Regs are here - Kentucky Charitable Gaming Association by wuzhenguang

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									 1 ENVIRONMENTAL AND PUBLIC PROTECTION

 2 DEPARTMENT OF PUBLIC PROTECTION

 3 OFFICE OF CHARITABLE GAMING

 4 (Amendment)

 5 820 KAR 1:001. Definitions for 820 KAR Chapter 1.

 6 RELATES TO: KRS 238.500-238.995

 7 STATUTORY AUTHORITY: KRS 238.515(9)

 8 NECESSITY, FUNCTION, AND CONFORMITY: KRS 238.515(9) authorizes

 9 the Office of Charitable Gaming to promulgate administrative regulations to

10 carry out the provisions of the chapter. This administrative regulation

11 establishes definitions of terms used throughout 820 KAR Chapter 1.

12 Section 1. Definitions. (1) "Account number" means the unique identification

13 number, if any, assigned by a card-minding device system to a customer that

14 uses a card-minding device to play bingo.

15 (2) "Bet block" means an area that indicates the dollar amount of the wager.

16 (3) "Bingo ball" means a ball imprinted with numbers and letters which is

17 used in the selection process of a bingo game.

18 (4) "Bingo machine" means a type of selection device with a receptacle for the

19 unselected bingo balls, a blower for selecting the balls, and a ball tray that

20 contains seventy-five (75) holes in which to place the ball once it is called.
21




                                           1
 1 (5) "Bingo paper pack" means a group of bingo paper sheets that are

 2 manufactured, collated, and sold by the manufacturer as a unit.

 3 (6) "Bingo paper package" means a group of bingo paper sheets or packs that

 4 are assembled together by an organization for sale at a gaming occasion that

 5 becomes a unique item for sale with a specific price.

 6 (7) "Bingo paper sheet" means a single piece of paper on which one (1) or

 7 multiple bingo faces are printed.

 8 (8) "Break open bingo" means a bingo game in which the numbers on the face

 9 are hidden until after purchase.

10 (9) "Bundle" means to price a certain amount of bingo paper faces for a

11 certain price with the patron choosing the type of packs that make up the

12 total faces.

13 (10) "Called" means that a number located on a bingo ball has been:

14 (a) Selected by the selection device;

15 (b) Verbally announced by the caller;

16 (c) Displayed on the flashboard or other display device; and

17 (d) Placed in a ball tray or other device.

18 (11) "Cash" means currency, coinage, or a negotiable instrument.

19 (12) "Cash short" means the total amount of money actually received from the

20 sale of gaming supplies at a gaming occasion is less than the amount of

21 money due from the sale of that quantity of gaming supplies.




                                           2
 1 (13) "Cash over" means the total amount of money actually received from the

 2 sale of gaming supplies at a gaming occasion is more than the amount of

 3 money due from the sale of that quantity of gaming supplies.

 4 (14) "Chief executive officer" means the director of the organization or the

 5 person who has legal authority to direct the management of the organization,

 6 distributor, manufacturer, or facility.

 7 (15) "Chief financial officer" means the person who shall be:

 8 (a) Responsible for overseeing the financial activities of the organization,

 9 distributor, manufacturer, or facility;

10 (b) The custodian of the gaming occasion records; and

11 (c) Responsible for ensuring that the records are accurate, complete, and

12 maintained regularly for inspection by the office.

13 (16) "Conditioning" means a restatement of:

14 (a) How many numbers or combinations of numbers are being selected by the

15 players;

16 (b) The way in which the numbers are being wagered; and

17 (c) The corresponding dollar amount wagered.

18 (17) "Continuation game" means a multipart bingo game in which more than

19 one (1) game with more than one (1) pattern may be played on one (1) bingo

20 paper sheet.




                                             3
 1 (18) "Covered" means daubed or smeared with indelible ink if using a

 2 disposable paper bingo face, or marked electronically if using a card-minding

 3 device.

 4 (19) "Cumulative pulltab game" means a pulltab game consisting of multiple

 5 pulltab deals that is designed by the manufacturer so that a portion of each

 6 deal's predetermined payout is designated to a prize pool board.

 7 (20) "Deal" means each separate game or series of pulltabs which has the

 8 same serial number and which may be composed of multiple packages.

 9 (21) "Digital signature" means a method by which data, as in a software

10 application, is expressed in a calculated number which is used to verify the

11 accuracy of the data or a copy of the data.

12 (22) "Disposable paper bingo face" means a nonreusable bingo face assembled

13 in a single sheet, multiple face sheet, pad, or pack form.

14 (23) "Draw ticket" means a blank ticket upon which the numbers are marked

15 as they are randomly selected.

16 (24) "EPROM" means Erasable Programmable ROM.

17 (25) "Event game" means a type of pulltab game, with or without a seal card,

18 that is designed by the manufacturer so that certain prizes are determined

19 by:

20 (a) The draw of a bingo ball; or

21 (b) A method of randomly selecting numbers or symbols that correspond to

22 the numbers or symbols printed on a ticket.




                                          4
 1 (26) "Exception log" means a record documenting a prize payout that has not

 2 been authorized by the computer.

 3 (27) "Face" means a paper or an electronic representation containing:

 4 (a) Five (5) rows of five (5) squares with numbers or symbols;

 5 (b) A free center space;

 6 (c) The letters "B", "I", "N", "G", "O" printed in order in or over the five (5)

 7 columns; and

 8 (d) A unique perm number identifying each face.

 9 (28) "Fixed base card-minding device" means a computer system, not

10 necessarily manufactured by a licensed manufacturer, which has been loaded

11 with proprietary software by a licensed manufacturer to enable it to function

12 as a card-minding device.

13 (29) "Flare" means the paper included with a deal of pulltabs that identifies

14 the game and payout structure.

15 (30) "Flashboard" or "display board" means a board that displays the bingo

16 numbers called.

17 (31) "Form number" means a manufacturer’s alphanumeric number that

18 identifies a pulltab payout structure.

19 (32) "Gambling" means staking or risking something of value on the outcome

20 of a contest, game, gaming scheme, or gaming device which:




                                            5
 1 (a) Is based upon an element of chance, in accord with an agreement or

 2 understanding that someone will receive something of value if there is a

 3 certain outcome; and

 4 (b) Does not include a contest or game in which eligibility to participate is

 5 determined by chance and the ultimate winner is determined by skill.

 6 (33) "Gaming occasion program", "bingo program", "occasion program", or

 7 "program" means a written list of all games to be played and prize amounts

 8 to be paid for each game during a gaming occasion, including, if the prizes are

 9 based on attendance, the amount of the prize and the attendance required.

10 (34) "Gaming occasion" means an event at which charitable gaming takes

11 place, such as a bingo session, a charity fundraising event, a special limited

12 charity fundraising event, a sale of pulltabs, or a sale of raffle tickets.

13 (35) "Hand-held card-minding device" means a hand-held computer that is

14 either manufactured or customized by the manufacturer to operate as a card-

15 minding device.

16 (36) "Hard card" means a reusable card bearing a bingo face or faces.

17 (37) "Inside ticket" means a blank Keno ticket:

18 (a) Constructed with eighty (80) blocks numbered one (1) through eighty (80);

19 and

20   (b) Containing a bet block.




                                            6
 1   (38) "Jackpot prize in a progressive pulltab game" or "progressive jackpot

 2 prize" means a prize in addition to the instant or seal card prizes which is

 3 carried over from deal to deal until it is won.

 4 (39) "Jar ticket" means a type of pulltab game ticket that is folded, glued, or

 5 stapled.

 6 (40) "Keno" means a numbers game in which:

 7 (a) A participant chooses from one (1) to ten (10) numbers from a pool of

 8 eighty (80) numbers; and

 9 (b) The winner and the prize is determined by correctly matching the

10 participant's numbers to the twenty (20) numbers generated in the game.

11 (41) "Keno equipment" means:

12 (a) An electronic selection device;

13 (b) A random number generator;

14 (c) A computerized Keno system; or

15 (d) An integrated system of computer hardware and software that:

16 1. Generates a player ticket;

17 2. Records a game outcome;

18 3. Verifies a winning ticket;

19 4. Produces a management report; or

20 5. Performs other internal audit controls of a Keno operation.

21 (42) "Keno manager" means the person in charge of the operation of the Keno

22 game.




                                           7
 1 (43) "Last sale" means a pulltab game designed by the manufacturer in which

 2 a prize is awarded to the person who bought the last pulltab in a deal.

 3 (44) "Merchandise prize" means a noncash prize given away at a charitable

 4 gaming event either as a game prize or a door prize.

 5 (45) "Model number" means the name or number designated by the

 6 manufacturer that indicates the unique structural design of a hand-held

 7 card-minding device or card-minding system component.

 8 (46) "Multipackaged pulltab deal" means a pulltab game consisting of a single

 9 deal of not more than 10,000 [4,000 tickets] that is packed in subsets and in

10 which each subset contributes to a prize pool with or without a prize board.

11 (47) "Multirace ticket" means a single ticket that allows a player to make the

12 same wager on consecutive games.

13 (48) "Outside ticket" means a computer-generated ticket given to the player

14 which reflects game and wagering information.

15 (49) "Perm number" means the number located on a bingo face that identifies

16 the unique pattern of numbers appearing on that face.

17 (50) "Pickle jar, bonanza ball, or hot ball" means games played in conjunction

18 with other bingo games in which:

19 (a) A bingo ball is selected by the selection device prior to the start of certain

20 bingo games or all bingo games; and




                                           8
 1 (b) A patron is awarded the amount of money associated with the pickle jar,

 2 bonanza ball, or hot ball, if the selected bingo ball is called, and because of

 3 that selected ball being called, a patron wins the bingo game being played.

 4 (51) "Player pick bingo" means that the patron picks the numbers which

 5 constitute a bingo on his or her face or faces and a machine prints those

 6 numbers on the bingo face at the gaming occasion before the game is played.

 7 (52) "Player tracking software" means computer software installed on a card-

 8 minding device system or other point of sale system that is used to identify or

 9 track certain characteristics of bingo players, including personal data and

10 purchasing habits.

11 (53) "Progressive bingo" means a bingo game in which the value of the prize

12 is carried forward to the next bingo occasion if no player wins at that session.

13 (54) "Progressive pulltab game" or "carryover pulltab game" means a pulltab

14 game consisting of one (1) or more deals designed by the manufacturer so

15 that a portion of the deal's predetermined prize payout is designated to a

16 progressive jackpot and the jackpot value may accumulate from one (1) deal

17 to the next deal until won.

18 (55) "PROM" means programmable ROM.

19 (56) "Promotional" means any item available at no charge to all participants

20 at an event.

21 (57) "Proprietary software" means custom computer software developed by

22 the manufacturer that is a primary component of the card-minding device




                                          9
 1 system and is required for a card-minding device to be used in a game of

 2 bingo.

 3 (58) "Pulltab" means a charity game ticket.

 4 (59) "Purchased prize" means any merchandise prize that was purchased and

 5 not donated.

 6 (60) "Quick pick" means a number selection made for the player by a

 7 computer.

 8 (61) "RAM" or "random access memory" means the electronic memory that a

 9 computer uses to store information.

10 (62) "Random number generator" means a device:

11 (a) For generating number values that exhibit characteristics of randomness;

12 and

13 (b) Composed of:

14 1. Computer hardware;

15 2. Computer software; or

16 3. A combination of computer hardware and software.

17 (63) "ROM" or "read only memory" means the electronic component used for

18 storage of nonvolatile information in Keno equipment that provides

19 instructions needed by the computer to begin its operations each time it is

20 turned on and may be either "PROM" or "EPROM".

21 (64) "Secondary component" means an additional software or hardware

22 component that:




                                         10
 1 (a) Is part of or is connected to a card-minding device system;

 2 (b) Does not affect the conduct of the game of bingo;

 3 (c) Is provided by the manufacturer; and

 4 (d) May include computer screen backgrounds, battery charge-up software

 5 routines, monitors, keyboards, pointer devices, mice, printers, printer

 6 software drivers, or charging racks.

 7 (65) "Selected" means a bingo number that has been obtained by the selection

 8 device and is ready to be called next by the bingo caller.

 9 (66) "Selection device" means a device that:

10 (a) May be operated manually or automatically; and

11 (b) Is used to randomly select bingo numbers.

12 (67) "Selection pool" means the bingo numbers in a selection device that have

13 not been selected.

14 (68) "Serial number" means a number assigned by the manufacturer to track

15 the individual product.

16 (69) "Series number" means the number of unique faces contained in a series.

17 (70) "Set" means a case or cases of paper that contain one (1) of each face in a

18 series.

19 (71) "Site system" means computer hardware, software, and peripheral

20 equipment that:

21 (a) Is located at the bingo premises;

22 (b) Is operated by the charitable organization;




                                           11
 1 (c) Interfaces with, connects with, controls or defines the operational

 2 parameters of card-minding devices; and

 3 (d) May include the following components:

 4 1. Point of sale station;

 5 2. A caller verification system;

 6 3. Required printers;

 7 4. Dial-up modem;

 8 5. Proprietary executable software;

 9 6. Report generation software; and

10 7. An accounting system or database.

11 (72) "Terminal number" means the unique identification number, if any,

12 assigned by a manufacturer to a specific standard card-minding device.

13 (73) "Transaction log" means a record of the same information printed on

14 each outside ticket that is:

15 (a) Retained in the computer's memory; or

16 (b) Printed out by the computer.

17 (74) "Verification system" means a book of bingo faces compiled by the

18 manufacturer or an electronic device created by the manufacturer that:

19 (a) Lists the unique patterns of numbers on each face by perm number; and

20 (b) Is used to verify the authenticity of a winning face.




                                           12
1 (75) "Version number" means a unique number designated by the

2 manufacturer to identify a specific version of software used on or by the card-

3 minding device system.

4 (76) "Way ticket" means a single ticket that permits wagering on a

5 combination of groups of numbers in various ways designated by the player.

6 (77) "Week" means a seven (7) day period beginning on Sunday and ending

7 Saturday.

8 (78) "Year" is defined by KRS 238.505(25).
9




                                        13
 1   READ AND APPROVED:
 2
 3
 4
 5
 6
 7   ______________________________________        ______________________
 8   Tony S. Royalty, Executive Director           Date
 9   Office of Charitable Gaming
10
11
12
13
14   ______________________________________        ______________________
15   Timothy LeDonne, Commissioner                 Date
16   Department of Public Protection
17
18
19
20
21   ______________________________________        ______________________
22   Lloyd R. Cress, Deputy Secretary              Date
23   Environmental and Public Protection Cabinet
24   For Teresa J. Hill, Secretary
25   Environmental and Public Protection Cabinet
26
27




                                            14
 1                 PUBLIC HEARING AND PUBLIC COMMENT PERIOD
 2
 3   A public hearing on this administrative regulation shall be held on May 22, 2007 at 10:00
 4   am in the hearing room of the Office of Charitable Gaming, 132 Brighton Park
 5   Boulevard, Frankfort, Kentucky.
 6
 7   Individuals interested in being heard at this hearing shall notify this agency, in writing
 8   five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent
 9   to attend the hearing is received by that date, the hearing may be canceled. This hearing
10   is open to the public. Any person who wishes to be heard will be given an opportunity to
11   comment on the proposed administrative regulation.
12
13   A transcript of the public hearing will not be made unless a written request for a
14   transcript is made. If you do not wish to be heard at the public hearing, you may submit
15   written comments on the proposed administrative regulation. Written comments shall be
16   accepted until close of business Thursday, May 31, 2007.
17
18   Send written notification of intent to be heard at the public hearing or written comments
19   on the proposed administrative regulation to the contact person.
20
21   CONTACT PERSON:
22       Leah Cooper Boggs
23       Assistant Director of Licensing
24       Division of Licensing and Compliance
25       Office of Charitable Gaming
26       132 Brighton Park Boulevard
27       Frankfort, Kentucky 40601
28       Phone: (502) 573-5528
29       Fax: (502) 573-6625
30
31




                                                   15
 1                       REGULATORY IMPACT ANALYSIS
 2                           AND TIERING STATEMENT
 3
 4 Contact Person: Leah Cooper Boggs

 5 (1) Provide a brief summary of: KAR 1:001, Definitions for 820 KAR Chapter 1.

 6 (a) What this administrative regulation does: This regulation contains the definitions

 7 needed for the other regulations in this chapter.

 8 (b) The necessity of this administrative regulation: This regulation is needed so that the

 9 licensees of the Office can better understand the regulations.

10 (c) How does this administrative regulation conform to the content of the authorizing

11 statutes:   KRS 238.515(9) requires the Office to promulgate regulations which are

12 necessary to carry out the purposes of KRS 238, et seq.

13 (d)         How this administrative regulation currently assists or will assist in the

14 effective administration of the statutes:

15 This regulation provides definitions needed for the other regulations.

16 (2) If this is an amendment to an existing administrative regulation, provide a brief

17 summary of:

18 (a)      How the amendment will change this existing administrative regulation?

19 The amendment to this regulation amends definitions needed for the other amendments to

20 the regulations and to include current terms used in the industry.

21 (b)      The necessity of the amendment to this administrative regulation:




                                                16
 1 This amendment is needed to clarify terms so that the licensees of the Office can better

 2 understand the regulations.

 3 (c)      How the amendment conforms to the content of the authorizing statutes:

 4 KRS 238.515(9) requires the Office to promulgate regulations which are necessary to

 5 carry out the purposes of KRS 238, et seq.

 6 (d)      How the amendment will assist in the effective administration of the statutes:

 7 The amendment to this regulation amends definitions needed for the regulations and the

 8 other amendments to the regulations. This amendment is needed to clarify terms so that

 9 the licensees of the Office can better understand the regulations.

10 (3) List the type and number of individuals, businesses, organizations, or state and local

11 governments affected by this administrative regulation:

12 This regulation will affect approximately 1200 charitable organizations, 30 charitable

13 gaming manufacturers, 70 charitable gaming facilities, and 30 charitable gaming supply

14 distributors.

15 (4) Provide an analysis of how the entities identified in question (3) will be impacted by

16 either the implementation of this administrative regulation, if new, or by the change, if it

17 is an amendment, including:

18 (a) List the actions that each of the regulation entities identified in question (3) will have

19 to take to comply with this administrative regulation or amendment: This regulation

20 contains the definitions for the other regulations and by itself will not impact the

21 regulated community.


                                                 17
 1 (b) In complying with this administrative regulation or amendment, how much will it cost

 2 each of the entities identified in question (3): This regulation contains the definitions for

 3 the other regulations and by itself will not impact the regulated community.

 4 (c) As a result of compliance, what benefits will accrue to the entities identified in

 5 question (3):

 6 This regulation contains the definitions for the other regulations and by itself will not

 7 impact the regulated community.

 8 (5) Provide an estimate of how much it will cost to implement this regulation:

 9 (a)     Initially: None.

10 (b)     On a continuing basis. None.

11 (6) What is the source of funding to be used for the implementation and enforcement of

12 this administrative regulation? Charitable gaming is funded by the regulated community.

13 (7) Provide an assessment of whether an increase in fees or funding will be necessary to

14 implement this administrative regulation, if new, or by the change if it is an amendment.

15 No fee increase will be necessary to implement this regulation.

16 (8) State whether or not this administrative regulation establishes any fees or directly or

17 indirectly increases any fees: No.

18 (9) TIERING: Is tiering applied? Tiering is not applied because this regulation applies

19 equally to all charitable gaming licensees.

20




                                                 18
 1                  FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 2
 3   Regulation No. 820 KAR 1:001                        Contact Person: Leah Cooper Boggs
 4
 5         1. Does this administrative regulation relate to any program, service, or
 6   requirements of a state or local government (including cities, counties, fire departments,
 7   or school districts)?
 8         Yes ______ No ___X__
 9         If yes, complete questions 2-4.
10
11         2. What units, parts or divisions of state or local government (including cities,
12   counties, fire departments, or school districts) will be impacted by this administrative
13   regulation?
14
15         3. Identify each state or federal statute or federal regulation that requires or
16   authorizes the action taken by the administrative regulation.
17
18         4. Estimate the effect of this administrative regulation on the expenditures and
19   revenues of a state or local government agency (including cities, counties, fire
20   departments, or school districts) for the first full year the administrative regulation is to
21   be in effect.
22
23          (a) How much revenue will this administrative regulation generate for the state or
24   local government (including cities, counties, fire departments, or school districts) for the
25   first year?
26
27         (b) How much revenue will this administrative regulation generate for the state or
28   local government (including cities, counties, fire departments, or school districts) for
29   subsequent years?
30
31         (c) How much will it cost to administer this program for the first year?
32
33         (d) How much will it cost to administer this program for subsequent years?
34
35   Note: If specific dollar estimates cannot be determined, provide a brief narrative to
36   explain the fiscal impact of the administrative regulation.
37         Revenues (+/-):
38         Expenditures (+/-):
39         Other Explanation:
40


                                                  19
 1
 2
 3
 4
 5
 6 ENVIRONMENTAL AND PUBLIC PROTECTION CABINET

 7 DEPARTMENT OF PUBLIC PROTECTION

 8 OFFICE OF CHARITABLE GAMING

 9 (Amendment)

10 820 KAR 1:015. Issuance of annual license for a charitable organization.

11   RELATES TO: KRS 238.515(3), 238.525, 238.535

12   STATUTORY AUTHORITY: KRS 238.515(1), (2), (3), (9), 238.525(1),

13 238.535(9), (11), (12), 238.540(1)

14 NECESSITY, FUNCTION, AND CONFORMITY: KRS 238.525(1) requires

15 the office to issue an annual or biennial license to a qualified applicant and to

16 establish fees not to exceed the amounts established in KRS 238.535. KRS

17 238.535(9) requires applicants for licensure to complete a required

18 application form and KRS 238.535(12) requires the office to establish

19 licensure fees not to exceed $300. This administrative regulation establishes

20 the fees and procedures for annual licensure of charitable organizations.

21 Section 1. Application for Licensure. (1) A charitable organization shall

22 submit a complete, accurate, and verifiable application on Form CG-1,




                                          20
1 Application for License for Charitable Organization, at least sixty (60) days

3 prior to the expiration of its license or expected date of gaming.
2




                                         21
 1 (2) An application shall not be considered complete until all deficiencies are

 2 resolved.

 3 (3) If the applicant does not file a written response to a deficiency request

 4 within thirty (30) days or does not provide any requested documents, the

 5 application shall be deemed withdrawn.

 6 (4) Once the office has received a complete application, it shall grant or deny

 7 the license within sixty (60) days.

 8 (5) The office shall issue a license if the applicant has met the requirements

 9 for licensure set forth in KRS 238.535, paid all fees and fines, filed all reports

10 required, filed an acceptable financial plan if required, and complied with all

11 terms and conditions of any applicable settlement agreement or probationary

12 terms.

13 (6) The following persons shall be required to submit a fingerprint card if the

14 person resides out-of-state:

15 (a) The chief executive officer;

16 (b) The chief financial officer; and

17 (c) Each chairperson.

18 Section 2. Information Required on License. Licenses issued by the Office of

19 Charitable Gaming shall clearly state the:

20 (1) Name of the licensee;

21 (2) Physical address of the licensee;

22 (3) Effective date [Date of issuance] of the license;




                                           22
 1 (4) Expiration date of the license;

 2 (5) Premises or location at which the charitable gaming will be conducted; [, if

 3 the license is for a charitable organization or a charitable gaming facility;]

 4 (6) Type of license issued (organization);

 5 (7) Address of the Office of Charitable Gaming; and

 6 (8) The day and time for each session, and the type of gaming to be conducted

 7 under the license.

 8 Section 3. Fees for Licensure. (1) The annual license fees for each

 9 organization license issued shall be as follows:

10 (a) $100 for charitable [Charitable] organizations upon initial application or

11 charitable gaming organizations with gross receipts not in excess of $100,000

12 [- $100];

13 (b) $200 for charitable [Charitable] gaming organizations [organization] with

14 gross receipts over $100,000, but not in excess of $250,000 [- $200]; or

15 (c) $300 for charitable [Charitable] gaming organizations [organization] with

16 gross receipts over $250,000 [- $300].

17 (2) A nonrefundable processing fee of twenty-five (25) dollars shall:

18 (a) Accompany each application for licensure; and

19 (b) Be credited against the amount of the annual license fee.

20 (3) An annual license shall not be issued until the annual license fee is paid

21 in full.




                                            23
 1 (4) The annual license term shall be [effective] for one (1) year from the

 2 effective date of the license [issuance.]

 3 Section 4. Change Request. (1)(a) If the organization wishes to change the

 4 date, time, or location of a gaming session, the charitable organization shall

 5 submit a written request signed by an officer and a lease for the gaming

 6 location to the office by U.S. postage prepaid mail, electronic mail, or

 7 facsimile transmission [completed form CG-DTL, Request to Change Playing

 8 Location, Day, or Time,] prior to the date of the requested change. [along with

 9 a fee of twenty-five (25) dollars and a lease for the gaming location. The

10 change request form shall be signed by an officer.]

11 (b) The office shall process this request and issue or deny a license within ten

12 (10) days.

13 (c) The organization shall not engage in gaming at the requested date, time,

14 or location change if the new license has not been received.

15 (d) The organization will be invoiced a fee of twenty-five (25) dollars for the

16 change.

17 (2) If the organization wishes to change any other information contained in

18 the license application, the charitable organization shall submit those

19 changes in writing [a completed form CG-OC, Request to Change Officers or

20 Chairpersons,] no later than thirty (30) days after the change is made. The

21 change request [form] shall be signed by an officer.




                                           24
 1 [(3) Once the office has received a completed change request [form], it shall

 2 grant or deny the new license within thirty (30) days.]

 3 Section 5. Incorporation by Reference. (1) [The following material is

 4 incorporated by reference:

 5 (a)] Form CG-1, "Application for License for Charitable Organization (04/07)”

 6 is incorporated by reference. [(2/06)";

 7 (b) Form CG-DTL, "Request to Change Playing Location, Day, or Time

 8 (2/06)"; and

 9 (c) Form CG-OC, "Request to Change Officers or Chairpersons (2/06)".]

10 (2) This material may be inspected, copied, or obtained, subject to applicable

11 copyright law, at the Office of Charitable Gaming, Environmental and Public

12 Protection Cabinet, 132 Brighton Park Boulevard, Frankfort, Kentucky

14 40601, Monday through Friday, 8 a.m. to 4:30 p.m.
13




                                             25
 1   READ AND APPROVED:
 2
 3
 4
 5
 6
 7   ______________________________________        ______________________
 8   Tony S. Royalty, Executive Director           Date
 9   Office of Charitable Gaming
10
11
12
13
14   ______________________________________        ______________________
15   Timothy LeDonne, Commissioner                 Date
16   Department of Public Protection
17
18
19
20
21   ______________________________________        ______________________
22   Lloyd R. Cress, Deputy Secretary              Date
23   Environmental and Public Protection Cabinet
24   For Teresa J. Hill, Secretary
25   Environmental and Public Protection Cabinet
26
27




                                            26
 1                 PUBLIC HEARING AND PUBLIC COMMENT PERIOD
 2
 3   A public hearing on this administrative regulation shall be held on May 22, 2007 at 10:00
 4   am in the hearing room of the Office of Charitable Gaming, 132 Brighton Park
 5   Boulevard, Frankfort, Kentucky.
 6
 7   Individuals interested in being heard at this hearing shall notify this agency, in writing
 8   five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent
 9   to attend the hearing is received by that date, the hearing may be canceled. This hearing
10   is open to the public. Any person who wishes to be heard will be given an opportunity to
11   comment on the proposed administrative regulation.
12
13   A transcript of the public hearing will not be made unless a written request for a
14   transcript is made. If you do not wish to be heard at the public hearing, you may submit
15   written comments on the proposed administrative regulation. Written comments shall be
16   accepted until close of business Thursday, May 31, 2007.
17
18   Send written notification of intent to be heard at the public hearing or written comments
19   on the proposed administrative regulation to the contact person.
20
21   CONTACT PERSON:
22       Leah Cooper Boggs
23       Assistant Director of Licensing
24       Division of Licensing and Compliance
25       Office of Charitable Gaming
26       132 Brighton Park Boulevard
27       Frankfort, Kentucky 40601
28       Phone: (502) 573-5528
29       Fax: (502) 573-6625
30
31




                                                   27
 1                       REGULATORY IMPACT ANALYSIS
 2                           AND TIERING STATEMENT
 3
 4 Contact Person: Leah Cooper Boggs

 5 (1) 820 KAR 1:015, Issuance of annual license for a charitable organization.

 6      (a) What this administrative regulation does:

 7      This regulation sets out the requirements for a charitable organization to obtain a

 8      charitable gaming license.

 9      (b) The necessity of this administrative regulation:

10      This administrative regulation is needed so that organizations will know the

11      requirements and procedure to obtain a charitable gaming license.

12      (c) How does this administrative regulation conform to the content of the authorizing

13      statutes:

14      KRS 238.515(1) requires the office to license charitable organizations and KRS

15      238.515(9) requires the Office to promulgate regulations which are necessary to carry

16      out the purposes of KRS 238, et seq.

17      (d) How this administrative regulation currently assists or will assist in the effective

18          administration of the statutes:

19      The current regulation sets forth the licensing requirements for organizations.

20 (2) If this is an amendment to an existing administrative regulation, provide a brief

21 summary of:

22      (e) How the amendment will change this existing administrative regulation?




                                                 28
 1      The amendment will delete the requirement that organizations complete forms to

 2      make changes to the information in their applications. It also sets forth the new

 3      procedure for making those changes. The amendment also amends the license

 4      application form and makes it easier to understand. The amendment also reflects the

 5      statutory change which shortened the processing time for a location change.

 6      (f) The necessity of the amendment to this administrative regulation:

 7      This administrative regulation is necessary to correct the procedure for making

 8      changes which is cumbersome and to make changes to the license application to make

 9      it easier to understand. It also shortens the time to process a location change.

10      (g) How the amendment conforms to the content of the authorizing statutes:

11      KRS 238.515(9) requires the Office to promulgate regulations which are necessary to

12      carry out the purposes of KRS 238, et seq.

13      (h) How the amendment will assist in the effective administration of the statutes:

14      This administrative regulation will assist the Office in the effective administration of

15      the statutes in that it will make the licensing requirements easier to understand.

16 (3) List the type and number of individuals, businesses, organizations, or state and local

17 governments affected by this administrative regulation:

18 This regulation will affect approximately 700 charitable organizations.

19 (4) Provide an analysis of how the entities identified in question (3) will be impacted by

20 either the implementation of this administrative regulation, if new, or by the change, if it

21 is an amendment, including:


                                                 29
 1 (a) List the actions that each of the regulation entities identified in question (3) will have

 2 to take to comply with this administrative regulation or amendment: The organizations

 3 will have to obtain the new regulation and application and become familiar with it.

 4 (b) In complying with this administrative regulation or amendment, how much will it cost

 5 each of the entities identified in question (3): It should be a minimal expense.

 6 (c) As a result of compliance, what benefits will accrue to the entities identified in

 7 question (3):

 8 It will be easier to apply for a license and make changes once you have obtained your

 9 license.

10 (5) Provide an estimate of how much it will cost to implement this regulation:

11      (c) Initially: None.

12      (d) On a continuing basis. None.

13 (6) What is the source of funding to be used for the implementation and enforcement of

14 this administrative regulation? Charitable gaming is funded by the regulated community.

15 (7) Provide an assessment of whether an increase in fees or funding will be necessary to

16 implement this administrative regulation, if new, or by the change if it is an amendment.

17 No fee increase will be necessary to implement this regulation.

18 (8) State whether or not this administrative regulation establishes any fees or directly or

19 indirectly increases any fees: No.

20 (9) TIERING: Is tiering applied? Tiering is not applied because this regulation applies

21 equally to all charitable organizations.


                                                 30
1




    31
 1                      FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 2
 3   Regulation No.       820 KAR 1:015                  Contact Person: Leah Cooper Boggs
 4
 5         1. Does this administrative regulation relate to any program, service, or
 6   requirements of a state or local government (including cities, counties, fire departments,
 7   or school districts)?
 8         Yes ______ No __X___
 9         If yes, complete questions 2-4.
10
11         2. What units, parts or divisions of state or local government (including cities,
12   counties, fire departments, or school districts) will be impacted by this administrative
13   regulation?
14
15         3. Identify each state or federal statute or federal regulation that requires or
16   authorizes the action taken by the administrative regulation.
17
18         4. Estimate the effect of this administrative regulation on the expenditures and
19   revenues of a state or local government agency (including cities, counties, fire
20   departments, or school districts) for the first full year the administrative regulation is to
21   be in effect.
22
23          (a) How much revenue will this administrative regulation generate for the state or
24   local government (including cities, counties, fire departments, or school districts) for the
25   first year?
26
27         (b) How much revenue will this administrative regulation generate for the state or
28   local government (including cities, counties, fire departments, or school districts) for
29   subsequent years?
30
31         (c) How much will it cost to administer this program for the first year?
32
33         (d) How much will it cost to administer this program for subsequent years?
34
35   Note: If specific dollar estimates cannot be determined, provide a brief narrative to
36   explain the fiscal impact of the administrative regulation.
37         Revenues (+/-):
38         Expenditures (+/-):
39         Other Explanation:
40


                                                  32
 1 DETAILED SUMMARY OF MATERIAL INCORPORATED BY REFERENCE

 2                                       820 KAR 1:015

 3                   Issuance of Annual License of a Charitable Organization

 4 (1)     820 KAR 1:015 incorporates by reference Form CG-1, “Application for License

 5 for Charitable Organization", which is the form that an organization would file to obtain a

 6 gaming license.     This form is being amended to make it easier to understand and

 7 complete by the organization.

 8 (2)     The total number of pages that the Office of Charitable Gaming has incorporated

9 by reference is fourteen (14).

10
11
12
13
14
15

16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31


                                               33
 1
 2
 3
 4
 5
 6 ENVIRONMENTAL AND PUBLIC PROTECTION CABINET

 7 DEPARTMENT OF PUBLIC PROTECTION

 8 OFFICE OF CHARITABLE GAMING

 9 (Amendment)

10 820 KAR 1:025. Financial [Quarterly] reports of a licensed charitable

11 organization.

12 RELATES TO: KRS 238.550(7), (8) [(5)], 238.570(1)

13 STATUTORY AUTHORITY: KRS 238.515(4), (9), 238.550(7), (8) [(5),]

14 NECESSITY, FUNCTION, AND CONFORMITY: KRS 238.550(7), (8) require

15 [(5) requires] a licensed charitable organization to submit financial

16 [quarterly]     reports.   KRS   238.570(1)   requires   a   licensed   charitable

17 organization to remit a percentage [0.53 of one (1) percent] of the gross

18 receipts derived from charitable gaming to the office. This administrative

19 regulation establishes the method and time of filing the financial [quarterly]

20 reports and remitting payment of the [quarterly] fees due.

21 Section 1. [Quarterly] Reporting Period Defined. (1)[(a)] For licensed

22 charitable organizations that have gross receipts of $200,000 or less per

23 calendar year and do not have a weekly bingo session, a complete, accurate,


                                           34
1 legible, and verifiable financial [quarterly] report, in accordance with Section

2 2 of this administrative regulation, shall be submitted by each licensed




                                         35
 1 charitable organization along with the appropriate fee for every year licensed

 2 to game on or before January 31st.

 3 (2) For all other licensed charitable organizations, a [A] complete, accurate,

 4 legible, and verifiable financial [quarterly] report, in accordance with Section

 5 2 of this administrative regulation, shall be submitted by each licensed

 6 charitable organization along with the appropriate fee for every quarter

 7 licensed to game on or before the following dates:

 8 (a). [1.] April 30, for the quarter January 1 to March 31;

 9 (b). [2.] July 31, for the quarter April 1 to June 30;

10 (c). [3.] October 31, for the quarter July 1 to September 30; and

11 (d). [4.] January 31, for the quarter October 1 to December 31.

12 (3) [(b)] If the due date is on a Saturday, Sunday or legal holiday, the report

13 and fee shall be due on the first business day thereafter.

14 (4) [(2)] The [A] financial [quarterly] report and fee shall be considered filed

15 when due if it has been:

16 (a) Mailed to the office by first class mail, postage prepaid, to the correct

17 address and postmarked by the due date; or

18 (b) Received in the office by hand-delivery on or before the due date.

19 Section 2. Financial [Quarterly] Reports. (1) A financial [quarterly] report

20 shall:

21 (a) Be submitted on Form CG-FIN [CG-QR], "Licensed Charitable

22 Organization Financial [Quarterly] Report", including all attachments.




                                           36
 1 (b) [Be submitted for each quarter that the organization is licensed to game;]

 2 [(c)] Be completed in ink or typed;

 3 (c) [(d)] Include the original signature and printed name of either the chief

 4 executive officer or the chief financial officer of the licensed charitable

 5 organization; and

 6 (d) [(e)] Include the original signature and printed name of the preparer if

 7 prepared by an individual other than the chief executive officer or chief

 8 financial officer.

 9 (2) If an organization does not have any information to place on an

10 attachment to the financial [quarterly] report, it shall indicate "not

11 applicable" on the attachment.

12 (3) To complete the Bingo Paper Supplies Inventory page of Form CG-FIN

13 [CG-QR], the product description shall be listed in the format "# ON # UP",

14 with:

15 (a) The number "ON" being the number of bingo faces on a bingo paper sheet;

16 and

17 (b) The number "UP" being the number of bingo paper sheets contained in a

18 bingo paper pack.

19 (4) If multiple pages are used for inventory, then the persons completing the

20 inventory shall sign one (1) page of the pages they completed and initial the

21 remaining pages.




                                         37
 1 Section 3. Fees Due. The fee imposed by KRS 238.570(1) on gross gaming

 2 receipts of a licensed charitable organization shall be remitted by check made

 3 payable to "Kentucky State Treasurer" at the time the financial [quarterly]

 4 report is due.

 5 Section 4. Reporting Expenses. All expenses incurred by a licensee shall be

 6 reported on the financial [quarterly] report for the date on which [quarter in

 7 which] payment was made, (either the date a check was written or an

 8 electronic funds transfer was made) regardless of when the supplies were

 9 used or the services were rendered.

10 Section 5. Incorporation by Reference. (1) Form CG-FIN [CG-QR], "Licensed

11 Charitable Organization Financial [Quarterly] Report, (04/07) [2/06]" is

12 incorporated by reference.

13 (2) This material may be inspected, copied, or obtained, subject to applicable

14 copyright law, at the Office of Charitable Gaming, Environmental and Public

15 Protection Cabinet, 132 Brighton Park Boulevard, Frankfort, Kentucky

17 40601, Monday through Friday, 8 a.m. to 4:30 p.m.
16




                                         38
 1   READ AND APPROVED:
 2
 3
 4
 5
 6
 7   ______________________________________        ______________________
 8   Tony S. Royalty, Executive Director           Date
 9   Office of Charitable Gaming
10
11
12
13
14   ______________________________________        ______________________
15   Timothy LeDonne, Commissioner                 Date
16   Department of Public Protection
17
18
19
20
21   ______________________________________        ______________________
22   Lloyd R. Cress, Deputy Secretary              Date
23   Environmental and Public Protection Cabinet
24   For Teresa J. Hill, Secretary
25   Environmental and Public Protection Cabinet
26
27




                                            39
 1                 PUBLIC HEARING AND PUBLIC COMMENT PERIOD
 2
 3   A public hearing on this administrative regulation shall be held on May 22, 2007 at 10:00
 4   am in the hearing room of the Office of Charitable Gaming, 132 Brighton Park
 5   Boulevard, Frankfort, Kentucky.
 6
 7   Individuals interested in being heard at this hearing shall notify this agency, in writing
 8   five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent
 9   to attend the hearing is received by that date, the hearing may be canceled. This hearing
10   is open to the public. Any person who wishes to be heard will be given an opportunity to
11   comment on the proposed administrative regulation.
12
13   A transcript of the public hearing will not be made unless a written request for a
14   transcript is made. If you do not wish to be heard at the public hearing, you may submit
15   written comments on the proposed administrative regulation. Written comments shall be
16   accepted until close of business Thursday, May 31, 2007.
17
18   Send written notification of intent to be heard at the public hearing or written comments
19   on the proposed administrative regulation to the contact person.
20
21   CONTACT PERSON:
22       Leah Cooper Boggs
23       Assistant Director of Licensing
24       Division of Licensing and Compliance
25       Office of Charitable Gaming
26       132 Brighton Park Boulevard
27       Frankfort, Kentucky 40601
28       Phone: (502) 573-5528
29       Fax: (502) 573-6625
30
31




                                                   40
 1                       REGULATORY IMPACT ANALYSIS
 2                           AND TIERING STATEMENT
 3
 4
 5 Contact Person: Leah Cooper Boggs

 6 (2) Provide a brief summary of: 820 KAR 1:025, Financial reports of a licensed

 7      charitable organization.

 8      (c) What this administrative regulation does:

 9      This regulation sets forth the procedure for the filing of the financial reports of the

10      licensed charitable organizations.

11      (b) The necessity of this administrative regulation:

12      This administrative regulation is needed so that the agency can receive the reports

13      correctly and in a timely fashion.

14      (c) How does this administrative regulation conform to the content of the authorizing

15      statutes: KRS 238.550(6-8) requires that the organizations report concerning their

16      charitable gaming activity.

17      (e) How this administrative regulation currently assists or will assist in the effective

18         administration of the statutes:

19      This administrative regulation is needed so that the Office can enforce the statute

20      requiring the organizations to report regarding their receipts.

21 (3) If this is an amendment to an existing administrative regulation, provide a brief

22      summary of:

23      (i) How the amendment will change this existing administrative regulation?


                                                  41
 1      The amendment conforms the regulation to the statutory change allowing yearly

 2      financial reports. Also, the financial reports filed by each licensee need to be

 3      simplified, and changed to contain additional information needed by the Office to

 4      determine compliance with reporting, retention of proceeds, and use of funds for a

 5      charitable purpose.

 6      (j) The necessity of the amendment to this administrative regulation:

 7      It is necessary to amend this regulation to conform to the statutory change, simply the

 8      financial report, and allow the Office to capture more information so that it can

 9      monitor the charitable gaming activities of the organizations to determine if they are

10      in compliance.

11      (k) How the amendment conforms to the content of the authorizing statutes:

12      It is required so that the agency can enforce KRS 238.550(6-8).

13      (l) How the amendment will assist in the effective administration of the statutes:

14      The amendment will assist because it simplifies the financial report reporting form

15      and allows the agency to capture more information.

16 (4) List the type and number of individuals, businesses, organizations, or state and local

17      governments affected by this administrative regulation:

18 This regulation will affect approximately 700 charitable organizations.

19 (4) Provide an analysis of how the entities identified in question (3) will be impacted by

20 either the implementation of this administrative regulation, if new, or by the change, if it

21 is an amendment, including:


                                                 42
 1 (a) List the actions that each of the regulation entities identified in question (3) will have

 2 to take to comply with this administrative regulation or amendment: The organizations

 3 will have to obtain the new regulation and the financial report and become familiar with

 4 it.

 5 (b) In complying with this administrative regulation or amendment, how much will it cost

 6 each of the entities identified in question (3): None.

 7 (c) As a result of compliance, what benefits will accrue to the entities identified in

 8 question (3):

 9 It will be easier and quicker to apply to complete the financial report and approximately

10 300 organizations will only have to file 1 report a year instead of 4.

11 (5) Provide an estimate of how much it will cost to implement this regulation:

12       (e) Initially: None.

13       (f) On a continuing basis. None.

14 (6) What is the source of funding to be used for the implementation and enforcement of

15 this administrative regulation? Charitable gaming is funded by the regulated community.

16 (7) Provide an assessment of whether an increase in fees or funding will be necessary to

17 implement this administrative regulation, if new, or by the change if it is an amendment.

18 No fee increase will be necessary to implement this regulation.

19 (8) State whether or not this administrative regulation establishes any fees or directly or

20 indirectly increases any fees: No.




                                                 43
1 (9) TIERING: Is tiering applied? Tiering is not applied because this regulation applies

2 equally to all organizations.

3




                                              44
 1                  FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 2
 3
 4   Regulation No:        820 KAR 1:025                 Contact Person: Leah Cooper Boggs
 5
 6         1. Does this administrative regulation relate to any program, service, or
 7   requirements of a state or local government (including cities, counties, fire departments,
 8   or school districts)?
 9         Yes ______ No __X___
10         If yes, complete questions 2-4.
11
12         2. What units, parts or divisions of state or local government (including cities,
13   counties, fire departments, or school districts) will be impacted by this administrative
14   regulation?
15
16         3. Identify each state or federal statute or federal regulation that requires or
17   authorizes the action taken by the administrative regulation.
18
19         4. Estimate the effect of this administrative regulation on the expenditures and
20   revenues of a state or local government agency (including cities, counties, fire
21   departments, or school districts) for the first full year the administrative regulation is to
22   be in effect.
23
24          (a) How much revenue will this administrative regulation generate for the state or
25   local government (including cities, counties, fire departments, or school districts) for the
26   first year?
27
28         (b) How much revenue will this administrative regulation generate for the state or
29   local government (including cities, counties, fire departments, or school districts) for
30   subsequent years?
31
32         (c) How much will it cost to administer this program for the first year?
33
34         (d) How much will it cost to administer this program for subsequent years?
35
36   Note: If specific dollar estimates cannot be determined, provide a brief narrative to
37   explain the fiscal impact of the administrative regulation.
38         Revenues (+/-):
39         Expenditures (+/-):
40         Other Explanation:
41

                                                  45
 1 DETAILED SUMMARY OF MATERIAL INCORPORATED BY REFERENCE

 2                                      820 KAR 1:025

 3                   Quarterly reports of a licensed charitable organization.

 4 (1)            820 KAR 1:025 incorporates by reference Form CG-FIN, “Licensed

5 Charitable Organization Financial Report”, which is the form that an organization would

 6 file quarterly to report on its gaming proceeds. This form is being amended to make it

 7 easier to understand and complete by the organization.

 8 (2)     The total number of pages that the Office of Charitable Gaming has incorporated

9 by reference is twelve (12).

10
11
12
13
14
15

16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31


                                               46
 1
 2
 3
 4
 5
 6 ENVIRONMENTAL AN PUBLIC PROTECTION CABINET

 7 DEPARTMENT OF PUBLIC PROTECTION

 8 OFFICE OF CHARITABLE GAMING

 9 (Amendment)

10 820 KAR 1:029. Facility licensees.

11 RELATES TO: KRS 238.530(3), 238.555

12 STATUTORY AUTHORITY: KRS 238.515(2),(4), (9), 238.555(1), (2)

13 NECESSITY, FUNCTION, AND CONFORMITY: KRS 238.515(2) requires

14 the Office of Charitable Gaming to establish reasonable standards for the

15 conduct of charitable gaming and the operation of charitable gaming

16 facilities. KRS 238.555(2) requires applicants for a charitable gaming facility

17 license to complete a required application, and KRS 238.555(1) requires the

18 office to establish a licensure fee not to exceed $2,500. This administrative

19 regulation establishes the fees and procedures for the licensing of facilities.

20   Section 1. Application for Licensure. (1) An applicant for a facility license

21 shall submit a complete, accurate, and verifiable application on Form CG-4,

22 Application for a Facility License, at least sixty (60) days prior to the

23 expiration of its license or expected date of the operation of the facility.


                                            47
1   (2) An application shall not be considered complete until all deficiencies are

2 resolved.




                                         48
 1 (3) If the applicant does not file a written response to a deficiency request

 2 within thirty (30) days or does not provide a requested document, the

 3 application shall be deemed withdrawn.

 4   (4) Once the office has received a complete application, it shall grant or deny

 5 the license within sixty (60) days.

 6   (5) The office shall issue a license if the applicant has met the requirements

 7 for licensure set forth in KRS 238.555, paid all fees and fines, filed all reports

 8 required, filed an acceptable financial plan, if required, and complied with all

 9 terms and conditions of any applicable settlement agreement or probationary

10 terms.

11   (6) Fingerprints shall be required for the chief executive officer, the chief

12 financial officer, and anyone with a ten (10) percent or greater financial

13 interest in the licensee.

14   Section 2. Information Required on License. Licenses issued by the Office of

15 Charitable Gaming shall clearly state the:

16   (1) Name of the licensee;

17   (2) Physical address of the licensee;

18   (3) Address of the gaming facility, if different;

19   (4) Effective date [Date of issuance] of the license;

20   (5) Expiration date of the license;

21   (6) Type of license issued (facility); and

22   (7) Address of the Office of Charitable Gaming.




                                             49
 1   Section 3. Fees for Licensure. (1) The annual license fee for a charitable

 2 gaming facility having no more than eighteen (18) sessions per week shall be

 3 $2,500. The annual license fee for a charitable gaming facility having no more

 4 than eight (8) sessions per week shall be $1,250.

 5 (2) A nonrefundable processing fee of twenty-five (25) dollars shall:

 6 (a) Accompany each application for licensure; and

 7 (b) Be credited against the amount of the annual license fee.

 8 (3) An annual license shall not be issued until the annual license fee is paid

 9 in full.

10 (4) The annual license term shall be [effective] for one (1) year from the

11 effective date of the license. [issuance.]

12 (5) A facility license shall be issued based on location of the gaming facility.

13 Section 4. Requirements of Licensee. (1) [If a licensed organization also

14 possesses a facility license and rent is charged to other organizations that

15 game in the facility, the facility shall charge its own organization rent

16 equivalent to the amount it would charge another organization for each

17 session rented. Payment of the rent equivalent by a charitable organization,

18 as required by this subsection, shall not make the charitable organization a

19 lessee to itself.

20 (2)] A facility shall be permitted to list the names, license numbers, and

21 gaming sessions, information regarding the organizations, and information

22 regarding the gaming session of the organizations that game at that facility




                                           50
 1 on the facility Web site if there is no charge to the organizations for the

 2 listing.

 3 (2) [(3)] If a licensed charitable gaming organization contracts with a licensed

 4 facility to operate the concession stand, the members of that organization

 5 that volunteer at the concession stand may volunteer to work for their own

 6 gaming session, but shall not volunteer for the game of any other

 7 organization that games at that facility.

 8 (3) [(4)] A facility shall maintain a separate bank account for the facility

 9 operation that is not commingled with a personal account or another business

10 account. If the licensee owns multiple facilities, a separate bank account shall

11 be maintained for each one [1]. If separate businesses are operated out of the

12 facility including a check cashing service or a concession stand, each business

13 shall have a separate account.

14 (4) [(5)] Any payments received from a licensed charitable organization shall

15 be by check drawn on the charitable gaming account or electronic fund

16 transfer from the charitable gaming account.

17 Section 5. Incorporation by Reference. (1) Form CG-4, "Application for a

18 Facility License (2/06)" is incorporated by reference.

19 (2) This material may be inspected, copied, or obtained, subject to applicable

20 copyright law, at the Office of Charitable Gaming, Environmental and Public

21 Protection Cabinet, 132 Brighton Park Boulevard, Frankfort, Kentucky

23 40601, Monday through Friday, 8 a.m. to 4:30 p.m.
22




                                          51
 1   READ AND APPROVED:
 2
 3
 4
 5
 6
 7   ______________________________________        ______________________
 8   Tony S. Royalty, Executive Director           Date
 9   Office of Charitable Gaming
10
11
12
13
14   ______________________________________        ______________________
15   Timothy LeDonne, Commissioner                 Date
16   Department of Public Protection
17
18
19
20
21   ______________________________________        ______________________
22   Lloyd R. Cress, Deputy Secretary              Date
23   Environmental and Public Protection Cabinet
24   For Teresa J. Hill, Secretary
25   Environmental and Public Protection Cabinet
26
27




                                            52
 1                 PUBLIC HEARING AND PUBLIC COMMENT PERIOD
 2
 3   A public hearing on this administrative regulation shall be held on May 22, 2007 at 10:00
 4   am in the hearing room of the Office of Charitable Gaming, 132 Brighton Park
 5   Boulevard, Frankfort, Kentucky.
 6
 7   Individuals interested in being heard at this hearing shall notify this agency, in writing
 8   five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent
 9   to attend the hearing is received by that date, the hearing may be canceled. This hearing
10   is open to the public. Any person who wishes to be heard will be given an opportunity to
11   comment on the proposed administrative regulation.
12
13   A transcript of the public hearing will not be made unless a written request for a
14   transcript is made. If you do not wish to be heard at the public hearing, you may submit
15   written comments on the proposed administrative regulation. Written comments shall be
16   accepted until close of business Thursday, May 31, 2007.
17
18   Send written notification of intent to be heard at the public hearing or written comments
19   on the proposed administrative regulation to the contact person.
20
21   CONTACT PERSON:
22       Leah Cooper Boggs
23       Assistant Director of Licensing
24       Division of Licensing and Compliance
25       Office of Charitable Gaming
26       132 Brighton Park Boulevard
27       Frankfort, Kentucky 40601
28       Phone: (502) 573-5528
29       Fax: (502) 573-6625
30
31




                                                   53
 1                       REGULATORY IMPACT ANALYSIS
 2                           AND TIERING STATEMENT
 3
 4 Contact Person: Leah Cooper Boggs

 5 (1) Provide a brief summary of: 820 KAR 1:029, Facility licensees.

 6      (d) What this administrative regulation does:

 7      This regulation sets forth the requirements and procedure for a facility licensee to

 8      obtain a license and operate the facility.

 9      (b) The necessity of this administrative regulation:

10      This administrative regulation is needed so that the facility will better understand how

11      to comply with the law.

12      (c) How does this administrative regulation conform to the content of the authorizing

13      statutes: KRS 238.515(2) provides that the Office will establish and enforce

14      reasonable standards of the operation of a charitable gaming facility.

15      (f) How this administrative regulation currently assists or will assist in the effective

16         administration of the statutes:

17      This administrative regulation sets forth most all of the requirements, except for filing

18      reports, in one place which will make it easier to understand for the licensee.

19 (2) If this is an amendment to an existing administrative regulation, provide a brief

20 summary of:

21      (m)How the amendment will change this existing administrative regulation?




                                                     54
 1      The amendment will delete the requirement that organization operating as a charitable

 2      gaming facility pay themselves rent if they game at that facility and allows the facility

 3      to list organization information on the website if there is no charge,

 4      (n) The necessity of the amendment to this administrative regulation:

 5      The requirement that the organizations pay themselves rent caused a hardship on the

 6      charitable organizations.

 7      (o) How the amendment conforms to the content of the authorizing statutes:

 8      It outlines the requirements for charitable organizations operating charitable gaming

 9      facilities.

10      (p) How the amendment will assist in the effective administration of the statutes:

11      The amendment will assist because policing whether organizations paid themselves

12      rent was difficult, it caused a hardship on the charitable organizations, and it did not

13      adequately weed out the organizations that were using their operation of the facility to

14      circumvent the 40% rule. It will also allow the facility to list information on the

15      website.

16 (3) List the type and number of individuals, businesses, organizations, or state and local

17 governments affected by this administrative regulation:

18 This regulation will affect not more than 10 organizations and 70 facilities.

19 (4) Provide an analysis of how the entities identified in question (3) will be impacted by

20 either the implementation of this administrative regulation, if new, or by the change, if it

21 is an amendment, including:


                                                 55
 1 (a) List the actions that each of the regulation entities identified in question (3) will have

 2 to take to comply with this administrative regulation or amendment: The organizations

 3 will have to obtain the new regulation.

 4 (b) In complying with this administrative regulation or amendment, how much will it cost

 5 each of the entities identified in question (3): None.

 6 (c) As a result of compliance, what benefits will accrue to the entities identified in

 7 question (3):

 8 They will not have to pay rent if they also operate the facility in which they game.

 9 (5) Provide an estimate of how much it will cost to implement this regulation:

10      (g) Initially: None.

11      (h) On a continuing basis. None.

12 (6) What is the source of funding to be used for the implementation and enforcement of

13 this administrative regulation? Charitable gaming is funded by the regulated community.

14 (7) Provide an assessment of whether an increase in fees or funding will be necessary to

15 implement this administrative regulation, if new, or by the change if it is an amendment.

16 No fee increase will be necessary to implement this regulation.

17 (8) State whether or not this administrative regulation establishes any fees or directly or

18 indirectly increases any fees: No.

19 (9) TIERING: Is tiering applied? Tiering is not applied because this regulation applies

20 equally to all organizations that operate facilities.

21


                                                  56
 1                      FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 2
 3   Regulation No. 820 KAR 1:029                        Contact Person: Leah Cooper Boggs
 4
 5         1. Does this administrative regulation relate to any program, service, or
 6   requirements of a state or local government (including cities, counties, fire departments,
 7   or school districts)?
 8         Yes ______ No __X___
 9         If yes, complete questions 2-4.
10
11         2. What units, parts or divisions of state or local government (including cities,
12   counties, fire departments, or school districts) will be impacted by this administrative
13   regulation?
14
15         3. Identify each state or federal statute or federal regulation that requires or
16   authorizes the action taken by the administrative regulation.
17
18         4. Estimate the effect of this administrative regulation on the expenditures and
19   revenues of a state or local government agency (including cities, counties, fire
20   departments, or school districts) for the first full year the administrative regulation is to
21   be in effect.
22
23          (a) How much revenue will this administrative regulation generate for the state or
24   local government (including cities, counties, fire departments, or school districts) for the
25   first year?
26
27         (b) How much revenue will this administrative regulation generate for the state or
28   local government (including cities, counties, fire departments, or school districts) for
29   subsequent years?
30
31         (c) How much will it cost to administer this program for the first year?
32
33         (d) How much will it cost to administer this program for subsequent years?
34
35   Note: If specific dollar estimates cannot be determined, provide a brief narrative to
36   explain the fiscal impact of the administrative regulation.
37         Revenues (+/-):
38         Expenditures (+/-):
39         Other Explanation:
40


                                                  57
 1
 2

 3

 4 ENVIRONMENT AND PUBLIC PROTECTION CABINET

 5 DEPARTMENT OF PUBLIC PROTECTION

 6 OFFICE OF CHARITABLE GAMING

 7 (Amendment)

 8 820 KAR 1:032. Pulltab construction.

 9 RELATES TO: KRS 238.505(5), 238.545(1), (2)

10 STATUTORY AUTHORITY: KRS 238.515(2), (4), (9), 238.545(1), (2)

11 NECESSITY, FUNCTION, AND CONFORMITY: KRS 238.515(2) and (9)

12 require the Office of Charitable Gaming to establish reasonable standards for

13 the conduct of charitable gaming. KRS 238.545(2) requires the office to

14 establish standards for pulltab construction, distribution and rules of play.

15 This administrative regulation establishes standards for the construction and

16 distribution of pulltabs.

17 Section 1. Conformity of Pulltabs. (1) A licensed distributor of charitable

18 gaming supplies and equipment shall distribute in Kentucky only those

19 pulltabs conforming to the requirements of this administrative regulation.

20 (2) A licensed charitable organization shall sell to the public only those

21 pulltabs conforming to the requirements of this administrative regulation.


                                          58
1 Section 2. Pulltab Construction Standards. (1) Pulltabs shall be constructed

2 so that the concealed numbers, symbols, or winner protection features cannot




                                       59
 1 be viewed or determined from the outside of the pulltab using a high

 2 intensity lamp of up to and including 500 watts, with or without utilizing a

 3 focusing lens.

 4 (2) The deal shall be designed, printed, glued, cut and assembled in a manner

 5 to prevent determination of a winning or losing ticket without removing the

 6 tabs or otherwise uncovering the symbols or numbers as intended.

 7 (3) Each pulltab in a deal shall bear the same serial number. If a seal card is

 8 used with a pulltab deal, the seal card shall bear the same serial number as

 9 each pulltab. Only one (1) serial number shall be used in a deal. A serial

10 number used in a deal of pulltabs shall not be repeated by the same

11 manufacturer on that same manufacturer’s form number within a three (3)

12 year period.

13 (4) If the pulltab utilizes a window, the numbers or symbols on the pulltab

14 shall be fully visible in the window and shall be placed so that no part of a

15 symbol or number remains covered when the tab is removed. Displacement of

16 the symbol to the left or right in a window may be used for increased game

17 security. Additional security devices or methods, including a laminate

18 underneath a window, may be used by a manufacturer.

19 (5) It shall not be possible to distinguish winning pulltabs from losing

20 pulltabs through variations in printing graphics or colors, including those

21 involving different printing plates.




                                          60
 1 (6) All winning pulltabs shall have at least one (1) winner protection feature.

 2 In addition, all winning pulltabs that entitle a player to an instant prize of

 3 greater than twenty (20) dollars shall include an additional form of winner

 4 protection. Numeral jar tickets with colored winning numerals shall not be

 5 required to have secondary winner protection.

 6 (7) All pulltabs shall be glued on the window edges and between each

 7 window. The glue shall be of sufficient strength and type to prevent the

 8 separation or delamination of the pulltab. For banded tickets, the glue shall

 9 be of sufficient strength and quality to prevent the separation of the band

10 from the ticket.

11 (8) The window slits on each break open ticket shall be perforated on at least

12 three cut sides. The ties shall be of a sufficient thickness or strength to

13 prevent unauthorized peering under the windows and so that unauthorized

14 peering under the windows can be detected. It shall not be possible to isolate

15 winning or potential winning tickets from variations to the size or the

16 appearance of a cut edge of the pulltab comprising a particular game.

17 (9) Except as provided in subsection (10) or (11) of this section, the minimum

18 information that shall be printed on an unopened pulltab with an overall

19 area of two and five-tenths (2.5) square inches or more shall be:

20 (a) The name of the manufacturer, or its distinctive logo;

21 (b) The name of the game;

22 (c) The manufacturer's form number;




                                          61
 1 (d) The price per individual pulltab;

 2 (e) The unique minimum five (5) digit game serial number, printed on the

 3 game information side of the pulltab; and

 4 (f) The number of winners and respective winning numbers or symbols, and

 5 specific prize amounts.

 6 (10) A pulltab with an overall area of at least one and six tenths (1.6) square

 7 inches unopened but less than two and five tenths (2.5) square inches

 8 unopened shall:

 9 (a) Have printed on it, at a minimum, the information listed in subsection

10 9(a), (b), (c), (d), and (e) of this section; and

11 (b) Not be required to have the information listed in subsection (9)(f) of this

12 section.

13 (11) A pulltab with an overall area of less than one and six-tenths (1.6)

14 square inches unopened shall:

15 (a) Have printed on it, at a minimum, the information listed in subsection

16 (9)(a) and (e) of this section; and

17 (b) Not be required to have the information listed in subsection (9)(b), (c), (d),

18 or (f) of this section.

19 Section 3. Randomization. Winning pulltabs shall be distributed and mixed

20 among all other pulltabs in a deal to eliminate any pattern between deals, or

21 portions of deals. The pulltab deal shall be assembled so that the winning

22 pulltabs cannot be distinguished. Winning tickets shall be randomly




                                              62
 1 distributed throughout the deal. Banded tickets packaged in bags, rather

 2 than boxes, shall be subject to these requirements.

 3 Section 4. Packaging and Distribution. (1)(a) Each deal's package, box, or

 4 other container shall be sealed or taped at every entry point at the

 5 manufacturer’s factory with a tamper resistant seal or tape.

 6 (b) The seal or tape shall be visible under the shrink-wrap or from outside the

 7 container and shall be constructed to guarantee that, if the container is

 8 opened or otherwise tampered with, evidence of the opening or tampering will

 9 be easily detected.

10 (c) The seal or tape shall include a warning to the purchaser that the deal

11 may have been tampered with if the package, box or other container is

12 received by the purchaser with the seal or tape broken.

13 (d) If the deal is packaged in a plastic bag, the entry point shall be completely

14 heat-sealed. The warning may be imprinted in the plastic.

15 (2) A deal's serial number shall be clearly and legibly placed on:

16 (a) The outside of the deal's package, box or other container; or

17 (b) On the inside of the deal's package, box or other container if it is clearly

18 visible from the outside of the package, box, or other container.

19 (3) Manufacturers shall print on or affix to the outside of the package or

20 container of pulltabs or include inside the package or container, in bold print

21 of sufficient size to be easily read, a message that states substantially the




                                          63
 1 following: "tickets must be removed from this packaging container and

 2 thoroughly mixed prior to sale to the public."

 3 (4) Manufacturers shall include with every deal of pulltabs a bar code label

 4 that contains at a minimum the name of the manufacturer or its distinctive

 5 logo, the game form number and the game serial number. The bar code label

 6 shall be visible from the outside of the package, box, or other container.

 7 Section 5. Flares and Seal Cards. (1) Every deal of pulltabs shall contain a

 8 flare or a seal card that has printed on it, by the manufacturer, the following

 9 information:

10 (a) The name of the game;

11 (b) The manufacturer's name or logo;

12 (c) The manufacturer's form number;

13 (d) The game serial number;

14 (e) The ticket count;

15 (f) The prize structure, including a description of the number of winning

16 pulltabs by denomination, with their respective winning symbols or number

17 combinations, and amounts dedicated to the prize pool in a seal card game

18 with a cumulative, carryover or progressive prize; and

19 (g) The cost per play; and

20 (2) Every deal of pulltabs shall contain instructions on how to play the game.

21   Section 6. Cumulative Games and, Carryover or Progressive Games. (1) The

22 amount dedicated to the cumulative prize pool, or the carryover or




                                          64
 1 progressive jackpot shall be predetermined by the manufacturer and built

 2 into the payout structure for the game. The dedicated amount shall be

 3 printed by the manufacturer on either the flare or seal card for each game or

 4 on each ticket in each game.

 5 (2) All games contributing to the cumulative prize pool, or the carryover or

 6 progressive jackpot shall be of the same form number.

 7 (3) The flare or seal card for the carryover or progressive jackpot shall contain

 8 an area in which the current amount of the carryover or progressive jackpot

 9 can be posted.

10 (4) If a carryover or progressive pulltab game uses a progressive jackpot prize

11 card that is separate from the jackpot seal, the jackpot card shall contain

12 prize space for the organization to record the serial numbers of all games

13 contributing to the jackpot prize.

14 (5) If a carryover or progressive pulltab game uses a jackpot prize card that is

15 separate from the jackpot seal card, then each deal of the game must possess

16 both a seal card and a jackpot prize card that has the serial number of the

17 deal affixed to it by the manufacturer.

18 (6) In a carryover or progressive pulltab game the organization may start a

19 new jackpot card with each deal or use the original jackpot card until won.

20 The organization shall maintain each jackpot card used pursuant to 820 KAR

21 1:036 Section 2 (15).




                                          65
 1 (7) No progressive pulltab game shall be designed by the manufacturer that

 2 gives any player odds greater than a 50% chance to win the progressive

 3 jackpot.

 4   Section 7. Event Games. (1) An event game shall not contain a "last sale"

 5 feature.

 6 (2) The number of winners and the prize amounts shall be built into the

 7 payout structure for the game by the manufacturer.

 8 (3) An event ticket prize shall not exceed the individual ticket prize limit for a

 9 pulltab game.

10 (4) The prize for an event pulltab game shall not be considered a bingo prize.

11 Section 8. Multipackaged Pulltab Deals. Every package shall be played for

12 the deal to show the stated profit. Each package may contain individual

13 winners if desired. If each package contains a winner, the game shall contain

14 a method of verifying from which package the winner was sold.

15 Section 9. Tracking by Manufacturer. Every manufacturer of pulltabs shall

16 maintain records sufficient to track each deal of pulltabs, by serial number

17 and form number, from the manufacturer to the next point of sale for thirty-

18 six (36) months. The records shall be subject to inspection by office staff.

19 Section 10. Tracking by Distributor. (1) Every distributor of pulltabs shall

20 maintain records sufficient to track each deal of pulltabs, by serial number

21 and form number, from purchase by the distributor to the next point of sale




                                           66
 1 for thirty-six (36) months. The records shall be subject to inspection by office

 2 staff.

 3 (2) For sales in the Commonwealth of Kentucky, or to residents of Kentucky,

 4 the records required under this section shall be deemed sufficient if the

 5 distributor records the name of the purchaser and makes and retains a copy

 6 of the Kentucky charitable gaming license or exemption number of the

 7 purchaser at the next point of sale.

 8 (3) For sales outside the Commonwealth of Kentucky to nonresidents of

 9 Kentucky, the records required under this section shall be deemed sufficient

10 if the distributor makes and retains a copy of a state charitable gaming

11 license or a valid state identification card of the purchaser which contains the

12 name, address, date of birth, and state identification number of the purchaser

13 at the next point of sale.

14 Section 11. Requirements of Distributor Invoice. (1) Distributors selling

15 pulltabs to charitable organizations or other distributors shall provide the

16 charitable organization or other distributor with an invoice that contains, at

17 a minimum, the following information:

18 (a) The purchaser’s name, address, and license number;

19 (b) The address to which the shipment was delivered;

20 (c) The date of sale or credit;

21 (d) The conditions of the sale or credit;




                                           67
 1 (e) The quantity of pulltabs sold including the number of the deals, the name

 2 of each deal, the tickets per deal and the serial number and form number of

 3 the deal;

 4 (f) The total invoice amount;

 5 (g) The name of the person who ordered the supplies;

 6 (h) The name of the person making the delivery;

 7 (i) The date of delivery or date item was picked up for sale or credit;

 8 (j) The place or manner of delivery; and

 9 (k) The name and signature of the person taking delivery, if any.

10 (2) A distributor may deliver pulltabs to an agreed place or to an identified

11 person. An invoice not challenged within seven (7) days of delivery shall be

12 deemed accurate. Any challenge to an invoice shall be made in writing to the

13 distributor and a copy shall be sent to the office.

14 Section 12. Defects. (1) If a defect in packaging or construction of a pulltab is

15 discovered by an organization, the defect[, or replace the defective items,]

16 shall be reported to the distributor within fifteen (15) days. The distributor

17 shall correct the defect, or replace the defective items, within a reasonable

18 time, if possible.

19 (2) If the office, in consultation with the manufacturer, determines that a

20 defect actually exists, and the defect affects game security or otherwise

21 threatens public confidence in the game, the office shall, with respect to

22 pulltabs for use in Kentucky, require the manufacturer to:




                                           68
 1 (a) Recall the pulltabs affected that have not been sold at retail to licensed

 2 organizations; or

 3 (b) Issue a total recall of all affected deals.

 4 (3) In choosing and directing a particular recall in accordance with subsection

 5 (2) of this section, the office shall be guided in each circumstance by any

 6 combination of the following factors:

 7 (a) The nature of the defect;

 8 (b) Whether the defect affected game security;

 9 (c) Whether the defect affected game playability;

10 (d) Whether the defect was limited to a specific number of deals of a

11 particular form number;

12 (e) Whether the defect was easily detectable by a charitable organization;

13 (f) Whether the defect was easily detectable by members of the general

14 public;

15 (g) Whether the defect threatens public confidence in the game; or

16 (h) Whether the defect is capable of being used to adversely affect the fair

17 play of the game.

18 (4) In consultation with the manufacturer, the office shall determine a

19 specific date for the recall to be completed and whether the manufacturer is

20 required to reimburse the organization or distributor.
21




                                             69
 1   READ AND APPROVED:
 2
 3
 4
 5
 6
 7   ______________________________________        ______________________
 8   Tony S. Royalty, Executive Director           Date
 9   Office of Charitable Gaming
10
11
12
13
14   ______________________________________        ______________________
15   Timothy LeDonne, Commissioner                 Date
16   Department of Public Protection
17
18
19
20
21   ______________________________________        ______________________
22   Lloyd R. Cress, Deputy Secretary              Date
23   Environmental and Public Protection Cabinet
24   For Teresa J. Hill, Secretary
25   Environmental and Public Protection Cabinet
26
27




                                            70
 1                 PUBLIC HEARING AND PUBLIC COMMENT PERIOD
 2
 3   A public hearing on this administrative regulation shall be held on May 22, 2007 at 10:00
 4   am in the hearing room of the Office of Charitable Gaming, 132 Brighton Park
 5   Boulevard, Frankfort, Kentucky.
 6
 7   Individuals interested in being heard at this hearing shall notify this agency, in writing
 8   five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent
 9   to attend the hearing is received by that date, the hearing may be canceled. This hearing
10   is open to the public. Any person who wishes to be heard will be given an opportunity to
11   comment on the proposed administrative regulation.
12
13   A transcript of the public hearing will not be made unless a written request for a
14   transcript is made. If you do not wish to be heard at the public hearing, you may submit
15   written comments on the proposed administrative regulation. Written comments shall be
16   accepted until close of business Thursday, May 31, 2007.
17
18   Send written notification of intent to be heard at the public hearing or written comments
19   on the proposed administrative regulation to the contact person.
20
21   CONTACT PERSON:
22       Leah Cooper Boggs
23       Assistant Director of Licensing
24       Division of Licensing and Compliance
25       Office of Charitable Gaming
26       132 Brighton Park Boulevard
27       Frankfort, Kentucky 40601
28       Phone: (502) 573-5528
29       Fax: (502) 573-6625
30
31




                                                   71
 1                       REGULATORY IMPACT ANALYSIS
 2                           AND TIERING STATEMENT
 3
 4 Contact Person: Leah Cooper Boggs

 5 (1) Provide a brief summary of: 820 KAR 1:032, Pulltab Construction.

 6      (e) What this administrative regulation does:

 7      This regulation sets forth the requirements for the manufacturers and distributors

 8      regarding the construction of pulltabs.

 9      (b) The necessity of this administrative regulation:

10      This administrative regulation is needed so that the requirements for constructing

11      pulltabs are more easily understood by the regulated community.

12      (c) How does this administrative regulation conform to the content of the authorizing

13      statutes:

14      KRS 238.515(2) provides that the Office will establish and enforce reasonable

15      standards for the conduct of charitable gaming.

16      (g) How this administrative regulation currently assists or will assist in the effective

17          administration of the statutes:

18      This administrative regulation sets forth the requirements for the construction and

19      distribution of pulltabs.

20 (2) If this is an amendment to an existing administrative regulation, provide a brief

21 summary of:

22      (q) How the amendment will change this existing administrative regulation?




                                                  72
 1      The construction standards are being amended to better clarify the manufacture and

 2      play of progressive games.

 3      (r) The necessity of the amendment to this administrative regulation:

 4      This amendment is needed so clarify the confusion that currently exists between

 5      cumulative and progressive pulltab games.

 6      (s) How the amendment conforms to the content of the authorizing statutes:

 7      It conforms to the content of the authorizing statute because it assists the

 8      manufacturers in complying with the statute.

 9      (t) How the amendment will assist in the effective administration of the statutes:

10      The amendment will assist because it makes the requirements easier to understand for

11      the regulated community.

12 (3) List the type and number of individuals, businesses, organizations, or state and local

13 governments affected by this administrative regulation:

14 This regulation will affect approximately 30 manufacturers.

15 (4) Provide an analysis of how the entities identified in question (3) will be impacted by

16 either the implementation of this administrative regulation, if new, or by the change, if it

17 is an amendment, including:

18 (a) List the actions that each of the regulation entities identified in question (3) will have

19 to take to comply with this administrative regulation or amendment: The amendment

20 conforms the regulation to most industry standards. If the manufacturers have to make

21 any changes, it will be minimal.


                                                 73
 1 (b) In complying with this administrative regulation or amendment, how much will it cost

 2 each of the entities identified in question (3): Minimal.

 3 (c) As a result of compliance, what benefits will accrue to the entities identified in

 4 question (3):

 5 They will be in compliance with the statute and regulations.

 6 (5) Provide an estimate of how much it will cost to implement this regulation:

 7      (i) Initially: None.

 8      (j) On a continuing basis. None.

 9 (6) What is the source of funding to be used for the implementation and enforcement of

10 this administrative regulation? Charitable gaming is funded by the regulated community.

11 (7) Provide an assessment of whether an increase in fees or funding will be necessary to

12 implement this administrative regulation, if new, or by the change if it is an amendment.

13 No fee increase will be necessary to implement this regulation.

14 (8) State whether or not this administrative regulation establishes any fees or directly or

15 indirectly increases any fees: No.

16 (9) TIERING: Is tiering applied? Tiering is not applied because this regulation applies

17 equally to all manufacturers.

18
19
20
21
22
23
24
25

                                                 74
 1
 2                  FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
 3
 4
 5
 6   Regulation No.       820 KAR 1:032                  Contact Person: Leah Cooper Boggs
 7
 8         1. Does this administrative regulation relate to any program, service, or
 9   requirements of a state or local government (including cities, counties, fire departments,
10   or school districts)?
11         Yes ______ No __X___
12         If yes, complete questions 2-4.
13
14         2. What units, parts or divisions of state or local government (including cities,
15   counties, fire departments, or school districts) will be impacted by this administrative
16   regulation?
17
18         3. Identify each state or federal statute or federal regulation that requires or
19   authorizes the action taken by the administrative regulation.
20
21         4. Estimate the effect of this administrative regulation on the expenditures and
22   revenues of a state or local government agency (including cities, counties, fire
23   departments, or school districts) for the first full year the administrative regulation is to
24   be in effect.
25
26          (a) How much revenue will this administrative regulation generate for the state or
27   local government (including cities, counties, fire departments, or school districts) for the
28   first year?
29
30         (b) How much revenue will this administrative regulation generate for the state or
31   local government (including cities, counties, fire departments, or school districts) for
32   subsequent years?
33
34         (c) How much will it cost to administer this program for the first year?
35
36         (d) How much will it cost to administer this program for subsequent years?
37
38   Note: If specific dollar estimates cannot be determined, provide a brief narrative to
39   explain the fiscal impact of the administrative regulation.
40         Revenues (+/-):
41         Expenditures (+/-):


                                                  75
 1    Other Explanation:
 2
 3
 4
 5
 6 ENVIRONMENT AND PUBLIC PROTECTION CABINET

 7 DEPARTMENT OF PUBLIC PROTECTION

 8 OFFICE OF CHARITABLE GAMING

 9 (Amendment)

10 820 KAR 1:036. Pulltab rules of play.

11 RELATES TO: KRS 238.505(5), 238.545(1), (2)

12 STATUTORY AUTHORITY: KRS 238.515(2), (9), 238.545(1), (2)

13 NECESSITY, FUNCTION, AND CONFORMITY: KRS 238.515(2) and (9)

14 require the Office of Charitable Gaming to establish reasonable standards for

15 the conduct of charitable gaming. KRS 238.545(2) requires the office to

16 establish standards for pulltab rules of play. This administrative regulation

17 establishes standards for the play of pulltabs.

18 Section 1. General Provisions. (1) All individuals involved in the sale of

19 pulltabs shall be trained in the proper conduct of the game and control of

20 funds.

21 (2) The chairperson shall be in full charge of the licensed gaming occasion,

22 supervise and direct all volunteers, and be responsible for assuring the

23 proper receipt and recording of gaming funds.


                                           76
1


    77
 1 (3) More than one (1) charitable organization shall not conduct gaming at the

 2 same time and location as another charitable organization, except for

 3 licensed charity fundraising events.

 4 (4) Each organization’s gaming supplies shall be maintained in a location

 5 separate from another organization’s gaming supplies. This location shall

 6 also be locked and access shall be controlled.

 7 (5) Except for a charity fundraising event, a volunteer at any other charitable

 8 gaming occasion at which pulltabs are sold shall not purchase or play

 9 pulltabs at that occasion. At a charity fundraising event, a volunteer may

10 purchase or play pulltabs on a day the volunteer did not work, and from a

11 deal the volunteer did not sell.

12 (6) [House rules.] If the charitable organization has house rules concerning

13 its gaming occasion, the house rules shall:

14 (a)1. Be posted in at least two (2) conspicuous locations at the gaming

15 occasion and announced prior to the commencement of the gaming occasion;

16 or

17 2. Be listed on the program;

18 (b) Not conflict with KRS Chapter 238 or 820 KAR Chapter 1;

19 (c) Be followed; and

20 (d) Include the organization's name and license number.

21 (7) An organization shall perform an inventory and obtain permission of the

22 office before destroying a bulk amount of gaming supplies.        The gaming




                                          78
 1 supplies shall be destroyed by burning in compliance with state and federal

 2 law, shredding, destroying or defacing in some manner to prevent reuse of

 3 any pulltab, flare, prize board, seal card, bingo paper or any portion thereof.

 4 (8) When an organization ceases to game, they shall perform a final inventory

 5 and return all unused product to a distributor, donate the product to another

 6 organization with the permission of the office, or destroy the product with the

 7 permission of the office. Abandoned product shall be seized by the office and

 8 destroyed.

 9 Section 2. Playing. (1) The flare or seal card, including a progressive jackpot

10 card relating to a carryover or progressive prize, or a prize board relating to a

11 game with a cumulative prize, shall be posted by the licensed charitable

12 organization in the vicinity of the deal and in full and complete view of the

13 players while the deal is in play.

14 (2) Pulltabs shall not be sold to the public from the original packing box or

15 container. Pulltabs shall be removed from the original box or container and

16 mixed together prior to sale.

17 (3) If a deal of pulltabs is packed in more that one (1) box or container, an

18 individual   container    shall   not   designate   a   winner   or   contain     a

19 disproportionate number of winning or losing tickets. Each package, box, or

20 container shall be placed out for play at the same time unless the deal is

21 designed by the manufacturer to be played in subsets. Those subsets may be

22 placed out for play in succession.




                                           79
 1 (4) Pulltabs which have been marked, defaced, altered, tampered with,

 2 received in packaging that is not tamper-resistant, or otherwise constructed

 3 in a manner which tends to deceive the public, or affect the chances of

 4 winning or losing shall not be placed into play. The organization shall notify

 5 the Office of Charitable Gaming of the existence of these tickets in writing

 6 within fifteen (15) days.

 7 (5) Before placing a deal into play, the charitable organization shall verify

 8 that the serial number on the pulltabs within each deal match the serial

 9 number on the flare or seal card accompanying the deal by conducting a

10 random sampling of pulltabs within each deal. If the charitable organization

11 determines that serial numbers on tickets within a deal do not match the

12 serial number on the flare or seal card accompanying the deal, the

13 organization shall not place the deal into play and shall notify that

14 distributor. If the distributor does not correct the problem within thirty (30)

15 days, the organization shall notify the office in writing.

16 (6) Any licensed charitable organization which sells pulltabs from its office

17 location or from a pulltab dispenser shall comply with 820 KAR Chapter 1

18 regarding the play, proper recordkeeping and reporting of those sales. The

19 sales shall be reported on the financial [quarterly] report.

20 (7)(a) If a deal is not played to completion and there remain unsold winning

21 pulltabs, the licensed charitable organization conducting the gaming shall




                                           80
 1 sell the remaining pulltabs on the next appointed date for charitable gaming

 2 activities.

 3 (b) If no future date is anticipated, the licensed charitable organization shall

 4 consider the deal closed or completed, declare the winners and post winning

 5 numbers for fifteen (15) days with information directing the method of

 6 claiming a prize at its office location. All unsold pulltabs shall be retained as

 7 required in subsection (15) [(14)] of this section.

 8 (c) If no winning pulltabs remain in the deal, the licensed charitable

 9 organization shall consider the deal closed or completed, declare the winners,

10 and shall retain unsold pulltabs as required in subsection (15) of this section.

11 (d) A licensed charitable organization shall not complete play of a deal or a

12 seal card it did not initiate.

13 (8) A pulltab shall not be sold to the public at a price different than that

14 printed by the manufacturer of the pulltab upon the flare or seal card which

15 accompanies the deal.

16 (9) Only authorized representatives of the charitable organization conducting

17 the event at which pulltabs are sold shall verify the serial numbers and

18 winner protections for all winning pulltabs redeemed.

19 (10) If playing pulltabs that utilize a seal card, a charitable organization shall

20 not award a prize to the holder of a winning pulltab unless the serial number

21 on the ticket presented for redemption matches the serial number on the seal




                                           81
 1 card. In a progressive pulltab game, the serial number on the tickets shall be

 2 checked in accordance with Section 6 of this administrative regulation.

 3 (11) A charitable organization shall award prizes to winners of pulltabs only

 4 in accordance with the prize structure indicated on the flare or seal card

 5 accompanying the deal of tickets as designed by the manufacturer. If

 6 multiple prize structures are indicated on the flare or seal card, the

 7 charitable organization shall announce to the patrons and circle on the flare

 8 or seal card the prize structure to be awarded before placing the deal into

 9 play.

10 (12) A holder of a winning pulltab shall have fifteen (15) days to redeem the

11 winning ticket. If the prize is not claimed within fifteen (15) days, the prize

12 shall be considered unclaimed and be retained as property of the

13 organization.

14 (13) Once redeemed, the holder of a winning pulltab shall be paid no later

15 than five (5) days from the date of redemption.

16 (14) All winning pulltabs shall have the winning symbol or number defaced

17 or punched by an authorized representative of the charitable organization

18 immediately after redemption.

19 (15)(a) The charitable organization shall retain, for a period of twelve (12)

20 months, to allow auditing by the staff of the office:

21 1. All winning pulltabs with a prize value of fifty (50) dollars and above;




                                           82
 1 2. The flare from all winning pulltabs with a prize value of fifty (50) dollars

 2 and above;

 3 3. All seal cards with a prize value of fifty (50) dollars and above;

 4 4. All prize boards in cumulative games with a prize value of fifty (50) dollars

 5 and above; and

 6 5. All unsold pulltabs.

 7 (b) These records may be maintained at the gaming location.

 8 (c) The pulltabs, flares, prize boards in cumulative games, and seal cards

 9 shall be disposed of by burning, shredding, destroying or defacing in some

10 manner to prevent reuse of any pulltab, flare, prize board, or seal card or any

11 portion thereof.

12 (16) The fair market value of bingo paper, a card-minding device, or each

13 pulltab given away as a merchandise prize shall be the price that a patron

14 would have paid for the same bingo paper, card-minding device, or pulltab at

15 that gaming occasion.

16 (17)(a) If bingo paper is given away as a [promotional item or a] merchandise

17 prize, whether as a door prize or game prize, the patron shall be given a

18 voucher.

19 (b) The voucher shall be completed with:

20 1. The name, address, and phone number of the patron redeeming the

21 voucher;

22 2. The date on which it was awarded;




                                           83
 1 3. The date on which it was redeemed;

 2 4. The amount of bingo paper given in exchange for the voucher; and

 3 5. The serial number of the bingo paper.

 4 (c) Once the voucher is completed, it shall be redeemed for the bingo paper.

 5 (d) The organization shall retain the voucher with its session records.

 6 (18)(a) If a card-minding device is given away as a [promotional item or a]

 7 merchandise prize, whether as a door prize or game prize, the patron shall be

 8 given a voucher.

 9 (b) The voucher shall be completed with:

10 1. The name, address, and phone number of the patron redeeming the

11 voucher;

12 2. The date on which it was awarded;

13 3. The date on which it was redeemed; and

14 4. The number of card-minding devices and the number of faces loaded on

15 each device given in exchange for the voucher.

16 (c) Once the voucher is completed, it shall be redeemed for the card-minding

17 device.

18 (d) The organization shall retain the voucher with its session records.

19 (e) There shall be a specific button on the point of sale programmed for each

20 type of voucher involving a card-minding device.




                                          84
 1 (19)[(a)] If a pulltab is given away as a promotional item or a door prize, the

 2 amount and description of the pulltab given away shall be listed on the

 3 gaming occasion program. [the patron shall be given a voucher.

 4 (b) The voucher shall be completed with:

 5 1. The name, address, and phone number of the patron redeeming the

 6 voucher;

 7 2. The date on which it was awarded;

 8 3. The date on which it was redeemed; and

 9 4. The name, serial number, form number, and amount of the pulltabs given

10 in exchange for the voucher.

11 (c) Once the voucher is completed, it shall be redeemed for the pulltabs.

12 (d) The organization shall retain the voucher with its session records.]

13 (20)[(a)] If a pulltab is given away as a bingo prize, the person in charge of

14 bingo payouts shall purchase the pulltabs from the pulltab manager by

15 transfer of cash from bingo payout to pulltab sales and it shall be recorded as

16 a sale on the session records. [complete a voucher.

17 (b) The voucher shall include:

18 1. The name and serial number of the pulltab game and the number of

19 pulltabs awarded; and

20 2. The printed name and signature of the person in charge of bingo payouts.

21 (c) The organization shall retain the voucher with its pulltab receipt records.]

22 (21) Vouchers shall be redeemed on the same day as awarded.




                                          85
 1 Section 3. Jar Tickets. Jar tickets shall be played and prizes awarded as

 2 stated on the flare received with each deal.

 3 Section 4. Seal Card Games. (1) The organization shall post the seal card for

 4 the deal in play at the location of the seal game while the deal is in play.

 5 (2) If a deal with a seal card is not completed during a gaming occasion, the

 6 organization shall require the patrons with holders to sign the seal card and

 7 provide a means of contacting them when the winner is declared.

 8 (3)(a) The seal for the deal shall be broken or torn open in plain view of all

 9 persons present when:

10 1. All tickets from a deal have been sold;

11 2. All the winning tickets from a deal have been sold;

12 3. All the lines on the sign-up card have been filled; [or]

13 4. The deal has been closed, because no future date is anticipated; or

14 5. As instructed by the game as designed by the manufacturer.

15 (b) Each winning combination, [the specific form number,] the name of the

16 game, and the serial number of the deal shall be announced and posted at the

17 location of the game.

18 (c) The date the seal tab was opened shall be recorded on the seal card.

19 Section 5. "Last Sale" Pulltabs. "Last Sale" pulltabs shall only be sold by an

20 organization at its office location and not during a bingo session.

21 Section 6. Seal Card Games with Carry Over or Progressive Prizes. (1) The

22 prize pool for a progressive pulltab game shall be established only through




                                           86
 1 the play of deals of the same game which bear a manufacturer’s form number

 2 identical to the form number of any previously-played deals contributing to

 3 the prize pool.

 4 (2) Before placing a deal into play, the charitable organization shall verify

 5 that the serial number on the pulltabs within each deal match the serial

 6 number on the flare or seal card accompanying the deal by conducting a

 7 random sampling of pulltabs within each deal. The serial number on the

 8 tickets may not match the serial number on the progressive pulltab jackpot

 9 card if the deal is the second or subsequent deal played in the progressive

10 game and one (1) progressive jackpot card is used for more than one (1) deal.

11 (3) After a progressive pulltab game has been started, it shall remain in play

12 continuously until the progressive jackpot prize is determined. If the game is

13 begun at a bingo session, it shall be offered at each succeeding bingo session

14 of the licensee. If the game is begun at the office location, it shall be offered

15 on each succeeding day their office is open.

16 (4) The seal card for each deal in a progressive game shall show, in addition

17 to all other information required for flares and seal cards, the amount

18 dedicated to the progressive jackpot prize pool.

19 (5) Every seal card for each deal that has been played or is being played in

20 the course of a progressive pulltab game, together with any progressive

21 jackpot card, shall be displayed at all times while the game is in play, until

22 the progressive jackpot prize is won.




                                           87
 1 (6) The serial numbers for each deal contributing to a carryover or

 2 progressive jackpot prize shall be recorded in the gaming occasion records.

 3 (7) A progressive or carryover pulltab game shall be played in accord with the

 4 manufacturer's specifications for the determination of a winner.

 5 (8) As long as money remains in the jackpot prize pool, the organization shall

 6 continue to play the same games with the same form number.

 7 (9) If a game bearing the same manufacturer's form number is no longer

 8 available, the organization shall contact the office for instructions on how to

 9 proceed.

10 (10)(a) If a progressive prize remains unpaid, a licensed charitable

11 organization shall display, in full and complete view of the players and at all

12 times either:

13 1. The jackpot card being played and each seal card contributing to the

14 jackpot prize pool; or

15 2. A legible poster identifying by name, serial number, and form number each

16 deal of pulltabs contributing an amount to the jackpot prize pool.

17 (b) The poster or seal cards shall remain displayed during bingo sessions or

18 other charitable gaming activities conducted by the organization until the

19 expiration of fifteen (15) calendar days after the organization awards the

20 prize.

21 (c) If a progressive jackpot prize is not awarded, the organization shall

22 continue to display the poster or seal cards during bingo sessions or other




                                         88
 1 charitable gaming activities it conducts for at least fifteen (15) calendar days

 2 after the date the organization considers the game closed and retains the

 3 prize as its property.

 4 (d) If a progressive prize remains unpaid, a licensed charitable organization

 5 shall display, in full and complete view of the players and at all times the

 6 current value of the jackpot.

 7 (11) An organization shall not award the jackpot prize in a progressive

 8 pulltab game unless the serial number and form number on the winning

 9 ticket matches the serial number on a seal card from a deal of tickets which

10 contributed to the jackpot prize.

11 (12) For jackpot prizes of $250 or over, the [An] organization shall attach a

12 copy of the valid state identification card which contains the name, address,

13 date of birth, and state identification number of the winner to the jackpot

14 prize card.

15 (13) The jackpot prize in a progressive game may accrue in excess of $2,400

16 dollars. An individual jackpot prize shall not be paid in excess of $2,400. The

17 amount of the current jackpot, the amount contributed, the payouts made,

18 and the jackpot carried forward to the next session at each gaming occasion

19 shall be recorded in the gaming occasion record.

20 (14) Any advertisement regarding the progressive jackpot may state the total

21 amount in the jackpot prize pool as long as it also includes the statement that

22 the individual payout shall not exceed $2,400.




                                          89
 1 (15) A licensed charitable organization shall report to the office concerning its

 2 play of seal card games with a progressive prize on the financial [quarterly]

 3 report.

 4 (16) The jackpot prize pool in a progressive game shall be considered an

 5 adjusted gross receipt that shall be deposited within two (2) business days of

 6 the gaming occasion.

 7 Section 7. Seal Card Games with Cumulative Prizes. (1) The prize pool for a

 8 cumulative pulltab game shall be established only through the play of deals

 9 of the same game which bear a manufacturer's form number identical to the

10 form number of any previously played deals contributing to the prize pool.

11 (2) Before placing a deal into play, the charitable organization shall verify

12 that the serial number on the pulltabs within each deal match the serial

13 number on the flare, prize board, or seal card accompanying the deal by

14 conducting a random sampling of pulltabs within each deal.

15 (3) After a cumulative pulltab game has been started, it shall remain in play

16 continuously until the cumulative prize pool has been awarded. If such game

17 is begun at a bingo session, it shall be offered at each succeeding bingo

18 session of the licensee. If the game is begun at the office location, it shall be

19 offered on each succeeding day their office is open.

20 (4) Prizes shall be offered and awarded only in accord with the

21 manufacturer’s predesignated prize structure for the game.




                                          90
 1 (5) The seal card for each deal in a cumulative pulltab game shall show, in

 2 addition to all other information required for flares and seal cards, the

 3 amount dedicated to the cumulative prize pool.

 4 (6) Every seal card for each deal that has been played or is being played in

 5 the course of a cumulative pulltab game, together with any prize board, shall

 6 be displayed at all times while the game is in play, until the cumulative prize

 7 pool is awarded.

 8 (7) The serial numbers for each deal contributing to a cumulative prize pool

 9 shall be recorded in the gaming occasion records.

10 (8) An organization shall not award the cumulative prize pool unless the

11 serial number on the winning ticket matches the serial number on a seal card

12 from a deal of tickets which contributed to the cumulative prize board.

13 (9) A cumulative prize board shall not contain prizes totaling in excess of

14 $2,400.

15 (10) A licensed charitable organization shall report to the Office concerning

16 its play of seal card games of cumulative games on the financial [quarterly]

17 report.




                                         91
 1

 2 READ AND APPROVED:

 3
 4
 5
 6
 7
 8   ______________________________________        ______________________
 9   Tony S. Royalty, Executive Director           Date
10   Office of Charitable Gaming
11
12
13
14
15   ______________________________________        ______________________
16   Timothy LeDonne, Commissioner                 Date
17   Department of Public Protection
18
19
20
21
22   ______________________________________        ______________________
23   Lloyd R. Cress, Deputy Secretary              Date
24   Environmental and Public Protection Cabinet
25   For Teresa J. Hill, Secretary
26   Environmental and Public Protection Cabinet
27
28




                                            92
 1                 PUBLIC HEARING AND PUBLIC COMMENT PERIOD
 2
 3   A public hearing on this administrative regulation shall be held on May 22, 2007 at 10:00
 4   am in the hearing room of the Office of Charitable Gaming, 132 Brighton Park
 5   Boulevard, Frankfort, Kentucky.
 6
 7   Individuals interested in being heard at this hearing shall notify this agency, in writing
 8   five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent
 9   to attend the hearing is received by that date, the hearing may be canceled. This hearing
10   is open to the public. Any person who wishes to be heard will be given an opportunity to
11   comment on the proposed administrative regulation.
12
13   A transcript of the public hearing will not be made unless a written request for a
14   transcript is made. If you do not wish to be heard at the public hearing, you may submit
15   written comments on the proposed administrative regulation. Written comments shall be
16   accepted until close of business Thursday, May 31, 2007.
17
18   Send written notification of intent to be heard at the public hearing or written comments
19   on the proposed administrative regulation to the contact person.
20
21   CONTACT PERSON:
22       Leah Cooper Boggs
23       Assistant Director of Licensing
24       Division of Licensing and Compliance
25       Office of Charitable Gaming
26       132 Brighton Park Boulevard
27       Frankfort, Kentucky 40601
28       Phone: (502) 573-5528
29       Fax: (502) 573-6625
30
31




                                                  93
 1                       REGULATORY IMPACT ANALYSIS
 2                           AND TIERING STATEMENT
 3
 4 Contact Person: Leah Cooper Boggs

 5 (5) Provide a brief summary of: 820 KAR 1:036, Pulltab Rules of Play.

 6      (f) What this administrative regulation does:

 7      This regulation establishes the rules of play for pulltabs.

 8      (b) The necessity of this administrative regulation:

 9      This regulation is needed to establish the rules of play for pulltabs.

10      (c) How does this administrative regulation conform to the content of the authorizing

11      statutes:

12      KRS 238.515(2) provides that the Office will establish and enforce reasonable

13      standards for the conduct of charitable gaming.

14      (h) How this administrative regulation currently assists or will assist in the effective

15          administration of the statutes:

16      This administrative regulation sets forth the requirements for playing pulltabs.

17 (6) If this is an amendment to an existing administrative regulation, provide a brief

18      summary of:

19      (u) How the amendment will change this existing administrative regulation?

20      It clarifies the rules for the play of progressive and cumulative games.

21      (b) The necessity of the amendment to this administrative regulation:




                                                 94
 1      The amendment is necessary to avoid the confusion in the community regarding the

 2      play of these games.

 3      (c) How the amendment conforms to the content of the authorizing statutes:

 4      It conforms to the content of the authorizing statute because it explains how to

 5      correctly play pulltabs.

 6      (d) How the amendment will assist in the effective administration of the statutes:

 7      The amendment will assist because it makes the requirements easier to understand for

 8      the regulated community.

 9 (7) List the type and number of individuals, businesses, organizations, or state and local

10      governments affected by this administrative regulation:

11 This regulation will affect approximately 700 organizations.

12 (4) Provide an analysis of how the entities identified in question (3) will be impacted by

13 either the implementation of this administrative regulation, if new, or by the change, if it

14 is an amendment, including:

15 (a) List the actions that each of the regulation entities identified in question (3) will have

16 to take to comply with this administrative regulation or amendment: The organizations

17 will have to obtain the new regulation.

18 (b) In complying with this administrative regulation or amendment, how much will it cost

19 each of the entities identified in question (3): None.

20 (c) As a result of compliance, what benefits will accrue to the entities identified in

21 question (3):


                                                95
 1 They will be able to play these types of games with a better understanding.

 2 (5) Provide an estimate of how much it will cost to implement this regulation:

 3      (k) Initially: None.

 4      (l) On a continuing basis. None.

 5 (6) What is the source of funding to be used for the implementation and enforcement of

 6 this administrative regulation? Charitable gaming is funded by the regulated community.

 7 (7) Provide an assessment of whether an increase in fees or funding will be necessary to

 8 implement this administrative regulation, if new, or by the change if it is an amendment.

 9 No fee increase will be necessary to implement this regulation.

10 (8) State whether or not this administrative regulation establishes any fees or directly or

11 indirectly increases any fees: No.

12 (9) TIERING: Is tiering applied? Tiering is not applied because this regulation applies

13 equally to all organizations.

14




                                                96
 1
 2
 3                  FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
 4
 5
 6   Regulation No. 820 KAR 1:036                        Contact Person: Leah Cooper Boggs
 7
 8         1. Does this administrative regulation relate to any program, service, or
 9   requirements of a state or local government (including cities, counties, fire departments,
10   or school districts)?
11         Yes ______ No __X___
12         If yes, complete questions 2-4.
13
14         2. What units, parts or divisions of state or local government (including cities,
15   counties, fire departments, or school districts) will be impacted by this administrative
16   regulation?
17
18         3. Identify each state or federal statute or federal regulation that requires or
19   authorizes the action taken by the administrative regulation.
20
21         4. Estimate the effect of this administrative regulation on the expenditures and
22   revenues of a state or local government agency (including cities, counties, fire
23   departments, or school districts) for the first full year the administrative regulation is to
24   be in effect.
25
26          (a) How much revenue will this administrative regulation generate for the state or
27   local government (including cities, counties, fire departments, or school districts) for the
28   first year?
29
30         (b) How much revenue will this administrative regulation generate for the state or
31   local government (including cities, counties, fire departments, or school districts) for
32   subsequent years?
33
34         (c) How much will it cost to administer this program for the first year?
35
36         (d) How much will it cost to administer this program for subsequent years?
37
38   Note: If specific dollar estimates cannot be determined, provide a brief narrative to
39   explain the fiscal impact of the administrative regulation.
40         Revenues (+/-):
41         Expenditures (+/-):


                                                 97
 1       Other Explanation:
 2
 3
 4

 5 ENVIRONMENT AND PUBLIC PROTECTION CABINET

 6 DEPARTMENT OF PUBLIC PROTECTION

 7 OFFICE OF CHARITABLE GAMING

 8 (Amendment)

 9 820 KAR 1:046. Bingo rules of play.

10 RELATES TO: KRS 238.545

11 STATUTORY AUTHORITY: KRS 238.515(2), (9), 238.545(1)(b)

12 NECESSITY, FUNCTION, AND CONFORMITY: KRS 238.515(9) authorizes

13 the office to promulgate administrative regulations necessary to carry out the

14 purposes and intent of KRS Chapter 238. KRS 238.515(2) authorizes the

15 office to establish charitable gaming standards. KRS 238.545(1)(b) requires

16 the office to promulgate an administrative regulation concerning use and

17 control of card-minding devices. This administrative regulation establishes

18 standards for the conduct of play of bingo.

19 Section 1. General Provisions. (1) All individuals involved in the conduct of

20 bingo shall be trained in the proper conduct of the game and the control of

21 funds.




                                         98
1 (2) The chairperson shall be in full charge of the licensed gaming occasion,

2 supervise and direct all volunteers, and be responsible for assuring the

4 proper receipt and recording of gaming funds.
3




                                      99
 1 (3) Except for Braille cards intended for use by blind players, bingo paper or

 2 card minding devices shall not be reserved by the charitable organization for

 3 any player. Legally-blind players may use their own cards if the licensee does

 4 not make Braille cards available. In accordance with KRS 238.505(15),

 5 Braille cards shall not be considered gaming supplies and equipment and

 6 may be purchased from ordinary sources of supply.

 7 (4) More than one (1) charitable organization shall not conduct gaming at the

 8 same time and location as another charitable organization except for licensed

 9 charity fundraising events.

10 (5) If a bingo session is cancelled once it is commenced, an organization may

11 refund a portion of the purchase price of the bingo paper or card-minding

12 device. An organization shall not continue the session or award the prizes at

13 a later date.

14 (6) Each organization’s gaming supplies shall be maintained in a location

15 separate from another organization’s gaming supplies. This location shall be

16 locked and access shall be controlled. An extra set of bingo balls shall not be

17 stored at the caller’s stand but shall be stored with the other charitable

18 gaming supplies.

19 (7) A volunteer at a charitable gaming occasion at which bingo cards or faces

20 are sold shall not purchase or play bingo cards or faces at that occasion

21 unless the volunteer's duties are complete for the occasion. Once a volunteer




                                         100
 1 starts playing bingo, that person shall not volunteer for the remainder of that

 2 gaming occasion.

 3 (8) [House rules.] If the charitable organization has house rules concerning

 4 its bingo session, the house rules shall:

 5 (a) 1. Be posted in at least two (2) conspicuous locations at the gaming

 6 occasion and announced prior to the commencement of the gaming occasion;

 7 or

 8 2. Be listed on the program;

 9 (b) [Be kept with the organization's session records;

10 (c)] Not conflict with KRS Chapter 238 or 820 KAR Chapter 1;

11 (c) [(d)] Be followed; and

12 (d) [(e)] Include the organization's name and license number.

13 (9) Every ball in the bingo machine or other selection device shall be placed

14 out for verification at the commencement and at the completion of each bingo

15 session.

16 (10) Individual bingo paper sheets in a pack shall not be sold as individual

17 bingo paper sheets.

18 (11) The organization shall buy a complete set of paper and use that paper

19 before starting another set.

20 (12) A charitable organization shall not separate faces on one (1) paper sheet

21 or any paper sheets in a pack prior to play.




                                          101
 1 (13) The price for each type of bingo sheet, pack, or package shall be listed on

 2 the bingo program.

 3 (14) Bingo paper sheets, bingo paper packs, and bingo paper packages shall

 4 be used during the bingo session for which they were purchased. An

 5 organization shall not allow a player to carry over purchased, but unused,

 6 bingo paper sheets, bingo paper sheet packs, or bingo paper packages to a

 7 subsequent bingo session.

 8 (15) An organization shall not allow a player to play bingo paper that was not

 9 purchased at that session, except for Braille cards as provided in subsection

10 (3) of this section.

11 (16) The organization shall not duplicate or otherwise make copies of bingo

12 paper.

13 (17) If an organization sells the same paper packs or paper sheets for

14 different prices, the packs or sheets shall be distinguishable by serial number

15 [and color or border].

16 (18) An organization shall not sell bingo paper in a bundle. [If an

17 organization bundles bingo paper faces, it shall record the serial number and

18 the number of packs sold for each type of pack that makes up the bundle.]

19 (19) If an organization sells a bingo paper as a package it becomes a unique

20 item with a certain price and the items in the package shall not be sold

21 individually unless a separate serial number is used.




                                         102
 1 (20) If an organization games in back to back sessions, it may pre-sell paper

 2 for the second session as long as a different set of paper is used with a

 3 different color or border and a different serial number. The money from the

 4 pre-selling of paper shall be deposited with the second session receipts and

 5 the sales recorded on the second session gaming occasion records. If the price

 6 for the pre-sold paper is discounted, the organization shall list this discount

 7 on the gaming occasion program and use a third set of paper with a different

 8 serial number.

 9 (21) An organization shall perform an inventory and obtain permission of the

10 office before destroying a bulk amount of gaming supplies.          The gaming

11 supplies shall be destroyed by burning in compliance with state and federal

12 law, shredding, destroying or defacing in some manner to prevent reuse of

13 any pulltab, flare, prize board, seal card, bingo paper or any portion thereof.

14 (22) When an organization ceases to game, they shall perform a final

15 inventory and return all unused product to a distributor, donate the product

16 to another organization with the permission of the office, or destroy the

17 product with the permission of the office. Abandoned gaming supplies shall

18 be seized by the office and destroyed.

19 Section 2. Playing. (1) All players shall be physically present at the location

20 where the bingo game is held in order to play the game or claim a prize

21 offered.




                                            103
 1 (2) The bingo session shall start when the balls are verified. The balls shall

 2 be verified before the [first ball is selected including the] pickle jar, bonanza

 3 ball, or hot ball is selected and called.

 4 (3) Before selecting or calling the first number in a game, the bingo caller

 5 shall call out the amount of the game prize to be awarded.

 6 (4) Before selecting and calling the first number in a game, the bingo caller

 7 shall announce the pattern or arrangement of squares to be covered to win

 8 the game. This information shall also be listed in the bingo program.

 9 (5) After selecting each number, the bingo caller shall:

10 (a) Clearly announce the number;

11 (b) Display the ball or other device used in a manner allowing the players to

12 see the number, except displaying the ball shall not be required during a

13 speed game;

14 (c) Cause the ball or other device to be placed in a ball tray or other device so

15 as to prevent it from being placed back into the selection pool; and

16 (d) Enter each letter and number called on a flashboard or similar device for

17 player viewing.

18 (6) A winner shall be determined when the preannounced pattern of squares

19 is covered by a player on a card.

20 (7) It shall be the player’s responsibility to notify the game operator or caller

21 that the player has a winning bingo combination as announced.




                                           104
 1 Section 3. Pickle Jar, Bonanza Ball, or Hot Ball. If the organization gives an

 2 additional prize if a patron wins on a certain number, the rules of play,

 3 including how it is awarded at the maximum payout, and cost to enter shall

 4 be listed on the bingo program. These numbers may be selected and posted

 5 before the first game is called.

 6 Section 4. Break Open Bingo. (1) A break-open bingo game shall begin when,

 7 in the presence of players attending the bingo occasion, the organization calls

 8 and posts, either manually or by use of a flashboard, a predetermined

 9 quantity of randomly selected bingo numbers from a selection device or a

10 separate bingo number container. If a flashboard is used, these [These]

11 numbers shall be posted on a separate board than the regular bingo board

12 unless the regular board is capable of keeping track of these numbers

13 separately. The balls shall then be placed back into the selection pool until

14 the game is played on the program.

15 (2) Sealed bingo paper sheets for a break open game may be sold throughout

16 the bingo occasion. Additional bingo paper sheets for a break open game shall

17 not be sold after the organization resumes calling letters and numbers when

18 the game is played on the program.

19 (3) An organization may allow players to trade break open bingo faces for new

20 faces.

21 (4) If the charitable organization allows players to trade break open bingo

22 faces for new faces, two (2) sets of the game faces shall be maintained. One




                                         105
 1 (1) set shall be known as the "original set" and shall be of a different serial

 2 number than the second set, known as the "trade in" set.

 3 (5) An organization shall list on the bingo program the price of the original

 4 set and the trade-in set.

 5 Section 5. Player Pick. If the charitable organization offers a Player Pick

 6 game, the requirements in this section shall apply. (1) A player shall select

 7 numbers between one (1) and seventy-five (75). A player shall not select more

 8 than five (5) numbers for each column. The player may allow the machine to

 9 select the numbers.

10 (2) Duplicate numbers shall not be played on a purchased face. If duplicate

11 numbers appear on a face, the card shall be void.

12 (3) Once selected, the machine shall print a face with the selected numbers.

13 (4) The faces shall conform to the construction and randomization standards

14 set forth in 820 KAR 1:042.

15 (5) The price of each face and the amount of numbers that will be chosen

16 shall be listed on the bingo program.

17 (6) The numbers shall be daubed as the balls are called when the game is

18 played as listed on the bingo program.

19 (7) A player shall win if he or she is the first person to cover the numbers.

20 Section 6. Continuation Games. (1) Multiple patterns may be played on one

21 (1) bingo face. Each portion of the continuation game shall be considered a




                                           106
 1 single bingo game, even though the bingo balls shall not be returned to the

 2 selection pool after a winner has been determined and verified.

 3 (2) Each winning pattern shall be verified independently.

 4 Section 7. Progressive Bingo Games. (1)(a) Progressive games or prizes

 5 connected to a bingo game or conditioned on winning a bingo game shall be

 6 permitted only if prizes awarded on progressive games are included in the

 7 prize limit established in KRS 238.545(1) regardless of the method by which

 8 a player is eligible to participate.

 9 (b) The licensed charitable organization shall be responsible for ensuring that

10 the value of any progressive bingo game prize, when added to the values of

11 the other prizes of the same date or occasion, does not exceed the $5,000

12 limit.

13 (c) All receipts on progressive bingo games shall be reported to the office as

14 gross receipts for the date collected pursuant to KRS 238.550.

15 (2) Once a progressive bingo game has been started, the game shall be played

16 in the same manner at every occasion until the prize is awarded. The jackpot

17 prize shall be offered at each successive bingo occasion for that charitable

18 organization until the jackpot prize has been won.

19 Section 8. Winner Verification and Registration. (1) Manufacturers of bingo

20 paper shall make available for purchase a verification book or other

21 verification system for all paper manufactured.




                                          107
 1 (2) The charitable organization conducting a bingo game shall use a reliable

 2 verification system that corresponds with the set of paper in play.

 3 (3) When a player declares a winning bingo, the following steps shall be

 4 followed for winner verification:

 5 (a) The game shall be stopped before the next number is called. If the next

 6 number has been selected, it shall be secured to ensure that if the declared

 7 "bingo" is invalid, the game will continue.

 8 (b) 1. If an electronic verifier or verifier book is used, a volunteer for the

 9 charitable organization shall:

10 a. Show the winning face to a neutral player, who shall be a player other

11 than the winner; and

12 b. Call back the perm number while in front of the neutral player.

13 2. If any other verification system is used, a volunteer for the charitable

14 organization shall:

15 a. Show the winning face to a neutral player, who shall be a player other

16 than the winner; and

17 b. Call back the winning combination while in front of the neutral player.

18 (4) The caller shall ask at least twice if there are any other winners before

19 announcing the close of the game. If playing a continuation game, the caller

20 shall ask at least twice if there are any other winners before the close of that

21 part of the game.




                                         108
 1 (5) If more than one (1) winner is declared in a bingo game, the following

 2 method of awarding prizes shall apply:

 3 (a) Cash prizes shall be divided equally among the verified winners; and

 4 (b) If the prize is something other than cash and cannot be divided among

 5 winners, prizes of equal proportionate value shall be awarded.

 6 Section 9. Prizes. (1) If a merchandise prize or discount is available to

 7 everyone, it shall be considered a promotional item and counted as an

 8 expense.

 9 (2) If a merchandise prize or discount is not available to everyone, it shall be

10 included in the prize limit established in KRS 238.545(1) at its fair market

11 value. It shall be included in expenses for purchased prizes at actual cost.

12 (3) The fair market value of bingo paper, a card-minding device, or pulltabs

13 given away as a merchandise prize shall be the price that a patron would

14 have paid for the same bingo paper, card-minding device, or pulltab at that

15 gaming occasion.

16 (4)(a) If bingo paper is given away as [a promotional item,] a door prize[,] or a

17 bingo game prize, the patron shall be given a voucher.

18 (b) The voucher shall be completed with:

19 1. The name, address, and phone number of the patron redeeming the

20 voucher;

21 2. The date on which it was awarded;

22 3. The date on which it was redeemed;




                                          109
 1 4. The amount of paper given in exchange for the voucher; and

 2 5. The serial number of the bingo paper.

 3 (c) Once the voucher is completed, it shall be redeemed for the bingo paper.

 4 (d) The organization shall retain the voucher with its session records.

 5 (5) If bingo paper is given away as a promotional item, the description of the

 6 paper shall be listed on the program with “free” or “promotional” listed as the

 7 price. If the organization also sells that type of paper, a separate set of paper

 8 with a separate serial number shall be used.

 9 (6)(a) [(5)(a)] If a card-minding device is given away as a [promotional item,]

10 a door prize[,] or a bingo game prize, the patron shall be given a voucher.

11 (b) The voucher shall be completed with:

12 1. The name, address, and phone number of the patron redeeming the

13 voucher;

14 2. The date on which it was awarded;

15 3. The date on which it was redeemed; and

16 4. The number of card-minding devices and the number of faces loaded on

17 each device given in exchange for the voucher.

18 (c) Once the voucher is completed, it shall be redeemed for the card-minding

19 device.

20 (d) The organization shall retain the voucher with its session records.

21 (e) There shall be a specific button on the point of sale programmed for each

22 type of voucher and package involving a card-minding device.




                                          110
 1 (7) If a card-minding device is given away as a promotional item, the

 2 description of the promotional package shall be listed on the program with

 3 “free” or “promotional” listed as the price. The point of sale shall have a

 4 specifically described discount button for this promotion.

 5 (8) If an organization offers coupons for bingo paper or a card-minding device,

 6 a voucher shall be completed when the coupon is redeemed and the coupon

 7 and the voucher shall be retained with the gaming occasion records.

 8 (9) If the organization sells gift certificates for bingo paper or a card-minding

 9 device, the receipts for the sale shall be counted as gaming receipts on the

10 day they are received. When the gift certificate is redeemed, a voucher shall

11 be completed and the gift certificate and the voucher shall be retained with

12 the gaming occasion records.

13 (10) [(6)(a)] If a pulltab is given away as a bingo prize, the person in charge of

14 bingo payouts shall purchase the pulltabs from the pulltab manager by

15 transfer of cash from bingo payout to pulltab sales and it shall be recorded as

16 a sale on the session records. [complete a voucher.

17 (b) The voucher shall include:

18 1. The name and serial number of the pulltab game and the number of

19 pulltabs awarded; and

20 2. The printed name and signature of the person in charge of bingo payouts.

21 (c) The organization shall retain the voucher with its pulltab receipt records.]




                                          111
1 (11) [(7)] Each bingo winner shall be determined and every prize shall be

2 awarded and delivered on the same day on which the bingo was conducted.

3 (12) [(8)] Vouchers shall be redeemed on the same day as awarded.
4




                                      112
 1   READ AND APPROVED:
 2
 3
 4
 5
 6
 7   ______________________________________          ______________________
 8   Tony S. Royalty, Executive Director             Date
 9   Office of Charitable Gaming
10
11
12
13
14   ______________________________________          ______________________
15   Timothy LeDonne, Commissioner                   Date
16   Department of Public Protection
17
18
19
20
21   ______________________________________          ______________________
22   Lloyd R. Cress, Deputy Secretary                Date
23   Environmental and Public Protection Cabinet
24   For Teresa J. Hill, Secretary
25   Environmental and Public Protection Cabinet
26
27




                                               113
 1                    PUBLIC HEARING AND PUBLIC COMMENT PERIOD
 2
 3   A public hearing on this administrative regulation shall be held on May 22, 2007 at 10:00 am in
 4   the hearing room of the Office of Charitable Gaming, 132 Brighton Park Boulevard, Frankfort,
 5   Kentucky.
 6
 7   Individuals interested in being heard at this hearing shall notify this agency, in writing five (5)
 8   workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the
 9   hearing is received by that date, the hearing may be canceled. This hearing is open to the public.
10   Any person who wishes to be heard will be given an opportunity to comment on the proposed
11   administrative regulation.
12
13   A transcript of the public hearing will not be made unless a written request for a transcript is
14   made. If you do not wish to be heard at the public hearing, you may submit written comments
15   on the proposed administrative regulation. Written comments shall be accepted until close of
16   business Thursday, May 31, 2007.
17
18   Send written notification of intent to be heard at the public hearing or written comments on the
19   proposed administrative regulation to the contact person.
20
21   CONTACT PERSON:
22       Leah Cooper Boggs
23       Assistant Director of Licensing
24       Division of Licensing and Compliance
25       Office of Charitable Gaming
26       132 Brighton Park Boulevard
27       Frankfort, Kentucky 40601
28       Phone: (502) 573-5528
29       Fax: (502) 573-6625
30
31




                                                     114
 1                           REGULATORY IMPACT ANALYSIS
 2                              AND TIERING STATEMENT
 3
 4 Contact Person: Leah Cooper Boggs

 5 (8) Provide a brief summary of: 820 KAR 1:046, Bingo Rules of Play.

 6      (g) What this administrative regulation does:

 7      This regulation establishes the rules of play for bingo.

 8      (b) The necessity of this administrative regulation:

 9      This regulation is needed to establish the rules of play for bingo.

10      (c) How does this administrative regulation conform to the content of the authorizing

11      statutes:

12      KRS 238.515(2) provides that the Office will establish and enforce reasonable standards for

13      the conduct of charitable gaming.

14      (i) How this administrative regulation currently assists or will assist in the effective

15          administration of the statutes:

16      This administrative regulation sets forth the requirements for playing bingo.

17 (9) If this is an amendment to an existing administrative regulation, provide a brief summary of:

18      (v) How the amendment will change this existing administrative regulation?

19      This amendment clarifies some confusion on how to sale and account for bingo paper. (b) It

20      also makes it easier for the organizations to do promotions regarding bingo paper. The

21      necessity of the amendment to this administrative regulation:




                                                     115
 1      The amendment is necessary to ease some of the requirements on the organizations for the

 2      sale of and accounting for bingo paper.

 3      (c) How the amendment conforms to the content of the authorizing statutes:

 4      It conforms to the content of the authorizing statute because it explains how to correctly sale,

 5      play, and account for bingo paper.

 6      (d) How the amendment will assist in the effective administration of the statutes:

 7      The amendment will assist because it makes it easier to use bingo paper as a promotion.

 8 (10)     List the type and number of individuals, businesses, organizations, or state and local

 9      governments affected by this administrative regulation:

10 This regulation will affect approximately 700 organizations.

11 (4) Provide an analysis of how the entities identified in question (3) will be impacted by either

12 the implementation of this administrative regulation, if new, or by the change, if it is an

13 amendment, including:

14 (a) List the actions that each of the regulation entities identified in question (3) will have to take

15 to comply with this administrative regulation or amendment: The organizations will have to

16 obtain the new regulation.

17 (b) In complying with this administrative regulation or amendment, how much will it cost each

18 of the entities identified in question (3): None.

19 (c) As a result of compliance, what benefits will accrue to the entities identified in question (3):

20 The requirements for selling and accounting for bingo paper will be easier.

21 (5) Provide an estimate of how much it will cost to implement this regulation:


                                                    116
 1      (m)Initially: None.

 2      (n) On a continuing basis. None.

 3 (6) What is the source of funding to be used for the implementation and enforcement of this

 4 administrative regulation? Charitable gaming is funded by the regulated community.

 5 (7) Provide an assessment of whether an increase in fees or funding will be necessary to

 6 implement this administrative regulation, if new, or by the change if it is an amendment.

 7 No fee increase will be necessary to implement this regulation.

 8 (8) State whether or not this administrative regulation establishes any fees or directly or

 9 indirectly increases any fees: No.

10 (9) TIERING: Is tiering applied? Tiering is not applied because this regulation applies equally to

11 all organizations.

12
13




                                                    117
 1                      FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
 2
 3
 4   Regulation No. 820 KAR 1:046                          Contact Person: Leah Cooper Boggs
 5
 6          1. Does this administrative regulation relate to any program, service, or requirements of a
 7   state or local government (including cities, counties, fire departments, or school districts)?
 8          Yes ______ No __X___
 9          If yes, complete questions 2-4.
10
11          2. What units, parts or divisions of state or local government (including cities, counties,
12   fire departments, or school districts) will be impacted by this administrative regulation?
13
14         3. Identify each state or federal statute or federal regulation that requires or authorizes the
15   action taken by the administrative regulation.
16
17          4. Estimate the effect of this administrative regulation on the expenditures and revenues of
18   a state or local government agency (including cities, counties, fire departments, or school
19   districts) for the first full year the administrative regulation is to be in effect.
20
21        (a) How much revenue will this administrative regulation generate for the state or local
22   government (including cities, counties, fire departments, or school districts) for the first year?
23
24         (b) How much revenue will this administrative regulation generate for the state or local
25   government (including cities, counties, fire departments, or school districts) for subsequent
26   years?
27
28         (c) How much will it cost to administer this program for the first year?
29
30         (d) How much will it cost to administer this program for subsequent years?
31
32   Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the
33   fiscal impact of the administrative regulation.
34          Revenues (+/-):
35          Expenditures (+/-):
36          Other Explanation:
37
38
39

40


                                                     118
 1
 2
 3 ENVIRONMENTAL AND PUBLIC PROTECTION CABINET

 4 DEPARTMENT OF PUBLIC PROTECTION

 5 OFFICE OF CHARITABLE GAMING

 6 (Amendment)

 7 820 KAR 1:050. Raffle standards.

 8 RELATES TO: KRS 238.545(3), 238.550(5)

 9 STATUTORY AUTHORITY: KRS 238.515(2), (4), (9).

10 NECESSITY, FUNCTION, AND CONFORMITY: KRS 238.515(2) authorizes the

11 Office of Charitable Gaming to establish reasonable standards for the conduct of

12 charitable gaming and KRS 238.515(9) authorizes the office to promulgate

13 administrative regulations necessary to implement KRS Chapter 238. This

14 administrative    regulation    establishes   standards   for      the   construction   and

15 distribution of raffle materials and for the conduct of raffles.

16 Section 1. Raffle Ticket Construction. (1) Raffle tickets shall have a detachable

17 section and shall be consecutively numbered.

18 (2) The detachable section of the ticket shall bear a duplicate number corresponding

19 to the number on the ticket and shall provide space for the purchaser's name,

20 complete address, and telephone number.

21 (3) The following information shall be printed on each ticket:



                                              119
1 (a) The date and time for each drawing;
2




                                            120
 1 (b) The location of each drawing;

 2 (c) The name of the charitable organization conducting the raffle;

 3 (d) The charitable organization’s license number or exemption number, if any;

 4 (e) The price of the ticket; and

 5 (f) Each prize to be awarded with a fair market value over $500.

 6 (4) The requirements of subsections (2) and (3) of this section shall be waived if:

 7 (a) The raffle tickets sell for $1 or less; [sales are initiated and concluded and all

 8 winners are selected within a twenty-four (24) hour period and the total fair market

 9 value of all raffle prizes awarded in any twenty-four (24) hour period does not

10 exceed $250;]

11 (b) The raffle sales are initiated and concluded and all winners are selected at a

12 special charity fundraising event; or

13 (c) The raffle sales are initiated and concluded and all winners are selected at

14 licensed special limited charity games.

15 Section 2. Raffle Prizes. (1) A charitable organization conducting a raffle in which

16 real or personal property prizes are to be awarded shall be responsible for the

17 transfer and delivery of the prize without lien or interest of others.

18 (2) All raffle prizes shall be awarded as indicated on the raffle ticket unless the

19 event at which the raffle was to be conducted is postponed. If the raffle is postponed,

20 all reasonable efforts shall be made to notify ticket holders of the new drawing date.

21 Section 3. Conduct of Raffles. (1) Any person holding a raffle ticket shall be

22 permitted to observe the raffle drawing.




                                              121
 1 (2) A person shall not be required to be present at a raffle drawing in order to be

 2 eligible for the prize drawing.

 3 (3) Each ticket seller shall return to the charitable organization the stubs or other

 4 detachable sections of all tickets sold prior to the drawing.

 5 (4) Before drawing, the charitable organization shall place each stub or other

 6 detachable section of each ticket sold into a receptacle from which the winning

 7 tickets are to be drawn. The receptacle shall be designed so that each ticket placed

 8 in it has an equal chance to be drawn.

 9 (5) If the winner is not present at the drawing, the organization shall notify the

10 winner by certified mail within seven (7) days of the drawing that they shall claim

11 the prize within thirty (30) days.

12 (6) If a winner does not wish to claim the prize but wishes to donate it to the

13 organization, they shall provide the organization a statement within the thirty (30)

14 day period stating that they wish to donate the prize to the organization.

15 Otherwise, if [If] a raffle winner does not claim the prize within thirty (30) days

16 after having been contacted, the organization shall notify the Office of Charitable

17 Gaming and draw another ticket in the presence of office personnel.

18 (7) The requirements of subsections (5) and (6) of this section shall be waived, and

19 the organization shall be allowed to draw tickets until a winner is present if:

20 (a) The raffle tickets sell for $1 or less; [sales are initiated and concluded and all

21 winners are selected within a twenty-four (24) hour period and the total fair market




                                             122
1 value of all raffle prizes awarded in any twenty-four (24) hour period does not

2 exceed $250;]

3 (b) The raffle sales are initiated and concluded and all winners are selected at a

4 licensed charity fundraising event; or

5 (c) The raffle sales are initiated and concluded and all winners are selected at a

6 licensed special limited charity fundraising event.
7




                                           123
 1   READ AND APPROVED:
 2
 3
 4
 5
 6
 7   ______________________________________        ______________________
 8   Tony S. Royalty, Executive Director           Date
 9   Office of Charitable Gaming
10
11
12
13
14   ______________________________________        ______________________
15   Timothy LeDonne, Commissioner                 Date
16   Department of Public Protection
17
18
19
20
21   ______________________________________        ______________________
22   Lloyd R. Cress, Deputy Secretary              Date
23   Environmental and Public Protection Cabinet
24   For Teresa J. Hill, Secretary
25   Environmental and Public Protection Cabinet
26
27




                                            124
 1                 PUBLIC HEARING AND PUBLIC COMMENT PERIOD
 2
 3   A public hearing on this administrative regulation shall be held on May 22, 2007 at 10:00
 4   am in the hearing room of the Office of Charitable Gaming, 132 Brighton Park
 5   Boulevard, Frankfort, Kentucky.
 6
 7   Individuals interested in being heard at this hearing shall notify this agency, in writing
 8   five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent
 9   to attend the hearing is received by that date, the hearing may be canceled. This hearing
10   is open to the public. Any person who wishes to be heard will be given an opportunity to
11   comment on the proposed administrative regulation.
12
13   A transcript of the public hearing will not be made unless a written request for a
14   transcript is made. If you do not wish to be heard at the public hearing, you may submit
15   written comments on the proposed administrative regulation. Written comments shall be
16   accepted until close of business Thursday, May 31, 2007.
17
18   Send written notification of intent to be heard at the public hearing or written comments
19   on the proposed administrative regulation to the contact person.
20
21   CONTACT PERSON:
22       Leah Cooper Boggs
23       Assistant Director of Licensing
24       Division of Licensing and Compliance
25       Office of Charitable Gaming
26       132 Brighton Park Boulevard
27       Frankfort, Kentucky 40601
28       Phone: (502) 573-5528
29       Fax: (502) 573-6625
30
31




                                                  125
 1                       REGULATORY IMPACT ANALYSIS
 2                           AND TIERING STATEMENT
 3
 4 Contact Person: Leah Cooper Boggs

 5 (11)   Provide a brief summary of: 820 KAR 1:050, Raffle Standards

 6    (h) What this administrative regulation does:

 7    This regulation establishes the rules for conducting a raffle.

 8    (b) The necessity of this administrative regulation:

 9    This regulation is needed to establish the rules for conducting a raffle.

10    (c) How does this administrative regulation conform to the content of the authorizing

11    statutes:

12    KRS 238.515(2) provides that the Office will establish and enforce reasonable

13    standards for the conduct of charitable gaming.

14    (j) How this administrative regulation currently assists or will assist in the effective

15        administration of the statutes:

16    This administrative regulation sets forth the requirements for conducting a raffle.

17 (12)   If this is an amendment to an existing administrative regulation, provide a brief

18    summary of:

19    (w) How the amendment will change this existing administrative regulation?

20    This amendment changes the ticket price at which an organization must use printed

21    tickets instead of movie strip tickets. The amendment also allows patrons to donate

22    the prize back to the organization.




                                               126
 1      (x) The necessity of the amendment to this administrative regulation:

 2      The amendment is necessary to make it easier to conduct strip ticket raffles and

 3      donate prizes back to the organization.

 4      (y) How the amendment conforms to the content of the authorizing statutes:

 5      It conforms to the content of the authorizing statute because it makes it easier for an

 6      organization to conduct a legitimate raffle.

 7      (z) How the amendment will assist in the effective administration of the statutes:

 8      The amendment will assist because it will make it easier for the organizations to

 9      conform to the law.

10 (13)     List the type and number of individuals, businesses, organizations, or state and

11      local governments affected by this administrative regulation:

12 This regulation will affect approximately 700 organizations.

13 (4) Provide an analysis of how the entities identified in question (3) will be impacted by

14 either the implementation of this administrative regulation, if new, or by the change, if it

15 is an amendment, including:

16 (a) List the actions that each of the regulation entities identified in question (3) will have

17 to take to comply with this administrative regulation or amendment: The organizations

18 will have to obtain the new regulation.

19 (b) In complying with this administrative regulation or amendment, how much will it cost

20 each of the entities identified in question (3): None.




                                                  127
 1 (c) As a result of compliance, what benefits will accrue to the entities identified in

 2 question (3):

 3 The organization can have more strip ticket raffles and receive donations of the prizes

 4 back from the winners.

 5 (5) Provide an estimate of how much it will cost to implement this regulation:

 6      (o) Initially: None.

 7      (p) On a continuing basis. None.

 8 (6) What is the source of funding to be used for the implementation and enforcement of

 9 this administrative regulation? Charitable gaming is funded by the regulated community.

10 (7) Provide an assessment of whether an increase in fees or funding will be necessary to

11 implement this administrative regulation, if new, or by the change if it is an amendment.

12 No fee increase will be necessary to implement this regulation.

13 (8) State whether or not this administrative regulation establishes any fees or directly or

14 indirectly increases any fees: No.

15 (9) TIERING: Is tiering applied? Tiering is not applied because this regulation applies

16 equally to all organizations.

17




                                                128
 1
 2                  FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
 3
 4
 5
 6   Regulation No. 820 KAR 1:050                        Contact Person: Leah Cooper Boggs
 7
 8         1. Does this administrative regulation relate to any program, service, or
 9   requirements of a state or local government (including cities, counties, fire departments,
10   or school districts)?
11         Yes ______ No __X___
12         If yes, complete questions 2-4.
13
14         2. What units, parts or divisions of state or local government (including cities,
15   counties, fire departments, or school districts) will be impacted by this administrative
16   regulation?
17
18         3. Identify each state or federal statute or federal regulation that requires or
19   authorizes the action taken by the administrative regulation.
20
21         4. Estimate the effect of this administrative regulation on the expenditures and
22   revenues of a state or local government agency (including cities, counties, fire
23   departments, or school districts) for the first full year the administrative regulation is to
24   be in effect.
25
26          (a) How much revenue will this administrative regulation generate for the state or
27   local government (including cities, counties, fire departments, or school districts) for the
28   first year?
29
30         (b) How much revenue will this administrative regulation generate for the state or
31   local government (including cities, counties, fire departments, or school districts) for
32   subsequent years?
33
34         (c) How much will it cost to administer this program for the first year?
35
36         (d) How much will it cost to administer this program for subsequent years?
37
38   Note: If specific dollar estimates cannot be determined, provide a brief narrative to
39   explain the fiscal impact of the administrative regulation.
40         Revenues (+/-):
41         Expenditures (+/-):


                                                 129
 1      Other Explanation:
 2
 3
 4

 5 ENVIRONMENTAL AND PUBLIC PROTECTION

 6 DEPARTMENT OF PUBLIC PROTECTION

 7 OFFICE OF CHARITABLE GAMING

 8 (Amendment)

 9 820 KAR 1:055. Charity fundraising event standards.

10 RELATES TO: KRS 238.515(2), (4), (9), 238.535, 238.545, 238.547

11 STATUTORY AUTHORITY: KRS 238.515(2), (4), (9), 238.545(4)

12 NECESSITY, FUNCTION, AND CONFORMITY: The Office of Charitable

13 Gaming is authorized by KRS 238.515(2) to establish reasonable standards

14 for the conduct of charitable gaming. KRS 238.545(4) requires a license in

15 order to conduct a charity fundraising event. This administrative regulation

16 establishes standards for the conduct of charity fundraising events.

17 Section 1. Issuance of License. (1) An organization shall submit a complete,

18 accurate, and verifiable application on Form CG-Schedule A, Application for

19 Charity Fundraising Event License or Special Limited Charity Fundraising

20 Event License, for a charity fundraising event at least thirty (30) days prior

21 to the scheduled date for the charity fundraising event.




                                         130
1 (2) A processing fee of twenty-five (25) dollars shall accompany each

2 application for licensure.
3




                                   131
 1 (3) At the time the application is filed, the organization shall provide the

 2 office with a copy of the executed lease, if applicable.

 3 (4) All information requested by the office shall be submitted and reviewed

 4 before a license may be granted.

 5 (5) The office shall issue a license if the applicant possesses a regular

 6 charitable gaming license and has met the requirements for licensure set

 7 forth in KRS 238.505(8) and 238.545(4).

 8 (6) [The license shall be issued for the county in which the organization

 9 currently holds its regular gaming license.

10 (7)] The event shall not be advertised nor preregistrations taken until a

11 license is issued.

12 (7) [(8)] Once a license is issued, players may preregister prior to the day of

13 the event for the event only if payment is received by credit card, check, or

14 electronic fund transfer.

15 (8) [(9)] Pursuant to its discretion under KRS 238.505(8), the office has

16 determined that charity game tickets, or pulltabs, shall not be an approved

17 game of chance at a charity fundraising event held by an exempt

18 organization.

19 Section 2. Special Limited Games Played at a Charity Fundraising Event.

20 [(1)] The office shall grant approval to play special limited games at a charity

21 fundraising event if the information contained in the application and the




                                           132
 1 totality of the circumstances show that the event meets the requirements of

 2 KRS 238.545(4)(d).

 3 [(2) Special limited charitable games played at charity fundraising events

 4 pursuant to KRS 238.545 (4)(d) shall comply with KRS 238.547.

 5 (3) If the special limited charity games are played as a tournament, then:

 6 (a) A record of attendance shall be kept for the special limited charity games;

 7 and

 8 (b) The cost to enter, the cost of the buy backs, the rules of the game, the

 9 manner for raising blinds or closing tables, and the prizes shall be listed on

10 the gaming occasion program. The prizes may be listed as a percentage of the

11 receipts.]

12 Section 3. Volunteers. (1) All individuals involved in the conduct of a charity

13 fundraising event shall be trained in the proper conduct of the game and the

14 control of funds.

15 (2) The chairperson shall:

16 (a) Be in charge of the licensed gaming occasion;

17 (b) Supervise and direct all volunteers; and

18 (c) Be responsible for assuring the proper receipt and recording of gaming

19 funds.

20 Section 4. Equipment Used for Events. (1) Poker tables, blackjack tables,

21 prize wheels, and chips, scrip, or imitation money shall not be considered

22 charitable gaming supplies, and equipment and may be purchased from




                                         133
 1 ordinary sources of supply. The organization shall not pay for poker tables,

 2 blackjack tables, prize wheels or chips, scrip, or imitation money from the

 3 charitable gaming account.

 4 (2) Roulette wheels and craps tables shall be considered charitable gaming

 5 supplies and shall be obtained from a licensed distributor. The organization

 6 shall pay for roulette wheels and craps tables from the charitable gaming

 7 account.

 8 (3) If special limited charity games are played, the organization shall provide

 9 the office with a copy of the executed contract for the use of those supplies no

10 later than thirty (30) days following the event. This contract shall specify

11 exactly the items provided, at what cost, and from whom.

12 Section 5. Expenses. (1) The organization shall pay the gaming expenses for

13 the event from the gaming account. All other expenses shall be paid from the

14 general account.

15 (2) If an expense is both a gaming expense and a general expense, the

16 expense shall be prorated pursuant to the amount of gross receipts obtained

17 from gaming and nongaming events. The full amount shall be paid from the

18 general account and the amount attributable to gaming shall be reimbursed

19 from the gaming account to the general account.

20 Section 6. Incorporation by Reference. (1) Form CG-Schedule A, "Application

21 for Charity Fundraising Event License or Special Limited Charity

22 Fundraising Event License 4/07 [(2/06)]", is incorporated by reference.




                                         134
1 (2) This material may be inspected, copied, or obtained, subject to applicable

2 copyright law, at the Office of Charitable Gaming, Environmental and Public

3 Protection Cabinet, 132 Brighton Park Boulevard, Frankfort, Kentucky

5 40601, Monday through Friday, 8 a.m. to 4:30 p.m.
4




                                       135
 1 READ AND APPROVED:

 2
 3
 4
 5
 6
 7   ______________________________________        ______________________
 8   Tony S. Royalty, Executive Director           Date
 9   Office of Charitable Gaming
10
11
12
13
14   ______________________________________        ______________________
15   Timothy LeDonne, Commissioner                 Date
16   Department of Public Protection
17
18
19
20
21   ______________________________________        ______________________
22   Lloyd R. Cress, Deputy Secretary              Date
23   Environmental and Public Protection Cabinet
24   For Teresa J. Hill, Secretary
25   Environmental and Public Protection Cabinet
26
27




                                            136
 1                 PUBLIC HEARING AND PUBLIC COMMENT PERIOD
 2
 3   A public hearing on this administrative regulation shall be held on May 22, 2007 at 10:00
 4   am in the hearing room of the Office of Charitable Gaming, 132 Brighton Park
 5   Boulevard, Frankfort, Kentucky.
 6
 7   Individuals interested in being heard at this hearing shall notify this agency, in writing
 8   five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent
 9   to attend the hearing is received by that date, the hearing may be canceled. This hearing
10   is open to the public. Any person who wishes to be heard will be given an opportunity to
11   comment on the proposed administrative regulation.
12
13   A transcript of the public hearing will not be made unless a written request for a
14   transcript is made. If you do not wish to be heard at the public hearing, you may submit
15   written comments on the proposed administrative regulation. Written comments shall be
16   accepted until close of business Thursday, May 31, 2007.
17
18   Send written notification of intent to be heard at the public hearing or written comments
19   on the proposed administrative regulation to the contact person.
20
21   CONTACT PERSON:
22       Leah Cooper Boggs
23       Assistant Director of Licensing
24       Division of Licensing and Compliance
25       Office of Charitable Gaming
26       132 Brighton Park Boulevard
27       Frankfort, Kentucky 40601
28       Phone: (502) 573-5528
29       Fax: (502) 573-6625
30
31




                                                  137
 1                          REGULATORY IMPACT ANALYSIS
 2                             AND TIERING STATEMENT
 3

 4 Contact Person: Leah Cooper Boggs

 5 (14)   Provide a brief summary of: 820 KAR 1:055, Charity Fundraising Event

 6    Standards.

 7    (i) What this administrative regulation does:

 8    This regulation gives guidance to organizations in the application for obtaining a

 9    charity fundraising event license and in the play of the games.

10    (b) The necessity of this administrative regulation:

11    This regulation is needed to clarify the rules for conducting a charity fundraising

12    event.

13    (c) How does this administrative regulation conform to the content of the authorizing

14    statutes:

15    KRS 238.515(2) provides that the Office will establish and enforce reasonable

16    standards for the conduct of charitable gaming.

17    (d) How this administrative regulation currently assists or will assist in the effective

18    administration of the statutes:

19    This administrative regulation assists in the effective administration of the statutes

20    because it sets forth the rules for conducting a charity fundraising event.

21 (15)   If this is an amendment to an existing administrative regulation, provide a brief

22    summary of:


                                               138
 1      (aa)       How the amendment will change this existing administrative regulation?

 2          This amendment is required by a change in the statute which allows charity

 3          fundraising events to take place out of county.

 4      (bb)       The necessity of the amendment to this administrative regulation: This

 5          amendment is necessary to conform to the statute.

 6      (cc)       How the amendment conforms to the content of the authorizing statutes:

 7          The amendment conforms to the statute because the statute allows charity

 8          fundraising events to be held out of county.

 9      (dd)       How the amendment will assist in the effective administration of the

10          statutes: The amendment conforms the regulation to the statute.

11 (16)     List the type and number of individuals, businesses, organizations, or state and

12      local governments affected by this administrative regulation:

13 This regulation will affect approximately 700 organizations.

14 (4) Provide an analysis of how the entities identified in question (3) will be impacted by

15 either the implementation of this administrative regulation, if new, or by the change, if it

16 is an amendment, including:

17 (a) List the actions that each of the regulation entities identified in question (3) will have

18 to take to comply with this administrative regulation or amendment: The organizations

19 will have to obtain the new regulation.

20 (b) In complying with this administrative regulation or amendment, how much will it cost

21 each of the entities identified in question (3): None.


                                                139
 1 (c) As a result of compliance, what benefits will accrue to the entities identified in

 2 question (3):

 3 The organizations will be able to hold 4 charity fundraising events a year out of the

 4 county.

 5 (5) Provide an estimate of how much it will cost to implement this regulation:

 6      (q) Initially: None.

 7      (r) On a continuing basis. None.

 8 (6) What is the source of funding to be used for the implementation and enforcement of

 9 this administrative regulation? Charitable gaming is funded by the regulated community.

10 (7) Provide an assessment of whether an increase in fees or funding will be necessary to

11 implement this administrative regulation, if new, or by the change if it is an amendment.

12 No fee increase will be necessary to implement this regulation.

13 (8) State whether or not this administrative regulation establishes any fees or directly or

14 indirectly increases any fees: No.

15 (9) TIERING: Is tiering applied? Tiering is not applied because this regulation applies

16 equally to all organizations.

17

18




                                                140
 1                  FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 2
 3   Regulation No. 820 KAR 1:055                        Contact Person: Leah Cooper Boggs
 4
 5         1. Does this administrative regulation relate to any program, service, or
 6   requirements of a state or local government (including cities, counties, fire departments,
 7   or school districts)?
 8         Yes ______ No ___X__
 9         If yes, complete questions 2-4.
10
11         2. What units, parts or divisions of state or local government (including cities,
12   counties, fire departments, or school districts) will be impacted by this administrative
13   regulation?
14
15         3. Identify each state or federal statute or federal regulation that requires or
16   authorizes the action taken by the administrative regulation.
17
18         4. Estimate the effect of this administrative regulation on the expenditures and
19   revenues of a state or local government agency (including cities, counties, fire
20   departments, or school districts) for the first full year the administrative regulation is to
21   be in effect.
22
23          (a) How much revenue will this administrative regulation generate for the state or
24   local government (including cities, counties, fire departments, or school districts) for the
25   first year?
26
27         (b) How much revenue will this administrative regulation generate for the state or
28   local government (including cities, counties, fire departments, or school districts) for
29   subsequent years?
30
31         (c) How much will it cost to administer this program for the first year?
32
33         (d) How much will it cost to administer this program for subsequent years?
34
35   Note: If specific dollar estimates cannot be determined, provide a brief narrative to
36   explain the fiscal impact of the administrative regulation.
37         Revenues (+/-):
38         Expenditures (+/-):
39          Other Explanation:

40

                                                 141
 1 DETAILED SUMMARY OF MATERIAL INCORPORATED BY REFERENCE

 2                                       820 KAR 1:055

 3                              Charity Fundraising Event Standards

 4 1) 820 KAR 1:055 incorporates by reference Form CG-Schedule A, “Application for

 5 charity fundraising event license or special limited charity fundraising event license”,

 6 which is the form that an organization would use to apply for a special gaming event.

 7 This form is being amended to make it easier to understand and complete by the

 8 organization.

 9   (2)   The total number of pages that the Office of Charitable Gaming has incorporated

10 by reference is three (3).

11
12
13
14

15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30


                                               142
 1
 2
 3
 4
 5
 6
 7 ENVIRONMENTAL AND PUBLIC PROTECTION

 8 DEPARTMENT OF PUBLIC PROTECTION

 9 OFFICE OF CHARITABLE GAMING

10 (Amendment)

11 820 KAR 1:056 Special limited charity fundraising event standards.

12 RELATES TO: KRS 238.515(2), (4), (9), 238.545(4), 238.547

13 STATUTORY AUTHORITY: KRS 238.515(2), (4), (9), 238.545(4)

14 NECESSITY, FUNCTION, AND CONFORMITY: The Office of Charitable

15 Gaming is authorized by KRS 238.515(2) to establish reasonable standards

16 for the conduct of charitable gaming. KRS 238.545(4) requires a license in

17 order to conduct a Special Limited Charity Fundraising Event. This

18 administrative regulation establishes standards for the conduct of special

19 limited charity fundraising events.

20 Section 1. Issuance of License. (1) An organization shall submit a complete,

21 accurate, and verifiable application on Form CG-Schedule A, Application for

22 Charity Fundraising Event License or Special Limited Charity Fundraising

23 Event License, for a special limited charity fundraising event at least thirty



                                         143
1 (30) days prior to the scheduled date for the special limited charity

2 fundraising event.
3




                                   144
 1 (2) A processing fee of twenty-five (25) dollars shall accompany each

 2 application for licensure.

 3 (3) At the time the application is filed, the organization shall provide the

 4 office with a copy of the executed lease, if applicable.

 5 (4) All information requested by the office shall be submitted and reviewed

 6 before a license shall be granted.

 7 (5) The office shall issue a license, if the applicant possesses a regular

 8 charitable gaming license and has met the requirements for licensure set

 9 forth in KRS 238.505(18) and 238.547.

10 (6) [The license shall be issued for the county in which the organization

11 currently holds its regular gaming license.

12 (7)] The event shall not be advertised nor preregistrations taken until a

13 license is issued.

14 (7) [(8)] Once a license is issued, players may preregister prior to the day of

15 the event for the event only if payment is received by credit card, check, or

16 electronic fund transfer.

17 (8) [(9)] A central bank shall be maintained in accordance with KRS

18 238.547(3).

19 (9) [(10)] For all games that require a central bank to be used, the amount of

20 money received for selling chips, scrip, or imitation money shall be the gross

21 receipts, all chips, scrip, or imitation money redeemed shall be the payouts,

22 and all money remaining shall be the adjusted gross receipts.




                                           145
 1 (10) [(11)] Games requiring a predetermined amount of chips, scrip, or

 2 imitation money shall be precounted. Accurate records shall be kept of all

 3 chips, scrip, or imitation money sales, whether the sale is an initial entry fee

 4 or a later purchase of chips, scrip, or imitation money.

 5 (11) [(12)] If the special limited charity games are played as a tournament,

 6 then:

 7 (a) A record of attendance shall be kept for the special limited charity games;

 8 and

 9 (b) The cost to enter, the cost of the buy backs, the cost of the add ons, the

10 rules of the game, the manner for raising blinds or closing tables, and the

11 prizes shall be listed on the gaming occasion program. The prizes may be

12 listed as a percentage of the receipts.

13 Section 2. Volunteers. (1) All volunteers involved in the conduct of a special

14 limited charity fundraising event shall be trained in the proper conduct of the

15 game and the control of funds.

16 (2) The chairperson shall:

17 (a) Be in charge of the licensed gaming occasion;

18 (b) Supervise and direct all volunteers; and

19 (c) Be responsible for assuring the proper receipt and recording of gaming

20 funds.

21 Section 3. Equipment Used for Events. (1) Poker tables, blackjack tables,

22 prize wheels, and chips, scrip, or imitation money shall not be considered




                                             146
 1 charitable gaming supplies and equipment, and may be purchased from

 2 ordinary sources of supply. The organization shall not pay for poker tables,

 3 blackjack tables, prize wheels or chips, scrip, or imitation money from the

 4 charitable gaming account.

 5 (2) Roulette wheels and craps tables shall be considered charitable gaming

 6 supplies and shall be obtained from a licensed distributor. The organization

 7 shall pay for roulette wheels and craps tables from the charitable gaming

 8 account.

 9 (3) For the special limited charity games played at the event, the

10 organization shall provide the office with a copy of the executed contract for

11 the use of those supplies no later than thirty (30) days following the event.

12 This contract shall specify exactly the items provided, at what cost, and from

13 whom.

14 Section 4. Expenses. (1) The organization shall pay the gaming expenses for

15 the event from the gaming account. All other expenses shall be paid from the

16 general account.

17 (2) If an expense is both a gaming expense and a general expense, the

18 expense shall be prorated pursuant to the amount of gross receipts obtained

19 from gaming and nongaming events. The full amount shall be paid from the

20 general account and the amount attributable to gaming shall be reimbursed

21 from the gaming account to the general account.




                                        147
 1 (3) Food, beverages, and other items provided to participants without

 2 additional payment at an event where only gaming activity takes place shall

 3 be considered a promotional expense, if all participants are equally eligible.

 4 Section 5. Incorporation by Reference. (1) Form CG-Schedule A, "Application

 5 for Charity Fundraising Event License or Special Limited Charity

 6 Fundraising Event License 4/07 [(2/06)]", is incorporated by reference.

 7 (2) This material may be inspected, copied, or obtained, subject to applicable

 8 copyright law, at the Office of Charitable Gaming, Environmental and Public

 9 Protection Cabinet, 132 Brighton Park Boulevard, Frankfort, Kentucky

11 40601, 8 a.m. to 4:30 p.m.
10




                                         148
 1   READ AND APPROVED:
 2
 3
 4
 5
 6
 7   ______________________________________              ______________________
 8   Tony S. Royalty, Executive Director                 Date
 9   Office of Charitable Gaming
10
11
12
13
14   ______________________________________              ______________________
15   Timothy LeDonne, Commissioner                       Date
16   Department of Public Protection
17
18
19
20
21   ______________________________________              ______________________
22   Lloyd R. Cress, Deputy Secretary                    Date
23   Environmental and Public Protection Cabinet
24   For Teresa J. Hill, Secretary
25   Environmental and Public Protection Cabinet
26
27
28




                                                   149
 1                     PUBLIC HEARING AND PUBLIC COMMENT PERIOD
 2
 3   A public hearing on this administrative regulation shall be held on May 22, 2007 at 10:00 am in the
 4   hearing room of the Office of Charitable Gaming, 132 Brighton Park Boulevard, Frankfort,
 5   Kentucky.
 6
 7   Individuals interested in being heard at this hearing shall notify this agency, in writing five (5)
 8   workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the
 9   hearing is received by that date, the hearing may be canceled. This hearing is open to the public.
10   Any person who wishes to be heard will be given an opportunity to comment on the proposed
11   administrative regulation.
12
13   A transcript of the public hearing will not be made unless a written request for a transcript is made.
14   If you do not wish to be heard at the public hearing, you may submit written comments on the
15   proposed administrative regulation. Written comments shall be accepted until close of business
16   Thursday, May 31, 2007.
17
18   Send written notification of intent to be heard at the public hearing or written comments on the
19   proposed administrative regulation to the contact person.
20
21   CONTACT PERSON:
22       Leah Cooper Boggs
23       Assistant Director of Licensing
24       Division of Licensing and Compliance
25       Office of Charitable Gaming
26       132 Brighton Park Boulevard
27       Frankfort, Kentucky 40601
28       Phone: (502) 573-5528
29       Fax: (502) 573-6625
30
31




                                                      150
 1                            REGULATORY IMPACT ANALYSIS
 2                               AND TIERING STATEMENT
 3
 4 Contact Person: Leah Cooper Boggs

 5 (17)     Provide a brief summary of: 820 KAR 1:056 Special Limited Charity Fundraising Event

 6    Standards.

 7    (j) What this administrative regulation does:

 8    This regulation gives guidance to organizations in the application for obtaining a special limited

 9    charity fundraising event license and in the play of the games.

10    (b) The necessity of this administrative regulation:

11    This regulation is needed to clarify the rules for conducting a special limited charity fundraising

12    event and more particularly Texas Hold ‘em poker tournaments.

13    (c) How does this administrative regulation conform to the content of the authorizing statutes:

14    KRS 238.515(2) provides that the Office will establish and enforce reasonable standards for the

15    conduct of charitable gaming.

16    (d) How this administrative regulation currently assists or will assist in the effective

17    administration of the statutes:

18    This administrative regulation will assist in the effective administration of the statutes because

19    it provides the rules for conducting a special limited charity fundraising event.

20 (18)     If this is an amendment to an existing administrative regulation, provide a brief summary

21    of:




                                                    151
 1      (ee)        How the amendment will change this existing administrative regulation? The

 2         amendment clarifies that add-ons need to be listed on the program and accounted for in the

 3         records. The amendment also allows the 4 charity fundraising events to be held out of

 4         county including the 2 special limited charity fundraising events.

 5      (ff) The necessity of the amendment to this administrative regulation: The amendment is

 6         necessary so that organizations will understand that they also need to account for additional

 7         sales (add-ons) and not just entry fees and to conform to the statutory amendment regarding

 8         the out of county change for charity fundraising events..

 9      (gg)        How the amendment conforms to the content of the authorizing statutes: The statute

10         requires the agency to establish reasonable standards for the conduct of charitable gaming.

11      (hh)        How the amendment will assist in the effective administration of the statutes: The

12         amendment will make the statutes easier to administer because the organization will know

13         the rules for conducting special limited events.

14 (19)    List the type and number of individuals, businesses, organizations, or state and local

15      governments affected by this administrative regulation:

16 This regulation will only affect the organizations that have special events but not more than 700

17 organizations.

18 (4) Provide an analysis of how the entities identified in question (3) will be impacted by either the

19 implementation of this administrative regulation, if new, or by the change, if it is an amendment,

20 including:




                                                    152
 1 (a) List the actions that each of the regulation entities identified in question (3) will have to take to

 2 comply with this administrative regulation or amendment: The organizations will have to obtain

 3 the new regulation.

 4 (b) In complying with this administrative regulation or amendment, how much will it cost each of

 5 the entities identified in question (3): None.

 6 (c) As a result of compliance, what benefits will accrue to the entities identified in question (3):

 7 The organization will understand how to follow the regulations.

 8 (5) Provide an estimate of how much it will cost to implement this regulation:

 9      (s) Initially: None.

10      (t) On a continuing basis. None.

11 (6) What is the source of funding to be used for the implementation and enforcement of this

12 administrative regulation? Charitable gaming is funded by the regulated community.

13 (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement

14 this administrative regulation, if new, or by the change if it is an amendment.

15 No fee increase will be necessary to implement this regulation.

16 (8) State whether or not this administrative regulation establishes any fees or directly or indirectly

17 increases any fees: No.

18 (9) TIERING: Is tiering applied? Tiering is not applied because this regulation applies equally to

19 all organizations.

20




                                                      153
1           FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

 2
 3
 4   Regulation No. 820 KAR 1:056                        Contact Person: Leah Cooper Boggs
 5
 6          1. Does this administrative regulation relate to any program, service, or requirements of a
 7   state or local government (including cities, counties, fire departments, or school districts)?
 8          Yes ______ No __X___
 9          If yes, complete questions 2-4.
10
11         2. What units, parts or divisions of state or local government (including cities, counties, fire
12   departments, or school districts) will be impacted by this administrative regulation?
13
14         3. Identify each state or federal statute or federal regulation that requires or authorizes the
15   action taken by the administrative regulation.
16
17         4. Estimate the effect of this administrative regulation on the expenditures and revenues of a
18   state or local government agency (including cities, counties, fire departments, or school districts)
19   for the first full year the administrative regulation is to be in effect.
20
21        (a) How much revenue will this administrative regulation generate for the state or local
22   government (including cities, counties, fire departments, or school districts) for the first year?
23
24        (b) How much revenue will this administrative regulation generate for the state or local
25   government (including cities, counties, fire departments, or school districts) for subsequent years?
26
27         (c) How much will it cost to administer this program for the first year?
28
29         (d) How much will it cost to administer this program for subsequent years?
30
31   Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the
32   fiscal impact of the administrative regulation.
33          Revenues (+/-):
34          Expenditures (+/-):
35          Other Explanation:
36
37
38




                                                      154
 1 DETAILED SUMMARY OF MATERIAL INCORPORATED BY REFERENCE

 2                                            820 KAR 1:056

 3                           Special Limited Charity Fundraising Event Standards

 4 (2)             820 KAR 1:056 incorporates by reference Form CG-Schedule A, “Application for

 5 charity fundraising event license or special limited charity fundraising event license”, which is the

 6 form that an organization would use to apply for a special gaming event.         This form is being

 7 amended to make it easier to understand and complete by the organization.

 8   (2)   The total number of pages that the Office of Charitable Gaming has incorporated by

 9 reference is three (3).

10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32


                                                    155
 1
 2
 3
 4 ENVIRONMENTAL AND PUBLIC PROTECTION CABINET

 5 DEPARTMENT OF PUBLIC PROTECTION

 6 OFFICE OF CHARITABLE GAMING

 7 (Amendment)

 8 820 KAR 1:057. Accurate records.

 9 RELATES TO: KRS 238.550(5), 238.560(2)

10 STATUTORY AUTHORITY: KRS 238.515(4), (9), 238.550(3)

11 NECESSITY, FUNCTION, AND CONFORMITY: KRS 238.515(4) and 238.550

12 authorize the office to establish and enforce standards for accounting, recordkeeping,

13 and reporting to the office to ensure charitable gaming receipts are counted and

14 reported. This administrative regulation establishes the minimum requirements for

15 accurate records.

16 Section 1. Bank Account and Records. (1) A licensed charitable gaming organization

17 shall maintain a single bank account for charitable gaming receipts. This account

18 shall be separate from any other account maintained by the organization.

19 (2) Disbursements for charitable gaming expenses and charitable donations shall be

20 made by check or electronic fund transfer directly from the charitable gaming

21 account.

22 (3) All receipts from each gaming occasion shall be deposited by the second business


                                            156
 1 day following the occasion at which they were received. The deposit for each occasion

 2 shall be made separately and shall not be combined with the deposit from any other

 3 occasion.

 4 (4) All types of deposits, including startup cash, bad checks collected and check

 5 collection fees, progressive game carry forward, and adjusted gross receipts, shall be

 6 listed separately on the deposit reconciliation sheet, and the deposit slip, if possible.

 7 Each individual check shall be listed separately on the deposit slip. If a register tape

 8 is run listing the amounts of the individual checks, it may be attached to the deposit

 9 ticket. Total cash and coins shall be listed separately. The organization shall keep a

10 copy of the deposit ticket.

11 (5) Checks that have been returned for insufficient funds that have not been collected

12 shall be retained by the organization for three (3) years following the close of the

13 calendar year in which the check was issued. If the check has been turned over to

14 someone else for collection, the organization shall keep a copy of the check with

15 information regarding the person collecting the check.

16 (6) Monthly bank statements and reconciliations for all accounts shall be maintained

17 for three (3) years following the close of a calendar year.

18 (7) Copies of the fronts and backs of checks from any account into which charitable

19 gaming funds are deposited or transferred shall be provided to the office upon request.

20 (8) Gross receipts shall include the money received from the sale of raffle tickets,

21 bingo cards or faces, pickle jars, bonanza balls, or hot balls, card-minding devices,

22 pulltabs, charity fundraising event games, special limited charity fundraising event




                                               157
 1 games, bad check collections, credit card fees, and reasonable check collection fees

 2 minus bad checks.

 3 Section 2. Start-up Cash. (1) If the source of start-up cash is not the charitable gaming

 4 account, the source of the start-up cash shall be identified on the gaming occasion

 5 sheet and signed by the chairperson.

 6 (2) Start-up cash from one (1) organization shall not be commingled with the start-up

 7 cash from another organization. The start-up cash shall be identified on the check

 8 withdrawing the funds and on the deposit slip, if possible.

 9 Section 3. Organization Records. (1) The chief financial officer shall be the custodian

10 of the gaming records and shall be responsible for ensuring that the records are

11 accurate, complete, and maintained regularly for inspection by the office.

12 (2) An organization that hand-writes data and later enters the information onto

13 another form or computer program shall retain the hand-written records along with

14 the other form or computer generated record.

15 (3) Organizations shall prepare and maintain accurate and adequate corporate or

16 other organizational records including articles of incorporation, minutes of board of

17 directors meetings, and resolutions.

18 (4) Organizations shall maintain detailed records of all expenditures made in

19 furtherance of its charitable purpose, including all charitable contributions.

20 (5) All records shall be made available for inspection and audit at the request of the

21 office.




                                              158
 1 (6) Any organization’s records, or copies of those records, deemed necessary to

 2 complete an inspection, audit, or investigation may be retained by the office or its

 3 employees or agents. The office shall provide a written receipt of the records at the

 4 time of removal.

 5 (7) Organizations shall provide records requested by the office, or any of its

 6 employees, within ten (10) calendar days, unless a longer response time is allowed by

 7 the request.

 8 (8) An organization shall perform an inventory and obtain permission of the office

 9 before destroying a bulk amount of gaming supplies. The gaming supplies shall be

10 destroyed by burning in compliance with state and federal law, shredding, destroying

11 or defacing in some manner to prevent reuse of any pulltab, flare, prize board, seal

12 card, bingo paper or any portion thereof.

13 (9) When an organization ceases to game, they shall perform a final inventory and

14 return all unused product to a distributor, donate the product to another organization

15 with the permission of the office, or destroy the product with the permission of the

16 office.
17




                                               159
 1 READ AND APPROVED:

 2
 3
 4
 5
 6
 7   ______________________________________          ______________________
 8   Tony S. Royalty, Executive Director             Date
 9   Office of Charitable Gaming
10
11
12
13
14   ______________________________________          ______________________
15   Timothy LeDonne, Commissioner                   Date
16   Department of Public Protection
17
18
19
20
21   ______________________________________          ______________________
22   Lloyd R. Cress, Deputy Secretary                Date
23   Environmental and Public Protection Cabinet
24   For Teresa J. Hill, Secretary
25   Environmental and Public Protection Cabinet
26
27




                                               160
 1                    PUBLIC HEARING AND PUBLIC COMMENT PERIOD
 2
 3   A public hearing on this administrative regulation shall be held on May 22, 2007 at 10:00 am in
 4   the hearing room of the Office of Charitable Gaming, 132 Brighton Park Boulevard, Frankfort,
 5   Kentucky.
 6
 7   Individuals interested in being heard at this hearing shall notify this agency, in writing five (5)
 8   workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the
 9   hearing is received by that date, the hearing may be canceled. This hearing is open to the public.
10   Any person who wishes to be heard will be given an opportunity to comment on the proposed
11   administrative regulation.
12
13   A transcript of the public hearing will not be made unless a written request for a transcript is
14   made. If you do not wish to be heard at the public hearing, you may submit written comments
15   on the proposed administrative regulation. Written comments shall be accepted until close of
16   business Thursday, May 31, 2007.
17
18   Send written notification of intent to be heard at the public hearing or written comments on the
19   proposed administrative regulation to the contact person.
20
21   CONTACT PERSON:
22       Leah Cooper Boggs
23       Assistant Director of Licensing
24       Division of Licensing and Compliance
25       Office of Charitable Gaming
26       132 Brighton Park Boulevard
27       Frankfort, Kentucky 40601
28       Phone: (502) 573-5528
29       Fax: (502) 573-6625
30
31




                                                     161
 1                           REGULATORY IMPACT ANALYSIS
 2                              AND TIERING STATEMENT
 3
 4 Contact Person: Leah Cooper Boggs

 5 (20)     Provide a brief summary of: 820 KAR 1:057 Accurate Records.

 6    (k) What this administrative regulation does:

 7    The statute requires the organizations to keep accurate records but there is no explanation for

 8    what are considered accurate records. This regulation gives guidance to organizations

 9    regarding what are considered accurate organization records.

10    (b) The necessity of this administrative regulation:

11    This regulation is needed to clarify the accurate record requirement in the statute.

12    (c) How does this administrative regulation conform to the content of the authorizing

13    statutes:

14    KRS 238.515(2) provides that the Office will establish and enforce reasonable standards for

15    the conduct of charitable gaming and KRS 238.515(4) requires the Office to establish

16    standards of accounting, recordkeeping, and reporting.

17    (d) How this administrative regulation currently assists or will assist in the effective

18    administration of the statutes:

19    This administrative regulation will assist in the effective administration of the statutes

20    because the organizations will know what is required by accurate records.

21 (21)     If this is an amendment to an existing administrative regulation, provide a brief summary

22    of:




                                                   162
 1     (ii) How the amendment will change this existing administrative regulation? The amendment

 2         allows credit card fees paid to the organization and receipts from side games to be

 3         deposited into the charitable gaming account. The amendment also sets forth the

 4         requirements on how to dispose of gaming supplies when the organization ceases to

 5         game.

 6     (jj) The necessity of the amendment to this administrative regulation: The amendment is

 7         necessary so that organization will not have to deposit receipts from credit cards in their

 8         general account and then transfer those into the gaming and then back again. The

 9         amendment is also necessary so that organizations will know how to dispose of gaming

10         supplies.

11     (kk)        How the amendment conforms to the content of the authorizing statutes: The

12         amendment includes rules on how to account for charitable gaming receipts and

13         charitable gaming fees.

14     (ll) How the amendment will assist in the effective administration of the statutes: The

15         amendment will assist the organizations so that it will be less complicated to deposit

16         receipts and dispose of product when they cease gaming.

17 (22)    List the type and number of individuals, businesses, organizations, or state and local

18     governments affected by this administrative regulation:

19 This regulation will affect approximately 700 organizations.




                                                   163
 1 (4) Provide an analysis of how the entities identified in question (3) will be impacted by either

 2 the implementation of this administrative regulation, if new, or by the change, if it is an

 3 amendment, including:

 4 (a) List the actions that each of the regulation entities identified in question (3) will have to take

 5 to comply with this administrative regulation or amendment: The organizations will have to

 6 obtain the new regulation.

 7 (b) In complying with this administrative regulation or amendment, how much will it cost each

 8 of the entities identified in question (3): None.

 9 (c) As a result of compliance, what benefits will accrue to the entities identified in question (3):

10 The organization will be allowed to deposit credit card fees into the charitable gaming account

11 and therefore, the bookkeeping will be less complicated. Also, the organization will know how

12 to dispose of supplies when they cease to game.

13 (5) Provide an estimate of how much it will cost to implement this regulation:

14      (u) Initially: None.

15      (v) On a continuing basis. None.

16 (6) What is the source of funding to be used for the implementation and enforcement of this

17 administrative regulation? Charitable gaming is funded by the regulated community.

18 (7) Provide an assessment of whether an increase in fees or funding will be necessary to

19 implement this administrative regulation, if new, or by the change if it is an amendment.

20 No fee increase will be necessary to implement this regulation.




                                                    164
1 (8) State whether or not this administrative regulation establishes any fees or directly or

2 indirectly increases any fees: No.

3 (9) TIERING: Is tiering applied? Tiering is not applied because this regulation applies equally to

4 all organizations.

5
6
7
8
9




                                                   165
 1
 2                      FISCAL NOTE ON STATE OR LOCAL GOVERNMENT
 3
 4
 5   Regulation No. 820 KAR 1:057                          Contact Person: Leah Cooper Boggs
 6
 7          1. Does this administrative regulation relate to any program, service, or requirements of a
 8   state or local government (including cities, counties, fire departments, or school districts)?
 9          Yes ______ No __X___
10          If yes, complete questions 2-4.
11
12          2. What units, parts or divisions of state or local government (including cities, counties,
13   fire departments, or school districts) will be impacted by this administrative regulation?
14
15         3. Identify each state or federal statute or federal regulation that requires or authorizes the
16   action taken by the administrative regulation.
17
18          4. Estimate the effect of this administrative regulation on the expenditures and revenues of
19   a state or local government agency (including cities, counties, fire departments, or school
20   districts) for the first full year the administrative regulation is to be in effect.
21
22        (a) How much revenue will this administrative regulation generate for the state or local
23   government (including cities, counties, fire departments, or school districts) for the first year?
24
25         (b) How much revenue will this administrative regulation generate for the state or local
26   government (including cities, counties, fire departments, or school districts) for subsequent
27   years?
28
29         (c) How much will it cost to administer this program for the first year?
30
31         (d) How much will it cost to administer this program for subsequent years?
32
33   Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the
34   fiscal impact of the administrative regulation.
35          Revenues (+/-):
36          Expenditures (+/-):
37          Other Explanation:
38
39
40



                                                     166
 1
 2 ENVIRONMENTAL AND PUBLIC PROTECTION CABINET

 3 DEPARTMENT OF PUBLIC PROTECTION

 4 OFFICE OF CHARITABLE GAMING

 5 (Amendment)

 6 820 KAR 1:058 Gaming Occasion Records.

 7 RELATES TO: KRS 238.550

 8 STATUTORY AUTHORITY: KRS 238.515(2), (4), (9), 238.550(3), (5), (6), (7), (8)

 9 NECESSITY, FUNCTION, AND CONFORMITY: KRS 238.500, 238.515, and 238.550

10 authorize the office to establish and enforce standards for accounting, recordkeeping and

11 reporting to the office to ensure charitable gaming receipts are properly accounted for by the

12 organizations. This administrative regulation establishes the minimum requirements for

13 recordkeeping.

14 Section 1. General Provisions. (1) Each licensed charitable gaming organization shall prepare

15 and maintain records for each gaming occasion. The gaming occasion records shall be prepared

16 or completed by a volunteer or chairperson of the organization. The gaming occasion records

17 shall not be completed by a bookkeeper who is independently compensated for doing so.

18 (2) Gaming proceeds shall be counted by an officer or a chairperson and the count shall be

19 verified. A count may be verified by a volunteer. [The name and signature of each person

20 counting or verifying shall appear on the gaming occasion record.]
21




                                                 167
 1 (3) A gaming occasion record shall contain:

 2 (a) The date of the gaming occasion;

 3 (b) The name and license number of the organization conducting the gaming occasion;

 4 (c) [The printed name and signature of the chairperson in charge of the gaming occasion;

 5 (d) The name and signature of the person taking the deposit from the gaming occasion;

 6 (e) The printed name and signature of the person making the deposit, if different from the person

 7 taking the deposit;

 8 (f) The printed name and signature of the person in possession of the start-up cash, and the

 9 amount and source of the start-up cash;

10 (g)] The name and address of the donor of every donated prize whose fair market value is in

11 excess of $500; [If any donated prizes are awarded during a gaming occasion, a notation of each

12 prize that was donated and the fair market value. In addition, if any item with a fair market value

13 in excess of $500 is donated, the notation for that item shall include the following information :

14 1. The date the item was received;

15 2. The date the item was awarded;

16 3. The name of the donor;

17 4. The street address, city, and state of the donor;

18 5. A description of the donated item; and

19 6. The fair market value of the donated item;]

20 (d) [(h)] A deposit reconciliation worksheet which records:

21 1. All currency, coins, checks, and credit card receipts available for deposit;




                                                    168
 1 2. All profit or loss from each gaming activity, all start-up cash, all cash from incomplete pulltab

 2 sales, any progressive game carry forward, bad checks collected and check collection fees, and

 3 all other gaming receipts that should be available for deposit; and

 4 3. Any variance between the amount of currency, coins, checks, and credit card receipts actually

 5 available for deposit, and the amount that should be available for deposit according to the

 6 gaming occasion records; [and]

 7 4. The amount of donations received at the gaming occasion which will be deposited into the

 8 general account;

 9 5. The printed name and signature of the chairperson in charge of the gaming occasion;

10 6. The printed name and signature of the person taking the deposit from the gaming occasion;

11 7. The printed name and signature of the person making the deposit, if different from the person

12 taking the deposit; and

13 8. The printed name and signature of the person in possession of the start-up cash, and the

14 amount and source of the start-up cash.

15 [(i) A copy of the gaming occasion program, which shall include a printed listing of all bingo

16 products for sale and the price of each product and all bingo games played and the payout for

17 each game.]

18 (4) [The organization shall complete Form CG-Vol for each gaming occasion and keep it with

19 the gaming occasion record for that event.

20 (5)] If an organization offers coupons for bingo paper or a card-minding device, a voucher shall

21 be completed when the coupon is redeemed and the coupon and the voucher shall be retained

22 with the gaming occasion records.




                                                   169
 1 (5) If an organization offers coupons for pulltabs, the pulltabs given away shall be recorded on

 2 the gaming occasion records and the coupon shall be retained with the gaming occasion records.

 3 (6) If the organization sells gift certificates for bingo paper or a card-minding device, the receipts

 4 for the sale shall be counted as gaming receipts on the day they are received. When the gift

 5 certificate is redeemed, a voucher shall be completed and the gift certificate and the voucher

 6 shall be retained with the gaming occasion records.

 7 (7) If the organization sells gift certificates for pulltabs, the receipts for the sale shall be counted

 8 as gaming receipts on the day they are received. When the gift certificate is redeemed, the

 9 pulltabs given away shall be recorded on the gaming occasion records and the coupon shall be

10 retained with the gaming occasion records.

11 (8) All charitable gaming receipts and records shall be kept separate from noncharitable gaming

12 receipts and records.

13 (9) [(8)] All gaming occasion records shall be retained by the organization for a period of three

14 (3) years. Gaming occasion records shall be made available for inspection and audit by the office

15 upon request.

16 (10) [(9)] Organizations shall provide records requested by the office, or any of its employees,

17 within ten (10) calendar days unless a longer response time is allowed by the request.

18 Section 2. Bingo Paper Sale Records. [(1)] Bingo paper sale records shall contain the following

19 information:

20 (1) [(a)] Attendance determined by headcount of number of people playing bingo;

21 (2) [(b)] Each type of bingo paper being sold;

22 (3) [(c)] The serial number of the set of each type of paper sold;




                                                     170
 1 (4) [(d)] The number of each type of bingo paper given away with the voucher being redeemed

 2 attached to the gaming occasion records, if applicable;

 3 (5) [(e)] Number of each type of bingo paper destroyed;

 4 (6) [(f)] The number of each type of bingo paper sold;

 5 (7) [(g)] The price of each type of bingo paper sold;

 6 (8) [(h)] The number of pickle jar, bonanza ball, or hot ball games sold;

 7 (9) [(i)] The price of pickle jar, bonanza ball, or hot ball games and whether the price is per

 8 person or per pack;

 9 (10) [(j)] The number of player pick bingo games sold;

10 (11) [(k)] The price of each player pick bingo game sold;

11 (12) [(l)] The amount of money expected to be received from the sale of bingo paper, player

12 pick, and pickle jar, bonanza ball, or hot ball for that occasion;

13 (13) [(m)] The amount of money actually received from the sale of bingo paper, player pick, and

14 pickle jar, bonanza ball, or hot ball for that occasion;

15 (14) [(n)] The cash short or cash over from the sale of bingo paper, player pick, and pickle jar,

16 bonanza ball, or hot ball for that occasion; and

17 (15) [(o)] The sales report printed from the player pick machine that includes the number of

18 games sold, price for each game, and the amount of money expected from the sale of player pick

19 games for that gaming occasion; and

20 (p) The printed name and signature of the person responsible for bingo paper sales at that gaming

21 occasion.]

22 (16) [(2)] Records of all carryover or cumulative bingo games played which [Carryover or

23 cumulative bingo game records] shall contain the following information:




                                                      171
 1 (a) The name of each progressive bingo game in play;

 2 (b) The amount carried over from the previous occasion;

 3 (c) The receipts from the current occasion;

 4 (d) The amount paid out for the current occasion; and

 5 (e) The amount carried forward to the next occasion. [; and

 6 (f) The printed name and signature of the person responsible for carryover or cumulative bingo

 7 game records at that occasion.]

 8 (17) A copy of the gaming occasion program, which shall include:

 9 (a) the organization name and license number;

10 (b) a printed listing of all bingo products for sale and the price of each product; and

11 (c) all bingo games played and the payout for each game; and

12 (18) Form CG-Vol.

13 Section 3. Bingo Payout Records. Bingo payout records shall contain the following information:

14 (1) A list of all bingo games that will be played at that gaming occasion;

15 (2) Each pickle jar, bonanza ball, or hot ball game available to be awarded[, including the

16 selected bingo ball associated with each];

17 (3) The prize expected or available to be awarded for each bingo game and door prize;

18 (4) The prize that was actually awarded for each bingo game and door prize;

19 (5) A notation for the prize awarded for each bingo game and door prize, specifying whether the

20 prize was cash, a check, or merchandise, and if merchandise, a description of that merchandise,

21 the cost of the merchandise and the fair market value of the merchandise;

22 (6) If a voucher was issued for [pulltabs,] card-minding devices, or bingo paper, the fair market

23 value of the [pulltabs,] card-minding devices, or bingo paper;




                                                    172
 1 (7) The total amount of all cash awarded for bingo prizes and door prizes;

 2 (8) The total amount of all checks issued as bingo prizes and door prizes;

 3 (9) The total cost and fair market value of all merchandise awarded for bingo prizes and door

 4 prizes;

 5 (10) A grand total of cash, checks, and fair market value of merchandise awarded for bingo

 6 prizes and door prizes, which shall not exceed $5,000; and

 7 (11) If a check from the organization’s charitable gaming checking account was issued as a prize

 8 instead of cash, the number of the check. [; and

 9 (12) The printed name and signature of the person responsible for bingo payouts during each

10 gaming occasion.]

11 Section 4. Card-minding Device Records. Card-minding device records shall contain the

12 following information:

13 (1) The type of programs loaded, including the number of faces;

14 (2) The number of units rented for each type of program;

15 (3) The number of each type of card-minding device rental given away, with the redeemed

16 voucher attached to the gaming occasion records;

17 (4) The number of units voided for each type of program;

18 (5) The price per unit for each type of program;

19 (6) The amount of money expected to be received from the rental of card-minding devices;

20 (7) The actual amount of money received from the rental of card-minding devices for that

21 gaming occasion;

22 (8) The cash short or cash over from the rental of card-minding devices for that gaming occasion;

23 (9) The total sales activity report; [and]




                                                  173
 1 (10) A copy of the gaming occasion program, which shall include:

 2 (a) the organization name and license number;

 3 (b) a printed listing of all bingo products for sale and the price of each product; and

 4 (c) all bingo games played and the payout for each game; and

 5 (11) Form CG-Vol. [The printed name and signature of the person responsible for card-minding

 6 device rentals at that gaming occasion.]

 7 Section 5. Pulltab Records. [(1)] Pulltab records shall contain the following information for each

 8 session [game]:

 9 (1) [(a)] The name, serial number, and form number of all games played;

10 (2) [(b)] The name of all progressive jackpot games in play during that gaming occasion;

11 (3) [(c)] The ticket count for each pulltab game sold;

12 (4) [(d)] The price for each ticket;

13 (5) [(e)] The prize expected or available to be awarded for each pulltab game, including the

14 progressive jackpot games;

15 (6) [(f)] The name, serial number, form number, and quantity of pulltab tickets given away as

16 prizes, excluding those pulltab games manufactured to payout in pulltabs instead of cash. [The

17 redeemed voucher shall be attached to the gaming occasion records];

18 (7) [(g)] The prize that was actually awarded for each pulltab game, including the progressive

19 jackpot games;

20 (8) [(h)] A notation for the prize awarded for each pulltab game specifying whether the prize was

21 cash, a check, or merchandise, and if merchandise, a description of that merchandise and the cost

22 [and fair market value of that merchandise];

23 (9) [(i)] If a voucher was issued for [pulltabs,] card-minding devices, or bingo paper, the fair




                                                    174
 1 market value of the [pulltabs,] card-minding devices, or bingo paper;

 2 (10) [(j)] If a pulltab game was played in conjunction with a progressive jackpot game, as

 3 designed by the manufacturer, the amount contributed to the progressive jackpot;

 4 (11) [(k)] The cash short or cash over for each pulltab session [game];

 5 (12) [(l)] The total amount of all cash awarded for pulltab prizes;

 6 (13) [(m)] The total amount of all checks issued as pulltab prizes;

 7 (14) [(n)] [The total fair market value of all merchandise awarded for pulltab prizes;]

 8 [(o)] The total cost of [amount of money paid for] all merchandise awarded for pulltab prizes;

 9 (15) [(p)] If a check from the organization’s charitable gaming checking account was issued as a

10 pulltab prize instead of cash, the number of the check;

11 (16) [(q)] The total amount of money from any incomplete sale of pulltab games; [and

12 (r) The printed name and signature of the person responsible for the payouts during each gaming

13 occasion].

14 (17) [(2)] Records of any progressive pulltab games sold which [Progressive pulltab records]

15 shall contain the following information:

16 (a) The name of each progressive pulltab jackpot game in play;

17 (b) The amount carried over from the previous occasion;

18 (c) The receipts from the current occasion;

19 (d) The amount paid out for the current occasion;

20 (e) The amount carried forward to the next occasion; and

21 (f) The serial number of all games that contributed to the prize pool; and

22 [(g) The printed name and signature of the person responsible for progressive pulltab games at

23 that occasion.]




                                                   175
 1 (18) Form CG-Vol.

 2 Section 6. Raffle Records. (1) If the raffle tickets sell for one hundred (100) dollars or more, the

 3 [Except as provided in subsection (2) of this section,] raffle records shall contain the following

 4 information:

 5 (a) The number of raffle tickets printed;

 6 (b) The sales price for each ticket;

 7 (c) The date raffle ticket sales began;

 8 (d) The date the raffle drawing was held;

 9 (e) A voided raffle ticket or copy of a raffle ticket;

10 (f) If tickets are given to volunteers to sell, a list of each volunteer's name with the total number

11 of the tickets and ticket numbers given to them;

12 (g) The total amount of money collected for the raffle event;

13 (h) The total number of ticket stubs collected from the sale of all raffle tickets for the raffle

14 event;

15 (i) The total amount of money that should have been collected based on the number of ticket

16 stubs collected for the raffle event;

17 (j) Total cash short or cash over amount from raffle ticket sales for the raffle event;

18 (k) A list of all raffle prizes awarded;

19 (l) A notation for the prize awarded for each raffle specifying whether the prize was cash, a

20 check, or merchandise, and if merchandise, a description of that merchandise and the cost [and

21 fair market value];

22 (m) The total amount of all cash awarded for raffle prizes;

23 (n) The total amount of all checks issued as raffle prizes;




                                                     176
 1 (o) [The total fair market value of all merchandise awarded as raffle prizes;]

 2 [(p)] If a check from the organization’s charitable gaming checking account was issued as a prize

 3 instead of cash, the number of the check;

 4 (p) [(q)] Each winning ticket stub;

 5 (q) [(r)] All unsold tickets;

 6 (r) [(s)] A list of all raffle expenses including a copy of all invoices supporting each expense; and

 7 (s) [(t)] The printed name and signature of the person responsible for the raffle event records.

 8 (2) If the raffle tickets sell for fifty (50) dollars to one hundred (100) dollars, the raffle records

 9 shall contain the following information:

10 (a) The number of raffle tickets printed;

11 (b) The sales price for each ticket;

12 (c) The date raffle ticket sales began;

13 (d) The date the raffle drawing was held;

14 (e) A voided raffle ticket or copy of a raffle ticket;

15 (f) If tickets are given to volunteers to sell, a list of each volunteer's name with the total number

16 of the tickets and ticket numbers given to them;

17 (g) The total amount of money collected for the raffle event;

18 (h) The total number of ticket stubs collected from the sale of all raffle tickets for the raffle

19 event;

20 (i) The total amount of money that should have been collected based on the number of ticket

21 stubs collected for the raffle event;

22 (j) Total cash short or cash over amount from raffle ticket sales for the raffle event;

23 (k) A list of all raffle prizes awarded;




                                                     177
 1 (l) A notation for the prize awarded for each raffle specifying whether the prize was cash, a

 2 check, or merchandise, and if merchandise, a description of that merchandise and the cost;

 3 (m) The total amount of all cash awarded for raffle prizes;

 4 (n) The total amount of all checks issued as raffle prizes;

 5 (o) If a check from the organization’s charitable gaming checking account was issued as a prize

 6 instead of cash, the number of the check;

 7 (p) Each winning ticket stub;

 8 (q) A list of all raffle expenses including a copy of all invoices supporting each expense; and

 9 (r) The printed name and signature of the person responsible for the raffle event records.

10 (3) If the raffle tickets sell for more than one (1) dollar but less than fifty (50) dollars, the raffle

11 records shall contain the following information:

12 (a) The number of raffle tickets printed;

13 (b) The sales price for each ticket;

14 (c) The date raffle ticket sales began;

15 (d) The date the raffle drawing was held;

16 (e) A voided raffle ticket or copy of a raffle ticket;

17 (f) The total amount of money collected for the raffle event;

18 (g) The total number of ticket stubs collected from the sale of all raffle tickets for the raffle

19 event;

20 (h) The total amount of money that should have been collected based on the number of ticket

21 stubs collected for the raffle event;

22 (i) Total cash short or cash over amount from raffle ticket sales for the raffle event;

23 (j) A list of all raffle prizes awarded;




                                                     178
 1 (k) A notation for the prize awarded for each raffle specifying whether the prize was cash, a

 2 check, or merchandise, and if merchandise, a description of that merchandise and the cost;

 3 (l) The total amount of all cash awarded for raffle prizes;

 4 (m) The total amount of all checks issued as raffle prizes;

 5 (n) If a check from the organization’s charitable gaming checking account was issued as a prize

 6 instead of cash, the number of the check;

 7 (o) Each winning ticket stub;

 8 (p) A list of all raffle expenses including a copy of all invoices supporting each expense; and

 9 (q) The printed name and signature of the person responsible for the raffle event records.

10 (4) [(2)] If the raffle ticket sells for one (1) dollar or less, [is conducted pursuant to 820 KAR

11 1:050, Section 1(4),] the raffle records shall contain the following information:

12 (a) The beginning and ending serial number or ticket number for each roll of tickets sold or the

13 beginning and ending number of the tickets printed;

14 (b) The quantity of tickets sold;

15 (c) The sales price of the tickets;

16 (d) The date of the raffle;

17 (e) The total amount of money collected for the raffle event;

18 (f) The total amount of money that should have been collected based on the number of ticket

19 stubs collected for the raffle event;

20 (g) Total cash short or cash over amount from raffle ticket sales for the raffle event;

21 (h) A list of all raffle prizes awarded;




                                                    179
 1 (i) A notation for the prize awarded for each raffle specifying whether the prize was cash, a

 2 check, or merchandise, and if merchandise, a description of that merchandise and the cost [and

 3 fair market value];

 4 (j) The total amount of all cash awarded for raffle prizes;

 5 (k) The total amount of all checks issued as raffle prizes;

 6 (l) [The total fair market value of all merchandise awarded as raffle prizes;]

 7 [(m)] If a check from the organization's charitable gaming checking account was issued as a

 8 prize instead of cash, the number of the check;

 9 (m) [(n)] Each winning ticket stub;

10 (n) [(o)] A list of all raffle expenses, including a copy of all invoices supporting each expense;

11 and

12 (o) [(p)] the printed name and signature of the person responsible for the raffle event records.

13 Section 7. Charity Fundraising Event Records. (1) Charity fundraising event records for a

14 festival or carnival shall contain the following information:

15 (a) The name of each [type of] game of chance played;

16 (b) The price to play each [type of] game of chance;

17 (c) The adjusted gross receipts from the sale of each [amount of money received from the sale of

18 each type of] game of chance;

19 (d) The grand total of adjusted gross receipts [money] received from the play [sale] of all games

20 of chance;

21 (e) [The total amount of all cash awarded for each type of game of chance prize and door prize;

22 (f)] The total amount of all checks issued for each [type of] game of chance prize and door prize;




                                                     180
 1 (f) [(g)] The total cost [and fair market value] of all merchandise awarded for each type of game

 2 of chance prize and door prize;

 3 (g) [(h)] If a check from the organization’s charitable gaming checking account was issued as a

 4 prize instead of cash, the number of the check;

 5 (h) [(i)] If bingo games are conducted, accurate bingo paper sale records, card-minding device

 6 records, and bingo payout records;

 7 (i) [(j)] If pulltabs are sold, accurate pulltab records;

 8 (j) [(k)] If a raffle is conducted, accurate raffle records; [within the period of the charity

 9 fundraising event, a listing of the raffle as a type of game of chance along with other games of

10 chance;

11 (l) If the charity fundraising event has a capital prize raffle for which sales were made outside the

12 charity fundraising event period as well as during the charity fundraising event, accurate raffle

13 records as required by Section 6 of this administrative regulation;

14 (m)] (k) If the charity fundraising event continues for more than one (1) day, a summary of the

15 required information for each day; and

16 (l) [(n)] The printed name and signature of each person responsible for the gaming at the charity

17 fundraising event.

18 (2) Special limited game records for a charity fundraising event shall contain:

19 (a) The name of each game to be played;

20 (b) The adjusted gross receipts for each game for each day of the charity fundraising event;

21 (c) A list of all merchandise prizes awarded and the cost; and

22 (d) The printed name and signature of each person responsible for special limited game records

23 at a charity fundraising event.




                                                      181
 1 Section 8. Special Limited Charity Fundraising Event Records. (1) Special limited charity

 2 fundraising event records shall contain the following information for special limited charitable

 3 games:

 4 (a) The name of each game to be played;

 5 (b) The quantity of scrip, chips, or imitation money the central bank started with prior to any

 6 sales, and the corresponding cash amount associated with each denomination of scrip, chips, or

 7 imitation money;

 8 (c) The quantity of scrip, chips, or imitation money the central bank sold during the special

 9 limited charity fundraising event;

10 (d) The amount of money received by the central bank from the sale of scrip, chips, or imitation

11 money;

12 (e) Cash short or cash over from the sale of scrip, chips, or imitation money;

13 (f) The quantity of scrip, chips, or imitation money collected by the central bank and redeemed

14 for prizes;

15 (g) Prizes awarded by the central bank; and

16 (h) A notation for prizes awarded specifying whether each prize was cash, check, or

17 merchandise, and if merchandise, a description of that merchandise and the cost. [and fair market

18 value;

19 (i) The printed name and signature of each person of the person(s) responsible for special limited

20 charity fundraising event records.]

21 (2) The amount of money corresponding to the scrip, chips, or imitation money collected by the

22 central bank shall be compared to the sale of scrip, chips, or imitation money by the central bank




                                                   182
 1 at the conclusion of the special limited charity fundraising event. Any variance shall be

 2 documented and cash short or cash over shall be determined.

 3 (3) For all tournaments played during special limited charity fundraising events, the special

 4 limited charity fundraising event records shall contain the following information in addition to

 5 the regular records required at special limited charity fundraising events:

 6 (a) A record of attendance shall be kept for the special limited charitable games; and

 7 (b) A copy of the gaming occasion program, which shall include:

 8 1. the organization name and license number;

 9 2. the cost to enter, the cost of the buy backs, the cost of the add ons;

10 3. the rules of the game,

11 4. the manner for raising blinds or closing tables, and

12 5. the prizes. The prizes may be listed as a percentage of the receipts. [The cost to enter, the

13 cost of the buy backs, the rules of the game, the manner for raising blinds or closing tales, and

14 the prizes shall be listed on the gaming occasion program. The prizes may be listed as a

15 percentage of the receipts.]

16 (4) If bingo games are conducted, accurate bingo paper sale records, card-minding device

17 records, and bingo payout records shall be maintained.

18 (5) If pulltabs are sold, accurate pulltab records shall be maintained.

19 (6) If raffles are [Raffles] conducted at a special limited charity fundraising event, accurate raffle

20 records shall be maintained. [shall be accounted for in the following manner:

21 (a) If a raffle is conducted within the period of the special limited charity fundraising event, a

22 record of raffle receipts and payouts shall be listed on the special limited charity fundraising

23 event gaming occasion record; and




                                                     183
 1 (b) If the special limited charity fundraising event has a capital prize raffle for which sales were

 2 made outside the special limited charity fundraising event period, as well as during the special

 3 limited charity fundraising event, accurate raffle records shall be maintained according to

 4 Section 6 of this administrative regulation.]

 5 (7) The organization shall complete Form CG-Vol and keep it with the gaming occasion record

 6 for that event.

 7 Section 9. Incorporation by Reference. (1) Form CG-Vol, "Charitable Gaming Volunteer Sign

 8 Up Sheet (04/07) [(2/06)]" is incorporated by reference.

 9 (2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at

10 the Office of Charitable Gaming, Environmental and Protection Cabinet, 132 Brighton Park

11
12 Boulevard, Frankfort, Kentucky 40601, Monday through Friday, 8 a.m. to 4:30 p.m.




                                                   184
READ AND APPROVED:




___________________________
___________
       _____________________
_
Tony S. Royalty, Executive
Director
       Date
Office of Charitable Gaming




___________________________
___________
      _____________________
_
Timothy LeDonne,
Commissioner
      Date
Department of Public Protection




___________________________
___________
        _____________________
_
Lloyd R. Cress, Deputy Secretary
                       Date
Environmental and Public
Protection Cabinet
For Teresa J. Hill, Secretary
Environmental and Public
Protection Cabinet




                                   Page 1 of 223
   PUBLIC HEARING AND                    Division of Licensing and
    PUBLIC COMMENT                 Compliance
         PERIOD                          Office of Charitable Gaming
                                         132 Brighton Park Boulevard
A public hearing on this                 Frankfort, Kentucky 40601
administrative regulation shall be       Phone: (502) 573-5528
held on May 22, 2007 at 10:00            Fax: (502) 573-6625
am in the hearing room of the
Office of Charitable Gaming,
132 Brighton Park Boulevard,
Frankfort, Kentucky.

Individuals interested in being
heard at this hearing shall notify
this agency, in writing five (5)
workdays prior to the hearing, of
their intent to attend. If no
notification of intent to attend the
hearing is received by that date,
the hearing may be canceled.
This hearing is open to the
public. Any person who wishes
to be heard will be given an
opportunity to comment on the
proposed             administrative
regulation.

A transcript of the public hearing
will not be made unless a written
request for a transcript is made.
If you do not wish to be heard at
the public hearing, you may
submit written comments on the
proposed            administrative
regulation. Written comments
shall be accepted until close of
business Thursday, May 31,
2007.

Send written notification of
intent to be heard at the public
hearing or written comments on
the proposed administrative
regulation to the contact person.

CONTACT PERSON:
       Leah Cooper Boggs
       Assistant Director        of
Licensing


                                         Page 2 of 223
  REGULATORY IMPACT                   should be recorded by the organization    (mm)         How the
        ANALYSIS
 AND TIERING STATEMENT                at a gaming occasion.                        amendment will change

Contact Person: Leah Cooper           (c) How does this administrative             this existing

Boggs                                 regulation conform to the content of         administrative regulation?

(1) Provide a brief summary of:       the authorizing statutes:                    The amendment

820 KAR 1:058 Gaming                  KRS 238.515(2) provides that the             simplifies the signature

Occasion Records.                     Office will establish and enforce            requirements for the

   (l) What this administrative       reasonable standards for the conduct         gaming occasion records,

        regulation does:              of charitable gaming and KRS                 simplifies the

   The statute requires the           238.515(4) requires the Office to            recordkeeping required

   organizations to keep              establish standards for accounting,          for charity fundraising

   accurate records and report        recordkeeping, and reporting.                events, and reduces the

   regarding their gaming             (d) How this administrative regulation       records required to be

   events. However, there is no       currently assists or will assist in the      kept for most raffles.

   explanation of what                effective administration of the           (nn)         The necessity of

   information needs to be            statutes:                                    the amendment to this

   recorded and available for         This administrative regulation assists       administrative regulation:

   audit. This regulation gives       in the effective administration of the       The amendment is

   guidance to organizations          statutes because it explains the             necessary to ease the

   regarding what information is      expectations regarding what                  requirements on the

   required.                          information should be recorded at a          organizations for raffles

   (b) The necessity of this          gaming event.                                and charity fundraising

   administrative regulation:      (2) If this is an amendment to an existing      events.

   This regulation is needed to    administrative regulation, provide a brief   (oo)         How the

   clarify what information        summary of:                                     amendment conforms to


                                                  Page 3 of 223
       the content of the             This regulation will affect approximately (5) Provide an estimate of how

       authorizing statutes: The      700 organizations.                            much it will cost to implement

       amendment conforms to          (4) Provide an analysis of how the entities this regulation:

       the statute because it still   identified in question (3) will be impacted         (w) Initially: None.

       requires that receipts be      by either the implementation of this                (x) On a continuing basis.

       reported but it eases          administrative regulation, if new, or by               None.

       requirements on non-           the change, if it is an amendment,            (6) What is the source of funding

       essential information.         including:                                    to be used for the implementation

   (pp)        How the                (a) List the actions that each of the and enforcement of this

       amendment will assist in       regulation entities identified in question administrative regulation?

       the effective                  (3) will have to take to comply with this Charitable gaming is funded by

       administration of the          administrative regulation or amendment: the regulated community.

       statutes: The amendment The organizations will have to obtain the (7) Provide an assessment of

       will make it easier for the new regulation.                                  whether an increase in fees or

       organizations to conduct       (b) In complying with this administrative funding will be necessary to

       gaming and record              regulation or amendment, how much will implement this administrative

       essential information          it cost each of the entities identified in regulation, if new, or by the

       because it reduces the         question (3): None.                           change if it is an amendment.

       information required.          (c) As a result of compliance, what No fee increase will be necessary

(3) List the type and number of       benefits will accrue to the entities to implement this regulation.

individuals, businesses,              identified in question (3):                   (8) State whether or not this

organizations, or state and local     The recordkeeping requirements for the administrative regulation

governments affected by this          organizations are reduced, particularly for establishes any fees or directly or

administrative regulation:            raffles and charity fundraising events.       indirectly increases any fees:

                                                                                    No.


                                                   Page 4 of 223
(9) TIERING: Is tiering applied?

Tiering was applied to the raffle

recordkeeping regulations. The

organizations are required to

keep different records depending

on the price of the raffle tickets

with the requirements increasing

as the ticket price goes up.




                                     Page 5 of 223
        FISCAL NOTE ON                 school districts) for the first year?

        STATE OR LOCAL                        (b) How much revenue will this
                                       administrative regulation generate for the
        GOVERNMENT                     state or local government (including
                                       cities, counties, fire departments, or
                                       school districts) for subsequent years?

Regulation No. 820 KAR 1:058                             much will         cost to
                                            (c) How Contact Person:it Leah Cooper Boggs
                                       administer this program for the first year?
       1. Does this administrative
regulation relate to any program,            (d) How much will it cost to
service, or requirements of a state    administer this program for subsequent
or local government (including         years?
cities, counties, fire departments,
or school districts)?              Note: If specific dollar estimates cannot
       Yes ______               No be determined, provide a brief narrative to
___X__                             explain the fiscal impact of the
       If yes, complete questions  administrative regulation.
2-4.                                     Revenues (+/-):
                                         Expenditures (+/-):
      2. What units, parts or            Other Explanation:
divisions of state or local
government (including cities,
counties, fire departments, or
school districts) will be impacted
by this administrative regulation?

      3. Identify each state or
federal    statute   or    federal
regulation that requires or
authorizes the action taken by the
administrative regulation.

       4. Estimate the effect of
this administrative regulation on
the expenditures and revenues of
a state or local government
agency        (including     cities,
counties, fire departments, or
school districts) for the first full
year the administrative regulation
is to be in effect.

      (a) How much revenue will
this administrative regulation
generate for the state or local
government (including cities,
counties, fire departments, or


                                                    Page 6 of 223
DETAILED SUMMARY OF                                                            Commonwealth of Kentucky
                                                                           Environmental and Public Protection
                                                                                        Cabinet
MATERIAL INCORPORATED                                                       OFFICE OF CHARITABLE GAMING

BY REFERENCE

           820 KAR 1:058

      Gaming Occasion Records

(3)                820 KAR 1:058

incorporates by reference Form

CG-Vol,       “Charitable Gaming

Volunteer Sign Up Sheet”, which
                                         FOR OFFICE USE ONLY:
                                            $25 Processing Fee Paid

is the form that an organization            $       LICENSE FEE PAID



would complete at the gaming

occasion      to   verify   that   its

volunteers have not volunteered

at     more    than   the    allowed

occasions.

(2)      The total number of pages

that the Office of Charitable

Gaming has incorporated by

reference is one (1).




                                                           Page 7 of 223
                            Form CG-1                                          REV. 4/07




      APPLICATION FOR LICENSE FOR CHARITABLE ORGANIZATION

A COMPLETE APPLICATION MUST BE RECEIVED AT LEAST 60 DAYS PRIOR TO THE
 INTENDED START OF LICENSE OR BEFORE THE EXPIRATION OF YOUR CURRENT
                               LICENSE.



                             GENERAL ORGANIZATION INFORMATION


1.   Organization’s Federal Employer Identification No.

2.   Organization’s Name:                                                              ORG-

     Mailing Address:

     City:                                  State:           Zip Code:                     Telephone: (   )

     Email Address:                                          Web Address:

3.   Organization’s Physical Location:

     City: ____________________County:____________________State:                       _____Zip Code:____________
     Telephone: (    )       ________

     List any other Charitable Organizations that are operated from this physical location:




4.   Does your organization have offices in any other county(ies)?           Yes                 No

     If ‘Yes,” please provide the following for each office (attach additional sheets, if necessary).

     Physical Address:

     City:______________________County:___________________State:                       ___Zip Code:           ______
     Telephone: (    )      __________

     Date organization was established in the county:

     Name of any other businesses or charitable organizations that are operated from that location:

     _____________________________________                 ________________________________________




                                        ORGANIZATIONAL STRUCTURE


                                                     Page 8 of 223
5.   Does your organization have a 501(c) designation from the Internal Revenue Service?
     (This also includes organizations that are covered by a Group Ruling.)

     Yes                             No                      If ‘Yes,’ provide a copy of the acknowledgment letter from the IRS.
                                                                       & check what type
                        □ 501(c) 3         □501(c) 4          □501(c) 8           □501(c) 10         □501(c) 19
                                                                   OR

     Is your organization a Common School as defined in KRS 158.030, an Institution of Higher Education as
     defined in KRS 164A.305, or a State College or University as provided for in KRS 164.290? (NOTE: Does not
     include PTA, PTO or Boosters)

     Yes                             No                      If ‘Yes,’ omit Questions 8, 9, 10a, 10b and 10c

       If you have answered ‘No,” to both of the questions listed above, your organization is currently ineligible for a Charitable Gaming
                                      License – DO NOT CONTINUE FURTHER WITH THIS APPLICATION.

6.   Date organization was established in Kentucky:
                                                                  (month)                               (year)

7a. County in which charitable gaming will be conducted:___________________________________

7b. Date office was established in the county in which charitable gaming will be conducted:


                                                                  (month)                               (year)



8.   Provide a copy of the organization’s Articles of Incorporation.
     (The charitable purpose must be outlined within the Articles)

                                                                   OR
     If the organization is not currently incorporated or the charitable purposes are not outlined within the
     Articles, provide a statement of the charitable purpose(s) for which the organization was established:

     Statement of Purpose defined below:                                    Articles of Incorporation attached
                                                                            or are on file




                                                          Page 9 of 223
9.     Provide a copy of the organization’s Bylaws.
       (The organizational structure and management must be outlined within the Bylaws.)

                                                             OR

       If the organization does not have Bylaws, provide a statement describing organizational structure and
       management:

       Statement of Organizational Structure                       Bylaws attached ____________
       and Management defined below:                               or are on file




                            ORGANIZATION REVENUES/EXPENDITURES

NOTE: In lieu of the above information, attach a detailed annual financial statement that contains the above
required information.

10a.      Provide details below of how the organization made money.
             For New Applications, provide information for the last three (3) prior calendar years.
             For Renewal Applications, without a break in licensing, provide information for one (1) prior calendar year.
             For Renewal Applications, with a break in licensing, provide information for three (3) prior calendar years.

                                           AMOUNT                          AMOUNT                      AMOUNT
          TYPE OF REVENUE               1 YEAR PRIOR                    2 YEARS PRIOR               3 YEARS PRIOR



                               $                               $                           $


                               $                               $                           $


                               $                               $                           $


                               $                               $                           $


                               $                               $                           $


                               $                               $                           $


                               $                               $                           $


                               $                               $                           $


                               $                               $                           $


                               $                               $                           $


                               $                               $                           $


                               $                               $                           $


                               $                               $                           $


                                                       Page 10 of 223
                                          AMOUNT                        AMOUNT                        AMOUNT
10b.                                                           2 YEARS toward their charitable YEARS PRIOR
          Provide details below of how the organization spent money PRIOR
       TYPE OF EXPENDITURE           1 YEAR PRIOR                                             3 purpose.



               For New Applications, provide information for three (3) prior calendar years.
               For Renewal Applications, without a break in licensing, provide information for one (1) prior calendar year.
               For Renewal Applications, with a break in licensing, provide information for three (3) prior calendar years.




                                                      Page 11 of 223
                                          GAMING INFORMATION


11a.   Does your organization plan to conduct bingo? Yes _____        No _____

       If no, continue with Question 12.

       First Bingo Session

       Day of the week session is to be held:                            Beginning Time:          am/pm

       Location of first bingo session:


       Name of building (also include the commonly used name of the building)


       Street Address


       City                                                   State                        Zip Code

                                                               (     )
       County                                                  Telephone


       Facility contact person at this location

       Does the Organization own this facility?        Yes                   No

       If ‘No,’ please provide a signed lease agreement.


       Second Bingo Session (Complete only if different than First Bingo Session)

       Day of the week session is to be held:                            Beginning Time:          am/pm

       Location of second bingo session:


       Name of building (also include the commonly used name of the building)


       Street Address


       City                                                   State                        Zip Code

                                                               (     )
       County                                                  Telephone


       Facility contact person at this location

       Does the Organization own this facility?        Yes                   No

       If ‘No,’ please provide a signed lease agreement.



                                                  Page 12 of 223
11b.   Will your organization sell charity game tickets (pulltabs) during their bingo session?

                                       □ Yes           □ No
12.    Does your organization wish to sell pulltabs at any times other than a bingo session, special limited
       charity fundraising event or charity fundraising event? Yes _____ No _____

       If no, continue with Question 13.

       Day(s) of the week pulltabs will be sold:

       Beginning Time:                  am/pm          Ending Time: __________ am/pm

       Location that pulltabs will be sold:


       Name of Building (also include the commonly used name of the building)

       Street Address

       City                                                     State                       Zip Code
                                                                 (     )
       County                                                    Telephone

       Facility Contact Person at This Location

       Does the Organization own this facility?        Yes                      No

       If ‘No,’ please provide a signed lease agreement.

13.    Does your organization wish to conduct a raffle at any other time than a bingo session, special limited
       charity fundraising event or charity fundraising event? Yes _____ No _____

       If no, continue with Question 14.

       Day(s) of the week raffle drawing will occur:

       Time:            am/pm


       Location that raffle drawing will occur:


       Name of Building (also include the commonly used name of the building)

       Street Address

       City                                                     State                       Zip Code
                                                                 (     )
       County                                                    Telephone

       Facility Contact Person at This Location

       Does the Organization own this facility?        Yes                      No

       If ‘No,’ please provide a signed lease agreement.

                                           (Attach additional sheets, if necessary)



                                                  Page 13 of 223
14.   Does your organization wish to conduct non-cash prize wheel games where the non-cash prize does
      not exceed $100 at any other time other than a bingo session, special limited charity fundraising event
      or charity fundraising event?

      If no, continue with Question 15.

      Day(s) of the week non-cash prize wheel game will occur:

               Time:           am/pm

      Location that non-cash prize wheel game will occur:


      Name of Building (also include the commonly used name of the building)


      Street Address


      City                                                  State                          Zip Code

                                                                (     )
      County                                                    Telephone


      Facility Contact Person at This Location

      Does the Organization own this facility?        Yes                   No

      If ‘No,’ please provide a signed lease agreement.


      In order to conduct a special limited charity fundraising event or charity fundraising event, please
      complete form CG-Schedule-A as required by 820 KAR 1:055.




                                               Page 14 of 223
                                                 CEO/CFO INFORMATION



15.                       Chief Executive Officer                                               Chief Financial Officer


      Name:                                                               Name:

      Title: _________________________________                            Title: _________________________________


                         Mailing Address                                                      Mailing Address


      Street/PO Box                                                       Street/PO Box


      City                                       State                    City                                          State


      County                                     Zip Code                 County                                        Zip Code

      (          )                    (      )                                (       )                     (       )
      Telephone (Day)                Telephone (Eve)                      Telephone (Day)                 Telephone (Eve)

             /       /                           -       -                        /       /                             -       -
      DOB                            SSN                                  DOB                             SSN

                         Physical Address                                                     Physical Address
                         (If different from above)                                            (If different from above)




      Street                                                              Street

      City                                       State                    City                                          State


      County                                     Zip Code                 County                                        Zip Code



      NOTE: THE ABOVE-LISTED OFFICERS ARE SUBJECT TO A STATE AND FEDERAL CRIMINAL HISTORY CHECK WHICH MAY
      REQUIRE FINGERPRINTING. IF NEEDED, ADDITIONAL INFORMATION WILL BE FORWARDED TO YOU.




                                                             Page 15 of 223
                                          OTHER OFFICER INFORMATION


16.   Provide the following information for all other Officers not listed in Question 17 above:




      Name:                                                               Name:

      Title:                                                              Title:



                           Mailing Address                                                      Mailing Address


      Street/PO Box                                                       Street/PO Box


      City                                       State                    City                                          State


      County                                     Zip Code                 County                                        Zip Code

       (         )                    (      )                                (       )                     (       )
      Telephone (Day)                Telephone (Eve)                      Telephone (Day)                 Telephone (Eve)

             /       /                           -       -                        /       /                             -       -
      DOB                            SSN                                  DOB                             SSN

                         Physical Address                                                     Physical Address
                         (If different from above)                                            (If different from above)




      Street                                                              Street


      City                                       State                    City                                          State


      County                                     Zip Code                 County                                        Zip Code




                                                             Page 16 of 223
16.   (Continued)




      Name:                                                               Name:

      Title:                                                              Title:



                          Mailing Address                                                      Mailing Address


      Street/PO Box                                                       Street/PO Box


      City                                       State                    City                                         State


      County                                     Zip Code                 County                                       Zip Code

       (         )                    (      )                             (         )                     (       )
      Telephone (Day)                Telephone (Eve)                      Telephone (Day)                Telephone (Eve)

             /       /                           -       -                       /       /                             -       -
      DOB                            SSN                                  DOB                            SSN


                         Physical Address                                                    Physical Address
                         (If different from above)                                           (If different from above)




      Street                                                              Street


      City                                       State                    City                                         State


      County                                     Zip Code                 County                                       Zip Code




                                                 (Attach additional sheets, if necessary.)




                                                             Page 17 of 223
                                 GAMING CHAIRPERSON INFORMATION


17.   Provide the following information for designated Gaming Chairpersons who will be involved in the
      management and supervision of Charitable Gaming. You must list at least two (2) persons other than
      the Chief Executive Officer of the organization.


      Name:                                                              Name:

             Employee                     Member                                Employee                      Member

      If employee, please provide the job title or position              If employee, please provide the job title or position
      held and describe regular job duties:                              held and describe regular job duties:




                           Mailing Address                                                    Mailing Address


      Street/PO Box                                                      Street/PO Box


      City                                       State                   City                                         State


      County                                     Zip Code                County                                       Zip Code

       (         )                    (      )                            (         )                     (       )
      Telephone (Day)                Telephone (Eve)                     Telephone (Day)                Telephone (Eve)


             /       /                           -       -                      /       /                             -       -
      DOB                            SSN                                 DOB                            SSN

                         Physical Address                                                   Physical Address
                         (If different from above)                                          (If different from above)




      Street                                                             Street


      City                                       State                   City                                         State


      County                                     Zip Code                County                                       Zip Code


      NOTE: OFFICERS AND CHAIRPERSONS ARE SUBJECT TO A STATE AND FEDERAL CRIMINAL HISTORY CHECK WHICH MAY
      REQUIRE FINGERPRINTING. IF SO, ADDITIONAL INFORMATION WILL BE FORWARDED TO YOU.




                                                             Page 18 of 223
17.     (Continued)

        Name:                                                               Name:

               Employee                     Member                                  Employee                      Member

        If employee, please provide the job title or position               If employee, please provide the job title or position
        held and describe regular job duties:                               held and describe regular job duties:




                             Mailing Address                                                      Mailing Address


        Street/PO Box                                                       Street/PO Box

        City                                       State                    City                                          State

        County                                     Zip Code                 County                                        Zip Code
         (         )                    (      )                                (       )                     (       )
        Telephone (Day)                Telephone (Eve)                      Telephone (Day)                 Telephone (Eve)


               /       /                           -       -                        /       /                             -       -
        DOB                            SSN                                  DOB                             SSN

                           Physical Address                                                     Physical Address
                           (If different from above)                                            (If different from above)


        Street                                                              Street

        City                                       State                    City                                          State

        County                                     Zip Code                 County                                        Zip Code



                                            DISTRIBUTOR INFORMATION

18. List the Distributors that will be utilized for purchasing gaming supplies and equipment. (pursuant to
    KRS 238.530).


      Distributor Name                                                     Distributor Name

       DIS -                                                                DIS -
      KY License Number                                                    KY License Number


      Distributor Name                                                     Distributor Name

       DIS -                                                                DIS -
      KY License Number                                                    KY License Number


                                                               Page 19 of 223
Page 20 of 223
 1                                       TAX INFORMATION AUTHORIZATION
 2                                                        (Please Type or Print)
 3
 4
 5   TAXPAYER INFORMATION:
 6
 7            Taxpayer Name:
 8
 9
10            Address:
11
12
13
14
15
16            Employer Identification Number:
17
18
19
20
21            Taxpayer Telephone Number:
22
23
24
25
26            Type of License Applied For:
27
28
29
30            Tax Period (Year):                                                   TAX YEAR
31
32
33
34   This Tax Information Authorization allows the Internal Revenue Service to disclose Federal Tax
35   Information, as necessary, with respect to all gaming/gambling activities conducted by the Organization for
36   the period(s) indicated above to the Kentucky State Police and the Environmental & Public Protection
37   Cabinet, Office of Charitable Gaming. The communications authorized include both written as well as oral
38   representation by and between these agencies. These communications include but are not limited to tax or
39   information matters relating to the filing of Forms 990, 990-T, 940, 941, 945, 1120, 730 and 11-C for the
40   above tax period.
41
42   If signed by a corporate officer, partner, guardian, executor, receiver, administrator or trustee, I certify that
43   I have the authority to execute this form with respect to the tax matters/period covered.
44
45
46
47                       Signature of Chief Executive Officer                                      Signature of Chief
48   Financial Officer
49
50
51                              Printed Officer’s Name                                                    Printed
52   Officer’s Name
53


                                                                   21
 1
 2                              Title                                                                     Title
 3
 4
 5                         Telephone Number                                                          Telephone
 6   Number
 7
 8
 9                              Date                                                                      Date
10
11                                      BOTH SIGNATURES ARE REQUIRED
12
13           This authorization is provided with the understanding the Federal Tax Information will be used only
14   for the intended purposes by officers and employees of the agency with an official need for the information
15   in the performance of their official duties. This authorization remains valid unless revoked by the taxpayer
16   by the mailing of a copy of this authorization to the address indicated below. Notice of any revocation of
17   this authorization will by forwarded to the indicated agencies described above.
18
19
20                                      INTERNAL REVENUE SERVICE
21                                         PO BOX 13163, ROOM 624
22                                     BALTIMORE, MARYLAND 21203
23                                  PH: (410) 962-3063 FAX: (410) 962-0132
24
25
26 PURSUANT TO KRS 238.525(6), YOU MUST NOTIFY THE OFFICE
27 OF CHARITABLE GAMING, IN WRITING, OF ANY CHANGE IN THE
28 INFORMATION PROVIDED IN THIS APPLICATION WITHIN THIRTY
29      (30) DAYS OF THE DATE THE CHANGE OCCURRED.
30
31                                 CERTIFICATION (BY AN OFFICER)
32
33   I certify, under penalty of perjury, that I am an Officer authorized by the
34   applicant to make application for licensure and that I have examined this
35   application for licensure, including any accompanying materials, and all
36   information submitted is, to the best of my knowledge and belief, true and
37   correct. I further certify that the applicant agrees to comply with all
38   applicable laws and administrative regulations regarding charitable gaming
39   in the Commonwealth of Kentucky.
40
41   Signature: ________________________________________________
42
43   Print name: _______________________________________________
44
45   Title:____________________________________________________


                                                         22
 1
 2   Date: __________________________________________________
 3
 4   Mail completed original application (including all required attachments),
 5   together with the $25.00 processing fee made payable to “Kentucky State
 6   Treasurer” to:
 7
 8                       COMMONWEALTH OF KENTUCKY
 9               ENVIRONMENTAL & PUBLIC PROTECTION CABINET
10                       OFFICE OF CHARITABLE GAMING
11                    DIVISION OF LICENSING & COMPLIANCE
12                       132 BRIGHTON PARK BOULEVARD
13                            FRANKFORT, KY 40601
14
15   If you need assistance completing this application, please call the Licensing
16   Branch at (502) 573-5528 or Toll-free in Kentucky, (800) 729-5672.
17
18                    Visit our website at: http://www.ocg.ky.gov
19   Checklist:
20         Attached signed tax authorization must be signed by CEO &
21            CFO
22         Attached lease (if applicable)
23         Enclosed $25 processing fee
24         All blanks are completed
25         Enclosed evidence of tax-exempt status
26
27     YOUR APPLICATION WILL NOT BE PROCESSED UNTIL ALL INFORMATION IS
28                                COMPLETE.
29
30
31
32
33
34
35
36
37
38
39
40


                                          23
 1
 2
 3
 4
 5
 6
 7
 8
 9   For office use only:
10   Form CG-Schedule-A
11    $25 Processing Fee Paid _______
12                    Rev. 4/07
13    1st    2nd    3rd    4th                             Commonwealth of Kentucky
14   Special License for License Year _______           Environmental and Public Protection Cabinet
15
16                                                          OFFICE OF CHARITABLE GAMING
17
18   APPLICATION FOR CHARITY FUNDRAISING EVENT
19   LICENSE OR SPECIAL LIMITED CHARITY FUNDRAISING
20   EVENT LICENSE
21        When applying for more than one event, submit a separate CG-Schedule-A for each event.
22
                                                       ORGANIZATION INFORMATION
23
     1.          Name of Charitable Organization : ___________________________________________________________

     2.          License number:                ORG-__________________                Expiration date: _______________________




24                                                          EVENT INFORMATION




                                                                24
1
3a.     Date(s) of Charity Fundraising Event:

                                        Date            Beginning time         Ending time
                        DAY 1           /    /          __________ am pm       __________ am pm
                        DAY 2           /    /          __________ am pm       __________ am pm
                        DAY 3           /    /          __________ am pm       __________ am pm

3b.     Date of Special Limited Charity Fundraising Event:

                                        Date          Beginning time        Ending time
                                        /    /        __________ am pm       __________ am pm
                                        (must be between the hours of 12:00pm and 1:00am)


4.      Street address of location at which charitable gaming will be conducted:

        Name of Building: ________________________________________________________________________
        StreetAddress: _________________________________________________________________________
        City,State, and Zip _______________________________________________________________________
         County:
         _________________________________________________________________________
      _______

        A copy of a signed lease agreement or statement of other understanding between the organization and the owner
        of the premises for this event must be submitted with this application.

2
3
4
5


6




                                                 25
     5. Please list the approximate NUMBER of tables/booths for each game of chance to be
     conducted:
               _____  Bingo (only count as 1)                         #_____      Blackjack
              #_____  Horse Race Bingo                                #_____      Poker
              #_____  Prerecorded Horse Racing                        #_____      Dice Games
               _____  Pulltabs (only count as 1)                      #_____      Roulette
              #_____  Raffles                                         #_____      Keno
              #_____  Non-Cash Prize Wheel Games                      #_____      Baccarat
                      (Prize value does not exceed $100)              #_____      Quarter Push
              #_____ Duck Race                                        #_____      Money Wheels (Cash Prizes)
             #_____ Golf Ball Drop                                    #_____      Texas Hold’em
             *Other: ______________________                           #_____      Horse Race by Roll of Dice
                                                                      *Other:    ________________________

*Brief description of other game listed above (other) and explanation of how prizes are awarded:
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________


6.     Please state the official name of the event, as it will be advertised to the general public.
       __________________________________________________________________________________________
__________________________________________________________________________________________
      __________________________________________________________________________________________

7.     Please describe all non-gaming activities to be conducted at this event, if any. (An example would be
       carnival rides, fish fry, motivational speakers, craft booths, golf tournament, 5k race, etc.)

       __________________________________________________________________________________________
       __________________________________________________________________________________________
       __________________________________________________________________________________________
       __________________________________________________________________________________________
       __________________________________________________________________________________________
1
2                                     DISTRIBUTOR INFORMATION
3
8.      Distributor(s) applicant will use to obtain charitable gaming equipment or supplies:

        Name:_____________________________________Name: __________________________________________
        KY. license number: Dis- _______________   KY. license number: Dis- _____________________
        Address: _________________________________ Address: _______________________________________
        __________________________________________________________________________________________

        Name:____________________________________ Name: __________________________________________
        KY. license number: Dis- _______________   KY. license number: Dis- _____________________
        Address: _________________________________ Address: _______________________________________
        __________________________________________________________________________________________

                                           (Attach additional sheets, if necessary)

                                                 26
 1
 2
     A copy of the Written Agreement between the organization and the distributor must be submitted within thirty (30) days of
     the event if this is a Special Limited Charity Fundraising Event.




 3
 4
 5
 6
 7
 8                           CERTIFICATION (BY AN OFFICER)
 9
10
11           I certify, under penalty of perjury, that I am an officer authorized by the
12   applicant to make application for licensure and that I have examined this application
13   for licensure, including accompanying materials, and all information submitted is, to
14   the best of my knowledge and belief, true and correct. I further certify that the
15   applicant agrees to comply with all applicable laws and administrative regulations
16   regarding charitable gaming in the Commonwealth of Kentucky.
17
18   Signature: ________________________________________________
19
20   Print name: _______________________________________________
21
22            Title:_____________________________________________________
23
24             Date:_____________________________________________________
25
26
27   Mail completed application (including all required attachments), together with the $25.00
28   processing fee made payable to “Kentucky State Treasurer” to:
29
30                                       Commonwealth of Kentucky
31                               Environmental and Public Protection Cabinet
32                                       Office of Charitable Gaming
33                                   Division of Licensing & Compliance
34                                      132 Brighton Park Boulevard
35                                           Frankfort, KY 40601
36
37   If you need any help completing this application, please call the Licensing branch at
38   (502) 573-5528 or toll-free in Kentucky, (800) 729-5672.
39
40
41                                                    Visit our website at:



                                                                27
 1                            http://www.ocg.ky.gov
 2     $25.00 PROCESSING FEE IS REQUIRED FOR EACH
 3                    SCHEDULE A.
 4
 5 ENVIRONMENTAL AND PUBLIC PROTECTION

 6 DEPARTMENT OF PUBLIC PROTECTION

 7 OFFICE OF CHARITABLE GAMING

 8 (Amendment)

 9 820 KAR 1:120. Allowable expenses.

10 RELATES TO: KRS 238.536, 238.550(11) [(6)]

11 STATUTORY AUTHORITY: KRS 238.515(2), (4), (9), 238.550(11)(j) [(6)(j)]

12 NECESSITY, FUNCTION, AND CONFORMITY: KRS 238.515(4) authorizes

13 the office to establish standards to insure charitable gaming receipts are

14 properly accounted for and KRS 238.515(9) authorizes the Office of

15 Charitable Gaming to promulgate administrative regulations necessary to

16 carry out the provisions of the chapter. KRS 238.550(11)(j) [(6)(j)] authorizes

17 the Office of Charitable Gaming to approve charitable gaming expenses

18 determined to be legitimate but which have not already been authorized by

19 statute. This administrative regulation establishes the other allowable

20 expenses and establishes the limitations and exclusions for the listed

21 categories of expenses.




                                         28
1 Section 1. Other Allowable Expenses. In addition to those authorized

2 expenses provided for in KRS 238.550(11) [(6)], each of the following expenses




                                        29
 1 is [are] determined to be legitimate and shall be allowable charitable gaming

 2 expenses of a licensed charitable organization:

 3 (1) The following customary and usual banking fees or charges paid to any

 4 financial institution in connection with an organization's charitable gaming

 5 account:

 6 (a) Monthly service charges;

 7 (b) Check verification service charges;

 8 (c) Check printing charges;

 9 (d) Charges relating to returned checks; or

10 (e) Copying charges for bank records;

11 (2) Customary and usual fees or charges paid to a check reader or verification

12 company incurred in connection with the organization's charitable gaming

13 activities;

14 (3) Customary and usual fees or charges incurred with accepting and

15 processing credit card purchases from patrons at the organization's

16 charitable gaming activities;

17 (4) Food, any noncash item not to exceed $25 in fair market value given upon

18 achieving a predetermined goal in a raffle, or clothing provided to volunteers

19 as authorized in 820 KAR 1:060;

20 (5) Payments made to the Office of Charitable Gaming;




                                             30
 1 (6) Printing costs incurred in connection with an organization's charitable

 2 gaming activities, which shall be the costs for printing or copying raffle

 3 tickets, gaming occasion programs, house rules, and vouchers;

 4 (7) Payments for the purchase of prizes to be awarded during the

 5 organization's conduct of charitable gaming;

 6 (8) Promotional items; [and]

 7 (9) Federal excise taxes levied under 26 U.S.C. 4401 and 4411, or fees

 8 associated with the filing of Internal Revenue Service Form 11-C, and paid by

 9 a licensed charitable organization during the calendar year; and[.]

10 (10) Customary and usual fees or charges incurred in the collection of checks

11 dishonored for insufficient funds.

12 Section 2. Charitable Gaming Expense Categories. (1) The items that may be

13 included as a [an] utilities expense, pursuant to KRS 238.550(11)(c) [(6)(c)],

14 shall be the money paid for electric, gas, water, sewer, telephone, and trash

15 collection. It may also include any [telephone or] cable expenses that are

16 incurred by the charitable organization for credit card services or card-

17 minding devices.

18 (2) The items that may be included as an advertising expense, pursuant to

19 KRS 238.550(11)(e) [(6)(e)], shall be the expenses for a handout, flyer, radio,

20 television, advertising sign, billboard, or other media used to promote an

21 event or activity required to be licensed under KRS Chapter 238 and any

22 printing costs associated with them.




                                          31
 1 (3) The items that may be included as a bookkeeping expense, pursuant to

 2 KRS 238.550(11)(g) [(g)], shall be the costs of completing the financial

 3 [quarterly] report, the federal excise tax form, and the federal gaming forms.

 4 Bookkeeping expenses shall not include expenses associated with handling

 5 charitable gaming funds, preparing gaming occasion records, or ordering

 6 supplies.

 7 (4) The items that may be included as security services, pursuant to KRS

 8 238.550(11)(h) [(6)(h)], shall be the expenses associated with paying a person

 9 whose sole duty is to promote and provide peace, order, and safety at a

10 charitable gaming event which:

11   (a)   May   include   patrolling   the    parking   lot   or   accompanying   the

12 organization's personnel to the bank or night depository with the charitable

13 gaming receipts; and

14 (b) Shall not include costs for security or alarm systems or for special lighting

15 for the building or parking lot.
16




                                              32
READ AND APPROVED:




______________________________________        ______________________
Tony S. Royalty, Executive Director           Date
Office of Charitable Gaming




______________________________________        ______________________
Timothy LeDonne, Commissioner                 Date
Department of Public Protection



______________________________________        ______________________
Lloyd R. Cress, Deputy Secretary              Date
Environmental and Public Protection Cabinet
For Teresa J. Hill, Secretary
Environmental and Public Protection Cabinet




                                       33
              PUBLIC HEARING AND PUBLIC COMMENT PERIOD

A public hearing on this administrative regulation shall be held on May 22, 2007 at 10:00
AM in Hearing Room of the Office of Charitable Gaming, 132 Brighton Park Boulevard,
Frankfort, Kentucky.

Individuals interested in being heard at this hearing shall notify this agency, in writing
five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent
to attend the hearing is received by that date, the hearing may be canceled. This hearing
is open to the public. Any person who wishes to be heard will be given an opportunity to
comment on the proposed administrative regulation.

A transcript of the public hearing will not be made unless a written request for a
transcript is made. If you do not wish to be heard at the public hearing, you may submit
written comments on the proposed administrative regulation. Written comments shall be
accepted until close of business Thursday, May 31, 2007.

Send written notification of intent to be heard at the public hearing or written comments
on the proposed administrative regulation to the contact person.

CONTACT PERSON:
    Leah Cooper Boggs
    Assistant Director of Licensing
    Division of Licensing and Compliance
    Office of Charitable Gaming
    132 Brighton Park Boulevard
    Frankfort, Kentucky 40601
    Phone: (502) 573-5528
    Fax: (502) 573-6625




                                              34
                            REGULATORY IMPACT ANALYSIS
                               AND TIERING STATEMENT

Contact Person: Leah Cooper Boggs

(23)      Provide a brief summary of: 820 KAR 1:120, Other Allowable Expenses

   (m)What this administrative regulation does:

   This regulation sets forth the other allowable charitable gaming expenses that are not

   listed in the statute.

       (b) The necessity of this administrative regulation:

   This regulation is necessary so that organizations will know what are allowable

   charitable gaming expenses.

       (c) How does this administrative regulation conform to the content of the

   authorizing statutes:

   KRS 238.550(6) lists certain allowable charitable gaming expenses and sets forth that

   the Office will provide the others by administrative regulation.

   (d) How this administrative regulation currently assists or will assist in the effective

   administration of the statutes:

   This administrative regulation assists in the effective administration of the statutes

   because it clarifies what are allowable charitable gaming expenses.

(24)      If this is an amendment to an existing administrative regulation, provide a brief

   summary of:

   (qq)          How the amendment will change this existing administrative regulation?

   The amendment includes telephone expense in the definition of utility expense,

   includes raffle incentives as allowed by statute, allows organization to purchase

   required federal tax forms from the gaming account, pay check collection fees from



                                               35
   the gaming account, and adds check readers as an allowable expense. This machine

   deducts the money from the account when it is run through.

   (rr) The necessity of the amendment to this administrative regulation:

   The amendment is necessary to allow the organizations to spend money on items that

   are required for it to conduct charitable gaming.

   (ss)How the amendment conforms to the content of the authorizing statutes:

   The amendment sets forth other allowable expenses.

   (tt) How the amendment will assist in the effective administration of the statutes:

   The amendment clarifies what are allowable charitable gaming expenses.

(25)   List the type and number of individuals, businesses, organizations, or state and

   local governments affected by this administrative regulation:

This regulation will affect approximately 700 organizations.

(4) Provide an analysis of how the entities identified in question (3) will be impacted by

either the implementation of this administrative regulation, if new, or by the change, if it

is an amendment, including:

(a) List the actions that each of the regulation entities identified in question (3) will have

to take to comply with this administrative regulation or amendment: The organizations

will have to obtain the new regulation.

(b) In complying with this administrative regulation or amendment, how much will it cost

each of the entities identified in question (3): None.

(c) As a result of compliance, what benefits will accrue to the entities identified in

question (3):




                                             36
The organizations will be able to pay bad check collection fees, fees for check debit

machines, raffle incentives, and fees for Form 11-C from the charitable gaming account.

(5) Provide an estimate of how much it will cost to implement this regulation:

   (y) Initially: None.

   (z) On a continuing basis. None.

(6) What is the source of funding to be used for the implementation and enforcement of

this administrative regulation? Charitable gaming is funded by the regulated community.

(7) Provide an assessment of whether an increase in fees or funding will be necessary to

implement this administrative regulation, if new, or by the change if it is an amendment.

No fee increase will be necessary to implement this regulation.

(8) State whether or not this administrative regulation establishes any fees or directly or

indirectly increases any fees: No.

(9) TIERING: Is tiering applied? Tiering is not applied because this regulation applies

equally to all organizations.




                                             37
               FISCAL NOTE ON STATE OR LOCAL GOVERNMENT



Regulation No. 820 KAR 1:120                        Contact Person: Leah Cooper Boggs

      1. Does this administrative regulation relate to any program, service, or
requirements of a state or local government (including cities, counties, fire departments,
or school districts)?
      Yes ______ No ___X__
      If yes, complete questions 2-4.

      2. What units, parts or divisions of state or local government (including cities,
counties, fire departments, or school districts) will be impacted by this administrative
regulation?

      3. Identify each state or federal statute or federal regulation that requires or
authorizes the action taken by the administrative regulation.

      4. Estimate the effect of this administrative regulation on the expenditures and
revenues of a state or local government agency (including cities, counties, fire
departments, or school districts) for the first full year the administrative regulation is to
be in effect.

       (a) How much revenue will this administrative regulation generate for the state or
local government (including cities, counties, fire departments, or school districts) for the
first year?

      (b) How much revenue will this administrative regulation generate for the state or
local government (including cities, counties, fire departments, or school districts) for
subsequent years?

      (c) How much will it cost to administer this program for the first year?

      (d) How much will it cost to administer this program for subsequent years?

Note: If specific dollar estimates cannot be determined, provide a brief narrative to
explain the fiscal impact of the administrative regulation.
      Revenues (+/-):
      Expenditures (+/-):
      Other Explanation:




                                             38
39

								
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