STATE LOTTERY

KRS tit. XII, ch. 154A

in effect

KRS 154A.010 Definitions for chapter

154A.010. Definitions for chapter As used in this chapter, unless the context requires otherwise: (1) "Amateur athletics" means any interscholastic athletics in which the participating athletes are elementary or secondary school students of any public or private institution of learning; any intercollegiate athletics in which the participating athletes are students of any public or private institution of higher education; or any athletics sponsored or regulated by the following amateur athletic associations including, but not limited to: (a) United States Olympic Committee; (b) National Collegiate Athletic Association; (c) National Association of Intercollegiate Athletics; (d) Kentucky High School Athletic Association; (e) Kentucky Amateur Athletics Union; (f) Bluegrass State Games; (g) Little League Baseball; (h) Amateur Softball Association; (i) Babe Ruth Leagues of Kentucky; (j) American Legion Baseball; (k) Kentucky Youth Soccer Association; or (l) Kentucky Special Olympics; (2) "Corporation" means the Kentucky Lottery Corporation; (3) "Lottery" means any game of chance approved by the corporation and operated pursuant to this chapter, except for games prohibited by the General Assembly as provided for in KRS 154A.063; (4) "Major lottery-specific procurement" means any gaming product or service including, but not limited to, major advertising contracts, annuity contracts, prize payment agreements, consulting services, personal service contracts, equipment, tickets, and all other products and services unique to the operation of the corporation in its lottery activities, but not including materials, supplies, equipment, and services common to the ordinary operations of a corporation; (5) "President" means the president of the Kentucky Lottery Corporation who shall also serve as chief executive officer of the corporation; (6) (a) With respect to an individual, "related entity" means any spouse, child, brother, sister, or parent residing as a member of the same household in the principal place of abode of the individual, and any entity with respect to which the individual, or spouse, child, brother, sister, or parent of the individual has a financial interest of five percent (5%) or more, or is an officer, director, employee, or partner; and (b) With respect to any partnership, corporation, joint venture, or other entity, "related entity" means any officer, director, employee, partner, or owner of a financial interest of five percent (5%) or more of the total value thereof; any parent, subsidiary, or brother corporation; and any other entity with which the given entity has an identity of ownership of fifty percent (50%) or more. (7) "Retailer" means any person with whom the corporation has contracted to sell lottery tickets to the public; (8) "Security" means the protection of information that would provide an unfair advantage to any individual or other entity involved or seeking involvement in the operation of the lottery or the supply of major lottery-specific procurement items to the corporation, and the protection of: (a) Information that relates to detection or deterrence of, or could assist in the perpetration of, crimes against the corporation or its retailers, their locations, or their employees; or (b) Information which could impair or adversely impact the ability of the corporation or its retailers to protect the integrity of the lottery or protect lottery equipment, supplies, or proceeds; (9) "Sports contest" means any professional or amateur sport, athletic game or contest, or race or contest involving machines, persons, or animals, except horses, that is viewed by the public; and (10) "Vendor" means any person who has entered into a major lottery-specific procurement contract with the corporation. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 170, sec. 1, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 470, sec. 74, effective July 1, 1990. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 1, effective December 15, 1988.

KRS 154A.020 State lottery created -- Administration by corporation -- Management -- Intent of General Assembly -- Senate confirmation required for corporation existence

154A.020. State lottery created -- Administration by corporation -- Management -- Intent of General Assembly -- Senate confirmation required for corporation existence (1) There is hereby created and established a state lottery which shall be administered by an independent, de jure municipal corporation and political subdivision of the Commonwealth of Kentucky which shall be a public body corporate and politic to be known as the Kentucky Lottery Corporation. The corporation shall be deemed a public agency within the meaning of KRS 61.805 and 61.870. This corporation shall be managed in such a manner that enables the people of the Commonwealth to benefit from its profits and to enjoy the best possible lottery games. The General Assembly hereby recognizes that the operations of a lottery are unique activities for state government and that a corporate structure will best enable the lottery to be managed in an entrepreneurial and business-like manner. It is the intent of the General Assembly that the Kentucky Lottery Corporation shall be accountable to the Governor, the General Assembly and the people of the Commonwealth through a system of audits, reports and thorough financial disclosure as required by this chapter. (2) The existence of the corporation shall begin only upon confirmation of the members of the board by the Senate as provided in KRS 154A.030. Until the time of such confirmation, no business shall be conducted on behalf of the lottery. (3) Notwithstanding any other provision of law to the contrary, no official action of any form shall be taken by the board at any time unless a majority of the members of the board shall have been confirmed by the Senate as provided in KRS 154A.030. Any action taken on behalf of the lottery when less than a majority of the members of the board shall have been confirmed shall be of no effect. Effective: July 15, 2014 History: Amended 2014 Ky. Acts ch. 102, sec. 33, effective July 15, 2014. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 2, effective December 15, 1988.

KRS 154A.030 Board of directors -- Senate confirmation -- Qualifications -- Terms -- Removal -- Chairman -- Standards of conduct -- Compensation -- Meetings -- Quorum -- Records -- Appointment and confirmation of corporation president -- Duties -- Removal -- Open board meetings

154A.030. Board of directors -- Senate confirmation -- Qualifications -- Terms -- Removal -- Chairman -- Standards of conduct -- Compensation -- Meetings -- Quorum -- Records -- Appointment and confirmation of corporation president -- Duties -- Removal -- Open board meetings (1) The affairs of the corporation shall be administered by a board of directors composed of eight (8) members. One (1) member of the board shall be the State Treasurer, who shall serve on the board in an ex officio capacity. The other seven (7) members shall be appointed by the Governor, subject to the advice and consent of the Senate. Members appointed when the Senate is not in session shall serve only until the next regular session, or special session if such matter is included in the call therefor of the General Assembly, at which time they shall be subject to confirmation by the Senate. If the Senate is not in session, the appointments shall be subject to review by the Interim Joint Committee on State Government which shall hold a public hearing and shall transmit its recommendations to the Senate. Should the Senate refuse to confirm a member then he shall forfeit his office as of the date on which the Senate refuses to confirm him. Any person not confirmed by the Senate shall not be reappointed as a member for a period of two (2) years. Members appointed by the Governor, and confirmed by the Senate, shall be residents of the Commonwealth of Kentucky and serve a term of four (4) years, except that of the initial members appointed, two (2) shall be appointed for one (1) year with the term ending on the twenty-eighth (28th) day of November, 1989; two (2) shall be appointed for two (2) years with the term ending on the twenty-eighth (28th) day of November, 1990; two (2) shall be appointed for three (3) years with the term ending on the twenty-eighth (28th) day of November, 1991; and one (1) shall be appointed for four (4) years with the term ending on the twenty-eighth (28th) day of November, 1992. Members, confirmed by the Senate, may serve thirty (30) days beyond the end of their respective terms if their successors have not been appointed and qualified. If the Governor fails to appoint a successor within thirty (30) days of expiration of a member's term, the board shall make the appointment. No appointed member shall serve more than two (2) consecutive four-year terms. No more than four (4) of the members appointed by the Governor shall be from the same political party. Appointed members may be removed by the Governor for neglect of duty, misfeasance, or nonfeasance in office. The board shall annually elect a chairman from among its appointed members. (2) (a) No member of the board of directors, by himself or through others, shall knowingly: 1. Use or attempt to use his influence in any manner which involves a substantial conflict between his personal or private interest and his duties to the corporation; 2. Use or attempt to use any means to influence the corporation in derogation of the corporation; 3. Use his official position or office to obtain financial gain for himself, or any spouse, parent, brother, sister, or child of the director; or 4. Use or attempt to use his official position to secure or create privileges, exemptions, advantages, or treatment for himself or others in derogation of the interests of the corporation or of the Commonwealth. (b) No director shall appear before the board or the corporation in any manner other than as a director. (c) A director shall abstain from action on an official decision in which he has or may have a personal or private interest, and shall disclose the existence of that personal or private interest in writing to each other member of the board on the same day on which the director becomes aware that the interest exists or that an official decision may be under consideration by the board. This disclosure shall cause the decision on these matters to be made in a meeting of the members of the board who do not have the conflict from which meeting the director shall be absent and from all votes on which matters the director shall abstain. (d) In determining whether to abstain from action on an official decision because of a possible conflict of interest, a director shall consider the following guidelines: 1. Whether a substantial threat to his independence of judgment has been created by his personal or private interest; 2. The effect of his participation on public confidence in the integrity of the corporation and the lottery; 3. Whether his participation is likely to have any significant effect on the disposition of the matter; 4. The need for his particular contribution, such as special knowledge of the subject matter, to the effective functioning of the corporation; and 5. Whether the official decision will affect him in a manner differently from the public, or will affect him as a member of a business, profession, occupation, or group to no greater extent generally than other members of his business, profession, occupation, or group. Any director may request a vote of the disinterested members of the board on whether any director shall abstain from action on an official decision. (e) No director, in order to further his own economic interests, or those of any person, shall knowingly disclose or use confidential information acquired in the course of his official duties. (f) No director shall knowingly receive, directly or indirectly, any interest or profit arising from the use or loan of lottery funds or funds to be raised through the lottery. (g) No director shall knowingly accept compensation, other than that provided in this section for directors, for performance of his official duties. (h) No present or former director shall, within one (1) year following termination of his membership on the board, accept employment, compensation, or other economic benefit from any person or business that contracts or does business with the corporation in matters in which he was directly involved during his tenure. This provision shall not prohibit an individual from continuing in the same business, firm, occupation, or profession in which he was involved prior to becoming a director, provided that, for a period of one (1) year following termination of his position as a director, he personally refrains from working on any matter in which he was directly involved as a director. (i) No director, and no spouse, child, brother, sister, or parent of that director shall have a financial interest of more than five percent (5%) of the total value of any vendor, other supplier of goods or services to the corporation, retailer, or related entity. The corporation shall provide each member of the board with a list of all current vendors, which shall be updated on at least a quarterly basis. (3) Appointed members of the board of directors shall be entitled to five thousand dollars ($5,000) per year as remuneration for serving on the board, except for the chairman, who shall receive seven thousand five hundred dollars ($7,500), and all members shall be reimbursed for necessary travel and other reasonable expenses incurred in the performance of their official duties. (4) The board, upon call of the chairman or the president, shall meet at least monthly for the first eighteen (18) months and bimonthly thereafter and at such other times as the chairman or the president may determine. Four (4) members of the board shall constitute a quorum. The board shall also meet upon call of three (3) or more of the voting members of the board. The board shall keep accurate and complete records of all its meetings. (5) The State Treasurer shall not be compensated for his service on the board. (6) The president of the corporation shall be appointed by the Governor subject to confirmation by the board of directors. Should the board of directors refuse to confirm the appointment of the president, then the Governor shall submit another name. The person whose appointment was refused shall not be renamed for confirmation for a period of two (2) years. The board of directors shall meet within thirty (30) days of the date the Governor submits the name of a nominee for president of the corporation and shall, within that time frame, either approve or reject the nomination. The president of the corporation shall manage the daily affairs of the corporation and shall have such powers and duties as specified by KRS 154A.070 and by the board of directors. The president shall not be a member of the board. The president of the corporation may be removed by the board of directors. (7) All meetings of the board shall be open unless they may be closed under KRS 61.810 or relate to trade secrets, legally-protectable intellectual property, confidential proprietary information, the security of the corporation in the operation of the lottery, or the security of the lottery's retailers. Effective: July 15, 1996 History: Amended 1996 Ky. Acts ch. 154, sec. 1, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 170, sec. 2, effective July 15, 1994. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 3, effective December 15, 1988.

KRS 154A.040 Records of corporation deemed open -- Exceptions -- Circuit Court jurisdiction of records

154A.040. Records of corporation deemed open -- Exceptions -- Circuit Court jurisdiction of records (1) All records of the corporation shall be deemed open records and subject to public inspection, unless: (a) The record is excluded from inspection under KRS 61.870 to 61.884 under KRS 61.878; (b) The record involves a trade secret or other legally-protectable intellectual property or confidential proprietary information of the corporation or of a vendor; or (c) The disclosure of the record could impair or adversely impact the security of the corporation in the operation of the lottery or the security of lottery retailers. (2) The provisions of KRS 61.878, 61.880, and 61.884 shall apply to records of the lottery corporation with the exception that the only Circuit Court with jurisdiction over the records of the lottery corporation is the Circuit Court in the county where the corporate headquarters of the lottery corporation is located. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 170, sec. 3, effective July 15, 1994. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 4, effective December 15, 1988.

KRS 154A.050 Duties of board

154A.050. Duties of board (1) The board of directors shall provide the president with private-sector perspectives on the operation of a large marketing enterprise. The board shall: (a) Approve, disapprove, amend, or modify the budget recommended by the president for the operation of the corporation; (b) Approve, disapprove, amend, or modify the terms of major lottery procurements recommended by the president; (c) Serve as a board of appeal for any denial, revocation, or cancellation by the president of a contract with a lottery retailer; and (d) Adopt, from time to time, administrative regulations which shall be subject to the provisions of KRS Chapter 13A, as may be necessary to carry out and implement its powers and duties, the operation of the corporation, the conduct of lottery games in general, and any other matters necessary or desirable for the efficient and effective operation of the lottery or convenience of the public. The board may adopt, without recourse to the administrative regulation process unless it so desires, rules for the conduct of specific lottery games, including but not limited to, rules specifying: 1. The types of games to be conducted; 2. The sale price of tickets; 3. The number and amount of prizes; 4. The method and location of selecting or validating winning tickets; 5. The frequency and the means of conducting drawings which shall be open to the public; 6. The manner of payment of prizes; 7. The frequency of games and drawings; 8. The manner and amount of compensation to lottery retailers, except all compensation shall be uniform; and 9. Any other matters necessary or desirable for the efficient and effective operation of the lottery or for the convenience of the public. (2) In all other matters, the board shall advise and make recommendations. However, the board shall: (a) Conduct hearings upon complaints charging violations of this chapter or of administrative regulations adopted by the corporation and shall conduct such other hearings as may be provided by administrative regulation; (b) Review the performance of the corporation and: 1. Advise the president and make recommendations to him regarding operations of the corporation; and 2. Identify potential improvements in this chapter, the administrative regulations of the corporation, and the management of the corporation; (c) Request from the corporation any information the board determines to be relevant to its duties; and (d) Report to the president of the corporation, the Governor, the President of the Senate, and the Speaker of the House of Representatives regarding its findings and recommendations. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 486, sec. 25, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 470, sec. 77, effective July 1, 1990. -- Created 1988 (lst Extra. Sess.) Ky. Acts ch. 1, sec. 5, effective December 15, 1988.

KRS 154A.060 Conduct and administration of lottery games -- Powers and duties of corporation -- Authorized contracts -- Withholding lottery prize money for child support arrearages and default on higher education loans

154A.060. Conduct and administration of lottery games -- Powers and duties of corporation -- Authorized contracts -- Withholding lottery prize money for child support arrearages and default on higher education loans (1) The corporation shall conduct and administer lottery games which will result in maximization of revenues to the Commonwealth of Kentucky while at the same time provide entertainment to its citizens. It shall be the duty of the corporation, its employees, and the members of the board to provide for the effective operation of lottery games which insure the integrity of the lottery and maintain the dignity of the Commonwealth and the general welfare of its citizens. The corporation, in pursuit of the attainment of the objectives and the purposes of this chapter, may: (a) Sue and be sued in its corporate name; (b) Adopt a corporate seal and a symbol; (c) Hold copyrights, trademarks, and service marks, and enforce its rights with respect thereto; (d) Appoint agents upon which process may be served; (e) Enter into written agreements with one (1) or more other states for the operation, marketing, and promotion of a joint lottery or joint lottery games; (f) Acquire real property and make improvements thereon. These acquisitions shall be reported to the Capital Projects and Bond Oversight Committee for its review and determination in accordance with KRS 45.750 to 45.810; and (g) Make, execute, and effectuate any and all agreements or contracts, including: 1. Contracts for the purchase of such goods and services as are necessary for the operation and promotion of the state lottery. Proposed purchases of major items of equipment estimated to cost one hundred thousand dollars ($100,000) or more and proposed purchases of items of equipment where the estimated contract price for all the items of equipment taken together is four hundred thousand dollars ($400,000) or more shall be reported to the Capital Projects and Bond Oversight Committee for its review and determination in accordance with the provisions of KRS 45.750 to 45.810. A contract shall not be artificially divided to cause an estimated contract price to fall below the four hundred thousand dollar ($400,000) threshold. Contracts for personal service shall be reviewed in accordance with KRS 45A. 690 to 45A.725; and 2. Contracts to incur debt in its own name and enter into financing agreements with the Commonwealth, its own agencies, or with a commercial bank, excluding the authority to issue bonds. (2) The corporation shall: (a) Supervise and administer the lottery in a ccordance with the provisions of this chapter and the administrative regulations adopted by the board; (b) Submit monthly and annual reports to the Governor, the President of the Senate, and the Speaker of the House of Representatives containing financial statements which include but are not limited to disclosure of gross revenues, expenses, and net proceeds for the period; (c) Adopt by administrative regulation a system of continuous internal audits; (d) Maintain weekly or more frequent records of lottery transactions, including distribution of tickets to lottery retailers, revenues received, claims for prizes, prizes paid, and all other financial transactions of the corporation; (e) Adopt by administrative regulation a code of ethics for officers and employees of the corporation to carry out the standards of conduct established by the provisions of this chapter; (f) Include capital projects, as defined in KRS 45.750(1)(f), which exceed the thresholds set forth in KRS 154A.060(1)(g)1. in the budget unit requ est submitted by the corporation to the Finance and Administration Cabinet pursuant to KRS 48.050. In the budget unit request submitted by the corporation, a contingency item for acquisition of the on -line central system, all related equipment, and any other equipment owned by vendors of the corporation relating to computer-generated lottery games from the corporation's vendors shall be stated separately from all other equipment. Further, if the identification of specific projects requiring the acquisition of equipment in the nature of computer systems, communications equipment and related peripheral devices, and operating system software cannot be ascertained with absolute certainty at the time the corporation is required to submit its budget unit request, the corporation shall be entitled to submit a general request for the equipment without individually identifying specific projects, together with a maximum amount to be allocated for the equipment, in the budget unit request; (g) The Kentucky Lottery Corporation and the Office of the Attorney General shall develop a system to allow the Kentucky Lottery Corporation to receive a list of delinquent child support obligors from the Office of the Attorney General on a monthly basis. The Kentucky Lottery Corporati on shall withhold delinquent amounts from prizes of winners that appear on the list. This system shall be timely and shall not create an unavoidable delay in the payment of a lottery prize; and (h) The Kentucky Lottery Corporation and the authority shall d evelop a system to allow the Kentucky Lottery Corporation to receive on a periodic basis a list of persons declared in default of repayment obligations under financial assistance programs in KRS Chapters 164 and 164A. The Kentucky Lottery Corporation shall withhold from a person's prize winnings the amount of the defaulted loan and shall transfer the amount to the authority to credit the account of the person in default. Any amount remaining after the deduction of the loan amount shall be paid to the person . Effective: July 1, 2025 History: Amended 2025 Ky. Acts ch. 59, sec. 5, effective July 1, 2025. -- Amended 2005 Ky. Acts ch. 99, sec. 126, effective June 20, 2005. -- Amended 2002 Ky. Acts ch. 236, sec. 3, effective July 15, 2002. -- Amended 2000 Ky. Acts ch. 430, sec. 1, effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 77, sec. 1, effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 31, sec. 5, effective July 15, 1994; and ch. 486, sec. 26, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 496, sec. 45, effective July 13, 1990; and ch. 507, sec. 22, effective July 13, 1990. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 6, effective December 15, 1988.

KRS 154A.063 Prohibited lottery games

154A.063. Prohibited lottery games (1) The corporation shall not utilize amateur athletics for any purpose including, but not limited to, advertising, promoting, conducting a lottery, or as a basis for a lottery. (2) The corporation shall not approve and operate any casino or similar gambling establishment and shall not approve or operate any game played with playing cards, dice, dominos, slot machines, roulette wheels, or where winners are determined by the outcome of a sports contest. (3) This section shall not be construed to prohibit the corporation from advertising the lottery at, during, or in connection with a sports contest. Effective: July 1, 1990 History: Created 1990 Ky. Acts ch. 470, sec. 75, effective July 1, 1990.

KRS 154A.065 Contests involving horses may be basis for a lottery

154A.065. Contests involving horses may be basis for a lottery The corporation may utilize horse racing or contests involving horses for any purpose including, but not limited to, advertising, promoting, conducting a lottery, or as a basis for a lottery, after obtaining the necessary permission from the horse racing track or sponsoring authority involved. Effective: July 1, 1990 History: Created 1990 Ky. Acts ch. 470, sec. 76, effective July 1, 1990.

KRS 154A.070 Powers and duties of corporation's president

154A.070. Powers and duties of corporation's president (1) The president, as chief executive officer of the corporation, shall direct and supervise all administrative and technical activities in accordance with the provisions of this chapter and with the administrative regulations adopted by the board. It shall be his duty to: (a) Supervise and administer the operation of the lottery games; (b) Employ and direct such personnel as may be necessary to carry out the purposes of this chapter and utilize such services, personnel, or facilities of the corporation as he may deem necessary. He may employ by personal service contract pursuant to KRS 45A.690 to 45A.725 and compensate such consultants and technical assistants as may be required to carry out the provisions of this chapter. The president may, by agreement, secure information and services as he may deem necessary from any department, agency, or unit of state government, and shall compensate such department, agency, or unit of state government for its services. Such agencies, departments, or units of state government shall cooperate with the corporation and provide such information and services as may be required by the corporation to assure the integrity of the lottery and the effective operation of the lottery games; (c) Contract in accordance with the administrative regulations of the corporation with persons to sell lottery tickets at retail. The president shall require a bond or bank letter of credit from lottery retailers in an amount provided by administrative regulations issued by the board; (d) Make available for inspection by the board or any member of the board, upon request, all books, records, files, and other information and documents of his office and to advise the board and recommend such administrative regulations and other matters he deems necessary and advisable to improve the operation and administration of the lottery; (e) Enter into any contract pursuant to KRS Chapters 45 and 45A or administrative regulations promulgated by the board, and pursuant to KRS 154A.120, with any person, firm, or corporation for the promotion and any operation of the lottery, or for the performance of any of the functions as provided in this chapter; (f) Attend meetings of the board or appoint a designee to attend on his behalf; and (g) On the first day of the Regular Session of the General Assembly in 1990 and biennially thereafter, submit the proposed biennial budget of the corporation to the Appropriations and Revenue Committee of the House of Representatives for review and comment. The budget shall be submitted to the Director of the Legislative Research Commission within five (5) days of adoption by the board for distribution to the Appropriations and Revenue Committee of the House of Representatives for review. (2) The president, with the approval of the board, may amend or modify the budget at any time in any manner deemed necessary for the proper operation of the corporation; however, each change shall be reported in writing to the board and to the director of the Legislative Research Commission, who shall transmit a copy of the change to the Appropriations and Revenue Committee of the House of Representatives. (3) Following his confirmation, and during his entire term of office, the president shall reside in Kentucky. (4) The president, and the board, may conduct an ongoing study of the operation and administration of lotteries in other states or countries, of available literature on the subject, of federal laws and regulations which may affect the operation of the lottery, and of the reaction of citizens of this state to existing or proposed features of lottery games, with a view toward implementing improvements that will tend to serve the purposes of this chapter. (5) The president also may: (a) Require bond from corporate employees with access to corporate funds or lottery funds, in such an amount as provided in the administrative regulations of the board. The president may also require bond from other employees as he deems necessary; and (b) For good cause, suspend, revoke, or refuse to renew any contract entered into in accordance with the provisions of this chapter or the administrative regulations of the board. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 170, sec. 4, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 496, sec. 46, effective July 13, 1990. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 7, effective December 15, 1988.

KRS 154A.080 Personnel program for employees -- Conflict of interest provisions -- Background investigations -- Employment of specified persons by corporation prohibited

154A.080. Personnel program for employees -- Conflict of interest provisions -- Background investigations -- Employment of specified persons by corporation prohibited (1) The corporation shall establish and maintain a personnel program for its employees. The corporation may procure benefit programs or group insurance plans and shall provide a retirement plan. Employees of the corporation shall serve at the pleasure of the president who shall determine their compensation and benefits. The employees shall be subject to suspension, dismissal, reduction in pay, demotion, transfer, or other personnel action at the discretion of the president. Such personnel actions shall be exempt from the provisions of KRS Chapter 18A. The compensation of officers at the division head level and above shall be exempt from the provisions of KRS 64.640. (2) No officer or employee of the corporation shall have a financial interest in any vendor doing business or proposing to do business with the corporation. (3) No officer or employee of the corporation with decision-making authority shall participate in any decision involving a retailer with whom the officer or employee has a financial interest of five percent (5%) or more of the total value thereof. (4) No officer or employee of the corporation who leaves the employ of the corporation may represent any vendor, lottery retailer, or related entity before the corporation for a period of two (2) years following termination of employment with the corporation. (5) A background investigation shall be conducted by the chief security officer of the corporation on every applicant who has reached the final selection process prior to employment by the corporation. Applicants may be fingerprinted as a condition of employment. In addition, all division directors of the corporation and employees of the corporation performing duties primarily related to security matters, prior to employment, shall be subject to a background investigation report conducted by the Department of Kentucky State Police. The Department of Kentucky State Police shall be reimbursed by the corporation for the cost of investigations conducted pursuant to this section. No person who has been convicted of a felony, bookmaking or other forms of illegal gambling, or of a crime involving moral turpitude shall be employed by the corporation. Any employee of the corporation who is or has been convicted of a felony, bookmaking, or any other form of illegal gambling or of a crime involving moral turpitude shall be terminated from employment by the corporation, except that this requirement shall not be interpreted to limit the right of the corporation to terminate the employment of any employee, at will, prior to any conviction. Effective: June 26, 2007 History: Amended 2007 Ky. Acts ch. 85, sec. 162, effective June 26, 2007. -- Amended 1994 Ky. Acts ch. 170, sec. 5, effective July 15, 1994. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 8, effective December 15, 1988.

KRS 154A.090 Appeals -- Circuit Court alternatives

154A.090. Appeals -- Circuit Court alternatives (1) Any retailer, vendor, or applicant for a retailer or vendor contract aggrieved by an action of the president of the corporation may appeal that decision to the board. (2) All appeals before the board shall be decided within thirty (30) days of the hearing. (3) Any person aggrieved by a decision of the board may appeal the decision to the Circuit Court of the county in which the corporation maintains its headquarters, except that if the person aggrieved is a lottery retailer or an applicant to become a lottery retailer, then the Circuit Court of the county in which said retailer does or applicant would operate shall have concurrent venue as to such appeal. (4) The Circuit Court may reverse the decision of the board only in the event the decision is found to be: (a) Clearly erroneous; or (b) Arbitrary and capricious; or (c) Procured by fraud; or (d) A result of misconduct by the board, or a member thereof. Effective: December 15, 1988 History: Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 11, effective December 15, 1988.

KRS 154A.100 Bond, letters of credit or other surety

154A.100. Bond, letters of credit or other surety Whenever a bond is required for the protection of the corporation, letters of credit or other surety as may be approved by the corporation, may be utilized in lieu of a bond. Effective: December 15, 1988 History: Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 12, effective December 15, 1988.

KRS 154A.110 Prizes taxable -- Withholdings from prize -- Verification rules and prize payments, exceptions -- Unclaimed prize money -- Corporation's liability -- Ineligibility to purchase tickets and receive prizes -- Conditions for assignment of prize

154A.110. Prizes taxable -- Withholdings from prize -- Verification rules and prize payments, exceptions -- Unclaimed prize money -- Corporation's liability -- Ineligibility to purchase tickets and receive prizes -- Conditions for assignment of prize (1) Proceeds of lottery prizes shall be subject to Kentucky state income tax. Any attachments, garnishments, or executions authorized and issued pursuant to statute shall also be withheld if served upon the process agent of the corporation. This section shall not apply to a retailer. (2) The board shall adopt rules to establish a system of verifying the validity of tickets claimed to win prizes and to effect payment of such prizes, except that: (a) No prize, nor any portion of a prize, nor any right of any person to a prize awarded shall be assignable, except as provided in subsection (6) of this section. Any prize, or portion thereof, remaining unpaid at the death of a prize winner shall be paid to the estate of such deceased prize winner or to the trustee under a revocable living trust established by the deceased prize winner as settlor, provided that a copy of such a trust has been filed with the corporation along with a notarized letter of direction from the settlor and no written notice of revocation has been received by the corporation prior to the settlor's death. Following such a settlor's death and prior to any payment to such a successor trustee, the corporation shall obtain from the trustee and each trust beneficiary a written agreement to indemnify and hold the corporation harmless with respect to any claims that may be asserted against the corporation arising from payment to or through the trust. Notwithstanding any other provisions of this section, any person, pursuant to an appropriate judicial order, shall be paid the prize to which a winner is entitled. (b) No ticket shall knowingly be sold to any person under the age of eighteen (18), but this section does not prohibit the purchase of a ticket by a person eighteen (18) years of age or older for the purpose of making a gift to any person of any age. In such case, the corporation shall direct payment to an adult member of the person's family or the legal guardian of the person on behalf of such person. The person named as custodian shall have the same powers and duties as prescribed for a custodian pursuant to the Uniform Transfers to Minors Act. (c) No prize shall be paid arising from claimed tickets that are stolen, counterfeit, altered, fraudulent, unissued, produced or issued in error, unreadable, not received or not recorded by the corporation within applicable deadlines, lacking in captions that conform and agree with the play symbols as appropriate to the lottery game involved, or not in compliance with such additional specific rules and public or confidential validation and security tests of the corporation appropriate to the particular lottery game involved. (d) No particular prize in any lottery game shall be paid more than once, and in the event of a binding determination that more than one claimant is entitled to a particular prize, the sole remedy of such claimants is the award to each of them of an equal share in the prize. (e) A holder of a winning cash ticket from a Kentucky lottery game shall claim a prize within three hundred sixty-five (365) days (for a ticket issued before January 1, 1995), and within one hundred eighty (180) days (for a ticket issued on or after January 1, 1995), or for a multistate lottery game within one hundred eighty (180) days, after the drawing in which the prize was won. In any Kentucky lottery game in which the player may determine instantly if he has won or lost, he shall claim a prize within three hundred sixty-five (365) days (for lottery games commenced or tickets printed or reprinted before January 1, 1995), and within one hundred eighty (180) days (for lottery games commenced or tickets printed or reprinted on or after January 1, 1995), or for a multistate lottery game within one hundred eighty (180) days, after the end of the lottery game as announced by the corporation. However, a holder of a pull-tab lottery ticket shall claim a prize within the time period and in the manner printed on the ticket. If a valid claim is not made for a prize within the applicable period, the prize shall constitute an unclaimed prize for purposes of subsection (3) of this section. (f) No prize shall be paid upon a ticket purchased or sold in violation of this chapter. Any such prize shall constitute an unclaimed prize for purposes of subsection (3) of this section. (3) Any unclaimed prize money may be retained by the corporation and added to the pool from which future prizes are to be awarded or used for special prize promotions, or may be appropriated by the General Assembly directly from the corporation for any public purpose. For fiscal years 2000-2001 and 2001-2002, any unclaimed prize money in excess of six million dollars ($6,000,000) shall be transferred to the affordable housing trust fund established by KRS 198A.710. (4) The corporation is discharged of all liability upon payment of a prize. (5) No ticket shall be purchased by and no prize shall be paid to any of the following persons: (a) Any member of the board of directors, officers, or employees of the corporation; (b) Any vendors or related entities, or any member of the board of directors, officers, employees of, partners in, or owners of any vendors or related entities to the vendors; or (c) Any spouse, child, brother, sister, or parent residing as a member of the same household in the principal place of abode of any such person. (6) The right of any person to receive payments due under a prize that is paid in installments over time by the corporation, excluding prizes payable for the winner's life, may be voluntarily assigned, in whole or in part, if the assignment is made to a person or entity designated pursuant to an order of the Circuit Court located in the judicial circuit where the headquarters of the corporation is located. The Circuit Court shall issue an order approving a voluntary assignment, specifying the exact dollar amount of each prize payment or payments assigned, or any portion thereof, the dates of the payments being assigned, the name of the assignor as it appears on the lottery claim form or the full legal name of the assignor if different than the name as it appears on the lottery claim form, and the full legal name of the assignee to whom the assigned payments will be made, and directing the corporation to make the specified payments to the assignee, if all of the following conditions have been met: (a) The assignment is in writing, executed by the assignor either before or after July 12, 2006, and by its terms, subject to the laws of this Commonwealth; (b) The assignor provides a sworn affidavit attesting that the assignor: 1. Is of sound mind, in full command of his or her faculties, and is not acting under duress; 2. Has had the opportunity to receive independent legal, financial, and tax advice concerning the effects of the assignment; 3. Understands that he or she will not receive the prize payments, or portions thereof, for the years assigned; 4. Understands and agrees that with regard to the assigned payments, the Commonwealth, the corporation, and its respective officials and employees will have no further liability or responsibility to make the assigned payments to the assignor; 5. Has been provided with a one (1) page written disclosure statement in bold type, fourteen (14) point font or larger, setting forth: a. The payments being assigned, by amounts and payment dates; b. The purchase price being paid; and c. The amount, if any, of any origination or closing fees that will be charged to the lottery winner; and 6. Has disclosed the existence or nonexistence of a current spouse; and, if married, unless the court finds the assignor may make the assignment without the spouse's consent, the assignor has submitted to the court a signed and notarized statement wherein the spouse consents to the assignment. (7) Written notice of any petition seeking court approval of an assignment under subsection (6) of this section and of a court hearing, if any, concerning the proposed assignment shall be delivered by certified mail, return receipt requested, to the corporation's registered agent at least fifteen (15) days prior to entry of the court order or a court hearing, if any. The corporation is not a necessary or indispensable party and is not required to appear in or be named as a party to any action seeking court approval of a voluntary assignment, but may intervene as of right in any such proceeding. (8) A voluntary assignment under subsection (6) of this section shall not include or cover payments or portions of payments that are, at the time of entry of the court order, subject to offset or withholding due to: (a) A defaulted or delinquent child support obligation; (b) A debt owed to a state agency; or (c) Any attachments, garnishments, or executions authorized and issued pursuant to statute and served upon the process agent of the corporation as set forth in subsection (1) of this section; unless appropriate provision is made in the court order to satisfy the obligation or obligations giving rise to the offset or withholding at the time of closing of the assignment transaction. Each court order shall provide that any delinquent child support obligation owed by the assignor as of the date of the court order and any debts owed to a state agency by the assignor as of the date of the court order shall be offset by the corporation first against remaining payments or portions thereof then due the assignor and then against payments due the assignee each year until paid in full. (9) A court order approving a voluntary assignment under subsection (6) of this section, together with any other order issued in connection with any one (1) prize drawn, shall not require the corporation to divide any single prize payment among more than three (3) different persons or entities. (10) The Commonwealth, the corporation, and their respective officials and employees shall be discharged of all further liability upon payment of a prize pursuant to court order issued under subsection (6) of this section. It shall be the responsibility of the assignor or the assignee to provide the corporation information necessary for the corporation to identify the parties to any assignment under subsection (6) of this section and to make the payments assigned. (11) The Kentucky Lottery Corporation may establish a reasonable fee, not to exceed one thousand dollars ($1,000), to defray any administrative expenses associated with processing each assignment made pursuant to subsection (6) of this section. The fee amount shall reflect the direct and indirect costs associated with processing the assignments. A court order approving an assignment under subsection (6) of this section shall direct the assignee to pay the fee to the corporation no later than ten (10) days after entry of the order. (12) A certified copy of a court order approving a voluntary assignment under subsection (6) of this section shall be delivered by certified mail, return receipt requested, to the corporation's registered agent at least thirty (30) days prior to the date upon which the first assigned payment is to be paid to the assignee. Within ten (10) days of receipt of the court order, the corporation shall acknowledge in writing to both the assignor and the assignee its receipt of the court order and that the corporation shall thereafter make the prize payments in accordance with the court order. (13) Subsection (6) of this section supersedes and prevails over any provision in the Uniform Commercial Code, including KRS 355.9-406. (14) The right to assign prize payments pursuant to subsection (6) of this section shall be suspended upon: (a) The publication by the United States Internal Revenue Service, hereinafter referred to in this subsection as the "Service," of a revenue ruling or other public ruling of the Service, which rules that, based upon the right of assignment provided in subsection (6) of this section, Kentucky lottery prizewinners who do not assign any prize payments would be subject to an immediate income tax liability for the value of the entire prize rather than annual income tax liability for each installment when paid; or (b) The issuance by a court of competent jurisdiction of a published decision holding that, based upon the right of assignment provided in subsection (6) of this section, a lottery prizewinner who does not assign any prize payments under that subsection would be subject to an immediate income tax liability for the value of the entire prize rather than annual income tax liability for each installment when paid. Effective: July 12, 2006 History: Amended 2006 Ky. Acts ch. 41, sec. 1, effective July 12, 2006. -- Amended 2000 Ky. Acts ch. 469, sec. 1, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 215, sec. 1, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 170, sec. 6, effective July 15, 1994. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 16, effective December 15, 1988. Legislative Research Commission Note (1988). Although references to the sale of "shares" were deleted in the Senate committee substitute, due to a clerical error, such reference was not deleted in subdivision (2)(e) of this section. The Reviser of Statutes, pursuant to KRS 7.136, has removed the words "or share" to conform.

KRS 154A.120 Procurement procedures -- Administrative regulations for procurement - - Bidding and negotiation processes

154A.120. Procurement procedures -- Administrative regulations for procurement - - Bidding and negotiation processes (1) The corporation shall conduct all procurements in accordance with procedures which are not inconsistent with the provisions of KRS Chapter 45A, and this chapter, this chapter being deemed to control in the event that, and to the extent that, any provision in this chapter is expressly inconsistent with any provision of KRS Chapter 45A; or the corporation shall adopt administrative regulations establishing its procurement procedures. If the corporation elects to promulgate administrative regulations establishing its procurement procedures rather than conduct procurements in accordance with the provisions of KRS Chapter 45A, the corporation may include sections of KRS Chapter 45A as part of its administrative regulations. However, major lottery-specific procurements for personal service contracts shall not be subject to the requirements of KRS 45A.695(2)(b), due to the unique operational activities conducted for state government by the corporation as recognized in KRS 154A.020. The corporation's procurement procedures or administrative regulations shall be designed to provide for the purchase of supplies, equipment, services, and construction items that provide the greatest long term benefit to the state, the greatest integrity for the corporation, and the best service and products, for the public. (2) In its bidding and negotiation processes, the corporation may do its own bidding and procurement, or may utilize the services of the Finance and Administration Cabinet, or a combination thereof. The president of the corporation may, in lieu of the secretary of finance, declare an emergency for purchasing purposes. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 170, sec. 7, effective July 15, 1994. -- Amended 1990 Ky. Acts ch. 496, sec. 47, effective July 13, 1990. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 18, effective December 15, 1988.

KRS 154A.130 Deposit of moneys -- Expenditures and investments authorized -- Allocation of funds -- Transfer of revenues to general fund -- Lottery trust account -- Credit from general fund to literacy fund and higher education scholarships -- Postaudit of corporation's books and records -- Functions of Auditor of Public Accounts -- Annual newspaper publication of information

154A.130. Deposit of moneys -- Expenditures and investments authorized -- Allocation of funds -- Transfer of revenues to general fund -- Lottery trust account -- Credit from general fund to literacy fund and higher education scholarships -- Postaudit of corporation's books and records -- Functions of Auditor of Public Accounts -- Annual newspaper publication of information (1) All money received by the corporation from the sale of lottery tickets and all other sources shall be deposited into a corporate operating account. The corporation is authorized to use all money in the corporate operating account for the purposes of paying prizes and the necessary expenses of the corporation and dividends to the state. The corporation shall allocate the amoun t to be paid by the corporation to prize winners. The amount in the corporate operating account which the corporation anticipates will be available for the payment of prizes on an annuity basis may be invested in direct United States Treasury obligations. These instruments may be in varying maturities with respect to payment of annuities and may be in book -entry form. Monthly, no later than the last business day of the succeeding month, the corporation shall transfer to a lottery trust fund the amount of ne t revenues which the corporation determines are surplus to its needs. These funds shall be held in trust until 1990 at which time the General Assembly shall determine the manner in which the funds will be allocated and appropriated. The net revenues shall be determined by deducting from gross revenues the payment costs incurred in the operation and administration of the lottery, including the expenses of the corporation and the costs resulting from any contract or contracts entered into for promotional, advertising, or operational services or for the purchase or lease of lottery equipment and materials, fixed capital outlays, and the payment of prizes to the holders of winning tickets. After the start -up costs are paid, it is the intent of the Legislature that it shall be the goal of the corporation to transfer each year thirty - five percent (35%) of gross revenues to the general fund for the purposes stated above. (2) A Kentucky lottery trust account is established in the State Treasury. Net lottery revenues shall be credited to this restricted account as provided in subsection (1) of this section. Moneys credited to the Kentucky lottery trust account shall be invested by the state in accordance with state investment practices and all earnings from the investments shall accrue to this account. No moneys shall be allotted or expended from this account unless pursuant to an appropriation by the General Assembly, except that moneys as are needed shall be transferred to the general fund pursuant to the provisions of the Acts of the Extraordinary Session of the 1988 General Assembly. Moneys in the Kentucky lottery trust account shall not lapse at the close of the state fiscal year. (3) Each fiscal year, three million dollars ($3,000,000) from net lottery revenues fro m the sale of lottery tickets shall be credited from the general fund as follows: (a) To the statewide reading research center established under KRS 164.0207, one million two hundred thousand dollars ($1,200,000); and (b) To the reading diagnostic and intervention fund, one million eight hundred thousand dollars ($1,800,000). (4) After the allocation of three million dollars ($3,000,000) to literacy development, as provided in subsection (3) of this section, net lottery revenues from the sale of lottery tickets shall be credited from the general fund as follows: (a) To the Wallace G. Wilkinson Kentucky educational excellence scholarship trust fund established in KRS 164.7877: 1. Forty percent (40%) in fiscal year 2003-2004; and 2. Forty-five percent (45%) in fiscal year 2004-2005 and each fiscal year thereafter; and (b) To the College Access Program and the Kentucky Tuition Grants Program established in KRS Chapter 164: 1. Forty percent (40%) in fiscal year 2003-2004; 2. Forty-five percent (45%) in fiscal year 2004-2005; and 3. Fifty-five percent (55%) of net lottery revenues in fiscal year 2005-2006 and each fiscal year thereafter. (5) The Auditor of Public Accounts shall be responsible for a financial postaudit of the books and records of the corporation. The postaudit shall be conducted in accordance with generally accepted accounting principles, shall be paid for by the corporation, and shall be completed within ninety (90) days of the close of the corporation's fiscal year. The Auditor of Public Accounts shall contract with an independent, certified public accountant who meets the qualifications existing to do business within the Commonwealth of Kentucky to perform the corporation postaudit. The Auditor of Public Accounts shall remain responsible for the annual postaudit and the corporation shall pay all audit costs. The Auditor of Public Accounts may at any time conduct additional audits, including performance audits, of the corporation as he or she deems necessary or desirable. Contracts shall be entered into for audit services for a period not to exceed five (5) years and the same firm shall not receive two (2) consecutive audit contracts. All audits shall be filed with the Governor, the President of the Senate, and the Speaker of the House of Representatives. The corporation shall reimburse the Auditor of Public Accounts for the reasonable costs of any audits performed by him or her. The corporation shall cooperate with the Auditor of Public Accounts by giving employees designated by any of them access to facilities of the corporation for the purpose of efficient compliance with their respective responsibilities. With respect to any reimbursement that the corporation is required to pay to any agency, the corporation shall enter into an agreement with that agency under which the corporation shall pay to the agency an amount reasonably anticipated to cover the reimbursable expenses in advance of the expenses being incurred. (6) By no later than December 31 of each year, in an advertisement at least one-fourth (1/4) of a page in size, the Kentucky Lottery Corporation shall publish the following information in every general-circulation daily newspaper published in Kentucky: (a) The statements of revenue, expenses, and changes in retained earnings as shown in the most recent annual audit report. It shall be explained that the transfer of dividends is the amount of lottery earnings transferred to the general fund; (b) A statement identifying the auditing firm; (c) A telephone number which citizens may call to obtain a complete copy of the annual audit report; and (d) The name of the president/chief executive officer of the Kentucky Lottery Corporation and a complete list of board members. The Kentucky Lottery Corporation shall pay for the cost of the advertisement. Effective: July 1, 2024 History: Amended 2023 Ky. Acts ch. 55, sec. 4, effective July 1, 2024. -- Amended 2005 Ky. Acts ch. 127, sec. 6, effective March 18, 2005. -- Amended 2000 Ky. Acts ch. 13, sec. 6, effective July 14, 2000. -- Amended 1998 Ky. Acts ch. 185, sec. 1, effective July 15, 1998; and ch. 575, sec. 7, effective July 15, 1998. -- Amended 1994 Ky. Acts ch. 170, sec. 8, effective July 15, 1994; and ch. 486, sec. 27, effective July 15, 1994. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 20, effective December 15, 1988. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, C, 3, (10) at 2076. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, K, 2, (1) at 2103. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, K, 2, (2) at 2103. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, K, 2, (3) at 2103. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, K, 2, (4) at 2103. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, K, 2, (5) at 2103. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, K, 2, (6) at 2103. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, K, 2, (9) at 2104. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, K, 2, (13) at 2104. 2026-2028 Budget Reference. See State/Executive Branch Budget, 2026 Ky. Acts ch. 168, Pt. I, K, 2, (14) at 2104. Legislative Research Commission Note (3/18/2005). 2005 Ky. Acts ch. 127, which included an amendment to this section, KRS 154A.130, provides that the Act shall be cited as the "Read to Achieve Act of 2005." Legislative Research Commission Note (1988). Although the compulsive gambling study fund was deleted by Senate floor amendment 28, inadvertently the reference to such fund in subsection (1) of this section was not deleted. The Reviser of Statutes, pursuant to KRS 7.136, has removed the language pertaining to this fund to conform.

KRS 154A.140 Acceptance and expenditure of moneys by corporation -- Corporation to be self sustaining and self funded

154A.140. Acceptance and expenditure of moneys by corporation -- Corporation to be self sustaining and self funded (1) The corporation is hereby authorized to accept and expend such moneys as may be appropriated by the General Assembly or such moneys as may be received from any source, including income from the corporation's operations, for effectuating its corporate purposes including, without limitation, the payment of the initial expenses of administration and operation of the corporation and the lottery. (2) After the transfer of any appropriated funds provided by subsection (1) of this section, the corporation shall be self sustaining and self funded and moneys in the state general fund shall not be used or obligated to pay the expenses of the corporation or prizes of the lottery and no claim for the payment of an expense of the lottery or prizes of the lottery shall be made against any moneys other than moneys credited to the corporate operating account established by KRS 154A.130. Effective: December 15, 1988 History: Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 21, effective December 15, 1988.

KRS 154A.150 Ticket distribution

154A.150. Ticket distribution Federally insured financial institutions may be utilized by the corporation to distribute lottery tickets to retailers. Effective: December 15, 1988 History: Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 24, effective December 15, 1988.

KRS 154A.160 Prohibitions

154A.160. Prohibitions (1) The corporation shall not organize, participate in, or contribute to a political action committee, either directly or indirectly. (2) No person who receives goods, services, moneys, or rights having monetary value in excess of fifty dollars ($50) pursuant to any contract with the corporation, and no agent, officer, employee, shareholder, or partner of such person, shall pay money, service, or other thing of value, to or for the benefit of, any agent, officer, employee of the corporation or to any person having the authority to appoint or to confirm the appointment of any agent, officer, and employee of the corporation on account of, in consideration for, or to induce the corporation to enter into the contract. This section shall not apply to otherwise lawful contributions to political campaigns. Effective: March 16, 2005 History: Amended 2005 Ky. Acts ch. 105, sec. 11, effective March 16, 2005. -- Amended 1994 Ky. Acts ch. 170, sec. 9, effective July 15, 1994. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, secs. 22, 23, and 25, effective December 15, 1988.

KRS 154A.400 Statewide network of lottery retailers -- Criteria for selection -- Uniform fees -- Suspension, revocation or termination of contract -- Purchase or lease of on-line equipment -- Contracts not transferable or assignable -- Certificates -- General Assembly members not prohibited from being retailers -- Payment of prize -- Sales tax exemption

154A.400. Statewide network of lottery retailers -- Criteria for selection -- Uniform fees -- Suspension, revocation or termination of contract -- Purchase or lease of on-line equipment -- Contracts not transferable or assignable -- Certificates -- General Assembly members not prohibited from being retailers -- Payment of prize -- Sales tax exemption (1) (a) The General Assembly hereby recognizes that to conduct a successful lottery, the corporation must develop and maintain a statewide network of lottery retailers that will serve the public convenience or promote the sale of tickets, while insuring the integrity of the lottery. (b) To govern the selection of lottery retailers, the board shall, by administrative regulation, develop a list of objective criteria upon which the selection of lottery retailers shall be based. Separate criteria shall be developed to govern the selection of retailers of instant tickets and on-line retailers. In developing these criteria the board shall consider such factors as the applicant's financial responsibility, security of the applicant's place of business or activity, integrity, and reputation; however, the board shall not consider political affiliation, activities, or monetary contributions to political organizations or candidates for any public office. The criteria shall include, but not be limited to the following: 1. The applicant shall be current in payment of all taxes, interest and penalties owed to any taxing subdivision where the lottery retailer will sell lottery tickets; 2. The applicant shall be current in filing all applicable tax returns and in payment of all taxes, interest and penalties owed to the Commonwealth of Kentucky, excluding items under formal appeal pursuant to applicable statutes; 3. No person, partnership, unincorporated association, corporation, or other business entity shall be selected as a lottery retailer for the sale of instant tickets or on-line games who: a. Has been convicted of a felony related to the security or integrity of the lottery in this or any other jurisdiction, unless at least ten (10) years have passed since satisfactory completion of the sentence or probation imposed by the court for each felony; b. Has been convicted of any illegal gambling activity in this or any other jurisdiction, unless at least ten (10) years have passed since satisfactory completion of the sentence or probation imposed by the court for each conviction; c. Has been found to have violated the provisions of this chapter or any administrative regulation adopted hereunder, unless at least ten (10) years have passed since the violation; d. Is a vendor or an employee or agent of any vendor doing business with the corporation; e. Resides in the same household as an officer of the corporation; or f. Has made a statement of material fact to the corporation, knowing such statement to be false, unless at least ten (10) years have passed since the statement was made. 4. Retailers shall be afforded the same exceptions to disqualification as provided for vendors in KRS 154A.600(4)(a) and (b) or (c). 5. In addition to the provisions of subsection (3) of this section, no person, partnership, unincorporated association, corporation, or other business entity shall be selected as an on-line lottery retailer who: a. Has been denied a license to sell instant tickets on the basis of objective criteria established by the board, or any provision of this chapter; or b. Has failed to sell sufficient instant tickets to indicate that the location of an on-line game at his outlet would be of economic benefit to him or the lottery corporation. 6. The applicant shall not be engaged exclusively in the sale of lottery tickets. However, this paragraph does not preclude the corporation from contracting for the sale of lottery tickets with nonprofit, charitable organizations or units of local government in accordance with the provisions of this chapter. (c) Persons applying to become lottery retailers shall be charged a uniform application fee for each lottery outlet. Retailers chosen to participate in on-line games shall be charged a uniform annual fee for each on-line outlet. (d) Any lottery retailer contract executed pursuant to this section may, for good cause, be suspended, revoked, or terminated by the president if the retailer is found to have violated any of the objective criteria established by the board as provided in subsection (1) of this section. Review of such action shall be in accordance with the procedures outlined in KRS 154A.090. All lottery retailer contracts shall be renewable annually after issuance unless sooner canceled or terminated. (2) (a) A retailer who has been denied an on-line game for reasons other than financial responsibility, security, or integrity shall be permitted to purchase or lease the equipment necessary to operate such a game from the corporation in a manner consistent with the corporation's manner of acquisition. A retailer need not file an appeal before being permitted to purchase or lease on-line equipment. (b) After one (1) year of operation, any retailer who purchased or leased on-line equipment pursuant to paragraph (a) of this subsection and whose sales are equal to or greater than the statewide average of sales of on-line retailers, shall be reimbursed the cost of the purchase or lease by the corporation. The board may purchase the terminals of other retailers who purchased their equipment if the board determines that such purchase is in the best interest of the lottery. (3) No lottery retailer contract awarded under this section shall be transferable or assignable. No lottery retailer shall contract with any person for lottery goods or services except with the approval of the board. (4) Each lottery retailer shall be issued a lottery retailer certificate which shall be conspicuously displayed at the place where the lottery retailer is authorized to sell lottery tickets. Lottery tickets shall only be sold by the retailer at the location stated on the lottery retailer certificate. (5) A member of the General Assembly who meets the same requirements as any other applicant to be a retailer may be granted a retail contract to sell lottery tickets or participate in any other lottery game operations. No member of the General Assembly shall be entitled to preference over any other applicant for a contract. (6) For the convenience of the public, all retailers shall be authorized to pay winners up to six hundred dollars ($600) after the retailer performs validation procedures appropriate to the lottery game involved. Lottery tickets shall be exempt from the Kentucky sales tax. Effective: December 15, 1988 History: Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 9, effective December 15, 1988.

KRS 154A.410 Content of contracts -- Powers of president in regard to contracts

154A.410. Content of contracts -- Powers of president in regard to contracts (1) Any contract executed by the corporation pursuant to this chapter shall specify the reasons for which any contract may be suspended, revoked, or terminated by the corporation, including, but not limited to: (a) Commission of a violation of this chapter or administrative regulations adopted pursuant thereto; (b) Failure to accurately account for lottery tickets, revenues, or prizes as required by the corporation; (c) Commission of any fraud, deceit, or misrepresentation; (d) Insufficient sale of tickets; (e) Conduct prejudicial to public confidence in the lottery; (f) Any material change in any matter considered by the corporation in executing the contract with the retailer; (g) Failure to meet any of the objective criteria established by the board pursuant to KRS 154A.400(1). (2) If, in the discretion of the president, such denial, revocation, suspension or rejection of renewal is in the best interests of the lottery, the public welfare, or the Commonwealth of Kentucky, the president may suspend, revoke, or terminate, after notice and a hearing, any contract issued pursuant to this chapter. Such contract may, however, be temporarily suspended by the president without prior notice, pending any prosecution, hearing, or investigation, whether by a third party or by the president. A contract may be suspended, revoked, or terminated by the president for one (1) or more of the reasons enumerated in subsection (1) of this section. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 170, sec. 10, effective July 15, 1994. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 10, effective December 15, 1988.

KRS 154A.420 Proceeds from ticket sales to constitute trust fund -- Administrative regulation governing retailers' deposit of lottery proceeds -- Liability of lottery retailers -- Priority of debt to corporation -- Lien to secure retailer's obligation to remit proceeds

154A.420. Proceeds from ticket sales to constitute trust fund -- Administrative regulation governing retailers' deposit of lottery proceeds -- Liability of lottery retailers -- Priority of debt to corporation -- Lien to secure retailer's obligation to remit proceeds (1) All proceeds from the sale of lottery tickets received by a person in the capacity of a lottery retailer shall constitute a trust fund until paid to the corporation either directly, or through the corporation's authorized collection representative. Proceeds shall include unsold instant tickets received by a lottery retailer and cash proceeds of sale of any lottery products, net of allowable sales commissions and credit for lottery prizes paid to winners by lottery retailers. Sales proceeds and unused instant tickets shall be delivered to the corporation or its authorized collection representative upon demand. The corporation shall, by administrative regulation, require retailers to place all lottery proceeds due the corporation in accounts in institutions insured by the Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation not later than the close of the next banking day after the date of their collection by the retailer until the date they are paid over to the corporation. The corporation may require a retailer to establish a single separate electronic funds transfer account, where available, for the purpose of receiving moneys from ticket sales, making payments to the corporation, and receiving payments from the corporation. Lottery retailers shall be personally liable for all proceeds. This section shall apply to all lottery tickets generated by computer terminal, other electronic device, and any other tickets delivered to lottery retailers. (2) Whenever any person who receives proceeds from the sale of lottery tickets in the capacity of a lottery retailer becomes insolvent, or dies insolvent, the proceeds due the corporation from such person or his estate shall have preference over all debts or demands. (3) (a) A lien is hereby given to the corporation on all funds and other personal property, on all real property, and on all rights to real or personal property owned or subsequently acquired by each retailer in the amount of, and to secure, the retailer's obligations to remit lottery proceeds to the corporation. The lien shall be in the amount of all sums due to the corporation at any time, together with all interest, penalties, fees, commissions, charges, and other expenses incurred by reason of nonpayment of the lottery proceeds to the corporation or in the process of collecting those proceeds, and shall have priority over any other obligation or liability for which the funds or real or personal property are liable. The lien shall be of equal rank with the tax liens of the state, or any city, county, or other taxing authority within the state. The lien shall arise upon the receipt of lottery proceeds by the retailer, whether or not the retailer is at that time obligated to remit all or any portion of those proceeds to the corporation, and shall be enforceable until the liability is paid or extinguished. (b) The lien imposed by paragraph (a) of this subsection shall not be valid as against any purchaser, judgment lien creditor, or holder of a security interest or mechanic's lien until notice of the corporation's lien has been filed by the corporation with the county clerk of any county or counties in which the retailer's business or residence is located, or in any county in which the retailer has an interest in property. The recording of the lien shall constitute notice of both the original obligation to the corporation and all subsequent obligations to the corporation of the same retailer. Upon request, the corporation shall disclose the specific amount of liability at any given date to any interested party legally entitled to the information. (c) Even though notice of a lien has been filed as provided by paragraph (b) of this subsection, and notwithstanding the provisions of KRS 382.520, the lien imposed by paragraph (a) of this subsection shall not be valid with respect to a security interest which comes into existence after the notice of lien has been filed by reason of disbursements made within forty-five (45) days after the date the lien was filed or the date the person making the disbursements had actual notice of the lien filing, whichever is earlier, if the security interest: 1. Is in property which at the time of filing is subject to the lien imposed by paragraph (a) of this subsection, and is covered by the terms of a written agreement entered into before the lien is filed; and 2. Is protected under local law against a judgment lien arising as of the time of the lien filing, out of an unsecured obligation. (d) The corporation shall be afforded the same rights and remedies with respect to enforcement of any lien and collection of lottery proceeds as is afforded state, county, city, and other taxing authorities by KRS Chapter 134. Effective: July 15, 1994 History: Amended 1994 Ky. Acts ch. 170, sec. 11, effective July 15, 1994. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 13, effective December 15, 1988.

KRS 154A.430 Computation of retailer's rental payments

154A.430. Computation of retailer's rental payments If a lottery retailer's rental payments for the business premises are contractually computed, in whole or in part, on the basis of a percentage of retail sales, and such computation of retail sales is not explicitly defined to include sales of tickets in a state- operated lottery, the compensation received by the lottery retailer from the lottery shall be considered the amount of the retail sale for purposes of computing the rental payment. Effective: December 15, 1988 History: Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 14, effective December 15, 1988.

KRS 154A.440 Ticket price -- Gift -- Sale -- Tickets given as means of business promotion -- Location of sale

154A.440. Ticket price -- Gift -- Sale -- Tickets given as means of business promotion -- Location of sale (1) No person shall sell a ticket at a price other than that established by the corporation, unless authorized in writing by the president. No person other than a duly certified lottery retailer shall sell lottery tickets, except that nothing in this chapter shall be construed to prevent a person who may lawfully purchase tickets from making a gift of lottery tickets to another. Nothing in this chapter shall be construed to prohibit the corporation from designating certain of its agents and employees to sell lottery tickets directly to the public. (2) Lottery tickets may be given by merchants as a means of promoting goods or services to customers or prospective customers subject to approval by the corporation. (3) No lottery retailer shall sell a ticket away from the locations listed in his contract. Effective: December 15, 1988 History: Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 15, effective December 15, 1988.

KRS 154A.450 Lottery vending machines located within sight of retailer's employee -- Exceptions

154A.450. Lottery vending machines located within sight of retailer's employee -- Exceptions (1) Except for lottery vending machines located in factories or lottery vending machines located in package liquor stores, bars, or taverns to which persons under the age of eighteen (18) years are not permitted access, a lottery retailer shall locate any vending machine from which lottery tickets are dispensed in the sight of the employees of the lottery retailer. (2) The provisions of this section shall not apply to blind persons who operate vending machines as a part of a program established by federal or state law. Effective: July 15, 2002 History: Created 2002 Ky. Acts ch. 205, sec. 1, effective July 15, 2002.

KRS 154A.600 Purchase, lease, or lease-purchase of goods or services -- Investigation of prospective contractees -- Disclosure requirements -- Prohibited contracts, exceptions -- Vendor's performance bond, letter of credit or deposit of security -- Liquidated damages -- Laws governing contracts

154A.600. Purchase, lease, or lease-purchase of goods or services -- Investigation of prospective contractees -- Disclosure requirements -- Prohibited contracts, exceptions -- Vendor's performance bond, letter of credit or deposit of security -- Liquidated damages -- Laws governing contracts (1) The corporation may purchase, lease, or lease-purchase such goods or services as are necessary for effectuating the purposes of this chapter. Applicable leases, purchases, and lease-purchases shall be reported to the capital projects and bond oversight committee for its review and determination in accordance with the provisions of KRS 45.750 to 45.810. The corporation shall not contract with any person or entity for the total operation and administration of the state lottery, but may make procurements which integrate functions such as lottery game design, lottery ticket distribution to retailers, supply of goods and services, and advertising. In all procurement decisions, the corporation shall take into account the particularly sensitive nature of the state lottery and shall act to promote and ensure security, honesty, fairness and integrity in the operation and administration of the lottery and the objectives of raising net proceeds for the benefit of the public purpose described in this chapter. (2) The corporation shall investigate the financial responsibility, security, and integrity of any person who submits a bid, proposal or offer as part of a major procurement. At the time of submitting such bid, proposal, or offer to the corporation, the corporation may require the following items: (a) A disclosure of the vendor's name and address and, as applicable, the name and address of the following: 1. If the vendor is a corporation, the officers, directors, and each stockholder in such corporation; except that, in the case of owners of equity securities of a publicly traded corporation, only the names and addresses of those known to the corporation to own beneficially five percent (5%) or more of such securities need be disclosed; 2. If the vendor is a trust, the trustee and all persons entitled to receive income or benefit from the trust; 3. If the vendor is an association, the members, officers, and directors; and 4. If the vendor is a partnership or joint venture, all of the general partners, limited partners, or joint venturers. (b) A disclosure of all the states and jurisdictions in which the vendor does business, and the nature of the business for each such state or jurisdiction. (c) A disclosure of all the states and jurisdictions in which the vendor has contracts to supply gaming goods or services, including, but not limited to, lottery goods and services, and the nature of the goods or services involved for each such state or jurisdiction. (d) A disclosure of all the states and jurisdictions in which the vendor has applied for, has sought renewal of, has received, has been denied, has pending, or has had revoked a gaming license of any kind, and the disposition of such in each such state or jurisdiction. If any gaming license has been revoked or has not been renewed or any gaming license application has been either denied or is pending and has remained pending for more than six (6) months, all of the facts and circumstances underlying the failure to receive such a license shall be disclosed. (e) A disclosure of the details of any finding of guilt, in a state or federal court, against the vendor for any felony or any other criminal offense other than a traffic violation. (f) A disclosure of the details of any bankruptcy, insolvency, reorganization, or any pending litigation of the vendor. (g) Such additional disclosures and information as the corporation may determine to be appropriate for the procurement involved. If the vendor subcontracts any substantial portion of the work to be performed under the contract to a subcontractor, the vendor shall disclose all of the information required by this subsection for the subcontractor as if the subcontractor were itself a vendor. (3) A contract for a procurement with any vendor subject to subsection (2) of this section who has not complied with the disclosure requirements described in subsection (2) of this section shall not be entered into, and any contract with such a vendor is unenforceable. Any contract with a vendor who does not comply with such requirements for periodically updating such disclosures during the tenure of contract as may be specified in such contract shall be terminated by the corporation. This subsection and subsection (2) of this section shall be construed broadly and liberally to achieve the ends of full disclosure of all information necessary to allow for a full and complete evaluation by the corporation of the competence, integrity, background and character of vendors for major procurements. (4) A contract shall not be entered into with any vendor who has been found guilty of a felony committed within the preceding ten (10) years, unless the corporation determines that: (a) The vendor has been pardoned or the vendor's civil rights have been restored; and (b) Subsequent to such findings of guilt the vendor has engaged in the kind of law-abiding commerce and good citizenship that would reflect well upon the integrity of the lottery; or (c) If the vendor is a firm, association, partnership, trust, corporation or other entity, the vendor has terminated its relationship with the individual whose actions directly contributed to the vendor's guilt. (5) Each vendor shall, at the execution of the contract with the corporation, post a performance bond or letter of credit from a bank acceptable to the corporation, in an amount equal to the full amount estimated to be paid annually to the vendor under the contract. In lieu of the bond, a vendor may, to assure the faithful performance of its obligations, deposit and maintain with the State Treasurer securities that are interest bearing or accruing and that, with the exception of those specified in paragraph (a) or (b) of this subsection, are rated in one (1) of the three (3) highest classifications by an established nationally recognized investment rating service. Securities eligible under this subsection are limited to: (a) Certificates of deposit issued by solvent banks or savings associations organized and existing under the laws of this state or under the laws of the United States and having their principal place of business in this state; (b) United States bonds, notes, and bills for which the full faith and credit of the government of the United States is pledged for the payment of principal and interest; (c) General obligation bonds and notes of any political subdivision of the state; or (d) Corporate bonds of any corporation that is not an affiliate or subsidiary of the depositor. Such securities shall be held in trust and shall have at all times a market value at least equal to the full amount estimated to be paid annually to the lottery vendor under contract. (6) Every contract entered into by the corporation pursuant to this section shall contain a provision for payment of liquidated damages to the corporation for any breach of contract by the vendor. (7) Each vendor shall be qualified to do business in this state and shall file appropriate tax returns as provided by the laws of this state. All contracts under this section shall be governed by the laws of this state. Effective: December 15, 1988 History: Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 17, effective December 15, 1988.

KRS 154A.650 Criminal background investigations -- Duties of corporation or its security division

154A.650. Criminal background investigations -- Duties of corporation or its security division (1) The Department of Kentucky State Police shall, at the request of the division of security, perform full criminal background investigations on all potential vendors and potential employees of the corporation at the level of division director and above and at any level within the division of security. The corporation shall reimburse the Department of Kentucky State Police for the actual costs of such investigations. (2) The corporation or its division of security shall: (a) Conduct criminal background investigations and credit investigations on all potential retailers and investigate all potential employees of the corporation not referred to in subsection (1) of this section; (b) Supervise ticket validation and lottery drawings; (c) Inspect at times determined solely by the division, the facilities of any vendor in order to determine the integrity of the vendor's product and in order to determine whether the vendor is in compliance with its contract; (d) Report any suspected violations of this chapter to the appropriate Commonwealth's attorney, or the Attorney General and law enforcement agencies; and (e) Upon request, provide assistance to any Commonwealth's attorney, the Attorney General or law enforcement agency investigating a violation of this chapter. Effective: June 26, 2007 History: Amended 2007 Ky. Acts ch. 85, sec. 163, effective June 26, 2007. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 19, effective December 15, 1988.

KRS 154A.990 Penalties

154A.990. Penalties (1) (a) Any person who knowingly sells a lottery ticket to a person under eighteen (18) years of age shall be guilty of a violation for the first offense and for each subsequent offense shall be guilty of a Class B misdemeanor. (b) Any lottery retailer who violates KRS 154A.450 shall be notified by the corporation in writing that the retailer shall have thirty (30) days in which to correct the violation. If at the end of that thirty (30) day period the violation is not corrected, the corporation shall remove all lottery vending machines from the retailer's premises. (2) Any person who, with intent to defraud, falsely makes, alters, forges, utters, passes, or counterfeits a state lottery ticket shall be guilty of a Class C felony. (3) Any person who influences or attempts to influence the winning of a prize through the use of coercion, fraud, deception, or tampering with lottery equipment or materials shall be guilty of a Class B felony. (4) Any person who violates the provisions of KRS 154A.030(2) shall be guilty of a Class D felony and shall be removed from the board. (5) Any person who violates the provisions of KRS 154A.080(2) shall be fined not less than five thousand dollars ($5,000) nor more than fifty thousand dollars ($50,000) and shall be guilty of a Class D felony. (6) Any person who violates the provisions of KRS 154A.080(3) shall be guilty of a Class D felony. (7) Any person who violates the provisions of KRS 154A.080(4) shall be guilty of a Class A misdemeanor. (8) Any person, including any retailer and any officers, directors, or employees of a corporate retailer, any general partner or employee of a retailer which is a partnership or joint venture, or any owner or employee of a retailer which is a sole proprietorship, who willfully violates the provisions of KRS 154A.420(1) shall be fined not less than one thousand dollars ($1,000) nor more than ten thousand dollars ($10,000) and shall be guilty of a Class D felony. (9) Any person who violates the provisions of KRS 154A.440(1) for the first offense shall be guilty of a violation and for each subsequent offense shall be guilty of a Class B misdemeanor. (10) Any person violating KRS 154A.160(2) is guilty of a Class D felony. (11) Any person who knowingly provides false or intentionally misleading information to the corporation in connection with a background investigation prior to employment pursuant to KRS 154A.080(5), an application for a lottery retailer certificate under KRS 154A.400, the corporation's investigation of prospective vendors pursuant to KRS 154A.600, or any investigation by the corporation's Division of Security shall be fined not less than one thousand dollars ($1,000) nor more than ten thousand dollars ($10,000), and shall be guilty of a Class D felony. (12) Unless the corporation shall have promulgated administrative regulations governing its procurements under KRS 154A.120(1), the provisions of KRS 45A.990(1) to 45A.990(8) shall be deemed to apply to procurement activities conducted under this chapter which are governed by KRS Chapter 45A. If the corporation has promulgated administrative regulations governing its procurements, any person who willfully violates the administrative regulations shall be guilty of a Class A misdemeanor. Effective: March 16, 2005 History: Amended 2005 Ky. Acts ch. 105, sec. 12, effective March 16, 2005. -- Amended 2002 Ky. Acts ch. 205, sec. 2, effective July 15, 2002. -- Amended 1994 Ky. Acts ch. 170, sec. 12, effective July 15, 1994. – Amended 1992 Ky. Acts ch. 463, sec. 18, effective July 14, 1992. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, secs. 25 and 29, effective December 15, 1988. Legislative Research Commission Note (1988). Although references to the sale of "shares" were deleted in the Senate committee substitute, due to a clerical error, such reference was not deleted in subsection (2) of this section. The Reviser of Statutes, pursuant to KRS 7.136, has removed the words "or shares" to conform.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=37817Fetched: 10/20/2026