AN ACT relating to electronic gaming at racetracks as a part of the state lottery.
     Establish Chapter 230A of Kentucky Revised Statutes to authorize electronic gaming to be supervised by the Kentucky Lottery Corporation; make findings regarding gaming as a part of the state lottery; add numerous definitions; provide that electronic gaming shall be a part of the state lottery; clarify that authority of the Racing Commission shall not be diminished; appoint 8 member advisory board from the Lottery Corporation and the Racing Commission to oversee electronic gaming at tracks; set duties of the Lottery Corporation regarding oversight and enforcement of the chapter; provide that the Lottery Corporation shall investigate qualifications of applicants and supervise licensing of applicants; authorize the Lottery Corporation to issue emergency orders in extreme circumstances, and provide for hearing after issuance of emergency order; authorize the Lottery Corporation to promulgate administrative regulations consistent with this chapter; provide that the Lottery Corporation shall have all powers necessary to implement the provisions of this chapter; prohibit gaming manufacturers and distributors from placing equipment in this state unless approved by the Lottery Corporation; require that all equipment be tested and approved by the Lottery Corporation before placement in this state; provide exemption from certain local zoning requirements; prohibit a racetrack from engaging in electronic gaming if an owner sells property, goods or services relating to electronic gaming to eligible associations or the Lottery Corporation; set forth application and licensing information requirements, including criminal background checks; set qualifications and limitations on licenses issued by the Lottery Corporation; require that license holders assure that there will be no net reduction in racing days in order to receive a license to conduct electronic gaming; set conditions for suspension or revocation of electronic gaming device (EGD) operator licenses under this chapter; prohibit the transfer of licenses without the approval of the Lottery Corporation; require that gaming devices only be acquired from licensed manufacturers or distributors; provide for training of all licensees and personnel, and set requirements for training components; authorize EGD operators to determine the number of machines and hours of operation; allow the Lottery Corporation and the Racing Commission access to all records of the EGD operator; require EGD operator to file change of officers or directors and give the Lottery Corporation 30 days to approve; require EGD operator to provide tax returns to the Lottery Corporation; set forth stringent internal controls to be adopted by EGD operators; provide for licensing of EGD employees by both the Lottery Corporation and the Racing Commission, but require that parties seek to adopt a single employee license under the control of the Racing Commission; authorize a fee for the single license; prohibit EGD manufacturers from operating unless licensed by the Lottery Corporation; set criteria to be followed by EGD operators and manufacturers in reporting violations of law and conducting gaming activities; prohibit persons under 21 from playing EGDs or being employed as an EGD employee; provide procedure for resolution of disputes between the Lottery Corporation and the Racing Commission; provide that the transport of EGD equipment into the state shall not be a violation of federal law; set out criminal penalties for violations of laws regarding electronic gaming; provide that certain nonsupervisory employees of EGD operators be authorized to continue collective bargaining agreements; include a local option provision; amend KRS 154A.010 to add definition of lottery ticket; amend KRS 154A.030 to allow certain meetings to be closed in certain circumstances pertaining to an applicant or license holder under KRS Chapter 230A; amend KRS 154A.040 to exempt certain records of the Lottery Corporation from those that are deemed open records and subject to public inspection; amend KRS 154A.050, 154A.060, 154A.063, 154A.070, 154A.080, 154A.090, 154A.110, 154A.130, 154A.420, 154A.650 to conform to KRS Chapter 230A; amend KRS 230.260 to clarify that the Racing Commission shall have all powers needed to enforce the provisions of this Act and that the Racing Commission can charge a fee for all licenses issued, including those under KRS Chapter 230A; amend KRS 230.310 to provide for EGD employee license by the Racing Commission; amend KRS 230.378 to set out the commission splits on quarter horse races in the absence of a valid contract with a horsemen's organization; amend KRS 243.500, 243.505, 525.090, 528.010, and 528.100 to include references to KRS Chapter 230A; provide that upon the effective date of this Act various state agencies, including the Lottery Corporation, the Racing Commission, and the Department of Charitable Gaming shall meet and establish a comprehensive and unified approach for the education, prevention, and treatment of problem gambling, and provide a report and recommendations be presented at least 120 days before the next session of the General Assembly; include a severability clause.

     (Prefiled by the sponsor(s).)

     Jan 6-introduced in House; to Licensing and Occupations (H)