SENATE BILL No. 21
AN ACT concerning parimutuel wagering; relating to the Kansas parimutuel racing act;
modifying the qualifications for an organization license; redefining horesemen's
associations and horsemen's nonprofit organizations; changing the distribution of
certain tax revenues; amending K.S.A. 74-8815, 74-8826, 74-8829 and 74-8838 and
K.S.A. 2024 Supp. 74-8802 and 74-8814 and repealing the existing sections.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2024 Supp. 74-8802 is hereby amended to read
as follows: 74-8802. As used in the Kansas parimutuel racing act unless
the context otherwise requires:
(a) "Breakage" means the odd cents by which the amount payable
on each dollar wagered exceeds:
(1) A multiple of $.10, for parimutuel pools from races conducted
in this state; and
(2) a multiple of such other number of cents as provided by law of
the host jurisdiction, for interstate combined wagering pools.
(b) "Commission" means the Kansas racing and gaming
commission created by this act.
(c) "Concessionaire licensee" means a person, partnership,
corporation or association licensed by the commission to utilize a space
or privilege within a racetrack facility to sell goods or services.
(d) "Contract" means an agreement, written or oral, between two
or more persons, partnerships, corporations or associations, or any
combination thereof that creates an obligation between the parties.
(e) "Crossover employment" means a situation in which an
occupational licensee is concurrently employed at the same racing
facility by an organization licensee and a facility owner licensee or
facility manager licensee.
(f) "Dual racetrack facility" means a racetrack facility for the
racing of both horses and greyhounds or two immediately adjacent
racetrack facilities, owned by the same licensee, one for racing horses
and one for racing greyhounds.
(g) "Employee" means a person who has applied for a position of
employment or is currently employed by the commission.
(h) "Executive director" means the executive director of the
commission.
(i) "Facility manager licensee" means a person, partnership,
corporation or association licensed by the commission and having a
contract with an organization licensee to manage a racetrack facility
located in Sedgwick county.
(j) "Facility owner licensee" means a person, partnership,
corporation or association, or the state of Kansas or any political
subdivision thereof, licensed by the commission to construct or own a
racetrack facility located in Sedgwick county. "Facility owner licensee"
does not mean an organization licensee that owns the racetrack facility
in which it conducts horse or greyhound racing.
(k) "Fair association" means an association organized pursuant to
K.S.A. 2-125 et seq., and amendments thereto or a nonprofit
association determined by the commission to be otherwise organized to
conduct fair activities pursuant to findings of fact entered by the
commission in a license order.
(l) "Financial interest" means an interest that could result directly
or indirectly in receiving a pecuniary gain or sustaining a pecuniary
loss as a result of ownership or interest in a business entity or activity
or as a result of a salary, gratuity or other compensation or
remuneration from any person.
(m) "Greyhound" means any greyhound breed of dog properly
registered with the national greyhound association of Abilene, Kansas.
(n) "Historical horse race machine" means any electronic,
electromechanical, video or computerized device, contrivance or SENATE BILL No. 21—page 2
machine authorized by the commission that, upon insertion of cash,
tokens, electronic cards or any consideration, is available to accept
wagers on and simulate the running of historical horse races, and that
may deliver or entitle the patron operating the machine to receive cash,
tokens, merchandise or credits that may be redeemed for cash.
Historical horse race machines shall use historically accurate
information of the horse race selected to determine the place of finish
of each horse. No random number generator or other algorithm shall be
used for determining the results of an historical horse race. Historical
horse race machines shall be directly linked to a central computer at a
location determined by the commission for purposes of security,
monitoring and auditing.
(o) "Horsemen's association" means any association or
corporation:
(1) All officers, directors, members and shareholders of which are
licensed owners of horses or licensed trainers of horses, or both;
(2) applying for or has been issued a facility owner license
authorizing ownership of Eureka Downs, Anthony Downs or a
racetrack facility on or adjacent to premises used by a fair association
to conduct fair activities; and
(3) none of the officers, directors, members or shareholders of
which holds another facility owner license or is an officer, director,
member or shareholder of another facility owner licensee.
(p) "Horsemen's nonprofit organization" means any nonprofit
organization:
(1) All officers, directors, members or shareholders of which are
licensed owners of horses or licensed trainers of horses, or both; and
(2) applying for or has been issued an organization license
authorizing the conduct of horse races at Eureka Downs, Anthony
Downs or a racetrack facility on or adjacent to premises used by a fair
association to conduct fair activities.
(q) "Host facility" means the racetrack at which the race is run or,
if the race is run in a jurisdiction that is not participating in the
interstate combined wagering pool, the racetrack or other facility that is
designated as the host facility.
(r) "Host jurisdiction" means the jurisdiction where the host
facility is located.
(s) "Interstate combined wagering pool" means a parimutuel pool
established in one jurisdiction that is combined with comparable
parimutuel pools from one or more racing jurisdictions for the purpose
of establishing the amount of money returned on a successful wager in
the participating jurisdictions.
(t) "Intertrack wagering" means wagering on a simulcast race at a
licensed racetrack facility or at a facility that is licensed in its racing
jurisdiction to conduct live races.
(u) "Intrastate combined wagering pool" means a parimutuel pool
that is combined with comparable parimutuel pools from one or more
racetrack facilities for the purpose of establishing the amount of money
returned on a successful wager at the participating racetrack facilities.
(v) "Kansas-whelped greyhound" means a greyhound whelped and
raised in Kansas for the first six months of its life.
(w) "Licensee" means a person who has submitted an application
for licesure or currently holds a license issued by the commission.
(x) "Minus pool" means a parimutuel pool in which, after
deducting the takeout, not enough money remains in the pool to pay the
legally prescribed minimum return to those placing winning wagers,
and in which the organization licensee would be required to pay the
remaining amount due.
(y) "Nonprofit organization" means: SENATE BILL No. 21—page 3
(1) A corporation that is incorporated in Kansas as a not-for-profit
corporation pursuant to the Kansas general corporation code and the net
earnings of which do not inure to the benefit of any shareholder,
individual member or person; or
(2) a fair association.
(z) "Occupation licensee" means a person licensed by the
commission to perform an occupation or provide services that the
commission has identified as requiring a license pursuant to this act.
(aa) "Off-track wagering" means wagering on a simulcast race at a
facility that is not licensed in its jurisdiction to conduct live races.
(bb) "Organization licensee" means a nonprofit organization
licensed by the commission to conduct races pursuant to this act and, if
the license so provides, to construct or own a racetrack facility.
(cc) "Parimutuel pool" means the total money wagered by
individuals on one or more horses or greyhounds in a particular horse
or greyhound race to win, place or show, or combinations thereof, as
established by the commission, and, except in the case of an interstate
or intrastate combined wagering pool, held by the organization licensee
pursuant to the parimutuel system of wagering. There is a separate
parimutuel pool for win, for place, for show and for each of the other
forms of betting provided for by the rules and regulations of the
commission.
(dd) "Parimutuel wagering" means a form of wagering on the
outcome of horse and greyhound races, including historical horse races
conducted by an historical horse race machine, in which those who
wager purchase tickets of various denominations on one or more horses
or greyhounds and all wagers for each race are pooled and the winning
ticket holders are paid prizes from such pool in amounts proportional to
the total receipts in the pool.
(ee) "Race meeting" means one or more periods of racing days
during a calendar year designated by the commission for which an
organization licensee has been approved by the commission to hold live
horse or greyhound races or simulcast horse races at which parimutuel
wagering is conducted, including such additional time as designated by
the commission for the conduct of official business before and after the
races.
(ff) "Racetrack facility" means a racetrack within Kansas used for
the racing of horses or greyhounds, or both, including the track surface,
grandstands, clubhouse, all animal housing and handling areas, other
areas in which a person may enter only upon payment of an admission
fee or upon presentation of authorized credentials and such additional
areas as designated by the commission. The term "racetrack facility"
includes a facility used for the display of and wagering on simulcast
races and the operation of historical horse race machines without any
live horse or greyhound races being conducted.
(gg) "Racing jurisdiction" or "jurisdiction" means a governmental
authority that is responsible for the regulation of live or simulcast
racing in its jurisdiction.
(hh) "Racing or wagering equipment or services licensee" means
any person, partnership, corporation or association licensed by the
commission to provide integral racing or wagering equipment or
services, as designated by the commission, to an organization licensee.
(ii) "Recognized greyhound owners' group" means the duly
recognized group elected in accordance with rules and regulations of
the commission by a majority of the Kansas licensed greyhound owners
at the racetrack facility voting in the election. The commission may
designate an organization such as the national greyhound association of
Abilene, Kansas, to conduct the election.
(jj) "Recognized horsemen's group" means the duly recognized SENATE BILL No. 21—page 4
group, representing the breeds of horses running at a racetrack facility,
elected in accordance with rules and regulations of the commission by a
majority of the licensed owners and trainers at the racetrack facility
voting in the election. If the licensee does not have a recognized
horsemen's group, the commission shall designate as the recognized
horsemen's group one that serves another organization licensee, but not
one that serves a fair association organization licensee.
(kk) "Simulcast" means a live audio-visual broadcast of an actual
horse race at the time it is run.
(ll) "Takeout" means the total amount of money withheld from
each parimutuel pool for the payment of purses, taxes and the share to
be kept by the organization licensee. Takeout does not include the
breakage. The balance of each pool less the breakage is distributed to
the holders of winning parimutuel tickets.
Sec. 2. K.S.A. 2024 Supp. 74-8814 is hereby amended to read as
follows: 74-8814. (a) (1) Subject to the provisions of subsection (b), the
commission shall establish by rules and regulations an application fee
not exceeding $50 for an organization license and a license fee of $25
for each day of racing approved by the commission for any
organization granted an organization license.
(2) Subject to paragraphs (3) and (4), any fair association,
horsemen's nonprofit organization or the national greyhound
association of Abilene, Kansas, may apply for an organization license
if:
(A) Such organization conducts not more than two race meetings
each year; and
(B) such race meets are held within the boundaries of the county
where the applicant is located; and
(C) such race meetings are held for a total of not more than 40
days per year.
(3) If the applicant is a fair association intending to conduct live
horse racing, then, along with an application for an organization
license, such applicant shall submit documentation demonstrating such
applicant is approved for such license by:
(A) The Kansas quarter horse racing association and the Kansas
thoroughbred association; or
(B) a horsemen's nonprofit organization.
(4) If the applicant is a horsemen's nonprofit organization and:
(A) Intending to conduct live horse racing, such applicant shall
not conduct live horse racing prior to March 1, 2028, unless such
licensee intends to conduct such races at Eureka downs; and
(B) such applicant shall not operate historical horse race
machines.
(b) The commission shall adopt rules and regulations providing
for simplified and less costly procedures and requirements for fair
associations and horsemen's nonprofit organizations applying for or
holding a license to conduct race meetings.
(c) The Kansas racing and gaming commission shall investigate:
(1) The president, vice-president vice president, secretary and
treasurer of a fair association, and such other members as the
commission considers necessary, to determine eligibility for an
organization license;
(2) each officer and each director of a nonprofit horsemen's
nonprofit organization, and such other members or shareholders as the
commission considers necessary to determine eligibility for an
organization license.
(d) Except as otherwise provided by this section, all applicants for
organization licenses for the conduct of race meetings pursuant to the
provisions of this section shall be required to comply with all the SENATE BILL No. 21—page 5
provisions of K.S.A. 74-8813, and amendments thereto.
Sec. 3. K.S.A. 74-8815 is hereby amended to read as follows: 74-
8815. (a) Any person, partnership, corporation or association, or the
state of Kansas or any political subdivision thereof, may apply to the
commission for a facility owner license to construct or own, or both, a
racetrack facility which that includes a racetrack and other areas
designed for horse racing or greyhound racing, or both.
(b) Any person, partnership, corporation or association may apply
to the commission for a facility manager license to manage a racetrack
facility.
(c) A facility owner license or a facility manager license shall be
issued for a period established by the commission but not to exceed 25
years. The application for a facility owner license shall be accompanied
by a nonrefundable fee of $5,000. An application for a facility manager
license shall be accompanied by a nonrefundable fee of $5,000. If the
application fee is insufficient to pay the reasonable expenses of
processing the application and investigating the applicant's
qualifications for licensure, the commission shall require the applicant
to pay to the commission, at such times and in such form as required by
the commission, any additional amounts necessary to pay such
expenses. No license shall be issued to an applicant until the applicant
has paid such additional amounts in full, and such amounts shall not be
refundable except to the extent that they exceed the actual expenses of
processing the application and investigating the applicant's
qualifications for licensure.
(d) If an applicant for a facility owner license is proposing to
construct a racetrack facility, such applicant, at the time of submitting
the application, shall deposit with the commission, in such form as
prescribed by rules and regulations of the commission, the sum of: (1)
$500,000, if the number of racing days applied for by organization
licensee applicants proposing to race at the facility is 150 days or more
in a racing season; (2) $250,000, if such number of racing days applied
for is less than 150 days; or (3) a lesser sum established by the
commission, if the applicant is the state or a political subdivision of the
state. Only one such deposit shall be required for a dual racetrack
facility. The executive director shall remit any deposit received
pursuant to this subsection to the state treasurer in accordance with the
provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt
of each such remittance, the state treasurer shall deposit the entire
amount in the state treasury to the credit of the racing applicant deposit
fund created by K.S.A. 74-8828, and amendments thereto. If the
application is denied by the commission, the deposit, and any interest
accrued thereon, shall be refunded to the applicant. If the license is
granted by the commission in accordance with the terms of the
application or other terms satisfactory to the applicant, the deposit, and
any interest accrued thereon, shall be refunded to the licensee upon
completion of the racetrack facility in accordance with the terms of the
license. If the licensee fails to complete the racetrack facility in
accordance with the terms of the license, the deposit, and any interest
accrued thereon, shall be forfeited by the applicant.
(e) A facility owner license shall be granted only to an applicant
that already owns an existing racetrack facility or has submitted with its
application detailed plans for the construction of such facility, including
the means and source of financing such construction and operation
sufficient to convince the commission that such plans are feasible. A
facility manager license shall be granted only to an applicant that has a
facility management contract with an organization licensed pursuant to
K.S.A. 74-8813, and amendments thereto.
(f) An applicant for a facility owner license or facility manager SENATE BILL No. 21—page 6
license, or both, shall not be granted a license if there is substantial
evidence that the applicant for the license, or any officer or director,
stockholder, member or owner of or other person having a financial
interest in the applicant:
(1) Has been suspended or ordered to cease operation of a
parimutuel racing facility in another jurisdiction by the appropriate
authorities in that jurisdiction, has been ordered to cease association or
affiliation with such a racing facility or has been banned from such a
racing facility;
(2) has been convicted by a court of any state or of the United
States of any criminal act involving fixing or manipulation of
parimutuel races, violation of any law involving gambling or controlled
substances or drug violations involving horses or greyhounds, or has
been adjudicated in the last five years in any such court of committing
as a juvenile an act which, if committed by an adult, would constitute
such a criminal act, or if any employee or agent assisting the applicant
in activities relating to ownership or management of a racetrack facility
or to the conduct of races has been so convicted or adjudicated;
(3) has been convicted by a court of any state or of the United
States of any felony involving dishonesty, fraud, theft, counterfeiting,
alcohol violations or embezzlement, or has been adjudicated in the last
five years in any such court of committing as a juvenile an act which, if
committed by an adult, would constitute such a felony, or if any
employee or agent assisting the applicant in activities relating to
ownership or management of a racetrack facility or to the conduct of
races has been so convicted or adjudicated;
(4) has not demonstrated financial responsibility sufficient to meet
the obligations being undertaken pursuant to its contract with the
organization licensee;
(5) is not in fact the person or entity authorized to or engaged in
the licensed activity;
(6) is or becomes subject to a contract or option to purchase under
which 10% or more of the ownership or other financial interest or
membership interest are subject to purchase or transfer, unless the
contract or option has been disclosed to the commission and the
commission has approved the sale or transfer during the license period;
(7) has made a statement of a material fact in the application or
otherwise in response to official inquiry by the commission knowing
such statement to be false; or
(8) has failed to meet any monetary or tax obligation to the federal
government or to any state or local government, whether or not relating
to the conduct or operation of a race meet held in this state or any other
jurisdiction.
(g) No person or entity shall be qualified to hold a facility
manager license if such person or entity, or any director, officer,
employee or agent thereof, is addicted to, and a user of, alcohol or a
controlled substance.
(h) If the applicant for a facility owner license or facility manager
license is a horsemen's association, such applicant shall not operate
historical horse race machines at such racetrack facility.
(i) All facility owner licenses and facility manager licenses shall
be reviewed annually by the commission to determine if the licensee is
complying with the provisions of this act and rules and regulations of
the commission and following such proposed plans and operating
procedures as were approved by the commission. The commission may
review a facility owner license or facility manager license more often
than annually upon its own initiative or upon the request of any
interested party. The commission shall require each facility owner
licensee and each facility manager licensee to file annually with the SENATE BILL No. 21—page 7
commission a certified financial audit of the licensee by an independent
certified public accountant, which audit shall be open to inspection by
the public, and may require any such licensee to provide any other
information necessary for the commission to conduct the annual or
periodic review.
(i)(j) Subject to the provisions of subsection (j)(k), the
commission, in accordance with the Kansas administrative procedure
act, may suspend or revoke a facility owner or facility manager license
or may impose a civil fine not exceeding $10,000 per failure or
violation, or may both suspend such license and impose such fine, if the
commission finds probable cause to believe that:
(1) In the case of a facility owner licensee, the licensee has failed
to follow one or more provisions of the licensee's plans for the
financing, construction or operation of a racetrack facility as submitted
to and approved by the commission; or
(2) in the case of either a facility owner licensee or facility
manager licensee, the licensee has violated any of the terms and
conditions of licensure provided by this section or any other provision
of this act or any rule and regulation of the commission.
(j)(k) Prior to suspension or revocation of a license pursuant to
subsection (i)(j), the commission shall give written notice of the reason
therefor to the licensee and all other interested parties. The licensee
shall have 30 days from receipt of the notice to cure the alleged failure
or violation, if it can be cured. If the commission finds that the failure
or violation has not been cured upon expiration of the 30 days or upon
a later deadline granted by the commission, or if the alleged violation is
of such a nature that it cannot be cured, the commission may proceed to
suspend or revoke the licensee's license pursuant to subsection (i)(j).
Nothing in this subsection shall be construed to preclude the
commission from imposing a fine pursuant to subsection (i)(j) even if
the violation is cured within 30 days or such other period as provided
by the commission.
(k)(l) If an applicant for a facility owner license proposes to
construct a racetrack facility and the commission determines that such
license should be issued to the applicant, the commission shall issue to
the applicant a facility owner license conditioned on the submission by
the licensee to the commission, within a period of time prescribed by
the commission, of a commitment for financing the construction of the
racetrack facility by a financial institution or other source, subject to
approval by the commission. If such commitment is not submitted
within the period of time originally prescribed by the commission or
such additional time as authorized by the commission, the license shall
expire at the end of such period.
(l)(m) If a facility owner licensee's license authorizes the
construction of a dual racetrack facility, such license shall be
conditioned on the completion of such facility within a time specified
by the commission. If, within the time specified by the commission, the
licensee has not constructed a dual racetrack facility in accordance with
the plans submitted to the commission pursuant to subsection (e), the
commission, in accordance with the Kansas administrative procedure
act, shall:
(1) Impose upon the licensee a civil fine equal to 5% of the total
parimutuel pools for all races held at the licensee's facility on and after
the date that racing with parimutuel wagering is first conducted at such
facility and until the date that construction of the dual racetrack facility
is completed and horse racing has begun; and
(2) revoke the licensee's license unless the licensee demonstrates
reasonable cause for the failure to complete the facility.
(m)(n) The refusal to renew a facility owner license or a facility SENATE BILL No. 21—page 8
manager license shall be in accordance with the Kansas administrative
procedure act and shall be subject to review under the Kansas judicial
review act.
(n)(o) The grant or denial of an original facility owner license or
facility manager license shall not be subject to the Kansas
administrative procedure act. Such grant or denial shall be a matter to
be determined in the sole discretion of the commission, whose decision
shall be final upon the grant of a license to one of two or more
competing applicants without the necessity of a hearing on the denial of
a license to each other competing applicant. Any action for judicial
review of such decision shall be by appeal to the supreme court in
accordance with the Kansas judicial review act, except that the scope of
review shall be limited to whether the action of the commission was
arbitrary or capricious or constituted an abuse of discretion. All
competing applicants for the facility owner license or facility manager
license shall be parties to such appeal. Any such appeal shall have
priority over other cases except those having statutory priority.
(o)(p) The commission may adopt rules and regulations regulating
crossover employment between facility manager licensees and facility
owner licensees and organization licensees.
Sec. 4. K.S.A. 74-8826 is hereby amended to read as follows: 74-
8826. (a) There is hereby created the state racing fund in the state
treasury.
(b) Except as otherwise provided by K.S.A. 74-8824 and 74-8835,
and amendments thereto, all taxes on parimutuel wagering, admissions
tax, application fees, license fees and fines which that are collected by
the commission shall be remitted to the state treasurer in accordance
with the provisions of K.S.A. 75-4215, and amendments thereto. Upon
receipt of each such remittance, the state treasurer shall deposit the
entire amount in the state treasury to the credit of the state racing fund.
All moneys credited to such fund shall be expended or transferred only
for the purposes and in the manner provided by this act. Expenditures
from such fund shall be made in accordance with appropriation acts
upon warrants of the director of accounts and reports issued pursuant to
vouchers approved by the chairperson of the commission or a person
designated by the chairperson.
(c) Except as otherwise provided by this act, all operating
expenses of the commission and moneys for the promotion of horse
and greyhound racing appropriated by the legislature shall be paid from
the state racing fund. On January 15, 1990, and on the 15
th
day of each
month thereafter, and at such other times as provided by law, the
director of accounts and reports shall transfer to the state gaming
revenues fund created by K.S.A. 79-4801, and amendments thereto,
any moneys in the state racing fund on each such date in excess of the
amount required for operating expenditures, transfers made pursuant to
subsection (d) and an adequate fund balance, taking into consideration
encumbrances, anticipated revenues, revenue and expenditure
experience to date and other relevant factors, as determined by the
executive director and the director of accounts and reports.
(d) (1) On or before July 15, 2025, and on the 15
th
day of each
month thereafter, of the moneys in the state racing fund in excess of the
amount required for operating expenditures of the commission, 30% of
such moneys credited to the state racing fund from tax revenues
collected on wagers on historical horse races pursuant to K.S.A. 74-
8823(a)(5), and amendments thereto, shall be transferred by the
director of accounts and reports from the state racing fund to the
Kansas horse breeding development fund established in K.S.A. 74-
8829, and amendments thereto.
(2) On or before July 15, 2025, and on the 15
th
day of each month SENATE BILL No. 21—page 9
thereafter, of the moneys in the state racing fund in excess of the
amount required for operating expenditures of the commission, 70% of
such moneys credited to the state racing fund from tax revenues
collected on wagers on historical horse races pursuant to K.S.A. 74-
8823(a)(5), and amendments thereto, shall be transferred by the
director of accounts and reports from the state racing fund to the horse
fair racing benefit fund established in K.S.A. 74-8838, and amendments
thereto.
(e) Any appropriation or transfer of state general fund moneys for
the operation of the commission or the office of the executive director
and any other expenses incurred in connection with the administration
and enforcement of this act shall be considered a loan and shall be
repaid with interest to the state general fund in accordance with
appropriation acts. Such loan shall not be considered an indebtedness or
debt of the state within the meaning of section 6 of article 11 of the
constitution of the state of Kansas. Such loan shall bear interest at a rate
equal to the rate prescribed by K.S.A. 75-4210, and amendments
thereto, for inactive accounts of the state effective on the first day of
the month during which the appropriation or transfer takes effect.
(e)(f) At the time of repayment of a loan pursuant to subsection
(d), the executive director shall certify to the director of accounts and
reports the amount to be repaid and any interest due thereon. Upon
receipt of such certification, the director of accounts and reports shall
promptly transfer the amount certified from the state racing fund to the
state general fund.
Sec. 5. K.S.A. 74-8829 is hereby amended to read as follows: 74-
8829. (a) There is hereby created in the state treasury the Kansas horse
breeding development fund to which moneys shall be credited as
provided by this act. Expenditures from such fund shall be made in
accordance with appropriation acts upon warrants of the director of
accounts and reports issued pursuant to vouchers approved by the
chairperson of the commission or a person designated by the
chairperson.
(b) Moneys credited to the Kansas horse breeding development
fund, including any moneys in the fund on March 24, 1994, and any
moneys credited to the fund on or after that date, shall be apportioned
into categories corresponding with the various breeds of horses which
that are participating in live races with parimutuel wagering conducted
by organization licensees in direct proportion to the number of horses
in each category participating in such live races and shall be used in
each category to provide:
(1) Purse supplements to owners of Kansas-bred horses;
(2) stakes and awards to be paid to the owners of the winning
Kansas-bred horses in certain races as determined by the commission;
(3) a stallion award to each owner of a Kansas-registered stallion
which that is the sire of a Kansas-bred horse if such horse wins or wins,
places or shows competes in any recognized parimutuel race conducted
at a Kansas race meeting, but and finishes at a level determined by the
commission for such award. No such award shall be paid to the owner
of a Kansas Kansas-registered stallion that served outside Kansas at
any time during the calendar year in which the winning Kansas-bred
horse was conceived;
(4) a breeder's award to each owner of a Kansas-registered mare
which is the dam of a Kansas-bred horse if such horse wins or wins,
places or shows competes in any recognized parimutuel race conducted
at a Kansas race meeting and finishes at a level determined by the
commission for such award; and
(5) moneys for equine research through institutions of higher
education under the state board of regents. SENATE BILL No. 21—page 10
Sec. 6. K.S.A. 74-8838 is hereby amended to read as follows: 74-
8838. (a) The state treasurer shall credit
1
/3 of the taxes on the takeout
from parimutuel pools for simulcast races, as certified by the executive
director, to the horse fair racing benefit fund, which is hereby created in
the state treasury.
(b) Twenty-five percent of all moneys credited to the horse fair
racing benefit fund may be expended, upon application to the
commission, for capital improvements to racetrack facilities on or
adjacent to premises used by a fair association to conduct fair racing
activities.
(c) Fifteen percent of all moneys credited to the horse fair racing
benefit fund may be expended, upon application to the commission, by
a nonprofit horsemen's organization for the promotion of the
parimutuel racing industry in this state.
(d) The remaining moneys in the horse fair racing benefit fund
shall be expended only for:
(1) Reimbursement of the commission for the commission's
administrative costs, as established by rules and regulations of the
commission, related to race meetings conducted by a fair association or
a horsemen's nonprofit organization, including the cost of stewards,
racing judges and assistant animal health officers performing services
at such race meetings;
(2) paying the costs of totalisator expenses incurred by an
organization licensee that is a fair association or horsemen's nonprofit
organization;
(3) paying the costs of background investigations required under
the Kansas parimutuel racing act for members of a fair association or
horsemen's nonprofit organization;
(4) paying the costs related to any lease agreement for land,
equipment or other materials necessary to conduct a race meeting;
(5) purse supplements at race meetings conducted by a fair
association or horsemen's nonprofit organization;
(5)(6) basic operating assistance grants to an organization licensee
that is a fair association or horsemen's nonprofit organization; and
(6)(7) costs for employment of key racing officials, as determined
by the commission, incurred by an organization licensee that is a fair
association or horsemen's nonprofit organization.
(d)(e) The commission shall adopt rules and regulations
establishing procedures for distributing moneys in the horse fair racing
benefit fund to fair associations and nonprofit horsemen's organizations
for the purposes provided by this section.
(e)(f) Expenditures from the horse fair racing benefit fund related
to the conduct of a race meeting shall not be allocated to any
organization licensee for a period exceeding 40 days.
(f)(g) Expenditures from the horse fair racing benefit fund shall
not be allocated to any organization licensee to support the conduct of
parimutuel greyhound races unless the organization licensee conducts
an equal or greater number of parimutuel horse races during the race
meeting.
(g)(h) Expenditures from the horse fair racing benefit fund shall
be made in accordance with appropriation acts upon warrants of the
director of accounts and reports issued pursuant to vouchers approved
by the chairperson of the commission or a person designated by the
chairperson.
Sec. 7. K.S.A. 74-8815, 74-8826, 74-8829 and 74-8838 and
K.S.A. 2024 Supp. 74-8802 and 74-8814 are hereby repealed. SENATE BILL No. 21—page 11
Sec. 8. This act shall take effect and be in force from and after its
publication in the statute book.
I hereby certify that the above BILL originated in the
SENATE, and passed that body
__________________________
SENATE adopted
Conference Committee Report ________________
_________________________
President of the Senate.
_________________________
Secretary of the Senate.
Passed the HOUSE
as amended _________________________
HOUSE adopted
Conference Committee Report ________________
_________________________
Speaker of the House.
_________________________
Chief Clerk of the House.
APPROVED _____________________________
_________________________
Governor.