The structure of the Kentucky Horse Racing Commission has been a topic of conversation for years, especially with expanded forms of gaming.

Senate Bill 299 moves The regulatory functions of the Kentucky Horse Racing Commission into a newly formed an independent horse Racing and Gaming Corporation effective July 1st of this year.

Under the bill, the new corporation would be detached from the public Protection Cabinet.

Senate Bill 299 keeps the current board in place for two years.

The executive director would be named President of the new board.

House Speaker David Osborne teamed up with the Senate Majority for Leader to devise the plan that moves charitable gaming under this new corporation.

This bill exclusively or explicitly excludes any type of bingo or paper pull tabs.

The things that our church picnics do, the things that maybe booster clubs for athletics use to raise money.

Those would all be exactly the same as they were before.

The only change contemplated change in this bill would be that on July one of this year, there will be a moratorium placed on the expansion of the new issuance of electronic form pull tabs, which operate much like an HHR machine or a slot machine or any other type of gaming machine.

Those will be there will be a moratorium placed on those until the body or until the commission transitions into the new regulatory body.

So until July one of 2025.

In 2022, charitable gaming handled over $532 million in gambling receipts.

Speaker Osborne says there's no current oversight that requires criminal background checks or compliance with ethics rules, and that would change under the new structure.

Commission members would be appointed by the governor as they are now, but they'd be subject to Senate confirmation under Senate Bill 299.

Some Democrats were concerned about the impact the move would have on charitable gaming.

Is a shift in the power dynamic between the horse racing industry and charitable gaming.

And while there may be good wishes that there are processes to grandfather an existing, there still remains a large fear in the south end of Louisville that attacks on Shirley's way gaming and charitable gaming will be over time, seen as a threat and ultimately abolished.

The bill cleared the House on a vote of 64 to 28.

There were some other House changes the Senate had to sign off on, and they did.

There were differences of opinion within party ranks.

There's been no question in this state about the effectiveness of the Kentucky Horse Racing Commission.

We've given them a lot of responsibility over the last five years.

We put them in charge of HHR.

We've put them in charge of sports gaming.

They've been in charge of parimutuel wagering.

And by all accounts, they've done an extraordinary job.

What this bill now recognizes is that though they need to be their own separate entity because they've got a great deal of work to do.

Akin to the Public Service Commission.

And this bill keeps him intact, which is important to me.

The authority to appoint individuals to this commission.

So much things that the government cannot do or are unable to do or unwilling to do, we do through our charitable organizations.

We've heard the testimony from individuals from Shirley's way, from our churches, from itself, about how much that they're able to give back to the community through the charitable gaming.

I want to make sure that we work hard to protect that and do not limit that.

I know they're concerned at home, my bones, that they've been robbed.

I promise you that as long as I'm here, I'll stand and fight for that.

Senate bill to 99 was approved 25 to 11 and was delivered to the first floor of the Capitol for the governor's review.