02RS HB743


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HB 743 (BR 2290) - T. Burch, L. Clark, B. Heleringer, C. Siler

     AN ACT relating to charitable gaming.
     Create a new section of KRS Chapter 238 to authorize the commission to implement pilot programs regarding conduct of charitable gaming; amend KRS 238.500 to allow for electronic accounting of moneys generated; amend KRS 238.505 to change department to charitable gaming regulatory commission and define new terms; amend KRS 238.510 to create the commission to be composed of an executive director, necessary staff, and a seven-member board; amend KRS 238.515 to authorize the commission to implement reasonable standards and secure electronic systems of accounting; amend KRS 238.520 to give the board discretion and authority to establish standards for conduct of charitable gaming, establish the process and frequency for holding meetings and hearings, and set forth factors for the board to consider in establishing standards for charitable gaming; amend KRS 238.525 to change reference from the department to the commission; amend KRS 238.530 to require manufacturers to affix serial numbers to all charitable gaming supplies and equipment; amend KRS 238.535 to provide that the three-year establishment period for charitable gaming license eligibility does not begin to run for certain organizations until the IRS has issued a written determination that the organization is tax exempt; amend KRS 238.536 to authorize the commission to revoke a license if the licensee is found to have misstated its financial information for the purpose of overstating its retention percentage to avoid penalties for a 40 percent violation; amend KRS 238.540 to allow licensed charities to obtain certain fixture-type equipment from a charitable gaming facility operator as opposed to a distributor; amend KRS 238.545 to raise the bingo session payout maximum from $5,000 to $7,500, allow licensees to run a progressive bingo game with a prize not to exceed $10,000, allow the commission to conduct a combined bingo game in which players from multiple locations compete for a prize not to exceed $50,000, raise from $10 to $100 the value of noncash bingo prizes for which minors can compete, and allow licensed charities to sell pulltabs via a dispenser at their places of business or at their gaming locations; amend KRS 238.547 to increase from one to two the gatherings that may be held at a special limited charity fundraising event; amend KRS 238.550 to detail records to be kept by charitable organizations, and require organizations to maintain records electronically within four years of passage of Act; amend KRS 238.555 to authorize licensed facilities to host up to 20 bingo sessions per week without reference to size of community where located, establish two-tiered license fee based on number of bingo sessions to be held, and make lying on a report by a charitable facility grounds for disciplinary action, including license revocation; amend KRS 238.560 to allow commission to take administrative action against any party required to hold a license for the conduct of any activity under this chapter, and allow the commission to reinstate a revoked license after two years under certain circumstances; amend KRS 238.565 to establish a three member panel of commissioners to review hearing officer's recommendations and enter final orders, and require parties to file exceptions to hearing officer's recommendations in order to preserve errors for review by commission prior to entry of a final order; amend KRS 238.570 to change the reference from the department to the commission; amend various sections of the KRS to reflect the name change from the department to the charitable gaming regulatory commission.


     HCS - Retain original provisions except stay the implementation of the higher prize limits for each bingo session until the commission has promulgated administrative regulations authorizing the increase; delete language allowing the commission to impose administrative fines on non-licensed persons.

     Feb 25-introduced in House
     Feb 26-to Licensing and Occupations (H)
     Mar 1-posted in committee
     Mar 6-reported favorably, 1st reading, to Calendar with Committee Substitute
     Mar 7-2nd reading, to Rules
     Mar 14-posted for passage in the Regular Orders of the Day for Friday, March 15, 2002; recommitted to Appropriations and Revenue (H)

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