HOUSE BILL No. 2510

      An Act concerning racing and gaming; concerning the regulation thereof; concerning the
      powers and duties of certain officers and employees; amending K.S.A. 74-8809 and
      74-8811 and K.S.A. 1997 Supp. 74-8802, 74-8810, 74-8816, 74-8831, 74-8836, 74-9804
      and 74-9806 and repealing the existing sections; also repealing K.S.A. 1997 Supp. 74-
      8802, as amended by section 1 of 1998 House Bill No. 3028, 74-8802a, 74-8802b and
      74-8813a.

Be it enacted by the Legislature of the State of Kansas:

    Section 1. K.S.A. 1997 Supp. 74-8802 is hereby amended to read as
follows: 74-8802. As used in this 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, corpora-
tion or association licensed by the commission to utilize a space or priv-
ilege 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 combi-
nation thereof, which creates an obligation between the parties.

    (e) ``Crossover employment'' means a situation in which an occupa-
tional 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.

    (f) (g) ``Executive director'' means the executive director of the com-
mission.

    (g) (h) ``Facility manager licensee'' means a person, partnership, cor-
poration or association licensed by the commission and having a contract
with an organization licensee to manage a racetrack facility.

    (h) (i) ``Facility owner licensee'' means a person, partnership, cor-
poration or association, or the state of Kansas or any political subdivision
thereof, licensed by the commission to construct or own a racetrack fa-
cility but does not mean an organization licensee which owns the race-
track facility in which it conducts horse or greyhound racing.

    (i) (j) ``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.

    (j) (k) ``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.

    (k) (l) ``Greyhound'' means any greyhound breed of dog properly reg-
istered with the national greyhound association of Abilene, Kansas.

    (l) (m) ``Horsemen's association'' means any association or corpora-
tion:

    (1) All officers, directors, members and shareholders of which are
licensed owners of horses or licensed trainers of horses, or both;

    (2) which is 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.

    (m) (n) ``Horsemen's nonprofit organization'' means any nonprofit
organization:

    (1) All officers, directors, members or shareholders of which are li-
censed owners of horses or licensed trainers of horses, or both; and

    (2) which is 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.

    (n) (o) ``Host facility'' means the racetrack at which the race is run
or, if the race is run in a jurisdiction which is not participating in the
interstate combined wagering pool, the racetrack or other facility which
is designated as the host facility.

    (o) (p) ``Host jurisdiction'' means the jurisdiction where the host fa-
cility is located.

    (p) (q) ``Interstate combined wagering pool'' means a parimutuel pool
established in one jurisdiction which is combined with comparable pari-
mutuel 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.

    (q) (r) ``Intertrack wagering'' means wagering on a simulcast race at
a licensed racetrack facility or at a facility which is licensed in its racing
jurisdiction to conduct live races.

    (r) (s) ``Intrastate combined wagering pool'' means a parimutuel pool
which 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.

    (s) (t) ``Kansas-whelped greyhound'' means a greyhound whelped and
raised in Kansas for the first six months of its life.

    (t) (u) ``Minus pool'' means a parimutuel pool in which, after de-
ducting 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.

    (u) (v) ``Nonprofit organization'' means:

    (1) A corporation which 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, individ-
ual member or person; or

    (2) a fair association.

    (v) (w) ``Occupation licensee'' means a person licensed by the com-
mission to perform an occupation or provide services which the commis-
sion has identified as requiring a license pursuant to this act.

    (w) (x) ``Off-track wagering'' means wagering on a simulcast race at
a facility which is not licensed in its jurisdiction to conduct live races.

    (x) (y) ``Organization licensee'' means a nonprofit organization li-
censed by the commission to conduct races pursuant to this act and, if
the license so provides, to construct or own a racetrack facility.

    (y) (z) ``Parimutuel pool'' means the total money wagered by individ-
uals on one or more horses or greyhounds in a particular horse or grey-
hound 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.

    (z) (aa) ``Parimutuel wagering'' means a form of wagering on the out-
come of horse and greyhound races 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 re-
ceipts in the pool.

    (aa) (bb) ``Race meeting'' means the entire period one or more per-
iods of time racing days during a calendar year designated by the com-
mission for which an organization licensee has been approved by the
commission to hold live or simulcast horse or greyhound races at which
parimutuel wagering is conducted, including such additional time as des-
ignated by the commission for the conduct of official business before and
after the races.

    (bb) (cc) ``Racetrack facility'' means a racetrack within Kansas used
for the racing of horses or greyhounds, or both, including the track sur-
face, 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.

    (cc) (dd) ``Racing jurisdiction'' or ``jurisdiction'' means a govern-
mental authority which is responsible for the regulation of live or simul-
cast racing in its jurisdiction.

    (dd) (ee) ``Racing or wagering equipment or services licensee'' means
any person, partnership, corporation or association licensed by the com-
mission to provide integral racing or wagering equipment or services, as
designated by the commission, to an organization licensee.

    (ee) (ff) ``Recognized greyhound owners' group'' means the duly rec-
ognized 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 desig-
nate an organization such as the national greyhound association of Abi-
lene, Kansas, to conduct the election.

    (ff) (gg) ``Recognized horsemen's group'' means the duly recognized
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.

    (gg) (hh) ``Simulcast'' means a live audio-visual broadcast of an actual
horse or greyhound race at the time it is run.

    (hh) (ii) ``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 break-
age. The balance of each pool less the breakage is distributed to the
holders of winning parimutuel tickets.

    Sec. 2. K.S.A. 74-8809 is hereby amended to read as follows: 74-
8809. (a) The attorney general shall appoint, with the approval of the
commission, not more than two assistant attorneys general who shall be
assigned to assist the commission in all matters, including the enforce-
ment of this act, the tribal gaming oversight act. Such attorneys shall be
in the unclassified service under the Kansas civil service act and shall
receive annual salaries fixed by the attorney general, with the approval of
the commission, subject to the limitations of appropriations therefor.
Such salaries and any subsistence, mileage and other travel expenses of
such attorneys general shall be paid from the state racing fund created
by K.S.A. 74-8826 and amendments thereto, as an operating expense of
the commission, subject to reimbursement from the tribal gaming fund
created by K.S.A. 74-9808 and amendments thereto for that portion of
any such salary and subsistence, mileage and other travel expenses at-
tributable to work performed relating to tribal gaming matters.

    (b) On or before the 15th day of each month, commencing with the
month following the first month that salaries or subsistence, mileage or
other travel expenses are expended for work performed relating to tribal
gaming matters, the director of accounts and reports shall transfer moneys
in the tribal gaming fund to the state racing fund in an amount certified
monthly by the executive director and determined as equal to the salary
and subsistence, mileage and other travel expenses of the commission in-
curred during the preceding month and attributable to work performed
on tribal gaming matters by assistant attorneys general assigned to the
commission.

    Sec. 3. K.S.A. 1997 Supp. 74-8810 is hereby amended to read as
follows: 74-8810. (a) It is a class A nonperson misdemeanor for any person
to have a financial interest, directly or indirectly, in any racetrack facility
within the state of Kansas or in any host facility for a simulcast race
displayed in this state:

    (1) While such person is executive director or a member of the com-
mission or during the five years immediately following such person's term
as executive director or member of the commission; or

    (2) while such person is an officer, director or member of an organ-
ization licensee, other than a fair association or horsemen's nonprofit or-
ganization, or during the five years immediately following the time such
person is an officer, director or member of such an organization licensee.

    (b) It is a class A nonperson misdemeanor for any member, employee
or appointee of the commission, including stewards and racing judges, to
knowingly:

    (1) Participate in the operation of or have a financial interest in any
business which has been issued a concessionaire license, racing or wa-
gering equipment or services license, facility owner license or facility
manager license, or any business which sells goods or services to an or-
ganization licensee;

    (2) participate directly or indirectly as an owner, owner-trainer or
trainer of a horse or greyhound, or as a jockey of a horse, entered in a
race meeting conducted in this state;

    (3) place a wager on an entry in a horse or greyhound race conducted
by an organization licensee; or

    (4) accept any compensation, gift, loan, entertainment, favor or serv-
ice from any licensee, except such suitable facilities and services within a
racetrack facility operated by an organization licensee as may be required
to facilitate the performance of the member's, employee's or appointee's
official duties.

    (c) (1) Except as provided in paragraph (2), it is a class A nonperson
misdemeanor for any member, employee or appointee of the commission,
or any spouse, parent, grandparent, brother, sister, child, son-in-law,
daughter-in-law, grandchild, uncle, aunt, parent-in-law, brother-in-law or
sister-in-law thereof, to:

    (1) (A) Hold any license issued by the commission, except that a stew-
ard or racing judge shall hold an occupation license to be such a steward
or judge; or

    (2) (B) enter into any business dealing, venture or contract with an
owner or lessee of a racetrack facility in Kansas.

    (2) This subsection shall not apply to any racing judge holding an
occupation license, if such racing judge is employed at a racetrack facility
and such racing judge's relative, as listed above, is a licensed owner,
owner-trainer or trainer of a greyhound that races at a different racetrack
facility.

    (d) It is a class A nonperson misdemeanor for any officer, director or
member of an organization licensee, other than a fair association or horse-
men's nonprofit organization, to:

    (1) Receive, for duties performed as an officer or director of such
licensee, any compensation or reimbursement or payment of expenses in
excess of the amounts provided by K.S.A. 75-3223 and amendments
thereto for board members' compensation, mileage and expenses; or

    (2) enter into any business dealing, venture or contract with the or-
ganization licensee or, other than in the capacity of an officer or director
of the organization licensee, with a facility owner licensee, facility man-
ager licensee, racing or wagering equipment or services license or con-
cessionaire licensee, or with any host facility for a simulcast race displayed
in this state.

    (e) It is a class A nonperson misdemeanor for any facility owner li-
censee or facility manager licensee, other than a horsemen's association,
or any officer, director, employee, stockholder or shareholder thereof or
any person having an ownership interest therein, to participate directly
or indirectly as an owner, owner-trainer or trainer of a horse or grey-
hound, or as a jockey of a horse, entered in a live race conducted in this
state.

    (f) It is a class A nonperson misdemeanor for any licensee of the
commission, or any person who is an officer, director, member or em-
ployee of a licensee, to place a wager at a racetrack facility located in
Kansas on an entry in a horse or greyhound race if:

    (1) The commission has by rules and regulations designated such per-
son's position as a position which could influence the outcome of such
race or the parimutuel wagering thereon; and

    (2) such race is conducted at or simulcast to the racetrack facility
where the licensee is authorized to engage in licensed activities.

    (g) It is a class B nonperson misdemeanor for any person to use any
animal or fowl in the training or racing of racing greyhounds.

    (h) It is a class A nonperson misdemeanor for any person to:

    (1) Sell a parimutuel ticket or an interest in such a ticket to a person
knowing such person to be under 18 years of age, upon conviction of the
first offense;

    (2) accept, transmit or deliver, from a person outside a racetrack fa-
cility, anything of value to be wagered in any parimutuel system of wa-
gering within a racetrack facility, upon conviction of the first offense;

    (3) administer or conspire to administer any drug or medication to a
horse or greyhound within the confines of a racetrack facility in violation
of rules and regulations of the commission, upon conviction of the first
offense;

    (4) possess or conspire to possess, within the confines of a racetrack
facility, any drug or medication for administration to a horse or greyhound
in violation of rules and regulations of the commission, upon conviction
of the first offense;

    (5) possess or conspire to possess, within the confines of a racetrack
facility, equipment for administering drugs or medications to horses or
greyhounds in violation of rules and regulations of the commission, upon
conviction of the first offense;

    (6) enter any horse or greyhound in any race knowing such horse or
greyhound to be ineligible to compete in such race pursuant to K.S.A.
74-8812 and amendments thereto; or

    (7) prepare or cause to be prepared an application for registration of
a horse pursuant to K.S.A. 74-8830 and amendments thereto knowing
that such application contains false information.

    (i) It is a severity level 8, nonperson felony for any person to:

    (1) Sell a parimutuel ticket or an interest in such a ticket to a person
knowing such person to be under 18 years of age, upon conviction of the
second or a subsequent offense;

    (2) accept, transmit or deliver, from any person outside a racetrack
facility, anything of value to be wagered in any parimutuel system of
wagering within a racetrack facility, upon the second or a subsequent
conviction;

    (3) conduct or assist in the conduct of a horse or greyhound race, or
the display of a simulcast race, where the parimutuel system of wagering
is used or is intended to be used and where no license has been issued
to an organization to conduct or simulcast such race;

    (4) enter any horse or greyhound in any race conducted by an organ-
ization licensee knowing that the class or grade in which such horse or
greyhound is entered is not the true class or grade or knowing that the
name under which such horse or greyhound is entered is not the name
under which such horse or greyhound has been registered and has pub-
licly performed;

    (5) use or conspire to use any device, other than an ordinary whip for
horses or a mechanical lure for greyhounds, for the purpose of affecting
the speed of any horse or greyhound at any time during a race conducted
by an organization licensee;

    (6) possess or conspire to possess, within the confines of a racetrack
facility, any device, other than an ordinary whip for horses or a mechanical
lure for greyhounds, designed or intended to affect the speed of a horse
or greyhound;

    (7) administer or conspire to administer any drug or medication to a
horse or greyhound within the confines of a racetrack facility in violation
of rules and regulations of the commission, upon conviction of the second
or a subsequent offense;

    (8) possess or conspire to possess, within the confines of a racetrack
facility, any drug or medication for administration to a horse or greyhound
in violation of rules and regulations of the commission, upon conviction
of the second or a subsequent offense;

    (9) possess or conspire to possess, within the confines of a racetrack
facility, equipment for administering drugs or medications to horses or
greyhounds in violation of rules and regulations of the commission, upon
conviction of the second or a subsequent offense;

    (10) sponge the nostrils or windpipe of a horse for the purpose of
stimulating or depressing such horse or affecting its speed at any time
during a race meeting conducted by an organization licensee;

    (11) alter or attempt to alter the natural outcome of any race con-
ducted by, or any simulcast race displayed by, an organization licensee or
transmit or receive an altered race or delayed broadcast race if parimutuel
wagering is conducted or solicited after off time of the race;

    (12) influence or attempt to influence, by the payment or promise of
payment of money or other valuable consideration, any person to alter
the natural outcome of any race conducted by, or any simulcast race
displayed by, an organization licensee;

    (13) influence or attempt to influence any member, employee or ap-
pointee of the commission, by the payment or promise of payment of
money or other valuable consideration, in the performance of any official
duty of that member, employee or appointee;

    (14) fail to report to the commission or to one of its employees or
appointees knowledge of any violation of this act by another person for
the purpose of stimulating or depressing any horse or greyhound, or af-
fecting its speed, at any time during any race conducted by an organiza-
tion licensee;

    (15) commit any of the following acts with respect to the prior racing
record, pedigree, identity or ownership of a registered horse or greyhound
in any matter related to the breeding, buying, selling or racing of the
animal: (A) Falsify, conceal or cover up, by any trick, scheme or device,
a material fact; (B) make any false, fictitious or fraudulent statement or
representation; or (C) make or use any false writing or document knowing
that it contains any false, fictitious or fraudulent statement or entry; or

    (16) pass or attempt to pass, cash or attempt to cash any altered or
forged parimutuel ticket knowing it to have been altered or forged.

    (j) No person less than 18 years of age shall purchase a parimutuel
ticket or an interest in such a ticket. Any person violating this subsection
shall be subject to adjudication as a juvenile offender pursuant to the
Kansas juvenile justice code.

    Sec. 4. K.S.A. 74-8811 is hereby amended to read as follows: 74-
8811. The commission shall adopt rules and regulations establishing those
drugs and medications, and the levels thereof, which are allowable in the
blood or urine of any horse or greyhound when tested either just prior
to or immediately following participation in any race conducted by an
organization licensee. Animals in violation of such rules and regulations
shall may be disqualified from the race in which the animal is entered or
has participated on the day that such test was conducted.

    Sec. 5. K.S.A. 1997 Supp. 74-8816 is hereby amended to read as
follows: 74-8816. (a) The commission shall require occupation licenses
for:

    (1) Any owner of a horse or greyhound participating in a race con-
ducted by an organization licensee;

    (2) any person whose work, in whole or in part, is conducted within
a racetrack facility owned or leased by an organization licensee, including
trainers, jockeys, agents, apprentices, grooms, exercise persons, veteri-
narians, valets, blacksmiths, stewards, racing judges, starters, timers, su-
pervisors of mutuels, parimutuel tellers and clerks, guards and such other
personnel designated by the commission.

    (b) An occupation license shall be obtained from the commission
prior to the time a person engages in activities for which such license is
required, regardless of whether a race meeting is being conducted.

    (c) A person required to be licensed pursuant to subsection (a) shall
apply for such license in a manner and upon forms prescribed and fur-
nished by the commission. The commission may require the applicant to
submit to fingerprinting. Occupation licenses shall be issued for a period
established by the commission but not less than one year or more than
three years. The commission shall establish the amount of application
fees and license fees for different types of occupation licenses, but no
such fee shall exceed $200 a year. The application fee shall not be re-
fundable if the applicant fails to qualify for a license and shall include the
cost of processing fingerprints if they are required by the commission.

    (d) The commission may require an applicant for an occupation li-
cense as a condition of licensure to consent to allow agents of the Kansas
bureau of investigation or security personnel of the commission to search
without warrant the licensee's person, personal property and work prem-
ises while within the racetrack facility or adjacent facilities under the
control of the organization licensee for the purpose of investigating pos-
sible criminal violations of this act or violations of rules and regulations
of the commission.

    (e) Denial of an occupation license by the commission shall be in
accordance with the Kansas administrative procedure act. The commis-
sion may refuse to issue an occupation license to any person who:

    (1) Has been convicted of a felony by a court of any state or of the
United States 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 a felony;

    (2) has been convicted of a violation of any law of any state or of the
United States involving gambling or controlled substances 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
violation;

    (3) is not qualified to perform the duties associated with the license
being applied for;

    (4) fails to disclose any material fact or provides information, knowing
such information to be false, when applying for the license;

    (5) has been found by the commission to have violated any provision
of this act or any rule and regulation of the commission;

    (6) has had an occupation license suspended, revoked or denied for
just cause in any other jurisdiction;

    (7) has committed two or more acts of violence within the past two
years as established by a court of competent jurisdiction of any state or
of the United States; 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.

    (f) The commission may suspend or revoke an occupation license for
any reason which would justify refusal to issue such a license and may
impose a fine not exceeding $5,000 for each violation upon any occupation
licensee found to have violated any provision of this act or any rule and
regulation of the commission. Such fine may be imposed in addition to
or in lieu of suspending or revoking such person's occupation license.
Proceedings for the suspension or revocation of an occupation license or
imposition of a fine pursuant to this subsection shall be conducted by the
commission or its appointed hearing officer in accordance with the Kansas
administrative procedure act, except that, and not withstanding the pro-
vision of K.S.A. 77-512, subsection (b) of K.S.A. 77-526 and subsection
(b)(3) of K.S.A. 77-530(b)(3), and amendments thereto, any order entered
by a hearing officer appointed by the commission imposing such a fine or
suspension shall be a final order and effective when served.

    (g) The commission may provide by rules and regulations for the
temporary suspension of an occupation license by summary adjudicative
proceedings in accordance with the Kansas administrative procedure act
upon finding that there is probable cause to believe that grounds exist for
a permanent suspension or revocation of such license. Such suspension
shall be for a period not exceeding 30 days. Upon expiration of such
suspension, the license shall be restored unless the license has been sus-
pended or revoked pursuant to subsection (f).

    (h) The stewards at any horse race meeting and the racing judges at
any greyhound race meeting may impose on an occupation licensee a civil
fine not exceeding $500 or may suspend any occupation licensee's license
for a period not exceeding 15 days upon a finding by at least two of the
stewards or racing judges that there is probable cause to believe that the
occupation licensee has violated the provisions of this act or any rule or
regulation of the commission. No such fine or suspension shall be ordered
except after notice and opportunity for hearing in accordance with pro-
cedures established by rules and regulations of the commission. Any order
imposing such a fine or suspension is effective when rendered. The order
shall be subject to appeal to the commission, and may be stayed pending
such appeal, as provided by rules and regulations of the commission.
Proceedings on appeal shall be in accordance with the provisions of the
Kansas administrative procedure act.

    Sec. 6. K.S.A. 1997 Supp. 74-8831 is hereby amended to read as
follows: 74-8831. (a) There is hereby created in the state treasury the
Kansas greyhound 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 fund shall be expended as follows:

    (1) An amount equal to 15% of all moneys credited to the fund during
a fiscal year shall be transferred by the director of accounts and reports
on June 30 of each year to the greyhound tourism fund created by sub-
section (c);

    (2) an amount equal to 35% of all moneys credited to the fund during
a fiscal year shall be used for research conducted within the state of
Kansas relating to the prevention of injury to and disease of greyhounds;

    (3) subject to the provisions of subsection (e), an amount equal to
50% of all moneys credited to the fund during a fiscal year, less the
amount determined by the commission pursuant to subsection (b)(4),
shall be used by the racetrack facilities where derived to supplement stake
races for Kansas-whelped greyhounds as approved by the commission;
and

    (4) an amount determined by the commission, but not to exceed
$30,000 of the moneys credited to the fund during a fiscal year, shall be
used to pay a portion of the administrative costs of the official registering
agency designated by the commission pursuant to K.S.A. 74-8832 and
amendments thereto; and

    (5) as provided by subsection (e).

    (c) Moneys credited to the Kansas greyhound breeding development
fund shall be used only for the benefit of greyhounds.

    (d) There is hereby created in the state treasury the greyhound tour-
ism fund. Moneys in such fund shall be used only for the promotion of
greyhound-related tourism. 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 sec-
retary of commerce and housing or a person designated by the secretary.

    (e) If live greyhound racing ceases at a racetrack facility for a period
of 60 continuous days or the commission finds that live greyhound racing
is likely to cease at a racetrack facility for a period of 60 continuous days,
any undisbursed moneys that would otherwise be expended pursuant to
subsection (b)(3) shall be expended in accordance with the following:

    (1) The commission shall compile a roster of Kansas-whelped grey-
hounds in each licensed kennel on the day of racing at the racetrack
facility prior to the day of cessation of racing (the ``census date''), except
that any Kansas-whelped greyhound that has not been in residence in the
kennel and on the kennel's active list for five of the 14 days immediately
preceding the census date shall not be included in the roster.

    (2) The undisbursed moneys shall be divided equally among the qual-
ified Kansas-whelped greyhounds identified pursuant to the census de-
scribed in subsection (e)(1).

    (3) The funds awarded to each qualified Kansas-whelped greyhound
shall be divided equally between the licensed owner of the Kansas-
whelped greyhound and the licensed kennel owner in whose kennel the
Kansas-whelped greyhound was resident. If such a greyhound or kennel
has multiple owners, the owner's share and kennel owner's share shall be
prorated in accordance with the ownership percentages of each part
owner of such greyhound or kennel, as appears in the commission's mul-
tiple ownership or kennel registration records.

    (4) Payments to Kansas-whelped greyhound owners and kennel own-
ers pursuant to this subsection shall be made directly from the Kansas
greyhound breeding development fund to such greyhound owners and
kennel owners.

    Sec. 7. K.S.A. 1997 Supp. 74-8836 is hereby amended to read as
follows: 74-8836. (a) Any organization licensee that conducts at least 150
days of live racing during a calendar year or a fair association that conducts
fewer than 22 days of live racing during a calendar year may apply to the
commission for a simulcasting license to display simulcast horse or grey-
hound races and to conduct intertrack parimutuel wagering thereon. If
the organization licensee conducts races at a racetrack facility that is
owned by a facility owner licensee, both licensees shall join in the appli-
cation. A simulcasting license granted to a fair association that conducts
fewer than 22 days of live racing shall restrict the fair association's display
of simulcast races to a number of days, including days on which it con-
ducts live races, equal to not more than twice the number of days on
which it conducts live races.

    (b) (1) A simulcasting license granted to an organization licensee
other than a fair association shall authorize the display of simulcast races
at the racetrack facility where the live races are conducted so long as the
licensee conducts at least eight live races per day and an average of 10
live races per day per week. If a simulcasting licensee conducts live horse
races on a day when simulcast races are displayed by the licensee and the
licensee conducts fewer than an average of 10 live horse races per day
per week, not less than 80% of the races on which wagers are taken by
the licensee during such week shall be live races conducted by the li-
censee unless approved by the recognized horsemen's group or upon a
finding by the commission that the organization licensee was unable to
do so for reasonable cause. If a simulcast licensee conducts live greyhound
races on a day when simulcast races are displayed by the licensee and the
licensee schedules fewer than 13 live greyhound races during a perform-
ance on such day, not less than 80% of the races on which wagers are
taken by the licensee during such performance shall be live races con-
ducted by the licensee.

    (2) A simulcasting license granted to a fair association shall authorize
the display of simulcast races at the racetrack facility where the races are
conducted only if live races are scheduled for two or more days of the
same calendar week, except that the licensee may conduct simulcast races
in the week immediately before and immediately after a live meeting if
the total number of days on which simulcast races are displayed does not
exceed the total authorized in subsection (a). In no case shall the live
meet or simulcast races allowed under this subsection exceed 10 consec-
utive weeks. For purposes of this subsection, a calendar week shall be
measured from Monday through the following Sunday.

    (3) Notwithstanding the provisions of subsection (a), (b)(1) or (b)(2),
a fair association may apply to the commission for not more than five
additional days of simulcasting of special events. In addition, the com-
mission may authorize a fair association to display additional simulcast
races but, if such fair association is less than 100 miles from an organi-
zation licensee that is not a fair association, it must also secure written
consent from that organization licensee.

    (4) Notwithstanding the provisions of subsection (b)(1), if an emer-
gency causes the cancellation of all or any live races scheduled for a day
or performance by a simulcasting licensee, the commission or the com-
mission's designee may authorize the licensee to display any simulcast
races previously scheduled for such day or performance.

    (5) Notwithstanding the provisions of subsection (b)(1), the commis-
sion may authorize the licensee to display simulcast special racing events
as designated by the commission.

    (c) The application for a simulcasting license shall be filed with the
commission at a time and place prescribed by rules and regulations of
the commission. The application shall be in a form and include such
information as the commission prescribes.

    (d) To qualify for a simulcasting license the applicant shall:

    (1) Comply with the interstate horse racing act of 1978 (15 U.S.C.
3001 et seq.) as in effect December 31, 1991;

    (2) submit with the application a written approval of the proposed
simulcasting schedule signed by: (A) The recognized horsemen's group
for the track, if the applicant is licensed to conduct only horse races; (B)
the recognized greyhound owners' group, if the applicant is licensed to
conduct only greyhound races and only greyhound races are to be si-
mulcast; (C) both the recognized greyhound owners' group and a rec-
ognized horsemen's group, if the applicant is licensed to conduct only
greyhound races and horse races are to be simulcast; (D) the recognized
greyhound owners' group, if the applicant is licensed to conduct both
greyhound and horse races, only greyhound races are to be simulcast and
races are to be simulcast only while the applicant is conducting live grey-
hound races; (E) the recognized horsemen's group for the track, if the
applicant is licensed to conduct both greyhound and horse races, only
horse races are to be simulcast and races are to be simulcast only while
the applicant is conducting live horse races; or (F) both the recognized
greyhound owners' group and the recognized horsemen's group for the
track, if the applicant is licensed to conduct both greyhound races and
horse races and horse races are to be simulcast while the applicant is
conducting live greyhound races or greyhound races are to be simulcast
while the applicant is conducting live horse races; and

    (3) submit, in accordance with rules and regulations of the commis-
sion and before the simulcasting of a race, a written copy of each contract
or agreement which the applicant proposes to enter into with regard to
such race, and any proposed modification of any such contract or agree-
ment.

    (e) The term of a simulcasting license shall be one year.

    (f) A simulcasting licensee may apply to the commission or its des-
ignee for changes in the licensee's approved simulcasting schedule if such
changes are approved by the respective recognized greyhound owners'
group or recognized horsemen's group needed throughout the term of
the license. Application shall be made upon forms furnished by the com-
mission and shall contain such information as the commission prescribes.

    (g) Except as provided by subsection (j), the takeout for simulcast
horse and greyhound races shall be the same as it is for the live horse
and greyhound races conducted during the current or next live race meet-
ing at the racetrack facility where the simulcast races are displayed. For
simulcast races the tax imposed on amounts wagered shall be as provided
by K.S.A. 74-8823 and amendments thereto. The simulcasting licensee
shall be entitled to retain sufficient revenue to pay expenses directly re-
lated to the simulcast race or performance. The commission, by rules and
regulations, shall define what constitutes such expenses. Of the balance
of the takeout remaining after deduction of taxes and expenses, 50% shall
be paid to the simulcasting licensee. The remainder, an amount equal to
a percentage, to be determined by the commission, of the gross sum wa-
gered on simulcast races shall be used for purses, as follows:

    (1) For purses for greyhound races conducted by the licensee, if the
simulcast race is a greyhound race and the licensee conducts only live
greyhound races;

    (2) for purses for horse races conducted by the licensee, if the si-
mulcast race is a horse race and the licensee conducts only live horse
races;

    (3) for purses horse races and greyhound races, as determined by
both the recognized horsemen's group and the recognized greyhound
owners' group, if the simulcast race is a greyhound race and the licensee
does not conduct or is not currently conducting live greyhound races; or

    (4) for purses horse races and greyhound races, as determined by
both the recognized horsemen's group and the recognized greyhound
owners' group, if the simulcast is a horse race and the licensee does not
conduct or is not currently conducting live horse races. That portion of
simulcast purse money determined to be used for horse purses shall be
apportioned by the commission to the various horse race meetings held
in any calendar year based upon the number of live horse race dates
comprising such horse race meetings in the preceding calendar year.

    (h) Except as provided by subsection (j):

    (1) If a simulcasting licensee has a license to conduct live horse races
and the licensee displays a simulcast horse race: (A) All breakage proceeds
shall be remitted by the licensee to the commission not later than the
15th day of the month following the race from which the breakage is
derived and the commission shall promptly remit any such proceeds re-
ceived to the state treasurer, who shall deposit the entire amount in the
state treasury and credit it to the Kansas horse breeding development
fund created by K.S.A. 74-8829 and amendments thereto; and (B) all
unclaimed ticket proceeds shall be remitted by the licensee to the com-
mission on the 61st day after the end of the calendar year and the com-
mission shall promptly remit any such proceeds received to the state
treasurer, who shall deposit the entire amount in the state treasury and
credit it to the Kansas horse breeding development fund created by
K.S.A. 74-8829 and amendments thereto.

    (2) If a simulcasting licensee has a license to conduct live greyhound
races and the licensee displays a simulcast greyhound race, breakage and
unclaimed winning ticket proceeds shall be distributed in the manner
provided by K.S.A. 74-8821 and 74-8822, and amendments thereto, for
breakage and unclaimed winning ticket proceeds from live greyhound
races.

    (3) If a simulcasting licensee has a license to conduct live racing of
only horses and the licensee displays a simulcast greyhound race, un-
claimed winning ticket proceeds shall be distributed in the manner pro-
vided by K.S.A. 74-8822, and amendments thereto, for unclaimed win-
ning ticket proceeds from live greyhound races. Breakage for such races
shall be distributed for use to benefit greyhound racing as determined by
the commission.

    (4) If a simulcasting licensee has a license to conduct live racing of
only greyhounds and the licensee displays a simulcast horse race: (A) All
breakage proceeds shall be remitted by the licensee to the commission
not later than the 15th day of the month following the race from which
the breakage is derived and the commission shall promptly remit any such
proceeds received to the state treasurer, who shall deposit the entire
amount in the state treasury and credit it to the Kansas horse breeding
development fund created by K.S.A. 74-8829 and amendments thereto;
and (B) all unclaimed ticket proceeds shall be remitted by the licensee
to the commission on the 61st day after the end of the calendar year and
the commission shall promptly remit any such proceeds received to the
state treasurer, who shall deposit the entire amount in the state treasury
and credit it to the Kansas horse breeding development fund created by
K.S.A. 74-8829 and amendments thereto.

    (i) The commission may approve a request by two or more simul-
casting licensees to combine wagering pools within the state of Kansas
pursuant to rules and regulations adopted by the commission.

    (j) (1) The commission may authorize any simulcasting licensee to
participate in an interstate combined wagering pool with one or more
other racing jurisdictions.

    (2) If a licensee participates in an interstate pool, the licensee may
adopt the takeout of the host jurisdiction or facility, except that the tak-
eout shall not be more than 20% on win, place and show bets and not
more than 25% on all other bets. The amount and manner of paying
purses from the takeout in an interstate pool shall be as provided by
subsection (g).

    (3) The tax imposed on amounts wagered in an interstate pool shall
be as provided by K.S.A. 74-8823 and amendments thereto. Parimutuel
taxes may not be imposed on any amounts wagered in an interstate com-
bined wagering pool other than amounts wagered within this jurisdiction.

    (4) Breakage for interstate combined wagering pools shall be calcu-
lated in accordance with the statutes and rules and regulations of the host
jurisdiction and shall be allocated among the participating jurisdictions in
a manner agreed to among the jurisdictions. Breakage allocated to this
jurisdiction shall be distributed as provided by subsection (h).

    (5) Upon approval of the respective recognized greyhound owners'
group or recognized horsemen's group, the commission may permit an
organization licensee to simulcast to other racetrack facilities or off-track
wagering or intertrack wagering facilities in other jurisdictions one or
more races conducted by such licensee, use one or more races conducted
by such licensee for an intrastate combined wagering pool or use one or
more races conducted by such licensee for an interstate combined wa-
gering pool at off-track wagering or intertrack wagering locations outside
the commission's jurisdiction and may allow parimutuel pools in other
jurisdictions to be combined with parimutuel pools in the commission's
jurisdiction for the purpose of establishing an interstate combined wa-
gering pool.

    (6) The participation by a simulcasting licensee in a combined inter-
state wagering pool does not cause that licensee to be considered to be
doing business in any jurisdiction other than the jurisdiction in which the
licensee is physically located.

    (k) If the organization licensee, facility owner licensee if any and the
recognized horsemen's group or recognized greyhound owners' group are
unable to agree concerning a simulcasting application, the matter may be
submitted to the commission for determination at the written request of
any party in accordance with rules and regulations of the commission.

    (l) This section shall be part of and supplemental to the Kansas par-
imutuel racing act.

    Sec. 8. K.S.A. 1997 Supp. 74-9804 is hereby amended to read as
follows: 74-9804. (a) (1) The governor shall appoint, subject to confir-
mation by the senate as provided by K.S.A. 75-4315b, and amendments
thereto, an executive director of the state gaming agency, to serve at the
pleasure of the governor. Before appointing any person as executive di-
rector, the governor shall cause the Kansas bureau of investigation to
conduct a criminal history record check and background investigation of
the person.

    (2) The executive director shall: (A) Be in the unclassified service
under the Kansas civil service act; (B) devote full time to the executive
director's assigned duties; (C) be a citizen of the United States and an
actual resident of Kansas during employment as executive director; (D)
not have been convicted of a felony under the laws of any state or of the
United States prior to or during employment; and (E) have familiarity
with gaming industries sufficient to fulfill the duties of the office of ex-
ecutive director.

    (3) The executive director shall: (A) Determine, subject to the ap-
proval of the Kansas racing and gaming commission, the number and
qualifications of employees necessary to implement and enforce the pro-
visions of tribal-state gaming compacts and the provisions of the tribal
gaming oversight act; (B) employ persons for those positions; and (C)
perform such other duties as required by tribal-state gaming compacts.

    (b) (1) The executive director may appoint a director of enforcement
and compliance to serve at the pleasure of the executive director. Before
appointing any person as director of enforcement and compliance, the
executive director shall cause the Kansas bureau of investigation to con-
duct a criminal history record check and background investigation of the
person.

    (2) The director of enforcement and compliance shall: (A) Be in the
unclassified service under the Kansas civil service act; (B) devote full time
to the director's assigned duties; (C) receive such compensation as de-
termined by the executive director, subject to the limitations of appro-
priations therefor; (D) be a citizen of the United States and an actual
resident of Kansas during employment as director of enforcement and
compliance; (E) not have been convicted of a felony under the laws of
any state or of the United States prior to and during employment as
director of compliance; and (F) if vested with law enforcement powers,
have been a professional law enforcement officer with a minimum of five
years' experience in the field of law enforcement and at least a bachelor's
degree in law enforcement administration, law, criminology or a related
science or, in lieu thereof, a minimum of 10 years' experience in the field
of law enforcement.

    (3) The director of enforcement and compliance shall: (A) Be vested
with law enforcement authority;

    (B) conduct investigations relating to compliance with the provisions
of tribal-state gaming compacts and the provisions of the tribal gaming
oversight act;

    (B) (C) recommend proper compliance measures to tribal gaming
commissions;

    (C) (D) train and supervise such personnel as employed by the ex-
ecutive director to assist with such duties; and

    (D) (E) perform such other duties as directed by the executive di-
rector.

    (c) (1) The executive director may appoint compliance inspectors en-
forcement agents. Before appointing any person as a compliance inspector
enforcement agent, the executive director shall cause the Kansas bureau
of investigation to conduct a criminal history record check and back-
ground investigation of the person.

    (2) Each compliance inspector enforcement agent shall: (A) Be vested
with law enforcement authority;

    (B) be in the classified service under the Kansas civil service act;

    (B) (C) not have been convicted of a felony under the laws of any
state or of the United States prior to or during employment as compliance
inspector enforcement agent; and (C) if vested with law enforcement pow-
ers,

    (D) be a professional law enforcement officer with a minimum of two
years' experience in the field of law enforcement or, in lieu thereof, a
bachelor's degree from an accredited university or college.

    (3) Compliance inspectors Enforcement agents shall: (A) Conduct in-
vestigations relating to compliance with the provisions of tribal-state gam-
ing compacts or the provisions of the tribal gaming oversight act; and (B)
perform such other duties as directed by the executive director or the
director of enforcement and compliance.

    Sec. 9. K.S.A. 1997 Supp. 74-9806 is hereby amended to read as
follows: 74-9806. (a) Employees of the state gaming agency designated
by the executive director The director of enforcement and compliance and
all enforcement agents are hereby vested with the power and authority of
law enforcement officers in the execution of the duties imposed upon the
state gaming agency by the provisions of the tribal gaming oversight act
and tribal-state gaming compacts.

    (b) Employees designated pursuant to subsection (a) and shall have
the authority to:

    (1) Make arrests, conduct searches and seizures and carry firearms
while investigating violations of this act and during routine conduct of
their duties as determined by the executive director;

    (2) make arrests, conduct searches and seizures and generally enforce
all criminal laws of the state as violations of such laws are encountered
by such employees during the routine performance of their duties; and

    (3) issue notices to appear pursuant to K.S.A. 22-2408, and amend-
ments thereto.

    (c) (b) No employee of the state gaming agency shall be certified to
carry firearms under the provisions of this section without having first
successfully completed the firearms training course or courses prescribed
for law enforcement officers under subsection (a) of K.S.A. 74-5604a, and
amendments thereto. The executive director may adopt rules and regu-
lations prescribing other training required for such employees.

    (d) (c) It shall be the duty of the Kansas bureau of investigation to
conduct, or assist compliance enforcement personnel of the state gaming
agency and other law enforcement agencies in conducting, investigations
of violations of tribal-state gaming compacts, criminal violations of the
laws of this state at tribal gaming facilities, criminal violations of the tribal
gaming oversight act and other criminal activities related to tribal gaming.
Such duty may be performed independently of or in conjunction with
employees of the state gaming agency designated pursuant to this section
or tribal gaming commission inspectors. Employees of the state gaming
agency shall report immediately any criminal violations of the tribal gam-
ing oversight act and any criminal activities or suspected criminal activities
at tribal gaming facilities to the Kansas bureau of investigation. Employ-
ees of the Kansas bureau of investigation shall report any violations or
suspected violations of the tribal gaming oversight act to the executive
director or to employees of the state gaming agency designated pursuant
to this section.

    Sec. 10. K.S.A. 74-8809 and 74-8811 and K.S.A. 1997 Supp. 74-8802,
74-8802, as amended by section 1 of 1998 House Bill No. 3028, 74-8802a,
74-8802b, 74-8810, 74-8813a, 74-8816, 74-8831, 74-8836, 74-9804 and
74-9806 are hereby repealed.

    Sec. 11. This act shall take effect and be in force from and after its
publication in the Kansas register.

I hereby certify that the above Bill originated in the
House, and passed that body

__________________________________

House adopted
Conference Committee Report __________________________

__________________________________

Speaker of the House.

__________________________________

Chief Clerk of the House.

Passed the Senate
as amended __________________________

Senate adopted
Conference Committe Report __________________________

__________________________________

President of the Senate

__________________________________

Secretary of the Senate.

Approved__________________________

__________________________________

Governor.