(Corrected)
         
As Amended by House Committee
         
Session of 1999
         
HOUSE BILL No. 2016
         
By Joint Committee on Economic Development
         
12-30
         
11             AN  ACT concerning the state tourism fund; amending K.S.A. 79-4801
12             74-8720 and K.S.A. 1998 Supp. 74-9003 and repealing the existing
13             sections; also repealing K.S.A. 1998 Supp. 74-9004 and 74-9005.
14      
15       Be it enacted by the Legislature of the State of Kansas:
16             Section  1. K.S.A. 79-4801 is hereby amended to read as follows: 79-
17       4801. There is hereby created the state gaming revenues fund in the state
18       treasury. All moneys credited to such fund shall be expended or trans-
19       ferred only for the purposes and in the manner provided by this act and
20       all expenditures from the state gaming revenues fund shall be made in
21       accordance with appropriation acts. All moneys credited to such fund shall
22       be allocated and credited monthly to the funds and in the amounts spec-
23       ified by this act except that the total of the amounts credited to such
24       funds in any one fiscal year pursuant to this act shall not exceed
25       $50,000,000. All amounts credited to such fund in any one fiscal year
26       which are in excess of $50,000,000 shall be transferred and credited as
27       follows:
28             (a) The amount equal to $2,000,000 or 25% of the amount credited
29       to the state gaming revenues fund each year in excess of $50,000,000,
30       whichever is less, shall be transferred and credited to the state tourism
31       fund on June 25, 1999 and each year thereafter on June 25;
32             (b) the remainder of such funds in excess of $50,000,000 shall be cred-
33       ited to the state general fund on July 15, 1996, and June 25, 1997 1999,
34       and each year thereafter on June 25.
35        New Section  1. (a) There is hereby established in the state
36       treasury the lottery unclaimed prize fund. All moneys credited to
37       the lottery unclaimed prize fund shall be used for transfers to the
38       state tourism fund as prescribed by this section. No expenditures
39       shall be made from the lottery unclaimed prize fund except upon
40       specific authorization by act of the legislature.
41             (b) Except as otherwise provided in this subsection, upon the
42       expiration of each lottery game and the end of the period for prize

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  1       redemption for such game, the executive director of the lottery
  2       shall determine the amount equal to the aggregate amount of any
  3       unclaimed prizes for such expired game and shall certify such
  4       amount to the director of accounts and reports. The aggregate
  5       amount certified by the executive director of the lottery under this
  6       subsection for any fiscal year shall not exceed $2,000,000. Upon
  7       receipt of each such certification, the director of accounts and re-
  8       ports shall transfer the amount certified from the lottery operating
  9       fund to the lottery unclaimed prize fund.
10             (c) On June 25, 2000, and on each June 25 thereafter, the di-
11       rector of accounts and reports shall transfer all moneys credited
12       to the lottery unclaimed prize fund to the state tourism fund.
13             Sec.  2. K.S.A. 1998 Supp. 74-9003 is hereby amended to read as
14       follows: 74-9003. (a) There is hereby established in the state treasury the
15       state tourism fund. All moneys credited to the state tourism fund shall
16       only be used for expenditures for the purposes of developing new tourism
17       attractions in Kansas and to significantly expand existing tourism attrac-
18       tions in Kansas. Both public and private entities shall be eligible to apply
19       for funds under the provisions of this act.
20             (b) The secretary of commerce and housing shall administer the pro-
21       visions of this act. The secretary may shall adopt rules and regulations
22       establishing criteria for obtaining grants and other expenditures from such
23       fund and other matters deemed necessary for the administration of this
24       act, subject to review by the council on travel and tourism.
25             (c) All expenditures from such fund shall be made in accordance with
26       appropriation acts upon warrants of the director of accounts and reports
27       issued pursuant to vouchers approved by the secretary of commerce and
28       housing or the secretary's designee.
29             (d) The secretary of commerce and housing shall prepare and submit
30       budget estimates for all proposed expenditures from the state tourism
31       fund in accordance with the provisions of K.S.A. 75-3717 and 75-3717b
32       and amendments thereto. Such budget estimates shall include detailed
33       information regarding all proposed expenditures for programs, projects,
34       activities and other matters and shall set forth separately each program,
35       project, activity or other expenditure for which the proposed expenditures
36       from the state tourism fund for a fiscal year are for an amount that is
37       equal to $50,000 or more. Appropriations for the department of com-
38       merce and housing of moneys in the state tourism fund for each program,
39       project, activity or other expenditure for a fiscal year for an amount that
40       is equal to $50,000 or more shall be made as a separate item of
41       appropriation.
42             (e) The legislature shall approve or disapprove of any itemized ex-
43       penditure from the state tourism fund.

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  1             (d) Any expenditure from the state tourism fund shall be approved
  2       by the council on travel and tourism, except that the secretary may ap-
  3       prove projects equal to the amount of $50,000 or less without the consent
  4       of the council. Aggregate expenditures for projects approved solely by the
  5       secretary of commerce and housing shall not exceed 20% of total expend-
  6       itures from the fund in any fiscal year.
  7             (f) (e) On or before the 10th of each month, the director of accounts
  8       and reports shall transfer from the state general fund to the state tourism
  9       fund established in subsection (a) interest earnings based on:
10             (1) The average daily balance of moneys in the state tourism fund for
11       the preceding month; and
12             (2) the net earnings rate of the pooled money investment portfolio
13       for the preceding month.
14        Sec.  3. K.S.A. 74-8720 is hereby amended to read as follows:
15       74-8720. (a) As nearly as practical, an amount equal to not less than
16       45% of the total sales of lottery tickets or shares, computed on an
17       annual basis, shall be allocated for payment of lottery prizes.
18             (b) The prize to be paid or awarded for each winning ticket or
19       share shall be paid to one natural person who is adjudged by the
20       executive director, the director's designee or the retailer paying
21       the prize, to be the holder of such winning ticket or share, or the
22       person designated in writing by the holder of the winning ticket
23       or share on a form satisfactory to the executive director, except
24       that the prize of a deceased winner shall be paid to the duly ap-
25       pointed representative of the estate of such winner or to such other
26       person or persons appearing to be legally entitled thereto.
27             (c) The executive director shall award the designated prize to
28       the holder of the ticket or share upon the validation of a claim or
29       confirmation of a winning share. The executive director shall have
30       the authority to make payment for prizes by any means deemed
31       appropriate upon the validation of winning tickets or shares.
32             (d) The right of a person to a prize drawn or awarded is not
33       assignable.
34             (e) All prizes awarded shall be taxed as Kansas source income
35       and shall be subject to all state and federal income tax laws and
36       rules and regulations. State income taxes shall be withheld from
37       prizes paid whenever federal income taxes are required to be with-
38       held under current federal law.
39             (f) Unclaimed prize money not payable directly by lottery re-
40       tailers shall be retained for the period established by rules and
41       regulations and if no claim is made within such period, then, after
42       transferring the amounts prescribed by section 1 and amendments
43       thereto, the remaining amount of such unclaimed prize money shall

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  1       be added to the prize pools of subsequent lottery games.
  2             (g) The state of Kansas, members of the commission and em-
  3       ployees of the Kansas lottery shall be discharged of all further
  4       liability upon payment of a prize pursuant to this section.
  5             (h) The Kansas lottery shall not publicly disclose the identity
  6       of any person awarded a prize except upon written authorization
  7       of such person.
  8             Sec.  3. 4. K.S.A. 79-4801 74-8720 and K.S.A. 1998 Supp. 74-9003,
  9       74-9004 and 74-9005 are hereby repealed.
10        Sec.  4. 5. This act shall take effect and be in force from and after its
11       publication in the Kansas register.