronic pulltab devices that is readily visible to the chairperson for monitoring the charitable gaming activity.

Keep a chairperson on staff to monitor the entrance of the cordoned-cordoned-off off area to persons over twenty-one (21) and over;

and Page 99 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO 3.

CHAPTER 184 45 1.

Page 100 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO 1.

A licensed charitable organization shall not award prizes for bingo that exceed five thousand dollars ($5,000) in fair market value per twenty-twenty-four four (24) hour period, including the value of door prizes;

and (e) An automated charity game ticket dispenser may be utilized by a licensed Page 101 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO charitable organization, with the prior approval of the office, only at the address of the location designated on the license to conduct charitable gaming.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (b) Cumulative or carryover prizes in seal card games shall not exceed two thousand four hundred dollars ($2,400).

Page 102 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (g) A person under the age of eighteen (18) shall not be permitted to purchase, or open in any manner, a charity game ticket.

(c) The office may grant approval for a licensed charitable organization to play Page 103 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO bingo games at a charity fundraising event.

A licensed CHAPTER 184 47 charitable organization shall not be eligible for more than eight (8) total charity fundraising event licenses per year, including two (2) special limited charity fundraising event licenses.

At an unlicensed facility which shall be subject to the requirements Page 104 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO stipulated in KRS 238.555(3), and subject to the restrictions contained in KRS 238.547(2).

Page 105 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (c) Charitable gaming may be conducted in a charitable gaming facility only by a licensed charitable organization in accordance with the provisions of this chapter.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (a) Manage or otherwise be involved in the conduct of charitable gaming;

Page 106 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (e) Provide transportation services in any manner to patrons of a charitable gaming activity;

or (j)[(i)](j)[(i)]Donate Donate or give any prize to be awarded in the conduct of charitable gaming.

Page 107 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO 1.

(1) The corporation may investigate, visit, and have free access to the office or place Page 108 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO of business of a licensee or any location where licensed charitable gaming is offered or conducted or any location or facility under the CHAPTER 184 49 jurisdiction of the corporation.

(c) The office may deny a license, suspend or revoke a license, impose probationary conditions on a license, issue a written reprimand or warning, impose fines or penalties, issue a cease and desist order, or any combination Page 109 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO thereof with regard to any licensee or other person participating in charitable gaming in Kentucky for a violation of any federal or state statute, administrative regulation, or corporation's directive, ruling, or order[place a license holder on probation, issue a letter of reprimand or letter of warning, and levy a fine].

of this paragraph shall not be Page 110 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO considered an audit or final review and acceptance of an organization quarterly report and payment.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 4.

(6)[(5)] All departments, divisions, boards, agencies, officers, and institutions of the Commonwealth of Kentucky and all subdivisions thereof, in particular local law enforcement entities, shall cooperate with the office in carrying out its enforcement Page 111 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO responsibilities.

(b) Following a notice of violation and appeal, a person may apply to the corporation for a stay of the ruling, pending action on an appeal by the Page 112 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO corporation.

a statement of justification of CHAPTER 184 51 the stay;

The chairperson shall convene a special meeting of the board of directors of the Page 113 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO corporation within ten (10) calendar days of receipt of the petition, and the corporation shall issue a written final order granting or denying the petition within two (2) calendar days of the special meeting.

Page 114 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (6) (a) A summary suspension, notice, or order to cease operations shall only be issued by the corporation if there is an imminent risk to the health and safety of the public or of the misappropriation of charitable gaming revenues.

Page 115 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (2) Making any false, material statements in an application or renewal application for a license or supplemental license.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (b) Two (2) misdemeanors directly or indirectly attributable to the use of alcoholic beverages or cannabis-infusedcannabis- infused beverages within two (2) consecutive years;

Page 116 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (a) The sale of lottery tickets sold under the provisions of KRS Chapter 154A;

(a) Loiters or remains in a public place for the purpose of gambling with cards, dice, or other gambling paraphernalia, except that the provisions of this section shall not apply if the person is participating in charitable gaming Page 117 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO defined by KRS 238.505, or is engaged in sports wagering, fantasy contests, fixed-oddsfixed- odds wagering, or wagering on live horse races and historical horse races licensed under KRS Chapter 230;

or CHAPTER 184 53 (d) Loiters or remains in any transportation facility, unless specifically authorized to do so, for the purpose of soliciting or engaging in any business, trade, or commercial transactions involving the sale of merchandise or services.

Acquisition or maintenance of premises, paraphernalia, equipment, or apparatus therefor;[ toward the ] Page 118 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO 3.

(c) A coin-operated amusement machine may entitle the person playing to a Page 119 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO noncash, merchandise prize or a voucher, billet, ticket, token, or electronic credit redeemable only for a noncash, merchandise prize under the following rules:

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (d) The noncash merchandise prize shall not be:

Page 120 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO 5.

Any so-called slot machine or any other machine or mechanical device which when operated may deliver, as a result of the application of any element of chance, any money or property, or by the operation of which Page 121 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO a person may become entitled to receive, as the result of the application of any element of chance, any money or property;

CHAPTER 184 55 3.

Requires the direct or indirect payment of consideration which may include and shall not be limited to the insertion of a coin, currency, ticket, token, or similar object, or by depositing funds Page 122 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO with the operator or owner of the device, to operate, play, or activate a game;

Any pinball machine shall be made to discharge accumulated free games only by reactivating the playing Page 123 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO mechanism once for each game released.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 2.

and (b) A gift enterprise or referral sales plan which meets the elements of a lottery Page 124 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO listed in paragraph (a) of this subsection is to be considered a lottery under this chapter;

(14) "Skill-based contest" means a live, in-person competitive event among two (2) or Page 125 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO more individuals or teams of individuals in which the ultimate winner is determined by skill and the competitive event does not utilize a gambling device;

Page 126 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (a) "Historical horse race" has the same meaning as in KRS 138.511;

CHAPTER 184 57 a.

Where pari-mutuel wagering on historical horse races is conducted on terminals approved by the Kentucky Horse Racing and Gaming Page 127 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO Corporation.

(2) Except as authorized by subsection (11) of this section, within five (5) business Page 128 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO days after the completion of a charitable gaming event or session, all gross receipts and adjusted gross receipts shall be deposited into one checking account devoted exclusively to charitable gaming.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (3) All payments for charitable gaming expenses, payments made for prizes purchased, and any charitable donations from charitable gaming receipts shall be made from the charitable gaming account and the payments or donations shall be made only by bona fide officers of the organization by checks having preprinted consecutive numbers and made payable to specific persons or organizations.

(4) A licensed charitable organization shall expend net receipts exclusively for purposes consistent with the charitable, religious, educational, literary, civic, Page 129 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO fraternal, or patriotic functions or objectives for which the licensed charitable organization received and maintains federal tax-exempt status, or consistent with its status as a local school district, a common school, an institution of higher education, or a state college or university.

(a) All gross receipts received from charitable gaming for the reporting period, Page 130 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO classified by type of gaming activity;

CHAPTER 184 59 (f) Janitorial services;

Page 131 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (11) For the purposes of deposits under subsection (2) of this section, a licensed charitable organization conducting charitable gaming events or sessions shall only be required to deposit its gross receipts and adjusted gross receipts one (1) time per week if the following conditions are met:

(e) A registrar operating with transparency, accountability, and collaboration with breeders and industry stakeholders builds trust and confidence in the Page 132 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO recordkeeping;

or Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY c.

Page 133 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (3) Notwithstanding any provision of this section to the contrary, if any registrar fails to comply with the requirements of this chapter, the corporation shall select and utilize an entity to serve as the registrar of Kentucky Thoroughbreds.

Page 134 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO a.

The members of the advisory committee shall serve without compensation, but shall be entitled to reimbursement for all Page 135 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO expenses incurred in the discharge of official business.

CHAPTER 184 61 (3) (a) The Kentucky Thoroughbred Development Fund Advisory Committee shall advise and assist the Kentucky Horse Racing and Gaming Corporation in the development of the supplemental purse program provided herein for Kentucky-bred Thoroughbreds, shall make recommendations to the corporation with respect to the establishment of guidelines, administrative regulations for the provision of supplemental purses, the amount thereof, the races for which the purses are to be provided and the conditions thereof, manner and method of payment of supplemental purses, registry of Thoroughbred stallions standing within the Commonwealth of Kentucky, registry of Kentucky-bred Thoroughbreds for purposes of this section, nature and type of forms and reports to be employed and required in connection with the establishment, provision for, award and payment of supplemental purses, and with respect to all other matters necessary in connection with the carrying out of the intent and purposes of this section.

(4) The Kentucky Horse Racing and Gaming Corporation, with the advice and assistance of the Kentucky Thoroughbred Development Fund Advisory Committee, shall use the Kentucky Thoroughbred development fund to promote, enhance, improve, and encourage the further and continued development of the Thoroughbred breeding industry in Kentucky by providing, out of the Kentucky Thoroughbred development fund, supplemental purses for designated stakes, Page 136 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO handicap, allowance, nonclaiming maiden races, and claiming races contested at licensed Thoroughbred race meetings in Kentucky.

(d) In order for an owner of a Kentucky-sired Thoroughbred to be eligible to demand, claim, and receive a portion of a supplemental purse provided by the Page 137 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO Kentucky Thoroughbred development fund, the Thoroughbred horse in a designated race for which a supplemental purse has been provided by the Kentucky Thoroughbred development fund shall have been duly registered as a Kentucky-bred Thoroughbred with the official registrar of the Kentucky Thoroughbred development fund prior to entry in the race.

The registrar may establish and charge, with the approval of the corporation, reasonable registration fees for its services in the registration of Kentucky Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY Thoroughbred stallions and in the registration of Kentucky-bred Thoroughbreds.

(b) Any interested party aggrieved by the failure or refusal of the official registrar to register a stallion or Thoroughbred as a Kentucky stallion or as a Kentucky-Kentucky-bred bred Thoroughbred shall have the right to file with the registrar, within thirty (30) days of such failure or refusal of the registrar, a petition seeking registration of the Thoroughbred.

Page 138 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (7) The Kentucky Horse Racing and Gaming Corporation may promulgate administrative regulations to carry out the provisions and purposes of this section, including the promulgation of administrative regulations and forms for the proper registration of Kentucky stallions and Kentucky-bred Thoroughbreds with the official registrar, and shall administer the Kentucky-bred Thoroughbred program created hereby in a manner best designed to promote and aid in the further development of the Thoroughbred breeding industry in Kentucky, to upgrade the quality of Thoroughbred racing in Kentucky, and to improve the quality of Thoroughbred horses bred in Kentucky.

Page 139 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (b) An initial fee of two thousand five hundred dollars ($2,500) shall be paid to the corporation before a supplemental license may be issued to a track or association.

PageCHAPTER 140184 of63 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (c) Tampering with or interfering with a horse race is a Class C felony.

(2) The commission, including the tax levied in KRS 138.510, deducted from the gross amount wagered by the person, corporation, or association which operates a race Page 141 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO track under the jurisdiction of the Kentucky Horse Racing and Gaming Corporation and conducts Thoroughbred racing at which betting is conducted through a pari-pari-mutuel mutuel or other similar system shall not exceed twenty-two percent (22%) of the gross handle in races where the patron is required to select two (2) or more horses, and the breaks, which breaks shall be made and calculated in accordance with Section 52 of this Act[to the penny], except on races previously run in which the breaks shall be made and calculated in accordance with Section 52 of this Act[to the penny] or retained in the pari-mutuel pools.

The minimum pay-offpay- off on a one dollar ($1) wager shall be one dollar and ten cents ($1.10);

An amount equal to three percent Page 142 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO (3%) of the total amount wagered and included in the commission of a harness host track shall be allocated by the harness host track in the following manner.

Three-quartersThree- quarters of one percent (3/4 of 1%) shall be allocated to overnight purses.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (a) Amounts ending in one cent ($0.01) and two cents ($0.02) are rounded down to the nearest ten ($0.10) cents;

On settlement of the final bill of sale, invoice, or fee after all Page 143 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO individual items, duties, fees, taxes, and charges are calculated to the exact cent;

(d) Testimony provided by the commissioner or any employee of the department Page 144 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO in any court, or the introduction as evidence of returns or reports filed with the department, in an action for violation of state or federal tax laws or in any action challenging state or federal tax laws;

CHAPTER 184 65 (g) Providing information to a licensing agency, the Transportation Cabinet, or the Kentucky Supreme Court under KRS 131.1817, including providing information to the Kentucky Horse Racing and Gaming Corporation for compliance with licensure requirements under Section 19 of this Act;

(i) Providing any utility gross receipts license tax return information that is Page 145 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO necessary to administer the provisions of KRS 160.613 to 160.617 to applicable school districts on a confidential basis;

KRS 139.516 for purposes of the sales and use tax exemptions for the Page 146 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO commercial mining of cryptocurrency;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (5) Statistics of crude oil as reported to the department under the crude oil excise tax requirements of KRS Chapter 137 and statistics of natural gas production as reported to the department under the natural resources severance tax requirements of KRS Chapter 143A may be made public by the department by release to the Energy and Environment Cabinet, Department for Natural Resources.

(6) Notwithstanding any provision of law to the contrary, beginning with mine-map submissions for the 1989 tax year, the department may make public or divulge only those portions of mine maps submitted by taxpayers to the department pursuant to Page 147 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO KRS Chapter 132 for ad valorem tax purposes that depict the boundaries of mined- out parcel areas.

(b) The extent to which current breeding practices, including the concentration of breeding among high-demandhigh- demand stallions, may impact genetic diversity, durability, and overall herd health;

(c) Data derived from domestic and international stud books, breeding registries, veterinary research, and academic studies relevant to equine genetics and breeding Page 148 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO outcomes;

CHAPTER 184 67 Section 55.

If any provision of this Act or the application thereof to any person or circumstance is held invalid, the invalidity shall not affect other provisions or Page 149 of 150 HB090490.100 - 463 - XXXX 4/14/2026 7:45 PM Vetoed and Overridden UNOFFICIAL COPY 26 RS HB 904/VO applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.

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