{"data":{"id":"us-ky/krs-238.560","jurisdiction":"us-ky","citation":"KRS 238.560","heading":"Investigations -- Complaints -- Administrative actions against violators.","body":"(1) The corporation may investigate, visit, and have free access to the office or place of\nbusiness of a licensee or any location where licensed charitable gaming is offered or\nconducted or any location or facility under the jurisdiction of the corporation. The\ncorporation may take other actions necessary to fulfill its enforcement obligations\npursuant to this chapter and KRS Chapter 230.\n(2) The office may  investigate allegations of wrongdoing upon complaint or upon its\nown volition. The corporation by administrative regulation may establish\nprocedures for receiving and investigating complaints in an expeditious manner.\n(3) In carrying out its enforcement responsibilities, the office may:\n(a) Inspect and examine all premises in which or on which charitable gaming is\nconducted or charitable gaming supplies or equipment are manufactured or\ndistributed;\n(b) Seize and remove from premises and impound charitable gaming supplies and\nequipment for the purposes of examination and inspection pursuant to an\nappropriate court order;\n(c) Demand access to, inspect, and audit books and records of licensees for the\npurpose of determining compliance with laws and the corpora tion's\nadministrative regulations relative to charitable gaming; and\n(d) Conduct in-depth audits and investigations, when warranted.\n(4) (a) As used in this subsection, \"willful\" means that the conduct constituting the\nviolation was committed with intent, not accidentally or inadvertently.\n(b) The office may take appropriate  administrative action against any person\nlicensed or unlicensed under this chapter for any violation of the provisions of\nthis chapter or administrative regulations promulgated thereunder subject to\nthe conditions established by this subsection.\n(c) The o ffice may deny a license, suspend or revoke a license, impose\nprobationary conditions on a license, issue a written reprimand or warning,\nimpose fines or penalties, issue a cease and desist order, or any combination\nthereof with regard to any licensee or o ther person participating in charitable\ngaming in Kentucky for a violation of any federal or state statute,\nadministrative regulation, or corporation's directive, ruling, or order. An\nadministrative fine shall not exceed five thousand dollars ($5,000) for each\noffense. The office may deny the issuance of a license or a license renewal if\nthe applicant or licensee has failed to pay a fine levied by the office. The\ncorporation may by administrative regulation classify types of offenses and\nthe recommended adm inistrative action. The type of action to be taken shall\nbe based on the history of previous violations and the nature, severity, and\nfrequency of the offense. Administrative action authorized in this section shall\nbe in addition to any criminal penalties provided in this chapter or under other\nprovisions of law.\n(d) 1. Notwithstanding any other provisions of this section, the office shall\nreview, within two (2) months of receipt, timely filed organization\nquarterly reports that include payment of the fee d ue as reflected on the\norganization quarterly report. If the office discovers reporting errors that\nare not willful, the office shall, prior to taking any other administrative\naction, issue a letter of warning to the licensee and allow the licensee\nthirty (30) days from the issuance of the letter to correct the identified\nviolation. The purpose of this subparagraph is for the office to identify\ncorrectable reporting errors in a timely manner, and to notify the\nlicensee of the errors prior to the due date of  the next organization\nquarterly report so that the errors are corrected and are not repeated in\nsubsequent organization quarterly reports.\n2. A review conducted under subparagraph 1. of this paragraph shall not be\nconsidered an audit or final review and a cceptance of an organization\nquarterly report and payment. The office shall have four (4) years from\nthe date of filing to fully audit and review an organization quarterly\nreport, and may pursue administrative actions against the licensee\nrelated to an organization quarterly report or the information reported on\nan organization quarterly report within the four (4) year period if\nviolations or errors that are not willful are discovered. This\nsubparagraph shall not be construed to require records that are not\nneeded to audit or review an organization quarterly report to be kept\nlonger than is required elsewhere in this chapter or in any related\nadministrative regulations.\n3. Notwithstanding the provisions of subparagraph 2. of this paragraph, for\na violation t hat is determined to be willful, the office may pursue the\nadministrative actions authorized by this section at any time.\n4. A letter of warning issued under this section shall:\na. Identify the violation;\nb. Describe the corrective action necessary;\nc. Identify the administrative actions that can be taken if the violation\nis not addressed; and\nd. Provide that the person shall have thirty (30) days to correct the\naction leading to the violation.\n(5) The office may reinstate a license that has been revoked at  any time after two (2)\nyears from the date of revocation. A license may be reinstated only upon a finding\nthat the violations for which the license was revoked have been corrected.\n(6) All departments, divisions, boards, agencies, officers, and institutio ns of the\nCommonwealth of Kentucky and all subdivisions thereof, in particular local law\nenforcement entities, shall cooperate with the office in carrying out its enforcement\nresponsibilities.\n(7) The office shall report any activity or action which would constitute a criminal\noffense to the appropriate authorities in the county where the activity or action\noccurred and to the Attorney General.\n(8) All administrative actions taken under this section shall be subject to the final order\nof the corporation.","path":["KRS Chapter 238"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58121","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:51Z","sha256":"f39039690ee8c53fe997f962572c7ff02ab7da968f109d0cb2377490f6c6d93d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-238.555","next":"us-ky/krs-238.565"},"notice":"GroundRules: Original legal text. Not legal advice."}