{"data":{"id":"us-ky/krs-238.565","jurisdiction":"us-ky","citation":"KRS 238.565","heading":"Appeals of administrative actions.","body":"(1) A license holder may appeal any administrative action taken under KRS 238.560. A\nlicense holder shall be notified in writing of any action to be taken against him or\nher. The notification may be delivered in person or mailed by certified mail, return\nreceipt requested, to the last known address of the license holder. Service of\nnotification of administrative action, whether by hand delivery or by certified mail,\nshall be deemed complete if the license holder fails or refuses to accept delivery.\nFor service by hand delivery, notification shall be deemed received upon\nacceptance of delivery or upon failure or refusal to accept delivery, and the person\naffecting service on behalf of the office shall record the fact of the failure or refusal.\nFor service by cert ified mail, the notification of administrative action shall be\ndeemed received when the license holder accepts delivery or fails or refuses to\naccept delivery at the last known address. The notification shall specify the charges\nagainst the license holder,  specify the proposed administrative sanction, and advise\nthe license holder of the right to appeal the decision within ten (10) days of the date\nof receipt of the notification.\n(2) (a) Upon receipt of an appeal, the corporation shall schedule the matter f or an\nadministrative hearing that shall be conducted in accordance with KRS\nChapter 13B.\n(b) Following a notice of violation and appeal, a person may apply to the\ncorporation for a stay of the ruling, pending action on an appeal by the\ncorporation.\n(c) An application for a stay shall be received by the president or his or her\ndesignee within ten (10) calendar days of the issuance of the notice of\nviolation.\n(d) An application for a stay shall be in writing and include the following:\n1. The name, address, te lephone number, and signature of the person\nrequesting the stay;\n2. A statement of the justification for the stay; and\n3. The period of time for which the stay is requested.\n(e) On a finding of good cause, the president or his or her designee may grant the\nstay. The president or his or her designee shall issue a written decision\ngranting or denying the request for stay within five (5) calendar days from the\ntime the application fo r stay is received by the president or his or her\ndesignee. If the president or his or her designee fails to timely issue a written\ndecision, then the stay is deemed granted. The president or his or her designee\nmay rescind a stay granted under this subsection for good cause.\n(f) A person who is denied a stay by the president or his or her designee, or has a\npreviously granted stay rescinded under paragraph (e) of this subsection, may\npetition the corporation to overrule the president's or designee's denial  or\nrescission of the stay. The petition shall be filed in writing with the\nchairperson of the board of directors of the corporation and received by the\nchairperson within ten (10) calendar days of the mailing of the president's or\ndesignee's denial of the stay. The petition shall state the name, address, phone\nnumber, and signature of the petitioner; a statement of justification of the stay;\nand the time period for which the stay is requested. The chairperson shall\nconvene a special meeting of the board of  directors of the corporation within\nten (10) calendar days of receipt of the petition, and the corporation shall issue\na written final order granting or denying the petition within two (2) calendar\ndays of the special meeting. If the corporation fails to timely issue a final\norder on the petition, then the stay is granted. The corporation may rescind a\nstay granted under this subsection for good cause.\n(g) A person who is denied or has a previously granted stay rescinded by the\ncorporation may file an appe al of the final written order of the corporation in\nthe Circuit Court of the county in which the cause of action arose.\n(h) The fact that a stay is granted does not create a presumption that the notice of\nviolation is invalid.\n(3) Any provisions of KRS Chapter 13B notwithstanding, within twenty (20) days after\nthe conclusion of a hearing, the hearing officer shall prepare and present to the\ncorporation a recommended order based on findings of fact and conclusions of law.\nWithin thirty (30) days of receipt o f the recommended order, the corporation shall\naffirm, reject, or modify, in whole or in part, the recommended order and shall issue\na final order. The final order shall be the final administrative action on the matter\nand a copy of the final order shall b e mailed to the license holder, by certified mail,\nreturn receipt requested.\n(4) Pursuant to KRS 13B.120(7), the corporation shall automatically hear and issue a\nfinal order regarding any decision of the corporation that would otherwise be\nsubject to appeal.\n(5) Any administrative action taken under this section shall, upon appeal, be stayed\nuntil a final order is issued, with the exception of a summary suspension. The\ncorporation may issue an emergency order pursuant to KRS 13B.125 to summarily\nsuspend a l icense upon finding that continued operation of the license holder\npending a hearing would constitute a threat to the public health, safety, or welfare.\n(6) (a) A summary suspension, notice, or order to cease operations shall only be\nissued by the corporat ion if there is an imminent risk to the health and safety\nof the public or of the misappropriation of charitable gaming revenues.\n(b) 1. A license holder may first appeal a summary suspension under\nparagraph (a) of this subsection to the corporation.\n2. Upon receipt of an appeal, the corporation shall issue a decision to the\nlicense holder within twenty (20) days.\n3. a. If the license holder receives a determination from the corporation\nthat the ceasing of operations stands, the license holder may appeal\nagain to the corporation; and\nb. Upon receipt of the second appeal, the corporation shall schedule\nthe matter for an administrative hearing that shall be conducted in\naccordance with KRS Chapter 13B.\n(7) This chapter shall not prohibit the corporation from t emporarily suspending\noperations of an individual electronic gaming device in the event of a technical\nbreach or temporary emergency.\n(8) A final order of the corporation may be appealed to the Circuit Court of the county\nwhere the appellant works or resid es in accordance with KRS Chapter 13B. If the\nlicense holder against whom administrative action is proposed does not request an\nappeal of the action, the corporation shall enter a final order imposing the proposed\nadministrative action.","path":["KRS Chapter 238"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58122","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:51Z","sha256":"1260288615b8a0ebea5fbb82d0af2d360f6a705c7329f365bc4e729b3d8f8585","source_id":"us-ky","stale":false,"prev":"us-ky/krs-238.560","next":"us-ky/krs-238.567"},"notice":"GroundRules: Original legal text. Not legal advice."}