Session of 1998
                   
SENATE BILL No. 692
         
By Committee on Federal and State Affairs
         
3-25
            9             AN ACT concerning bingo; relating to the regulation thereof; imposing
10             a tax on the distribution of bingo faces; amending K.S.A. 79-4701,
11             79-4704, 79-4705, 79-4705a, 79-4706, 79-4712a and 79-4713 and re-
12             pealing the existing sections.
13            
14       Be it enacted by the Legislature of the State of Kansas:
15           Section 1. K.S.A. 79-4701 is hereby amended to read as follows:
16       79-4701. As used in this act, each of the following words and phrases shall
17       have the following meaning unless the context otherwise requires:
18           (a) ``Bingo'' means the games of call bingo and instant bingo.
19           (b) ``Call bingo'' means a game in which each participant must pay a
20       charge and a prize or prizes are awarded to the winner or winners in
21       which each participant receives one or more cards or in which a card or
22       cards bingo faces or in which a bingo face or faces are included in a paper
23       game program booklet each of which is marked off into 25 squares ar-
24       ranged in five horizontal rows of five squares each and five vertical rows
25       of five squares each, with each square being designated by number, letter
26       or combination of numbers and letters, and only the center square des-
27       ignated with the word ``free'' with no two cards being identical, with the
28       players covering squares on each bingo face as the operator of such game
29       announces a number, letter or combination of numbers and letters ap-
30       pearing on an object selected by chance, either manually or mechanically
31       from a receptacle in which have been placed objects bearing numbers,
32       letters or combinations of numbers and letters corresponding to the sys-
33       tem used for designating the squares, with the winner of each game being
34       the player or players first properly covering a predetermined and an-
35       nounced pattern of squares upon the card or a card bingo face or a bingo
36       face which is included in a paper game program booklet being used by
37       such player or players. ``Call bingo'' does not include any game utilizing
38       an electronic or computerized card system.
39           (c) ``Instant bingo'' means a game: (1) In which each participant must
40       pay a charge; (2) in which a prize or prizes are awarded to the winner or
41       winners; (3) in which each participant receives one or more disposable
42       pull-tab or break-open tickets which accord a participant an opportunity
43       to win something of value by opening or detaching the paper covering

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  1       from the back of the ticket to reveal a set of numbers, letters, symbols or
  2       configurations, or any combination thereof; (4) which is conducted by a
  3       licensee under this act; (5) the conduct of which must be in the presence
  4       of the participants; and (6) which does not utilize any dice, normal playing
  5       cards, instant ticket with a removable latex covering or slot machines.
  6       ``Instant bingo'' does not include any game utilizing electronically gen-
  7       erated or computer-generated tickets.
  8           (d) ``Bingo card distributor'' ``Distributor'' means any person or entity
  9       that sells or otherwise distributes instant bingo tickets or disposable paper
10       call bingo cards bingo faces to licensees under this act.
11           (e) ``Nonprofit religious organization'' means any organization,
12       church, body of communicants, or group, gathered in common member-
13       ship for mutual support and edification in piety, worship, and religious
14       observances, or a society of individuals united for religious purposes at a
15       definite place and of which no part of the net earnings inures to the
16       benefit of any private shareholder or individual member of such organi-
17       zation, and which religious organization maintains an established place of
18       worship within this state and has a regular schedule of services or meet-
19       ings at least on a weekly basis and has been determined by the secretary
20       of revenue to be organized and created as a bona fide religious organi-
21       zation and which has been exempted from the payment of federal income
22       taxes as provided by section 501(c)(3) or section 501(d) of the federal
23       internal revenue code of 1954, as amended, or determined to be organ-
24       ized and operated as a bona fide nonprofit religious organization by the
25       secretary of revenue.
26           (f) ``Nonprofit charitable organization'' means any organization which
27       is organized and operated for:
28           (1) The relief of poverty, distress, or other condition of public con-
29       cern within this state; or
30           (2) for financially supporting the activities of a charitable organization
31       as defined in paragraph (1); or
32           (3) for conferring direct benefits on the community at large; and of
33       which no part of the net earnings inures to the benefit of any private
34       shareholder or individual member of such organization and has been de-
35       termined by the secretary of revenue to be organized and operated as a
36       bona fide charitable organization and which has been exempted from the
37       payment of federal income taxes as provided by sections 501(c)(3),
38       501(c)(4), 501(c)(5), 501(c)(6) and 501(c)(7) of the federal internal rev-
39       enue code of 1954, as amended, or determined to be organized and op-
40       erated as a bona fide nonprofit charitable organization by the secretary
41       of revenue.
42           (g) ``Nonprofit fraternal organization'' means any organization within
43       this state which exists for the common benefit, brotherhood, or other

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  1       interests of its members and is authorized by its written constitution,
  2       charter, articles of incorporation or bylaws to engage in a fraternal, civic
  3       or service purpose within this state and has been determined by the sec-
  4       retary of revenue to be organized and operated as a bona fide fraternal
  5       organization and which has been exempted from the payment of federal
  6       income taxes as provided by section 501(c)(8) or section 501(c)(10) of the
  7       federal internal revenue code of 1954, as amended, or determined to be
  8       organized and operated as a bona fide nonprofit fraternal organization by
  9       the secretary of revenue.
10           (h) ``Nonprofit educational organization'' means any public or private
11       elementary or secondary school or institution of higher education which
12       has been determined by the secretary of revenue to be organized and
13       operated as a bona fide educational organization and which has been
14       exempted from the payment of federal income taxes as provided by sec-
15       tion 501(c)(3) of the federal internal revenue code of 1954, as amended,
16       or determined to be organized and operated as a bona fide nonprofit
17       educational organization by the secretary of revenue.
18           (i) ``Nonprofit veterans' organization'' means any organization within
19       this state or any branch, lodge, or chapter of a national or state organi-
20       zation within this state, the membership of which consists exclusively of
21       individuals who qualify for membership because they were or are mem-
22       bers of the armed services or forces of the United States, or an auxiliary
23       unit or society of such a nonprofit veterans' organization the membership
24       of which consists exclusively of individuals who were or are members of
25       the armed services or forces of the United States, or are cadets, or are
26       spouses, widows or widowers of individuals who were or are members of
27       the armed services or forces of the United States, and of which no part
28       of the net earnings inures to the benefit of any private shareholder or
29       individual member of such organization, and has been determined by the
30       secretary of revenue to be organized and operated as a bona fide veterans'
31       organization and which has been exempted from the payment of federal
32       income taxes as provided by section 501(c)(4) or 501(c)(19) of the federal
33       internal revenue code of 1954, as amended, or determined to be organ-
34       ized and operated as a bona fide nonprofit veterans' organization by the
35       secretary of revenue.
36           (j) ``Lessor'' means the owner, coowner, lessor or sublessor of prem-
37       ises upon which a licensee is permitted to manage, operate or conduct
38       games of bingo, whether or not a written lease has been entered into and
39       submitted to the secretary of revenue as required in subsection (c) of
40       K.S.A. 79-4703, and amendments thereto, and includes all political sub-
41       divisions and other public agencies.
42           (k) ``Premises'' means any room, hall, building, enclosure or outdoor
43       area used for the management, operation or conduct of a game of bingo.

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  1           (l) ``Bingo face'' means a piece of paper which is marked off into 25
  2       squares arranged in five horizontal rows of five squares each and five
  3       vertical columns of five squares each, with each square being designated
  4       by a number, letter or combination of numbers and letters and only one
  5       square designated with the word ``free''. No two bingo faces in the same
  6       game shall be identical. Bingo faces shall be disposable and shall not be
  7       reused after the game in which a player has used such bingo face.
  8           Sec. 2. K.S.A. 79-4704 is hereby amended to read as follows: 79-
  9       4704. For the purpose of providing revenue which may be used by the
10       state, counties and cities and for the privilege of operating or conducting
11       games of bingo under the authority of this act:
12           (a) There is hereby levied and there shall be collected and paid by
13       each licensee a tax at the rate of 3% upon the gross receipts received by
14       the licensee from charges for participation in call bingo games and any
15       admission fees or charges in connection therewith. The tax imposed by
16       this section shall be in addition to the license fee imposed under K.S.A.
17       79-4703 and amendments thereto distributor a tax at a rate of .04 cent
18       upon each bingo face sold by the distributor to each licensee conducting
19       call bingo games within the state of Kansas. The distributor shall include
20       the tax due under this subsection in the sales price of each bingo face paid
21       by the licensee and such tax shall be itemized separately on the invoice
22       provided to the licensee.
23           (b) There is hereby levied and there shall be collected and paid by
24       each bingo card distributor a tax at a rate of 1% upon the total of the
25       printed retail sales price of all tickets in each box of instant bingo tickets
26       sold by the distributor to each licensee conducting instant bingo games
27       within the state of Kansas. The bingo card distributor shall include the
28       tax due under this subsection in the sales price of each box paid by the
29       licensee and such tax shall be itemized separately on the invoice provided
30       to the licensee.
31           (c) Whenever, in the judgment of the secretary of revenue, it is nec-
32       essary, in order to secure the collection of the tax due under subsection
33       (b) this section, the secretary shall require any bingo card distributor
34       subject to such tax to file a bond with the director of taxation under
35       conditions established by and in such form and amount as prescribed by
36       rules and regulations adopted by the secretary.
37           Sec. 3. K.S.A. 79-4705 is hereby amended to read as follows: 79-
38       4705. (a) On dates prescribed by the director of taxation, every licensee
39       operating or conducting a game of bingo shall make a return report to
40       the director of taxation upon forms prescribed by the director stating: (1)
41       The name and address of the organization,; (2) the amount of the gross
42       receipts received from charges for admission or participation in such
43       game during the preceding reporting period,; (3) the number of bingo

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  1       faces and the name of the distributor from whom such faces were pur-
  2       chased or otherwise obtained during the preceding reporting period; (4)
  3       the number of each denomination of instant bingo tickets sold during the
  4       preceding reporting period; and (5) such other information as the director
  5       may deem necessary. The licensee making the return shall, at the time
  6       of making such return, pay to the director of taxation the amount of the
  7       tax then due under K.S.A. 79-4704 and amendments thereto. The director
  8       may extend the time for making returns and payment of such taxes reports
  9       for a period not exceeding 60 days under rules and regulations adopted
10       by the secretary of revenue.
11           (b) On dates prescribed by the director of taxation, every bingo card
12       distributor shall make a return to the director of taxation upon forms
13       prescribed by the director, listing the number of instant bingo tickets sold
14       to each licensee, the amount of the retail sales price of such tickets, the
15       number of disposable paper call bingo faces sold to each licensee, the
16       amount of the wholesale price of such bingo faces and such other infor-
17       mation as the director may deem necessary. The distributor making the
18       return shall, at the time of making such return, shall pay to the director
19       of taxation the amount of tax then due on the instant bingo tickets under
20       K.S.A. 79-4704, and amendments thereto.
21           (c) If any licensee or bingo card distributor fails to make a report or
22       return, or to pay any tax, when required to do so by the provisions of this
23       act, except in the case of an extension of time granted by the director of
24       taxation, there shall be added to the tax determined to be due a penalty
25       of 25% of the amount of such tax, together with interest at the rate per
26       month prescribed by subsection (a) of K.S.A. 79-2968, and amendments
27       thereto, from the date the tax was due until paid.
28           (d) If any tax determined and assessed by the director of taxation is
29       unpaid due to fraud with intent to evade the tax imposed by this act, there
30       shall be added thereto a penalty of fifty percent 50% of the amount of
31       such tax, together with interest at the rate per month prescribed by sub-
32       section (a) of K.S.A. 79-2968, and amendments thereto, from the date
33       the tax was due until paid.
34           (e) Whenever, in the judgment of the director of taxation, the failure
35       of any licensee or bingo card distributor to comply with the provisions of
36       subsection (a) or (b) was due to reasonable cause, the director of taxation
37       may, in the director's discretion, may waive or reduce any of the penalties
38       or interest imposed by this section, upon making a record of the reason
39       therefor.
40           (f) The penalties imposed under this section shall be in addition to,
41       and in no way shall abridge, supersede, or contravene, other penalties
42       imposed by this act for violation of the provisions of this act.
43           Sec. 4. K.S.A. 79-4705a is hereby amended to read as follows: 79-

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  1       4705a. (a) For the purpose of ascertaining the correctness of any report
  2       or return or for the purpose of determining the receipts and payments
  3       of any licensee, the secretary of revenue shall have power to examine, or
  4       cause to be examined by any agent or representative designated by the
  5       secretary for that purpose, any books, papers, records or memoranda,
  6       bearing upon the matters required to be included in the records of the
  7       licensee, and may require the attendance of the licensee in the county
  8       where the licensee resides, or where the location or registered premises
  9       for bingo games are located, or of any person having knowledge relating
10       to such records, and may take testimony and require proof of such person
11       or persons.
12           (b) The secretary of revenue may issue subpoenas to compel access
13       to or for the production of such books, papers, records or memoranda in
14       the custody of or to which the licensee has access, or to compel the
15       appearance of such persons, and may issue interrogatories to any such
16       person to the same extent and subject to the same limitations as would
17       apply if the subpoena or interrogatories were issued or served in aid of a
18       civil action in the district court. The secretary or an agent or represen-
19       tative designated by the secretary for that purpose may administer oaths
20       and take depositions to the same extent and subject to the same limita-
21       tions as would apply if the deposition was in aid of a civil action in the
22       district court. In case of the refusal of any person to comply with any
23       subpoena or interrogatory or to testify to any matter regarding which such
24       person may be lawfully questioned, the district court of any county may,
25       upon application of the secretary, order such person to comply with such
26       subpoena or interrogatory or to testify. Failure to obey the court's order
27       may be punished by the court as contempt. Subpoenas or interrogatories
28       issued under the provisions of this section may be served upon individuals
29       and corporations in the manner provided in K.S.A. 60-304, and amend-
30       ments thereto, for the service of process by any officer authorized to serve
31       subpoenas in civil actions or by the secretary of revenue or an agent or
32       representative designated by the secretary.
33           Sec. 5. K.S.A. 79-4706 is hereby amended to read as follows: 79-
34       4706. Games of bingo managed, operated or conducted by organizations
35       licensed under the provisions of this act shall be managed, operated or
36       conducted subject to rules and regulations adopted by the secretary of
37       revenue and the following restrictions:
38           (a) The entire gross receipts received by any such organization from
39       the operation or conduct of games of bingo, except that portion utilized
40       for the payment of the cost of prizes and license fees and taxes imposed
41       under the provisions of this act, shall be used exclusively for the lawful
42       purposes of the organization permitted to conduct that game.
43           (b) No person except a bona fide member or spouse of a bona fide

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  1       member of the sponsoring organization or parent organization or an aux-
  2       iliary unit or society of such sponsoring organization may participate in
  3       the management, conduct or operation of any game of bingo.
  4           (c) No lessor, any employee of any such lessor or any employee, of-
  5       ficer or shareholder of a for profit corporation which is the lessor, shall
  6       play any game of bingo on premises leased by any such lessor or shall be
  7       responsible for or assist in the management, operation or conduct of any
  8       game of bingo on such premises.
  9           (d) No person may participate in the management, conduct or op-
10       eration of bingo games if such person, within five years prior to such
11       participation, has been convicted of or pleaded guilty or nolo contendere
12       to any felony or illegal gambling activity or purchased a tax stamp for
13       wagering or gambling activity.
14           (e) No person may receive any remuneration or profit for participat-
15       ing in the management, conduct or operation of any game of bingo.
16           (f) The aggregate value of all prizes including the retail value of all
17       merchandise awarded or offered by any such organization on any single
18       day to winners of games of call bingo shall not exceed $1,200, and any
19       prize awarded in cash of $100 or more shall be paid by a check drawn on
20       the bingo trust bank account of the licensee.
21           (g) The total number of call bingo games managed, operated or con-
22       ducted by any licensee in any one day shall not exceed 25 and not more
23       than five of such games shall be jackpot or special games and not more
24       than one licensee may conduct bingo games at a given location or regis-
25       tered premises in any one calendar day.
26           (h) The prize awarded in any one regular call bingo game shall not
27       exceed $50 in cash or its equivalent and such prize in any one jackpot or
28       special call bingo game shall not exceed $500 in cash or its equivalent.
29           (i) The retail value of any merchandise received by a winner of a
30       bingo game shall be considered as the cash value for the purposes of
31       determining the value of the prize.
32           (j) The charge made for a single reusable card or equivalent number
33       of disposable paper cards to play in call bingo games other than jackpot
34       or special games shall not exceed $1 and such reusable card or equivalent
35       number of disposable paper cards shall be valid for all such regular call
36       bingo games conducted or operated by the licensee on a particular day.
37       The charge made for a single reusable card or disposable paper card to
38       play in any single jackpot or special game shall not exceed $1. Paper game
39       program booklets with multiple bingo cards printed on the pages thereof
40       are permitted so long as the charge made for a regular game program
41       booklet does not exceed $1, except that the charge for such game program
42       booklet may be increased by an amount not exceeding $1 for each single
43       jackpot or special game in the game program booklet. The charge made

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  1       for a single instant bingo ticket shall not exceed $1.
  2           (k) Games of bingo shall not be managed, operated or conducted by
  3       any licensee on more than two calendar days in any one week.
  4           (l) All licenses issued under the provisions of this act shall be issued
  5       in the name of the organization licensed.
  6           (m) Each licensee shall keep a record of all bingo games managed,
  7       operated or conducted by it for a period of three years following the date
  8       the game is managed, operated or conducted.
  9           (n) No person under the age of 18 years shall participate in the man-
10       agement, operation or conduct of any game of bingo managed, operated
11       or conducted under the provisions of this act and no licensee shall sell
12       any instant bingo ticket to a person under the age of 18 years.
13           (o) A lessor of premises used for the management, operation or con-
14       duct of bingo or a licensee may not advertise bingo games except to the
15       extent and in the manner prescribed by the rules and regulations adopted
16       by the secretary of revenue, and any advertisement of any bingo game by
17       or on behalf of such lessor or licensee shall specify the organization which
18       is managing, operating or conducting the bingo game. For the purposes
19       of this act and rules and regulations of the secretary of revenue, an-
20       nouncement of the cancellation of a game of bingo shall not be considered
21       to be an advertisement.
22           (p) No lessor of premises used for the management, operation or
23       conduct of any games of bingo or any licensee shall offer an opportunity
24       to participate in a game of chance, drawing, contest, door prize, game,
25       test of skill, lottery or any similar activity as an inducement to participate
26       in games of bingo nor as a bingo prize or preliminary to the awarding of
27       a bingo prize.
28           (q) No licensee shall manage, operate or conduct bingo on any leased
29       premises or with leased equipment unless all of the terms and conditions
30       of rental or use, including the rental of chairs, bingo equipment, tables,
31       security guards, janitor service or any other services, are set forth in a
32       lease submitted, approved and on file with the secretary of revenue.
33           (r) No premises shall be used for the management, operation or con-
34       duct of bingo games on more than three calendar days in any one week.
35           (s) No premises shall be subdivided to provide multiple premises
36       where games of bingo are managed, operated or conducted, whether or
37       not the multiple premises have different addresses.
38           (t) No game of bingo shall be managed, operated or conducted on
39       leased premises if at any time during the immediately preceding 44 hours
40       the premises, or any leased premises within 1,000 feet of them, have been
41       used for the management, operation or conduct of a game of bingo.
42           (u) Every licensee who has gross receipts of $1,000 or more received
43       from participation in games, admission fees or charges and from any other

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  1       source directly related to the operation or conduct of any bingo games in
  2       any calendar month shall maintain a bingo trust bank account into which
  3       all such receipts are deposited daily and from which all payments are
  4       made relating to the management, operation or conduct of any bingo
  5       games, except payment of prizes of less than $100. Having once estab-
  6       lished such bingo trust bank account, the licensee shall continue to make
  7       deposits of all receipts therein. Every licensee shall notify the secretary
  8       of revenue of the name of the bank in which the bingo trust bank account
  9       is maintained, together with the number and name of the account. Every
10       licensee who maintains a bingo trust bank account shall maintain a com-
11       plete record of all deposits and withdrawals from such bank account and
12       the same shall be available to the secretary of revenue or the secretary's
13       agents or investigators to audit at any reasonable time.
14           (v) The records required under subsection (u) are in addition to all
15       other records required to be kept by the licensee by statute or rules and
16       regulations. The records required by subsection (u) shall be maintained
17       in the same place as all other records required to be kept by the licensee.
18           (w) No instant bingo ticket shall be sold by a licensee more than one
19       hour prior to the start of the first game of call bingo for the day or after
20       the termination of the last game of call bingo operated or conducted by
21       the licensee for such calendar day.
22           (x) No licensee shall purchase disposable paper call bingo cards faces
23       or instant bingo tickets from any person or entity other than a bingo card
24       distributor registered by the secretary of revenue as provided in this act.
25           (y) All instant bingo tickets sold or distributed to licensees shall bear
26       on the face thereof a unique serial number which shall not be repeated
27       on the same manufacturer's form number less than every three years. All
28       instant bingo tickets shall be sold or distributed in boxes, and each box
29       shall be sealed by the manufacturer with a seal which includes a warning
30       to the purchaser that the box may have been tampered with if the box
31       was received by the purchaser with the seal broken. Each box of instant
32       bingo tickets shall contain tickets printed in such a manner as to insure
33       that at least 60% of the gross revenues generated by the ultimate sale of
34       all tickets from such box shall be returned to the final purchasers of such
35       tickets. No box of instant bingo tickets may be opened by a licensee unless
36       all tickets contained in a previously opened box with the same form num-
37       ber have been sold.
38           (z) Each box of instant bingo tickets sold or distributed to licensees
39       shall be accompanied by a flare which contains the following information:
40       (1) The name of the game; (2) the manufacturer's name or logo; (3) the
41       game form number; (4) the ticket count in the game; (5) the prize struc-
42       ture for the game, which includes the number of winning tickets by de-
43       nomination and their respective winning symbol or number combinations;

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  1       (6) the cost per ticket; (7) the game serial number; (8) the winning num-
  2       bers or symbols for the top three winning tiers set out in such a manner
  3       that each prize may be marked off as the prize is won and awarded; (9)
  4       the business name of the bingo card distributor; and (10) the Kansas bingo
  5       license number of the licensee to which the game is sold.
  6           (aa) (1) The use of reusable bingo cards in bingo games operated and
  7       conducted by licensees is hereby prohibited. Bingo faces shall be used in
  8       bingo games operated and conducted by licensees.
  9           (2) The secretary shall require, pursuant to rules and regulations,
10       unique identification of each sheet of bingo faces in order to insure com-
11       pliance with the provisions of this act.
12           (3) Each package of bingo faces sold or distributed to licensees shall
13       be accompanied by a printed statement which contains the following in-
14       formation:
15           (A) The number of bingo faces contained in the package;
16           (B) the wholesale cost of each package, including the tax paid;
17           (C) the manufacturer's logo;
18           (D) the business name of the distributor;
19           (E) the Kansas bingo license number of the licensee to which the pack-
20       age is sold; and
21           (F) any other information required by the secretary.
22           Sec. 6. K.S.A. 79-4712a is hereby amended to read as follows: 79-
23       4712a. (a) No person or entity shall sell or otherwise distribute any dis-
24       posable paper call bingo cards bingo face or instant bingo tickets to any
25       organization licensed under the provisions of this act unless and until such
26       person or entity has made application for and has been issued a bingo
27       card distributor registration certificate by the secretary of revenue. Ap-
28       plication for registration shall be accompanied by a fee in the amount of
29       $500 and shall be made upon forms prescribed by the secretary.
30           (b) Each bingo card distributor registration certificate shall expire at
31       midnight on June 30 following its date of issuance. Application for renewal
32       of a registration certificate shall be accompanied by a fee in the amount
33       of $500 and shall be made upon forms prescribed by the secretary.
34           (c) The secretary of revenue shall establish by rule and regulation
35       reasonable criteria for approval of bingo card distributors. The secretary
36       of revenue shall refuse to register a bingo card distributor if any owner,
37       manager or employee thereof has, within five years prior to registration,
38       has been convicted of or pleaded guilty or nolo contendere to any felony
39       or illegal gambling violation in this or any other jurisdiction.
40           (d) All bingo card distributors shall maintain for a period of not less
41       than three years full and complete records of all disposable paper call
42       bingo cards bingo faces and instant bingo tickets sold to licensees within
43       this state. Such records shall be made available for inspection by any

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  1       authorized representative of the secretary of revenue.
  2           Sec. 7. K.S.A. 79-4713 is hereby amended to read as follows: 79-
  3       4713. (a) In addition to or in lieu of any other civil or criminal penalty
  4       provided by law, the secretary of revenue or the secretary's designee,
  5       upon a finding that a licensee under K.S.A. 79-4703, and amendments
  6       thereto, a lessor or a bingo card distributor has violated any provision of
  7       K.S.A. 79-4701 through 79-4705, 79-4705a, 79-4706, 79-4707, 79-4708,
  8       79-4710, 79-4711 or 79-4712, and amendments thereto, or any provision
  9       of any rule and regulation of the secretary of revenue adopted pursuant
10       thereto, shall impose on such licensee, lessor or bingo card distributor a
11       civil fine not exceeding $500 for each violation.
12           (b) No fine shall be imposed pursuant to this section except upon the
13       written order of the secretary of revenue or the secretary's designee to
14       the licensee, lessor or bingo card distributor who committed the violation.
15       Such order shall state the violation, the fine to be imposed and the right
16       of the licensee, lessor or bingo card distributor to appeal the order. Such
17       order shall be subject to appeal and review in the manner provided by
18       the Kansas administrative procedures act.
19           (c) Any fine collected pursuant to this section shall be paid to the
20       state treasurer, who shall deposit the entire amount in the state treasury
21       and credit it to the state bingo regulation fund.
22           Sec. 8. K.S.A. 79-4701, 79-4704, 79-4705, 79-4705a, 79-4706, 79-
23       4712a and 79-4713 are hereby repealed.
24           Sec. 9. This act shall take effect and be in force from and after its
25       publication in the statute book.
26