2013 Kentucky Revised Statutes CHAPTER 154A - STATE LOTTERY 154A.400 Statewide network of lottery retailers -- Criteria for selection -- Uniform fees -- Suspension, revocation or termination of contract -- Purchase or lease of on-line equipment -- Contracts not transferable or assignable -- Certificates -- General Assembly members not prohibited from being retailers -- Payment of prize -- Sales tax exemption.
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154A.400 Statewide network of lottery retailers -- Criteria for selection -Uniform fees -- Suspension, revocation or termination of contract -Purchase or lease of on-line equipment -- Contracts not transferable or
assignable -- Certificates -- General Assembly members not prohibited
from being retailers -- Payment of prize -- Sales tax exemption.
(1)
(a)
(b)
The General Assembly hereby recognizes that to conduct a successful
lottery, the corporation must develop and maintain a statewide network of
lottery retailers that will serve the public convenience or promote the sale
of tickets, while insuring the integrity of the lottery.
To govern the selection of lottery retailers, the board shall, by
administrative regulation, develop a list of objective criteria upon which
the selection of lottery retailers shall be based. Separate criteria shall be
developed to govern the selection of retailers of instant tickets and on-line
retailers. In developing these criteria the board shall consider such factors
as the applicant's financial responsibility, security of the applicant's place
of business or activity, integrity, and reputation; however, the board shall
not consider political affiliation, activities, or monetary contributions to
political organizations or candidates for any public office. The criteria shall
include, but not be limited to the following:
1.
The applicant shall be current in payment of all taxes, interest and
penalties owed to any taxing subdivision where the lottery retailer
will sell lottery tickets;
2.
The applicant shall be current in filing all applicable tax returns and
in payment of all taxes, interest and penalties owed to the
Commonwealth of Kentucky, excluding items under formal appeal
pursuant to applicable statutes;
3.
No person, partnership, unincorporated association, corporation, or
other business entity shall be selected as a lottery retailer for the
sale of instant tickets or on-line games who:
a.
Has been convicted of a felony related to the security or
integrity of the lottery in this or any other jurisdiction, unless at
least ten (10) years have passed since satisfactory completion
of the sentence or probation imposed by the court for each
felony;
b.
Has been convicted of any illegal gambling activity in this or
any other jurisdiction, unless at least ten (10) years have
passed since satisfactory completion of the sentence or
probation imposed by the court for each conviction;
c.
Has been found to have violated the provisions of this chapter
or any administrative regulation adopted hereunder, unless at
least ten (10) years have passed since the violation;
d.
Is a vendor or an employee or agent of any vendor doing
business with the corporation;
e.
Resides in the same household as an officer of the
corporation; or
f.
Has made a statement of material fact to the corporation,
(2)
(3)
knowing such statement to be false, unless at least ten (10)
years have passed since the statement was made.
4.
Retailers shall be afforded the same exceptions to disqualification
as provided for vendors in KRS 154A.600(4)(a) and (b) or (c).
5.
In addition to the provisions of subsection (3) of this section, no
person, partnership, unincorporated association, corporation, or
other business entity shall be selected as an on-line lottery retailer
who:
a.
Has been denied a license to sell instant tickets on the basis of
objective criteria established by the board, or any provision of
this chapter; or
b.
Has failed to sell sufficient instant tickets to indicate that the
location of an on-line game at his outlet would be of economic
benefit to him or the lottery corporation.
6.
The applicant shall not be engaged exclusively in the sale of lottery
tickets. However, this paragraph does not preclude the corporation
from contracting for the sale of lottery tickets with nonprofit,
charitable organizations or units of local government in accordance
with the provisions of this chapter.
(c) Persons applying to become lottery retailers shall be charged a uniform
application fee for each lottery outlet. Retailers chosen to participate in
on-line games shall be charged a uniform annual fee for each on-line
outlet.
(d) Any lottery retailer contract executed pursuant to this section may, for
good cause, be suspended, revoked, or terminated by the president if the
retailer is found to have violated any of the objective criteria established
by the board as provided in subsection (1) of this section. Review of such
action shall be in accordance with the procedures outlined in KRS
154A.090. All lottery retailer contracts shall be renewable annually after
issuance unless sooner canceled or terminated.
(a) A retailer who has been denied an on-line game for reasons other than
financial responsibility, security, or integrity shall be permitted to purchase
or lease the equipment necessary to operate such a game from the
corporation in a manner consistent with the corporation's manner of
acquisition. A retailer need not file an appeal before being permitted to
purchase or lease on-line equipment.
(b) After one (1) year of operation, any retailer who purchased or leased
on-line equipment pursuant to paragraph (a) of this subsection and whose
sales are equal to or greater than the statewide average of sales of
on-line retailers, shall be reimbursed the cost of the purchase or lease by
the corporation. The board may purchase the terminals of other retailers
who purchased their equipment if the board determines that such
purchase is in the best interest of the lottery.
No lottery retailer contract awarded under this section shall be transferable or
assignable. No lottery retailer shall contract with any person for lottery goods or
services except with the approval of the board.
(4)
(5)
(6)
Each lottery retailer shall be issued a lottery retailer certificate which shall be
conspicuously displayed at the place where the lottery retailer is authorized to
sell lottery tickets. Lottery tickets shall only be sold by the retailer at the
location stated on the lottery retailer certificate.
A member of the General Assembly who meets the same requirements as any
other applicant to be a retailer may be granted a retail contract to sell lottery
tickets or participate in any other lottery game operations. No member of the
General Assembly shall be entitled to preference over any other applicant for a
contract.
For the convenience of the public, all retailers shall be authorized to pay
winners up to six hundred dollars ($600) after the retailer performs validation
procedures appropriate to the lottery game involved. Lottery tickets shall be
exempt from the Kentucky sales tax.
Effective:December 15, 1988
History: Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 9, effective December
15, 1988.
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