Kentucky Statutes 154A.060 – Conduct and administration of lottery games — Powers and duties of corporation — Authorized contracts — Withholding lottery prize money for child support arrearages and default on higher education loans
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(1) The corporation shall conduct and administer lottery games which will result in maximization of revenues to the Commonwealth of Kentucky while at the same time provide entertainment to its citizens. It shall be the duty of the corporation, its employees, and the members of the board to provide for the effective operation of lottery games which insure the integrity of the lottery and maintain the dignity of the Commonwealth and the general welfare of its citizens. The corporation, in pursuit of the attainment of the objectives and the purposes of this chapter, may:
(a) Sue and be sued in its corporate name; (b) Adopt a corporate seal and a symbol;
(c) Hold copyrights, trademarks, and service marks, and enforce its rights with respect thereto;
(d) Appoint agents upon which process may be served;
(e) Enter into written agreements with one (1) or more other states for the operation, marketing, and promotion of a joint lottery or joint lottery games;
(f) Acquire real property and make improvements thereon. These acquisitions shall be reported to the Capital Projects and Bond Oversight Committee for its review and determination in accordance with KRS § 45.750 to KRS § 45.810; and
(g) Make, execute, and effectuate any and all agreements or contracts including:
1. Contracts for the purchase of such goods and services as are necessary for the operation and promotion of the state lottery. Proposed purchases of major items of equipment estimated to cost one hundred thousand dollars ($100,000) or more and proposed purchases of items of equipment where the estimated contract price for all the items of equipment taken together is four hundred thousand dollars ($400,000) or more shall be reported to the Capital Projects and Bond Oversight Committee for its review and determination in accordance with the provisions of KRS § 45.750 to KRS § 45.810. A contract shall not be artificially divided to cause an estimated contract price to fall below the four hundred thousand dollar ($400,000) threshold. Contracts for personal service shall be reviewed in accordance with KRS § 45A.690 to KRS § 45A.725.
2. Contracts to incur debt in its own name and enter into financing agreements with the Commonwealth, its own agencies, or with a commercial bank, excluding the authority to issue bonds.
(2) The corporation shall:
(a) Supervise and administer the lottery in accordance with the provisions of this chapter and the administrative regulations adopted by the board;
(b) Submit monthly and annual reports to the Governor, the President of the Senate, and the Speaker of the House of Representatives containing financial statements which include but are not limited to disclosure of gross revenues,
expenses, and net proceeds for the period;
(c) Adopt by administrative regulation a system of continuous internal audits;
(d) Maintain weekly or more frequent records of lottery transactions, including distribution of tickets to lottery retailers, revenues received, claims for prizes, prizes paid, and all other financial transactions of the corporation;
(e) Adopt by administrative regulation a code of ethics for officers and employees of the corporation to carry out the standards of conduct established by the provisions of this chapter;
(f) Include capital projects, as defined in KRS § 45.750(1)(f), which exceed the thresholds set forth in KRS § 154A.060(1)(g)1. in the budget unit request submitted by the corporation to the Finance and Administration Cabinet pursuant to KRS § 48.050. In the budget unit request submitted by the corporation, a contingency item for acquisition of the on-line central system, all related equipment, and any other equipment owned by vendors of the corporation relating to computer-generated lottery games from the corporation’s vendors shall be stated separately from all other equipment. Further, if the identification of specific projects requiring the acquisition of equipment in the nature of computer systems, communications equipment and related peripheral devices, and operating system software cannot be ascertained with absolute certainty at the time the corporation is required to submit its budget unit request, the corporation shall be entitled to submit a general request for the equipment without individually identifying specific projects, together with a maximum amount to be allocated for the equipment, in the budget unit request;
(g) The Kentucky Lottery Corporation and the Cabinet for Health and Family Services shall develop a system to allow the Kentucky Lottery Corporation to receive a list of delinquent child support obligors from the Cabinet for Health and Family Services on a monthly basis. The Kentucky Lottery Corporation shall withhold delinquent amounts from prizes of winners that appear on the list. This system shall be timely and shall not create an unavoidable delay in the payment of a lottery prize; and
(h) The Kentucky Lottery Corporation and the authority shall develop a system to allow the Kentucky Lottery Corporation to receive on a periodic basis a list of persons declared in default of repayment obligations under financial assistance programs in KRS Chapters 164 and 164A. The Kentucky Lottery Corporation shall withhold from a person’s prize winnings the amount of the defaulted loan and shall transfer the amount to the authority to credit the account of the person in default. Any amount remaining after the deduction of the loan amount shall be paid to the person.
Effective: June 20, 2005
History: Amended 2005 Ky. Acts ch. 99, sec. 126, effective June 20, 2005. — Amended
2002 Ky. Acts ch. 236, sec. 3, effective July 15, 2002. — Amended 2000 Ky. Acts ch.
430, sec. 1, effective July 14, 2000. — Amended 1996 Ky. Acts ch. 77, sec. 1, effective July 15, 1996. — Amended 1994 Ky. Acts ch. 31, sec. 5, effective July 15,
1994; and ch. 486, sec. 26, effective July 15, 1994. — Amended 1990 Ky. Acts ch.
496, sec. 45, effective July 13, 1990; and ch. 507, sec. 22, effective July 13, 1990. — Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 6, effective December 15, 1988.
(a) Sue and be sued in its corporate name; (b) Adopt a corporate seal and a symbol;
Terms Used In Kentucky Statutes 154A.060
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: means the Kentucky Lottery Corporation. See Kentucky Statutes 154A.010
- Lottery: means any game of chance approved by the corporation and operated pursuant to this chapter, except for games prohibited by the General Assembly as provided for in KRS §. See Kentucky Statutes 154A.010
- Oversight: Committee review of the activities of a Federal agency or program.
- President: means the president of the Kentucky Lottery Corporation who shall also serve as chief executive officer of the corporation. See Kentucky Statutes 154A.010
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
(c) Hold copyrights, trademarks, and service marks, and enforce its rights with respect thereto;
(d) Appoint agents upon which process may be served;
(e) Enter into written agreements with one (1) or more other states for the operation, marketing, and promotion of a joint lottery or joint lottery games;
(f) Acquire real property and make improvements thereon. These acquisitions shall be reported to the Capital Projects and Bond Oversight Committee for its review and determination in accordance with KRS § 45.750 to KRS § 45.810; and
(g) Make, execute, and effectuate any and all agreements or contracts including:
1. Contracts for the purchase of such goods and services as are necessary for the operation and promotion of the state lottery. Proposed purchases of major items of equipment estimated to cost one hundred thousand dollars ($100,000) or more and proposed purchases of items of equipment where the estimated contract price for all the items of equipment taken together is four hundred thousand dollars ($400,000) or more shall be reported to the Capital Projects and Bond Oversight Committee for its review and determination in accordance with the provisions of KRS § 45.750 to KRS § 45.810. A contract shall not be artificially divided to cause an estimated contract price to fall below the four hundred thousand dollar ($400,000) threshold. Contracts for personal service shall be reviewed in accordance with KRS § 45A.690 to KRS § 45A.725.
2. Contracts to incur debt in its own name and enter into financing agreements with the Commonwealth, its own agencies, or with a commercial bank, excluding the authority to issue bonds.
(2) The corporation shall:
(a) Supervise and administer the lottery in accordance with the provisions of this chapter and the administrative regulations adopted by the board;
(b) Submit monthly and annual reports to the Governor, the President of the Senate, and the Speaker of the House of Representatives containing financial statements which include but are not limited to disclosure of gross revenues,
expenses, and net proceeds for the period;
(c) Adopt by administrative regulation a system of continuous internal audits;
(d) Maintain weekly or more frequent records of lottery transactions, including distribution of tickets to lottery retailers, revenues received, claims for prizes, prizes paid, and all other financial transactions of the corporation;
(e) Adopt by administrative regulation a code of ethics for officers and employees of the corporation to carry out the standards of conduct established by the provisions of this chapter;
(f) Include capital projects, as defined in KRS § 45.750(1)(f), which exceed the thresholds set forth in KRS § 154A.060(1)(g)1. in the budget unit request submitted by the corporation to the Finance and Administration Cabinet pursuant to KRS § 48.050. In the budget unit request submitted by the corporation, a contingency item for acquisition of the on-line central system, all related equipment, and any other equipment owned by vendors of the corporation relating to computer-generated lottery games from the corporation’s vendors shall be stated separately from all other equipment. Further, if the identification of specific projects requiring the acquisition of equipment in the nature of computer systems, communications equipment and related peripheral devices, and operating system software cannot be ascertained with absolute certainty at the time the corporation is required to submit its budget unit request, the corporation shall be entitled to submit a general request for the equipment without individually identifying specific projects, together with a maximum amount to be allocated for the equipment, in the budget unit request;
(g) The Kentucky Lottery Corporation and the Cabinet for Health and Family Services shall develop a system to allow the Kentucky Lottery Corporation to receive a list of delinquent child support obligors from the Cabinet for Health and Family Services on a monthly basis. The Kentucky Lottery Corporation shall withhold delinquent amounts from prizes of winners that appear on the list. This system shall be timely and shall not create an unavoidable delay in the payment of a lottery prize; and
(h) The Kentucky Lottery Corporation and the authority shall develop a system to allow the Kentucky Lottery Corporation to receive on a periodic basis a list of persons declared in default of repayment obligations under financial assistance programs in KRS Chapters 164 and 164A. The Kentucky Lottery Corporation shall withhold from a person’s prize winnings the amount of the defaulted loan and shall transfer the amount to the authority to credit the account of the person in default. Any amount remaining after the deduction of the loan amount shall be paid to the person.
Effective: June 20, 2005
History: Amended 2005 Ky. Acts ch. 99, sec. 126, effective June 20, 2005. — Amended
2002 Ky. Acts ch. 236, sec. 3, effective July 15, 2002. — Amended 2000 Ky. Acts ch.
430, sec. 1, effective July 14, 2000. — Amended 1996 Ky. Acts ch. 77, sec. 1, effective July 15, 1996. — Amended 1994 Ky. Acts ch. 31, sec. 5, effective July 15,
1994; and ch. 486, sec. 26, effective July 15, 1994. — Amended 1990 Ky. Acts ch.
496, sec. 45, effective July 13, 1990; and ch. 507, sec. 22, effective July 13, 1990. — Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 6, effective December 15, 1988.