KRS 238.530: Licensing of distributors and manufacturers of supplies and equipment --

Fee -- Eligibility -- Restrictions.

(1) A person shall not sell, offer to sell, rent, lease, or otherwise furnish charitable

gaming supplies or equipment unles s the person is licensed by the office as a

distributor. The office shall charge a license fee not to exceed five thousand dollars

($5,000).

(2) A person shall not sell, offer to sell, rent, lease, or otherwise furnish charitable

gaming supplies and equipm ent unless the person is licensed by the office as a

manufacturer. The office shall charge a license fee not to exceed five thousand

dollars ($5,000).

(3) A person who is licensed as a charitable organization, and an owner, officer,

employee, or member of the immediate family of an owner, officer, or employee of

a licensed charitable gaming facility shall not be eligible for licensure as a

distributor or manufacturer. An affiliate of an owner, officer, or employee, or

member of the immediate family of an ow ner, officer, or employee of a licensed

charitable gaming facility shall not be licensed as a distributor or manufacturer. A

person who is a licensed wholesaler or distributor of alcoholic beverages shall not

be licensed as a distributor or manufacturer. A person who is licensed as a

distributor shall not be licensed as a manufacturer, and a person licensed as a

manufacturer shall not be licensed as a distributor.

(4) An applicant for a license as a manufacturer or distributor shall apply for license on

forms provided by the office and shall submit as part of the application process the

following:

(a) The full name, address, date of birth, and Social Security number of the

applicant;

(b) If the applicant is a corporation or other business entity, the names, addresses,

dates of birth, and Social Security numbers of all officers and management

personnel;

(c) The name, address, date of birth, and Social Security number of any

individual who has ten percent (10%) or more financial interest in the

applicant organization;

(d) Federal employer tax number;

(e) A sworn statement by the applicant or the appropriate officer that all

information provided is true and correct and that the applicant agrees to

comply with the applicable provisions of this chapter and all appl icable

administrative regulations promulgated thereunder;

(f) The name, address, and telephone number of a registered agent within the

Commonwealth of Kentucky, if the applicant is not a resident; and

(g) Any other information the office deems appropriate.

(5) Each licensed manufacturer and distributor shall maintain a complete set of records

as may be required by the office to document all activities related to the sale, rental,

lease, or furnishing of cha ritable gaming supplies and equipment in the

Commonwealth of Kentucky. These records shall be available for inspection by the

office at reasonable times, and all records shall be maintained for a minimum of

three (3) years. The office may require a license d manufacturer and distributor to

report on its activity, with the content and frequency of these reports to be

prescribed by administrative regulation promulgated by the corporation.

(6) A distributor who does not receive payment in accordance with the te rms of its

sales or lease agreement from a licensed charitable organization within thirty (30)

days of the delivery of charitable gaming supplies and equipment shall notify the

office of the delinquency in writing in a form and manner prescribed by the off ice.

A manufacturer who does not receive payment in full from a distributor within sixty

(60) days of the delivery of charitable gaming supplies and equipment shall notify

the office of the delinquency in writing in a form and manner prescribed by the

office.

(7) A licensed manufacturer shall not sell charitable gaming supplies and equipment to

any person not licensed as a distributor in the Commonwealth of Kentucky.

(8) A licensed distributor shall not sell charitable gaming supplies and equipment to

any p erson not licensed as a distributor or a charitable organization in the

Commonwealth of Kentucky, unless the organization is exempted from licensure

under the provisions of this chapter.

(9) A licensed distributor shall not purchase charitable gaming suppl ies and equipment

from any person not licensed as a manufacturer or distributor in the Commonwealth

of Kentucky.

(10) An officer, owner, employee, or contractee of a licensed distributor or licensed

manufacturer or their affiliates and a member of the imme diate family of an owner,

officer, employee, or contractee of a licensed distributor or licensed manufacturer

or their affiliates, shall not, with respect to a licensed charitable organization:

(a) Manage or otherwise be involved in the conduct of charitable gaming;

(b) Provide bookkeeping or other accounting services related to the conduct of

charitable gaming;

(c) Handle any moneys generated in the conduct of charitable gaming;

(d) Advise a licensed charitable organization on the expenditure of net receipts;

(e) Provide transportation services in any manner to patrons of a charitable

gaming activity;

(f) Provide advertisement or marketing services in any manner to a licensed

charitable organization;

(g) Provide, coordinate, or solicit the services of perso nnel or volunteers in any

manner;

(h) Provide training or consulting on the conduct of charitable gaming, except in

connection with the use of its own equipment or supplies;

(i) Store its charitable gaming equipment or supplies in or on the premises of a

licensed charitable gaming facility; or

(j) Donate or give any prize to be awarded in the conduct of charitable gaming.