KRS 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 sub ject 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 h ead 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 o f 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 s hall 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 divisio n 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 De partment 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 b y 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.