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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 e

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Page 1 of 3 154A.060 Conduct and administration of lottery games -- Powers and duties of corporation -- Authorized contracts -- Withholding lottery prize money for <br>child support arrearages and default on higher education loans. (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 <br>time provide entertainment to its citizens. It shall be the duty of the corporation, its <br>employees, and the members of the board to provide for the effective operation of <br>lottery games which insure the integrity of the lottery and maintain the dignity of the <br>Commonwealth and the general welfare of its citizens. The corporation, in pursuit <br>of the attainment of the objectives and the purposes of this chapter, may: <br>(a) Sue and be sued in its corporate name; <br>(b) Adopt a corporate seal and a symbol; <br>(c) Hold copyrights, trademarks, and service marks, and enforce its rights with respect thereto; (d) Appoint agents upon which process may be served; <br>(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 <br>review and determination in accordance with KRS 45.750 to 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 <br>for the operation and promotion of the state lottery. Proposed purchases <br>of major items of equipment estimated to cost one hundred thousand <br>dollars (&#36;100,000) or more and proposed purchases of items of <br>equipment where the estimated contract price for all the items of <br>equipment taken together is four hundred thousand dollars (&#36;400,000) or <br>more shall be reported to the Capital Projects and Bond Oversight <br>Committee for its review and determination in accordance with the <br>provisions of KRS 45.750 to 45.810. A contract shall not be artificially <br>divided to cause an estimated contract price to fall below the four <br>hundred thousand dollar (&#36;400,000) threshold. Contracts for personal <br>service shall be reviewed in accordance with KRS 45A.690 to 45A.725. 2. Contracts to incur debt in its own name and enter into financing <br>agreements with the Commonwealth, its own agencies, or with a <br>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 Page 2 of 3 statements which include but are not limited to disclosure of gross revenues, <br>expenses, and net proceeds for the period; (c) Adopt by administrative regulation a system of continuous internal audits; <br>(d) Maintain weekly or more frequent records of lottery transactions, including distribution of tickets to lottery retailers, revenues received, claims for prizes, <br>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 <br>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 <br>submitted by the corporation to the Finance and Administration Cabinet <br>pursuant to KRS 48.050. In the budget unit request submitted by the <br>corporation, a contingency item for acquisition of the on-line central system, <br>all related equipment, and any other equipment owned by vendors of the <br>corporation relating to computer-generated lottery games from the <br>corporation's vendors shall be stated separately from all other equipment. <br>Further, if the identification of specific projects requiring the acquisition of <br>equipment in the nature of computer systems, communications equipment and <br>related peripheral devices, and operating system software cannot be <br>ascertained with absolute certainty at the time the corporation is required to <br>submit its budget unit request, the corporation shall be entitled to submit a <br>general request for the equipment without individually identifying specific <br>projects, together with a maximum amount to be allocated for the equipment, <br>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 <br>receive a list of delinquent child support obligors from the Cabinet for Health <br>and Family Services on a monthly basis. The Kentucky Lottery Corporation <br>shall withhold delinquent amounts from prizes of winners that appear on the <br>list. This system shall be timely and shall not create an unavoidable delay in <br>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 <br>persons declared in default of repayment obligations under financial assistance <br>programs in KRS Chapters 164 and 164A. The Kentucky Lottery Corporation <br>shall withhold from a person's prize winnings the amount of the defaulted loan <br>and shall transfer the amount to the authority to credit the account of the <br>person in default. Any amount remaining after the deduction of the loan <br>amount shall be paid to the person. Effective: June 20, 2005 <br>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 <br>ch. 430, sec. 1, effective July 14, 2000. -- Amended 1996 Ky. Acts ch. 77, sec. 1, Page 3 of 3 effective July 15, 1996. -- Amended 1994 Ky. Acts ch. 31, sec. 5, effective July 15, <br>1994; and ch. 486, sec. 26, effective July 15, 1994. -- Amended 1990 Ky. Acts <br>ch. 496, sec. 45, effective July 13, 1990; and ch. 507, sec. 22, effective July 13, <br>1990. -- Created 1988 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 6, effective December <br>15, 1988.