Kansas Statutes 74-8741. Racetrack facility management contracts; requirements; contract shall not constitute property
(a) The executive director of the Kansas lottery shall negotiate a racetrack gaming facility management contract to place electronic gaming machines at one parimutuel licensee location in each gaming zone except the southwest Kansas gaming zone.
(b) To be eligible to enter into a racetrack gaming facility management contract the prospective racetrack gaming facility manager shall, at a minimum:
Terms Used In Kansas Statutes 74-8741
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Commission: means the Kansas lottery commission. See Kansas Statutes 74-8702
- Contract: A legal written agreement that becomes binding when signed.
- Electronic gaming machine: means any electronic, electromechanical, video or computerized device, contrivance or machine authorized by the Kansas lottery that, upon insertion of cash, tokens, electronic cards or any consideration, is available to play, operate or simulate the play of a game authorized by the Kansas lottery pursuant to the Kansas expanded lottery act, including, but not limited to, bingo, poker, blackjack, keno and slot machines, and that may deliver or entitle the player operating the machine to receive cash, tokens, merchandise or credits that may be redeemed for cash. See Kansas Statutes 74-8702
- Executive director: means the executive director of the Kansas lottery. See Kansas Statutes 74-8702
- Gaming zone: means : (1) The northeast Kansas gaming zone, which consists of Wyandotte county; (2) the southeast Kansas gaming zone, which consists of Crawford and Cherokee counties; (3) the south central Kansas gaming zone, which consists of Sedgwick and Sumner counties; and (4) the southwest Kansas gaming zone, which consists of Ford county. See Kansas Statutes 74-8702
- Garnishment: Generally, garnishment is a court proceeding in which a creditor asks a court to order a third party who owes money to the debtor or otherwise holds assets belonging to the debtor to turn over to the creditor any of the debtor
- Kansas lottery: means the state agency created by this act to operate a lottery or lotteries pursuant to this act. See Kansas Statutes 74-8702
- Lottery gaming facility: means that portion of a building used for the purposes of operating, managing and maintaining lottery facility games. See Kansas Statutes 74-8702
- Net electronic gaming machine income: means all cash or other consideration utilized to play an electronic gaming machine operated at a racetrack gaming facility, less all cash or other consideration paid out to winning players as prizes. See Kansas Statutes 74-8702
- Oversight: Committee review of the activities of a Federal agency or program.
- Parimutuel licensee: means a facility owner licensee or facility manager licensee under the Kansas parimutuel racing act. See Kansas Statutes 74-8702
- Person: means any natural person, association, limited liability company, corporation or partnership. See Kansas Statutes 74-8702
- Property: includes personal and real property. See Kansas Statutes 77-201
- Racetrack gaming facility: means that portion of a parimutuel licensee location where electronic gaming machines are operated, managed and maintained. See Kansas Statutes 74-8702
- Racetrack gaming facility management contract: means an agreement between the Kansas lottery and a racetrack gaming facility manager, negotiated and signed by the executive director on behalf of the state, for placement of electronic gaming machines owned and operated by the state at a racetrack gaming facility. See Kansas Statutes 74-8702
- Racetrack gaming facility manager: means a parimutuel licensee specifically certified by the Kansas lottery to become a certified racetrack gaming facility manager and offer electronic gaming machines for play at the racetrack gaming facility. See Kansas Statutes 74-8702
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Kansas Statutes 77-201
(1) Have sufficient access to financial resources to support the activities required of a racetrack gaming facility manager under the Kansas expanded lottery act; and
(2) be current in filing all applicable tax returns and in payment of all taxes, interest and penalties owed to the state of Kansas and any taxing subdivision where such prospective manager is located in the state of Kansas, excluding items under formal appeal pursuant to applicable statutes.
(c) A racetrack gaming facility management contract shall include:
(1) The term of the contract;
(2) provisions for the Kansas racing and gaming commission to oversee all racetrack gaming facility operations, including, but not limited to: Oversight of internal controls; oversight of security of facilities; performance of background investigations, determination of qualifications and any required certification or licensing of officers, directors, board members, employees, contractors and agents of the racetrack gaming facility manager; auditing of net electronic gaming machine income and maintenance of the integrity of electronic gaming machine operations;
(3) provisions for the racetrack gaming facility manager to pay the costs of oversight and regulation of the racetrack gaming facility manager under this act and such manager’s racetrack gaming facility operations by the Kansas racing and gaming commission; and
(4) enforceable provisions: (A) Prohibiting the state, until July 1, 2032, from (i) entering into management contracts for more than three [*] lottery gaming facilities or similar gaming facilities, one to be located in the northeast Kansas gaming zone, one to be located in the south central Kansas gaming zone [*] and one to be located in the southeast Kansas gaming zone, (ii) designating additional areas of the state where operation of lottery gaming facilities or similar gaming facilities would be authorized or (iii) operating an aggregate of more than 2,800 electronic gaming machines at all parimutuel licensee locations; and (B) requiring the state to repay to the racetrack gaming facility manager an amount equal to the privilege fee paid by such racetrack gaming facility manager, plus interest on such amount, compounded annually at the rate of 10%, if the state violates the prohibition provision described in (A).
(d) Racetrack gaming facility management contracts authorized by this section may include provisions relating to:
(1) Accounting procedures to determine net electronic gaming machine income, unclaimed prizes and credits;
(2) minimum requirements for a racetrack gaming facility manager to provide qualified oversight, security and supervision of electronic gaming machines including the use of qualified personnel with experience in applicable technology;
(3) eligibility requirements for employees, contractors or agents of a racetrack gaming facility manager who will have responsibility for or involvement with electronic gaming machines or for the handling of cash or tokens;
(4) background investigations to be performed by the Kansas racing and gaming commission;
(5) credentialing or certification requirements of any employee, contractor or agent as provided by the Kansas expanded lottery act or rules and regulations adopted pursuant thereto;
(6) provision for termination of the management contract by either party for cause; and
(7) any other provision deemed necessary by the parties, including such other terms and restrictions as necessary to conduct racetrack gaming facility operations in a legal and fair manner.
(e) A person who is the manager of a lottery gaming facility in a gaming zone shall not be eligible to be the manager of the racetrack gaming facility in the same zone.
(f) A racetrack gaming facility management contract shall not constitute property, nor shall it be subject to attachment, garnishment or execution, nor shall it be alienable or transferable, except upon approval by the executive director, nor shall it be subject to being encumbered or hypothecated.