SB 299 — AN ACT relating to the Kentucky Horse Racing Commission and declaring an emergency.

CHAPTER 171 13 (8) The president and the board may conduct an ongoing study of the operation and Page 27 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO administration of racing and gaming in other states or countries, of available literature on the subject, of federal laws and regulations which may affect the operation of the corporation, and of the reaction of citizens of this state to existing or proposed racing and gaming, with a view toward implementing improvements that will tend to serve the purposes of this chapter and, on and after July 1, 2025, KRS Chapter 238.

Page 28 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 2.

A Page 29 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO person who has been convicted of a felony, bookmaking or other forms of illegal gambling, or of a crime where dishonesty is a necessary element shall not be employed by the corporation.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (6) Employees of the corporation shall be subject to all applicable provisions of KRS Chapter 11A.

(1) The corporation is vested with jurisdiction and supervision over all live horse racing, pari-mutuel wagering, sports 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 Page 30 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO solely on the ground of race, color, creed, national origin, ancestry, or sex;

(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 Page 31 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO delivery, in-person delivery, or other means;

CHAPTER 171 15 (9) Applications for licenses shall be made in the form and manner and contain information as required by the corporation through the promulgation of administrative regulations.

Page 32 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (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.

(12) The corporation may issue subpoenas for the attendance of witnesses before it and for the production of documents, records, papers, books, supplies, devices, equipment, and all other instrumentalities related to live horse racing, pari-pari-mutuel mutuel wagering, sports wagering, breed integrity and development, and on and after July 1, 2025, charitable gaming, within the Commonwealth.

(15) (a) The corporation shall promulgate administrative regulations establishing a self-exclusion list for individuals who self-identify as being problem or Page 33 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO compulsive gamblers.

The corporation may eject or exclude therefrom or any part thereof, any person, licensed or unlicensed, whose conduct or reputation is such that Page 34 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO the person's presence at a charitable gaming facility may, in the opinion of the corporation, negatively reflect on the honesty and integrity of charitable gaming, or interfere with the orderly conduct of charitable gaming at a charitable gaming facility, but no persons shall be excluded or ejected from a charitable gaming facility solely on the ground of race, color, creed, national origin, ancestry, or sex.

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.

(1) (a) Every person not required to be licensed under KRS 230.300 who desires to participate in horse racing in the Commonwealth as a horse owner, trainer, jockey, apprentice jockey, agent, stable employee, racing official, association employee, or employee of a person or concern contracting with the association to provide a service or commodity and which requires their presence on association grounds during a race meeting, or veterinarian, farrier, horse dentist, or supplier of food, tack, medication, or horse feed, or in any other capacity as the corporation[racing commission] shall[ from time to time] establish by administrative regulation, shall first apply to the corporation[racing commission] for a license to participate in the activity on Page 35 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO association grounds during a race meeting.

The corporation[racing commission] is authorized to exchange fingerprint data with the Department of Kentucky State Police and the Federal Bureau of Page 36 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Investigation in order to conduct a criminal history background check of an applicant.

CHAPTER 171 17 (1) (a) Every person not required to be licensed under KRS 230.300 who desires to participate in horse racing in the Commonwealth as a horse owner, trainer, jockey, apprentice jockey, agent, stable employee, racing official, association employee, or employee of a person or concern contracting with the association to provide a service or commodity and which requires their presence on association grounds during a race meeting, or veterinarian, farrier, horse dentist, or supplier of food, tack, medication, or horse feed, or in Page 37 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO any other capacity as the corporation[racing commission] shall[ from time to time] establish by administrative regulation, shall first apply to the corporation[racing commission] for a license to participate in the activity on association grounds during a race meeting.

(b) An applicant for an occupational license shall submit to the corporation[racing commission] fingerprints as may be required and other Page 38 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO information necessary and reasonable for processing a license application.

(1) (a) There is hereby established in the State Treasury a restricted account to be Page 39 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO known as the sports wagering administration fund.

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

(2) "Charitable gaming" means bingo, charity game tickets, raffles, and charity Page 40 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO fundraising events conducted for fundraising purposes by charitable organizations licensed and regulated under the provisions of this chapter.

(8) "Charity fundraising event" means an activity of limited duration at which games of chance approved by the office[department] are conducted, including bingo, raffles, Page 41 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO charity game tickets, special limited charitable games, and wagering on prerecorded horse races, KRS Chapter 230 notwithstanding.

and CHAPTER 171 19 (b) Any distributor who cuts, collates, and packages for distribution any gaming supplies and equipment purchased in bulk;

Page 42 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (12) "Gross receipts" means all moneys collected or received from the conduct of charitable gaming;

Page 43 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (a) Spouse and parents-in-law;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (26)[(24)] "Chairperson" means the chief executive officer and any officer, member, or employee of a licensed charitable organization who will be involved in the management and supervision of charitable gaming as designated in the organization's charitable gaming license application under KRS 238.535(13)(g);

A card-minding device shall not be designed and manufactured to Page 44 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO resemble any electronic gaming device that utilizes a video display monitor, such as a video lottery terminal, video slot machine, video poker machine, or any similar video gaming device;

The office[department] shall license and regulate the conduct of charitable gaming and license and regulate charitable organizations that desire to engage in charitable gaming, charitable gaming facilities, manufacturers, and distributors in the Commonwealth of Kentucky in accordance with the provisions of Page 45 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO this chapter.

(d) Violations of KRS Chapters 516 and 517, relating to forgery and fraud in the Page 46 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO conduct of charitable gaming;

CHAPTER 171 21 (e) Violations relating to the damage or destruction of real or personal property owned or leased by a charitable gaming licensee;

In furtherance of this duty, the office Page 47 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO may[department shall have the authority to] issue administrative subpoenas and summonses.

Page 48 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Section 16.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (b) The Attorney General or[ his] designee;

Thereafter, ]Each member shall be appointed for a term of four (4) Page 49 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO years.

(2)[(1)] (a) If the office[department] has proposed a new or amended administrative regulation that changes the manner in which a charitable organization conducts charitable gaming or is likely to cause a charitable organization to Page 50 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO incur new or additional costs, the office[department] shall not propose[promulgate] the proposed administrative regulation to the corporation without first receiving comments from the Charitable Gaming Advisory Council[Commission] established in KRS 238.520, subject to the restrictions of paragraph (b) of this subsection.

CHAPTER 171 23 3.

If the advisory council[commission] fails to comment within the time limit, the office[department] may proceed with the administrative changes at the[its] discretion of the Page 51 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO corporation.

(3) An applicant for any license to be issued under KRS 238.530 and 238.555 shall be subjected to a state and national criminal history background check by the office[department], with the assistance of the Department of Kentucky State Police Page 52 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO and the Federal Bureau of Investigation.

The Department of Kentucky State Police may submit fingerprints of any applicant to Page 53 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO the Federal Bureau of Investigation for the national criminal history Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY background check.

(4) An applicant for a license as a manufacturer or distributor shall apply for license on forms provided by the office[department] and shall submit as part of the application Page 54 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO process the following:

(6) A distributor who does not receive payment in accordance with the terms of its Page 55 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 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[department] of the delinquency in writing in a form and manner prescribed by the office[department].

CHAPTER 171 25 (9) A licensed distributor shall not purchase charitable gaming supplies and equipment from any person not licensed as a manufacturer or distributor in the Commonwealth of Kentucky.

(e) Provide transportation services in any manner to patrons of a charitable Page 56 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO gaming activity;

(2) (a) Any charitable organization exempt from the process of applying for a license under subsection (1) of this section, shall notify the office[department] in Page 57 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO writing, on a simple form issued by the office[department], of its intent to engage in exempt charitable gaming and the address at which the gaming is to occur.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 3.

(5) If the annual financial report is not received by January 31, the exemption is Page 58 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO automatically rescinded unless an extension of no more than thirty (30) days is granted by the office[department].

501(c)(3), Page 59 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 501(c)(4), 501(c)(8), 501(c)(10), or 501(c)(19), or be covered under a group ruling issued by the Internal Revenue Service under authority of those sections;

and CHAPTER 171 27 b.

Operated for charitable purposes from an office or place of business in the Kentucky county where it proposes to conduct Page 60 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO charitable gaming for at least one (1) year prior to application for licensure, in accordance with subparagraph 4.

except that up to three (3) licensed charitable organizations may have Page 61 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO the same address if they legitimately share office space.

Page 62 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (b) The date of the charitable organization's establishment in the Commonwealth of Kentucky and the date of establishment in the county or counties in which charitable gaming is to be conducted;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (f) The names, addresses, dates of birth, and Social Security numbers of all officers of the organization;

(j) A statement signed by the presiding or other responsible officer of the Page 63 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO charitable organization attesting that the information submitted in the application is true and correct and that the organization agrees to comply with all applicable laws and administrative regulations regarding charitable gaming;

Each raffle complies with the office's[department's] raffle standards in Page 64 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO KRS 238.545 and administrative regulations promulgated thereunder and is approved by the office[department] in writing prior to the sale of the first raffle ticket;

CHAPTER 171 29 (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 submitted shall include but not be limited to the following:

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

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and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 3.

Page 67 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Section 21.

(a) If the percentage retained is between thirty-five percent (35%) and thirty-nine and nine-tenths percent (39.9%), the licensee shall be placed on probation for Page 68 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO a period of six (6) months and shall be required to submit to the office[department] an acceptable financial plan detailing corrective actions to be taken by the licensee to achieve the forty percent (40%) threshold by the end of the calendar year in which the probation is imposed;

and (e) For purposes of paragraphs (a), (b), (c), and (d) of this subsection, periods of probation and suspension shall commence, unless appealed, from the date the office[department] notifies the licensee of its failure to satisfy the retention Page 69 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO requirement for the previous calendar year.

CHAPTER 171 31 (1) Charitable gaming shall be conducted by a licensed charitable organization at the location, date, and time which shall be stated on the license.

Page 70 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO No person shall serve as chairperson for more than one (1) charitable organization.

(c) Unless otherwise directed by the office[department], an organization's Page 71 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO supplies and equipment remain the property of the organization regardless of where they are stored and must be accessible to the organization at all reasonable times upon request.

No licensed charitable organization shall 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 Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 3.

Page 72 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 3.

A legible poster that lists prizes Page 73 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO to be awarded, and on which prizes actually awarded are posted at the completion of the sale of each separate package shall satisfy this requirement.

CHAPTER 171 33 (e) Winners shall be drawn at random at a date, time, and place announced in advance or printed on the ticket.

(f) All prizes for a raffle shall be identified in advance of the drawing and all Page 74 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO prizes identified shall be awarded.

A licensed charitable organization shall not be eligible for more than eight (8) total charity Page 75 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO fundraising event licenses per year, including two (2) special limited charity fundraising event licenses.

No Page 76 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO other funds may be deposited or transferred into the charitable gaming account.

No check drawn on the charitable gaming account may be made payable to "cash," or "bearer," except that a licensed charitable organization Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY may withdraw start-up funds for a charitable gaming event or session from the charitable gaming account by check made payable to "cash" or "bearer," if these start-up funds are redeposited into the charitable gaming account together with all adjusted gross receipts derived from the particular event or session.

(5) Accurate records and books shall be maintained by each organization exempt from Page 77 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO licensure under KRS 238.535(1) and each licensed charitable organization for a period of three (3) years.

Page 78 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (d) All net receipts retained and the names and addresses of all charitable endeavors that received money from the net receipts;

CHAPTER 171 35 (i) Membership dues for its participation in any charitable gaming trade organization;

and Page 79 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (c) The licensed charitable organization's deposits of gross receipts and adjusted gross receipts from charitable gaming total less than two thousand five hundred dollars ($2,500) in the week prior to the deposit.

(d) The name, address, date of birth, and Social Security number of any Page 80 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO individual who has a ten percent (10%) or greater financial interest in the facility;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (f) Provide advertisement or marketing services in any manner to a licensed charitable organization;

The amount charged to rent a charitable gaming facility, Page 81 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO whether the facility is licensed or unlicensed, shall not be based in whole or in part on a percentage of gross receipts, net proceeds derived from the conduct of charitable gaming, or by reference to the number of people in attendance.

(7) A charity fundraising event at which special limited charitable games are played may be conducted at a licensed charitable gaming facility, but no licensed charitable gaming facility shall be permitted to hold more than one (1) such event Page 82 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO per week or more than seven (7) per year.

and CHAPTER 171 37 (d) Conduct in-depth audits and investigations, when warranted.

Page 83 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (b) The office[department] may take appropriate administrative action against any person licensed under this chapter for any violation of the provisions of this chapter or administrative regulations promulgated thereunder subject to the conditions established by this subsection.

The purpose of this subparagraph is for the office[department] to identify correctable reporting errors in a timely manner, and to notify the licensee of the errors prior to the due date of the next organization Page 84 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO quarterly report so that the errors are corrected and are not repeated in subsequent organization quarterly reports.

A license may be reinstated only upon a finding that the violations for which the license was revoked have been Page 85 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO corrected.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (7) All administrative actions taken under this section shall be subject to the final order of the board.

(2) Upon receipt of an appeal, the board[department] shall schedule the matter for an Page 86 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO administrative hearing that shall be conducted in accordance with KRS Chapter 13B.

(1) A fee is imposed on charitable gaming in the amount of fifty-three hundredths of one percent (0.53%) of gross receipts derived from all charitable gaming conducted Page 87 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO by charitable organizations required to be licensed in the Commonwealth of Kentucky.

The amount of the fee shall be adjusted by October 1 of each odd-odd-numbered numbered year in accordance with subsection (3) of this section.

and CHAPTER 171 39 2.

The new rate Page 88 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO shall be calculated by multiplying one hundred ten percent (110%) by the amount determined in paragraph (a)2.

parent, brother, sister, grandparent, grandchild, father-in-law, mother-in-law, brother-in-law, sister-sister-in-law, in-law, son-in-law, daughter-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, half sister;

Page 89 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (6) "Income" means any money or thing of value received or to be received as a claim on future services, whether in the form of a fee, salary, expense allowance, forbearance, forgiveness, interest, dividend, royalty, rent, capital gain, or any other form of compensation or any combination thereof;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 11.

Page 90 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 15.

A public servant is employed by the agency by which his or her appointing authority is employed, unless his or her agency is attached to the appointing authority's agency for administrative purposes only, or unless the agency's characteristics are of a Page 91 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO separate independent nature distinct from the appointing authority and it is considered an agency on its own, such as an independent department;

CHAPTER 171 41 (19) "Sporting event" means any professional or amateur sport, athletic game, contest, event, or race involving machines, persons, or animals, for which admission tickets are offered for sale and that is viewed by the public;

(20) "Person" means an individual, proprietorship, firm, partnership, limited partnership, Page 92 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO joint venture, joint stock company, syndicate, business or statutory trust, donative trust, estate, company, corporation, limited liability company, association, club, committee, organization, or group of persons acting in concert;

or Page 93 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (b) Agreements which may directly or indirectly involve public funds disbursed through entitlement programs;

Page 94 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (7) A present or former officer or public servant listed in KRS 11A.010(9)(a) to (g) shall not, within one (1) year following termination of his or her office or employment, accept employment, compensation, or other economic benefit from any person or business that contracts or does business with, or is regulated by, the state in matters in which he or she was directly involved during the last thirty-six (36) months of his or her tenure.

This provision shall not prohibit an individual from returning to the same business, firm, occupation, or Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY profession in which he or she was involved prior to taking office or beginning his or her term of employment, or for which he or she received, prior to his or her state employment, a professional degree or license, provided that, for a period of one (1) year, he or she personally refrains from working on any matter in which he or she was directly involved during the last thirty-six (36) months of his or her tenure in state government.

Page 95 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (10) Without the approval of his appointing authority, a public servant shall not accept outside employment from any person or business that does business with or is regulated by the state agency for which the public servant works or which he or she supervises, unless the outside employer's relationship with the state agency is limited to the receipt of entitlement funds.

(12) The prohibitions imposed by subsections (6) to (10) of this section shall not apply Page 96 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO to members of the Kentucky Horse Racing and Gaming Corporation[Commission].

It is not intended that this enumeration of administrative bodies be all-inclusive.all- inclusive.

CHAPTER 171 43 (1) The Governor.

Page 97 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (6) Department of Agriculture.

Page 98 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (h) Office of the Kentucky State Medical Examiner.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (i) Parole Board.

Page 99 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 3.

CHAPTER 171 45 8.

Page 100 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO c.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 3.

Page 101 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 2.

(i)[(j)](i)[(j)]Department Department of Professional Licensing.

Page 102 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (c) Department of Aviation.

CHAPTER 171 47 5.

Page 103 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO c.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (c) Department for Medicaid Services.

Page 104 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (h) Department for Family Resource Centers and Volunteer Services.

Page 105 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (a) Kentucky Department of Tourism.

CHAPTER 171 49 3.

Page 106 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (e) Kentucky State Fair Board.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (g) Office of Legal Affairs.

Page 107 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (p) Kentucky Historical Society.

Page 108 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 2.

CHAPTER 171 51 c.

Page 109 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO a.

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

Page 110 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (n) Kentucky Occupational Safety and Health Standards Board.

It is not intended that this enumeration of administrative bodies be all-inclusive.all- inclusive.

Every authority, board, bureau, interstate compact, commission, committee, conference, council, office, or any Page 111 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO other form of organization shall be included in or attached to the department or program cabinet in which they are included or to which they are attached by statute or statutorily authorized executive order;

except in the case of the Personnel Board and where the attached department or administrative body is headed by a constitutionally elected CHAPTER 171 53 officer, the attachment shall be solely for the purpose of dissemination of information and coordination of activities and shall not include any authority over the functions, personnel, funds, equipment, facilities, or records of the department or administrative body.

Page 112 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (a) Department of Kentucky State Police.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (f) Office of Drug Control Policy.

Page 113 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (n) Office of Communications.

Page 114 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 3.

CHAPTER 171 55 5.

c.[d.]Housing,c.[d.] Housing, Buildings and Construction Legal Division.

d.[e.]Financiald.[e.] Financial Institutions Legal Division.

Page 115 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (b) Office of Claims and Appeals.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (e)] Department of Alcoholic Beverage Control.

Page 116 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 3.

CHAPTER 171 57 2.

Page 117 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 4.

Page 118 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO a.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 8.

Page 119 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (h) Department for Facilities and Support Services.

CHAPTER 171 59 1.

Page 120 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 5.

Page 121 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 9.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 1.

Page 122 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (t) Eastern Kentucky Exposition Center.

CHAPTER 171 61 a.

Page 123 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 7.

Page 124 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 5.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (i) Department of Workplace Standards.

Page 125 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (w) Kentucky Geographic Education Board.

Each department CHAPTER 171 63 shall be headed by a commissioner appointed by the Governor as required by KRS 12.040 and, where appropriate, by KRS 238.510, 241.015, and 304.2-020.

(a) The Office of Communications and Public Outreach, which shall be headed by an executive director appointed by the secretary with the approval of the Page 126 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Governor in accordance with KRS 12.050;

Commissioners shall be directly responsible to the secretary and shall perform the Page 127 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO functions, powers, and duties provided by law and prescribed by the secretary.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (1) The following officers employed or appointed as full-time, part-time, or auxiliary Page 128 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO officers, whether paid or unpaid, shall be certified by the council if all minimum standards set forth in KRS 15.380 to 15.404 have been met:

Page 129 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (d) Deputy sheriffs under KRS 70.045 and 70.263(3);

CHAPTER 171 65 (7) Local alcoholic beverage control investigators appointed under KRS Chapter 241 on or after April 1, 2019, shall be certified by the council if all minimum standards set forth in KRS 15.380 to 15.404 have been met.

Local alcoholic beverage control investigators appointed under KRS Chapter 241 before April 1, 2019, may be Page 130 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO certified by the council if all minimum standards set forth in KRS 15.380 to 15.404 have been met.

(4) The following officers may, upon request of the employing agency, be certified by the council if all minimum standards set forth in KRS 15.380 to 15.404 have been Page 131 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO met:

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (c) Constables;

Page 132 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (7) Local alcoholic beverage control investigators appointed under KRS Chapter 241 on or after April 1, 2019, shall be certified by the council if all minimum standards set forth in KRS 15.380 to 15.404 have been met.

Page 133 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (f) Employees of Kentucky Educational Television who have been determined to be exempt from classified service by the Kentucky Authority for Educational Television, which shall have sole authority over such exempt employees for employment, dismissal, and setting of compensation, up to the maximum established for the executive director and his principal assistants;

Division directors in the classified service as of January 1, 1980, shall remain in the Page 134 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO classified service;

CHAPTER 171 67 (l) The judicial department, referees, receivers, jurors, and notaries public;

(s) University or college engineering students or other students employed part-part-time time or part-year by the state through special personnel recruitment programs;

(t) Superintendents of state mental institutions, including heads of centers for individuals with an intellectual disability, and penal and correctional Page 135 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO institutions as referred to in KRS 196.180(2);

If no such vacancy exists, they shall be considered for employment in any vacant position for which they were qualified Page 136 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO pursuant to KRS 18A.130 and 18A.135.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (5) Nothing in KRS 18A.005 to 18A.200 shall be construed as precluding appointing officers from filling unclassified positions in the manner in which positions in the classified service are filled except as otherwise provided in KRS 18A.005 to 18A.200.

No certified or equivalent employee in the Page 137 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Department for Adult Education and Literacy shall suffer any penalty in the transfer.

Page 138 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO a.

CHAPTER 171 69 (1) Occupational license fees levied under KRS 91.200 by the legislative body of a city of the first class may apply to racetrack extensions.

"Racetrack extension" does not include a facility or real property used Page 139 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO for training horses or at which live horse races are run for stakes, purses, or prizes under the jurisdiction of the Kentucky Horse Racing and Gaming Corporation[Commission].

(2) Any race track for any year commencing December 1 and ending the following Page 140 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO November 30 for the days upon which races are actually conducted for any stake, purse, or prize, shall pay a license tax based on the average daily mutuel handle for the preceding year as follows:

Average Daily Mutuel Handle License Tax $0 - $25,000 $ 0 $25,000 - $250,000 $ 175 $250,001 - $450,000 $ 500 $450,001 - $700,000 $1,000 $700,001 - $800,000 $1,500 $800,001 - $900,000 $2,000 $900,001 and above $2,500 Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (3) As used in subsection (2) of this section the term "daily mutuel handle" shall mean the total gross amount of money bet or wagered by a race track's patrons by means of pari-mutuel, combination, or French pools on live races conducted by the track.

Page 141 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (b) Beginning August 1, 2022, the excise tax imposed on all tracks conducting pari-mutuel wagering on live racing under jurisdiction of the corporation[commission] shall be one and one-half percent (1.5%) of all money wagered on live races at the track during the fiscal year.

(c) Beginning on April 1, 2014, an excise tax is imposed on all tracks conducting pari-mutuel wagering on historical horse races under the jurisdiction of the corporation[commission] at a rate of one and one-halfone- half percent (1.5%) of all money wagered on historical horse races at the track during the fiscal year.

Before August 1, 2022, an amount equal to one percent (1%) of all money wagered on live races and historical horse races at the track Page 142 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO for harness racing shall be deposited in the Kentucky standardbred development fund established in KRS 230.770.

CHAPTER 171 71 3.

An amount equal to one percent (1%) of all money wagered on live races and historical horse races at the track for quarter horse, paint Page 143 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO horse, Appaloosa, and Arabian horse racing shall be deposited in the Kentucky quarter horse, paint horse, Appaloosa, and Arabian development fund established by KRS 230.445;

The Kentucky Thoroughbred breeders incentive fund established in KRS 230.800, in an amount not to exceed four Page 144 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO hundred thousand dollars ($400,000);

The Kentucky Council on Postsecondary Education may promulgate administrative regulations to establish procedures for Page 145 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO administering the program and criteria for evaluating and awarding grants;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (2) (a) Except as provided in paragraph (c) of this subsection, an excise tax is imposed on:

(c) A noncontiguous track facility approved by the corporation[commission] on or after January 1, 1999, shall be exempt from the tax imposed under this subsection, if the facility is established and operated by a licensed track which has a total annual handle on live racing of two hundred fifty thousand dollars Page 146 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO ($250,000) or less.

An amount equal to one-twentieth of one percent (0.05%) of the amount wagered shall be deposited in a trust and revolving fund to be used for Page 147 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO the construction, expansion, or renovation of facilities or the purchase of equipment for equine programs at state universities, as detailed in subsection (1)(d)5.

CHAPTER 171 73 (1) "Advanced deposit account wagering" has the same meaning as in KRS 230.210;

Page 148 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (a) The handle from wagers made at a track on live racing during the fiscal year, excluding amounts wagered:

Page 149 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (11) "Interstate wagering" has the same meaning as in KRS 230.210;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY Section 45.

Page 150 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Section 46.

Page 151 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (e) Every person, corporation, or association required to pay the tax imposed by KRS 138.510 shall keep its books and records so as to clearly show by a separate record the total amount of money contributed to every pari-mutuel pool.

CHAPTER 171 75 1.

and Page 152 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 2.

and (2) Any advance deposit account wagering licensee that fails to remit the tax imposed by KRS 138.513, to remit returns required by KRS 138.530, or to maintain the Page 153 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO records required by KRS 138.530 or administrative regulations promulgated by the department, may have the license granted under KRS 230.260 suspended, revoked, or not renewed by the corporation[commission].

Page 154 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (4) The tax imposed by this section is due and payable to the department monthly and shall be remitted on or before the twentieth day of the next succeeding calendar month.

If a taxpayer's adjusted gross revenue for a Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY month is a negative number, the taxpayer may carry over the negative amount to the return filed for the subsequent month.

Page 155 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (8) The Kentucky Horse Racing and Gaming Corporation[Commission] 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 department.

Page 156 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (c) The sale of admissions, except:

CHAPTER 171 77 3.

and Page 157 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 5.

Page 158 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 1.

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

Page 159 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (an) Massage services, except when medically necessary;

and CHAPTER 171 79 (ax) Prewritten computer software access services.

This revolving fund shall consist of money allocated to the fund under the provisions of KRS 230.3615, together with any other money which may be contributed to or Page 160 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO allocated to the fund from all other sources.

(1) (a) In addition to the employees referred to in KRS 230.230, the president[executive director] of the corporation[racing commission] may employ, dismiss, or take other personnel action and determine the reasonable compensation of stewards, supervisors of mutuels, supervisors of sports wagering, veterinarians, inspectors, accountants, security officers, and other Page 161 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO employees deemed by the president[executive director] to be essential at or in connection with any horse race meeting and in the best interest of racing, or those deemed by the president[executive director] to be integral to the conduct of sports wagering.

Page 162 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (e) The corporation[racing commission], for the purpose of maintaining integrity and honesty in racing, shall prescribe by administrative regulation the powers and duties of the persons employed under this section and qualifications necessary to competently perform their duties.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (2) (a) The corporation[racing commission] shall promulgate administrative regulations for effectively preventing the use of improper devices at race meetings or in the conduct of sports wagering, and restricting or prohibiting the use and administration of drugs or stimulants or other improper acts to horses prior to the horse participating in a race.

(3) (a) The expenses of the corporation[commission] and the compensation of all employees referred to in this section shall be paid by the licensee conducting a horse race meeting or pari-mutuel wagering on live or historic horse racing, provided that the expenses of the corporation[commission] and the compensation of employees under this section related to administering the Page 163 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO system of sports wagering shall be paid by the sports wagering administration fund established in KRS 230.817.

A pharmacologist, selected from a list of three (3) submitted by the Page 164 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO University of Kentucky;

CHAPTER 171 81 (c) The council shall meet at the call of the chairman, a majority of the council, or at the request of the corporation[racing commission].

and Page 165 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (d) Report to the General Assembly any needed changes regarding the regulation of drugs in horse racing in the Commonwealth of Kentucky.

The corporation[racing commission] shall biennially make a full report to the General Page 166 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Assembly of its proceedings for the two-year period ending December 31 preceding the meeting of the General Assembly and may embody in the report such suggestions and recommendations as it deems desirable.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (d) The applicant or licensee has failed to disclose or has misstated information or otherwise attempted to mislead the corporation[racing commission] with respect to any material fact contained in the application for the issuance or renewal of the license;

Been convicted of any crime of moral turpitude, embezzlement, or Page 167 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO larceny, or any violation of any law pertaining to illegal gaming or gambling, or any crime that is inimical to the declared policy of the Commonwealth of Kentucky with regard to horse racing and pari-pari-mutuel mutuel wagering thereon;

Page 168 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (2) Shall be subject to all administrative regulations and conditions as may from time to time be prescribed by the corporation[racing commission];

CHAPTER 171 83 (d) The proposed hours of each racing day and the number of races to be conducted;

Page 169 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (e) The names and addresses of all principals associated with the applicant or licensee;

Page 170 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (c) A copy of the applicant's federal and state tax return for the previous year.

(6) The corporation[racing commission] may issue a license to conduct a horse race Page 171 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO meeting to any association making the aforesaid application if the applicant meets the requirements established in KRS 138.530 and other applicable provisions of this chapter, and if the corporation[racing commission] finds that the proposed conduct of racing by the association would be in the best interest of the public health, safety, and welfare of the immediate community as well as to the Commonwealth.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (8) The corporation[racing commission] may impose a fee and shall establish, by administrative regulation promulgated in accordance with KRS Chapter 13A, a fee schedule for association license applications.

provided, however, that no track that is granted overlapping dates for the conduct of a live race meeting with another horse racing track within a fifty (50) mile radius shall be permitted to have a post Page 172 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO time after 5:30 p.m., prevailing time for overlapping days between July 1 and September 15, unless agreed to in writing by the tracks affected.

(1) Every license granted under this chapter is subject to denial, revocation, or suspension, and every licensee or other person participating in Kentucky horse racing may be assessed an administrative fine and required to forfeit or return a purse, by the corporation[racing commission] in any case where it has reason to Page 173 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO believe that any provision of this chapter, administrative regulation, or condition of the corporation[racing commission] affecting it has not been complied with or has been broken or violated.

The president[executive director] or his or her designee shall issue a written decision granting or CHAPTER 171 85 denying the request for stay within five (5) calendar days from the time the application for stay is received Page 174 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO by the president[executive director] or his or her designee.

Page 175 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (g) The fact that a stay is granted is not a presumption that the ruling by the stewards is invalid.

(b) The corporation[racing commission] shall by administrative regulation Page 176 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO prescribe the conditions or factors by which an appeal may be determined to be frivolous.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (1) (a) The corporation[racing commission] shall promulgate administrative regulations governing and regulating mutuel wagering on horse races under what is known as the pari-mutuel system of wagering.

(3) The operation of a pari-mutuel system for betting, or the conduct of sports Page 177 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO wagering, where authorized by law shall not constitute grounds for the revocation or suspension of any license issued and held under KRS 242.1238 and 243.265.

(1) The commission, including the tax levied in KRS 138.510, deducted from the gross amount wagered by the association which operates a race track under the jurisdiction of the Kentucky Horse Racing and Gaming Corporation[Commission] and conducts the Thoroughbred racing at which betting is conducted through a pari-pari-mutuel mutuel or other similar system, in races where the patron is required to select one (1) horse, and the breaks, which breaks shall be made and calculated to the penny, except on races previously run in which the breaks shall be made and calculated to the penny or retained in the pari-mutuel pools, shall not be more than seventeen and one-half percent (17.5%).

(2) The commission, including the tax levied in KRS 138.510, deducted from the gross Page 178 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO amount wagered by the person, corporation, or association which operates a race track under the jurisdiction of the Kentucky Horse Racing and Gaming Corporation[Commission] and conducts Thoroughbred racing at which betting is conducted through a pari-mutuel or other similar system shall not exceed twenty-twenty-two 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 to the penny, except on races previously run in which the breaks shall be made and calculated 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);

(4) Each association conducting Thoroughbred racing shall pay to the corporation[racing commission] all moneys allocated to the backside improvement fund in an amount equal to one-half of one percent (0.5%) of its on-trackon- pari-track mutuelpari-mutuel wagers.

the original shall be retained by the corporation[racing commission] CHAPTER 171 87 and the copy shall be mailed to the sheriff of the county where the unclaimed pari-mutuel tickets are held.

It shall be the duty of the sheriff to post for not less than twenty (20) consecutive days a copy of the report on the courthouse door or the courthouse bulletin board, and to publish the copy in the Page 179 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO manner set forth by KRS Chapter 424.

The list shall be posted and published as required on or before October 1 of the year when it is made, and such posting and publishing shall be constructive notice to all holders of pari-pari-mutuel mutuel tickets which have remained unclaimed for a period of one (1) year from the time the ticket became payable.

Any person holding an unclaimed pari-mutuel ticket or any person holding the sum Page 180 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO represented by an unclaimed pari-mutuelpari- mutuel ticket, or any claimant thereto shall have the right to a judicial determination of the person's[his] rights under KRS 230.361 to 230.373 and nothing therein shall be construed otherwise;

and the corporation[racing commission] may institute an action to recover the sum represented by the unclaimed pari-mutuel tickets which are presumed abandoned whether said sum has been reported or not and may include in one (1) petition the sum represented by all the unclaimed pari-pari-mutuel mutuel tickets as defined herein within the jurisdiction of the court in which the action is brought.

Page 181 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Section 67.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY The corporation[racing commission], through its employees, may examine all records of any person where there is reason to believe that there has been or is a failure to report unclaimed pari-mutuel tickets.

Page 182 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Section 72.

(2) The plan shall be provided for the benefit of Thoroughbred trainers, assistant trainers, exercise riders, grooms, stable attendants, and other stable employees who Page 183 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO can demonstrate that they are not otherwise eligible to participate in any other private or public, nonself-funded retirement or pension plan.

CHAPTER 171 89 (a) For the exclusive purposes of providing benefits to plan members and their beneficiaries and defraying reasonable expenses of administering the plan;

The Governor of this Commonwealth is authorized and directed to execute a compact on Page 184 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO behalf of the Commonwealth with any of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and each territory or possession of the United States, legally joining therein in the form substantially as follows:

Establish uniform requirements among the party states for the licensing of participants in live racing with pari-mutuelpari- mutuel wagering, and ensure that all such participants who are licensed pursuant to this compact meet a uniform minimum standard of honesty and integrity.

ARTICLE II DEFINITIONS Page 185 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO SECTION 2.

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

If as a result of withdrawals Page 186 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO participation in this compact decreases to less than three (3) party states, this compact no longer shall be in force and effect unless and until there are at least three (3) or more party states again participating in this compact.

Determine which categories of participants in live horse racing, including but not limited to owners, trainers, jockeys, grooms, mutuel clerks, racing officials, Page 187 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO veterinarians, and farriers, and which categories of equivalent participants in dog racing and other forms of live racing with pari-mutuel wagering authorized in two (2) or more of the party states, should be licensed by the committee, and establish the requirements for the initial licensure of applicants in each such category, the term of the license for each category, and the requirements for renewal of licenses in each category.

The fingerprints of each applicant for a license from the compact committee shall be taken by the compact committee, its employees, or its designee and, pursuant to Page 188 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Public Law 92-544 or Public Law 100-413, shall be forwarded to a state identification bureau, or to an association of state officials regulating pari-mutuel wagering designated by the Attorney General of the United States, for submission to the Federal Bureau of Investigation for a criminal history record check.

CHAPTER 171 91 3.

Create, appoint, and abolish those offices, employments, and positions, including an executive director, as it deems necessary for the purposes of this compact, prescribe their powers, duties and qualifications, hire persons to fill those offices, employments and positions, and provide for the removal, term, tenure, compensation, fringe benefits, retirement benefits and other conditions of Page 189 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO employment of its officers, employees and other positions.

The compact committee shall adopt bylaws for the conduct of its business by a two-two-thirds thirds (2/3) vote of the total number of officials (or their alternates) on the committee at that time and shall have the power by the same vote to amend and rescind these bylaws.

The committee shall publish its bylaws in convenient form and shall file a copy thereof and a copy of any amendments thereto with the Page 190 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Secretary of State or equivalent agency of each of the party states.

ARTICLE V RIGHTS AND RESPONSIBILITIES OF EACH PARTY STATE Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY SECTION 11.

Reserves the right (i) to charge a fee for the use of a compact committee license in that state, (ii) to apply its own standards in determining whether, on the facts of a particular case, a compact committee license should be Page 191 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO suspended or revoked, (iii) to apply its own standards in determining licensure eligibility, under the laws of that party state, for categories of participants in live racing that the compact committee determines not to license and for individual participants in live racing who do not meet the licensure requirements of the compact committee, and (iv) to establish its own licensure standards for the licensure of nonracing employees at pari-mutuel racetracks and employees to separate satellite wagering facilities.

The Governor of this Commonwealth is authorized and directed to execute a compact on Page 192 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO behalf of the Commonwealth with any of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and each territory or possession of the United States, legally joining therein in the form substantially as follows:

(A) To enable member states to act jointly and cooperatively to create more uniform, effective, and efficient practices, programs, rules, and regulations relating to live pari-mutuel horse or greyhound racing and to pari-mutuelpari- mutuel wagering activities, both on-track and off-track, that occur in or affect a member state;

CHAPTER 171 93 (D) To permit officials from the member states to participate in this compact and, through the compact commission established by this compact, to enter into contracts with governmental agencies and other persons to carry out the purposes of this compact;

ARTICLE II DEFINITIONS Page 193 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO For the purposes of this compact, the following terms shall have the following meaning:

ARTICLE III Page 194 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO COMPOSITION AND MEETINGS OF COMPACT COMMISSION The member states shall create and participate in a compact commission as follows:

Any state that has adopted or authorized pari-mutuelpari- mutuel wagering or live horse or greyhound racing shall be eligible to become a party to this compact.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (D) The compact commissioner from each state shall participate as an agent of the state racing commission.

Page 195 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (E) Each member state, by its commissioner, shall be entitled to one (1) vote in the compact commission.

ARTICLE IV OPERATION OF COMPACT COMMISSION The compact commission is hereby granted, so that it may be an effective means to Page 196 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO pursue and achieve the purposes of each member state in this compact, the power and duty:

(F) To delegate day-to-day management and administration of its duties, as needed, to an executive director and support staff, such as the Association of Racing Page 197 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Commissioners International, Inc., or its successor;

Nothing in this provision shall prevent the compact commission from CHAPTER 171 95 paying obligations accrued in a prior year or from revising its finding of the benefit to a member state from the preceding year;

Page 198 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (B) To collaborate with national industry stakeholders and industry organizations, such as the Racing Medication and Testing Consortium, in the design and implementation of compact rules, fees, practices, and programs in a manner that serves the best interests of racing;

(D) To adopt compact rules, which shall have the force and effect of state rules or regulations in the member states who vote to adopt them, to govern all or any part of live pari-mutuel horse and greyhound racing or pari-mutuelpari- mutuel wagering activities;

The compact commission shall have the power and duty to investigate license applicants and, as Page 199 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO permitted by federal and state law, to gather information, including criminal history records from the Federal Bureau of Investigation and from state, local, and foreign country law enforcement agencies (including the Royal Canadian Mounted Police), necessary to decide whether an applicant meets its license requirements.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY ARTICLE VI OTHER POWERS AND DUTIES The compact commission may exercise such incidental powers and duties as may be necessary and proper for it to function in a useful manner, including but not limited to the power and duty:

(A) To enter into contracts and agreements with governmental agencies and other Page 200 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO persons, including officers and employees of a member state, to provide personal services for its activities and such other services as may be necessary;

Page 201 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (B) Gather information and engage in discussions with advisory committees, national industry stakeholders, and others to foster and conduct a collaborative approach in the design and advancement of compact rules in a manner that serves the best interests of racing and as established in the by-laws;

CHAPTER 171 97 (C) The establishment of a compact fee may include a requirement that a participant in live horse or greyhound racing with pari-mutuel wagering, as a condition of Page 202 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO continued participation, collect, hold, and remit to the compact commission funds that belong to a third party, with which it conducts related transactions, that is obliged to pay the compact fee.

(E) No member state, except as provided in Article XII of this compact, shall be held liable for the debts or other financial obligations incurred by the compact Page 203 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO commission.

Page 204 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (3) To apply its own standards for licensure or renewal of state applicants who do not meet the licensure requirements of the compact commission, who are within a category of participants in racing and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY wagering that the compact commission does not license, or who apply to the member state for a state license;

ARTICLE XI Page 205 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO ENFORCEMENT OF COMPACT (A) Any member state in the compact and the compact commission may initiate legal action in the United States District Court, in any federal district where the compact commission has an office, to enforce compliance by any member state or the compact commission with the compact provisions, by-laws, fees, findings, practices, and programs.

(B) Any member state in the compact and the compact commission may initiate legal action, in any state or federal court, to enforce the compact provisions, fees, practices, and programs against any person, including a non-membernon- member state or political subdivision.

The compact commission may, if it determines that any fees received by it were paid in error, and provided that an application for it is filed with the compact commission within one (1) year from the time the erroneous payment is made, correct the error by a refund, without interest, including from Page 206 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO other collected fees.

The compact commission shall have the benefit of the same limits of liability, defenses, rights to indemnity and defense by the state, and other legal rights and defenses for non-compact matters of the state racing CHAPTER 171 99 commission in the state.

(C) Each member state shall be liable for and pay judgments filed against the compact Page 207 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO commission to the extent related to its participation in the compact.

ARTICLE XIII RESTRICTIONS ON AUTHORITY (A) Notwithstanding anything to the contrary herein, the compact commission shall not adopt any practice, program, or rule that may change Kentucky requirements governing the amount and distribution of the takeout, retention, or breakages on intrastate wagers or that imposes licensure requirements for non-racing or non-non-wagering wagering employees of any racetrack or off-site wagering facility operating wholly within the state.

The provisions of this compact shall be severable and if any phrase, clause, sentence, or Page 208 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO provision of this compact is declared to be contrary to the Constitution of the United States or of any member state, or the applicability of this compact to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and its applicability to any government, agency, person, or circumstance shall not be affected.

In a geographic area containing more than oneLegislative (1)Research trackCommission withinPDF aVersion fiftyACTS PageOF 209THE ofGENERAL 282ASSEMBLY SB029990.100one -(1) 1682track -within XXXXa 4/12/2024fifty 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (50) mile radius of another track, intertrack wagering, except for quarter horse racing, shall be limited to simulcasting and wagering on racing of the same breed of horse as the receiving track was licensed to race on or before July 15, 1998.

(b) A track licensed to conduct harness racing may receive simulcasts and Page 210 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO conduct interstate wagering on all harness horse races (both final and elimination) having a final purse in excess of seventy-five thousand dollars ($75,000) without further consents or approvals.

(f) A track may also receive simulcasts and conduct interstate wagering on Thoroughbred horse races other than those described in paragraphs (a) and (e) of this subsection if the simulcast of these races has been approved by the Kentucky Thoroughbred Owners and Breeders Association, Inc., and the Page 211 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Kentucky Horsemen's Benevolent and Protective Association, for Thoroughbred races, and the Kentucky Harness Horsemen's Association, or its successor, for harness racing.

or CHAPTER 171 101 2.

Administrative regulations shall provide for the prevention of Page 212 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO practices detrimental to the public interest and to impose penalties for violations.

(d) No host track shall require that any receiving track or simulcast facility Page 213 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO receive the interstate simulcast.

(f) Each Thoroughbred track which desires to conduct interstate wagering pursuant to the provisions of this subsection shall during each year make application to the corporation[racing commission] for no less Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY than one hundred percent (100%) of the number of racing days awarded to the track in 1994 and one hundred percent (100%) of the number of races scheduled to be run by the track in 1993.

(g) Notwithstanding paragraph (f) of this subsection, any Thoroughbred track may apply for less than one hundred percent (100%) of the number of racing days awarded to the track in 1994 or one hundred percent (100%) of the number of races scheduled to be run by the track in 1993, if written approval is obtained from the Kentucky Horsemen's Benevolent and Protective Page 214 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Association and the Kentucky Thoroughbred Owners and Breeders Association, Inc.

However, if the race does not occur between the first awarded day of a live meet and the last awarded day of the same live meet, an additional twenty-five percent (25%) shall be retained by the receiving track where the interstate Page 215 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO wagering occurs;

(b) A harness host track which receives an interstate simulcast and conducts interstate wagering thereon during its live race meet shall offer the simulcasts Page 216 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO to all Thoroughbred receiving tracks not subject to the provisions of KRS 230.377(2), all harness tracks, and all simulcast facilities through the intertrack wagering system.

CHAPTER 171 103 (d) No host track shall require that any receiving track or simulcast facility receive the interstate simulcast.

(f) Each harness track which desires to conduct interstate wagering pursuant to the provisions of this subsection shall during each year make application to the corporation[racing commission] for no less than one hundred percent (100%) of the number of racing days awarded to the track in 1994 and one Page 217 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO hundred percent (100%) of the number of races scheduled to be run by the track in 1993.

Twenty-five percent (25%) to the harness host track designated by Page 218 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO paragraphs (a) and (e) of this subsection.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (4) (a) A Thoroughbred track licensed to conduct horse racing may receive interstate simulcasts of quarter horse, paint horse, Appaloosa, and Arabian horse races and conduct interstate wagering thereon, subject to the limitations stated in paragraph (b) of this subsection.

(b) A receiving track's commission on interstate wagering, after deduction of applicable taxes and any amounts required to be paid by contract to the track Page 219 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO from which the interstate simulcast originated, shall be split as follows:

(6) Other provisions of the Kentucky Revised Statutes notwithstanding, any track in a geographic area that contains more than one (1) track within a fifty (50) mile radius of any other track may only receive interstate simulcasts on racing of the same breed of horse as the track was licensed to race on or before July 15, 1998, except Page 220 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO any track may receive interstate simulcasts on quarter horse, paint horse, Appaloosa, or Arabian horse races.

A receiving track may Page 221 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO accept wagers through a telephone account wagering CHAPTER 171 105 system.

All moneys wagered by telephone account wagering shall be subject to the applicable pari-mutuel tax levied in KRS 138.510 and shall form a common pool with other pari-mutuel pools at the track for Page 222 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO each posted race.

(2) A track or tracks may proceed with the establishment of a simulcast facility unless, within sixty (60) days of the date on which the corporation[racing commission] Page 223 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO approved the facility, the governing body of the local government jurisdiction in which the facility is to be located votes, by simple majority of those voting, to disapprove the establishment of the simulcast facility.

in an urban-urban-county county government, the urban-county council, or in a charter county, the legislative body created in accordance with KRS 67.825 to 67.875.

The corporation[racing commission] may approve the establishment of one (1) simulcast facility within a radius of greater than fifty (50) miles but less than seventy-fiveseventy- Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY five (75) miles of a licensed track, but the facility shall not be approved to operate without the prior written consent of the licensed track within whose seventy-five (75) mile radius the facility is located.

Page 224 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (7) A simulcast facility shall not be subject to and shall not pay any excise tax imposed pursuant to KRS 138.510, or any license tax imposed under KRS 137.170.

and Page 225 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 5.

CHAPTER 171 107 All sums reported and paid to the corporation[racing commission] under the provisions of KRS 230.361 to 230.373 by any licensee conducting a harness race meeting shall be used by it for purses at harness racing events at county fairs within the Commonwealth of Kentucky that have been licensed and approved by it.

The corporation may[racing commission shall have the authority to] promulgate administrative regulations[ as may be Page 226 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO necessary] for the conduct of these races.

and one (1) member of the Kentucky Horse Page 227 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Racing and Gaming Corporation[Commission].

(b) The Kentucky Horse Racing and Gaming Corporation[Commission] shall employ qualified personnel as may be required to assist the corporation[racing commission] and the advisory committee in carrying out Page 228 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO the provisions of this section.

(4) The Kentucky Horse Racing and Gaming Corporation[Commission], 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, handicap, allowance, nonclaiming maiden races, and claiming Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY races contested at licensed Thoroughbred race meetings in Kentucky.

Page 229 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (b) Except for Thoroughbred horses foaled prior to January 1, 1980, the term "Kentucky-bred Thoroughbreds," for purposes of this section, shall mean and include only Thoroughbred horses sired by Kentucky Thoroughbred stallions foaled in Kentucky and registered as a Kentucky-bred Thoroughbred with the official registrar of the Kentucky Thoroughbred development fund.

When a Kentucky-Kentucky-bred bred Thoroughbred is registered with the official registrar, the registrar shall be authorized to stamp the Jockey Club certificate issued for the Thoroughbred with the seal of the registrar, certifying that the Thoroughbred Page 230 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO is a duly qualified and registered Kentucky-bred Thoroughbred for purposes of this section.

(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 corporation[racing commission], within thirty (30) days of such failure or refusal of the registrar, a petition seeking registration of the Thoroughbred.

(1) There is hereby created a trust and revolving fund for the Kentucky Horse Racing Page 231 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO and Gaming Corporation[Commission] designated the Kentucky quarter horse, paint horse, Appaloosa, and Arabian CHAPTER 171 109 development fund, consisting of money allocated to the fund under KRS 230.3771 together with any other money contributed to or allocated to the fund from all other sources.

and (c) Promulgate administrative regulations necessary to carry out the provisions of Page 232 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO this section.

and (b) Assist the corporation[commission] in determining the conditions, class, and quality of the fund-supportedfund- supported race program established to carry out the purposes of this section.

For the purposes of Page 233 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO this section, "purse fund" or" fund" means the Kentucky quarter horse, paint horse, Appaloosa, and Arabian purse fund.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (4) The Kentucky Horse Racing and Gaming Corporation[Commission] shall use the purse fund to promote racing and to provide purses for races conducted in the Commonwealth as follows:

(b) Fix the amount of money to be paid from the fund to be added to the purse Page 234 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO provided for each race by the licensed operator of the track;

Page 235 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO All harness racetracks licensed by the corporation[racing commission] shall not be required to pay the excise tax imposed under KRS 138.510(2), and the amount that would have been paid under those subsections shall be retained by the track to promote and maintain its facilities and its live meet.

For the purposes of this section, "development fund" or "fund" CHAPTER 171 111 means the Kentucky standardbred development fund.

(2) The Kentucky Horse Racing and Gaming Corporation[Commission] shall use the development fund to promote races, and to provide purses for races, for Kentucky-Kentucky-bred Page 236 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO bred standardbred horses.

(4) Money distributed from the development fund to licensed standardbred race tracks within the Commonwealth shall be used exclusively to promote races and provide purses for races conditioned to admit only Kentucky-bredKentucky- bred standardbred horses.

These Page 237 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO persons shall serve at the pleasure of the corporation[racing commission] and compensation shall be fixed by the corporation[racing commission].

and PageLegislative 238Research ofCommission 282PDF SB029990.100Version -ACTS 1682OF -THE XXXXGENERAL 4/12/2024ASSEMBLY 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (5) "Call center" means that portion of a qualified subscriber-based service that is physically located in the Commonwealth, where wagers are placed, received, or otherwise made by a customer subscriber base through accounts established with the operator of the hub.

(1) Notwithstanding KRS 230.361(1), a licensee may operate the hub either independently or in association with one (1) or more racetracks licensed by the corporation[racing commission] to run live races and conduct pari-mutuelpari- mutuel wagering in Kentucky.

(4) The corporation[racing commission] may conduct investigations or inspections or Page 239 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO request additional information from any applicant as it deems appropriate in determining whether to approve the license application.

Page 240 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO The corporation[racing commission] or its staff shall, upon request, be given access, for review and audit, to all records and financial information of the hub operator, including all account information.

CHAPTER 171 113 (1) There is hereby created in the State Treasury a trust and revolving fund designated as the "Kentucky Thoroughbred breeders incentive fund." The fund shall be administered by the Kentucky Horse Racing and Gaming Corporation[Commission].

(c) The Department of Revenue may promulgate administrative regulations Page 241 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO establishing the procedures necessary to determine the correct allocation of sales tax receipts described in subsection (1) of this section.

(b) The Kentucky Horse Racing and Gaming Corporation[Commission] shall promulgate administrative regulations establishing the conditions and criteria Page 242 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO for the distribution of moneys from the fund.

The money deposited in the fund is hereby appropriated for the Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY uses set forth in this section.

(2) (a) The Kentucky Horse Racing and Gaming Corporation[Commission] shall use moneys deposited in the Kentucky horse breeders incentive fund to administer the fund and provide rewards for breeders or owners of horses bred Page 243 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO and foaled in Kentucky.

The corporation[racing commission] may provide temporary licenses to licensed facilities for sports wagering or sports wagering service providers, if the corporation[commission] Page 244 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO deems that the information submitted by them is sufficient to determine the applicant's suitability.

A sports wagering licensee or service provider may use information obtained from third parties to verify that a person is authorized to open Page 245 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO an account, place wagers, and make deposits and withdrawals;

CHAPTER 171 115 (c) A sports wagering licensee or service provider shall adopt an account registration policy to ensure that all patrons are authorized to place a wager with a sports wagering licensee or service provider within the Commonwealth of Kentucky.

(g) A sports wagering licensee or service provider shall utilize geolocation or Page 246 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO geofencing technology to ensure that wagers are only accepted from patrons who are physically located in the Commonwealth.

Page 247 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (b) A simulcast facility may offer sports wagering through an agreement with a track by using any of that track's already established service providers.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (b) College sporting events sanctioned by the National Collegiate Athletic Association, the National Association of Intercollegiate Athletics, or other collegiate athletic body recognized by the corporation[racing commission];

After giving due consideration to all comments received, the corporation[racing commission] shall grant the request if the requesting body demonstrates good cause that this type, form, or category of sports wagering Page 248 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO is likely to undermine the integrity or perceived integrity of the sport's governing body or covered sporting events of that body.

(3) In addition to the requirement in subsection (2) of this section, an initial fee of five hundred thousand dollars ($500,000) shall be paid to the corporation[racing Page 249 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO commission] before a sports wagering license may be issued to a track.

and CHAPTER 171 117 (b) A person that is deemed to have control over the applicant.

Each person associated with a noncorporate applicant or licensee that directly or indirectly holds a beneficial or proprietary interest in the noncorporate applicant's or licensee's business operation or that the director otherwise determines has the ability to control the noncorporate Page 250 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO applicant or licensee;

Page 251 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (2) As used in this section, "participant" includes:

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (3) Any person who violates KRS 230.680 shall be guilty of a Class A misdemeanor.

(5) Any person failing to appear before the corporation[racing commission] at the time and place specified in the summons issued pursuant to KRS 230.260(12), or Page 252 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO refusing to testify, shall be guilty of a Class B misdemeanor.

Page 253 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Any license may be revoked or suspended for the following causes:

CHAPTER 171 119 (a) The sale of lottery tickets sold under the provisions of KRS Chapter 154A;

(b) The operation of a pari-mutuel system for betting, or the operation of sports Page 254 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO wagering, where authorized by law;

The council shall Page 255 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO act in an advisory capacity to the Commissioner in all matters pertaining to the administration of the department's fair program.

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (5) To qualify for a grant of state funds, a fair shall meet standards set by the Commissioner and his advisory council whose approval may be given only if the fair:

Page 256 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (b) Presents, through the medium of youth organizations such as 4-H clubs, Future Farmers of America, and other similar organizations, an educational program concerning the production and marketing of the livestock, poultry, and horse industries;

If approved, the board shall promulgate administrative regulations establishing the standards within thirty (30) days of Page 257 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO approval.

or (c) The Board of Agriculture to prevent, control, or eradicate any communicable disease of on-farm livestock or poultry as provided by this chapter and the administrative regulations promulgated under this chapter, or any other law Page 258 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO applicable to the prevention, control, or eradication of communicable diseases of on-farm livestock or poultry.

(5) (a) A city, town, county, urban-county, charter county, consolidated local government, unified local government, or other political subdivision of the Commonwealth shall not adopt any ordinance, resolution, rule, or regulation regarding on-farm livestock or poultry care that is more stringent than the CHAPTER 171 121 administrative regulations promulgated by the board under subsection (1) of this section.

Page 259 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (c) One (1) representative of the University of Kentucky College of Agriculture Equine Initiative to be designated by the dean of the University of Kentucky College of Agriculture;

and Page 260 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 2.

Thereafter, terms shall be for four (4) years or until their successors are duly appointed and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY qualified.

Page 261 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (b) The Kentucky Board of Veterinary Examiners to license and certify veterinarians as provided by KRS Chapter 321, administrative regulations promulgated under KRS Chapter 321, or any other law applicable to the regulation of veterinarians in the Commonwealth;

or Page 262 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 2.

or CHAPTER 171 123 b.

Page 263 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (d) The privilege provided by this subsection is waived by the client or the owner of an animal treated by the veterinarian to the extent the client or owner places at issue in a civil or criminal proceeding:

Page 264 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Section 108.

(4) (a) "Coin-operated amusement machine" means a lawful machine or device that requires the direct or indirect payment of consideration, including but not limited to the insertion of a coin, currency, ticket, token, or similar object, or the depositing of funds with the operator or owner of the device, and that Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY contains no material element of chance and automatically, by or through some mechanical operation, affords music or amusement of some character with or without vending any merchandise, but in addition to any merchandise.

Page 265 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (b) A coin-operated amusement machine shall not deliver or entitle the person playing or operating the game to receive cash, cash equivalents, gift cards, or vouchers, billets, tickets, tokens, electronic credits or any item that can be exchanged for cash, cash equivalents, gift cards, merchandise, or something of value, unless otherwise provided under this section.

Two (2) or more participants or teams of participants compete directly against each other for entertainment and prizes in the same video game Page 266 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO at the same time, typically for spectators;

or CHAPTER 171 125 5.

Page 267 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (7) (a) "Gambling device" means:

Any electronic, computerized, or mechanical contrivance, terminal, Page 268 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO machine, or other device that:

The maximum number of free games that can be won, registered, Page 269 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO or accumulated at one (1) time in operation of any pinball machine shall not exceed thirty (30) free games.

Nonetheless, a pinball machine shall be a gambling device if a person gives or promises to give money, tokens, merchandise, premiums, or property of any kind for scores, Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY combinations, or free games obtained in playing the pinball machine in which the person has an interest as owner, operator, keeper, or otherwise;

Page 270 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO and (b) A gift enterprise or referral sales plan which meets the elements of a lottery listed in paragraph (a) of this subsection is to be considered a lottery under this chapter;

Page 271 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO (14) "Skill-based contest" means a live, in-person competitive event among two (2) or 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;

CHAPTER 171 127 (1) "Advancing gambling activity" -- A person "advances gambling activity" when, acting other than as a player, he or she engages in conduct that materially aids any form of gambling activity.

(2) "Bookmaking" means advancing gambling activity by unlawfully accepting bets Page 272 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO upon the outcome of future contingent events from members of the public as a business;

Redeemable vouchers are not redeemable for any merchandise prize that has a wholesale value of more than twenty-five dollars ($25) times the fewest number of single plays necessary to accrue the redeemable Page 273 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO vouchers required to obtain that prize;

and Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY 6.

(6) (a) "Gambling" means staking or risking something of value upon the outcome of a contest, game, gaming scheme, or gaming device which is based upon an element of chance, in accord with an agreement or understanding that Page 274 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO someone will receive something of value in the event of a certain outcome.

Any mechanical or electronic device permanently located in a business establishment, including a private club, that is offered or made available to a person to play or participate in a simulated gambling program in return for direct or indirect consideration, including but not limited to consideration paid for Internet access or computer time, or a sweepstakes entry, which when operated may deliver as a result of the application of any element of chance, regardless of whether the result is also partially or predominantly based on skill, any money or property, or by the operation of which a person may become entitled to receive, as Page 275 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO the result of the application of any element of chance, regardless of whether the result is also partially or predominantly based on skill, any money or property;

Devices dispensing or selling combination or French pools on licensed, Page 276 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO regular racetracks during races on said tracks;

CHAPTER 171 129 2.

Page 277 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO 7.

A person who engages in "bookmaking" as defined in subsection (2) of this section is not a "player." The status of a "player" shall be a defense to any Page 278 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO prosecution under this chapter;

Legislative Research Commission PDF Version ACTS OF THE GENERAL ASSEMBLY (13) "Skill" means the knowledge, dexterity, or any other ability or expertise of a natural person;

(1) Any person who, either for himself or as agent or employee of another, wagers money or anything of value on a horse race run or about to be run or advertised, posted, or reported as being run at any race track in or out of this state, or who Page 279 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO engages in the occupation of receiving, making, transmitting, or negotiating, either in person or by messenger, telephone, or telegraph, wagers on horse races run or about to be run or advertised, posted, or reported as being run or about to be run at any race track in or out of the state, shall, except in the case of wagers made within the enclosure of a race track licensed by the Kentucky Horse Racing and Gaming Corporation[Commission] during an authorized race meeting at that track, or an enclosure during regular meetings in which running, trotting, or pacing races are being conducted by associations regularly organized for that purpose, be guilty of a Class A misdemeanor.

Thereafter, the president shall be appointed as authorized by this Page 280 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO Section 7 of this Act.

It is the intent of the General Assembly that the amendments to statutes in this Act to change the names of agencies and officers to effectuate the creation and authority of the Kentucky Horse Racing and Gaming Corporation shall not serve to void amendments in other bills enacted during the 2024 Regular Session, which are not CHAPTER 171 131 in conflict with the reorganization effectuated by this Act and can be given effect and incorporated in a manner that will make the section intelligible, regardless of whether this Act is enacted before or after those other Acts.

Whereas racing and gaming are crucial to the Commonwealth's economy, and strict regulation of racing and gaming is needed to prevent fraud and Page 281 of 282 SB029990.100 - 1682 - XXXX 4/12/2024 4:05 PM Vetoed and Overridden UNOFFICIAL COPY 24 RS SB 299/VO criminal activity, an emergency is declared to exist, and Sections 1, 2, 4 to 10, 12, 29 to 31, 33, 35, 38 to 102, 104 to 108, and 110 to 114 of this Act take effect July 1, 2024.

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