A Kentucky House bill aiming to help generate revenues for the underfunded pension system is in legal limbo as the Senate refused to accept the bill.
House Bill 416 takes revenues from expansion of Instant Racing and online lottery sales and the start of a Keno game to generate close to $100 million a year to pay into state's currently underfunded pensions for state employees.
Revenue bills in odd-year sessions must have 60 House votes in final passage to be considered within the rules; House Bill 416 only received 52 on the floor. Because of that, the Senate clerk refused to accept the bill.
But House Speaker Greg Stumbo says the Senate should amend the bill and send it back to the House for final passage if it wants to avoid a special session.
The Kentucky House has narrowly passed two bills dealing with the state's underfunded pension system, but not without controversy.
The House passed an amended version of Senate Bill 2, which keeps the pension systems as a defined benefit and creates a new oversight panel for Kentucky's many pension plans. It passed on party lines 55-45, with Democrats favoring.
It also passed House Bill 416, which takes revenues from the potential expansion and legalization of Instant Racing, from online lottery sales and a new Keno game.
That bill passed with 52 votes, but many Republican members argued that the action was illegal, since revenue bills take a House supermajority of 60 votes to pass in odd-year session.
The Kentucky House budget committee has advanced a bill designed to provide extra revenues for the state's underfunded pension systems.
House Bill 416 would use revenues from the expansion of Instant Racing if the state Supreme Court upholds the legality of the game. It will also use expanded lottery sales and the proceeds from a new Keno game.
House Speaker Greg Stumbo says the bill does not ask lawmakers to legalize Instant Racing.
"We're simply saying if it is upheld, here is a fund that captures this money that's used to pay off this unfunded liability in our pension fund. So we're not asking you to vote to expand gaming," said Stumbo.