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Minutes for HB2173 - Committee on Appropriations
Short Title
Amendments to the Kansas expanded lottery act relating to racetrack gaming facilities.
Minutes Content for Wed, May 10, 2017
Chairman Waymaster opened discussion on the bill. He stated that the hearing on the bill was held on March 23, 2017.
Jill Wolters, Office of the Revisor of Statutes, provided an overview of the bill brief, as was presented by Jason Long, Office of the Revisor of Statutes, on March 23, 2017 (Attachment 2). The bill creates a new law and makes various amendments regarding horse and greyhound racing in Kansas and Kansas lottery gaming at horse and greyhound racetracks.
Jill Wolters responded to questions from committee members. She reviewed procedures regarding state law violation and liability issues. It was noted that over the past several years various components of the bill have changed, and concern was expressed that certain aspects of the contract were not enforced. She noted that the courts would not issue an advisory opinion.
Representative Claeys made a motion for an amendment to the bill as contained in (Attachment 3). Representative Hoffman seconded the motion.
Jill Wolters, provided an overview on the amendment (See attachment 3). She stated that the first component of the amendment includes several whereas clauses which establishes legislative intent and a second component removes the escrow account and litigation cost reimbursement fund as they are no longer necessary. The amendment states that the Attorney General may file a quo warrento action in the Supreme Court within 90 days from the effective date of the act to approve the authority of the Lottery entering into the contract. The law suit may only be filed by the Attorney General and only filed in the Supreme Court. No action shall be deemed to have accrued for breach of any lottery gaming facility manager contract until the Lottery has entered into a contract with the racetrack gaming facility or the date of final order is issued in the Attorney General action, whichever is later. The parties then have 60 days from the date of the cause of action accrued to commence action. No claim for equitable relief including injunctive relief, maybe brought except by the Attorney General suit. The balloon also clarifies that racetrack gaming facility manager will add money into escrow in the amount of the accruing interest every six months. The provisions that each lottery gaming facility manager places $5 million in escrow is deleted and the provision that each lottery gaming facility manager pay litigation costs tot he racetrack gaming facility manager is deleted. Two sections were deleted regarding similar gaming facilities. Other amendments only moved items in the statute, they were not deleted, she added.
Jill Wolters responded to questions from committee members. She stated that appropriation of funds would be included in the Omnibus bill, with the removal of the Escrow Repayment and Litigation funds. Language was deleted that referenced racetrack gaming facilities are not similar to lottery gaming facilities, it was noted.
Discussion continued by committee members regarding the amendment.
Representative Claeys renewed the motion. Motion passed.
Discussion continued by committee members regarding litigation issues, impact on state owned casinos and economic development opportunities.
Representative Claeys made a motion to delete the contents of SB 61 and insert HB 2173 as amended. Representative Sutton seconded the motion.
Discussion followed by committee members regarding the motion. It was noted that if this motion passed as a substitute bill on the House floor, the bill would then go to the Senate for vote.
Representative Landwehr made a substitute motion regarding the inclusion of the smoking ban and requiring the racetrack gaming facility manager to reimburse the State for all the litigation costs and damages to the State and deleting the requirement that the racetrack gaming facility manager place money into escrow. Representative Lakin seconded the motion.
Discussion followed by committee members regarding the motion. Chairman Waymaster responded that the substitute motion could be divided into two separate substitute motions.
Representative Landwehr made a substitute motion to include the smoking ban in all casinos, as is current law for privately owned businesses. Representative Lakin seconded the motion.
Discussion followed by committee members regarding the substitute motion.
Representative Landwehr renewed the motion. Motion passed.
Representative Landwehr made a substitute motion that 100 percent of litigation costs and damages would be the responsibility of the owner of the gaming facility, which would be reimbursed to the state. Representative Lakin seconded the motion.
Discussion followed by committee members regarding liability concerns for the state.
Representative Landwehr renewed the motion. Motion failed.
Representative Claeys renewed the motion to delete the contents of SB 61 and add the contents of HB 2173 as amended and the substitute bill be passed. Motion failed.
Chairman Waymaster stated that there may be compromises that could be worked through in committee at the beginning of the 2018 session.
The meeting recessed at: 10:30 a.m.
The meeting reconvened at: 3:04 p.m.
Chairman Waymaster reconvened the meeting.
Representative Davis made a motion for a bill introduction which reconciles amendments to certain statutes which have been amended more than once during the prior legislative session. Representative Helgerson seconded the motion. Motion passed.
Chairman Waymaster opened continued discussion on the bill.
Representative Landwehr made a motion to table HB 2173. Representative Schroeder seconded the motion.
Discussion followed by committee members regarding the motion.
Representative Landwehr renewed the motion. Motion failed.
Discussion continued by committee members.
Representative Johnson made a motion for favorable passage of HB 2173 as amended. Representative Tarwater seconded the motion.
Discussion followed by committee members regarding statute and contract violations, state liability issues, competition within gaming and racing, lottery and casinos, additional state revenues, and job growth. Jill Wolters reviewed the statutes related to enforceable provisions on page 11, lines 22 through 34 of the bill. It was noted that expanded lottery became law in 2007.
Representative Johnson renewed the motion. Motion failed.
Chairman Waymaster stated that although the bill did not pass in committee, he encouraged continued discussion on the issues that were addressed in committee. Hopefully, both sides would reach a compromised agreement, for further discussion, in committee during the 2018 session.
Meeting adjourned at: 3:33 p.m.
