{"data":{"id":"us-ky/krs-154a.030","jurisdiction":"us-ky","citation":"KRS 154A.030","heading":"Board of directors -- Senate confirmation -- Qualifications -- Terms --","body":"Removal -- Chairman -- Standards of conduct -- Compensation -- Meetings --\nQuorum -- Records -- Appointment and confirmation of corporation president\n-- Duties -- Removal -- Open board meetings.\n(1) The affairs of the corporation shall be administered by a board of directors\ncomposed of eight (8) members. One (1) member of the board shall be the State\nTreasurer, who shall serve on the board in an ex officio capacity. The other sev en\n(7) members shall be appointed by the Governor, subject to the advice and consent\nof the Senate. Members appointed when the Senate is not in session shall serve only\nuntil the next regular session, or special session if such matter is included in the ca ll\ntherefor of the General Assembly, at which time they shall be subject to\nconfirmation by the Senate. If the Senate is not in session, the appointments shall be\nsubject to review by the Interim Joint Committee on State Government which shall\nhold a public hearing and shall transmit its recommendations to the Senate. Should\nthe Senate refuse to confirm a member then he shall forfeit his office as of the date\non which the Senate refuses to confirm him. Any person not confirmed by the\nSenate shall not be reappointed as a member for a period of two (2) years. Members\nappointed by the Governor, and confirmed by the Senate, shall be residents of the\nCommonwealth of Kentucky and serve a term of four (4) years, except that of the\ninitial members appointed, two (2) shall be appointed for one (1) year with the term\nending on the twenty -eighth (28th) day of November, 1989; two (2) shall be\nappointed for two (2) years with the term ending on the twenty -eighth (28th) day of\nNovember, 1990; two (2) shall be appointed for three (3) years with the term ending\non the twenty-eighth (28th) day of November, 1991; and one (1) shall be appointed\nfor four (4) years with the term ending on the twenty -eighth (28th) day of\nNovember, 1992. Members, confirmed by the Senate, may serve t hirty (30) days\nbeyond the end of their respective terms if their successors have not been appointed\nand qualified. If the Governor fails to appoint a successor within thirty (30) days of\nexpiration of a member's term, the board shall make the appointment.  No appointed\nmember shall serve more than two (2) consecutive four -year terms. No more than\nfour (4) of the members appointed by the Governor shall be from the same political\nparty. Appointed members may be removed by the Governor for neglect of duty,\nmisfeasance, or nonfeasance in office. The board shall annually elect a chairman\nfrom among its appointed members.\n(2) (a) No member of the board of directors, by himself or through others, shall\nknowingly:\n1. Use or attempt to use his influence in any manner  which involves a\nsubstantial conflict between his personal or private interest and his\nduties to the corporation;\n2. Use or attempt to use any means to influence the corporation in\nderogation of the corporation;\n3. Use his official position or office to o btain financial gain for himself, or\nany spouse, parent, brother, sister, or child of the director; or\n4. Use or attempt to use his official position to secure or create privileges,\nexemptions, advantages, or treatment for himself or others in derogation\nof the interests of the corporation or of the Commonwealth.\n(b) No director shall appear before the board or the corporation in any manner\nother than as a director.\n(c) A director shall abstain from action on an official decision in which he has or\nmay have a personal or private interest, and shall disclose the existence of that\npersonal or private interest in writing to each other member of the board on\nthe same day on which the director becomes aware that the interest exists or\nthat an official decision ma y be under consideration by the board. This\ndisclosure shall cause the decision on these matters to be made in a meeting of\nthe members of the board who do not have the conflict from which meeting\nthe director shall be absent and from all votes on which ma tters the director\nshall abstain.\n(d) In determining whether to abstain from action on an official decision because\nof a possible conflict of interest, a director shall consider the following\nguidelines:\n1. Whether a substantial threat to his independence of judgment has been\ncreated by his personal or private interest;\n2. The effect of his participation on public confidence in the integrity of the\ncorporation and the lottery;\n3. Whether his participation is likely to have any significant effect on the\ndisposition of the matter;\n4. The need for his particular contribution, such as special knowledge of\nthe subject matter, to the effective functioning of the corporation; and\n5. Whether the official decision will affect him in a manner differently\nfrom the public, or will affect him as a member of a business,\nprofession, occupation, or group to no greater extent generally than other\nmembers of his business, profession, occupation, or group.\nAny director may request a vote of the disinterested members of the board on\nwhether any director shall abstain from action on an official decision.\n(e) No director, in order to further his own economic interests, or those of any\nperson, shall knowi ngly disclose or use confidential information acquired in\nthe course of his official duties.\n(f) No director shall knowingly receive, directly or indirectly, any interest or\nprofit arising from the use or loan of lottery funds or funds to be raised\nthrough the lottery.\n(g) No director shall knowingly accept compensation, other than that provided in\nthis section for directors, for performance of his official duties.\n(h) No present or former director shall, within one (1) year following termination\nof his mem bership on the board, accept employment, compensation, or other\neconomic benefit from any person or business that contracts or does business\nwith the corporation in matters in which he was directly involved during his\ntenure. This provision shall not prohi bit an individual from continuing in the\nsame business, firm, occupation, or profession in which he was involved prior\nto becoming a director, provided that, for a period of one (1) year following\ntermination of his position as a director, he personally re frains from working\non any matter in which he was directly involved as a director.\n(i) No director, and no spouse, child, brother, sister, or parent of that director\nshall have a financial interest of more than five percent (5%) of the total value\nof any vendor, other supplier of goods or services to the corporation, retailer,\nor related entity. The corporation shall provide each member of the board with\na list of all current vendors, which shall be updated on at least a quarterly\nbasis.\n(3) Appointed membe rs of the board of directors shall be entitled to five thousand\ndollars ($5,000) per year as remuneration for serving on the board, except for the\nchairman, who shall receive seven thousand five hundred dollars ($7,500), and all\nmembers shall be reimbursed  for necessary travel and other reasonable expenses\nincurred in the performance of their official duties.\n(4) The board, upon call of the chairman or the president, shall meet at least monthly\nfor the first eighteen (18) months and bimonthly thereafter and  at such other times\nas the chairman or the president may determine. Four (4) members of the board\nshall constitute a quorum. The board shall also meet upon call of three (3) or more\nof the voting members of the board. The board shall keep accurate and com plete\nrecords of all its meetings.\n(5) The State Treasurer shall not be compensated for his service on the board.\n(6) The president of the corporation shall be appointed by the Governor subject to\nconfirmation by the board of directors. Should the board of  directors refuse to\nconfirm the appointment of the president, then the Governor shall submit another\nname. The person whose appointment was refused shall not be renamed for\nconfirmation for a period of two (2) years. The board of directors shall meet with in\nthirty (30) days of the date the Governor submits the name of a nominee for\npresident of the corporation and shall, within that time frame, either approve or\nreject the nomination. The president of the corporation shall manage the daily\naffairs of the c orporation and shall have such powers and duties as specified by\nKRS 154A.070 and by the board of directors. The president shall not be a member\nof the board. The president of the corporation may be removed by the board of\ndirectors.\n(7) All meetings of th e board shall be open unless they may be closed under KRS\n61.810 or relate to trade secrets, legally -protectable intellectual property,\nconfidential proprietary information, the security of the corporation in the operation\nof the lottery, or the security of the lottery's retailers.","path":["KRS Chapter 154A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=3009","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:58Z","sha256":"b73ccd6556a78a02af294301b07a345f06be0900a1b62bc757599afe14ab94a1","source_id":"us-ky","stale":false,"prev":"us-ky/krs-154a.020","next":"us-ky/krs-154a.040"},"notice":"GroundRules: Original legal text. Not legal advice."}