Brief (1)
As amended by the Senate Committee of the Whole, HB 2038 would continue the Kansas Lottery in existence until July 1, 2004. Under current law, the Kansas Lottery is scheduled for abolition on July 1, 2002.
The Senate Committee of the Whole amended HB 2038 to: reduce the Lottery extension period from 2008 to 2004; and require that the Executive Director of the Kansas Lottery not agree to any renewal or extension of a major procurement contract unless such renewal or extension is awarded in the manner provided in the Lottery Act.
The Senate Committee on Federal and State Affairs amended the provisions of SB 34 into HB 2038. SB 34 concerns security audits of the Kansas Lottery. The bill would amend existing statutes to: require a security audit of the Kansas Lottery at least once every three years; and place the responsibility for these security audits under the Legislative Post Audit Act. Current law requires that the Executive Director of the Kansas Lottery arrange for a periodic study and evaluation of all aspects of security in the operation of the Lottery. Under SB 34, Legislative Post Audit would become responsible for engaging a firm to conduct the security audits at least once every three years.
The House Committee of the Whole added two amendments to HB 2038 during floor debate. The first amendment would have created a new Airport Services Improvement Fund to be financed by $4.0 million in gaming revenue annually. The second amendment would have placed a number of limitations, restrictions, and prohibitions on the operation of the Kansas Lottery. The Senate Committee on Federal and State Affairs removed these two provisions.
Background
Testifying in support of extending the State Lottery (on either SB 22 or HB 2038) were the Executive Director of the Kansas Lottery, the Secretary of Commerce and Housing, the Executive Director of the State Board of Regents, and representatives of the Kansas Chamber of Commerce and Industry, the Wichita Area Chamber of Commerce, and other economic development organizations.
Kansans For Life at Its Best presented written testimony in opposition to extension of the Lottery. A representative of Stand Up for Kansas testified in support of the House floor amendment concerning restrictions on lottery operations.
SB 34 was recommended by the Contract Audit Committee and introduced by the Legislative Post Audit Committee. The Chairman of the Legislative Post Audit Committee and the Legislative Post Auditor testified in favor of the bill as a mechanism to provide better legislative oversight of the Lottery's security operations and to help ensure that the Lottery continues to be accountable and responsive. The Executive Director of the Kansas Lottery presented several proposed amendments for Committee consideration. The fiscal note prepared by the Budget Division indicates that the fiscal effect of SB 34 would depend on the cost of the auditor chosen to perform the security audit.
The fiscal note prepared by the Division of the Budget on the original version of HB 2038 indicated that abolition of the Kansas Lottery would result in a loss to the State Treasury of about $60 million annually.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi