As Amended by Senate Committee          

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Session of 2000
          SENATE BILL No. 667           By Committee on Federal and State Affairs           3-20          

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10             AN  ACT concerning racing and gaming; concerning electronic gaming
11             machines; amending K.S.A. 74-8702 and K.S.A. 1999 Supp. 19-101a
12             and 74-8723 and repealing the existing sections; also repealing K.S.A.
13             19-101j.
14      
15       Be it enacted by the Legislature of the State of Kansas:
16             Section  1. K.S.A. 74-8702 is hereby amended to read as follows: 74-
17       8702. As used in this act the Kansas lottery act and sections 2 through
18       25, and amendments thereto, unless the context otherwise requires:
19             (a) ``Commission'' means the Kansas lottery commission.
20             (b) ``Executive director'' means the executive director of the Kansas
21       lottery.
22             (c) ``Gaming equipment'' means any electric, electronic or mechani-
23       cal device or other equipment unique to the Kansas lottery used directly
24       in the operation of any lottery and in the determination of winners pur-
25       suant to this act.
26             (c) ``Gaming equipment'' means any electric, electronic, computerized
27       or electromechanical machine, mechanism, supply or device or other
28       equipment unique to the Kansas lottery used pursuant to sections 2
29       through 25, and amendments thereto, or integral to the operation of an
30       electronic gaming machine or which affects the results of an electronic
31       gaming machine by determining win or loss.
32             (d) ``Kansas lottery'' means the state agency created by this act to
33       operate a lottery or lotteries pursuant to this act.
34             (e) ``Lottery retailer'' means any person with whom the Kansas lottery
35       has contracted to sell lottery tickets or shares, or both, to the public.
36             (f) ``Lottery'' or ``state lottery'' means the lottery or lotteries operated
37       pursuant to this act.
38             (g) ``Major procurement'' means any gaming product or service, in-
39       cluding but not limited to facilities, advertising and promotional services,
40       annuity contracts, prize payment agreements, consulting services, equip-
41       ment, tickets and other products and services unique to the Kansas lot-
42       tery, but not including materials, supplies, equipment and services com-
43       mon to the ordinary operations of state agencies.

2
  1             (h) ``Person'' means any natural person, association, corporation or
  2       partnership.
  3             (i) ``Prize'' means any prize paid directly by the Kansas lottery pur-
  4       suant to its rules and regulations.
  5             (j) ``Share'' means any intangible manifestation authorized by the
  6       Kansas lottery to prove participation in a lottery game.
  7             (k) ``Ticket'' means any tangible evidence issued by the Kansas lottery
  8       to prove participation in a lottery game.
  9             (l) ``Vendor'' means any person who has entered into a major pro-
10       curement contract with the Kansas lottery.
11             (m) ``Returned ticket'' means any ticket which was transferred to a
12       lottery retailer, which was not sold by the lottery retailer and which was
13       returned to the Kansas lottery for refund by issuance of a credit or
14       otherwise.
15             (n)  (1) ``Video lottery machine'' means any electronic video game
16       machine that, upon insertion of cash, is available to play or simulate the
17       play of a video game authorized by the commission, including but not
18       limited to bingo, poker, black jack and keno, and which uses a video
19       display and microprocessors and in which, by chance, the player may
20       receive free games or credits that can be redeemed for cash.
21             (2) ``Video lottery machine'' shall not mean an electronic gaming ma-
22       chine as defined by this section.
23             (o) ``Electronic card'' means a card purchased from a lottery gaming
24       machine operator for use on an electronic gaming machine.
25             (p) (1) ``Electronic gaming machine'' means any electronic, electro-
26       mechanical, video or computerized device, contrivance or machine au-
27       thorized by the commission which, upon the insertion of cash, tokens,
28       electronic cards or any consideration, is available to play, be operated or
29       simulate the play of, a game authorized by the commission at a parimutuel
30       licensee location, including but not limited to, bingo, poker, blackjack,
31       keno and slot machines and which may deliver or entitle the player op-
32       erating the machine to receive cash, tokens, merchandise or credits that
33       may be redeemed for cash. Electronic gaming machines may use bill val-
34       idators and may be single-position reel-type, single or multi-game video
35       and single-position multigame video electronic game, including but not
36       limited to, poker, blackjack and slot machines. Electronic gaming ma-
37       chines shall be linked to a central computer on location for purposes of
38       security, monitoring and auditing.
39        (2) ``Electronic gaming machine'' shall not include any casino
40       table game, such as craps, poker, blackjack, roulette, keno, layout,
41       numbers, tickets, baccarat, Klondike table, punchboard, punch
42       cards, faro layout, ticket or pull tab or video lottery machine.
43             (q) ``Key gaming employee'' means any natural person 21 years of age

3
  1       or older employed by or contracted by a lottery gaming machine operator
  2       or by any person or enterprise providing on or off-site management or
  3       employee-related services to the lottery gaming machine operator includ-
  4       ing, but not limited to the positions of, gaming operator manager and
  5       assistant manager; facilities operator manager; electronic games manager;
  6       accounting department personnel; count room employees; cage depart-
  7       ment employees, including cashiers and main bank employees; vault de-
  8       partment employees; approvers of credit; surveillance department em-
  9       ployees; security department employees; floor managers; electronic
10       gaming device technicians; custodians of electronic gambling devices, in-
11       cluding persons with access to cash and accounting records within such
12       devices; collection personnel; internal auditors of the lottery gaming ma-
13       chine operator; and employees whose total cash compensation is in excess
14       of $50,000 per year.
15             (r) ``Lottery gaming machine operator'' means any parimutuel li-
16       censee with which the executive director has contracted for the placement
17       of an electronic gaming machine pursuant to this act.
18             (s) ``Net machine income'' means the total of all cash and the face
19       value of all tokens or electronic cards placed in an electronic gaming
20       machine less cash, merchandise or credits that may be redeemed for cash
21       paid to players as winnings.
22             (t) ``Parimutuel licensee'' means a facility owner licensee or a facility
23       manager licensee, as defined by K.S.A. 74-8802, and amendments thereto.
24             (u) ``Parimutuel licensee location'' means a racetrack facility located
25       on or immediately adjacent to the real estate of a parimutuel licensee
26       where live horse racing or live greyhound racing has been authorized or
27       for which application for authorization is pending prior to February 1,
28       2000, to be conducted pursuant to the Kansas parimutuel racing act. A
29       parimutuel licensee location may include any of the existing structures
30       located on the real estate where the live horse racing or live greyhound
31       racing is authorized to be conducted or any other structures that may be
32       constructed on or immediately adjacent to such real estate. In order to
33       qualify as a parimutuel licensee location, a racetrack facility where live
34       horse racing is conducted shall be approved for at least 52 days each year
35       on which live horse racing shall be conducted.
36        (v) ``Progressive game'' means a game played on an electronic
37       gaming device on which the payoff increases uniformly as the elec-
38       tronic gaming device is played and on which the jackpot, deter-
39       mined by application of a formula to the income of independent,
40       local or interlinked electronic gaming devices, may be won.
41             (v) (w) ``Technology provider'' means any person or entity other than
42       a lottery gaming machine operator that designs, manufactures, installs,
43       operates, distributes, supplies or replaces an electronic gaming machine

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  1       for sale, lease or use in accordance with this act.
  2             (w) (x) ``Token'' means a metal representative of value, which is not
  3       legal tender, redeemable for cash only by the issuing lottery gaming ma-
  4       chine operator at its parimutuel licensee location and issued and sold by
  5       a lottery gaming machine operator for the sole purpose of playing an
  6       electronic gaming machine.
  7             New Sec.  2. (a) Sections 2 through 25, and amendments thereto,
  8       shall be known as the Kansas gaming revenue recovery act and shall be
  9       supplemental to the Kansas lottery act.
10             (b) If any provision of this act or the application thereof to any person
11       or circumstance is held invalid, the invalidity shall not affect any other
12       provision or application of the act which can be given effect without the
13       invalid provision or application, and to this end the provisions of this act
14       are severable.
15             New Sec.  3. (a) Subject to the provisions of this act, the executive
16       director shall contract with parimutuel licensees for the operation and
17       management of electronic gaming machines at parimutuel licensee lo-
18       cations by the state of Kansas. The executive director shall contract only
19       with parimutuel licensees in counties in which a proposition submitted
20       pursuant to section 5, and amendments thereto, of this act has been ap-
21       proved by the voters of such county.
22             (b) The lottery gaming machine operator shall purchase a license at
23       its expense for the Kansas lottery for all software programs used by such
24       lottery gaming machine operator to operate electronic gaming machines.
25       The Kansas lottery shall be the licensee of all such software programs and
26       shall sublicense such software programs to each lottery gaming machine
27       operator. Electronic gaming machines purchased or leased by the lottery
28       gaming machine operator at its own expense may be installed, operated
29       or managed, owned or leased by a lottery gaming machine operator or
30       by a technology provider under contract with the lottery gaming machine
31       operator as provided by this act. Such machines shall be subject to the
32       ultimate control of the Kansas lottery in accordance with this act. Each
33       specific type of electronic gaming machine shall be approved by the Kan-
34       sas lottery in accordance with K.S.A. 74-8710, and amendments thereto.
35       The use of progressive electronic gaming machines is expressly permitted.
36             (c) Each contract between the executive director and a lottery gaming
37       machine operator shall provide that the Kansas lottery receive all of the
38       net machine income derived from the operation of electronic gaming
39       machines at the parimutuel licensee location.
40             (d) The initial term of such contract shall be not less than the re-
41       maining term of the Kansas lottery and shall renew with each extension
42       of the Kansas lottery as provided in K.S.A. 74-8723, and amendments
43       thereto.

5
  1             (e) Contracts authorized by this section may include the following:
  2             (1) Accounting procedures to determine the net machine income,
  3       unclaimed merchandise and credits.
  4             (2) The location of electronic gaming machines within the parimutuel
  5       licensee location and such other matters as are necessary and reasonable
  6       for the operation of electronic gaming machines. Except as provided by
  7       this act, the days and hours of operation and the number of such elec-
  8       tronic gaming machines shall not be restricted.
  9             (3) Minimum requirements for an electronic gaming machine oper-
10       ator to provide qualified oversight, security and supervision of the oper-
11       ation of electronic gaming machines at the parimutuel licensee location,
12       including the use of qualified personnel with experience in applicable
13       technology.
14             (4) The eligibility requirements for employees of a lottery gaming
15       machine operator who will have responsibility for the handling of cash or
16       tokens. Such requirements may include a background investigation per-
17       formed by the Kansas racing and gaming commission and that any key
18       gaming employee shall be licensed as provided in section 23, and amend-
19       ments thereto.
20             (5) Provision for termination of the contract by either party for cause,
21       including but not limited to, failure of the lottery gaming machine op-
22       erator to maintain a parimutuel license in accordance with K.S.A. 74-
23       8801 et seq., and amendments thereto, failure of the lottery gaming ma-
24       chine operator to collect and remit net machine income pursuant to
25       section 8, and amendments thereto, or any other contract provisions as
26       are mutually agreed by the parties pursuant to this section.
27             (f) The Kansas lottery shall examine prototypes of electronic gaming
28       machines and shall notify the Kansas racing and gaming commission
29       which such types of electronic gaming machines are in compliance with
30       the requirements of this act.
31             (g) No electronic gaming machine shall be operated pursuant to this
32       act unless the executive director of the Kansas racing and gaming com-
33       mission first issues a certificate for such machine authorizing its use at a
34       specified parimutuel licensee facility. Each machine shall have the cer-
35       tificate prominently displayed thereon. Any machine which does not dis-
36       play the certificate required by this section is contraband and a public
37       nuisance subject to confiscation by any law enforcement officer.
38             (h) The executive director shall require any manufacturer, supplier,
39       provider, lottery gaming machine operator or other person seeking the
40       examination and certification of electronic gaming machines to pay the
41       anticipated actual costs of the examination in advance. After the comple-
42       tion of the examination, the executive director shall refund any over-
43       payment or charge and collect amounts sufficient to reimburse the ex-

6
  1       ecutive director for any underpayment of actual costs. The executive
  2       director may contract for the examination of electronic gaming machines
  3       as required by this subsection, and may rely upon testing done by or for
  4       other states regulating electronic gaming machines, if the executive di-
  5       rector deems such testing to be reliable and in the best interest of the
  6       state of Kansas.
  7             (i) Electronic gaming machines operated pursuant to this act shall:
  8             (1) Pay out an average of not less than 87% of the amount wagered;
  9             (2) be linked to a central communications system to provide auditing
10       and other program information as approved by the commission. The com-
11       munications systems certified by the commission may not limit partici-
12       pation to only one electronic gaming machine manufacturer, distributor,
13       supplier or provider; and
14             (3) be on-line and in constant communication with a central com-
15       puter located in a commission an office located at the parimutuel licensee
16       location. The electronic gaming machine operator shall purchase at its
17       expense for the Kansas lottery all gaming equipment as is necessary to
18       implement such central communications and auditing functions.
19             New Sec.  4. In addition to the powers granted pursuant to K.S.A.
20       74-8704 and section 3, and amendments thereto, the executive director
21       shall have the power to:
22             (a) Enter into contracts with parimutuel licensees for placement, re-
23       placement and operation of electronic gaming machines at parimutuel
24       licensee locations. Such contracts shall be subject to rules and regulations
25       adopted pursuant to the Kansas lottery act and this act but shall not be
26       subject to the provisions of K.S.A. 75-3738 through 75-3744, and amend-
27       ments thereto.
28             (b) Examine or cause to be examined by any agent or representative
29       designated by the executive director any books, papers, records or mem-
30       oranda of any gaming machine operator for the purpose of ascertaining
31       compliance with the provisions of the Kansas lottery act or this act or
32       rules and regulations adopted thereunder.
33             (c) Issue subpoenas to compel access to or for the production of any
34       books, papers, records or memoranda in the custody or control of any
35       lottery gaming machine operator, or to compel the appearance of any
36       lottery gaming machine operator for the purpose of ascertaining compli-
37       ance with the provisions of this act or rules and regulations adopted here-
38       under. Subpoenas issued under the provisions of this subsection may be
39       served upon natural persons and corporations in the manner provided in
40       K.S.A. 60-304, and amendments thereto, for the service of process by any
41       officer authorized to serve subpoenas in civil actions or by the executive
42       director or an agent or representative designated by the executive direc-
43       tor. In the case of the refusal of any person to comply with any such

7
  1       subpoena, the executive director may make application to the district
  2       court of any county where such books, papers, records, memoranda or
  3       person is located for an order to comply.
  4             (d) Inspect and view the operation of all machines, systems or facil-
  5       ities where electronic gaming machines controlled and operated by the
  6       Kansas lottery are located.
  7             (e) Inspect and approve, prior to publication or distribution, all ad-
  8       vertising by a lottery gaming machine operator which includes any ref-
  9       erence to the Kansas lottery.
10             New Sec.  5. (a) Electronic gaming machines shall be operated pur-
11       suant to this act only in counties where, in accordance with this section,
12       the qualified voters of the county have voted to permit operation of elec-
13       tronic gaming machines at parimutuel racetracks within the county.
14             (b) The board of county commissioners of any county in which a
15       parimutuel licensee is located, by resolution, may submit and upon pres-
16       entation of a petition filed in accordance with subsection (c), shall submit
17       to the qualified voters of the county a proposition to permit the operation
18       of electronic gaming machines at parimutuel racetracks within the county.
19       The proposition shall be submitted to the voters either in a countywide
20       special election called by the board of county commissioners for that
21       purpose and held not less than 90 days after the resolution is adopted or
22       the petition is filed or at the next general election as shall be specified by
23       the board of county commissioners or in the petition, as the case may be.
24             (c) A petition to submit a proposition to the qualified voters of a
25       county pursuant to this section shall be filed with the county election
26       officer. The petition shall be signed by qualified voters of the county equal
27       in number to not less than 10% of the voters of the county who voted for
28       the office of secretary of state at the last preceding general election at
29       which such office was elected. The following shall appear on the petition:
30       ``We request an election to determine whether the operation of electronic
31       gaming machines by the Kansas lottery shall be permitted at parimutuel
32       racetracks in ________ county.''
33             (d) Upon the adoption of a resolution or the submission of a valid
34       petition calling for an election pursuant to this section, the county election
35       officer shall cause the following proposition to be placed on the ballot at
36       the election called for that purpose: ``Shall the operation of electronic
37       gaming machines by the Kansas lottery be permitted at parimutuel race-
38       tracks in ________ county?''
39             (e) If a majority of the votes cast and counted at such election is in
40       favor of permitting the operation of such games at such racetracks, the
41       Kansas lottery shall enter a contract with parimutuel licensees to operate
42       such games at the parimutuel racetracks located in the county. If a ma-
43       jority of the votes cast and counted at an election under this section is

8
  1       against permitting the operation of electronic gaming machines at pari-
  2       mutuel racetracks in the county, the Kansas lottery shall not operate such
  3       games. The county election officer shall transmit a copy of the certifica-
  4       tion of the results of the election to the executive director.
  5             (f) The election provided for by this section shall be conducted, and
  6       the votes counted and canvassed, in the manner provided by law for
  7       question submitted elections of the county.
  8             (g) If in any election provided for by this section a majority of the
  9       votes cast and counted is against permitting the operation of electronic
10       gaming machines in the county, another election submitting the issue of
11       the operation of electronic gaming machines in the county shall not be
12       held for at least two years from the date of such election.
13             New Sec.  6. (a) All purse supplements paid pursuant to this act shall
14       be according to the point schedule in effect on January 1, 1999, at the
15       parimutuel licensee location in Sedgwick county. All purse supplements
16       paid pursuant to this section shall be in addition to purses and supple-
17       ments paid under K.S.A. 74-8801 et seq., and amendments thereto.
18             (b) No electronic gaming machine shall be operated pursuant to this
19       act unless the facility in which the electronic gaming machine is operated
20       displays live and simulcast parimutuel races on video terminals and has
21       installed parimutuel windows for wagering on parimutuel races.
22             (c) Except as provided in subsection (d) of this section, no electronic
23       gaming machine shall be operated pursuant to this act unless at the fol-
24       lowing locations:
25             (1) During the first full calendar year and each year thereafter in
26       which electronic gaming machines are operated, the parimutuel licensee
27       shall conduct at the parimutuel licensee location in Sedgwick county at
28       least eight live racing programs each calendar week for the number of
29       weeks equal to or greater than the number of weeks raced during the
30       1998 calendar year with at least 12 13 live races conducted each program.
31             (2) During the first full calendar year and each year thereafter in
32       which electronic gaming machines are operated, the parimutuel licensee
33       shall conduct at the parimutuel licensee location in Wyandotte county at
34       least seven live racing programs each calendar week for the number of
35       weeks equal to or greater than the number of weeks raced during the
36       1998 calendar year with at least 12 13 live races conducted each program
37       and also shall conduct at least 60 days of live horse racing with a
38       minimum of seven live thoroughbred and three live quarterhorse
39       races per day.
40             (3) During the first full calendar year and each year thereafter in
41       which electronic gaming machines are operated, the parimutuel licensee
42       shall conduct at the parimutuel licensee location in Crawford county live
43       racing the number of days agreed upon by the organization licensee and

9
  1       the parimutuel licensee but not less than 150 days, comprised of at least
  2       seven live racing programs each calendar week with at least 12 13 live
  3       races conducted each program.
  4             (d) The Kansas racing and gaming commission may provide excep-
  5       tions to the requirements of subsection (c) for a parimutuel licensee con-
  6       ducting live racing when events beyond the control of the licensee may
  7       render racing impossible or impractical. Such events shall include any
  8       natural or man-made disaster, shortage of qualified racing animals due to
  9       kennel sickness or otherwise or state imposed limitations on operations.
10             New Sec.  7. (a) There is hereby created in the state treasury the
11       Kansas education enhancement fund. Such fund shall be for the sole
12       purpose of improving access for Kansans to learning and information.
13       Deposits to this fund shall derive exclusively from revenues of the Kansas
14       lottery deposited pursuant to subsection (c)(8) of section 11 section 8,
15       and amendments thereto, and interest attributable to such funds. The
16       director of accounts and reports shall disburse funds in accordance with
17       appropriations made therefor to colleges and universities under the con-
18       trol of the Kansas board of regents, Washburn university, community
19       colleges under the supervision of the Kansas board of regents, the state
20       library for grants-in-aid to local libraries and the board of education of
21       any school district. The legislature may appropriate only those funds in
22       the Kansas education enhancement fund as are on hand as of December
23       31 of each year preceding the legislative session in which such appropri-
24       ation is to be made. Such funds shall not be used to replace property
25       taxes or general fund support for activities, services, supplies, mainte-
26       nance, salaries, benefits, equipment, facilities or other purposes existing
27       and funded by federal, state or local moneys as of the effective date of
28       this act.
29             (b) There is hereby created in the state treasury the live horse racing
30       purse supplement fund. Moneys available in such fund shall be paid to
31       parimutuel licensees for distribution as purse supplements in accordance
32       with rules and regulations of the Kansas racing and gaming commission.
33       Such rules and regulations shall provide that an amount equal to
34       20% of the moneys in the live horse racing purse supplement fund
35       shall be transferred to the horse breeding development fund created
36       pursuant to K.S.A. 74-8829, and amendments thereto, to be ex-
37       pended as provided therein. The balance in such fund shall be ex-
38       pended upon recommendation of the respective thoroughbred and
39       quarterhorse breed organizations with the approval of the Kansas
40       racing and gaming commission.
41             (c) There is hereby created in the state treasury the live dog racing
42       purse supplement fund. Moneys available in such fund shall be paid to
43       parimutuel licensees for distribution as purse supplements in accordance

10
  1       with rules and regulations of the Kansas racing and gaming commission.
  2       Such rules and regulations also shall provide that a portion of the
  3       moneys available in such fund, in an amount not to exceed 20% of
  4       such fund shall be transferred to the greyhound breeding develop-
  5       ment fund created pursuant to K.S.A. 74-8831, and amendments
  6       thereto, to be expended as provided therein.
  7             (d) There is hereby created in the state treasury the electronic gaming
  8       machine operation and regulatory fund. Moneys in such fund shall be
  9       used to pay for the expenses of the Kansas lottery and the Kansas racing
10       and gaming commission attributable to the operation and regulation of
11       electronic gaming machines. Moneys in such fund may be expended only
12       pursuant to appropriation and moneys in excess of those appropriated to
13       the Kansas lottery and the Kansas racing and gaming commission may be
14       transferred to the state general gaming revenues fund and expended as
15       provided by appropriation.
16             (e) There is hereby created in the state treasury the electronic gaming
17       machine fund.
18             New Sec.  8. (a) The executive director shall collect and remit to the
19       state treasurer not less than once each week all net machine income
20       received from lottery gaming machine operators to be credited to the
21       electronic gaming machine fund, created pursuant to section 7, and
22       amendments thereto. Separate accounts shall be maintained in the elec-
23       tronic gaming machine fund for receipt of funds from each lottery gaming
24       machine operator. Not less than once each week, the state treasurer shall
25       distribute from the total receipts credited to each such account of the
26       electronic gaming machine fund an amount equal to:
27             (1) One percent to the electronic gaming machine operation and reg-
28       ulatory fund;
29             (2) one-half percent to the Kansas lottery for problem gambler pro-
30       grams developed by the Kansas lottery the state gaming revenues fund
31       to be expended in accordance with appropriation acts which may
32       include transfers to the problem gambling grant fund created pur-
33       suant to section 10, and amendments thereto;
34             (3) one and one-half percent for to the county in which the electronic
35       gaming machine operator is located;
36             (4) three and one-half percent to the live horse racing purse supple-
37       ment fund established pursuant to section 7, and amendments thereto.
38       Such moneys shall be distributed from the separate horse purse supple-
39       ment accounts maintained pursuant to subsection (b) of section 7, and
40       amendments thereto, in accordance with rules and regulations of the
41       Kansas racing and gaming commission; provided that not. Not less than
42       $1,600,000 shall be guaranteed annually by parimutuel licensees to be
43       charged against the accounts of such licensees on a pro rata basis. The

11
  1       revenues dedicated to purse supplements shall be distributed into
  2       separate quarterhorse and thoroughbred accounts, with each year's
  3       percentage calculated on an average of the preceding three years'
  4       live starters in Kansas;
  5             (5) three and one-half percent to the live dog racing purse supple-
  6       ment fund established pursuant to section 7, and amendments thereto,
  7       to be distributed in accordance with the rules and regulations of the
  8       Kansas racing and gaming commission; and
  9             (6) twenty percent to the Kansas education enhancement fund estab-
10       lished pursuant to section 7, and amendments thereto.
11             (b) After the distribution of moneys pursuant to subsection (a), the
12       state treasurer shall remit the balance in the account for each lottery
13       gaming machine operator to such lottery gaming machine operator not
14       less than once each week. From this fund, the lottery gaming machine
15       operator shall pay the organization licensee such amounts as are agreed
16       to by the organization licensee and the lottery gaming machine operator.
17             New Sec.  9. The Kansas lottery commission, upon the recommen-
18       dation of the executive director, shall adopt rules and regulations neces-
19       sary to carry out the purposes of this act. Temporary rules and regulations
20       may be adopted by the commission without being subject to the provi-
21       sions and requirements of K.S.A. 77-415 through 77-438, and amend-
22       ments thereto, but shall be subject to approval by the attorney general as
23       to legality and shall be filed with the secretary of state and published in
24       the Kansas register. Temporary and permanent rules and regulations may
25       include but shall not be limited to electronic gaming machines operated
26       at parimutuel licensee locations.
27             New Sec.  10. (a) The executive director shall develop and administer
28       a competitive grant program for the treatment of problem or compulsive
29       gamblers and conduct studies on the effects of gambling in Kansas. At
30       least annually, the executive director shall determine the amount of mon-
31       eys available for grants. The executive director shall issue requests for
32       proposals for grant awards in accordance with the provisions of this
33       section.
34             (b) In issuing requests for proposals and making such grants, the ex-
35       ecutive director shall encourage proposals for new or creative programs
36       or activities in addition to established or current programs or activities.
37             (c) In addition to other criteria prescribed by the executive director,
38       the executive director shall require each proposal for a grant to demon-
39       strate that the proposal has been developed with substantial and effective
40       collaboration and coordination between the applicant and the public and
41       private organizations in the community that are directly involved or oth-
42       erwise recognized as interested in the treatment of problem or compul-
43       sive gamblers or the study of the effects of gambling, including but not

12
  1       limited to community mental health centers and organizations and public
  2       health and social services agencies.
  3        New Sec.  10. (a) There is hereby established in the state treas-
  4       ury the problem gambling grant fund. All moneys credited to such
  5       fund shall be used only for the awarding of grants under this sec-
  6       tion. Such fund shall be administered in accordance with this sec-
  7       tion and the provisions of appropriations acts.
  8             (b) All expenditures from the problem gambling grant fund shall
  9       be made in accordance with appropriation acts upon warrants of
10       the director of accounts and reports issued pursuant to vouchers
11       approved in the manner prescribed by law.
12             (c) There is hereby established a state grant program to provide
13       assistance for the direct treatment of persons diagnosed as suffering
14       from pathological gambling and to provide funding for research
15       regarding the impact of gambling on residents of Kansas. Research
16       grants awarded under this section may include, but need not be
17       limited to, grants for determining the effectiveness of education and
18       prevention efforts on the prevalence of pathological gambling in
19       Kansas. All grants shall be made after open solicitation of proposals
20       and evaluation of proposals against criteria established in rules and
21       regulations adopted by the secretary of the department of social
22       and rehabilitation services. Both public and private entities shall
23       be eligible to apply for and receive grants under the provisions of
24       this section.
25             (d) The secretary of the department of social and rehabilitation
26       services is hereby authorized to receive moneys from any grants,
27       gifts, contributions or bequests made for the purpose of funding
28       grants under this section and to expend such moneys for the purpose
29       for which received.
30             (e) All grants made in accordance with this section shall be
31       made from the problem gambling grant fund. The secretary shall
32       administer the provisions of this section and shall adopt rules and
33       regulations establishing criteria for qualification to receive grants
34       and such other matters deemed necessary by the secretary for the
35       administration of this section. Such rules and regulations shall in-
36       clude, but need not be limited to, a requirement that each recipient
37       of a grant to provide treatment for pathological gamblers report at
38       least annually to the secretary the grantee's measurable achieve-
39       ment of specific outcome goals.
40             (f) For the purpose of this section ``pathological gambling''
41       means the disorder by that name described in the most recent edi-
42       tion of the diagnostic and statistical manual.
43             New Sec.  11. (a) Except as provided in subsection (c), it is unlawful

13
  1       for any parimutuel licensee to allow any person to play electronic gaming
  2       machines or share in winnings of a person knowing such person to be:
  3             (1) Under 21 years of age except as provided by subsection (c);
  4             (2) the executive director, a member of the commission or an em-
  5       ployee of the Kansas lottery;
  6             (3) an officer or employee of a vendor contracting with the Kansas
  7       lottery to supply gaming equipment or tickets to the Kansas lottery for
  8       use in the operation of any lottery conducted pursuant to this act;
  9             (4) a spouse, child, stepchild, brother, stepbrother, sister, stepsister,
10       parent or stepparent of a person described by subsection (a)(2) or (3); or
11             (5) a person who resides in the same household as any person de-
12       scribed by subsection (a)(2) or (3).
13             (b) Violation of subsection (a) is a class A nonperson misdemeanor
14       upon conviction for a first offense. Violation of subsection (a) is a severity
15       level 9, nonperson felony upon conviction for a second or subsequent
16       offense.
17             (c) The executive director may authorize in writing any employee of
18       the Kansas lottery and any employee of a lottery vendor to play an elec-
19       tronic gaming machine to verify the proper operation thereof with respect
20       to security and contract compliance. Any prize awarded as a result of such
21       ticket purchase shall become the property of the Kansas lottery and be
22       added to the prize pools of subsequent lottery games. No money or mer-
23       chandise shall be awarded to any employee playing an electronic gaming
24       machine pursuant to this subsection.
25             New Sec.  12. A parimutuel licensee shall post one or more signs on
26       licensed premises at points of entry to the areas where electronic gaming
27       machines are located to inform patrons of the toll-free number available
28       to provide information and referral services regarding compulsive or
29       problem gaming. The text shall be determined by the secretary of the
30       department of health and environment. Failure by the parimutuel li-
31       censee to post and maintain such signs shall be cause for the imposition
32       of a fine not to exceed $500 per day.
33             New Sec.  13. Each lottery gaming machine operator shall provide
34       access for the executive director or the executive director's designee or
35       the commission and its designated employees to all its records and the
36       physical premises where the electronic gaming machine activities occur
37       for the purpose of monitoring or inspecting the electronic gaming ma-
38       chines and gaming equipment. None of the information disclosed pur-
39       suant to this subsection shall be subject to disclosure under the Kansas
40       open records act, K.S.A. 45-216 et seq., and amendments thereto.
41             New Sec.  14. (a) Wagers shall be received only from a person at a
42       parimutuel licensee location. No person present at a parimutuel licensee
43       location shall place or attempt to place a wager on behalf of another

14
  1       person who is not present at a parimutuel licensee location.
  2             (b) Violation of this section is a class A nonperson misdemeanor upon
  3       a conviction for a first offense. Violation of this section is a severity level
  4       9, nonperson felony upon conviction for a second or subsequent offense.
  5             New Sec.  15. A person under age 21 shall not be permitted in an
  6       area of a parimutuel licensee location where gaming is being conducted,
  7       except for a person at least 18 years of age who is an employee of the
  8       parimutuel licensee. No employee under age 21 shall perform any func-
  9       tion involved in gaming by the patrons. No person under age 21 shall be
10       permitted to make a wager on an electronic gaming machine.
11             New Sec.  16. If a disagreement arises between the executive director
12       and the Kansas racing and gaming commission with regard to their re-
13       spective duties or responsibilities in carrying out the purposes of the Kan-
14       sas lottery act, such disagreement shall be resolved by the governor in a
15       manner not inconsistent with the provisions of such act.
16             New Sec.  17. Pursuant to section 2 of the federal act entitled ``An
17       Act to Prohibit Transportation of Gambling Devices in Interstate and
18       Foreign Commerce,'' 15 U.S.C. 1171 through 1777, the state of Kansas,
19       acting by and through the duly elected and qualified members of the
20       legislature, does hereby in this section, and in accordance with and in
21       compliance with the provisions of section 2 of such federal act, declare
22       and proclaim that it is exempt from the provision of section 2 of such
23       federal act to the extent that such gambling devices are being transported
24       to or from a licensed gaming machine operator at a parimutuel licensee
25       location within the state of Kansas.
26             New Sec.  18. Except for persons acting in accordance with the rules
27       and regulations of the Kansas lottery and the Kansas racing and gaming
28       commission in performing installation, maintenance and repair services,
29       any person who, with the intent to manipulate the outcome, pay-off or
30       operation of an electronic gaming machine, manipulates the outcome,
31       pay-off or operation of an electronic gaming machine by physical, elec-
32       trical or mechanical means shall be guilty of a severity level 8, nonperson
33       felony.
34             New Sec.  19. Nothing in this act shall restrict the jurisdiction of the
35       Kansas racing and gaming commission to regulate activities conducted at
36       parimutuel licensee facilities including the premises on which electronic
37       gaming machines are operated. The days and hours of operation and the
38       number of electronic gaming machines shall not be restricted unless oth-
39       erwise authorized by this act.
40             New Sec.  20. All sales of electronic gaming machine games shall be
41       exempt from sales taxes imposed pursuant to K.S.A. 12-187 et seq. and
42       79-3601 et seq., and amendments thereto.
43             New Sec.  21. (a) The Kansas racing and gaming commission and its

15
  1       designated employees may observe and inspect all electronic gaming fa-
  2       cilities operated by licensees.
  3             (b) The Kansas racing and gaming commission may examine, or cause
  4       to be examined by any agent or representative designated by the com-
  5       mission, any books, papers, records or memoranda of any licensee, or of
  6       any racetrack or business involved in electronic gaming for the purpose
  7       of ascertaining compliance with any provision of this act or any rule and
  8       regulation adopted hereunder.
  9             (c) The Kansas racing and gaming commission may adopt rules and
10       regulations with respect to security, safety and honest conduct at all par-
11       imutuel licensee locations.
12             (d) The Kansas racing and gaming commission shall have the power
13       to investigate alleged violations of this act and any rules and regulations,
14       orders and final decisions of the commission.
15             (e) The Kansas racing and gaming commission shall have the power
16       to authorize security measures required in any areas where electronic
17       gaming machines are located.
18             (f) The Kansas racing and gaming commission shall have the power
19       to take any other action as may be reasonable or appropriate to enforce
20       the provisions of this act and any rules and regulations, orders and final
21       decisions of the commission.
22        (g) The Kansas racing and gaming commission shall require an
23       annual audit of the electronic gaming machine operations of each
24       lottery gaming machine operator contracting with the Kansas lot-
25       tery. Such audit shall be conducted by a licensed accounting firm
26       approved by the Kansas racing and gaming commission. Such audit
27       shall be conducted at the expense of the lottery gaming machine
28       operator to which such audit applies.
29             (h) Following completion of three years from the date upon
30       which electronic gaming machines begin operation by each lottery
31       gaming machine operator pursuant to contract with the Kansas lot-
32       tery, the Kansas racing and gaming commission shall prepare an
33       economic impact report for the Kansas legislature detailing the
34       costs and benefits of lottery gaming machine operations. The report
35       shall be filed with the president of the senate and speaker of the
36       house prior to the first legislative session following completion of
37       the report. Such report shall include information on the use or dis-
38       tribution of net and gross machine income received from the elec-
39       tronic gaming machine operations of each lottery gaming machine
40       operator, including comparable electronic gaming machine opera-
41       tions in states within as close proximity to Kansas as possible, com-
42       petitive market analysis, tax benefits, payroll, capital investment
43       and such other matters that the Kansas racing and gaming commis-

16
  1       sion may require. The Kansas racing and gaming commission may
  2       contract for the services of such independent professionals as may
  3       be required to complete such report. Expenses for such report shall
  4       be paid pursuant to appropriation from the electronic gaming ma-
  5       chine operation and regulatory fund.
  6             New Sec.  22. (a) It is a class A nonperson misdemeanor for any mem-
  7       ber, employee or appointee of the lottery commission or the Kansas rac-
  8       ing and gaming commission, including stewards and racing judges, to
  9       knowingly:
10             (1) participate in the operation of or have a financial interest in any
11       business which has been issued a concessionaire license, racing or wa-
12       gering or electronic gaming machine equipment or services license, fa-
13       cility owner license or facility manager license, or any business which sells
14       goods or services to an organization licensee;
15             (2) participate directly or indirectly as an owner, operator, manager
16       or consultant in electronic gaming in Kansas;
17             (3) place a wager on or bet or play an electronic gaming machine at
18       a parimutuel licensee location in Kansas;
19             (4) accept any compensation, gift, loan, entertainment, favor or serv-
20       ice from any licensee, except such suitable facilities and services within a
21       racetrack facility operated by an organization licensee as may be required
22       to facilitate the performance of the member's, employee's or appointee's
23       official duties;
24             (5) enter into any business dealing, venture or contract with an owner
25       or lessee of a parimutuel licensee location in Kansas; or
26             (6) engage in any activity described in subsection (1), (2), (4) or (5)
27       within two years from the last day of service as such member, employee
28       or appointee.
29             (b) It is a class A nonperson misdemeanor for any member, employee
30       or appointee of the Kansas racing and gaming commission, including
31       stewards and racing judges, to knowingly violate any of the provisions of
32       subsection (a).
33             (c) It is a severity level 8, nonperson felony for any person playing or
34       using any electronic gaming machine at a parimutuel licensee location in
35       Kansas to:
36             (1) Knowingly use other than a lawful coin or legal tender of the
37       United States of America, or to use coin not of the same denomination
38       as the coin intended to be used in an electronic gaming machine, except
39       that in the playing of any electronic gaming machine or similar gaming
40       device, it shall be lawful for any person to use gaming billets, tokens or
41       similar objects therein which are approved by the lottery commission;
42             (2) to knowingly possess or use, while on the premises of a parimutuel
43       licensee location any cheating or thieving device, including but not limited

17
  1       to, tools, wires, drills, coins attached to strings or wires or electronic or
  2       magnetic devices to facilitate removing from any electronic gaming ma-
  3       chine any money or contents thereof, except that a duly authorized em-
  4       ployee of the lottery commission, Kansas racing and gaming commission
  5       or a parimutuel licensee may possess and use any of the foregoing only
  6       in furtherance of the employee's employment at the parimutuel licensee
  7       location; or
  8             (3) to knowingly possess or use while on the premises of any pari-
  9       mutuel licensee location any key or device designed for the purpose of
10       or suitable for opening or entering any electronic gaming machine or
11       similar gaming device or drop box, except that a duly authorized employee
12       of the lottery commission, Kansas racing and gaming commission or a
13       parimutuel licensee may possess and use any of the foregoing only in
14       furtherance of the employee's employment at the parimutuel licensee
15       location.
16             New Sec.  23. (a) No organization licensee or facility manager li-
17       censee shall permit any business not owned and operated by the organ-
18       ization licensee to provide electronic gaming machine equipment or serv-
19       ices, as designated by the Kansas racing and gaming commission, to an
20       organization licensee unless such business has been issued an electronic
21       gaming machine equipment or services license by the Kansas racing and
22       gaming commission. Such equipment and services include but are not
23       limited to surveillance, electronic computer components, random num-
24       ber generator or cabinet thereof and token redemption equipment or
25       services.
26             (b) Businesses required to be licensed pursuant to this section shall
27       apply for electronic gaming machine equipment or services licenses in a
28       manner and upon forms prescribed and furnished by the Kansas racing
29       and gaming commission. The Kansas racing and gaming commission shall
30       require disclosure of information about the owners and officers of each
31       applicant and may require such owners and officers shall require such
32       owners, officers and employees to submit to fingerprinting. The Kansas
33       racing and gaming commission also may require disclosure of information
34       about and fingerprinting of such employees of each applicant as the Kan-
35       sas racing and gaming commission considers necessary. Electronic gaming
36       machine equipment or services licenses shall be issued for a period of
37       time established by the Kansas racing and gaming commission but not to
38       exceed 10 years. The Kansas racing and gaming commission shall establish
39       a schedule of application fees and license fees for racing or wagering or
40       electronic gaming machine equipment or services licenses based upon
41       the type and size of business. The application fee shall not be refundable
42       if the business fails to qualify for a license. If the application fee is insuf-
43       ficient to pay the reasonable expenses of processing the application and

18
  1       investigating the applicant's qualifications for licensure, the Kansas racing
  2       and gaming commission shall require the applicant to pay to the Kansas
  3       racing and gaming commission, at such times and in such form as required
  4       by the Kansas racing and gaming commission, any additional amounts
  5       necessary to pay such expenses. No license shall be issued to an applicant
  6       until the applicant has paid such additional amounts in full, and such
  7       amounts shall not be refundable except to the extent that they exceed the
  8       actual expenses of processing the application and investigating the appli-
  9       cant's qualifications for licensure.
10             (c) The Kansas racing and gaming commission may require applicants
11       as a condition of licensure to consent to allow agents of the Kansas bureau
12       of investigation or security personnel of the Kansas racing and gaming
13       commission to search without warrant the licensee's premises and per-
14       sonal property and the persons of its owners, officers and employees while
15       engaged in the licensee's business within the racetrack facility or adjacent
16       facilities under the control of the organization licensee for the purpose
17       of investigating criminal violations of this act or violations of rules and
18       regulations of the Kansas racing and gaming commission.
19             (d) Denial of an electronic gaming machine equipment or services
20       license by the Kansas racing and gaming commission shall be in accord-
21       ance with the Kansas administrative procedure act. The Kansas racing
22       and gaming commission may refuse to issue an electronic gaming machine
23       equipment or services license to any business if any person having an
24       ownership interest in such business, any person who is an officer of such
25       business or any person employed by such business within the racetrack
26       facility:
27             (1) Has been convicted of a felony in a court of any state or of the
28       United States or has been adjudicated in the last five years, in any such
29       court of committing as a juvenile an act which, if committed by an adult,
30       would constitute a felony or has been convicted of two or more acts
31       of violence in the last five years in a court of competent jurisdiction
32       of a state, U.S. territory or the United States;
33             (2) has been convicted of a violation of any law of any state or of the
34       United States involving gambling or controlled substances or has been
35       adjudicated in the last five years in any such court of committing as a
36       juvenile an act which, if committed by an adult, would constitute such a
37       violation;
38             (3) fails to disclose any material fact or provides information, knowing
39       such information to be false, in connection with the application for the
40       license;
41             (4) has been found by the Kansas racing and gaming commission to
42       have violated any provision of this act or any rule and regulation of the
43       Kansas racing and gaming commission; or

19
  1             (5) has failed to meet any monetary or tax obligation to the federal
  2       government or to any state or local government.; or
  3             (6) has had any occupation or gaming license revoked, sus-
  4       pended or denied.
  5             (e) The Kansas racing and gaming commission may suspend or re-
  6       voke the electronic gaming machine equipment or services license of any
  7       business for any reason which would justify refusal to issue such a license.
  8       Proceedings to suspend or revoke such license shall be conducted by the
  9       Kansas racing and gaming commission or its appointed hearing officer in
10       accordance with the provisions of the Kansas administrative procedure
11       act.
12             (f) The Kansas racing and gaming commission may provide by rules
13       and regulations for the temporary suspension of an electronic gaming
14       machine equipment or services license by summary adjudicative pro-
15       ceedings in accordance with the Kansas administrative procedure act
16       upon finding that there is probable cause to believe that grounds exist for
17       a permanent suspension or revocation of such license. Such suspension
18       shall be for a period not exceeding 30 days. Upon expiration of such
19       suspension, the license shall be restored unless the license has been sus-
20       pended or revoked as a result of proceedings conducted pursuant to sub-
21       section (e).
22             (g) The Kansas racing and gaming commission may provide by rules
23       and regulations for the licensure of key gaming employees which rules
24       and regulations may specify employment application forms, fees and pro-
25       cedures for suspension or revocation of any key gaming employee license.
26             New Sec.  24. No taxes, fees, charges, transfers or distributions, other
27       than those provided for in this act, shall be made or levied from or against
28       the net machine income of the Kansas lottery by any city, county or other
29       municipality.
30             New Sec.  25. Each lottery gaming machine operator shall hold the
31       executive director of the Kansas lottery, the Kansas lottery commission,
32       the executive director of the Kansas racing and gaming commission and
33       the Kansas racing and gaming commission and the state harmless from
34       and defend and pay for the defense of any and all claims which may be
35       asserted against the executive director, the commission, the executive
36       director of the Kansas racing and gaming commission, the Kansas racing
37       and gaming commission, the state or the employees thereof, arising from
38       electronic gaming machines located at the parimutuel licensee location
39       of that lottery gaming machine operator. The provisions of this section
40       shall not apply to any claims arising from the negligence or willful mis-
41       conduct of the executive director, the commission, the executive director
42       of the Kansas racing and gaming commission, the Kansas racing and gam-
43       ing commission, the state or the employees thereof.

20
  1             Sec.  26. K.S.A. 1999 Supp. 19-101a is hereby amended to read as
  2       follows: 19-101a. (a) The board of county commissioners may transact all
  3       county business and perform all powers of local legislation and adminis-
  4       tration it deems appropriate, subject only to the following limitations,
  5       restrictions or prohibitions:
  6             (1) Counties shall be subject to all acts of the legislature which apply
  7       uniformly to all counties.
  8             (2) Counties may not consolidate or alter county boundaries.
  9             (3) Counties may not affect the courts located therein.
10             (4) Counties shall be subject to acts of the legislature prescribing
11       limits of indebtedness.
12             (5) In the exercise of powers of local legislation and administration
13       authorized under provisions of this section, the home rule power con-
14       ferred on cities to determine their local affairs and government shall not
15       be superseded or impaired without the consent of the governing body of
16       each city within a county which may be affected.
17             (6) Counties may not legislate on social welfare administered under
18       state law enacted pursuant to or in conformity with public law No. 271--
19       74th congress, or amendments thereof.
20             (7) Counties shall be subject to all acts of the legislature concerning
21       elections, election commissioners and officers and their duties as such
22       officers and the election of county officers.
23             (8) Counties shall be subject to the limitations and prohibitions im-
24       posed under K.S.A. 12-187 to 12-195, inclusive, and amendments thereto,
25       prescribing limitations upon the levy of retailers' sales taxes by counties.
26             (9) Counties may not exempt from or effect changes in statutes made
27       nonuniform in application solely by reason of authorizing exceptions for
28       counties having adopted a charter for county government.
29             (10) No county may levy ad valorem taxes under the authority of this
30       section upon real property located within any redevelopment area estab-
31       lished under the authority of K.S.A. 12-1772, and amendments thereto,
32       unless the resolution authorizing the same specifically authorized a por-
33       tion of the proceeds of such levy to be used to pay the principal of and
34       interest upon bonds issued by a city under the authority of K.S.A. 12-
35       1774, and amendments thereto.
36             (11) Counties shall have no power under this section to exempt from
37       any statute authorizing or requiring the levy of taxes and providing sub-
38       stitute and additional provisions on the same subject, unless the resolution
39       authorizing the same specifically provides for a portion of the proceeds
40       of such levy to be used to pay a portion of the principal and interest on
41       bonds issued by cities under the authority of K.S.A. 12-1774, and amend-
42       ments thereto.
43             (12) Counties may not exempt from or effect changes in the provi-

21
  1       sions of K.S.A. 19-4601 to 19-4625, inclusive through 19-4625, and
  2       amendments thereto.
  3             (13) Except as otherwise specifically authorized by K.S.A. 12-1,101
  4       to 12-1,109, inclusive through 12-1,109, and amendments thereto, coun-
  5       ties may not levy and collect taxes on incomes from whatever source
  6       derived.
  7             (14) Counties may not exempt from or effect changes in K.S.A. 19-
  8       430, and amendments thereto. Any charter resolution adopted by a
  9       county prior to July 1, 1983, exempting from or effecting changes in
10       K.S.A. 19-430, and amendments thereto, is null and void.
11             (15) Counties may not exempt from or effect changes in K.S.A. 19-
12       302, 19-502b, 19-503, 19-805 or 19-1202, and amendments thereto.
13             (16)  (A) Counties may not exempt from or effect changes in K.S.A.
14       13-13a26, and amendments thereto. Any charter resolution adopted by a
15       county, prior to the effective date of this act, exempting from or effecting
16       changes in K.S.A. 13-13a26, and amendments thereto, is null and void.
17             (B) This provision shall expire on June 30, 2003.
18             (17)  (A) Counties may not exempt from or effect changes in K.S.A.
19       71-301 71-301a, and amendments thereto. Any charter resolution
20       adopted by a county, prior to the effective date of this act, exempting
21       from or effecting changes in K.S.A. 71-301, and amendments thereto, is
22       null and void.
23             (B) This provision shall expire on June 30, 2003.
24             (18) Counties may not exempt from or effect changes in K.S.A. 19-
25       15,139, 19-15,140 and 19-15,141, and amendments thereto. Any charter
26       resolution adopted by a county prior to the effective date of this act,
27       exempting from or effecting changes in such sections is null and void.
28             (19) Counties may not exempt from or effect changes in the provi-
29       sions of K.S.A. 12-1223, 12-1225, 12-1225a, 12-1225b, 12-1225c and 12-
30       1226, and amendments thereto, or the provisions of K.S.A. 1999 Supp.
31       12-1260 to 12-1270, inclusive through 12-1270 and 12-1276, and amend-
32       ments thereto, and 12-1276, and amendments thereto.
33             (20) Counties may not exempt from or effect changes in the provi-
34       sions of K.S.A. 19-211, and amendments thereto.
35             (21) Counties may not exempt from or effect changes in the provi-
36       sions of K.S.A. 19-4001 to 19-4015, inclusive through 19-4015, and
37       amendments thereto.
38             (22) Counties may not regulate the production or drilling of any oil
39       or gas well in any manner which would result in the duplication of reg-
40       ulation by the state corporation commission and the Kansas department
41       of health and environment pursuant to chapter 55 and chapter 65 of the
42       Kansas Statutes Annotated and any rules and regulations adopted pur-
43       suant thereto. Counties may not require any license or permit for the

22
  1       drilling or production of oil and gas wells. Counties may not impose any
  2       fee or charge for the drilling or production of any oil or gas well.
  3             (23) Counties may not exempt from or effect changes in K.S.A. 79-
  4       41a04, and amendments thereto.
  5             (24) Counties may not exempt from or effect changes in K.S.A. 79-
  6       1611, and amendments thereto.
  7             (25) Counties may not exempt from or effect changes in K.S.A. 79-
  8       1494, and amendments thereto.
  9             (26) Counties may not exempt from or effect changes in subsection
10       (b) of K.S.A. 19-202, and amendments thereto.
11             (27) Counties may not exempt from or effect changes in subsection
12       (b) of K.S.A. 19-204, and amendments thereto.
13             (28) Counties may not levy or impose an excise, severance or any
14       other tax in the nature of an excise tax upon the physical severance and
15       production of any mineral or other material from the earth or water. Any
16       resolution adopted by any county prior to the effective date of this act
17       imposing or levying any such tax is null and void.
18             (29) Counties may not exempt from or effect changes in K.S.A. 79-
19       2017 or 79-2101, and amendments thereto. Any charter resolution
20       adopted prior to the effective date of this act, which affected the provi-
21       sions of K.S.A. 79-2017 or 79-2101, and amendments thereto, is hereby
22       declared to be null and void.
23             (30) Counties may not exempt from or effect changes in K.S.A. 2-
24       3302, 2-3305, 2-3307, 17-5904, 17-5908, 47-1219 or 65-171d or K.S.A.
25       1999 Supp. 2-3318, 17-5909 or 65-1,178 through 65-1,199, and amend-
26       ments thereto.
27             (31) Counties may not exempt from or effect changes in K.S.A. 1999
28       Supp. 80-121, and amendments thereto.
29             (32) Counties may not exempt from or effect changes in K.S.A. 74-
30       8701 et seq., 74-8801 et seq. or section 2 et seq., and amendments thereto.
31             (b) Counties shall apply the powers of local legislation granted in
32       subsection (a) by resolution of the board of county commissioners. If no
33       statutory authority exists for such local legislation other than that set forth
34       in subsection (a) and the local legislation proposed under the authority
35       of such subsection is not contrary to any act of the legislature, such local
36       legislation shall become effective upon passage of a resolution of the
37       board and publication in the official county newspaper. If the legislation
38       proposed by the board under authority of subsection (a) is contrary to an
39       act of the legislature which is applicable to the particular county but not
40       uniformly applicable to all counties, such legislation shall become effec-
41       tive by passage of a charter resolution in the manner provided in K.S.A.
42       19-101b, and amendments thereto.
43             (c) Any resolution adopted by a county which conflicts with the re-

23
  1       strictions in subsection (a) is null and void.
  2             Sec.  27. K.S.A. 1999 Supp. 74-8723 is hereby amended to read as
  3       follows: 74-8723. (a) The Kansas lottery and the office of executive di-
  4       rector of the Kansas lottery, established by K.S.A. 74-8703, and amend-
  5       ments thereto, and the Kansas lottery commission, created by K.S.A. 74-
  6       8709, and amendments thereto, shall be and hereby are abolished on July
  7       1, 2002 2007.
  8             (b) This section shall be part of and supplemental to the Kansas lot-
  9       tery act. 
10       Sec.  28. K.S.A. 74-8702 and K.S.A. 1999 Supp. 19-101a, 19-101j and
11       74-8723 are hereby repealed.
12        Sec.  29. This act shall take effect and be in force from and after its
13       publication in the statute book.