HB 263 (BR 827) - J. Coleman, T. Burch, De. Butler, R. Crimm
AN ACT relating to charitable gaming and declaring an emergency.
Amend various sections of KRS Chapter 238; delete financial consideration as a condition for being a charitable gaming facility; amend definition of "adjusted gross receipts" so that only merchandise prizes purchased must be deducted from gross receipts; define the terms "special limited charity fundraising event", "immediate family", and "affiliate"; give the Division of Charitable Gaming the authority to issue administrative subpoenas and summonses; replace the representative of the County Clerks Association on the Charitable Gaming Advisory Commission with a representative of the Commonwealth Attorneys Association; give the Division the discretion of issuing two year licenses; make fingerprinting and a national criminal history background check mandatory only for applicants for manufacturer, distributor, and charitable gaming facility licenses; prohibit owners, officers, employees; and affiliates of a licensed manufacturer, distributor, or charitable gaming facility, or members of their immediate families, from obtaining any other license issued under KRS Chapter 238; prohibit manufacturers and distributors from providing training and consulting for charities and from storing supplies and equipment on facility premises; raise the threshold for exemption from $5,000 to $10,000; require that the office or place of business of a licensee be a distinct address, except that up to 3 charities may share an address if they legitimately share the office space; authorize the release of federal IRS records to the Division; create a new section to revise and expand the 40% rule; calculate the 40% over a calendar year; deduct fees paid to the Division from the calculation; graduate the penalties as follows: (a) 35% to 39.9%- one year probation, (b) 30% to 34.9%- one year suspension, (c) Below 30% or second consecutive violation- 2 year suspension; require an acceptable financial plan for reinstatement; give licensees who have had actions taken against them under the old standards an opportunity to petition the Division for reconsideration under the new standards; require 30 day advance notice of change of location, date, or time of gaming; prohibit a licensed manufacturer, distributor, and charitable gaming facility, their immediate families and affiliates from donating prizes to charitable organizations and prohibit charitable organizations from accepting same; specify that a special license is not required for any wheel game, such as a cake wheel, that awards only noncash prizes under $100; create a new section to regulate special limited charity fundraising events; limit licensees to one such event per year not to exceed a 5 hour session between the hours of 12:00 noon and 1:00 a.m.; permit events to be held on unlicensed premises under specified conditions; require games to be played only with chips, scrip, or imitation money which may be purchased through a central bank or cashier; require payoffs to be in noncash prizes which must be redeemed within 24 hours; clarify provision dealing with the handling of adjusted gross receipts; require license fees for charitable gaming facilities be graduated based on applicable factors; prohibit a charitable gaming facility from coordinating or soliciting the services of volunteers and from requiring the use of particular gaming supplies; require facilities to provide certain goods and services with the cost of rent, goods, and services being itemized in the lease; give licensees the option of providing their own goods and services with a commensurate reduction in cost reflected in the lease; require all advertisements to contain the name of the charitable organization conducting the gaming and its license number; create a new section giving added emphasis to the responsibility of local peace officers to prevent illegal charitable gaming; reduce the charitable gaming fee from .5% to .4%; EMERGENCY.
HB 263 - AMENDMENTS
HCS - Retain original provisions except delete language establishing 40% threshold calculated on an annual basis with graduated penalties based on how close one is to the threshold and replace with 25% threshold to be determined on a quarterly basis; increase cap for exempt organizations holding bingo, raffles, or charity fundraising events from $10,000 to $15,000, but require that no one exempt organization exceed the $15,000 limitation in total; delete language requiring that the division determine reasonable rates and prices and specify that the division promulgate administrative regulations establishing prevailing market rates.
HFA (1, J. Coleman) - Require that charitable organization dedicate 40% of its adjusted gross profits for charitable purposes; require that calculation be done on a yearly basis; provide varying sanctions keyed to how close the organization is to its threshold.
HFA (2, B. Yonts) - Exempt schools and affiliated organizations from the charitable gaming law.
HFA (3, B. Heleringer) - Delete language that would prohibit familial or business relationships among licensed manufacturers, distributors, and other licensees.
HFA (4, A. Maricle) - Permit licensed charitable organizations that are allowed by law to conduct charitable gaming in an adjoining county to conduct charitable gaming in their home counties if it is a type of charitable gaming not being conducted in an adjoining county.
SCS - Reinstate language restricting services that may be provided by family members and affiliates of licensed distributors and manufacturers; clarify the provision allowing a charitable organization that qualifies to conduct charitable gaming in an adjoining county to conduct a charity fundraising event in its home county; increase from one (1) to two (2) the number of special limited charity fundraising event licenses an organization may receive per year; increase from five (5) to six (6) hours the length of a special limited fundraising event session; permit chips, scrip, or imitation money to be redeemed for cash, as well as prizes; technical corrections; and retain all other provisions of the GA copy of HB 263.
SFA (1, D. Boswell) - Make technical correction.
SFA (2, D. Seum) - Delete language prohibiting family members and affiliates from providing certain services to charitable organizations that use the facility.
SFA (3, D. Seum) - Apply 40% adjusted gross retention threshold to charitable organization grossing in excess of $800,000 per year, and lower the threshold to 30% for those grossing $800,000 or less.
SFA (4, T. Philpot) - Increase from 40% to 51% the minimum percentage of adjusted gross receipts to be retained by a charitable organization engaged in charitable gaming.
SFA (5, T. Philpot) - Prohibit charitable organizations from conducting special limited charity fundraising events, commonly know as "casino nights".
SFA (6, E. Tori) - Add additional requirements for charitable gaming license applicants.
SFA (7, E. Tori) - Reduce from 40% to 25% the percentage of adjusted gross receipts a charitable organization must retain for charitable purposes.
SFA (8, T. Buford) - Reduce from 40% to 25% the percentage of adjusted gross receipts from charitable gaming a charitable organization must retain, applicable to charitable organizations that conduct charitable gaming on their own premises.
Jan 13-introduced in House
Jan 14-to Licensing and Occupations (H)
Jan 26-posted in committee
Jan 28-reported favorably, 1st reading, to Calendar with Committee Substitute
Jan 29-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for February 2, 1998
Feb 2-floor amendments (1) and (2) filed to Committee Substitute
Feb 3-floor amendments (3) and (4) filed to Committee Substitute
Feb 10-3rd reading, Floor Amendment (2) defeated; passed 92-2 with Committee Substitute and Floor Amendments (1) (3) and (4)
Feb 11-received in Senate
Feb 12-to Licensing and Occupations (S)
Feb 26-reported favorably, 1st reading, to Calendar with Committee Substitute
Feb 27-2nd reading, to Rules
Mar 2-floor amendments (1) (2) and (3) filed to Committee Substitute
Mar 3-floor amendments (4) and (5) filed to Committee Substitute
Mar 4-posted for passage in the Regular Orders of the Day for March 6, 1998
Mar 6-floor amendments (6) (7) and (8) filed to Committee Substitute; passed over and retained in the Orders of the Day
Mar 9-3rd reading; floor amendments (2) and (5) withdrawn; floor amendments (3) (4) (6) and (7) defeated; passed 35-3 with Committee Substitute and floor amendments (1) and (8); received in House; posted for passage for concurrence in Senate Committee Substitute and Senate floor amendments (1) and (8)
Mar 12-House concurred in Senate Committee Substitute and Senate floor amendment (1); House refused to concur in Senate floor amendment (8)
Mar 13-received in Senate
Mar 16-posted for passage for receding from Senate floor amendment (8) on March 18, 1998
Mar 18-Senate receded from Senate Floor Amendment (8); passed 30-0
Mar 19-received in House; posted for passage
Mar 24-passed 85-1
Mar 25-enrolled, signed by each presiding officer, delivered to Governor
Apr 1-signed by Governor