09RS House Bill 32

House Bill 32

Actions

Last Action	to Licensing & Occupations (H)
Title	AN ACT relating to video lottery terminals, making an appropriation therefor, and declaring an emergency.
Bill Documents	Bill
Impact Statements	Corrections Impact Local Mandate
Bill Request Number	73
Sponsor	T. Burch
Summary of Original Version	Create new sections of KRS Chapter 154A to establish video lottery terminals at licensed racetracks and in each county that authorizes video lottery terminals by a vote of the people of the county; direct the Lottery Corporation to purchase any video lottery terminals utilized in Kentucky; require that persons wishing to operate video lottery games allotted to counties obtain a contract from the Lottery Corporation after having acquired prior approval from the local governing board where the terminals will be located; place the oversight of the games under the jurisdiction of the Lottery Corporation; limit the number of video lottery terminals to 25 at any one premises unless the premises is a racetrack or a qualifying hotel; set qualifying hotels as those within five miles of a convention center or facility that seats 2,000 or more people; allow these hotels to operate up to 75 video lottery terminals; establish that the three types of video lottery terminal allocation are racetracks, uniform county allotment, and county allotment based on population; limit racetrack allocation to a set formula, uniform county allotment to 50 per county, and a total county population allotment to 6,000 video lottery terminals distributed to the counties proportionate to population; establish the duties and responsibilities of the corporation, its agents, and its employees; prohibit ex parte communications between lottery board members and contract holders, licensees, and applicants for such contracts or licenses; allocate a base number of 500 video lottery terminals to each licensed racetrack; grant additional video lottery terminals to each track based on the number of days of live racing held at the track; set additional allotment at 15 video lottery terminals for each race day run beyond 30 and up to 50 race days, with an additional 10 video lottery terminals for each race day beyond 50 race days; prohibit operation of video lottery terminals on race days at the track where the live racing is being conducted from 30 minutes before the post time of the first race of the day until after the last race of the day has been run; allow a track to lease its machines to another track located in the same county; require tracks to run the same number of race days as in 2008 to remain eligible for video lottery terminals, with exemptions for extreme circumstances; prohibit any person less than 21 years of age from being on the premises or any portion of the premises where video lottery games are conducted; establish qualifications and responsibilities of video lottery retailers and licensees; list grounds by which a video lottery retailer or applicant may have his or her contract rescinded, revoked, suspended, or not renewed; permit the corporation to issue temporary licenses; prohibit the transfer of licenses without obtaining prior approval from the corporation; create an exemption to allow facilities developed for video lottery gaming activities to be considered permitted uses for zoning purposes; maintain other applicable zoning and building codes; specify how the moneys earned from the conduct of video lottery games are expended; cap the amount the corporation may spend on administrative and operating expenses to no more than seven percent of net terminal income; pay the lesser of 0.25% or $2,000,000 to the compulsive gamblers' assistance fund, and the lesser of 0.4% or $3,000,000 to develop testing methods to detect growth hormones and performance-enhancing or illegal drugs in racehorses; allot the lesser of 0.3% or $3,000,000 of the net terminal income from racetracks to conduct post-race testing of racehorses for illegal drugs; devote remaining moneys to education, Medicaid matches, prescription drug program for seniors, equine industry program, video lottery retailers, budget reserve fund, and county governments where video lottery games are located; require the Auditor of Public Accounts to conduct an annual audit of the corporation's disbursements and expenditures; create a committee to conduct a study on video lottery games operating in the state and their impact on the economy; indicate the committee's membership; direct each county to conduct a local option election on video lottery terminals at the next general election that occurs more than 90 days after video lottery terminals are authorized generally; allow for subsequent elections on the issue after at least three years have passed since the last referendum; make racetrack employee collective bargaining agreements for nonsupervisory employees applicable to the track's video lottery terminal employees; generate a list by which undesirables may be ejected or excluded from any premises where video lottery games are being conducted; set out criteria to be used in making a determination as to whether or not such persons should be excluded or ejected; allow an individual to have himself or herself voluntarily added to the exclusion list; require the commission to notify a person placed on the exclusion or ejection list; establish a procedure by which a person ejected or excluded may appeal the decision to eject him or her; define the term "cheat" and establish penalties for persons who cheat; create the compulsive gamblers assistance fund; determine how expenditures from the compulsive gamblers assistance fund will be utilized; require the commission to prepare an annual report detailing activities and expenditures of the compulsive gamblers assistance fund; encourage video lottery retailers to cooperate with local business and community organizations to stimulate the economy through tourism; make the Lottery Corporation's board members, executive director, and employees subject to the executive branch code of ethics; amend KRS 154A.010; 154A.030, 154A.040, 154A.050, 154A.060, 154A.063, 154A.070, 154A.080, 154A.090, 154A.110, 154A.130, 154A.400, 154A.420, 154A.650, 230.357, 230.550, 243.500, 243.505, 525.090, 528.010, 528.100, 154A.990, and 15.380 to conform; EMERGENCY.
Index Headings of Original Version	Appropriations - Video lottery terminals, net terminal income for state budget purposes, dispersal of Budget and Financial Administration - Video lottery terminals, net terminal income for state budget purposes, dispersal of Counties - Video lottery terminals, county referendum on placement of Economic Development - Video lottery terminals, implementation as a tourist attraction Elections and Voting - Video lottery terminals, county referendum on placement of Gambling - Video lottery terminals, race track and county placement of Licensing - Video lottery terminals, license categories for Local Government - Video lottery terminals, county referendum on placement of Lottery - Video lottery terminals, lottery corporation oversight Occupations and Professions - Video lottery terminals, occupational licenses Racing - Video lottery terminals, licensed racetracks, eligibility to operate Tourism - Video lottery terminals, implement action as a tourist attraction Corrections Impact - Video lottery terminals, licensed racetracks, eligibility to operate Local Mandate - Video lottery terminals, net terminal income for state budget purposes, dispersal of

10/15/08	Prefiled by the sponsor(s).
01/06/09	introduced in House
01/07/09	to Licensing & Occupations (H)