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Session of 1999
          HOUSE BILL No. 2536           By Committee on Federal and State Affairs           2-25          

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  9             AN  ACT concerning the state lottery; relating to the use of moneys in
10             the lottery prize payment fund; amending K.S.A. 74-8712 and repeal-
11             ing the existing section.
12      
13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. K.S.A. 74-8712 is hereby amended to read as follows: 74-
15       8712. (a) There is hereby established in the state treasury the lottery prize
16       payment fund.
17             (b) The executive director shall certify periodically to the director of
18       accounts and reports such amounts as the executive director determines
19       necessary to pay prizes to the holders of valid winning lottery tickets or
20       shares or for the purchase of nonmonetary prizes. Upon receipt of such
21       certification, the director of accounts and reports shall promptly transfer
22       the amount certified from the lottery operating fund to the lottery prize
23       payment fund. Moneys credited to the fund shall be expended only for
24       the:
25             (1) The payment of prizes to the holders of valid winning lottery
26       tickets or shares, for;
27             (2) the reimbursement of retailers who have paid holders of winning
28       tickets or shares or;
29             (3) the purchase of nonmonetary prizes; or
30             (4) as purposes otherwise specifically authorized by law.
31             (c) Prior to making any expenditure for reimbursement of a retailer
32       or payment of a prize of $50 or more, the executive director shall cause
33       all proposed prize payments to be matched against the state debtor files
34       maintained by the director of accounts and reports and shall certify and
35       pay or deliver any matched prize or the cash amount thereof to the di-
36       rector of accounts and reports for setoff as prescribed under K.S.A. 75-
37       6201 et seq., and amendments thereto.
38             (d) Expenditures from such the lottery prize payment fund shall be
39       made in accordance with appropriations acts upon warrants of the direc-
40       tor of accounts and reports, or a person designated by the director of
41       accounts and reports pursuant to K.S.A. 75-3732, and amendments
42       thereto, issued pursuant to vouchers approved by the executive director,
43       or a person designated by the executive director. 
44       Sec.  2. K.S.A. 74-8712 is hereby repealed.
45         Sec.  3. This act shall take effect and be in force from and after its
46       publication in the statute book.