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HB2

09SS

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HB 2/LM/CI (BR 41) - G. Stumbo

     AN ACT relating to the Kentucky Lottery, directing the use of proceeds therefrom, and making an appropriation therefor.
     Direct the General Assembly to enact legislation to expand the Kentucky Lottery by authorizing the use of video lottery terminals at Kentucky racetracks; permit the General Assembly to appropriate the money generated by video lottery terminals.

HB 2 - AMENDMENTS


     HCS/LM/CI - Create a new section of KRS Chapter 154A to set forth legislative findings; amend KRS 154A.010 to define "approved track," "authority," "gross terminal revenue," "licensee," "manufacturer," "net terminal revenue," "video lottery games," "video lottery terminals," and "racetrack"; amend KRS 154A.030 to restrict lottery directors from holding financial interests in licensee; amend KRS 154A.040 to conform; amend KRS 154A.050 to designate lottery board 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 licensee; amend KRS 154A.090 to provide appeal rights; amend KRS 154A.110 to include unclaimed 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 members and applicant or licensee; limit video lottery terminal operators to horse racing tracks and specify operating requirements of tracks; specify track licensing requirements and fee; 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 trust fund; assign Cabinet for Health and Family Services responsibility to regulate problem gamblers awareness and treatment fund; provide for distribution of video lottery terminal net revenue; create the regional tourism and infrastructure development fund; provide distribution of track video lottery net revenue; create the Kentucky Equine Breed Authority, provide its funding, and establish funding parameters; provide that operation of video lottery games other than those authorized by this Act is gambling; define "cheat"; amend KRS 230.210 to specify track requirements; amend KRS 230.300 to specify that no new track shall be located within sixty miles of an existing track, nor shall there be more than nine tracks approved; 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 of KRS Chapter 137 to exempt video lottery terminal revenues from license, excise, special, or franchise taxes; amend KRS 139.531 and 139.470 to exempt sales tax on select items related to equine farming; amend KRS 141.010 to exempt military pay from state income tax; create a new section of KRS Chapter 154A to provide an exemption from federal statutes prohibiting shipment of gambling devices; amend KRS 154A.650 to require criminal background checks by the lottery; provide legislative intent to use a portion of the proceeds of this Act to fund education programs; create a new section of KRS Chapter 141 and amend KRS 141.0205 to provide an income tax credit; amend KRS 141.0401 to exempt net terminal revenue from limited liability entity tax; provide that final judgments overturning Sections 20, 21, 32, or 33 shall render Sections 58, 59, 60, 64, 65, and 66 void; sections 58, 59, and 60 to take effect January 1, 2011; declare an emergency for Sections other than 58, 59, and 60.

     HCA (1, R. Rand) - Increase the term for the initial license for racetracks approved to operate video lottery terminals to 10 years.

     HCA (2/Title, R. Rand) - Make title amendment.

     HFA (1, J. DeCesare) - Delete all provisions of the bill except for the authorization of the sales tax exemptions for the equine industry, the income tax credit for 50% of the ad valorem taxes paid by individuals on motor vehicles, and the exemption from individual income tax for military pay received by active duty members of the Armed Forces of the United States, members of reserve components of the Armed Forces of the United States, and members of the National Guard.

     HFA (2/Title, J. DeCesare) - Make title amendment.

     HFA (3, J. Hoover) - Create a new section of KRS Chapter 337 to exempt public authorities that construct elementary, secondary, or postsecondary buildings and facilities from the requirement to pay prevailing wages on these construction projects; make the exemption effective for fiscal years 2009-2010, 2010-2011, and 2011-2012; limit the prevailing wage exemption to construction projects with contracts that become effective on or after July 1, 2009; end the exemption on June 30, 2012.

     HFA (4, E. Ballard) - Create a new section of KRS Chapter 154A to allow qualified service organizations to operate video lottery terminals under the authority of the lottery corporation; define a "qualified service organization" as a nonprofit social, fraternal, military, or political organization that has been a licensed charitable organization under KRS Chapter 238 for five years; require that a qualified service organization also operate an approved location with a private room or rooms available only to members of the organization and from which the general public is excluded; define an "approved location" as one operated by a qualified service organization where both charitable gaming and video lottery terminals have been approved; authorize the corporation to determine the eligibility and number of video lottery terminals at each qualified service organization approved location; exclude the operation of video lottery terminals by a qualified service organization from the definition of charitable gaming under KRS Chapter 238; direct that if a qualified service organization loses its charitable gaming license, it is ineligible to operate video lottery terminals; limit operation of video lottery terminals by a qualified service organization to approved location private rooms to be played by legally eligible members of the organization; grant the corporation the same powers and duties regarding video lottery terminals at qualified service organizations as under the rest of the chapter unless otherwise indicated; set the initial 5-year license fee at $10,000, payable in annual installments; make subsequent annual license fees $1,000 per year; require the corporation to ensure an average annual payout of at least 85% from video lottery terminals at each qualified service organization approved location; retain 5% of the net terminal revenue for the corporation's expenses; mandate that the qualified service organization use the remaining net terminal revenue for charitable purposes consistent with its licensed charitable purpose under KRS Chapter 238.

     HFA (5, M. Dossett) - Delete all provisions of the bill except for the exemption from individual income tax for military pay received by active duty members of the Armed Forces of the United States, members of reserve components of the Armed Forces of the United States, and members of the National Guard; amend or repeal various sections of the KRS to remove the prevailing wage provisions.

     HFA (6/Title, M. Dossett) - Make title amendment.

     HFA (7, A. Wuchner) - Create a new section of KRS Chapter 154A to require that the location of video lottery terminals at approved tracks first be approved by a referendum vote in the county, charter county, urban-county, consolidated local government, or unified local government in which the horse track is located; prohibit approved tracks from applying for a license to conduct video gaming until a majority of voters in the jurisdiction where the track is located have approved the conduct of video gaming; require the county clerk to make an order on the order book of the court directing an election to be held in that territory; require the respective jurisdiction to bear the cost of the election and to conduct it according to general election laws.

     Jun 15-introduced in House; to Appropriations & Revenue (H); taken from Appropriations & Revenue (H); 1st reading; returned to Appropriations & Revenue (H)
     Jun 16-posted in committee; taken from Appropriations & Revenue (H); 2nd reading; returned to Appropriations & Revenue (H)
     Jun 18-reported favorably, to Rules with Committee Substitute, committee amendments (1) and (2-title) ; floor amendments (1) (3) and (4) filed to Committee Substitute, floor amendment (2-title) filed ; placed in the Regular Orders of the Day for Friday, June 19, 2009
     Jun 19-floor amendments (5) (6-title) and (7) filed ; 3rd reading; floor amendment (4) ruled out of order ; floor amendment (1) defeated ; passed 52-45 with Committee Substitute, committee amendments (1) and (2-title)
     Jun 22-received in Senate; to Appropriations & Revenue (S)

Vote History
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