HB 158/LM (BR 43) - G. Stumbo, D. Osborne, S. Westrom
AN ACT relating to the Kentucky lottery and making an appropriation therefor.
Create new section of KRS Chapter 154A to set forth legislative findings; amend KRS 154A.010 to define "approved track," "authority," "gross terminal revenue," "licensee," "net terminal revenue," "video lottery games," "video lottery terminals," "principal," and "racetrack"; amend KRS 154A.030 to restrict lottery directors from holding financial interests in licensees; amend KRS 154A.040 to conform; amend KRS 154A. 050 lottery board to serve as board of appeals in licensing; amend KRS 154A.060 to require financial reporting on video lottery terminal revenue; amend KRS 154A.063 to exempt video lottery games approved by the corporation; amend KRS 154A.070 establishing lottery president's responsibilities; amend KRS 154A.080 to limit lottery employees' relationship with licensees; amend KRS 154A.090 to provide appeal rights; amend KRS 154A.110 to include unclaimed video lottery prize money and restrict members of the lottery corporation from playing video lottery games; amend KRS 154A.130 to exempt video lottery revenues from deposit into the corporate operating account; amend KRS 154A.420 to include proceeds of video lottery terminal games in lottery proceeds held by lottery retailers; create new sections of KRS Chapter 154A to restrict access to video lottery terminals to individuals over 21 years of age; specify powers of corporation relating to conduct and operation of video lottery games; limit ex parte communication between board of directors and applicant or licensee; limit video lottery terminal operators to horse racing tracks and specify operating requirements of tracks; specify track licensing requirements; specify supplier license requirements; specify occupational license requirements; specify technical requirements for video lottery terminals; create the video lottery distribution trust fund; create the problem gamblers awareness and treatment fund; create the drug and alcohol addiction rehabilitation trust fund; assign Cabinet for Health and Family Services responsibility to regulate problem gamblers awareness and treatment fund; provide for the distribution of video lottery terminal net revenue; create the county jail assistance trust fund; provide distribution of track video lottery terminal net revenue; provide that operation of video lottery games other than those authorized by this Act is gambling; eliminate ad valorem tax for state purposes on motor vehicles and motorboats; amend KRS 134.800 and 134.805 to eliminate county clerk's fee for collecting state motor vehicle ad valorem tax; amend KRS 134.810 to state portion of ad valorem tax on motor vehicles and vehicles held for sale by dealer; amend KRS 134.815 to eliminate requirement for county clerk to deposit state collections on motor vehicle ad valorem taxes; amend KRS 134.820, 186.020, 186A.035, and 235.066 to conform; amend KRS 243.500 and 243.505 to exempt video lottery games; amend KRS 525.090 to exempt video lottery games from loitering provision; amend KRS 528.010 to exempt video lottery games from gambling definition; amend KRS 154A.990 to provide penalties; amend KRS 68.180, 68.197, and 91.200 to exempt net terminal revenue from license tax; amend KRS 92.281 to prohibit assessing licensing fees on video lottery terminal receipts; amend KRS 92.300 to exempt video lottery terminal revenue from local license tax; amend KRS 132.208 to exempt video lottery terminals and video lottery games from state and local ad valorem taxes; create a new section KRS Chapter 137 to exempt video lottery terminal revenues from license, excise, special, or franchise taxes.
HB 158 - AMENDMENTS
HCS/FN/LM/CI - Retain original provisions of the bill, except to make technical corrections and increase the number of lottery board members to 12, requiring the executive director of the Kentucky Horse Racing Authority to serve ex officio, require one member to be an attorney, one member a certified peace officer, and one an accountant; restore original language to Section 10; include legislative agents in list of those who may not initiate ex parte communication with board members; permit temporary facilities; prohibit operating video lottery terminals on recognized race days when races are not run; require approved tracks to specify the planned days and hours of operation of video lottery terminals; require existing collective bargaining agreements at tracks to apply to similar nonsupervisory positions at the track directly related to operation of video lottery terminals; establish application fees for each track, allow fees to be paid over a five year period with equal amounts paid in each year, applicants required to identify principals owning a 5% or greater interest; specify that supplier's licensing and renewal fee shall not exceed $5,000; create a new section of KRS Chapter 154A to specify requirements for a supplier's license application; change state share of net terminal revenue to 28% for the first five years, increasing to 38% after five years for tracks receiving over $100 million in net terminal revenue; specify funds to offset sales tax exemption for horse farming; specify funds to offset exemption on state taxes on military income tax; establish regional tourism and infrastructure development fund; reduce amounts identified for the drug and alcohol addiction rehabilitation fund and the county jail assistance trust fund and specify funds for county jails to be based on percentage of jail beds in county; define "cheat" and provide penalties for cheating at video lottery terminal games; specify that county clerks will continue to receive the fee for collecting state motor vehicle property tax until the elimination of the tax and fund through specified funds afterwards; add penalty for fraudulent use of a stolen or altered lottery or video lottery terminal ticket or voucher; add new section to exempt sales tax on items used in horse farming as a business; add a new section to exempt income tax on members of active duty armed services, reserve components, and National Guard; provide exemption from federal statutes prohibiting shipment of gambling devices; add a new section on criminal background checks by the lottery.
HCA (1/Title, D. Keene) - Make title amendment.
Jan 9-introduced in House
Feb 3-to Licensing & Occupations (H)
Feb 11-posting waived
Feb 12-reported favorably, 1st reading, to Calendar with Committee Substitute, committee amendment (1-title)
Feb 13-2nd reading, to Rules; recommitted to Appropriations & Revenue (H)
Mar 2-posting waived
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