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238.530 Licensing of distributors and manufacturers of supplies and equipment --
Eligibility -- Restrictions.
(1) No person shall sell, offer to sell, rent, lease, or otherwise furnish charitable gaming
supplies or equipment unless the person is licensed by the department as a <br>distributor. The department shall charge a license fee not to exceed one thousand <br>dollars ($1,000).
(2) No person shall sell, offer to sell, rent, lease, or otherwise furnish charitable gaming
supplies and equipment unless the person is licensed by the department as a <br>manufacturer. The department shall charge a license fee not to exceed one thousand <br>dollars ($1,000).
(3) No person who is licensed as a charitable organization, and no owner, officer,
employee, or member of the immediate family of an owner, officer, or employee of <br>a licensed charitable gaming facility shall be eligible for licensure as a distributor or <br>manufacturer. No affiliate of an owner, officer, or employee, or member of the <br>immediate family of an owner, officer, or employee of a licensed charitable gaming <br>facility shall be licensed as a distributor or manufacturer. No person who is a <br>licensed wholesaler or distributor of alcoholic beverages shall be licensed as a <br>distributor or manufacturer. No person who is licensed as a distributor shall be <br>licensed as a manufacturer, and no person licensed as a manufacturer shall be <br>licensed as a distributor.
(4) An applicant for a license as a manufacturer or distributor shall apply for license on
forms provided by the department and shall submit as part of the application <br>process the following: <br>(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 <br>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 <br>organization;
(d) Federal employer tax number; <br>(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 <br>comply with the applicable provisions of this chapter and all applicable <br>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 department deems appropriate.
(5) Each licensed manufacturer and distributor shall maintain a complete set of records
as may be required by the department to document all activities related to the sale, <br>rental, lease, or furnishing of charitable gaming supplies and equipment in the <br>Commonwealth of Kentucky. These records shall be available for inspection by the
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department at reasonable times, and all records shall be maintained for a minimum <br>of three (3) years. The department may require a licensed manufacturer and <br>distributor to report on its activity, with the content and frequency of these reports <br>to be prescribed by administrative regulation promulgated by the department.
(6) A distributor who does not receive payment in accordance with the terms of its sales
or lease agreement from a licensed charitable organization within thirty (30) days of <br>the delivery of charitable gaming supplies and equipment shall notify the <br>department of the delinquency in writing in a form and manner prescribed by the <br>department. A manufacturer who does not receive payment in full from a distributor <br>within sixty (60) days of the delivery of charitable gaming supplies and equipment <br>shall notify the department of the delinquency in writing in a form and manner <br>prescribed by the department.
(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 person not licensed as a distributor or a charitable organization in the <br>Commonwealth of Kentucky, unless the organization is exempted from licensure <br>under the provisions of this chapter.
(9) A licensed distributor shall not purchase charitable gaming supplies and equipment
from any person not licensed as a manufacturer or distributor in the Commonwealth <br>of Kentucky.
(10) No officer, owner, employee, or contractee of a licensed distributor or licensed
manufacturer or their affiliates and no member of the immediate family of an <br>owner, officer, employee, or contractee of a licensed distributor or licensed <br>manufacturer or their affiliates, shall, with respect to a licensed charitable <br>organization: <br>(a) Manage or otherwise be involved in the conduct of charitable gaming; <br>(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; <br>(d) Advise a licensed charitable organization on the expenditure of net receipts; <br>(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 personnel 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.
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Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 539, effective July 15, 2010. -- Amended
2000 Ky. Acts ch. 374, sec. 7, effective July 14, 2000. -- Amended 1998 Ky. Acts <br>ch. 232, sec. 5, effective April 1, 1998. -- Amended 1996 Ky. Acts ch. 331, sec. 6, <br>effective April 10, 1996. -- Created 1994 Ky. Acts ch. 66, sec. 7, effective March 16, <br>1994.
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