[As Amended by Senate Committee of the
Whole]
As Further Amended by Senate Committee
As Amended by Senate Committee
Session of 2000
Substitute for HOUSE BILL No. 2013
By Special Committee on Federal and State Affairs
2-23
12 AN
ACT concerning bingo; relating to the regulation and
taxation
13 thereof;
amending K.S.A. 79-4701, 79-4703, 79-4704, 79-4705,
79-
14 4705a,
79-4706, 79-4707, 79-4708, 79-4710, 79-4711, 79-4712a,
79-
15 4713 and
79-4714 and K.S.A. 1998 Supp. 79-3606 and repealing
the
16 existing
sections.
17 AN ACT
concerning lotteries; relating to the regulation
thereof;
18 amending K.S.A.
74-8711, 74-8712,
74-8720, 79-4701,
79-4703,
19 79-4704,
79-4705, 79-4705a, 79-4706, 79-4707, 79-4708, 79-
20 4710, 79-4711,
79-4712a and 79-4713 and K.S.A.
1998, 79-4713
21 and 79-4804 and
K.S.A. 1999 Supp. 74-8836 and
79-3606,
79-
22 4803
and repealing the existing sections; also repealing
K.S.A.
23
79-4714.
24
25 Be it enacted by the Legislature of the
State of Kansas:
26 New Section
1. Sections 1 through 16
17, and amendments thereto,
27 shall be known and may be cited as ``the
bingo act.''
28 Sec.
2. K.S.A. 79-4701 is hereby amended to read as follows:
79-
29 4701. As used in this act, each of the
following words and phrases shall
30 have the following meaning unless the
context otherwise requires:
31 (a) ``Act''
means the bingo act.
32
(b) ``Administrator'' means the administrator of charitable
gam-
33 ing designated by the secretary
pursuant to section 15, and amend-
34 ments thereto.
35
(a) (c) ``Bingo''
or ``games of bingo'' means the games of call bingo
36 and instant bingo.
37
(b)
(d) ``Bingo card'' or ``card'' means a
reusable card which is marked
38 off into 25 squares arranged in five
horizontal rows of five squares each
39 and five vertical rows of five squares
each, with each square being des-
40 ignated by a number, letter or
combination of numbers and letters. Only
41 the center square shall be designated
with the word ``free''. No two cards
2
1 in the same game shall be
identical.
2
(c)
(e) ``Bingo face'' or ``face'' means a piece
of paper which is marked
3 off into 25 squares arranged in
five horizontal rows of five squares each
4 and five vertical rows of five
squares each, with each square being des-
5 ignated by a number, letter or
combination of numbers and letters. Only
6 the center square shall be
designated with the word ``free''. No two bingo
7 faces in the same game shall be
identical. Faces shall be disposable and
8 shall not be reused after the game
in which a player has used such face.
9
(b) (d)
(f) ``Call bingo'' means a game in which:
(1) Each participant
10 must pay player
pays a charge and; (2) a prize or
prizes are awarded to
11 the winner or winners in
which; (3) each participant
player receives one
12 or more cards or
in which a card or cards are included in a paper
game
13 program booklet each of which is
marked off into 25 squares arranged in
14 five horizontal rows of five
squares each and five vertical rows of five
15 squares each, with each square
being designated by number, letter or
16 combination of numbers and letters,
and only the center square desig-
17 nated with the word ``free'' with
no two cards being identical, with the
18 players covering or
faces; and (4) each player covers the squares on
each
19 card or face as the operator of such
game announces a number, letter or
20 combination of numbers and letters
appearing on an object selected by
21 chance, either manually or mechanically
from a receptacle in which have
22 been placed objects bearing numbers,
letters or combinations of numbers
23 and letters corresponding to the system
used for designating the squares,
24 with. The winner of
each game being is the player or players
first properly
25 covering properly a predetermined
and announced pattern of squares
26 upon the card or a card which is
included in a paper game program
27 booklet face being
used by such player or players.
28 ``Call bingo''
shall include progressive
any regular, special and pro-
29 gressive [game
of] bingo.
30 ``Call bingo''
does shall not include any game utilizing
an electronic or
31 computerized card system.
32
(e)
(g) ``Department'' means the department of
revenue.
33
(f)
(h) ``Director'' means the director of
taxation.
34
(g)
(i) ``Distributor'' means any person or
entity that sells or distrib-
35 utes instant bingo tickets, bingo cards
or bingo faces to
operators.
36 (c)
(h) (j) ``Instant
bingo'' means a game: (1) In which each
partici-
37 pant must pay player
pays a charge; (2) in which a prize or prizes are
38 awarded to the winner or winners; (3) in
which each participant player
39 receives one or more disposable pull-tab or
break-open tickets which
40 accord a participant
player an opportunity to win something of value by
41 opening or detaching the paper covering
from the back of the ticket to
42 reveal a set of numbers, letters, symbols
or configurations, or any com-
43 bination thereof; (4) which is conducted by
a licensee under this act; (5)
3
1 the conduct of which must be in the
presence of the participants players;
2 and (6) which does not utilize any
dice, normal playing cards, instant ticket
3 with a removable latex covering or
slot machines. Winners of instant
4 bingo shall be determined
either (1) by a combination of letters,
5 numbers or symbols determined
and posted prior to the sale of in-
6 stant bingo tickets or
(2) by random selection during the session
at
7 which bingo tickets
are sold. [(2) by matching a letter,
number or
8 symbol under a tab of an
instant bingo ticket with the winning let-
9 ter, number or symbol in a
designated call game of bingo during
10 the same session.]
11 ``Instant bingo''
does shall not include any game utilizing
electronically
12 generated or computer-generated
tickets.
13 (k) ``Lessor'' means the
owner, coowner, lessor or sublessor of
14 premises upon which a licensee is
permitted to manage, operate or
15 conduct games of bingo, whether or
not a written lease has been
16 entered into and submitted to the
administrator as required in sub-
17 section (c) of K.S.A. 79-4703, and
amendments thereto, and includes
18 all political subdivisions and other
public agencies.
19
(l) ``Licensee'' means any nonprofit organization holding a
li-
20 cense to manage, operate or conduct
games of bingo pursuant to
21 K.S.A. 79-4701 et
seq., and amendments thereto.
22 (m) ``Mini
bingo'' means a game of call bingo in which the
23 prizes awarded are not less than 50% of
the gross receipts derived
24 from the sale of cards or faces for
participation in the game[,] but
25 not more than $50.
26
(i)
(k)
(n) ``Net proceeds'' means the gross receipts
received by the
27 licensee from charges imposed on players
for participation in games of
28 bingo and any admission fees or charges
less amounts actually paid as
29 prizes in games of bingo and any tax
payable by the licensee.
30
(d) ``Bingo card distributor'' means any person or
entity that sells or
31 otherwise distributes instant bingo
tickets or disposable paper call bingo
32 cards to licensees under this
act.
33 (e)
(j)
(l)
(o) ``Nonprofit religious organization'' means
any organi-
34 zation, church, body of communicants, or
group, gathered in common
35 membership for mutual support and
edification in piety, worship, and
36 religious observances, or a society of
individuals united for religious pur-
37 poses at a definite place and of which no
part of the net earnings inures
38 to the benefit of any private shareholder
or individual member of such
39 organization, and which religious
organization maintains an established
40 place of worship within this state and has
a regular schedule of services
41 or meetings at least on a weekly basis and
has been determined by the
42 secretary
administrator of revenue to be
organized and created as a bona
43 fide religious organization and which has
been exempted from the pay-
4
1 ment of federal income taxes as
provided by section 501(c)(3) or section
2 501(d) of the federal internal
revenue code of 1954 1986, as amended,
3 or determined to be organized and
operated as a bona fide nonprofit
4 religious organization by the
secretary administrator
of revenue.
5
(f) (k)
(m)
(p) ``Nonprofit charitable organization'' means
any organ-
6 ization which is organized and
operated for:
7 (1) The
relief of poverty, distress, or other condition of public con-
8 cern within this state; or
9 (2) for
financially supporting the activities of a charitable
organization
10 as defined in paragraph (1); or
11 (3) for
conferring direct benefits on the community at large; and of
12 which no part of the net earnings inures to
the benefit of any private
13 shareholder or individual member of such
organization and has been de-
14 termined by the
secretary administrator
of revenue to be organized and
15 operated as a bona fide charitable
organization and which has been ex-
16 empted from the payment of federal income
taxes as provided by sections
17 501(c)(3), 501(c)(4), 501(c)(5), 501(c)(6)
and 501(c)(7) of the federal in-
18 ternal revenue code of
1954 1986, as amended, or determined to
be
19 organized and operated as a bona fide
nonprofit charitable organization
20 by the secretary
administrator of revenue.
21 (g)
(l)
(n)
(q) ``Nonprofit fraternal organization'' means
any organi-
22 zation within this state which exists for
the common benefit, brotherhood,
23 or other interests of its members and is
authorized by its written consti-
24 tution, charter, articles of incorporation
or bylaws to engage in a fraternal,
25 civic or service purpose within this state
and has been determined by the
26 secretary
administrator of revenue to be
organized and operated as a
27 bona fide fraternal organization and which
has been exempted from the
28 payment of federal income taxes as provided
by section 501(c)(8) or sec-
29 tion 501(c)(10) of the federal internal
revenue code of 1954 1986, as
30 amended, or determined to be organized and
operated as a bona fide
31 nonprofit fraternal organization by the
secretary administrator
of
32 revenue.
33 (h)
(m)
(o)
(r) ``Nonprofit educational organization'' means
any pub-
34 lic or private elementary or secondary
school or institution of higher ed-
35 ucation which has been determined by the
secretary administrator
of
36 revenue to be organized
and operated as a bona fide educational organ-
37 ization and which has been exempted from
the payment of federal income
38 taxes as provided by section 501(c)(3) of
the federal internal revenue code
39 of 1954 1986, as
amended, or determined to be organized and operated
40 as a bona fide nonprofit educational
organization by the secretary
ad-
41 ministrator of
revenue.
42 (i)
(n)
(p)
(s) ``Nonprofit veterans' organization'' means
any organi-
43 zation within this state or any branch,
lodge, or chapter of a national or
5
1 state organization within this state,
the membership of which consists
2 exclusively of individuals who
qualify for membership because they were
3 or are members of the armed services
or forces of the United States, or
4 an auxiliary unit or society of such
a nonprofit veterans' organization the
5 membership of which consists
exclusively of individuals who were or are
6 members of the armed services or
forces of the United States, or are
7 cadets, or are spouses, widows or
widowers of individuals who were or
8 are members of the armed services or
forces of the United States, and of
9 which no part of the net earnings
inures to the benefit of any private
10 shareholder or individual member of such
organization, and has been
11 determined by the
secretary administrator
of revenue to be organized
12 and operated as a bona fide veterans'
organization and which has been
13 exempted from the payment of federal income
taxes as provided by sec-
14 tion 501(c)(4) or 501(c)(19) of the federal
internal revenue code of 1954
15 1986, as amended, or determined to
be organized and operated as a bona
16 fide nonprofit veterans' organization by
the secretary administrator
of
17 revenue.
18 (j)
(o)
(q)
(t)
``Lessor'' means the owner, coowner, lessor or
sublessor
19 of premises upon which a
licensee is permitted to manage, operate or
20 conduct games of bingo, whether
or not a written lease has been entered
21 into and submitted to the
secretary
administrator of
revenue as required
22 in subsection (c) of K.S.A.
79-4703, and
amendments thereto, and in-
23 cludes all political
subdivisions and other public agencies.
24
(p)
(r)
u
``Operator'' means any
person nonprofit
organization
is-
25 sued a license to manage,
operate or conduct games of bingo pursuant to
26 K.S.A. 79-4703, and
amendments thereto, and any
Native American In-
27 dian tribe
or other person or entity which
manages, operates or conducts
28 games of
bingo within the geographic
boundaries of the state of
29
Kansas.
30
(s) (t) ``Person''
means any natural person, corporation, part-
31 nership, trust or
association.
32
(k) (q)
(t)
(u) ``Premises'' means any room, hall, building,
enclosure
33 or outdoor area used for the management,
operation or conduct of a game
34 of bingo by a licensee.
35
(r)
(u)
(v) ``Progressive bingo
game'' means a game of call bingo
in
36 which either the established prize
amount or number of bingo balls or
37 objects called, or both, may be
increased from one session to the next
38 scheduled session if no player completes
the required pattern within the
39 specified number of bingo balls or
objects drawn. The player's opportunity
40 to win shall increase as the prize
amount increases.
41 (w) ``Regular game
of bingo'' means any game of bingo which is
42 subject to the 25 game limit, $50
prize limit and the $1 charge limit
43 imposed under subsections (g), (h)
and (j) of K.S.A. 79-4706, and
6
1 amendments thereto.
2
(s)
(v)
(x) ``Secretary'' means the secretary of
revenue or the secre-
3 tary's
designee.
4
(t)
(w)
(y) ``Session'' means a day on which a
licensee conducts games
5 of bingo.
6 Sec.
3. K.S.A. 79-4703 is hereby amended to read as follows:
79-
7 4703. (a) Any bona fide nonprofit
religious, charitable, fraternal, educa-
8 tional or veterans' organization
desiring to manage, operate or conduct
9 games of bingo within the state of
Kansas may make application for a
10 license therefor in the manner provided
under this section. Application
11 for licenses required under the provisions
of this act shall be made to the
12 secretary
administrator of revenue upon forms
prepared by the secre-
13 tary of revenue or the secretary's
designee and prescribed by the
secretary
14 administrator. The
application shall contain:
15 (1) The name and
address of the organization;
16 (2) the
particular place or location for which a license is desired;
17 (3) a sworn
statement verifying that such organization is a bona fide
18 nonprofit religious, charitable, fraternal,
educational or veterans' organi-
19 zation authorized to operate within the
state of Kansas signed by the
20 presiding officer and secretary of the
organization; and
21 (4) such other
information as may be required by the
secretary ad-
22 ministrator of
revenue.
23 (b) No bingo
license shall be issued to any bona fide nonprofit relig-
24 ious, charitable, fraternal, educational or
veterans' organization if any of
25 its officers, directors or officials or
persons employed on the premises:
26 (1) Has been
convicted of, has pleaded guilty to or pleaded nolo con-
27 tendere to a violation of gambling
laws of any state or the gambling laws
28 of the United States, or shall have
forfeited bond to appear in court to
29 answer charges for any such violation, or
has been convicted or pleaded
30 guilty or pleaded nolo contendere to
the violation of any law of this or any
31 other state which is classed as a felony
under the laws of such state;
32 (2) at the time
of application for renewal of a bingo license issued
33 hereunder would not be eligible for such
license upon a first application.
34 (c) An
application for a license required under the provisions of this
35 act shall be accompanied by a fee of $25
and if such organization is to
36 conduct bingo on any leased premises, the
terms of the lease shall be
37 reduced to writing and a copy of the lease
shall be submitted to the
38 secretary
of revenue. The secretary
of revenue shall have the power
and
39 administrator. The administrator
shall have the power and authority
40 to approve or disapprove any lease
submitted. No lease, which has been
41 approved by the
secretary administrator
of revenue, shall be amended,
42 modified or renewed in any manner until
such amendments, modifica-
43 tions or renewals of such lease have been
approved by and are on file
7
1 with the
secretary of
revenue. No lease submitted to the
secretary of
2 revenue
shall administrator. No lease
submitted to the administrator
3 shall be approved
unless:
4 (1) The
rental cost of the premises itself is fair and reasonable
and,
5 in no event,
shall. The rent charged for any session of bingo
shall not
6 exceed 50% of the net proceeds for
the session after payment of prizes
7 and taxes or the
fair and reasonable rental value determined by the
sec-
8 retary
administrator of revenue, whichever
is less. The rental costs so
9 charged shall be substantiated to the
secretary administrator
of revenue
10 under rules and regulations adopted
by the secretary pursuant to
the
11 bingo act.
12 (2) Any costs
additional to the costs under paragraph (1) of this sub-
13 section (c) which are to be borne by the
lessee shall reflect the actual
14 costs incurred by the lessor and
shall first shall be substantiated to
the
15 secretary
of revenue under rules and
regulations adopted by the secretary.
16 administrator under rules and
regulations adopted pursuant to the
17 bingo act.
18 (3) No costs
shall be borne by the lessee unless such costs are enu-
19 merated in the lease submitted to the
secretary administrator
of
20 revenue.
21 (d) Each
license issued shall expire at midnight on June 30 following
22 its date of issuance. A licensee may hold
only one license and that license
23 is valid for only one location. However,
any licensee may operate or con-
24 duct games of bingo, not to exceed five
days in any one year, at locations
25 other than that specified in the license
and. If any licensee does operate
26 or conduct games of bingo under this
provision at a location other than
27 that specified in the license, such
licensee shall submit a written notifi-
28 cation to the
secretary administrator
of revenue, at least three days prior
29 to operating or conducting bingo at
the change of such other location. No
30 organization shall be issued a license to
operate or conduct games of bingo
31 at any location outside the county within
which such organization is lo-
32 cated as reported in its application for
licensure pursuant to subsection
33 (a), nor shall any.
No licensee shall operate or conduct games of bingo
at
34 any location outside the county within
which such licensee is located.
35 Licenses issued under the provisions of
this act shall not be transferred
36 or assignable. If any organization licensed
to play bingo changes any of
37 its officers, directors or officials during
the term of its bingo license, such
38 organization shall report the names and
addresses of such individuals to
39 the secretary
administrator of revenue immediately
with the sworn
40 statement of each such individual as
required by this section on forms
41 furnished
prescribed by the secretary
administrator of revenue. No or-
42 ganization which denies its membership to
persons for the reason of their
43 race, color or physical handicap, shall be
granted or allowed to retain a
8
1 license issued under the authority of
this act. Except for nonprofit adult
2 care homes licensed under the laws of
the state of Kansas, no license shall
3 be issued to any organization under
the provisions of this act which has
4 not been in existence continuously
within the state of Kansas for a period
5 of 18 months immediately preceding
the date of making application for
6 a license. The licensee shall display
the license in a prominent place in
7 the vicinity of the area where it is
to conduct bingo.
8
(d) (e) No lessor of premises used for
the management, operation or
9 conduct of any games of bingo shall
permit the management, operation
10 or conduct of bingo games on such premises
unless and until such lessor
11 has made application for
and has been issued a registration certificate by
12 the secretary
administrator of revenue.
Application for registration shall
13 be accompanied by a fee in the
amount of $100 and. Such
application
14 shall be made upon forms prescribed by the
secretary administrator
and
15 shall be submitted to the
secretary
administrator. The application shall
16 contain:
17 (1) The name or
names of the lessor of premises which will be used
18 for the management, operation or conduct of
any games of bingo includ-
19 ing, in the case of a corporation,
partnership, association, trust or other
20 entity, the names of all individuals having
more than a 10% ownership
21 interest, either directly or indirectly in
such entity;
22 (2) the address
of such premises;
23 (3) the name or
names of any and all organizations which will manage,
24 operate or conduct any games of bingo on
such premises during the pe-
25 riod for which the registration certificate
is valid;
26 (4) such other
information as may be required by the
secretary
27 administrator.
28 (e)
(f) Each registration certificate, or renewal thereof,
issued under
29 the provisions of subsection
(d) (e) shall expire at midnight on June
30
30 following its date of issuance. The
certificate of registration shall be valid
31 for only one premises and shall be
prominently displayed in a prominent
32 place in the registered
premises.
33 (f) The
secretary of revenue shall not issue a (g) No
registration
34 certificate shall be issued for any
premises if any individual who is con-
35 nected in any way, directly or indirectly,
with the owner or lessor of the
36 premises has, within five
years prior to registration, has been convicted
37 of or pleaded guilty or nolo
contendere to any felony or illegal gambling
38 activity or purchased a tax stamp for
wagering or gambling activity.
39 Sec.
4. K.S.A. 79-4704 is hereby amended to read as follows:
79-
40 4704.
For the purpose of providing revenue which may be used
by the
41 state,
counties and cities and for the privilege of
operating or conducting
42 games of bingo under the
authority of this act:
43
(a) There is hereby levied and there shall be collected and
paid by
9
1 each licensee
remitted by the operator
a tax at the rate of 3% upon the
2 gross receipts received by
the licensee operator
from charges for partic-
3 ipation in call bingo
games using bingo cards
and any admission fees or
4 charges in connection
therewith. The
legal incidence of the tax under this
5 subsection is hereby
imposed upon the players of games of bingo. The
tax
6 imposed under this
subsection shall be paid by the player to the
operator
7 of games of bingo. The
operator shall collect from the player the
full
8 amount of the tax and
remit the same to the director. The tax
imposed by
9 this section
subsection shall be in
addition to the license fee imposed
10 under K.S.A.
79-4703, and
amendments thereto. The provisions of
this
11 subsection shall expire on
July 1, 2002.
12
(b) There is hereby levied and
there shall be collected and remitted
13 by each distributor a tax at
a rate of $0.002 upon each bingo face sold or
14 distributed by the
distributor to operators conducting call bingo
games
15 within the state of Kansas.
The legal incidence of the tax under this sub-
16 section is hereby imposed
upon the players of games of bingo. Such tax
17 shall be pre-collected by the
distributor from the players. The tax imposed
18 under this subsection shall
be paid by the player to the operator of games
19 of bingo. The operator shall
collect from the player the full amount of the
20 tax imposed and remit the
same to the distributor. The distributor shall
21 collect from the operator the
full amount of the tax imposed and remit the
22 same to the
director.
23
(b)
(c) There is hereby
levied and there shall be collected and paid
24 remitted
by each bingo card
distributor a tax at a rate of 1% upon
the
25 total of the printed retail
sales price of all tickets in each box of instant
26 bingo tickets sold
or distributed by the
distributor to each licensee con-
27 ducting instant bingo
games within the state of Kansas.
The bingo card
28 distributor shall include the tax
due under this subsection in the sales
29 price of each box paid by the
licensee and such tax shall be itemized
30 separately on the invoice provided
to the licensee The legal incidence
of
31 the tax under this subsection
is hereby imposed upon the players of games
32 of bingo. Such tax shall be
pre-collected by the distributor from the
play-
33 ers. The tax imposed under
this subsection shall be paid by the player to
34 the operator of games of
bingo. The operator shall collect from the
player
35 the full amount of the tax
imposed and remit the same to the distributor.
36 The distributor shall collect
from the operator the full amount of the tax
37 imposed and remit the same to
the director.
38
(c)
(d) Whenever, in the
judgment of the secretary of revenue, it is
39 necessary, in order to secure
the collection of the tax due under subsec-
40 tion (b)
this section, the
secretary shall require any bingo card
distributor
41 subject to
required to remit such
tax to file a bond with the director of
42 taxation under conditions
established by and in such form and amount as
43 prescribed by rules and
regulations adopted by the secretary.
10
1
For the privilege of participating in games of bingo, there
is
2 hereby levied upon
each player:
3
(a) A tax at the rate of 3% upon the charges made by each
op-
4 erator for
participation in call bingo games using hard cards.
The
5 operator shall
collect the tax from the player at the time that
the
6 player pays the
charges for participation and shall remit the tax
to
7 the director. The
ultimate legal incidence of and liability for
such
8 tax shall be upon
the player.
9
(b) A tax at the rate of $0.003 upon each bingo face sold
or
10 provided to the player by
the operator for participation in call
11 bingo games. The tax shall
be prepaid by the operator to the dis-
12 tributor at the time that
the operator purchases the bingo face. The
13 distributor shall remit
the tax to the director. The operator
shall
14 then be reimbursed for the
prepaid tax by collecting the tax from
15 each player at the time
that the player pays the charges for
partic-
16 ipation in call bingo
games using bingo faces. The ultimate
legal
17 incidence of and liability
for such tax shall be upon the player.
18
(c) A tax at the rate of 1% upon the retail sales price
printed on
19 each instant bingo ticket
sold or provided to the player by the op-
20 erator for participation
in instant bingo games. The tax shall be
21 prepaid by the operator to
the distributor at the time that the op-
22 erator purchases the bingo
face. The distributor shall remit the tax
23 to the director. The
operator shall then be reimbursed for the
pre-
24 paid tax by collecting the
tax from each player at the time that the
25 player pays the charges
for participation in instant bingo games.
26 The ultimate legal
incidence of and liability for such tax shall
be
27 upon the
player.
28 Sec. 4. K.S.A.
79-4704 is hereby amended to read as follows:
29 79-4704. For the purpose of providing
revenue which may be used
30 by the state,
counties and cities and for the privilege of
operating or
31 conducting games of bingo under the
authority of this act:
32 (a) There
is hereby levied and there shall be collected and paid
33 by each licensee a tax at the rate of
3% upon the gross receipts
34 received by the licensee from charges
for participation in call bingo
35 games using bingo
cards and any admission fees or charges
in con-
36 nection therewith.
The tax imposed by this section shall be in addi-
37 tion to the license fee imposed under
K.S.A. 79-4703, and amend-
38 ments thereto.
39
(b) There is hereby levied and there shall be collected and
paid by
40 each distributor a tax at a rate of
$0.002 upon each bingo face sold or
41 distributed by the distributor to each
licensee conducting call bingo games
42 within the state of Kansas. The
distributor shall include the tax due under
43 this subsection in the sales price of
each bingo face paid by the licensee
11
1 and such tax shall be itemized
separately on the invoice provided to the
2 licensee.
3
(b) (c) There is hereby levied
and there shall be collected and
4 paid by each
bingo card distributor a tax at a rate of 1%
upon the
5 total of the printed retail
sales price of all tickets in each box of
6 instant bingo tickets
sold or distributed by the distributor to
each
7 licensee conducting instant
bingo games within the state of Kansas.
8 The bingo
card distributor shall include the tax due under
this sub-
9 section in the sales price of
each box paid by the licensee and such
10 tax shall be itemized separately on
the invoice provided to the
11 licensee.
12
(c) (d) Whenever, in the
judgment of the secretary of revenue
ad-
13 ministrator, it is necessary,
in order to secure the collection of the
14 tax due under subsection (b),
the secretary administrator
shall require
15 any bingo
card distributor subject to such tax to file a bond
with the
16 director of
taxation under conditions established by and in such
form
17 and amount as prescribed by rules and
regulations adopted by the
18 secretary.
19 Sec.
5. K.S.A. 79-4705 is hereby amended to read as follows:
79-
20 4705. (a) On dates prescribed by the
director administrator
of taxation,
21 every licensee operating or
conducting a game of bingo operator shall
22 make a return to the
director administrator
of taxation upon forms pre-
23 scribed by the
director administrator
stating. Such form shall contain:
24 (1) The
name and address of the organization
operator
licensee,;
25 (2) the
amount of the gross receipts received from charges for
ad-
26 mission or participation
in such game games using bingo cards during
the
27 preceding reporting
period,;
28 (3) the number
of bingo faces and the name of the distributor from
29 whom such faces were purchased or
otherwise obtained during the pre-
30 ceding reporting period;
31 (4) the amount
of the gross receipts received from charges for admis-
32 sion to the premises for participation
in games of bingo during the pre-
33 ceding reporting period;
34 (5) the
number of each denomination of instant bingo tickets sold
35 during the preceding reporting period
and; and
36 (6) such
other information as the director
administrator may deem
37 necessary. The licensee making the
return shall,
38 (b) At the
time of making such return, pay
licensees
operators
li-
39 censees conducting call
bingo games using bingo cards shall remit to the
40 director
administrator of taxation the amount
of the tax then due under
41 subsection (a) of K.S.A.
79-4704, and amendments thereto. The
director
42 administrator may extend the
time for making returns and the payment
43 of such taxes for a period not exceeding 60
days under rules and regula-
12
1 tions adopted by the
secretary of revenue.
The provisions of this subsec-
2 tion shall expire on
July 1, 2002 adopted pursuant to the bingo
act.
3
(b) (c) On dates prescribed by the
director administrator
of taxation,
4 every bingo card
distributor shall make a return to the
director admin-
5 istrator of
taxation upon forms prescribed by the
director administra-
6 tor,
listing. Such form shall state:
7
(1) the number of instant bingo tickets sold or
distributed to each
8 licensee,
operator
licensee;
9
(2) the amount of the retail sales price of such
tickets,;
10 (3) the number
of bingo cards sold or distributed to each
operator
11 licensee;
12 (4) the
number of disposable paper call bingo faces sold
or distributed
13 to each licensee
operator licensee;
and
14 (5) and
such other information as the director
administrator may
15 deem necessary. The distributor
making the return shall, pay At the time
16 of making such return, the distributor
shall remit to the director
admin-
17 istrator of taxation
the an amount equal to 98% of tax
then due on the
18 instant bingo tickets under K.S.A.
79-4704 due under subsection (b) of
19 K.S.A. 79-4704, and amendments
thereto.
20 (c)
(d) If any licensee or bingo card
operator licensee
or distributor
21 fails to make a return, or to
pay or remit any tax, when required to do so
22 by the provisions of this act, except in
the case of an extension of time
23 granted by the
director administrator
of taxation, there shall be added
24 to the tax determined to be due a penalty
of 25% of the amount of such
25 tax, together with interest at the rate per
month prescribed by subsection
26 (a) of K.S.A. 79-2968, and
amendments thereto, from the date the tax
27 was due until paid.
28 (d)
(e) If any tax determined and assessed by the
director adminis-
29 trator of taxation is
unpaid is not remitted due to fraud with intent
to
30 evade the tax imposed by this act, there
shall be added thereto a penalty
31 of fifty percent
50% of the amount of such tax, together with interest at
32 the rate per month prescribed by subsection
(a) of K.S.A. 79-2968, and
33 amendments thereto, from the date
the tax was due until paid.
34 (e)
(f) Whenever, in the judgment of the
director administrator
of
35 taxation, the failure of
any licensee or bingo card
operator licensee
or
36 distributor to comply with the provisions
of subsection (a) or (b), (b) or
37 (c) was due to reasonable
cause, the director of taxation
may, in the di-
38 rector's
discretion, may
able cause, the administrator, in the admin-
39 istrator's discretion, may
waive or reduce any of the penalties or inter-
40 est imposed by this section, upon making a
record of the reason therefor.
41 (f)
(g) The penalties imposed under this section shall be
in addition
42 to , and in no way shall abridge,
supersede, or contravene, all other pen-
43 alties imposed by this act for
violation of the provisions of this act law.
13
1 Sec.
6. K.S.A. 79-4705a is hereby amended to read as follows:
79-
2 4705a. (a) For the purpose of
ascertaining the correctness of any return
3 or for the purpose of determining the
receipts and payments of any li-
4 censee
remittances of any operator
licensee or distributor, the
secretary
5 administrator
of revenue shall have power to examine, or cause to
be
6 examined by any agent or
representative designated by the secretary for
7 that purpose, may
examine any books, papers, records or memoranda,
8 bearing upon the matters required to
be included in the records of the
9 licensee
operator licensee
or distributor, and. The
secretary adminis-
10 trator may require the
attendance of the licensee
operator licensee
or
11 distributor in the county where the
licensee operator
licensee or distrib-
12 utor resides, or where the location
or of the registered premises for bingo
13 games are located, or of any person having
knowledge relating to such
14 records, and may take testimony and require
proof of such person or
15 persons.
16 (b) The
secretary administrator
of revenue may issue subpoenas to
17 compel access to or for the production of
such books, papers, records or
18 memoranda in the custody of or to which the
licensee operator
licensee
19 or distributor has access, or to
compel the appearance of such persons,
20 and. The
secretary
administrator may issue interrogatories to any
such
21 person to the same extent and subject to
the same limitations as would
22 apply if the subpoena or interrogatories
were issued or served in aid of a
23 civil action in the district court. The
secretary administrator
or an agent
24 or representative designated by the
secretary for that purpose may ad-
25 minister oaths and take depositions to the
same extent and subject to the
26 same limitations as would apply if the
deposition was in aid of a civil action
27 in the district court. In case of the
refusal of any person to comply with
28 any subpoena or interrogatory or to testify
to any matter regarding which
29 such person lawfully may be
lawfully questioned, the district court of any
30 county may, upon
application of the secretary
administrator, may order
31 such person to comply with such subpoena or
interrogatory or to testify.
32 Failure to obey the court's order may be
punished by the court as con-
33 tempt. Subpoenas or interrogatories issued
under the provisions of this
34 section may be served upon individuals and
corporations in the manner
35 provided in K.S.A. 60-304, and
amendments thereto, for the service of
36 process by any officer authorized to serve
subpoenas in civil actions or by
37 the secretary
administrator of revenue or an agent or
representative
38 designated by the
secretary.
39 Sec.
7. K.S.A. 79-4706 is hereby amended to read as follows:
79-
40 4706. Games of bingo managed,
operated or conducted by organizations
41 licensed under the provisions of
this act shall be managed, operated
or
42 conducted subject
to the provisions of this act
and rules and
regulations
43 adopted by the
secretary and conducted in accordance with the
bingo
14
1 act and rules and regulations
adopted pursuant thereto of revenue
2 and the following restrictions:
3 (a) The
entire gross receipts received by any such
organization li-
4 censee from the
operation or conduct of games of bingo, except that
5 portion utilized for the payment of
the cost of prizes and license fees and
6 taxes on games of bingo
cards imposed under the provisions of this
act,
7 shall be used exclusively for the
lawful purposes of the organization
li-
8 censee permitted to
conduct that game.
9
(b) No person
licensed under the bingo act
except Games of bingo
10 managed, conducted or operated by a
licensee, shall be managed,
11 conducted or operated only by
a bona fide member or spouse of a bona
12 fide member of the sponsoring
organization licensee or parent
organi-
13 zation or an auxiliary unit or society of
such sponsoring organization
li-
14 censee may
participate in the management, conduct or operation of
any
15 game of bingo.
16 (c) No lessor,
any employee of any such lessor
or any employee, of-
17 ficer or shareholder of a for profit
corporation which is the lessor, shall
18 play any game of bingo or participate
in any drawing on premises
19 leased by any such lessor or
shall nor shall such person be responsible for
20 or assist in the management, operation or
conduct of any game of bingo
21 or drawing on such
premises.
22 (d) No person may
participate in the management, conduct or op-
23 eration of bingo games by a
licensee if such person, within five years
24 prior to such participation, has been
convicted of or pleaded guilty or nolo
25 contendere to any felony or illegal
gambling activity or purchased a tax
26 stamp for wagering or gambling
activity.
27 (e) No
person may receive any remuneration or profit for
participat-
28 ing in the management, conduct
or operation of any game of bingo.
ing
29 in any game of bingo
managed, conducted or operated by
licensees.
30 (e) No person may receive any
remuneration or profit for partic-
31 ipating in the management, conduct or
operation of any game of
32 bingo managed, conducted or operated
by a licensee.
33 (f) The aggregate
value of all prizes including the retail value of all
34 merchandise awarded or offered by
any such organization a
licensee on
35 any single day in a
single session to winners of games of regular
and
36 special call bingo shall not
exceed $1,200, and. The value of a
prize
37 awarded in a progressive
call or mini bingo
game shall not be included
38 when determining the limit imposed by
this subsection. Any monetary
39 prize awarded in cash of
$100 of $500
$200 or more awarded in games
40 of bingo shall be paid by a check
drawn on the bingo trust bank account
41 of the licensee.
42 (g) The total
number of regular, special and progressive call
bingo
43 games managed, operated or conducted by any
licensee in any one day
15
1 session shall not exceed 25
and not more than five of such games shall be
2 jackpot or
special games and. Not more than one
licensee may conduct
3 bingo games at a given location or
registered premises in any one calendar
4 day
session.
5 (h) The
prize awarded by a licensee in any one regular call
bingo
6 game shall not exceed $50
in cash or its equivalent and such.
The prize
7 in any one jackpot
or special call bingo game shall not exceed $500
in
8 cash or its
equivalent.
9 (i) The
retail value of any merchandise received by a winner of a
10 bingo game shall be considered as the cash
value for the purposes of
11 determining the value of the prize.
12 (j) The charge
made by a licensee for a single
reusable bingo card
13 or equivalent number of disposable
paper cards bingo faces to play in
call
14 regular bingo games in any
one session, other
than jackpot or special
15
games, shall
not exceed $1 and. Such
reusable bingo card or equivalent
16 number of disposable paper
cards bingo faces shall be valid for all such
17 regular call bingo
games conducted or operated by the licensee on
a
18 particular day in any
one session. The charge made by a licensee for
a
19 single reusable
bingo card or disposable paper card
bingo face to play in
20 any single jackpot
or special, mini or progressive game
shall not exceed
21 $1. Paper game program booklets
with multiple bingo cards printed on
22 the pages thereof are permitted so
long as the charge made for a regular
23 game program booklet does not
exceed $1, except that the charge for
24 such game program booklet may be
increased by an amount not exceed-
25 ing $1 for each single jackpot or
special game in the game program book-
26 let. The charge made
by a licensee for a single instant bingo ticket
shall
27 not exceed $1.
28 (k) Games of
bingo shall not be managed, operated or conducted by
29 any licensee on more than two calendar days
in any one week.
30 (l) All licenses
issued under the provisions of this act shall be issued
31 in the name of the organization
licensed.
32 (m) Each
licensee
operator
licensee shall keep a record of all
bingo
33 games of bingo managed, operated or
conducted by it for a period of
34 three years following the date the game is
managed, operated or
35 conducted.
36 (n) No person
under the age of 18 years shall participate in the man-
37 agement, operation or conduct of any game
of bingo managed, operated
38 or conducted by a licensee
under the provisions of this act and no li-
39 censee shall sell any instant bingo ticket
to a person under the age of 18
40 years.
41 (o) A lessor of
premises used for the management, operation or con-
42 duct of games of bingo or a licensee
may not advertise games of bingo
43 games except to the extent
and in the manner prescribed by the rules
16
1 and regulations adopted by
the secretary pursuant to the bingo act.
of
2 revenue, and.
Any advertisement of any bingo game of
bingo by or on
3 behalf of such lessor or licensee
shall specify the organization which is
4 managing, operating or conducting
the bingo such game. For the
pur-
5 poses of this act and rules
and regulations of the secretary of revenue,
6 The announcement of the
cancellation of a game of bingo shall not be
7 considered to be an
advertisement.
8
(p) No lessor of premises used for the management,
operation or
9 conduct of any games of
bingo or any licensee shall offer an opportunity
10 to participate in a game of
chance, drawing, contest, door prize, game,
11 test of skill, lottery or any
similar activity as an inducement to participate
12 in games of bingo nor as a bingo
prize or preliminary to the awarding of
13 a bingo prize.
14 (p) (1) Except as
provided by paragraph (2) of this subsection,
15 no game of chance or contest where a
prize is awarded, other than
16 games of bingo, shall be conducted on
any premises where licensees
17 are conducting games of bingo, where
the intent of such game of
18 chance or contest is to induce
participation in such games of bingo.
19 (2) One
drawing per session may be conducted by the licensee.
20 Only a nonmonetary prize having a
value not exceeding $25 shall
21 be awarded to the winner of such
drawing. There shall be no charge
22 for participation in such drawing.
There shall be no requirement to
23 purchase anything of value in order
to participate in such drawing.
24 (q) No licensee
shall manage, operate or conduct bingo on any leased
25 premises or with leased equipment unless
all of the terms and conditions
26 of rental or use, including the rental of
chairs, bingo equipment, tables,
27 security guards, janitor service or any
other services, are set forth in a
28 lease submitted, approved and on file with
the secretary
administrator
29 of revenue.
30 (r) No premises
shall be used for the management, operation or con-
31 duct of bingo games of
bingo by licensees on more than three
calendar
32 days in any one week.
33 (s) No premises
shall be subdivided to provide multiple premises
34 where games of bingo are managed, operated
or conducted by licensees,
35 whether or not the multiple premises have
different addresses.
36 (t) No game of
bingo shall be managed, operated or conducted by
37 licensees on leased premises
if at any time during the immediately pre-
38 ceding 44 hours the premises, or any leased
premises within 1,000 feet
39 of them, have been used for the management,
operation or conduct of a
40 game of bingo.
41 (u) Every
licensee who has gross receipts of $1,000 or more received
42 from participation in games, admission fees
or charges and from any other
43 source directly related to the operation or
conduct of any bingo games of
17
1 bingo in any calendar month
shall maintain a bingo trust bank account
2 into which all such receipts are
deposited daily and from which all pay-
3 ments are made relating to the
management, operation or conduct of any
4 bingo games of
bingo, except payment of prizes of less than
$100 $500
5 $200. Having once
established such bingo trust bank account, the li-
6 censee shall continue to make
deposits of all receipts therein. Every li-
7 censee shall notify the
secretary administrator
of revenue of the name
8 of the bank in which the bingo trust
bank account is maintained, together
9 with the number and name of the
account. Every licensee who maintains
10 a bingo trust bank account shall maintain a
complete record of all deposits
11 and withdrawals from such bank account and
the same shall be available
12 to the secretary
administrator of revenue or the secretary's
agents or
13 investigators to audit at
any reasonable time.
14
(v) The records required under this
subsection (u) are in addition to
15 all other records required to be kept by
the licensee by statute or rules
16 and regulations. The
records required by this subsection (u)
shall be
17 maintained in the same place as all other
records required to be kept by
18 the licensee.
19 (w)
(v) No instant bingo ticket shall be sold and no
mini bingo game
20 shall be conducted by a
licensee more than one hour prior to the start
21 of the first regular or
special game of call bingo for the day
of a session
22 or after the termination of the last game
of call bingo operated or con-
23 ducted by the licensee for such
calendar day session.
24 (x)
(w) No licensee
operator licensee
shall purchase disposable paper
25 call bingo cards or
obtain bingo faces or instant bingo tickets from any
26 person or entity other than a bingo
card distributor registered by the
27 secretary of revenue as provided in
this act pursuant to K.S.A. 79-4712a,
28 and amendments thereto.
29 (y)
(x) All instant bingo tickets sold or distributed to
licensees oper-
30 ators
licensees shall bear on the face thereof a unique
serial number
31 which shall not be repeated on the same
manufacturer's form number
32 less than every three years. All instant
bingo tickets shall be sold or dis-
33 tributed in boxes,
and. Each box shall be sealed by the manufacturer
with
34 a seal which includes a warning to the
purchaser that the box may have
35 been tampered with if the box was received
by the purchaser with the
36 seal broken. Each box of instant bingo
tickets shall contain tickets printed
37 in such a manner as to insure that at least
60% of the gross revenues
38 generated by the ultimate sale of all
tickets from such box shall be re-
39 turned to the final purchasers of such
tickets. No box of instant bingo
40 tickets may be opened by a licensee unless
all tickets contained in a pre-
41 viously opened box with the same form
number have been sold.
42 (z)
(y) Each box of instant bingo tickets sold or
distributed to licens-
43 ees
operators licensees
shall be accompanied by a flare which contains
18
1 the following information: (1) The
name of the game; (2) the manufac-
2 turer's name or logo; (3) the game
form number; (4) the ticket count in
3 the game; (5) the prize structure for
the game, which includes the number
4 of winning tickets by denomination
and their respective winning symbol
5 or number combinations; (6) the cost
per ticket; (7) the game serial num-
6 ber; (8) the winning numbers or
symbols for the top three winning tiers
7 set out in such a manner that each
prize may be marked off as the prize
8 is won and awarded; (9) the business
name of the bingo card distributor;
9 and (10) if sold or distributed
to a licensee under the bingo act, the
10 Kansas bingo license number of the licensee
to which the game is sold.
11 (z)
(1) No progressive game may exceed 20 consecutive sessions
con-
12 ducted by a licensee prior to the
awarding of the established prize.
13 (2) No more
than two progressive bingo games may be conducted in
14 any one session.
15 (3) A prize
for a progressive game may start at an amount not to
16 exceed $250 and may be increased by no
more than $100 for each session
17 during which the progressive game is
continued. The prize awarded at
18 the end of any progressive game shall
not exceed $1,000.
19 (4) If the
progressive bingo game prize is not awarded at a bingo
20 session, the progressive bingo game shall
be continued at a future occa-
21 sion until such time a winner is
determined. The winning prize shall
not
22 have to be the full amount,
but a stated consolation prize in an
amount
23 not to exceed $250 may be awarded.
Any be the full amount. If there
24 is no winner of a progressive bingo
game at a session, a stated con-
25 solation prize may be awarded.
Any consolation prize shall be less than
26 the value of the progressive bingo game
prize amount.
27 (5) All
progressive bingo games and rules for such games shall be
28 described fully and posted in the house
rules prior to the start of the
29 session. Such games shall comply with
requirements imposed under the
30 bingo act and any rules and regulations
adopted pursuant thereto.
31 (6) When a
person achieves the first preannounced winning combi-
32 nation, the game shall be completed and
the next progressive bingo game
33 and winning combination shall be
commenced with a new bingo card or
34 face and all objects or balls in the
receptacle.
35 (7) The rules
for a progressive bingo game shall remain in effect until
36 the game ends and the winner is
determined.
37
(8) Progressive bingo games may not be conducted in
conjunction
38 with a session of bingo conducted at a
location other than that specified
39 in the license as authorized by
subsection (c) of 79-4703, and amendments
40 thereto.
41 (9) A licensee
shall not cease bingo operations unless all progressive
42 bingo games are completed and prizes are
awarded, unless prior approval
43 has been received from the
secretary.
19
1
(aa) Except as specifically provided by the
secretary in rules and reg-
2 ulations adopted
pursuant to the bingo act, the distribution, sale or
use
3 of
reusable bingo cards is
prohibited from and after July 1,
2002 2003,
4 and thereafter, only bingo faces
shall be distributed, sold or used in call
5 bingo games operated and conducted
by operators. The secretary
may
6 require the payment of
a tax at a rate of 3% on the gross receipts
received
7 by the operator from
charges for participation in call bingo games
using
8 bingo cards pursuant to
this subsection.
9 (bb) No
more than one prize for an instant bingo game may
be
10 awarded by matching a
letter, number or symbol under a tab of an
11 instant bingo ticket with
the winning letter, number or symbol in a
12 designated call bingo game
played during the same session.
13 [(bb) Only one game of
instant bingo in which the winner of
14 such game is determined by matching a
letter, number or symbol
15 under a tab of an instant bingo
ticket with the winning letter, num-
16 ber or symbol in a designated call
game of bingo during the same
17 session shall be played in any one
session.]
18 (cc) The
total number of mini games of bingo managed, oper-
19 ated or conducted by a licensee
during a session shall not exceed
20 12 games.
21 New Sec.
8. The secretary
administrator shall require, pursuant to
22 rules and regulations adopted
pursuant to the bingo act, identification
23 of each sheet of bingo faces in order to
insure compliance with the pro-
24 visions of this act. Each package of bingo
faces sold or distributed to
25 operators
licensees shall be accompanied by a printed statement
which
26 contains the following information:
27
(1) (a) The number of
bingo faces contained in the package;
28
(2) (b) the wholesale
cost of each package, including the tax paid;
29
(3) (c) identification
of the manufacturer;
30
(4) (d) the business
name of the distributor;
31
(5) (e) the Kansas bingo
license number of the licensee to which the
32 package is sold, if sold
or distributed to a licensee; and
33
(6) (f) any other
information required by the secretary
34 administrator.
35 Sec.
9. K.S.A. 79-4707 is hereby amended to read as follows:
79-
36 4707. (a) The
secretary administrator
of revenue, after a hearing in
37 accordance with the provisions of the
Kansas administrative procedure
38 act, may revoke or suspend any license or
registration certificate issued
39 under the provisions of this act for any
one of the following reasons:
40 (1) The licensee
or registrant has fraudulently obtained the
license
41 or registration certificate by giving false
information in the application
42 therefor;
43 (2) the licensee
or registrant has violated any of the laws of the state
20
1 of Kansas or provisions of this act
or any rules and regulations of the
2 secretary
of revenue for the registration,
licensing, taxing, management,
3 adopted pursuant thereto for
the registration, licensing, taxing,
4 management, conduct or
operation of games of bingo; or
5 (3) the
licensee or registrant has become ineligible to obtain a
license
6 under this act.
7 (b) Any
action of the secretary
administrator pursuant to subsection
8 (a) is subject to review in
accordance with the act for judicial review and
9 civil enforcement of agency actions.
In case of the revocation of the li-
10 cense of any licensee or the registration
of any registrant, no new license
11 or registration shall be issued to such
lessor, sublessor or organization, or
12 any person acting for or on its behalf, for
a period of six months thereafter.
13 No revocation or suspension of a license or
registration certificate shall
14 be for a period in excess of one year if
the applicant is otherwise is qual-
15 ified on the date the applicant makes a new
application therefor.
16 (c) The
secretary administrator
of revenue, or the secretary's des-
17 ignee, is hereby
authorized to enjoin any person from managing, oper-
18 ating or conducting any games of bingo, or
from leasing any premises for
19 such purposes, if such person does not
possess a valid license or registra-
20 tion certificate issued pursuant to the
provisions of the acts contained in
21 article 47 of chapter 79 of the
Kansas Statutes Annotated and amend-
22 ments thereto, and
bingo act. The secretary
administrator, or the sec-
23 retary's designee, shall
be entitled to have an order restraining such per-
24 son from managing, operating or conducting
any games of bingo or for
25 any other purpose contrary to the
provisions of the acts contained in
26 article 47 of chapter 79 of the
Kansas Statutes Annotated and amend-
27 ments thereto, bingo
act or from leasing premises for any of such pur-
28 poses, and. No bond
shall be required for any such restraining order, nor
29 for any temporary or permanent injunction
issued in such proceedings.
30 The provisions of
this section shall not apply to games of
bingo
31 managed, operated or
conducted by Native American Indians.
32 Sec.
10. K.S.A. 79-4708 is hereby amended to read as follows:
79-
33 4708. The
administration and
enforcement of
this the bingo
act shall be
34 vested in the
secretary of revenue
who. The secretary
shall adopt and
35 enforce rules and regulations
to regulate, license, and tax the
manage-
36 ment, operation and conduct of
games of bingo and participants therein
37 and to properly
administer and enforce the provisions of
this the bingo
38 act. Also,
the secretary shall adopt rules and regulations relating to
the
39 leasing of premises for the
management, operation and conduct of games
40 of bingo.
41 (a) The
administration and enforcement of the bingo act and
42 any rules and regulations adopted
pursuant thereto shall be vested
43 in the administrator.
21
1
(b) Upon recommendation of the administrator, the
secretary
2 shall adopt all rules and
regulations necessary for the administra-
3 tion and enforcement of the
bingo act by the administrator.
4 Sec.
11. K.S.A. 79-4710 is hereby amended to read as follows:
79-
5 4710. (a) All amounts received by or
for the secretary
administrator of
6 revenue from license
and registration fees pursuant to this act shall be
7 remitted to the state treasurer
and. The state treasurer shall deposit
all
8 of such moneys in the state treasury
and, except as otherwise provided
9 by K.S.A. 79-4711, and
amendments thereto, for maintenance of
the
10 bingo refund fund, shall
credit the same to the state bingo regulation
11 fund.
12 (b) All amounts
received by or for the secretary
administrator of
13 revenue from the tax
levied pursuant to K.S.A. 79-4704, and amendments
14 thereto, shall be remitted to the
state treasurer and. The state
treasurer
15 shall deposit all of such moneys in the
state treasury and shall credit the
16 same to the state bingo regulation
fund.
17 (c) There
is hereby created, in the state treasury, the state bingo
18 regulation fund and the county and
city bingo tax fund. Subject to the
19 maintenance requirements of the
bingo refund fund under K.S.A. 79-
20 4711 and amendments thereto, 1/3 of
each deposit shall be credited to the
21 state general fund, 1/3 of each
deposit to the state bingo regulation fund
22 and the remaining 1/3 of such
deposit shall be credited to the county and
23 city bingo tax fund.
Moneys Except as provided by
subsections (d) and
24 (e), all moneys in the state
bingo regulation fund shall be expended
25 exclusively
for the administration and enforcement of the bingo
statutes
26 in article 47 of chapter 79 of
Kansas Statutes Annotated act, and amend-
27 ments thereto, and rules and
regulations adopted pursuant thereto. Such
28 expenditures shall be made upon vouchers
approved by the secretary
29 administrator of
revenue or a person designated by the secretary.
30 (c) All
moneys deposited in the county and city bingo tax fund
shall
31 be returned to the counties and
cities in which the locations and regis-
32 tered premises are located at a
time or times fixed by the secretary but
33 not less than once each year. If
the locations and registered premises are
34 located within the corporate limits
of a city, all taxes collected therefrom
35 shall be remitted to the city
treasurer of such city and credited to the city
36 general fund. If the locations and
registered premises are located within
37 the unincorporated area of any
county, all taxes collected therefrom shall
38 be remitted to the county treasurer
of such county and credited to the
39 county general fund. Moneys
distributed to cities and counties under this
40 section shall be used to assist in
the enforcement of the bingo laws of this
41 state.
42 (d) Except as
otherwise provided by this act, all operating expenses
43 of the secretary
related to the administrator related to the
administra-
22
1 tion and enforcement
of the bingo act appropriated by the legislature
2 shall be paid from the state bingo
regulation fund. On the 15th day
of
3 each month, and at such
other times as provided by law, At the end
of
4 each fiscal year,
the director of accounts and reports shall transfer to
5 the state general fund any moneys
in the state bingo regulation fund on
6 each such date in excess of the
amount required for
operating
expendi-
7 tures
to pay all operating expenses of the of
the secretary administra-
8 tor related to
the enforcement of the bingo act and an adequate
fund
9 balance, taking into
consideration encumbrances, anticipated
revenues,
10 revenue and expenditure
experience to date and other relevant factors,
as
11 determined by the secretary
and the director of accounts and reports.
12 administration and enforcement of the
bingo act.
13 (e) On July 1 of each year
or as soon thereafter as sufficient
14 moneys are available, $20,000
credited to the state bingo regulation
15 fund shall be transferred and
credited to the problem gambling
16 grant fund established by
section 21
[20], and amendments thereto.
17
(e) (f) Upon
the effective date of this act, the director of accounts
and
18 reports shall transfer all moneys in the
county and city bingo tax fund to
19 the state bingo regulation fund. Upon
the effective date of this act, all
20 liabilities of the county and city bingo
tax fund existing prior to the effec-
21 tive date are hereby imposed on the
state bingo regulation fund. The
22 county and city bingo tax fund is hereby
abolished.
23 Sec.
12. K.S.A. 79-4711 is hereby amended to read as follows:
79-
24 4711. There is hereby created the bingo
refund fund in the state treasury.
25 The bingo refund fund shall be a refund
clearing fund and refunds of the
26 fees imposed under K.S.A. 79-4703,
and amendments thereto, and of the
27 tax levied under K.S.A. 79-4704, and
amendments thereto, shall be made
28 from this such
fund. The bingo refund fund shall be maintained by the
29 secretary
administrator of revenue from the
license and registration fees
30 received under this act and from
the tax collected under K.S.A. 79-4704
31 and amendments thereto
and taxes collected under the bingo act in an
32 amount sufficient for such refunds not to
exceed $10,000.
33 Sec.
13. K.S.A. 79-4712a is hereby amended to read as follows:
79-
34 4712a. (a) No person or entity shall sell
or otherwise distribute any
dis-
35 posable paper call
bingo faces, bingo cards or instant bingo tickets to any
36 organization licensed under the
provisions of this act
operator licensee
37 unless and until such
person or entity has made application for and
has
38 been issued a bingo card
distributor registration certificate by the
sec-
39 retary
administrator of revenue.
Application for registration shall be sub-
40 mitted to the
secretary
administrator and shall be accompanied by a
fee
41 in the amount of $500 and
shall be made upon forms prescribed by the
42 secretary
administrator.
43 (b) Each
bingo card distributor registration certificate
shall expire at
23
1 midnight on June 30 following its
date of issuance. Application for renewal
2 of a registration certificate shall
be submitted to the secretary
adminis-
3 trator and shall
be accompanied by a fee in the amount of $500
and shall
4 be made upon forms prescribed by the
secretary
administrator.
5 (c) The
secretary administrator
of revenue shall establish by
rule
6 and
regulation, by rules and regulations adopted
under the bingo
7 act, reasonable
criteria for approval of bingo card distributors
applica-
8 tions for registration. The
secretary administrator
of revenue shall re-
9 fuse to register a bingo
card distributor if any owner, manager or em-
10 ployee thereof has, within
five years prior to registration, has been
11 convicted of or pleaded guilty or nolo
contendere to any felony or illegal
12 gambling violation in this or any other
jurisdiction.
13 (d) All
bingo card distributors shall maintain for a
period of not less
14 than three years full and complete records
of all disposable paper call
15 bingo cards, bingo faces and instant
bingo tickets sold to licensees within
16 this state or
distributed to operators
licensees. Such records shall be
17 made available for inspection by any
authorized representative of the
18 secretary
administrator of revenue.
19 Sec.
14. K.S.A. 79-4713 is hereby amended to read as follows:
79-
20 4713. (a) In addition to or in lieu of any
other civil or criminal penalty
21 provided by law, the
secretary administrator
of revenue or the secre-
22 tary's designee, upon a
finding that a licensee under K.S.A. 79-4703
and
23 amendments thereto,
a, lessor or a bingo card
distributor has violated any
24 provision of K.S.A. 79-4701 through
79-4705, 79-4705a, 79-4706, 79-
25 4707, 79-4708, 79-4710, 79-4711 or
79-4712 the bingo act, and
amend-
26 ments thereto, or any provision
of any rule and regulation of the
secretary
27 of revenue adopted
pursuant thereto, shall impose on such licensee, lessor
28 or bingo card distributor
a civil fine not exceeding $500 for each violation.
29 (b) No fine shall
be imposed pursuant to this section except upon the
30 written order of the
secretary administrator
of revenue or the secretary's
31 designee to the licensee,
lessor or bingo card distributor who committed
32 the violation. Such order shall state the
violation, the fine to be imposed
33 and the right of the licensee, lessor or
bingo card distributor to appeal
34 the order. Such order shall be subject to
appeal and review in the manner
35 provided by the Kansas administrative
procedures procedure act.
36 (c) Any fine
collected pursuant to this section shall be paid to the
37 state treasurer, who shall deposit the
entire amount in the state treasury
38 and credit it to the state bingo regulation
fund.
39 Sec.
15. K.S.A. 79-4714 is hereby amended to read as follows:
79-
40 4714. If any provision
of this the
bingo act or the application thereof
to
41 any person or circumstances is
held unconstitutional or otherwise invalid,
42 such unconstitutionality or
invalidity shall not affect other provisions or
43 applications of the act which
can be given effect without the unconsti-
24
1 tutional or invalid
provision or application, and, to this end, the
provisions
2 of this act are
severable.
3 New
Sec. 15. (a) The secretary of revenue shall designate
an
4 administrator of charitable
gaming. Any person designated the ad-
5 ministrator of charitable
gaming shall have at least five years' ex-
6 perience in the area of
charitable gaming regulation. The admin-
7 istrator of charitable gaming
shall be in the unclassified service and
8 shall receive an annual salary
fixed by the secretary of revenue and
9 approved by the
governor.
10 (b) Under
the supervision of the secretary, the administrator of
11 charitable gaming shall administer
and enforce the provisions of
12 the bingo act and any rules and
regulations adopted pursuant
13 thereto. The administrator's
exclusive duties shall be the adminis-
14 tration and enforcement of the bingo
act and any rules and regu-
15 lations adopted pursuant thereto. The
administrator shall be solely
16 accountable to and report to the
secretary of revenue.
17 New Sec.
16. The department of revenue shall be subject to
a
18 performance audit of the first year
of implementation and enforce-
19 ment of this act by the department.
The scope of such audit shall
20 be determined by the legislative post
audit committee and shall in-
21 clude, but not be limited to, the
efficiency and effectiveness of the
22 department in implementing and
enforcing this act. The post audi-
23 tor may contract for the conduct of
such performance audit in ac-
24 cordance with procedures established
by the legislative post audit
25 act. The report of the audit required
by this section shall be sub-
26 mitted to the legislative post audit
committee and to the legislature
27 no later than the first day of
the 2001 2002
session. The furnishing
28 of audit services pursuant to this
section shall be a transaction be-
29 tween the post auditor and the
department of revenue and shall be
30 settled in accordance with the
provisions of K.S.A. 75-5515 and
31 amendments thereto.
32 New Sec.
17. If any provision of the bingo act or the
application
33 thereof to any person or
circumstances is held unconstitutional or
34 otherwise invalid, such
unconstitutionality or invalidity shall not
35 affect other provisions or
applications of the act which can be given
36 effect without the unconstitutional
or invalid provision or appli-
37 cation, and, to this end, the
provisions of this act are severable.
38 Sec.
16
18. K.S.A.
1998 Supp. 79-3606 is hereby amended to read
39 as follows: 79-3606. The
following shall be exempt from the tax imposed
40 by this act:
41
(a) All sales of motor-vehicle fuel or other articles upon
which a sales
42 or excise tax has been paid, not
subject to refund, under the laws of this
43 state except cigarettes as
defined by K.S.A.
79-3301, and
amendments
25
1 thereto, cereal malt
beverages and malt products as defined by K.S.A.
79-
2
3817,
and amendments thereto, including wort, liquid malt,
malt syrup
3 and malt extract, which is
not subject to taxation under the provisions of
4 K.S.A.
79-41a02,
and amendments thereto, motor vehicles taxed
pursuant
5 to K.S.A. 79-5117, and
amendments thereto, tires taxed pursuant to
6 K.S.A. 1998 Supp.
65-3424d, and amendments thereto, and drycleaning
7 and laundry services taxed
pursuant to K.S.A. 1998 Supp. 65-34,150, and
8 amendments
thereto;
9
(b) all sales of tangible personal property or service,
including the
10 renting and leasing of tangible
personal property, purchased directly by
11 the state of Kansas, a political
subdivision thereof, other than a school or
12 educational institution, or
purchased by a public or private nonprofit hos-
13 pital or public hospital
authority or nonprofit blood, tissue or organ bank
14 and used exclusively for state,
political subdivision, hospital or public hos-
15 pital authority or nonprofit
blood, tissue or organ bank purposes, except
16 when: (1) Such state, hospital
or public hospital authority is engaged or
17 proposes to engage in any
business specifically taxable under the provi-
18 sions of this act and such items
of tangible personal property or service
19 are used or proposed to be used
in such business, or (2) such political
20 subdivision is engaged or
proposes to engage in the business of furnishing
21 gas, water, electricity or heat
to others and such items of personal prop-
22 erty or service are used or
proposed to be used in such business;
23
(c) all sales of tangible personal property or services,
including the
24 renting and leasing of tangible
personal property, purchased directly by
25 a public or private elementary
or secondary school or public or private
26 nonprofit educational
institution and used primarily by such school or
27 institution for nonsectarian
programs and activities provided or sponsored
28 by such school or institution or
in the erection, repair or enlargement of
29 buildings to be used for such
purposes. The exemption herein provided
30 shall not apply to erection,
construction, repair, enlargement or equip-
31 ment of buildings used primarily
for human habitation;
32
(d) all sales of tangible personal property or services
purchased by a
33 contractor for the purpose of
constructing, equipping, reconstructing,
34 maintaining, repairing,
enlarging, furnishing or remodeling facilities for
35 any public or private nonprofit
hospital or public hospital authority, public
36 or private elementary or
secondary school or a public or private nonprofit
37 educational institution, which
would be exempt from taxation under the
38 provisions of this act if
purchased directly by such hospital or public hos-
39 pital authority, school or
educational institution; and all sales of tangible
40 personal property or services
purchased by a contractor for the purpose
41 of constructing, equipping,
reconstructing, maintaining, repairing, en-
42 larging, furnishing or
remodeling facilities for any political subdivision
of
43 the state, the total cost of
which is paid from funds of such political
26
1 subdivision and which
would be exempt from taxation under the provi-
2 sions of this act if
purchased directly by such political subdivision.
Nothing
3 in this subsection or in
the provisions of K.S.A.
12-3418, and
amendments
4 thereto, shall be deemed
to exempt the purchase of any construction
5 machinery, equipment or
tools used in the constructing, equipping, re-
6 constructing, maintaining,
repairing, enlarging, furnishing or remodeling
7 facilities for any
political subdivision of the state. As used in this
subsec-
8 tion, K.S.A. 12-3418 and
79-3640, and amendments thereto, ``funds of a
9 political subdivision''
shall mean general tax revenues, the proceeds of
10 any bonds and gifts or
grants-in-aid. Gifts shall not mean funds used for
11 the purpose of constructing,
equipping, reconstructing, repairing, enlarg-
12 ing, furnishing or remodeling
facilities which are to be leased to the do-
13 nor. When any political
subdivision of the state, public or private non-
14 profit hospital or public
hospital authority, public or private elementary
15 or secondary school or public or
private nonprofit educational institution
16 shall contract for the purpose
of constructing, equipping, reconstructing,
17 maintaining, repairing,
enlarging, furnishing or remodeling facilities, it
18 shall obtain from the state and
furnish to the contractor an exemption
19 certificate for the project
involved, and the contractor may purchase ma-
20 terials for incorporation in
such project. The contractor shall furnish the
21 number of such certificate to
all suppliers from whom such purchases are
22 made, and such suppliers shall
execute invoices covering the same bearing
23 the number of such certificate.
Upon completion of the project the con-
24 tractor shall furnish to the
political subdivision, hospital or public hospital
25 authority, school or educational
institution concerned a sworn statement,
26 on a form to be provided by the
director of taxation, that all purchases so
27 made were entitled to exemption
under this subsection. As an alternative
28 to the foregoing procedure, any
such contracting entity may apply to the
29 secretary of revenue for agent
status for the sole purpose of issuing and
30 furnishing project exemption
certificates to contractors pursuant to rules
31 and regulations adopted by the
secretary establishing conditions and stan-
32 dards for the granting and
maintaining of such status. All invoices shall
33 be held by the contractor for a
period of five years and shall be subject
34 to audit by the director of
taxation. If any materials purchased under such
35 a certificate are found not to
have been incorporated in the building or
36 other project or not to have
been returned for credit or the sales or
37 compensating tax otherwise
imposed upon such materials which will not
38 be so incorporated in the
building or other project reported and paid by
39 such contractor to the director
of taxation not later than the 20th day of
40 the month following the close of
the month in which it shall be deter-
41 mined that such materials will
not be used for the purpose for which such
42 certificate was issued, the
political subdivision, hospital or public hospital
43 authority, school or educational
institution concerned shall be liable for
27
1 tax on all materials
purchased for the project, and upon payment
thereof
2 it may recover the same
from the contractor together with reasonable
3 attorney fees. Any
contractor or any agent, employee or subcontractor
4 thereof, who shall use or
otherwise dispose of any materials purchased
5 under such a certificate
for any purpose other than that for which such a
6 certificate is issued
without the payment of the sales or compensating
tax
7 otherwise imposed upon
such materials, shall be guilty of a misdemeanor
8 and, upon conviction
therefor, shall be subject to the penalties
provided
9 for in subsection (g) of
K.S.A. 79-3615, and amendments thereto;
10
(e) all sales of tangible personal property or services
purchased by a
11 contractor for the erection,
repair or enlargement of buildings or other
12 projects for the government of
the United States, its agencies or instru-
13 mentalities, which would be
exempt from taxation if purchased directly
14 by the government of the United
States, its agencies or instrumentalities.
15 When the government of the
United States, its agencies or instrumen-
16 talities shall contract for the
erection, repair, or enlargement of any build-
17 ing or other project, it shall
obtain from the state and furnish to the
18 contractor an exemption
certificate for the project involved, and the con-
19 tractor may purchase materials
for incorporation in such project. The
20 contractor shall furnish the
number of such certificates to all suppliers
21 from whom such purchases are
made, and such suppliers shall execute
22 invoices covering the same
bearing the number of such certificate. Upon
23 completion of the project the
contractor shall furnish to the government
24 of the United States, its
agencies or instrumentalities concerned a sworn
25 statement, on a form to be
provided by the director of taxation, that all
26 purchases so made were entitled
to exemption under this subsection. As
27 an alternative to the foregoing
procedure, any such contracting entity may
28 apply to the secretary of
revenue for agent status for the sole purpose of
29 issuing and furnishing project
exemption certificates to contractors pur-
30 suant to rules and regulations
adopted by the secretary establishing con-
31 ditions and standards for the
granting and maintaining of such status. All
32 invoices shall be held by the
contractor for a period of five years and shall
33 be subject to audit by the
director of taxation. Any contractor or any agent,
34 employee or subcontractor
thereof, who shall use or otherwise dispose of
35 any materials purchased under
such a certificate for any purpose other
36 than that for which such a
certificate is issued without the payment of
37 the sales or compensating tax
otherwise imposed upon such materials,
38 shall be guilty of a misdemeanor
and, upon conviction therefor, shall be
39 subject to the penalties
provided for in subsection (g) of K.S.A.
79-3615,
40 and amendments
thereto;
41
(f) tangible personal property purchased by a railroad or
public utility
42 for consumption or movement
directly and immediately in interstate
43 commerce;
28
1
(g) sales of aircraft including remanufactured and modified
aircraft,
2 sales of aircraft repair,
modification and replacement parts and sales of
3 services employed in the
remanufacture, modification and repair of air-
4 craft sold to persons
using directly or through an authorized agent such
5 aircraft and aircraft
repair, modification and replacement parts as
certified
6 or licensed carriers of
persons or property in interstate or foreign com-
7 merce under authority of
the laws of the United States or any foreign
8 government or sold to any
foreign government or agency or instrumen-
9 tality of such foreign
government and all sales of aircraft, aircraft
parts,
10 replacement parts and services
employed in the remanufacture, modifi-
11 cation and repair of aircraft
for use outside of the United States;
12
(h) all rentals of nonsectarian textbooks by public or private
elemen-
13 tary or secondary
schools;
14
(i) the lease or rental of all films, records, tapes, or any
type of sound
15 or picture transcriptions used
by motion picture exhibitors;
16
(j) meals served without charge or food used in the
preparation of
17 such meals to employees of any
restaurant, eating house, dining car, hotel,
18 drugstore or other place where
meals or drinks are regularly sold to the
19 public if such employees' duties
are related to the furnishing or sale of
20 such meals or
drinks;
21
(k) any motor vehicle, semitrailer or pole trailer, as such
terms are
22 defined by K.S.A.
8-126, and
amendments thereto, or aircraft sold and
23 delivered in this state to a
bona fide resident of another state, which motor
24 vehicle, semitrailer, pole
trailer or aircraft is not to be registered or
based
25 in this state and which vehicle,
semitrailer, pole trailer or aircraft will not
26 remain in this state more than
10 days;
27
(l) all isolated or occasional sales of tangible personal
property, serv-
28 ices, substances or things,
except isolated or occasional sale of motor
29 vehicles specifically taxed
under the provisions of subsection (o) of K.S.A.
30
79-3603,
and amendments thereto;
31
(m) all sales of tangible personal property which become an
ingre-
32 dient or component part of
tangible personal property or services pro-
33 duced, manufactured or
compounded for ultimate sale at retail within or
34 without the state of Kansas; and
any such producer, manufacturer or
35 compounder may obtain from the
director of taxation and furnish to the
36 supplier an exemption
certificate number for tangible personal property
37 for use as an ingredient or
component part of the property or services
38 produced, manufactured or
compounded;
39
(n) all sales of tangible personal property which is consumed
in the
40 production, manufacture,
processing, mining, drilling, refining or com-
41 pounding of tangible personal
property, the treating of by-products or
42 wastes derived from any such
production process, the providing of serv-
43 ices or the irrigation of crops
for ultimate sale at retail within or without
29
1 the state of Kansas; and
any purchaser of such property may obtain from
2 the director of taxation
and furnish to the supplier an exemption certifi-
3 cate number for tangible
personal property for consumption in such pro-
4 duction, manufacture,
processing, mining, drilling, refining, compound-
5 ing, treating, irrigation
and in providing such services;
6
(o) all sales of animals, fowl and aquatic plants and animals,
the pri-
7 mary purpose of which is
use in agriculture or aquaculture, as defined in
8 K.S.A. 47-1901, and
amendments thereto, the production of food for
9 human consumption, the
production of animal, dairy, poultry or aquatic
10 plant and animal products, fiber
or fur, or the production of offspring for
11 use for any such purpose or
purposes;
12
(p) all sales of drugs, as defined by K.S.A.
65-1626, and
amendments
13 thereto, dispensed pursuant to a
prescription order, as defined by K.S.A.
14
65-1626,
and amendments thereto, by a licensed
practitioner;
15
(q) all sales of insulin dispensed by a person licensed by the
state
16 board of pharmacy to a person
for treatment of diabetes at the direction
17 of a person licensed to practice
medicine by the board of healing arts;
18
(r) all sales of prosthetic and orthopedic appliances
prescribed in
19 writing by a person licensed to
practice the healing arts, dentistry or
20 optometry. For the purposes of
this subsection, the term prosthetic and
21 orthopedic appliances means any
apparatus, instrument, device, or equip-
22 ment used to replace or
substitute for any missing part of the body; used
23 to alleviate the malfunction of
any part of the body; or used to assist any
24 disabled person in leading a
normal life by facilitating such person's mo-
25 bility; such term shall include
accessories attached or to be attached to
26 motor vehicles, but such term
shall not include motor vehicles or personal
27 property which when installed
becomes a fixture to real property;
28
(s) all sales of tangible personal property or services
purchased di-
29 rectly by a groundwater
management district organized or operating un-
30 der the authority of K.S.A.
82a-1020 et
seq.,
and amendments thereto,
31 which property or services are
used in the operation or maintenance of
32 the district;
33
(t) all sales of farm machinery and equipment or aquaculture
ma-
34 chinery and equipment, repair
and replacement parts therefor and serv-
35 ices performed in the repair and
maintenance of such machinery and
36 equipment. For the purposes of
this subsection the term ``farm machinery
37 and equipment or aquaculture
machinery and equipment'' shall include
38 machinery and equipment used in
the operation of Christmas tree farm-
39 ing but shall not include any
passenger vehicle, truck, truck tractor, trailer,
40 semitrailer or pole trailer,
other than a farm trailer, as such terms are
41 defined by K.S.A.
8-126, and
amendments thereto. Each purchaser of
42 farm machinery and equipment or
aquaculture machinery and equipment
43 exempted herein must certify in
writing on the copy of the invoice or
30
1 sales ticket to be
retained by the seller that the farm machinery and
2 equipment or aquaculture
machinery and equipment purchased will be
3 used only in farming,
ranching or aquaculture production. Farming or
4 ranching shall include the
operation of a feedlot and farm and ranch work
5 for hire and the operation
of a nursery;
6
(u) all leases or rentals of tangible personal property used
as a dwell-
7 ing if such tangible
personal property is leased or rented for a period
of
8 more than 28 consecutive
days;
9
(v) all sales of food products to any contractor for use in
preparing
10 meals for delivery to homebound
elderly persons over 60 years of age and
11 to homebound disabled persons or
to be served at a group-sitting at a
12 location outside of the home to
otherwise homebound elderly persons
13 over 60 years of age and to
otherwise homebound disabled persons, as
14 all or part of any food service
project funded in whole or in part by
15 government or as part of a
private nonprofit food service project available
16 to all such elderly or disabled
persons residing within an area of service
17 designated by the private
nonprofit organization, and all sales of food
18 products for use in preparing
meals for consumption by indigent or home-
19 less individuals whether or not
such meals are consumed at a place des-
20 ignated for such
purpose;
21
(w) all sales of natural gas, electricity, heat and water
delivered
22 through mains, lines or pipes:
(1) To residential premises for noncom-
23 mercial use by the occupant of
such premises; (2) for agricultural use and
24 also, for such use, all sales of
propane gas; (3) for use in the severing of
25 oil; and (4) to any property
which is exempt from property taxation pur-
26 suant to K.S.A.
79-201b Second
through
Sixth, and amendments
thereto.
27 As used in this paragraph,
``severing'' shall have the meaning ascribed
28 thereto by subsection (k) of
K.S.A. 79-4216, and amendments thereto;
29
(x) all sales of propane gas, LP-gas, coal, wood and other
fuel sources
30 for the production of heat or
lighting for noncommercial use of an oc-
31 cupant of residential
premises;
32
(y) all sales of materials and services used in the repairing,
servicing,
33 altering, maintaining,
manufacturing, remanufacturing, or modification of
34 railroad rolling stock for use
in interstate or foreign commerce under
35 authority of the laws of the
United States;
36
(z) all sales of tangible personal property and services
purchased di-
37 rectly by a port authority or by
a contractor therefor as provided by the
38 provisions of K.S.A.
12-3418, and
amendments thereto;
39
(aa) all sales of materials and services applied to equipment
which is
40 transported into the state from
without the state for repair, service, al-
41 teration, maintenance,
remanufacture or modification and which is sub-
42 sequently transported outside
the state for use in the transmission of
43 liquids or natural gas by means
of pipeline in interstate or foreign com-
31
1 merce under authority of
the laws of the United States;
2
(bb) all sales of used mobile homes or manufactured homes. As
used
3 in this subsection: (1)
``Mobile homes'' and ``manufactured homes'' shall
4 have the meanings ascribed
thereto by K.S.A.
58-4202, and
amendments
5 thereto; and (2) ``sales
of used mobile homes or manufactured homes''
6 means sales other than the
original retail sale thereof;
7
(cc) all sales of tangible personal property or services
purchased for
8 the purpose of and in
conjunction with constructing, reconstructing, en-
9 larging or remodeling a
business or retail business which meets the
10 requirements established in
K.S.A. 74-50,115,
and amendments thereto,
11 and the sale and installation of
machinery and equipment purchased for
12 installation at any such
business or retail business. When a person shall
13 contract for the construction,
reconstruction, enlargement or remodeling
14 of any such business or retail
business, such person shall obtain from the
15 state and furnish to the
contractor an exemption certificate for the
project
16 involved, and the contractor may
purchase materials, machinery and
17 equipment for incorporation in
such project. The contractor shall furnish
18 the number of such certificates
to all suppliers from whom such purchases
19 are made, and such suppliers
shall execute invoices covering the same
20 bearing the number of such
certificate. Upon completion of the project
21 the contractor shall furnish to
the owner of the business or retail business
22 a sworn statement, on a form to
be provided by the director of taxation,
23 that all purchases so made were
entitled to exemption under this subsec-
24 tion. All invoices shall be held
by the contractor for a period of five years
25 and shall be subject to audit by
the director of taxation. Any contractor
26 or any agent, employee or
subcontractor thereof, who shall use or oth-
27 erwise dispose of any materials,
machinery or equipment purchased un-
28 der such a certificate for any
purpose other than that for which such a
29 certificate is issued without
the payment of the sales or compensating tax
30 otherwise imposed thereon, shall
be guilty of a misdemeanor and, upon
31 conviction therefor, shall be
subject to the penalties provided for in sub-
32 section (g) of K.S.A.
79-3615, and
amendments thereto. As used in this
33 subsection, ``business'' and
``retail business'' have the meanings respec-
34 tively ascribed thereto by
K.S.A. 74-50,114,
and amendments thereto;
35
(dd) all sales of tangible personal property purchased with
food
36 stamps issued by the United
States department of agriculture;
37
(ee) all sales of lottery tickets and shares made as part of a
lottery
38 operated by the state of
Kansas;
39
(ff) on and after July 1, 1988, all sales of new mobile homes
or man-
40 ufactured homes to the extent of
40% of the gross receipts, determined
41 without regard to any trade-in
allowance, received from such sale. As used
42 in this subsection, ``mobile
homes'' and ``manufactured homes'' shall have
43 the meanings ascribed thereto by
K.S.A. 58-4202,
and amendments
32
1 thereto;
2
(gg) all sales of tangible personal property purchased in
accordance
3 with vouchers issued
pursuant to the federal special supplemental food
4 program for women, infants
and children;
5
(hh) all sales of medical supplies and equipment purchased
directly
6 by a nonprofit skilled
nursing home or nonprofit intermediate nursing
7 care home, as defined by
K.S.A. 39-923, and amendments thereto, for
8 the purpose of providing
medical services to residents thereof. This ex-
9 emption shall not apply to
tangible personal property customarily used
10 for human habitation
purposes;
11
(ii) all sales of tangible personal property purchased
directly by a non-
12 profit organization for
nonsectarian comprehensive multidiscipline youth
13 development programs and
activities provided or sponsored by such or-
14 ganization, and all sales of
tangible personal property by or on behalf of
15 any such organization. This
exemption shall not apply to tangible personal
16 property customarily used for
human habitation purposes;
17
(jj) all sales of tangible personal property or services,
including the
18 renting and leasing of tangible
personal property, purchased directly on
19 behalf of a community-based
mental retardation facility or mental health
20 center organized pursuant to
K.S.A. 19-4001 et
seq., and amendments
21 thereto, and licensed in
accordance with the provisions of K.S.A. 75-
22
3307b,
and amendments thereto. This exemption shall not apply
to tan-
23 gible personal property
customarily used for human habitation purposes;
24
(kk) on and after January 1, 1989, all sales of machinery and
equip-
25 ment used directly and primarily
for the purposes of manufacturing, as-
26 sembling, processing, finishing,
storing, warehousing or distributing ar-
27 ticles of tangible personal
property in this state intended for resale by a
28 manufacturing or processing
plant or facility or a storage, warehousing or
29 distribution facility, and all
sales of repair and replacement parts and
30 accessories purchased for such
machinery and equipment:
31
(1) For purposes of this subsection, machinery and equipment
shall
32 be deemed to be used directly
and primarily in the manufacture, assem-
33 blage, processing, finishing,
storing, warehousing or distributing of tan-
34 gible personal property where
such machinery and equipment is used
35 during a manufacturing,
assembling, processing or finishing, storing,
36 warehousing or distributing
operation:
37 (A) To
effect a direct and immediate physical change upon the
tan-
38 gible personal
property;
39 (B) to
guide or measure a direct and immediate physical change
upon
40 such property where such
function is an integral and essential part of
41 tuning, verifying or aligning
the component parts of such property;
42 (C) to
test or measure such property where such function is an
in-
43 tegral part of the production
flow or function;
33
1
(D) to transport, convey or handle such property during the
manu-
2 facturing, processing,
storing, warehousing or distribution operation at
3 the plant or facility;
or
4
(E) to place such property in the container, package or
wrapping in
5 which such property is
normally sold or transported.
6
(2) For purposes of this subsection ``machinery and equipment
used
7 directly and primarily''
shall include, but not be limited to:
8
(A) Mechanical machines or components thereof contributing to
a
9 manufacturing, assembling
or finishing process;
10
(B) molds and dies that determine the physical characteristics
of the
11 finished product or its
packaging material;
12
(C) testing equipment to determine the quality of the
finished
13 product;
14
(D) computers and related peripheral equipment that directly
control
15 or measure the manufacturing
process or which are utilized for engi-
16 neering of the finished product;
and
17
(E) computers and related peripheral equipment utilized for
research
18 and development and product
design.
19
(3) ``Machinery and equipment used directly and primarily''
shall not
20 include:
21
(A) Hand tools;
22
(B) machinery, equipment and tools used in maintaining and
repair-
23 ing any type of machinery and
equipment;
24
(C) transportation equipment not used in the manufacturing,
assem-
25 bling, processing, furnishing,
storing, warehousing or distributing process
26 at the plant or
facility;
27
(D) office machines and equipment including computers and
related
28 peripheral equipment not
directly and primarily used in controlling or
29 measuring the manufacturing
process;
30
(E) furniture and buildings; and
31
(F) machinery and equipment used in administrative,
accounting,
32 sales or other such activities
of the business;
33
(4) for purposes of this subsection, ``repair and replacement
parts and
34 accessories'' means all parts
and accessories for exempt machinery and
35 equipment, including but not
limited to dies, jigs, molds, and patterns
36 which are attached to exempt
machinery or which are otherwise used in
37 production, short-lived
replaceable parts that can be readily detached
38 from exempt machinery or
equipment, such as belts, drill bits, grinding
39 wheels, cutting bars and saws,
and other replacement parts for production
40 equipment, including refractory
brick and other refractory items for kiln
41 equipment used in production
operations;
42
(ll) all sales of educational materials purchased for
distribution to the
43 public at no charge by a
nonprofit corporation organized for the purpose
34
1 of encouraging, fostering
and conducting programs for the improvement
2 of public
health;
3
(mm) all sales of seeds and tree seedlings; fertilizers,
insecticides,
4 herbicides, germicides,
pesticides and fungicides; and services, purchased
5 and used for the purpose
of producing plants in order to prevent soil
6 erosion on land devoted to
agricultural use;
7
(nn) except as otherwise provided in this act, all sales of
services ren-
8 dered by an advertising
agency or licensed broadcast station or any mem-
9 ber, agent or employee
thereof;
10
(oo) all sales of tangible personal property purchased by a
community
11 action group or agency for the
exclusive purpose of repairing or weath-
12 erizing housing occupied by low
income individuals;
13
(pp) all sales of drill bits and explosives actually utilized
in the explo-
14 ration and production of oil or
gas;
15
(qq) all sales of tangible personal property and services
purchased by
16 a nonprofit museum or historical
society or any combination thereof, in-
17 cluding a nonprofit organization
which is organized for the purpose of
18 stimulating public interest in
the exploration of space by providing edu-
19 cational information, exhibits
and experiences, which is exempt from fed-
20 eral income taxation pursuant to
section 501(c)(3) of the federal internal
21 revenue code of
1986;
22
(rr) all sales of tangible personal property which will admit
the pur-
23 chaser thereof to any annual
event sponsored by a nonprofit organization
24 which is exempt from federal
income taxation pursuant to section
25 501(c)(3) of the federal
internal revenue code of 1986;
26
(ss) all sales of tangible personal property and services
purchased by
27 a public broadcasting station
licensed by the federal communications
28 commission as a noncommercial
educational television or radio station;
29
(tt) all sales of tangible personal property and services
purchased by
30 or on behalf of a not-for-profit
corporation which is exempt from federal
31 income taxation pursuant to
section 501(c)(3) of the federal internal rev-
32 enue code of 1986, for the sole
purpose of constructing a Kansas Korean
33 War memorial;
34
(uu) all sales of tangible personal property and services
purchased by
35 or on behalf of any rural
volunteer fire-fighting organization for use ex-
36 clusively in the performance of
its duties and functions;
37
(vv) all sales of tangible personal property purchased by any
of the
38 following organizations which
are exempt from federal income taxation
39 pursuant to section 501 (c)(3)
of the federal internal revenue code of
40 1986, for the following
purposes, and all sales of any such property by or
41 on behalf of any such
organization for any such purpose:
42
(1) The American Heart Association, Kansas Affiliate, Inc. for
the
43 purposes of providing education,
training, certification in emergency car-
35
1 diac care, research and
other related services to reduce disability and
2 death from cardiovascular
diseases and stroke;
3
(2) the Kansas Alliance for the Mentally Ill, Inc. for the
purpose of
4 advocacy for persons with
mental illness and to education, research and
5 support for their
families;
6
(3) the Kansas Mental Illness Awareness Council for the
purposes of
7 advocacy for persons who
are mentally ill and to education, research and
8 support for them and their
families;
9
(4) the American Diabetes Association Kansas Affiliate, Inc.
for the
10 purpose of eliminating diabetes
through medical research, public edu-
11 cation focusing on disease
prevention and education, patient education
12 including information on coping
with diabetes, and professional education
13 and training;
14
(5) the American Lung Association of Kansas, Inc. for the
purpose of
15 eliminating all lung diseases
through medical research, public education
16 including information on coping
with lung diseases, professional educa-
17 tion and training related to
lung disease and other related services to
18 reduce the incidence of
disability and death due to lung disease;
19
(6) the Kansas chapters of the Alzheimer's Disease and Related
Dis-
20 orders Association, Inc. for the
purpose of providing assistance and sup-
21 port to persons in Kansas with
Alzheimer's disease, and their families and
22 caregivers; and
23
(ww) all sales of tangible personal property purchased by the
Habitat
24 for Humanity for the exclusive
use of being incorporated within a housing
25 project constructed by such
organization.
26
(xx) all sales of tangible personal property and services
purchased by
27 a nonprofit zoo which is exempt
from federal income taxation pursuant
28 to section 501(c)(3) of the
federal internal revenue code of 1986, or on
29 behalf of such zoo by an entity
itself exempt from federal income taxation
30 pursuant to section
50 501
(c)(3) of the federal internal revenue code
of
31 1986 contracted with to operate
such zoo and all sales of tangible personal
32 property or services purchased
by a contractor for the purpose of con-
33 structing, equipping,
reconstructing, maintaining, repairing, enlarging,
34 furnishing or remodeling
facilities for any nonprofit zoo which would be
35 exempt from taxation under the
provisions of this section if purchased
36 directly by such nonprofit zoo
or the entity operating such zoo. Nothing
37 in this subsection shall be
deemed to exempt the purchase of any con-
38 struction machinery, equipment
or tools used in the constructing, equip-
39 ping, reconstructing,
maintaining, repairing, enlarging, furnishing or
re-
40 modeling facilities for any
nonprofit zoo. When any nonprofit zoo shall
41 contract for the purpose of
constructing, equipping, reconstructing, main-
42 taining, repairing, enlarging,
furnishing or remodeling facilities, it shall
43 obtain from the state and
furnish to the contractor an exemption certifi-
36
1 cate for the project
involved, and the contractor may purchase
materials
2 for incorporation in such
project. The contractor shall furnish the number
3 of such certificate to all
suppliers from whom such purchases are made,
4 and such suppliers shall
execute invoices covering the same bearing the
5 number of such
certificate. Upon completion of the project the
contractor
6 shall furnish to the
nonprofit zoo concerned a sworn statement, on a
form
7 to be provided by the
director of taxation, that all purchases so made
were
8 entitled to exemption
under this subsection. All invoices shall be held
by
9 the contractor for a
period of five years and shall be subject to audit
by
10 the director of taxation. If any
materials purchased under such a certifi-
11 cate are found not to have been
incorporated in the building or other
12 project or not to have been
returned for credit or the sales or compen-
13 sating tax otherwise imposed
upon such materials which will not be so
14 incorporated in the building or
other project reported and paid by such
15 contractor to the director of
taxation not later than the 20th day of the
16 month following the close of the
month in which it shall be determined
17 that such materials will not be
used for the purpose for which such cer-
18 tificate was issued, the
nonprofit zoo concerned shall be liable for tax on
19 all materials purchased for the
project, and upon payment thereof it may
20 recover the same from the
contractor together with reasonable attorney
21 fees. Any contractor or any
agent, employee or subcontractor thereof,
22 who shall use or otherwise
dispose of any materials purchased under such
23 a certificate for any purpose
other than that for which such a certificate
24 is issued without the payment of
the sales or compensating tax otherwise
25 imposed upon such materials,
shall be guilty of a misdemeanor and, upon
26 conviction therefor, shall be
subject to the penalties provided for in sub-
27 section (g) of K.S.A. 79-3615,
and amendments thereto;
28
(yy) all sales of tangible personal property and services
purchased by
29 a parent-teacher association or
organization, and all sales of tangible per-
30 sonal property by or on behalf
of such association or organization;
31
(zz) all sales of machinery and equipment purchased by
over-the-air,
32 free access radio or television
station which is used directly and primarily
33 for the purpose of producing a
broadcast signal or is such that the failure
34 of the machinery or equipment to
operate would cause broadcasting to
35 cease. For purposes of this
subsection, machinery and equipment shall
36 include, but not be limited to,
that required by rules and regulations of
37 the federal communications
commission, and all sales of electricity which
38 are essential or necessary for
the purpose of producing a broadcast signal
39 or is such that the failure of
the electricity would cause broadcasting to
40 cease;
41
(aaa) all sales of tangible personal property and services
purchased
42 by a religious organization
which is exempt from federal income taxation
43 pursuant to section 501 (c)(3)
of the federal internal revenue code, and
37
1 used exclusively for
religious purposes; and
2
(bbb) all sales of food for human consumption by an
organization
3 which is exempt from
federal income taxation pursuant to section 501
4 (c)(3) of the federal
internal revenue code of 1986, pursuant to a food
5 distribution program which
offers such food at a price below cost in
6 exchange for the
performance of community service by the purchaser
7
thereof.;
and
8
(ccc) all sales of bingo cards, bingo faces and instant bingo
tickets by
9
licensees
operators under
the bingo act.
10 Sec.
17. K.S.A. 79-4701, 79-4703, 79-4704, 79-4705, 79-4705a,
79-
11 4706, 79-4707, 79-4708, 79-4710,
79-4711, 79-4712a, 79-4713 and 79-
12 4714 and K.S.A. 1998 Supp.
79-3606 are hereby repealed.
13
Sec. 19.
18. K.S.A. 74-8711 is hereby amended to
read as fol-
14 lows: 74-8711. (a) There is hereby
established in the state treasury
15 the lottery operating
fund.
16 (b) The
executive director shall remit at least weekly to the
state
17 treasurer all moneys collected from
the sale of lottery tickets and
18 shares and any other moneys received
by or on behalf of the Kansas
19 lottery. Upon receipt of any such
remittance, the state treasurer
20 shall deposit the entire amount
thereof in the state treasury and
21 credit it to the lottery operating
fund. Moneys credited to the fund
22 shall be expended or transferred only
as provided by this act. Ex-
23 penditures from such fund shall be
made in accordance with ap-
24 propriations acts upon warrants of
the director of accounts and
25 reports issued pursuant to vouchers
approved by the executive di-
26 rector or by a person designated by
the executive director.
27 (c) Moneys
in the lottery operating fund shall be used for:
28 (1) The
payment of expenses of the lottery, which shall include
29 all costs incurred in the operation
and administration of the Kansas
30 lottery; all costs resulting from
contracts entered into for the pur-
31 chase or lease of goods and services
needed for operation of the
32 lottery, including but not limited to
supplies, materials, tickets, in-
33 dependent studies and surveys, data
transmission, advertising,
34 printing, promotion, incentives,
public relations, communications,
35 and distribution of tickets and
shares; and reimbursement of costs
36 of facilities and services provided
by other state agencies;
37 (2) the
payment of compensation to lottery retailers;
38
(3) transfers of moneys to the lottery prize payment fund
pur-
39 suant to K.S.A.
74-8712, and amendments thereto;
40
(4) transfers to the state general fund pursuant to K.S.A.
74-
41 8713, and
amendments thereto;
42
(5) transfers to the state gaming revenues fund pursuant to
sub-
43 section (d) of this section and as
otherwise provided by law; and
38
1
(6) the transfers to the county
reappraisal fund as prescribed
2 by law.
3
(d) The director of accounts and reports shall transfer
moneys
4 in the lottery operating fund
to the state gaming revenues fund cre-
5 ated by K.S.A.
79-4801, and amendments thereto, on or before
the
6 15th day of each
month, for fiscal years commencing on or after July
1,
7 1988 in an
amount certified monthly by the executive director and
8 determined as follows,
whichever is greater:
9
(1) In An amount equal to the
moneys in the lottery operating
10 fund in excess of those needed for
the purposes described in sub-
11 sections (c)(1) through (c)(4);
or
12
(2) except for pull-tab lottery tickets and
shares, an amount equal
13 to not less than 30% of total monthly
revenues from the sales of
14 lottery tickets and shares less
estimated returned tickets. In the case
15 of pull-tab lottery tickets and shares,
an amount equal to not less than
16 20% of the total monthly revenues from
the sales of pull-tab lottery tickets
17 and shares less estimated returned
tickets.
18
Sec. 20.
19. K.S.A. 74-8712 is hereby amended to read as
fol-
19 lows: 74-8712. (a) There is hereby
established in the state treasury
20 the lottery prize payment
fund.
21 (b) The
executive director shall certify periodically to the
di-
22 rector of accounts and reports such
amounts as the executive direc-
23 tor determines necessary to pay
prizes to the holders of valid win-
24 ning lottery tickets or
shares or for the purchase of nonmonetary
prizes.
25 Upon receipt of such certification,
the director of accounts and re-
26 ports shall
promptly transfer the amount certified from
the lottery
27 operating fund to the lottery prize
payment fund. Moneys credited
28 to the fund shall be expended only
for the:
29 (1) The
payment of prizes to the holders of valid winning
lottery
30 tickets or shares,
for;
31
(2) the reimbursement of retailers who have paid
holders of win-
32 ning tickets or shares
or;
33 (3) the
purchase of nonmonetary prizes; or
34
(4) as purposes
otherwise specifically authorized by
law.
35
(c) Prior to making any expenditure for
reimbursement of a re-
36 tailer or payment of a prize of $50
or more, the executive director
37 shall cause all proposed prize
payments to be matched against the
38 state debtor files maintained by the
director of accounts and reports
39 and shall certify and pay or deliver
any matched prize or the cash
40 amount thereof to the director of
accounts and reports for setoff as
41 prescribed under K.S.A.
75-6201 et seq., and amendments
thereto.
42
(d) Expenditures from
such the lottery prize payment fund
shall
43 be made in accordance with
appropriations acts upon warrants of
39
1 the director of accounts and
reports, or a person designated by the
2 director of accounts and
reports pursuant to K.S.A. 75-3732,
and
3 amendments thereto, issued
pursuant to vouchers approved by the
4 executive director, or a person
designated by the executive director.
5
Sec. 21.
20. K.S.A. 74-8720 is hereby amended to read
as fol-
6 lows: 74-8720. (a)
As nearly as practical, an amount equal to
not
7 less than 45% of the
total sales of lottery tickets or shares,
computed
8 on an annual basis,
shall be allocated for payment of lottery
prizes.
9
(b) The prize to be paid or awarded for each winning ticket
or
10 share shall be paid to one
natural person who is adjudged by the
11 executive director, the
director's designee or the retailer paying
the
12 prize, to be the holder of
such winning ticket or share, or the
person
13 designated in writing by
the holder of the winning ticket or share
14 on a form satisfactory to
the executive director, except that the
prize
15 of a deceased winner shall
be paid to the duly appointed represen-
16 tative of the estate of
such winner or to such other person or
persons
17 appearing to be legally
entitled thereto.
18
(c) The executive director shall award the designated prize
to
19 the holder of the ticket
or share upon the validation of a claim or
20 confirmation of a winning
share. The executive director shall have
21 the authority to make
payment for prizes by any means deemed
22 appropriate upon the
validation of winning tickets or shares.
23
(d) The right of a person to a prize drawn or awarded is
not
24
assignable.
25
(e) All prizes awarded shall be taxed as Kansas source
income
26 and shall be subject to
all state and federal income tax laws and
27 rules and regulations.
State income taxes shall be withheld from
28 prizes paid whenever
federal income taxes are required to be
with-
29 held under current federal
law.
30
(f)
(1) Unclaimed prize
money not payable directly by lottery
31 retailers shall be
retained for the period established by rules
and
32
regulations
and. Except as provided by paragraph
(2), if no claim
is
33 made within such
period, then
such unclaimed prize money shall
be
34 added to the prize pools
of subsequent lottery games.
35
(2) An amount equal to
the greater of $60,000 or 2% of the unclaimed
36 prize money shall be used to
fund grants awarded pursuant to section 21,
37 and amendments thereto, for the
treatment of problem or compulsive
38 gamblers and grants to conduct
studies on the effects of gambling.
39
(g) The state of Kansas, members of the commission and
em-
40 ployees of the Kansas
lottery shall be discharged of all further
lia-
41 bility upon payment of a
prize pursuant to this section.
42
(h) The Kansas lottery shall not publicly disclose the
identity of
43 any person awarded a prize
except upon written authorization of
40
1 such
person.
2
New Sec.
22. (a) The executive director shall develop and
ad-
3 minister a
competitive grant program for the treatment of
problem
4 or compulsive
gamblers and conduct studies on the effects of
gam-
5 bling in Kansas. At
least annually, the executive director shall
de-
6 termine the amount
of moneys available for grants. The
executive
7 director shall issue
requests for proposals for grant awards in
ac-
8 cordance with the
provisions of this section.
9
(b) In issuing requests for proposals and making such
grants,
10 the executive director
shall encourage proposals for new or
creative
11 programs or activities in
addition to established or current pro-
12 grams or
activities.
13
(c) In addition to other criteria prescribed by the executive
di-
14 rector, the executive
director shall require each proposal for a
grant
15 to demonstrate that the
proposal has been developed with substan-
16 tial and effective
collaboration and coordination between the
ap-
17 plicant and the public and
private organizations in the community
18 that are directly involved
or otherwise recognized as interested in
19 the treatment of problem
or compulsive gamblers or the study of
20 the effects of gambling,
including but not limited to community
21 mental health centers and
organizations and public health and so-
22 cial services
agencies.
23 New Sec.
21.
[20.] (a) There is hereby established in
the state
24 treasury the problem gambling grant
fund. All moneys credited to
25 such fund shall be used only for the
awarding of grants under this
26 section. Such fund shall be
administered in accordance with this
27 section and the provisions of
appropriation acts.
28 (b) All
expenditures from the problem gambling grant fund shall
29 be made in accordance with
appropriation acts upon warrants of
30 the director of accounts and reports
issued pursuant to vouchers
31 approved in the manner prescribed by
law.
32 (c) There
is hereby established a state grant program to provide
33 assistance for the direct treatment
of persons diagnosed as suffering
34 from pathological gambling and to
provide funding for research
35 regarding the impact of gambling on
residents of Kansas. Research
36 grants awarded under this section may
include, but need not be
37 limited to, grants for determining
the effectiveness of education and
38 prevention efforts on the prevalence
of pathological gambling in
39 Kansas. All grants shall be made
after open solicitation of proposals
40 and evaluation of proposals against
criteria established in rules and
41 regulations adopted by the secretary
of the department of social
42 and rehabilitation services. Both
public and private entities shall
43 be eligible to apply for and receive
grants under the provisions of
41
1 this section.
2
(d) The secretary of the department of social and
rehabilitation
3 services is hereby authorized
to receive moneys from any grants,
4 gifts, contributions or
bequests made for the purpose of funding
5 grants under this section and
to expend such moneys for the purpose
6 for which received.
7
(e) All grants made in accordance with this section shall
be
8 made from the problem gambling
grant fund. The secretary shall
9 administer the provisions of
this section and shall adopt rules and
10 regulations establishing criteria for
qualification to receive grants
11 and such other matters deemed
necessary by the secretary for the
12 administration of this section. Such
rules and regulations shall in-
13 clude, but need not be limited to, a
requirement that each recipient
14 of a grant to provide treatment for
pathological gamblers report at
15 least annually to the secretary the
grantee's measurable achieve-
16 ment of specific outcome
goals.
17 (f) For the
purpose of this section ``pathological gambling''
18 means the disorder by that name
described in the most recent edi-
19 tion of the diagnostic and
statistical manual.
20
Sec. 23.
22.
[21.] K.S.A.
1998 1999 Supp. 74-8836
is hereby
21 amended to read as follows: 74-8836.
(a) Any organization licensee
22 that conducts at least 150 days of
live racing during a calendar year
23 or a fair association that conducts
fewer than 22 days of live racing
24 during a calendar year may apply to
the commission for a simul-
25 casting license to display simulcast
horse or greyhound races and
26 to conduct intertrack parimutuel
wagering thereon. If the organi-
27 zation licensee conducts races at a
racetrack facility that is owned
28 by a facility owner licensee, both
licensees shall join in the appli-
29 cation. A simulcasting license
granted to a fair association that con-
30 ducts fewer than 22 days of live
racing shall restrict the fair asso-
31 ciation's display of simulcast races
to a number of days, including
32 days on which it conducts live races,
equal to not more than twice
33 the number of days on which it
conducts live races.
34 (b)
(1) A simulcasting license granted to an organization
li-
35 censee other than a fair association
shall authorize the display of
36 simulcast races at the racetrack
facility where the live races are
37 conducted so long as the licensee
conducts at least eight live races
38 per day and an average of 10 live
races per day per week. If a
39 simulcasting licensee conducts live
horse races on a day when si-
40 mulcast races are displayed by the
licensee and the licensee con-
41 ducts fewer than an average of 10
live horse races per day per week,
42 not less than 80% of the races on
which wagers are taken by the
43 licensee during such week shall be
live races conducted by the li-
42
1 censee unless approved by the
recognized horsemen's group or upon
2 a finding by the commission
that the organization licensee was un-
3 able to do so for reasonable
cause. If a simulcast licensee conducts
4 live greyhound races on a day
when simulcast races are displayed
5 by the licensee and the
licensee schedules fewer than 13 live grey-
6 hound races during a
performance on such day, not less than 80%
7 of the races on which wagers
are taken by the licensee during such
8 performance shall be live races
conducted by the licensee.
9 (2) A
simulcasting license granted to a fair association shall
au-
10 thorize the display of simulcast
races at the racetrack facility where
11 the races are conducted only if live
races are scheduled for two or
12 more days of the same calendar week,
except that the licensee may
13 conduct simulcast races in the week
immediately before and im-
14 mediately after a live meeting if the
total number of days on which
15 simulcast races are displayed does
not exceed the total authorized
16 in subsection (a). In no case shall
the live meet or simulcast races
17 allowed under this subsection exceed
10 consecutive weeks. For
18 purposes of this subsection, a
calendar week shall be measured from
19 Monday through the following
Sunday.
20
(3) Notwithstanding the provisions of subsection (a), (b)(1)
or
21 (b)(2), a fair association may apply
to the commission for not more
22 than five additional days of
simulcasting of special events. In ad-
23 dition, the commission may authorize
a fair association to display
24 additional simulcast races but, if
such fair association is less than
25 100 miles from an organization
licensee that is not a fair associa-
26 tion, it
must also shall secure
written consent from that organization
27 licensee.
28
(4) Notwithstanding the provisions of subsection (b)(1), if
an
29 emergency causes the cancellation of
all or any live races scheduled
30 for a day or performance by a
simulcasting licensee, the commission
31 or the commission's designee may
authorize the licensee to display
32 any simulcast races previously
scheduled for such day or
33 performance.
34
(5) Notwithstanding the provisions of subsection (b)(1),
the
35 commission may authorize the licensee
to display simulcast special
36 racing events as designated by the
commission.
37 (c) The
application for a simulcasting license shall be filed
with
38 the commission at a time and place
prescribed by rules and regu-
39 lations of the commission. The
application shall be in a form and
40 include such information as the
commission prescribes.
41 (d) To
qualify for a simulcasting license the applicant shall:
42 (1) Comply
with the interstate horse racing act of 1978 (15
43 U.S.C. 3001 et
seq.) as in effect December 31, 1991;
43
1
(2) submit with the application a written approval of the
pro-
2 posed simulcasting schedule
signed by: (A) The recognized horse-
3 men's group for the track, if
the applicant is licensed to conduct
4 only horse races; (B) the
recognized greyhound owners' group, if
5 the applicant is licensed to
conduct only greyhound races and only
6 greyhound races are to be
simulcast; (C) both the recognized grey-
7 hound owners' group and a
recognized horsemen's group, if the ap-
8 plicant is licensed to conduct
only greyhound races and horse races
9 are to be simulcast; (D) the
recognized greyhound owners' group,
10 if the applicant is licensed to
conduct both greyhound and horse
11 races, only greyhound races are to be
simulcast and races are to be
12 simulcast only while the applicant is
conducting live greyhound
13 races; (E) the recognized horsemen's
group for the track, if the ap-
14 plicant is licensed to conduct both
greyhound and horse races, only
15 horse races are to be simulcast and
races are to be simulcast only
16 while the applicant is conducting
live horse races; or (F) both the
17 recognized greyhound owners' group
and the recognized horse-
18 men's group for the track, if the
applicant is licensed to conduct
19 both greyhound races and horse races
and horse races are to be
20 simulcast while the applicant is
conducting live greyhound races or
21 greyhound races are to be simulcast
while the applicant is con-
22 ducting live horse races;
and
23 (3) submit,
in accordance with rules and regulations of the com-
24 mission and before the simulcasting
of a race, a written copy of each
25 contract or agreement which the
applicant proposes to enter into
26 with regard to such race, and any
proposed modification of any such
27 contract or agreement.
28 (e) The
term of a simulcasting license shall be one year.
29 (f) A
simulcasting licensee may apply to the commission or
its
30 designee for changes in the
licensee's approved simulcasting sched-
31 ule if such changes are approved by
the respective recognized grey-
32 hound owners' group or recognized
horsemen's group needed
33 throughout the term of the license.
Application shall be made upon
34 forms furnished by the commission and
shall contain such infor-
35 mation as the commission
prescribes.
36 (g) Except
as provided by subsection (j), the takeout for simul-
37 cast horse and greyhound races shall
be the same as it is for the live
38 horse and greyhound races conducted
during the current or next
39 live race meeting at the racetrack
facility where the simulcast races
40 are displayed. For simulcast races
the tax imposed on amounts wa-
41 gered shall be as provided by K.S.A.
74-8823, and amendments
42 thereto. Of the balance of the
takeout remaining after deduction of
43 taxes, an amount equal to a
percentage, to be determined by the
44
1 commission, of the gross sum
wagered on simulcast races shall be
2 used for purses, as
follows:
3
(1) For greyhound races conducted by the licensee, if the
si-
4 mulcast race is a greyhound
race and the licensee conducts only
5 live greyhound
races;
6
(2) for horse races conducted by the licensee, if the
simulcast
7 race is a horse race and the
licensee conducts only live horse races;
8
(3) for horse races and greyhound races, as determined by
both
9 the recognized horsemen's group
and the recognized greyhound
10 owners' group, if the simulcast race
is a greyhound race and the
11 licensee does not conduct or is not
currently conducting live grey-
12 hound races; or
13 (4) for
horse races and greyhound races, as determined by both
14 the recognized horsemen's group and
the recognized greyhound
15 owners' group, if the simulcast is a
horse race and the licensee does
16 not conduct or is not currently
conducting live horse races. That
17 portion of simulcast purse money
determined to be used for horse
18 purses shall be apportioned by the
commission to the various horse
19 race meetings held in any calendar
year based upon the number of
20 live horse race dates comprising such
horse race meetings in the
21 preceding calendar year.
22 (h) Except
as provided by subsection (j):
23 (1) If a
simulcasting licensee has a license to conduct live
horse
24 races and the licensee displays a
simulcast horse race: (A) All break-
25 age proceeds shall be remitted by the
licensee to the commission
26 not later than the 15th day of the
month following the race from
27 which the breakage is derived and the
commission shall promptly
28 remit any such proceeds received to
the state treasurer, who shall
29 deposit the entire amount in the
state treasury and credit it to the
30 Kansas horse breeding development
fund created by K.S.A. 74-8829,
31 and amendments thereto; and (B) all
unclaimed ticket proceeds
32 shall be remitted by the licensee to
the commission on the 61st day
33 after the end of the calendar year
and the commission shall
34 promptly remit any such proceeds
received to the state treasurer,
35 who shall deposit the entire amount
in the state treasury and credit
36 it to the Kansas horse breeding
development fund created by K.S.A.
37 74-8829, and
amendments thereto.
38 (2) If a
simulcasting licensee has a license to conduct live
grey-
39 hound races and the licensee displays
a simulcast greyhound race,
40 breakage and unclaimed winning ticket
proceeds shall be distrib-
41 uted in the manner provided by K.S.A.
74-8821 and 74-8822, and
42 amendments thereto, for breakage and
unclaimed winning ticket
43 proceeds from live greyhound
races.
45
1
(3) If a simulcasting licensee has a license to conduct live
racing
2 of only horses and the licensee
displays a simulcast greyhound race,
3 unclaimed winning ticket
proceeds shall be distributed in the man-
4 ner provided by K.S.A. 74-8822,
and amendments thereto, for un-
5 claimed winning ticket proceeds
from live greyhound races. Break-
6 age for such races shall be
distributed for use to benefit greyhound
7 racing as determined by the
commission.
8
(4) If a simulcasting licensee has a license to conduct live
racing
9 of only greyhounds and the
licensee displays a simulcast horse race:
10 (A) All breakage proceeds shall be
remitted by the licensee to the
11 commission not later than the 15th
day of the month following the
12 race from which the breakage is
derived and the commission shall
13 promptly remit any such proceeds
received to the state treasurer,
14 who shall deposit the entire amount
in the state treasury and credit
15 it to the Kansas horse breeding
development fund created by K.S.A.
16 74-8829, and
amendments thereto; and (B) all unclaimed ticket pro-
17 ceeds shall be remitted by the
licensee to the commission on the 61st
18 day after the end of the calendar
year and the commission shall
19 promptly remit any such proceeds
received to the state treasurer,
20 who shall deposit the entire amount
in the state treasury and credit
21 it to the Kansas horse breeding
development fund created by K.S.A.
22 74-8829, and
amendments thereto.
23 (i) The
commission may approve a request by two or more si-
24 mulcasting licensees to combine
wagering pools within the state of
25 Kansas pursuant to rules and
regulations adopted by the
26 commission.
27 (j)
(1) The commission may authorize any simulcasting
licensee
28 to participate in an interstate
combined wagering pool with one or
29 more other racing
jurisdictions.
30 (2) If a
licensee participates in an interstate pool, the
licensee
31 may adopt the takeout of the host
jurisdiction or facility, except that
32 the takeout shall not be more than
20% on win, place and show bets and
33 not more than 25% on all other
bets. The amount and manner of pay-
34 ing purses from the takeout in an
interstate pool shall be as provided
35 by subsection (g).
36 (3) The tax
imposed on amounts wagered in an interstate pool
37 shall be as provided by K.S.A.
74-8823, and amendments thereto.
38 Parimutuel taxes may not be imposed
on any amounts wagered in
39 an interstate combined wagering pool
other than amounts wagered
40 within this jurisdiction.
41
(4) Breakage for interstate combined wagering pools shall
be
42 calculated in accordance with the
statutes and rules and regulations
43 of the host jurisdiction and shall be
allocated among the partici-
46
1 pating jurisdictions in a
manner agreed to among the jurisdictions.
2 Breakage allocated to this
jurisdiction shall be distributed as pro-
3 vided by subsection
(h).
4
(5) Upon approval of the respective recognized greyhound
own-
5 ers' group or recognized
horsemen's group, the commission may
6 permit an organization licensee
to simulcast to other racetrack fa-
7 cilities or off-track wagering
or intertrack wagering facilities in
8 other jurisdictions one or more
races conducted by such licensee,
9 use one or more races conducted
by such licensee for an intrastate
10 combined wagering pool or use one or
more races conducted by
11 such licensee for an interstate
combined wagering pool at off-track
12 wagering or intertrack wagering
locations outside the commission's
13 jurisdiction and may allow parimutuel
pools in other jurisdictions
14 to be combined with parimutuel pools
in the commission's jurisdic-
15 tion for the purpose of establishing
an interstate combined wagering
16 pool.
17 (6) The
participation by a simulcasting licensee in a combined
18 interstate wagering pool does not
cause that licensee to be consid-
19 ered to be doing business in any
jurisdiction other than the juris-
20 diction in which the licensee is
physically located.
21 (k) If the
organization licensee, facility owner licensee if any
22 and the recognized horsemen's group
or recognized greyhound own-
23 ers' group are unable to agree
concerning a simulcasting applica-
24 tion, the matter may be submitted to
the commission for determi-
25 nation at the written request of any
party in accordance with rules
26 and regulations of the
commission.
27 (l) This
section shall be part of and supplemental to the Kansas
28 parimutuel racing act.
29 New
Sec. 23.
[22.] On July 1 of each year or as soon
thereafter
30 as sufficient moneys are available,
$80,000 credited to the state
31 gaming revenues fund shall be
transferred and credited to the prob-
32 lem gambling grant fund established
by section 21
[20], and amend-
33 ments thereto.
34
Sec. 24.
[23.] K.S.A. 1999 Supp. 79-4803 is hereby
amended to
35 read as follows: 79-4803. (a)
After the transfer of moneys pursuant to
36 section
24 [23], and
amendments thereto:
37 (1) An
amount equal to 10% of the balance of all
moneys credited
38 to the state gaming revenues fund
shall be transferred and credited
39 to the correctional institutions
building fund created pursuant to
40 K.S.A. 76-6b09 and amendments
thereto, to be appropriated by the
41 legislature for the use and benefit
of state correctional institutions
42 as provided in K.S.A. 76-6b09 and
amendments thereto; and
43 (2) an
amount equal to 5% of the balance of all
moneys credited
47
1 to the state gaming revenues
fund shall be transferred and credited
2 to the juvenile detention
facilities fund.
3
(b) There is hereby created in the state treasury the
juvenile
4 detention facilities fund which
shall be administered by the com-
5 missioner of juvenile justice.
The Kansas advisory group on juvenile
6 justice and delinquency
prevention shall review and make recom-
7 mendations concerning the
administration of the fund. All expend-
8 itures from the juvenile
detention facilities fund shall be for the
9 retirement of debt of
facilities for the detention of juveniles; or for
10 the construction, renovation,
remodeling or operational costs of fa-
11 cilities for the detention of
juveniles in accordance with a grant
12 program which shall be established
with grant criteria designed to
13 facilitate the expeditious award and
payment of grants for the pur-
14 poses for which the moneys are
intended. ``Operational costs'' shall
15 not be limited to any per capita
reimbursement by the commissioner
16 of juvenile justice for juveniles
under the supervision and custody
17 of the commissioner but shall include
payments to counties as and
18 for their costs of operating the
facility. The commissioner of juvenile
19 justice shall make grants of the
moneys credited to the juvenile de-
20 tention facilities fund for such
purposes to counties in accordance
21 with such grant program. All
expenditures from the juvenile deten-
22 tion facilities fund shall be made in
accordance with appropriation
23 acts upon warrants of the director of
accounts and reports issued
24 pursuant to vouchers approved by the
commissioner of juvenile jus-
25 tice or the commissioner's
designee.
26
Sec. 25.
[24.] K.S.A. 79-4804 is hereby amended to
read as fol-
27 lows: 79-4804. (a) After
the transfer of moneys pursuant to section
24
28 [23], and amendments
thereto, an amount equal to 85% of the
balance
29 of all moneys credited to the
state gaming revenues fund shall be
30 transferred and credited to the state
economic development initia-
31 tives fund. Expenditures from the
state economic development ini-
32 tiatives fund shall be made in
accordance with appropriations acts
33 for the financing of such programs
supporting and enhancing the
34 existing economic foundation of the
state and fostering growth
35 through the expansion of current, and
the establishment and at-
36 traction of new, commercial and
industrial enterprises as provided
37 by this section and as may be
authorized by law and not less than
38 1/2 of such money shall be
distributed equally among the congres-
39 sional districts of the state. Except
as provided by subsection (g),
40 all moneys credited to the state
economic development initiatives
41 fund shall be credited within the
fund, as provided by law, to an
42 account or accounts of the fund which
are created by this section.
43 (b) There
is hereby created the Kansas capital formation ac-
48
1 count in the state economic
development initiatives fund. All mon-
2 eys credited to the Kansas
capital formation account shall be used
3 to provide, encourage and
implement capital development and for-
4 mation in Kansas.
5
(c) There is hereby created the Kansas economic
development
6 research and development
account in the state economic develop-
7 ment initiatives fund. All
moneys credited to the Kansas economic
8 development research and
development account shall be used to
9 promote, encourage and
implement research and development pro-
10 grams and activities in Kansas and
technical assistance funded
11 through state educational
institutions under the supervision and
12 control of the state board of regents
or other Kansas colleges and
13 universities.
14 (d) There
is hereby created the Kansas economic development
15 endowment account in the state
economic development initiatives
16 fund. All moneys credited to the
Kansas economic development en-
17 dowment account shall be accumulated
and invested as provided in
18 this section to provide an ongoing
source of funds which shall be
19 used for economic development
activities in Kansas, including but
20 not limited to continuing
appropriations or demand transfers for
21 programs and projects which shall
include, but are not limited to,
22 specific community infrastructure
projects in Kansas that stimulate
23 economic growth.
24 (e) Except
as provided in subsection (f), the director of invest-
25 ments may invest and reinvest moneys
credited to the state eco-
26 nomic development initiatives fund in
accordance with investment
27 policies established by the pooled
money investment board under
28 K.S.A. 75-4232, and amendments
thereto, in the pooled money in-
29 vestment portfolio. All moneys
received as interest earned by the
30 investment of the moneys credited to
the state economic develop-
31 ment initiatives fund shall be
deposited in the state treasury and
32 credited to the Kansas economic
development endowment account
33 of such fund.
34 (f) Moneys
credited to the Kansas economic development en-
35 dowment account of the state economic
development initiatives
36 fund may be invested in government
guaranteed loans and deben-
37 tures as provided by law in addition
to the investments authorized
38 by subsection (e) or in lieu of such
investments. All moneys received
39 as interest earned by the investment
under this subsection of the
40 moneys credited to the Kansas
economic development endowment
41 account shall be deposited in the
state treasury and credited to the
42 Kansas economic development endowment
account of the state ec-
43 onomic development initiatives
fund.
49
1
(g) In each fiscal year, the director of accounts and reports
shall
2 make transfers in equal amounts
on July 15 and January 15 which
3 in the aggregate equal
$2,000,000 from the state economic devel-
4 opment initiatives fund to the
state water plan fund created by
5 K.S.A. 82a-951, and amendments
thereto. No other moneys credited
6 to the state economic
development initiatives fund shall be used for:
7 (1) Water-related projects or
programs, or related technical assis-
8 tance; or (2) any other
projects or programs, or related technical
9 assistance, which meet one or
more of the long-range goals, objec-
10 tives and considerations set forth in
the state water resource plan-
11 ning act.
12 New
Sec. 26.
[25.] All sales of bingo cards, bingo
faces and in-
13 stant bingo tickets by licensees
under K.S.A. 79-4701 et seq., and
14 amendments thereto, shall be exempt
from the taxes levied and col-
15 lected by cities and counties under
K.S.A. 12-187 et seq., and amend-
16 ments thereto.
17 Sec.
24.
27.
[26.] K.S.A. 74-8711, 74-8712,
74-8720,
79-4701,
18 79-4703, 79-4704, 79-4705, 79-4705a,
79-4706, 79-4707, 79-4708,
19 79-4710, 79-4711, 79-4712a,
79-4713 and 79-4714 and K.S.A.
1998,
20 79-4713 and 79-4804 and K.S.A.
1999 Supp. 74-8836 and
79-3606
21 79-4803 are hereby
repealed.
22 Sec.
18
25.
28
[27.] This act shall take effect and be in force
from
23 and after its publication in the statute
book.