Session of 1999
         
HOUSE BILL No. 2537
         
By Committee on Federal and State Affairs
          
2-25
          
  9             AN  ACT concerning parimutuel racing; relating to simulcasting; amend-
10             ing K.S.A. 1998 Supp. 74-8836 and repealing the existing section.
11      
12       Be it enacted by the Legislature of the State of Kansas:
13             Section  1. K.S.A. 1998 Supp. 74-8836 is hereby amended to read as
14       follows: 74-8836. (a) Any organization licensee that conducts at least 150
15       days of live racing during a calendar year or a fair association that conducts
16       fewer than 22 days of live racing during a calendar year may apply to the
17       commission for a simulcasting license to display simulcast horse or grey-
18       hound races and to conduct intertrack parimutuel wagering thereon. If
19       the organization licensee conducts races at a racetrack facility that is
20       owned by a facility owner licensee, both licensees shall join in the appli-
21       cation. A simulcasting license granted to a fair association that conducts
22       fewer than 22 days of live racing shall restrict the fair association's display
23       of simulcast races to a number of days, including days on which it con-
24       ducts live races, equal to not more than twice the number of days on
25       which it conducts live races.
26             (b)  (1) A simulcasting license granted to an organization licensee
27       other than a fair association shall authorize the display of simulcast races
28       at the racetrack facility where the live races are conducted so long as the
29       licensee conducts at least eight live races per day and an average of 10
30       live races per day per week. If a simulcasting licensee conducts live horse
31       races on a day when simulcast races are displayed by the licensee and the
32       licensee conducts fewer than an average of 10 live horse races per day
33       per week, not less than 80% of the races on which wagers are taken by
34       the licensee during such week shall be live races conducted by the li-
35       censee unless approved by the recognized horsemen's group or upon a
36       finding by the commission that the organization licensee was unable to
37       do so for reasonable cause. If a simulcast licensee conducts live greyhound
38       races on a day when simulcast races are displayed by the licensee and the
39       licensee schedules fewer than 13 live greyhound races during a perform-
40       ance on such day, not less than 80% of the races on which wagers are
41       taken by the licensee during such performance shall be live races con-
42       ducted by the licensee.
43             (2) A simulcasting license granted to a fair association shall authorize

HB 2537

2

  1       the display of simulcast races at the racetrack facility where the races are
  2       conducted only if live races are scheduled for two or more days of the
  3       same calendar week, except that the licensee may conduct simulcast races
  4       in the week immediately before and immediately after a live meeting if
  5       the total number of days on which simulcast races are displayed does not
  6       exceed the total authorized in subsection (a). In no case shall the live
  7       meet or simulcast races allowed under this subsection exceed 10 consec-
  8       utive weeks. For purposes of this subsection, a calendar week shall be
  9       measured from Monday through the following Sunday.
10             (3) Notwithstanding the provisions of subsection (a), (b)(1) or (b)(2),
11       a fair association may apply to the commission for not more than five
12       additional days of simulcasting of special events. In addition, the com-
13       mission may authorize a fair association to display additional simulcast
14       races but, if such fair association is less than 100 miles from an organi-
15       zation licensee that is not a fair association, it must also shall secure writ-
16       ten consent from that organization licensee.
17             (4) Notwithstanding the provisions of subsection (b)(1), if an emer-
18       gency causes the cancellation of all or any live races scheduled for a day
19       or performance by a simulcasting licensee, the commission or the com-
20       mission's designee may authorize the licensee to display any simulcast
21       races previously scheduled for such day or performance.
22             (5) Notwithstanding the provisions of subsection (b)(1), the com-
23       mission may authorize the licensee to display simulcast special racing
24       events as designated by the commission.
25             (c) The application for a simulcasting license shall be filed with the
26       commission at a time and place prescribed by rules and regulations of
27       the commission. The application shall be in a form and include such
28       information as the commission prescribes.
29             (d) To qualify for a simulcasting license the applicant shall:
30             (1) Comply with the interstate horse racing act of 1978 (15 U.S.C.
31       3001 et seq.) as in effect December 31, 1991;
32             (2) submit with the application a written approval of the proposed
33       simulcasting schedule signed by: (A) The recognized horsemen's group
34       for the track, if the applicant is licensed to conduct only horse races; (B)
35       the recognized greyhound owners' group, if the applicant is licensed to
36       conduct only greyhound races and only greyhound races are to be si-
37       mulcast; (C) both the recognized greyhound owners' group and a rec-
38       ognized horsemen's group, if the applicant is licensed to conduct only
39       greyhound races and horse races are to be simulcast; (D) the recognized
40       greyhound owners' group, if the applicant is licensed to conduct both
41       greyhound and horse races, only greyhound races are to be simulcast and
42       races are to be simulcast only while the applicant is conducting live grey-
43       hound races; (E) the recognized horsemen's group for the track, if the

HB 2537

3

  1       applicant is licensed to conduct both greyhound and horse races, only
  2       horse races are to be simulcast and races are to be simulcast only while
  3       the applicant is conducting live horse races; or (F) both the recognized
  4       greyhound owners' group and the recognized horsemen's group for the
  5       track, if the applicant is licensed to conduct both greyhound races and
  6       horse races and horse races are to be simulcast while the applicant is
  7       conducting live greyhound races or greyhound races are to be simulcast
  8       while the applicant is conducting live horse races; and
  9             (3) submit, in accordance with rules and regulations of the commis-
10       sion and before the simulcasting of a race, a written copy of each contract
11       or agreement which the applicant proposes to enter into with regard to
12       such race, and any proposed modification of any such contract or
13       agreement.
14             (e) The term of a simulcasting license shall be one year.
15             (f) A simulcasting licensee may apply to the commission or its des-
16       ignee for changes in the licensee's approved simulcasting schedule if such
17       changes are approved by the respective recognized greyhound owners'
18       group or recognized horsemen's group needed throughout the term of
19       the license. Application shall be made upon forms furnished by the com-
20       mission and shall contain such information as the commission prescribes.
21             (g) Except as provided by subsection (j), the takeout for simulcast
22       horse and greyhound races shall be the same as it is for the live horse
23       and greyhound races conducted during the current or next live race meet-
24       ing at the racetrack facility where the simulcast races are displayed. For
25       simulcast races the tax imposed on amounts wagered shall be as provided
26       by K.S.A. 74-8823, and amendments thereto. Of the balance of the tak-
27       eout remaining after deduction of taxes, an amount equal to a percentage,
28       to be determined by the commission, of the gross sum wagered on si-
29       mulcast races shall be used for purses, as follows:
30             (1) For greyhound races conducted by the licensee, if the simulcast
31       race is a greyhound race and the licensee conducts only live greyhound
32       races;
33             (2) for horse races conducted by the licensee, if the simulcast race
34       is a horse race and the licensee conducts only live horse races;
35             (3) for horse races and greyhound races, as determined by both the
36       recognized horsemen's group and the recognized greyhound owners'
37       group, if the simulcast race is a greyhound race and the licensee does not
38       conduct or is not currently conducting live greyhound races; or
39             (4) for horse races and greyhound races, as determined by both the
40       recognized horsemen's group and the recognized greyhound owners'
41       group, if the simulcast is a horse race and the licensee does not conduct
42       or is not currently conducting live horse races. That portion of simulcast
43       purse money determined to be used for horse purses shall be apportioned

HB 2537

4

  1       by the commission to the various horse race meetings held in any calendar
  2       year based upon the number of live horse race dates comprising such
  3       horse race meetings in the preceding calendar year.
  4             (h) Except as provided by subsection (j):
  5             (1) If a simulcasting licensee has a license to conduct live horse races
  6       and the licensee displays a simulcast horse race: (A) All breakage proceeds
  7       shall be remitted by the licensee to the commission not later than the
  8       15th day of the month following the race from which the breakage is
  9       derived and the commission shall promptly remit any such proceeds re-
10       ceived to the state treasurer, who shall deposit the entire amount in the
11       state treasury and credit it to the Kansas horse breeding development
12       fund created by K.S.A. 74-8829, and amendments thereto; and (B) all
13       unclaimed ticket proceeds shall be remitted by the licensee to the com-
14       mission on the 61st day after the end of the calendar year and the com-
15       mission shall promptly remit any such proceeds received to the state
16       treasurer, who shall deposit the entire amount in the state treasury and
17       credit it to the Kansas horse breeding development fund created by
18       K.S.A. 74-8829, and amendments thereto.
19             (2) If a simulcasting licensee has a license to conduct live greyhound
20       races and the licensee displays a simulcast greyhound race, breakage and
21       unclaimed winning ticket proceeds shall be distributed in the manner
22       provided by K.S.A. 74-8821 and 74-8822, and amendments thereto, for
23       breakage and unclaimed winning ticket proceeds from live greyhound
24       races.
25             (3) If a simulcasting licensee has a license to conduct live racing of
26       only horses and the licensee displays a simulcast greyhound race, un-
27       claimed winning ticket proceeds shall be distributed in the manner pro-
28       vided by K.S.A. 74-8822, and amendments thereto, for unclaimed win-
29       ning ticket proceeds from live greyhound races. Breakage for such races
30       shall be distributed for use to benefit greyhound racing as determined by
31       the commission.
32             (4) If a simulcasting licensee has a license to conduct live racing of
33       only greyhounds and the licensee displays a simulcast horse race: (A) All
34       breakage proceeds shall be remitted by the licensee to the commission
35       not later than the 15th day of the month following the race from which
36       the breakage is derived and the commission shall promptly remit any such
37       proceeds received to the state treasurer, who shall deposit the entire
38       amount in the state treasury and credit it to the Kansas horse breeding
39       development fund created by K.S.A. 74-8829, and amendments thereto;
40       and (B) all unclaimed ticket proceeds shall be remitted by the licensee
41       to the commission on the 61st day after the end of the calendar year and
42       the commission shall promptly remit any such proceeds received to the
43       state treasurer, who shall deposit the entire amount in the state treasury

HB 2537

5

  1       and credit it to the Kansas horse breeding development fund created by
  2       K.S.A. 74-8829, and amendments thereto.
  3             (i) The commission may approve a request by two or more simul-
  4       casting licensees to combine wagering pools within the state of Kansas
  5       pursuant to rules and regulations adopted by the commission.
  6             (j)  (1) The commission may authorize any simulcasting licensee to
  7       participate in an interstate combined wagering pool with one or more
  8       other racing jurisdictions.
  9             (2) If a licensee participates in an interstate pool, the licensee may
10       adopt the takeout of the host jurisdiction or facility, except that the tak-
11       eout shall not be more than 20% on win, place and show bets and not
12       more than 25% on all other bets. The amount and manner of paying
13       purses from the takeout in an interstate pool shall be as provided by
14       subsection (g).
15             (3) The tax imposed on amounts wagered in an interstate pool shall
16       be as provided by K.S.A. 74-8823, and amendments thereto. Parimutuel
17       taxes may not be imposed on any amounts wagered in an interstate com-
18       bined wagering pool other than amounts wagered within this jurisdiction.
19             (4) Breakage for interstate combined wagering pools shall be cal-
20       culated in accordance with the statutes and rules and regulations of the
21       host jurisdiction and shall be allocated among the participating jurisdic-
22       tions in a manner agreed to among the jurisdictions. Breakage allocated
23       to this jurisdiction shall be distributed as provided by subsection (h).
24             (5) Upon approval of the respective recognized greyhound owners'
25       group or recognized horsemen's group, the commission may permit an
26       organization licensee to simulcast to other racetrack facilities or off-track
27       wagering or intertrack wagering facilities in other jurisdictions one or
28       more races conducted by such licensee, use one or more races conducted
29       by such licensee for an intrastate combined wagering pool or use one or
30       more races conducted by such licensee for an interstate combined wa-
31       gering pool at off-track wagering or intertrack wagering locations outside
32       the commission's jurisdiction and may allow parimutuel pools in other
33       jurisdictions to be combined with parimutuel pools in the commission's
34       jurisdiction for the purpose of establishing an interstate combined wa-
35       gering pool.
36             (6) The participation by a simulcasting licensee in a combined in-
37       terstate wagering pool does not cause that licensee to be considered to
38       be doing business in any jurisdiction other than the jurisdiction in which
39       the licensee is physically located.
40             (k) If the organization licensee, facility owner licensee if any and the
41       recognized horsemen's group or recognized greyhound owners' group are
42       unable to agree concerning a simulcasting application, the matter may be
43       submitted to the commission for determination at the written request of

HB 2537

6

  1       any party in accordance with rules and regulations of the commission.
  2             (l) This section shall be part of and supplemental to the Kansas par-
  3       imutuel racing act. 
  4       Sec.  2. K.S.A. 1998 Supp. 74-8836 is hereby repealed.
  5         Sec.  3. This act shall take effect and be in force from and after its
  6       publication in the statute book.
  7