| Last Action | 03/28/25: delivered to Secretary of State (Acts Ch. 124) |
|---|---|
| Title | AN ACT relating to the Kentucky Horse Racing and Gaming Corporation and declaring an emergency. |
| Bill Documents |
Acts Chapter 124
Current/Final Introduced |
| Bill Request Number | 387 |
| Sponsors | M. Koch, D. Osborne, S. Bratcher, P. Flannery |
| Summary of Enacted Version | Amends various sections of KRS Chapters 230 and 238, relating to the Kentucky Horse Racing and Gaming Corporation, to define "Kentucky quarter horse purse fund," "proof of wagers," "unclaimed pari-mutuel winning ticket," and "unredeemed pari-mutuel voucher"; requires an annual audit of the corporation by a qualified auditing entity and reduces audits by the Auditor of Public Accounts to once every four years, both beginning with fiscal year 2026-2027; grants the corporation flexibility in promulgating administrative regulations; authorizes the corporation to participate in state agency master agreements; prohibits banning or reducing charitable games or charitable gaming activities approved as of July 1, 2025; creates staggered initial terms for members of the corporation's board of directors; adds two board members, one representing charitable gaming and the other representing the quarter horse industry; appoints all three charitable gaming board members immediately; makes those associated with the corporation subject to KRS Chapter 11A and KRS Chapter 230; permits the board to remove the corporation president; establishes qualifications of the corporation's chief financial officer; requires the Office of Charitable Gaming to make formal recommendations to the president on charitable gaming matters; creates a new section of KRS Chapter 230 to direct state financial officers to transfer existing moneys and future receipts to designated accounts; creates a new section of KRS Chapter 230 to disburse unredeemed pari-mutuel voucher funds held by tracks; creates new sections of KRS Chapter 230 to set up quarter horse development and purse funds; amends KRS 230.400, 230.445, 230.446, 230.770, 230.800, 230.802, and 230.804 to modify all equine development, breeder incentive, and purse funds into corporation accounts, with at least 90 percent of each fund going directly to the fund's primary purpose; allows the corporation to use up to 10 percent from each fund for its administration and operation; amends KRS 230.811 to pay sports wagering license fees directly to the corporation; amends KRS 230.817 to allow the corporation to use 10 percent of the sports wagering administration fund for its administration and operation; requires quarterly and annual reports on the fund's status; creates a new section of KRS Chapter 238 to conditionally maintain existing excess charitable gaming licenses; combines racing and charitable gaming security and investigators into one group; allows investigators to acquire criminal justice training certification under KRS Chapter 15; establishes the corporation's authority over all aspects of charitable gaming, including its employees, agency structure, licensing, and administrative regulations; amends KRS 238.535 to allow a licensed local school district to conduct charitable gaming; authorizes any common schools or organizations affiliated with those schools within a local school district to conduct charitable gaming under the local school district's license; maintains reporting, records retention, and net receipt requirements; amends KRS 238.570 to set the charitable gaming fee; amends KRS 18A.115 to exempt all corporation employees from the classified service; amends KRS 238.550 to allow charitable organizations to make bank deposits up to five days after a charitable event; amends KRS 393A.040, relating to unclaimed property, to remove references to unclaimed pari-mutuel winning tickets; amends various statutes to conform; repeals KRS 230.270, 238.520, and 238.522; directs the corporation to evaluate and propose its licensing structure to the Interim Joint Committee on Licensing and Occupations by October 1, 2025; and makes sections relating to the corporation board and funds effective immediately and all other sections effective July 1, 2025; EMERGENCY. |
| Summary of Original Version | Amend various sections of KRS Chapters 230 and 238, relating to the Kentucky Horse Racing and Gaming Corporation, to define "Kentucky quarter horse purse fund," "proof of wagers," "unclaimed pari-mutuel winning ticket," and "unredeemed pari-mutuel voucher"; confirm the corporation's jurisdiction over racing and gaming entities; require an annual audit of the corporation by a qualified auditing entity and reduce audits by the Auditor of Public Accounts to once every four years; grant the corporation flexibility in promulgating administrative regulations; authorize the corporation to participate in state agency master agreements; prohibit banning or reducing charitable games or charitable gaming activities approved as of July 1, 2025; create staggered initial terms for members of the corporation's board of directors; add two board members, one representing charitable gaming and the other representing the quarter horse industry; appoint all three charitable gaming board members immediately; make those associated with the corporation subject to KRS Chapter 11A, but state that KRS Chapter 230 will control if there is a conflict; permit the board to remove the corporation president; establish qualifications of the corporation's chief financial officer; require the Office of Charitable Gaming to make formal recommendations to the president on charitable gaming matters; combine racing and charitable gaming security and investigators into one group; allow investigators to acquire criminal justice training certification under KRS Chapter 15; establish to corporation's authority over all aspects of charitable gaming, including its employees, agency structure, licensing, and administrative regulations; create a new section of KRS Chapter 230 to direct state financial officers to transfer existing moneys and future receipts to designated accounts; create a new section of KRS Chapter 230 to allow the corporation to control the disbursement of unredeemed pari-mutuel voucher funds held by tracks; create new sections of KRS Chapter 230 to set up quarter horse development and purse funds; amend KRS 230.400, 230.445, 230.446, 230.770, 230.800, 230.802, and 230.804 to modify all equine development, breeder incentive, and purse funds into corporation accounts, with at least 90% of each fund going directly to the fund's primary purpose; allow the corporation to use up to 10% from each fund for its administration and operation; remove quarter horses from all paint horse, Appaloosa, and Arabian funds; amend KRS 230.811 to pay sports wagering license fees directly to the corporation; amend KRS 230.817 to allow the corporation to use up to 10% from the sports wagering administration fund for its administration and operation; require quarterly and annual reports on the status of the sports wagering administration fund; distribute sports wagering funds as they are received; create a new section of KRS Chapter 238 to maintain existing excess charitable gaming licenses; revoke excess licenses after the licensee's commission of listed offenses; amend KRS 238.535 to exempt public or private elementary and secondary schools from charitable gaming licensure; maintain reporting, records retention, and net receipt requirements; amend KRS 238.570 to remove the corporation's ability to adjust the charitable gaming fee; amend KRS 18A.115 to exempt all corporation employees from the classified service; amend KRS 238.550 to allow charitable organizations to make bank deposits up to five days after a charitable event; make technical corrections; amend KRS 68.182, 91.202, 92.282, 138.510, 230.374, 230.3771, 238.536, and 238.540 to conform; repeal KRS 230.270, 238.520, and 238.522; direct the corporation to evaluate and propose its licensing structure to the Interim Joint Committee on Licensing and Occupations by October 1, 2025; make sections relating to the corporation board and funds effective immediately and all other sections effective July 1, 2025; EMERGENCY. |
| Index Headings of Original Version |
Effective Dates, Delayed - Kentucky Horse Racing and Gaming Corporation, charitable gaming Effective Dates, Emergency - Kentucky Horse Racing and Gaming Corporation, structure and funding Gambling - Kentucky Horse Racing and Gaming Corporation, jurisdiction Licensing - Kentucky Horse Racing and Gaming Corporation, racing and gaming Racing - Kentucky Horse Racing and Gaming Corporation, jurisdiction State Agencies - Kentucky Horse Racing and Gaming Corporation, jurisdiction Treasurer - Kentucky Horse Racing and Gaming Corporation, fund transfers Wagering - Kentucky Horse Racing and Gaming Corporation, jurisdiction Administrative Regulations and Proceedings - Kentucky Horse Racing and Gaming Corporation, jurisdiction Amusements and Recreation - Kentucky Horse Racing and Gaming Corporation, jurisdiction Auditor of Public Accounts - Kentucky Horse Racing and Gaming Corporation, quadrennial audits Charitable Organizations and Institutions - Kentucky Horse Racing and Gaming Corporation, charitable gaming Public Protection - Kentucky Horse Racing and Gaming Corporation, jurisdiction Advisory Boards, Commissions, and Committees - Charitable Gaming Advisory Council, dissolution Horses and Horse Racing - Kentucky Horse Racing and Gaming Corporation, breed funds |
| Jump to Proposed Amendments |
House Committee Substitute 1 Senate Committee Substitute 1 Senate Floor Amendment 1 |
| Votes | Vote History |
| Governor's Veto Message | Veto |
| 02/14/25 |
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| 02/18/25 |
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| 02/19/25 |
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| 02/20/25 |
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| 02/21/25 |
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| 02/25/25 |
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| 02/27/25 |
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| 02/28/25 |
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| 03/04/25 |
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| 03/06/25 |
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| 03/11/25 |
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| 03/12/25 |
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| 03/13/25 |
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| 03/25/25 |
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| 03/27/25 |
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| 03/28/25 |
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| Amendment | House Committee Substitute 1 |
|---|---|
| Summary | Retain original provisions, except modify the process to use and distribute funds from unredeemed pari-mutuel vouchers; remove the charitable gaming licensing exemption for public and private elementary and secondary schools; allow a local school district to become licensed to conduct charitable gaming; authorize any common schools or organizations affiliated with those schools within a local school district to conduct charitable gaming under the local school district's license; make technical changes to conform. |
| Index Headings |
Education, Elementary and Secondary - Charitable gaming, local school districts, licensing Gambling - Racing and gaming, regulation Licensing - Charitable gaming, local school districts, licensing Racing - Unredeemed pari-mutuel vouchers, funds, distribution Wagering - Unredeemed pari-mutuel vouchers, funds, distribution Amusements and Recreation - Racing and gaming, regulation Charitable Organizations and Institutions - Charitable gaming, local school districts, licensing Horses and Horse Racing - Unredeemed pari-mutuel vouchers, funds, distribution Technical Corrections - HB 566/HCS 1 |
| Amendment | Senate Committee Substitute 1 |
|---|---|
| Summary | Retain original provisions, except direct the first audit of the corporation to cover fiscal year 2026-2027; supersede any other laws relating to unclaimed pari-mutuel winning tickets and unredeemed pari-mutuel vouchers; amend KRS 393A.040, relating to unclaimed property, to remove references to unclaimed pari-mutuel winning tickets. |
| Index Headings |
Gambling - Unclaimed pari-mutuel tickets and unredeemed pari-mutuel vouchers, disposition Property - Unclaimed pari-mutuel tickets and unredeemed pari-mutuel vouchers, disposition Racing - Unclaimed pari-mutuel tickets and unredeemed pari-mutuel vouchers, disposition Wagering - Unclaimed pari-mutuel tickets and unredeemed pari-mutuel vouchers, disposition Audits and Auditors - Kentucky Horse Racing and Gaming Corporation, initial audit, fiscal year 2026-2027 Horses and Horse Racing - Unclaimed pari-mutuel tickets and unredeemed pari-mutuel vouchers, disposition |
| Amendment | Senate Floor Amendment 1 |
|---|---|
| Sponsor | J. Higdon |
| Summary | Remove closures due to acts of God from the list of reasons a charitable gaming licensee may lose its excess licenses. |
| Index Headings |
Charitable Organizations and Institutions - Charitable gaming locations, acts of God, loss of license Disasters - Charitable gaming locations, acts of God, loss of license Licensing - Charitable gaming locations, acts of God, loss of license |
Last updated: 7/24/2025 3:26 PM (EDT)