KRS 230.225: Kentucky Horse Racing and Gaming Corporation -- Board of directors --

Annual audit -- Annual report -- Office -- Meetings -- Responsibilities --

Operations -- Limitations -- Enforcement -- Administrative regulations.

(1) There is he reby created and established the Kentucky Horse Racing and Gaming

Corporation to regulate all forms of live horse racing, pari -mutuel wagering, sports

wagering, fantasy contests, fixed -odds wagering, breed integrity and development,

and on and after July 1 , 2025, charitable gaming, in the Commonwealth, exclusive

of the state lottery established under KRS Chapter 154A. It shall be an independent,

de jure municipal corporation and political subdivision of the Commonwealth of

Kentucky which shall be a public b ody corporate and politic. The corporation shall

be deemed a public agency within the meaning of KRS 61.805 and 61.870. The

corporation shall be managed in such a manner that enables the people of the

Commonwealth to benefit from its actions and to enjoy t he best possible racing and

gaming experiences. The General Assembly hereby recognizes that the operations

of racing and gaming are unique activities for state government and that a corporate

structure will best enable racing and gaming to be managed in a businesslike

manner. It is the intent of the General Assembly that the Kentucky Horse Racing

and Gaming Corporation shall be accountable to the Governor, the General

Assembly, and the people of the Commonwealth.

(2) (a) 1. The Auditor of Public Accounts sh all perform an audit of the

corporation once every four (4) years, a copy of which shall be sent to

the Governor and the Legislative Research Commission.

2. A different auditing entity that is qualified to evaluate municipal

corporations shall conduct an a nnual audit of the corporation once each

year in every year when the Auditor of Public Accounts does not

perform an audit. A copy of this audit shall be sent to the Governor and

Legislative Research Commission.

3. This first audit conducted under this subs ection shall cover fiscal year

2024-2025.

(b) The corporation shall submit a written annual report to the Governor and the

Legislative Research Commission on or before October 1 of each year. The

corporation shall file any additional reports requested by t he Governor or the

Legislative Research Commission. The annual report shall include the

following information:

1. The receipts and disbursements of the corporation; and

2. Actions taken by the corporation.

(c) The corporation may submit any additional information and recommendations

that the corporation considers useful or that the Governor or the Legislative

Research Commission requests.

(3) The Kentucky Horse Racing and Gaming Corporation shall be administered by a

board of directors to regulate the conduct of:

(a) Live horse racing;

(b) Pari-mutuel wagering;

(c) Sports wagering;

(d) Fantasy contests;

(e) Charitable gaming;

(f) Breed integrity and development; and

(g) Related activities within the Commonwealth of Kentucky.

(4) (a) The corporation shall establish and maintain a general office for the

transaction of its business and may, in its discretion, establish a branch office

or offices.

(b) The corporation may hold meetings at any of its offices or at any o ther place

at its convenience.

(c) A majority of the voting members of the corporation shall constitute a quorum

for the transaction of its business or exercise of any of its powers.

(5) Except as otherwise provided, the corporation shall be responsible fo r the

following:

(a) Developing and implementing programs designed to ensure the safety and

well-being of horses, jockeys, and drivers;

(b) Developing programs and procedures that will fulfill its oversight and

regulatory role on such matters as medical practices and integrity issues;

(c) Recommending tax incentives and implementing incentive programs to ensure

the strength and growth of the equine industry;

(d) Designing and implementing programs that strengthen the ties between

Kentucky's horse industry a nd the state's universities, with the goal of

significantly increasing the economic impact of the horse industry on

Kentucky's economy, improving research for the purpose of promoting the

enhanced health and welfare of the horse, and other related industry issues;

(e) Developing and supporting programs which ensure that Kentucky remains in

the forefront of equine research;

(f) Designing and implementing programs that support and ensure breed integrity

and development;

(g) Developing monitoring programs to e nsure the highest integrity of sporting

events and sports wagering;

(h) Developing a program to share wagering information with sports governing

bodies upon which sports wagering may be conducted. The program shall be

designed to assist the corporation in determining potential problems or

questionable activity and provide reports to sports governing bodies

effectively;

(i) Developing and implementing programs to ensure the highest integrity of

fantasy contests;

(j) Developing programs and procedures that wi ll fulfill its oversight and

regulatory role to ensure the highest integrity in charitable gaming;

(k) Developing programs and procedures that will provide oversight and

regulation for all current forms of gaming and wagering;

(l) Annually evaluating the allocation and use of funds among the purposes listed

in KRS 230.3612 from unredeemed pari-mutuel vouchers; and

(m) Ensuring that the correct responsibilities are assigned to each of its offices as

established in KRS 230.232.

(6) (a) The corporation shall conduct all procurements in accordance with procedures

which are not inconsistent with the provisions of KRS Chapter 45A and this

chapter; provided, however, that this chapter shall control if and to the extent

that any provision in this chapter is expressly inconsistent with any provision

of KRS Chapter 45A.

(b) The corporation may promulgate 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 KRS Chapter 45A, the corporation

may include sections o f KRS Chapter 45A as part of its administrative

regulations.

(c) Major 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. 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 and the grea test

integrity for the corporation and the public.

(d) 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 pr esident of the

corporation may, in lieu of the secretary of the Finance and Administration

Cabinet, declare an emergency for purchasing purposes.

(7) Corporation records shall be open and subject to public inspection in accordance

with KRS 61.870 to 61.884 unless:

(a) A record is exempted from inspection under KRS 61.878;

(b) A record involves a trade secret or other legally protected intellectual property

or confidential proprietary information of the corporation or of an applicant,

licensee, individual, o r entity having submitted information of such character

to the corporation, in which case, the portion of the record relating to these

subjects may be closed; or

(c) The disclosure of the record could impair or adversely affect the operational

security of the corporation in the regulation of matters within its jurisdiction

or could impair or adversely impact the operational security of applicants or

licensees.

(8) Meetings of the corporation through its board of directors shall be open to the

public in acco rdance with KRS 61.800 to 61.850 unless the exceptions set forth in

KRS 61.810 apply or the meeting addresses trade secrets, confidential or

proprietary information, or operational security issues as described in subsection

(7)(c) of this section. If this is the case, the corporation may meet in closed session

and shall follow the procedures set forth in KRS 61.815.

(9) The corporation may participate in all state agency price contracts to the same

extent as agencies of the Commonwealth in accordance with KRS 45A.050(3).

(10) (a) 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 for effectuating its purposes, including without

limitation the payment of the initial expenses of administration and operation

of the corporation.

(b) After the transfer to the corporation of any funds appropriated in fiscal year

2024-2025 and fiscal year 2025 -2026 for the administration of this chapter

and KRS Chapter 238, 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.

(11) On July 1, 2024:

(a) The Kentucky Horse Racing and Gaming Corporation shall assu me all

responsibilities of the Kentucky Horse Racing Commission;

(b) The Kentucky Horse Racing Commission shall be abolished and all

employees of the Kentucky Horse Racing Commission are transferred to the

corporation; and

(c) All personnel, equipment, and funding shall be transferred from the Kentucky

Horse Racing Commission to the Kentucky Horse Racing and Gaming

Corporation.

(12) On July 1, 2025:

(a) The office regulating charitable gaming in the Kentucky Horse Racing and

Gaming Corporation shall assume all responsibilities of the Department of

Charitable Gaming;

(b) The Department of Charitable Gaming shall be abolished and all employees

of the Department of Charitable Gaming are transferred to the corporation;

and

(c) All personnel, equipment, and fundi ng shall be transferred from the

Department of Charitable Gaming to the Kentucky Horse Racing and Gaming

Corporation.

(13) Notwithstanding any other law to the contrary, nothing in this chapter or KRS

Chapter 238 shall authorize the corporation to:

(a) Regulate or control horse sales;

(b) Require the licensure of horse breeders in their capacity as breeders;

(c) Prohibit or restrict any approved, either by statute or administrative

regulation, game or charitable gaming activity in use in the Commonwealth as

of July 1, 2025, without action by the Kentucky General Assembly; or

(d) Exercise jurisdiction over matters within the exclusive national authority of

entities designated by the laws of the United States of America.

(14) This section shall not prohibit th e corporation from denying, suspending, or

revoking a license, imposing probationary conditions on a license, issuing a written

reprimand or warning, imposing fines or penalties, issuing cease and desist orders,

or any combination thereof with regard to an y licensee or person participating in

charitable gaming in Kentucky for a violation of any federal or state statute, KRS

Chapter 238, or any administrative regulation promulgated by the corporation

pursuant to this chapter or KRS Chapter 238.

(15) The Attorney General has concurrent jurisdiction with the Commonwealth's

attorneys and county attorneys of this state for the enforcement and prosecution of

offenses under this chapter and KRS Chapter 238.

(16) (a) A licensee required to submit a report to the corporation under this chapter or

KRS Chapter 238 shall submit with the report an attestation that the report is

true, correct, and complete to the best of the applicant's knowledge and belief

under penalty of perjury.

(b) Any information or data in t he report provided to the corporation that is

substantially misleading or containing materially false information shall be

under penalty of refusal, suspension, or revocation of the license by the

corporation.