Did Kentucky's ethics law bar a state employee from taking a job with the Kentucky Lottery Corporation?

Plain-English summary

In 1993, Kentucky's Attorney General said a state employee taking a job with the Kentucky Lottery Corporation was outside the post-employment restriction the requester identified in KRS 11A.040(6). That restriction addressed work for a person or business that dealt with the state in matters the employee directly handled. The AG read the statute's definition of “business” as an entity operating for profit and concluded that the Lottery did not fit that description. The definition of “state agency” also included a public corporation.

On a separate question about moves between state agencies, the AG said it knew of no provision in KRS Chapter 11A dealing specifically with a transfer from one agency to another. The opinion did not declare that all ethics requirements ceased to apply to employees who changed state jobs.

Currency note

This opinion was issued in 1993. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Historical summary

State employees considering Lottery employment

The AG concluded that accepting a position with the Kentucky Lottery Corporation did not trigger the cited business-employment restriction in KRS 11A.040. Its reasoning turned on the statutory definitions of “business” and “state agency,” including the latter's reference to a public corporation.

Agency ethics and hiring officials

The opinion distinguished a move to another state agency from a move to a profit-making outside business. For transfers between agencies, it gave a narrow answer: the office knew of no Chapter 11A provision specifically addressing such a transfer.

Common questions

Could a Kentucky state employee take a job with the Lottery Corporation under the 1993 ethics rule?

The AG said KRS 11A.040's cited restriction on employment with a business dealing with the state did not cover a job with the Lottery Corporation. This was an interpretation of that provision at the time, not a general review of every possible employment rule.

Why did the AG treat the Lottery differently from a business contractor?

KRS 11A.010(1) defined a business as an entity through which business was conducted for profit. The AG said the Lottery had no private owners or stockholders with a personal financial stake in its earnings. It also pointed to the definition of “state agency” in KRS 11A.010(10), which included a public corporation.

Did the ethics chapter specifically regulate transfers between Kentucky state agencies?

The AG said it was unaware of a KRS Chapter 11A provision dealing specifically with an employee moving from one state agency to another. The opinion did not analyze other possible restrictions on a particular transfer.

Background and statutory framework

The requester asked about an employee of a constitutional office who wanted to join the Kentucky Lottery Corporation and, more broadly, about transfers between state agencies. KRS 11A.040(6) restricted certain subsequent employment with a person or business that contracted or did business with the state where the public servant had been directly involved. The AG applied the definitions in KRS 11A.010(1) and KRS 11A.010(10) to the Lottery, then gave a separate, limited answer about interagency moves.

Citations and references

• KRS 11A.040(6): the post-employment restriction raised by the requester.
• KRS 11A.010(1): definition of “business.”
• KRS 11A.010(10): definition of “state agency.”
• KRS Chapter 11A: ethics chapter considered for interagency transfers.

Source

• Landing page: https://www.ag.ky.gov/Resources/Opinions/Opinions/OAG93-083.htm

Original opinion text

OAG 93-83

December 13, 1993

Howard B. Kline

8012 Hummingbird Hollow

Louisville, Kentucky 40222

Dear Mr. Kline:

You have asked the following questions:

Would the provisions in KRS 11A.040(6) apply to an employee of a Constitutional Office who wishes to accept subsequent employment with the Kentucky Lottery Corporation?

Do any of the provisions of KRS Chapter 11A apply to “a state agency employee's acceptance of subsequent employment with another state agency”?

With regard to your first question, the answer is provided in the definitions section of chapter 11A. The general rule stated in KRS 11A.040(6) is that a public servant may not accept employment with “any person or business that contracts or does business with the state in which he was directly involved during his tenure.” Although one might conclude that in a sense the lottery does business with the state, it is not a “business” as that term is used in the statute. In KRS 11A.010(1) “business” is defined as an entity “through which business is conducted for profit.” Quite definitely the lottery does not engage in business for profit in any normal sense of the words. It has no owners or stockholders who have a personal financial stake in its earnings. In addition, KRS 11A.010(10) defines “state agency” to include a “public corporation.” Therefore based on these definitions we conclude that employment with the state lottery is not affected by the provisions of KRS 11A.040.

Regarding your second question, we are not aware of any provision in KRS chapter 11A that deals specifically with an employee's transfer from one agency to another.

Sincerely,

Chris Gorman

Attorney General

Ross T. Carter

Assistant Attorney General