Kansas Senate Bill SB21

Kansas 2025-2026 Regular Session

• Introduced: 1/16/25
• Refer: 1/17/25
• Report Pass: 2/5/25
• Engrossed: 2/25/25
• Refer: 2/25/25
• Report Pass: 3/4/25
• Enrolled: 4/10/25
• Passed: 4/10/25

Caption

Requiring that third party administrators maintain separate fiduciary accounts for individual payors and not contain funds collected or held on behalf of multiple payors and requiring that third party administrators disclose to the commissioner of insurance any bankruptcy petition filed by or on behalf of such administrator pursuant to chapter 9 or chapter 11 of the United States bankruptcy code.

Impact

The passage of SB21 would significantly impact the statutes governing horse and greyhound racing in Kansas, establishing a clearer legal framework for operators and ensuring better accountability. By redefining organizational structures and streamlining licensing procedures, the bill aims to bolster the integrity of the industry while ensuring that financial resources are directed appropriately for the promotion and support of horse racing activities. The changes in tax revenue distribution are expected to provide increased funding for horse breeding development initiatives, directly benefiting the equine industry within the state.

Summary

Senate Bill 21 aims to amend the Kansas Parimutuel Racing Act by modifying qualifications for organization licenses, redefining horsemen's associations and nonprofit organizations, and altering the distribution of certain tax revenues related to parimutuel wagering. The bill enhances regulatory oversight by the Kansas Racing and Gaming Commission and includes specific provisions to streamline application processes for race management licenses. Additionally, the legislation serves to fund horse breeding developments through a reallocation of tax revenues generated from wagers on historical horse races, which are now required to be tracked more transparently.

Sentiment

Sentiment surrounding SB21 appears generally supportive among stakeholders involved in the racing industry, particularly those advocating for regulatory clarity and improved financial oversight. However, some concerns have been expressed regarding the level of regulatory control being imposed by the state through the Kansas Racing and Gaming Commission. Critics argue that increased oversight could stifle the competitive landscape for smaller organizations. Despite these concerns, the overall reception is optimistic about the bill's potential to invigorate local horse racing and breeding opportunities in Kansas.

Contention

Notable points of contention regarding SB21 hinge on the balance between necessary regulatory oversight and the autonomy of local organizations conducting racing activities. While proponents argue for stringent standards to maintain integrity, opponents maintain that excessive regulation could undermine local governance and deter new entrants into the racing field, leading to reduced competition. The debate illustrates the broader conflict between state authority and local interests, with stakeholders divided on the best approach to fostering a thriving racing industry while safeguarding public interest.