K.A.R. Agency 112 | Kan. Admin. Regs. Agency 112 — Kansas Racing and Gaming Commission

Article 3 Application Procedure

Kan. Admin. Regs. § 112-3-1 Application procedure for organization applicant

(a) Any qualified nonprofit organization as defined by K.S.A. 1987 Supp. 74-8802 (m) may apply to the commission for an organization license to conduct horse races or greyhound races, or both, on which parimutuel wagering is permitted.

(b) Each application shall be completed upon a form provided by the commission. The completed form shall accompany the application or applications of a facility owner applicant, a facility manager applicant, or both, with whom the organization applicant has contracted or proposes to contract concerning the racetrack facility.

(c) Each application and any attached documents required by these regulations shall be submitted as a single package. An original and six copies of the application and documents shall be filed with the executive director at the commission offices. One additional copy shall be mailed to each commissioner at the address on file at the commission office. Each application shall be verified under oath by the authorized officer or officers of the applicant, and all copies shall be manually signed in ink.

(d) Applications shall be filed with the commission not later than 120 calendar days prior to the first performance of the race meet the applicant proposes to conduct.

(e) Each license shall be granted upon the condition that the holder and each of its officers, directors, employees and agents shall accept, observe and enforce the regulations of the commission.

(f) If the applicant proposes to construct or own a racetrack facility, a deposit as required by K.S.A. 1987 Supp. 74-8813 (b) shall be paid in addition to the application fee and submitted with the application. The fee and deposit shall be paid in the form of a certified check or bank draft. Each applicant that is granted an organization license shall pay a license fee as provided by K.S.A. 1987 Supp. 74-8813 (g) in the form of a certified check or bank draft that shall be paid to the executive director within 60 days after the granting of applicant's license.

(g) This regulation shall take effect on and after October 1, 1988.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8813; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-2 Application form for organization applicant

(a) Each application for an organization license shall contain the following:

(1) The name of the applicant, the business address and telephone number or numbers;

(2) the name, address and telephone number of any individual who assisted the applicant in preparing its application along with a precise description of the application section for which the individual provided assistance;

(3) irrevocable affidavit and consent statements; information waivers; affidavits relating to substance addiction; waivers of claims for damages for adverse public notice, embarrassment, criticism or other circumstance including financial loss that may result from commission action on the application; and personal background disclosure forms from all officers, directors, employees and agents of the applicant;

(4) one copy of each contract and agreement that the applicant has executed or proposes to execute and any modification or proposed modification of each contract or agreement. If the contract or agreement is an oral one, a written statement explaining the substance of the oral agreement shall be included;

(5) the names and addresses of the parties to each contract or agreement identified in subsection (4) and any relationship of the parties to the applicant, the partners, associates, officers, directors and principal owners either through family, business association or other control.

(b) The application for a license to conduct horse racing or greyhound racing, or both, with parimutuel wagering and to construct or own a racetrack facility, or both, and to manage a racetrack facility shall contain verified responses to inquiries about the following in the order they appear below:

(1) Corporate structure and control of applicant information required by K.A.R. 112-3-7;

(2) site and physical plant information required by K.A.R. 112-3-9;

(3) financing and development information required by K.A.R. 112-3-10;

(4) racing operation and parimutuel wagering information required by K.A.R. 112-3-11;

(5) management of racetrack facility information required by K.A.R. 112-3-12;

(6) economic, demographic and other information required by K.A.R. 112-3-13; and

(7) public safety and security information required by K.A.R. 112-3-14.

(c) The application for a license to conduct horse racing or greyhound racing, or both, with parimutuel wagering and to construct or own a racetrack facility, or both, shall contain verified responses to inquiries in subsection (b)(1), (2), (3), (4) and (6).

(d) The application for a license to conduct horse racing or greyhound racing, or both, with parimutuel wagering and to manage a racetrack facility shall contain verified responses to inquiries in subsection (b)(1), (4), (5) and (7).

(e) The application for a license to conduct horse racing or greyhound racing, or both, with parimutuel wagering shall contain verified responses to inquiries in subsection (b)(1) and (4).

(f) Each exhibit, statement, report, paper or other document submitted in support of the application shall be current, accurate and complete. Any change shall be reported immediately to the commission during the period of application or licensure. At all times, a current copy of the documents supporting the application shall be recorded in the commission office.

(g) This regulation shall take effect on and after October 1, 1988.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8813; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-3 Application procedure for facility owner applicant

(a) A facility owner applicant as defined by K.S.A. 1987 Supp. 74-8815

(a) may apply to the commission to construct or own a racetrack facility, or both.

(b) Each application shall be completed upon a form provided by the commission. The completed form shall accompany the application of the organization licensee with whom the facility owner has contracted or proposes to contract concerning the racetrack facility.

(d) Applications shall be filed with the commission not later than 120 calendar days prior to the first performance of the race meet to be held at the racetrack facility.

(e) Each license shall be granted upon the condition that the holder and each of its officers, directors, employees and agents shall accept, observe and enforce the regulations of the commission.

(f) The application fee and the deposit required by K.S.A. 1987 Supp. 74-8815 (c), (d) shall be paid in the form of a certified check or bank draft and shall be submitted with the application form.

(g) This regulation shall take effect on and after October 1, 1988.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8815; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-4 Application form for facility owner applicant

(a) Each application for a facility owner license shall contain the following information:

(1) The name of the applicant, the business address and telephone number or numbers;

(3) verified responses regarding the following subjects in the order they appear below:

(A) Business structure and control of applicant information required by K.A.R. 112-3-8;

(B) site and physical plant information required by K.A.R. 112-3-9;

(D) economic, demographic and other information required by K.A.R. 112-3-13;

(4) irrevocable affidavit and consent statements; information waivers; affidavits relating to substance addiction; waivers of claims for damages for adverse public notice, embarrassment, criticism or other circumstance including financial loss that may result from commission action on the application; and personal background disclosure forms from all officers, directors, employees and agents of the applicant;

(5) copies of each contract and agreement that the applicant has executed or proposes to execute and any modification or proposed modification of each contract or agreement. If the contract or agreement is an oral one, a written statement explaining the substance of the oral agreement shall be included; and

(6) the names and addresses of the parties to any contract or agreement identified in paragraph (5) and the relationship to the applicant, the partners, associates, officers, directors and principal owners either through family, business association or other control.

(b) Each exhibit, statement, report, paper or other document submitted in support of the application shall be current, accurate and complete. The applicant shall report immediately any change in information submitted to the commission during the period of application or licensure. At all times, a current copy of the documents supporting the application shall be recorded in the commission office.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8815; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-5 Application procedure for facility manager applicant

(a) A facility manager applicant as defined by K.S.A. 1987 Supp. 74-8815 (b) may apply to the commission for a license to manage a racetrack facility.

(b) Each application shall be completed upon a form provided by the commission. The completed form shall accompany the application of the organization licensee with whom the facility manager applicant has contracted or proposes to contract concerning the racetrack facility.

(d) Applications shall be filed with the commission not later than 120 calendar days prior to the first performance of the race meet to be held at the racetrack facility.

(e) Each license shall be granted upon the condition that the holder and each of its officers, directors, employees and agents shall accept, observe, and enforce the regulations of the commission.

(f) The application fee required by K.S.A. 1987 Supp. 74-8815 (c) shall be paid in the form of a certified check or bank draft and shall be submitted with the application form.

(g) This regulation shall take effect on and after October 1, 1988.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8815; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-6 Application form for facility manager applicant

(a) Each application for a facility manager license shall contain the following information:

(1) The name of the applicant, the business address and telephone number or numbers;

(2) the name, address, and telephone number of any individual who assisted the applicant in preparing its application along with a precise description of the application section for which the individual provided assistance;

(3) verified responses regarding the following subjects in the order they appear below:

(A) Business structure and control of applicant information required by K.A.R. 112-3-8;

(B) management of the racetrack facility information required by K.A.R. 112-3-12; and

(5) one copy of each contract and agreement that the applicant has executed or proposes to execute and any modification or proposed modification of each contract or agreement. If the contract or agreement is an oral one, a written statement explaining the substance of the oral agreement shall be included;

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8815; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-7 Corporate structure and control of organization license applicant

Each application for an organization license shall contain the following information about the corporate or association structure and control of the applicant and any organization related to the applicant:

(a) The application shall list any commercial or noncommercial names used by the applicant and the street, number, city and county of the corporation's registered office in this state and the name of the resident agent at that address. A list of the applicant's current telephone number or numbers shall be included.

(b) The application shall describe the applicant's corporate structure. The description shall state the year the corporation was organized and the state in which it was organized.

(c) The application shall contain a certified copy of the applicant's articles or incorporation and bylaws. Any amendments to the articles of incorporation or bylaws shall be filed immediately with the commission, so that, at all times, a current copy of the applicant's articles of incorporation, bylaws and amendments to them will be recorded in the commission office.

(d) The application shall state whether in the past five years the applicant has been reorganized or reincorporated or whether it has filed restated articles of incorporation in the state of Kansas or in any other state. Documentation of that action shall be attached to the application.

(e) The application shall include a copy of the applicant's tax returns from the previous five years or all tax returns if the applicant has been organized for less than five years.

(f) If the applicant's articles of incorporation authorize issuance of capital stock, the application shall state the classes of capital stock authorized, the amount authorized and the amount outstanding as of a date not less than 15 days prior to the date the application is filed.

(g) If the applicant is authorized to issue capital stock, the application shall state the name and address of each person or entity who owns, of record or beneficially, one or more shares of any class of capital stock or an option or conditional interest in the applicant. This information may be displayed in columnar forms providing for name and address, class of stock owned, type of ownership, whether of record or beneficial, amount owned, and percent of the class of stock.

(h) If the applicant is authorized to issue capital stock, the application shall describe briefly the terms of any voting trust or power in which any of the capital stock is held and the name, address, class of stock and number of shares of stock for all stock held by that voting trust or power.

(i) If the applicant corporation is authorized to issue capital stock, the application shall describe briefly the terms of any proxy by which any of the capital stock is held, the holder of the proxy and the name, address, class of stock and number of shares of stock for all stock held by such proxy.

(j) If the applicant corporation is a non-stock corporation, the application shall describe briefly the terms of any proxy or any voting power and the name and address of any holder of the proxy or voting powers.

(k) The application shall state any redemption, purchase, retirement, conversion or exchange provisions. If the rights of holders of stock affected by such provisions may be modified by a means other than a majority vote or more of the shares outstanding, voting as a class, a statement and explanation shall be included.

(l) The application shall list the names, including any aliases or previous names, of all directors and officers of the applicant and all persons chosen to become directors or officers. Personal background disclosure forms shall be furnished for each person named using forms provided by the commission. All positions and offices each director and officer has held with the applicant and all principal occupation or occupations each director or officer has held during the past five years shall be identified. The applicant shall disclose for each listed individual the nature and extent of any ownership interest, including options or other voting powers, whether absolute or contingent, that the individual holds in the applicant organization.

(m) If the applicant was organized within the past five years, the application shall state the following information:

(1) The names of the organization's organizers or promoters;

(2) the nature and amount of anything of value received or to be received by each organizer or promoter directly or indirectly from the applicant; and

(3) the nature and amount of any assets, services or other consideration received or to be received by the applicant from the organizers or promoters.

(n) The application shall list any governmental, public or quasi-governmental or business organization related to the applicant. The percentage of voting interest or other interest held by each related organization, or any other basis of control held by it shall be stated.

(o) The application shall state whether the applicant is directly or indirectly controlled to any extent or in any manner by another individual or entity. If so, the identity of the controlling entity shall be disclosed and the nature and extent of the control shall be described. Documentation of the relationship shall be attached to the application.

(p) If a nonindividual record or beneficial holder of an ownership or other voting interest of three percent or more in the applicant is identified in subsections (l), (m), and (o) above, the application shall disclose the information required by those paragraphs as to record or beneficial holders of an ownership or other voting interest of three percent or more in that nonindividual holder. The disclosure required by those paragraphs shall be repeated in turn until all indirect individual record and beneficial holders of ownership or other voting interest in the applicant are so identified. The disclosure shall be brought about by the best efforts of the applicant.

(q) The application shall include the balance sheets and profit and loss statements for each of the three fiscal years immediately preceding the application, or for the period of organization if less than three years. The financial information shall be given for the current fiscal year if the applicant has:

(1) not completed a full fiscal year since its organization; or

(2) acquires or is to acquire the majority of its assets from a predecessor within the current fiscal year. Balance sheets, profit and loss statements and all other financial statements required shall be prepared, audited and certified by independent, certified public accountants in accordance with generally accepted accounting procedures and practices accepted on a consistent basis. Any report containing exceptions of a material nature shall not be considered to be certified.

(r) The application shall identify all loans made by the applicant in excess of one percent of net income. The statement shall describe fully the terms of the loan, including but not limited to the name of the borrower, the amount of the loan and the nature and value of the collateral.

(s) The application shall state whether three percent or more of the applicant's assets, or three percent or more of any principal stockholder's stock, is encumbered by any long term debt. The long term debt shall be explained fully by stating the names and addresses of parties holding any evidences of indebtedness from the applicant and the stockholders. One copy of each agreement or any other document relating to the evidences of indebtedness shall be attached to the application.

(t) The application shall briefly describe any pending legal proceeding to which the applicant or any subsidiaries or related organizations are a party. The name of the court or agency in which any proceeding is pending, the date instituted and the principal parties involved shall be included.

(u) The application shall briefly describe any pending legal proceeding involving the property of the applicant, subsidiaries or related organizations. The name of the court or agency in which any proceeding is pending, the date instituted and the principal parties involved shall be included.

(v) The application shall state whether the applicant, or any director, officer, policy-maker manager, principal stockholder or member has owned any interest in any firm, partnership, association or corporation licensed by the commission, or is now engaged in the business of racing outside of the state of Kansas. An explanation of the circumstances surrounding the interest or participation shall be included.

(w) The application shall describe briefly and state the approximate amount of any interest, direct or indirect, of any officer, director or principal stockholder of the applicant, or any associate of any of the foregoing persons in any transactions during the last three years, or in any proposed transactions to which the applicant was or is to be a party.

(x) The application shall include a statement of good standing from the secretary of state.

(y) This regulation shall take effect on and after October 1, 1988.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8810 and 74-8813; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-8 Business structure and control of facility owner applicant or facility manager applicant

Each application for a facility owner license or a facility manager license shall contain the following information about the business structure and control of the applicant and any organization related to the applicant:

(a) The application shall state whether the applicant is a person, partnership, corporation, association, the state of Kansas or a political subdivision.

(b) The applicant shall list any commercial or noncommercial names used by the applicant, the business address or addresses and business telephone number or numbers. If the applicant is a corporation or limited partnership, the street, number, city and county of the corporation's registered office in this state and the name of the resident agent at that address shall be shown.

(c) The application shall include a copy of the applicant's tax returns for each of the five calendar years immediately preceding this application or all tax returns if the applicant has been organized for less than five years.

(d) The application shall include a copy of the balance sheets and profit and loss statements for each of the three fiscal years immediately preceding this application, or for the period of organization if less than three years. The financial information shall be given for the current fiscal year if the applicant:

(1) Has not completed a full fiscal year since the organization of the business; or

(2) acquires or is to acquire the majority of its assets from a predecessor within the current fiscal year. Balance sheets, profit and loss statements, and all other financial statements required shall be prepared, audited and certified by independent, certified public accountants in accordance with generally accepted accounting procedures and practices accepted on a consistent basis. Each report containing exceptions of a material nature shall not be certified.

(e) The application shall identify all loans made by the applicant in excess of one percent of net income. The statement shall include the name of the borrower, the amount of the loan, amount and type of collateral and terms for repayment and duration of the loan.

(f) The application shall briefly describe all pending legal proceedings to which the applicant, applicant's subsidiaries or related organizations are a party. The name of the court or agency in which the proceedings are pending, the date instituted and the principal parties involved shall be included.

(g) The application shall briefly describe all pending legal proceedings involving any of the property of the applicant, applicant's subsidiaries or related organizations. The name of the court or agency in which the proceedings are pending, the date instituted and the principal parties involved shall be included.

(h) If the applicant was organized within the past five years, the following information shall be stated:

(1) The names of the organizers or promoters with a voting interest or ownership of three percent or more;

(2) the nature and amount of anything of value received or to be received by the organizers or promoters directly or indirectly from the applicant; and

(3) the nature and amount of any assets, services or other consideration received or to be received by the applicant from the organizers or promoters. The applicant shall make the best effort to disclose the information required in subsection (h)(1).

(i) The application shall list any governmental, public, quasi-governmental or business organizations related to the applicant. The list shall state, for each related organization, the percentage of voting interest or other interest held, or any other basis of control held by the related organization.

(j) The application shall state whether the applicant is directly or indirectly controlled to any extent or in any manner by another individual or entity with a voting interest or ownership of three percent or more. The applicant shall make the best effort to disclose the information required.

(k) The application shall disclose the identity of any controlling entity with a voting interest or ownership of three percent or more and a description of the nature and extent of the control. The applicant shall make the best effort to disclose the information required. Documentation of the relationship shall be attached to this application.

(l) The application shall state whether the applicant, the director, officer, policy-making manager or principal stockholder or member:

(1) has owned an interest in any firm, partnership, association or corporation licensed by the commission; or

(2) is in the business of racing outside of the state of Kansas. An explanation of the circumstance of the interest or involvement shall be included.

(m) The application shall describe briefly and state the approximate value of any direct or indirect interest of any officer, director, policy-making manager, principal stockholder of the applicant organization or any associate of any of these persons, in any transactions during the last three years, or interest in any proposed transactions to which the applicant was or is to be a party;

(n) The application shall list all direct remuneration paid by the applicant and affiliated or related organizations during the applicant's last fiscal year to each partner, director, officer or policy-making manager of the applicant, naming each. As used in this paragraph, direct remuneration includes salary, retirement benefits, automobiles furnished, expenses reimbursed and all other sums paid for the benefit of the partner, officer, director, policy-making manager or other recipient;

(o) The application shall list the names, including any aliases or previous names, of each partner, director, officer or policy-making manager of the applicant, and each person chosen to become a partner, a director, an officer or a policy-making manager with a voting interest or ownership of three percent or more. The applicant shall make the best effort to disclose the information required. Personal background disclosure forms provided by the commission shall be furnished by each person named. All positions and offices held by each person named by the applicant and each person's principal occupation during the past five years shall be listed by the applicant. The applicant shall disclose for each listed individual the nature and extent of any beneficial or ownership interest, including options or other voting powers, whether absolute, or contingent, that the individual holds in the applicant organization.

(p) If a nonindividual record or beneficial holder of an ownership or other voting interest of three percent or more in the applicant is identified in subsections (h), (j), and (o) above, the applicant shall disclose the information required by those paragraphs as to record or beneficial holders of any ownership or other voting interest of three percent or more in that nonindividual holder. The disclosure required by those paragraphs must be repeated in turn until all indirect individual record and beneficial holders of ownership or other voting interest in the applicant are so identified. The disclosure shall be brought about by the best efforts of the applicant.

(q) If the applicant is a corporation, the following information shall be attached to the application:

(1) The applicant's corporate structure;

(2) the year the corporation was organized;

(3) the state in which the corporation was organized;

(4) a certified copy of the applicant's articles of incorporation and bylaws. Any amendments to the articles of incorporation or bylaws shall be filed in a timely manner with the commission. A current copy of the applicant's articles of incorporation, bylaws and amendments shall be recorded at all times in the commission office;

(5) a statement whether, in the past five years, the applicant has been reorganized or reincorporated or whether it has filed restated articles of incorporation in the state of Kansas or in any other state. Documentation of such an action shall be attached to the application;

(6) a statement of the classes of capital stock authorized, the amount authorized and the amount outstanding as of fifteen days prior to the date of filing the application. If applicable, a statement of the amount of dividends paid to the stockholders during the five years immediately preceding the application or for the period of incorporation if a lesser time.

(7) a list of the name and address of each person or entity who owns, of record or beneficially, one or more shares of any class of capital stock or an option or conditional interest in the applicant. This information may be displayed in columnar forms providing for name and address, class of stock owned, type of ownership, whether of record or beneficial, amount owned, and percent of the class of stock;

(8) a brief description of the terms of any voting trust or power in which any of the capital stock is held and the name, address, class of stock and number of shares of stock for all stock held by that voting trust or power;

(9) a brief description of the terms of any proxy by which any of the capital stock is held, the holder of the proxy and the name, address, class of stock and number of shares of stock for all stock held by such proxy;

(10) a statement of any dividend rights, redemption, purchase, retirement, conversion or exchange provisions;

(11) a statement and an explanation if the rights of holders of stock affected by the exchange provisions may be modified otherwise than by a vote of a majority or more of the shares outstanding, voting as a class;

(12) a statement whether three percent or more of the applicant's assets, or three percent or more of any principal stockholders' stock, is encumbered by any long term debt;

(13) a list of names and addresses of all parties holding any evidences of indebtedness including any oral agreements from the applicant and the stockholders;

(14) copies of the agreements or other documents relating to evidences of indebtedness;

(15) if the applicant is applying for a facility owner or facility manager license for the first time:

(A) A statement whether the applicant has or proposes to enter into any loan transaction or has or will be executing any evidence of indebtedness of oral loan agreement shall be provided;

(B) a list of the names and addresses of any parties loaning or proposing to loan funds and those parties holding evidences of indebtedness relating to the applicant shall be provided;

(C) the applicant shall submit a statement whether three percent or more of the applicant's stock is or is proposed to be encumbered by any debt, whether as a result of loans to the applicant or loans to the stockholder, and a statement of the names and addresses of any lenders or proposed lenders. For each disclosure under this section, copies of any agreements or documents relating to the loan or encumbrance or a written summary of any oral transaction shall be attached; and

(16) a statement of good standing from the secretary of state.

(r) If the applicant is a partnership, the following information shall be included with the application;

(1) A statement whether the partnership is a general or limited partnership, and whether it is a domestic or foreign partnership;

(2) a statement indicating in what state and in what year the partnership was formed;

(3) a certified copy of the applicant's partnership agreement or a certified copy of the certificate of limited partnership;

(4) if any of the applicant's partners is a corporation, responses shall be submitted by each corporate partner to the requests appearing in subsection (q) above;

(5) a statement whether in the past five years the partnership has filed:

(A) A restated certificate of limited partnership; or

(B) any certificate of changes or amendments to the partnership certificate;

(6) a statement whether:

(A) Any certificate has been cancelled;

(B) a judicial decree of amendment or cancellation has been issued; or

(C) a certificate of reinstatement has been issued. Documentation of any of these activities shall be attached to the application.

(7) a statement of any provisions for assignment of partnership interests, interim distributions or distributions upon withdrawal or dissolution;

(8) a statement whether three percent or more of the applicant's assets are encumbered by any long term debt;

(9) a list of names and addresses of all parties holding any evidences of indebtedness or any oral agreements from the applicant;

(10) a copy of any agreements or other documents relating to any evidences of indebtedness;

(11) if the applicant is applying for a facility owner or facility manager license for the first time:

(A) A statement whether the applicant has or proposes to enter into any loan transaction or has or will be executing any evidence of indebtedness or oral loan agreement shall be provided;

(B) a list of names and addresses of any parties loaning or proposing to loan the funds and any parties holding evidences of indebtedness relating to the applicant shall be provided;

(C) a statement whether three percent or more of the applicant's stock is or is proposed to be encumbered by any debt, whether as a result of loans to the applicant or loans to the stockholder shall be provided;

(D) a list of the names and addresses of any lenders or proposed lenders shall be provided; and

(E) a copy of any agreement or document relating to the loan or encumbrance or a written summary of any oral transaction shall be provided; and

(12) a statement of good standing from the secretary of state shall be provided.

(s) This regulation shall take effect on and after October 1, 1988.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8810 and 74-8815; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-9 Site and physical plant

Each application for a facility owner license or for an organization license in which the applicant proposes to construct or to own a racetrack facility shall contain the following information:

(a) The application shall identify the county and municipality where the racetrack or proposed racetrack is or will be located.

(b) The application shall state whether a majority of qualified electors in the named county approved either:

(1) The constitutional amendment permitting the conduct of horse and greyhound races and parimutuel wagering; or

(2) a proposition permitting horse and greyhound races and parimutuel wagering within the county boundaries. The form of racing approved shall be stated.

(c) The application shall state whether the applicant's facility is or will be designed to conduct horse racing, greyhound racing, or both. If horse racing is to be conducted, the breed of the horse to be raced shall be stated.

(d) The application shall identify any racing organization of which the applicant is a member.

(e) The application shall include the actual legal description of the proposed racetrack site.

(f) The application shall include the name and address of each title holder to the real property and any predecessor in title for the past five years.

(g) The application shall include the name and address of each person holding a mortgage or other security interest in the real property.

(h) The application shall include a certified title insurance policy or abstract.

(i) The application shall state and document the status of governmental action relating to the following:

(1) The city street, county road and state highway improvements necessary to ensure adequate access to the applicant's racing facility, including:

(A) The estimated cost of improvements;

(B) the status and estimated date of completion;

(D) the proportionate distribution of the cost of the improvements if more than one party is responsible for the cost;

(2) the sewer, water, and other public utility improvements necessary to serve the applicant's facility including:

(A) The estimated cost of improvements;

(B) the status and estimated date of completion;

(D) the proportionate distribution of the cost of the improvements if more than one party is responsible for the cost;

(3) any required government approvals for financing improvements under subsection (i)(1) and (i)(2) above and any required government approvals for zoning or special use permits, including:

(A) A description of the approval, unit of government, date and documentation;

(B) a statement whether public hearings were held, including when and where the public hearings were conducted or why the public hearings were not held; and

(C) a statement whether the unit of government attached any conditions to approval. The applicant shall disclose the conditions, including documentation;

(4) a statement whether any required governmental approvals remain to be obtained, as well as a description of the approval, unit of government, status, likelihood of approval and estimated date of approval; and

(5) a statement whether the applicant is in compliance with all statutes, resolutions, ordinances and regulations pertaining to the development, ownership and operation of the racing facility. If the applicant is not in compliance, the applicant shall disclose the reasons the applicant is not in compliance.

(j) The application shall state the number of miles from the nearest population area, including:

(1) A description of the transportation facilities serving the area;

(2) a description of public or private transportation arrangements to the area; and

(3) highway and street access to the track; and a site map reflecting the highway and street access to the track.

(k) The application shall state the track dimensions for each track proposed, including the following dimensions and specifications:

(1) The circumference;

(2) the width;

(3) the banking;

(4) the location of the starting gates or the starting boxes;

(5) the length of the stretch;

(6) the distance between the finish line and the first turn;

(7) the type of base and surface for the track; and

(8) the winterization method for the racing surface.

(l) The applicant shall supplement the information requested in subsections (m) through (w) below with at least one copy of the architect's plans showing the details of any proposed construction.

(m) The application shall describe the size and the type of construction, including:

(1) A description of the grandstand;

(2) the total seating capacity, specifically detailing the area that is air-conditioned or heated;

(3) the reserved and non-reserved seating capacity;

(4) the indoor and outdoor seating capacity;

(5) the configuration of the grandstand seating;

(6) the configuration and location of the parimutuel facilities;

(7) the configuration and location of the food, drink and other concessions;

(8) the configuration and location of clubs or other special facilities for patrons;

(9) the number and location of restroom facilities;

(10) the drinking fountains;

(11) the medical facilities;

(12) the pattern of public pedestrian traffic; and

(13) the provisions for the handicapped.

(n) The application shall describe the construction and type of parking facilities, detailing:

(1) Access to parking from perimeter local, state or federal highways;

(2) the number and location of parking spaces available for general public parking at the facility;

(3) the road surface to be used on parking facilities;

(4) the distance between parking and the grandstand;

(5) a street map of the area showing the relation of parking to surrounding state, local and federal highways;

(6) the public road improvements that must be completed to provide adequate public access to the facility;

(7) whether the road improvements will be performed by local authorities;

(8) when the improvements will be completed; and

(9) a plan of the parking facilities.

(o) The application shall describe facilities to accommodate horses by listing the following:

(1) The location, number, dimension, and method of construction of boxed stalls or other stalls;

(2) the location, number, dimension and method of construction of boxed stalls or other stalls for stakes horses, overnights and haul-ins; and

(3) the location and description of temperature and fire regulation equipment in the facility.

(p) The application shall describe facilities to accommodate greyhounds by listing the following:

(1) The location and method of construction of kennels within the compound, including:

(A) The number of kennels per building;

(B) the location of restroom and work areas or kitchens in kennel buildings;

(D) the location, number and method of construction of crates for stakes greyhounds and resident racing greyhounds to be kenneled; and

(E) the availability of telephone hook-up and cable hook-up for video reception;

(2) the location and number of any turn-out pen and attached lean-to; and

(3) the location and number of sprint fields.

(q) The application shall describe facilities for horse or greyhound owners and other racing personnel, including separate parking, tack rooms and trainer rooms.

(r) The application shall describe the testing facilities, providing a detailed plan for them and an estimated cost of construction. The distance from the test facilities to track and paddock, the number of sampling stalls, the placement of viewing ports on each stall, the location of the post-mortem floor, the number of wash stalls with hot and cold water and drains, and the availability of video monitors and a description of the walking ring shall be stated.

(s) The application shall describe the paddock, providing a detailed plan of the paddock and an estimate of the cost of construction. The dimensions and the number of stalls or crates, the height from the floor to the lowest point of the stall or crate ceiling and entrance, and the location of the shoeboard shall be described. The office or other facilities for the paddock judge and identifier shall be described.

(t) The application shall describe in detail the jockey's quarters, including the changing facilities, a list of equipment to be installed in each facility, the location of the jockey's quarters in relation to the paddock, the location of the weight station and an estimate of the cost of the construction.

(u) The application shall state the height, type of construction and materials of restricted area fencing, including whether there is a clear zone at least four feet wide around the outside of the entire restricted area.

(v) The application shall describe security equipment and the location at the racetrack, exclusive of fencing.

(w) The application shall describe work areas for commissioners, stewards, license clerks and the employees of these personnel.

(x) This regulation shall take effect on and after October 1, 1988.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8804, 74-8813, 74-8814, and 74-8815; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-10 Financing and development

Each application for an organization license or a facility owner license in which the applicant proposes to construct or own a racetrack facility shall contain the following information:

(a) The application shall state the names and addresses of every person or business organization that provides or will provide contractual services to the applicant for purposes of the licensed project, indicating the nature of such services rendered and the equipment or property provided or to be provided.

(b) The application shall include a copy of each contract and written agreement disclosed in subsection (a). If the agreement or understanding is an oral one, a statement explaining the substance of the oral agreement or understanding shall be attached to the application. For any contract, agreement or understanding referred to, the name and address of each party to the contract shall be stated. Any relationship of the parties through control, family or business association to the applicant, the partners, associates, officers, directors, or principal owners shall be stated.

(c) The application shall state a detailed project budget of any expenditure related to the completion or improvement of the proposed facility, including but not limited to:

(1) Architecture and engineering costs;

(2) land acquisition costs;

(3) site development costs, including:

(A) Survey;

(B) soil and site work;

(D) parking lot;

(E) transportation access; and

(F) track(s);

(4) facility construction cost, including:

(A) grandstand;

(B) security and fire equipment;

(D) test and detention paddock; and

(E) tote board;

(5) equipment acquisition cost;

(6) cost of interim financing;

(7) organization, administrative and legal expenses;

(8) projected permanent financing costs; and

(9) marketing costs.

(d) The application shall state the construction schedule proposed for completion or improvement of the facility, including an estimated date of project completion and the following information:

(1) A detailed description of the method or methods by which the construction project and components will be undertaken, including but not limited to general construction contract, force account, or fast tract method; and

(2) an estimated time schedule for construction or improvement, including the date the proposed project will be fully operational and the number of months after the license is granted that each of the following activities will be either commenced or completed:

(A) The acquisition of land;

(B) the solicitation of bids;

(D) the construction commencement;

(E) the completion of construction;

(F) the occupancy of the new facility or space;

(G) the training of staff;

(H) the commission check and inspection of the facility for public and racing readiness; and

(I) the commencement of racing.

(e) The application shall state the source or sources of funding for the completion or improvement of the project proposed by the application. The following shall be identified and documented:

(1) Each source of equity contribution and the amount of the contribution;

(2) any present or conditional commitment received for each funding source;

(3) each source of debt contribution, and the amount of the contribution;

(4) any present or conditional commitment received for the financing; and

(5) a detailed financing timetable stating a date for the submission of an unqualfied commitment for financing to the commission.

(f) The application shall identify and describe sources of additional funds needed for cost overruns, nonreceipt of expected equity or debt funds, failure to achieve projected revenues or any other cause.

(g) The application shall include an index to and copies of all proposed acquisition documents and a certification by the applicant that the commission has been provided with a copy of all the documents.

(h) As a part of the application process, the applicant shall submit an index to and copies of all fully executed acquisition documents and a certification by the applicant that the commission has been provided with a copy of all the documents within seven days after acquisition is complete.

(i) This regulation shall take effect on and after October 1, 1988.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8813, 74-8814 and 84-8815; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-11 Racing operation and parimutuel wagering

Each application for an organization license shall contain the following information about the operation and conduct of any horse races or greyhound races and the parimutuel system of wagering:

(a) The application shall state by actual dates the live racing days requested by the applicant.

(b) The application shall state the kind of racing to be conducted.

(c) The application shall list those persons within the applicant organization who will be supervising the conduct and operation of the horse races or greyhound races, or both, and the operation of the parimutuel system of wagering to the extent known, including the following:

(1) The legal name, all aliases, and any previous name;

(2) the current residence and each business address and telephone number;

(3) any qualifications and experience in the following areas:

(A) General business;

(B) finance and accounting;

(D) parimutuel systems and wagering; and

(E) security;

(4) a copy of any written contract or a statement of the terms of any oral agreement between the applicant and each officer and staff member identified in subsection (c) above;

(5) the basic job description and qualifications for each position described in subsection (c) above and a personnel organization chart;

(6) a plan for preopening and continuing training for the applicant's personnel; and

(7) a personal background disclosure form executed and verified by each of the individuals identified in subsection (c) above.

(d) The application shall state financial projections regarding the operation and conduct of any races and parimutuel wagering during the first five racing years, with separate schedules based upon the number of racing days and types of parimutuel wagering that the applicant requires to break even and the optimum number of live racing days and types of wagering the applicant seeks each year. The applicant shall attach to the financial projection statement any documentation of assumptions or projections made, including the following:

(1) Projected balance sheets by an independent certified public accountant that, for the end of the development or improvement period and for each of the first five years of racing, state the current, fixed, and other noncurrent assets, current and long-term liabilities, and capital accounts, including the accountant's review report of the financial and cash flow projections based on, among others, the following assumptions and support for them:

(A) The average daily attendance;

(B) the average daily handle;

(D) the number of estimated admissions to the track, including each ticket price and free admission;

(E) the estimated minimum purse schedule;

(F) the totalisator equipment lease;

(G) any state and federal tax;

(H) the estimated payroll;

(I) the amount of insurance;

(J) any travel expense;

(K) any operating supplies and services;

(L) any repair and maintenance expense;

(M) any membership expense;

(N) any legal and audit expense;

(O) any retainage from the parimutuel handle;

(P) any parimutuel expense; and

(Q) any equipment depreciation and the method of depreciation used; and

(2) an information sheet detailing the background of the independent certified public accountant who provided the financial projections requested in paragraph (d)(1).

(e) The application shall state whether the applicant, any officer, any director, or any principal stockholder has complied with and is in compliance with K.S.A. 74-8810, and amendments thereto.

(f) The application shall state a proposal for security of payment, including a surety bond or other financial security, and the amount of payment adequate to secure the licensee's potential financial liability for unpaid taxes, purses, and distribution of parimutuel winnings and breakage.

(g) The application shall state a plan for distribution of the net earnings from the conduct of horse races or greyhound races, or both, pursuant to K.S.A. 74-8813 (d), and amendments thereto, projected over the first five years of racing.

(h) The application shall describe the applicant's parimutuel department, including the totalisator facility, the nature and type of equipment to be installed, and any proposed lease agreements relating to the totalisator system and the equipment. A copy of each lease agreement, written contract, or statement of the terms of any oral agreement between the applicant and the totalisator equipment provider shall be attached to the application.

(i) The application shall describe the starting, timing, photo finish, and photo patrol or video equipment, including any provider of equipment or services. A copy of any lease agreement, written contract or statement of the terms of any oral agreement between the applicant and any provider identified in this subsection shall be attached to the application.

(j) The application shall list memberships of the applicant, any personnel, and consultants in horse racing or greyhound racing organizations and memberships in any other organizations.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8813 and 74-8814; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988; amended Sept. 5, 2003.)

Kan. Admin. Regs. § 112-3-12 Management of racetrack facility

Each application for an organization license or a facility manager license in which the applicant proposes to manage a racetrack facility shall contain the following information:

(a) The application shall include:

(1) The applicant's management plan;

(2) the functions, job description and required qualifications of management personnel; and

(3) an organization chart.

(b) The application shall list management personnel with the following information:

(1) Legal name, any aliases and any previous names;

(2) current residences, business addresses and telephone numbers;

(3) any qualification and experience in the following areas:

(A) General business;

(B) real estate development;

(D) marketing, promotion, and advertising;

(E) finance and accounting;

(F) security; and

(G) human health and safety and animal health and safety;

(4) a description of the terms of employment. A copy of each contract, agreement or a statement of any oral agreement identified in this section shall be attached to the application; and

(5) personal background disclosure forms executed and verified by each of the individuals identified in this section shall be attached to the application.

(c) The application shall identify consultants and other contractors who have provided or will provide management related services to the applicant, to the extent known, and provide the following information for each service provider:

(1) The full name;

(2) the current address and telephone number;

(3) the nature of the services;

(4) any qualifications and experience; and

(5) a description of the terms and conditions of any contractor's agreement or contract. A copy of each agreement and contract or a statement of any oral agreement identified in this section shall be attached to the application.

(d) The application shall describe the applicant's marketing, promotion and advertising plans for:

(1) The pre-opening; and

(2) the first race meeting.

(e) The application shall describe the applicant's plan for any concessions, including but not limited to food, beverage and other products. The owner and operator of concessions shall be identified. A copy of the contract or agreement or a statement of any oral agreement for each party identified in subsection (e) shall be attached to the application.

(f) The application shall include a schedule of rates charged for the performance of any service or for the sale of any article on the premises of the facility, whether directly or through a concessionaire.

(g) The application shall state the plan for pre-opening and continuing training for the applicant's personnel.

(h) The application shall include projected balance sheets by an independent certified public accountant that, for the end of the development or improvement period and for each of the first five years of racing, state current, fixed, and other noncurrent assets, current and long-term liabilities and capital accounts, including the accountant's review report of financial and cash flow projections based on, among others, the following assumptions, including support for the assumptions:

(1) The average daily attendance;

(2) the number of admissions to the track, including ticket prices and free admissions;

(3) any parking fees and revenues;

(4) any concessions and program sales including the schedule of charges;

(5) any fees or other rates charged on the premises of the facility not otherwise identified;

(6) any sales tax;

(7) any personal property tax;

(8) any real estate tax;

(9) any special assessments;

(10) any payroll;

(11) any operating supplies and services;

(12) any utilities;

(13) any repairs and maintenance;

(14) any equipment depreciation, stating the method of depreciation used;

(15) any facility depreciation, stating the method of depreciation used;

(16) any insurance;

(17) any travel expense;

(18) any membership expense;

(19) any security expense;

(20) any legal and audit expense;

(21) any debt service;

(22) any state and federal tax;

(23) any stall and kennel rent;

(24) any advertising and promotion; and

(25) any interest expense; and any other assumptions of financial and cash flow projections.

(i) The application shall include an information sheet detailing the background of the independent certified public accountant who provided the financial projections requested in subsection (h).

(j) The application shall state whether the applicant, any officers, directors and principal stockholders have complied with and are in compliance with K.S.A. 1987 Supp. 74-8810.

(k) This regulation shall take effect on and after October 1, 1988.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8813; 74-8814 and 74-8815; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-13 Economic, demographic and other information

Each application for a facility owner license or an organization license in which the applicant proposes to construct or own a racetrack facility shall contain the following information:

(a) The application shall describe the climatic conditions prevalent during the proposed race meeting.

(b) The application shall state the population of the area, the growth trend and describe the potential track market;

(1) The economic impact for the respective horse breeding or greyhound breeding industries in Kansas;

(2) any employment created, including:

(A) whether the employment is temporary or permanent;

(B) the type of work and compensation;

(D) how the employment was created;

(3) any purchases of goods and services including the money amount and type of purchase;

(4) any public and private investment;

(5) any tax revenue generated; and

(6) any relative economic site advantage.

(d) The application shall state the projected social impact of the track, including how it may affect the following:

(1) The school system;

(2) the police service;

(3) the fire service;

(4) the ambulance service;

(5) the population growth;

(6) the housing demand; and

(7) the community planning and development scheme.

(e) The application shall state whether any area residents oppose the proposed track site, and state what effect, if any, that opposition will have on the economic welfare of the proposed track.

(f) The application shall state the ecological impact of the track site, including a plan for waste disposal;

(g) The application shall describe the effect of competition with any race track in and out of the state and with any other sport or recreational facility in the area. A detailed statement of what effect the competition from any other racetrack will have on the availability of track personnel and on the quality of racing stock shall be made.

(h) This regulation shall take effect on and after October 1, 1988.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8813; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-14 Public safety and security

Each application for a facility manager license or an organization license in which the applicant proposes to manage a racetrack facility shall contain the following information:

(a) The application shall include the following information regarding security personnel:

(1) Whether the security personnel are or will be direct or contractual employees;

(2) a complete security force organization chart;

(3) a complete job description of the entire security force, including each level of security and the location to which each level will be assigned;

(4) the training, including the type of training and the training program, if applicable; and

(5) whether the security force is or will be bonded. If the security force is bonded, a certified copy of any bond document and a statement of the amount and when the applicant will satisfy the bond conditions shall be attached to the application.

(b) The application shall describe a complete security plan for the race period and the non-race period, including:

(1) The number and deployment of security personnel;

(2) the perimeter;

(3) the stable and the kennel compound;

(4) the cash room;

(5) the vault;

(6) the method of money transfer between wagering windows, cash room and any other location to which money will be transferred;

(7) the number of sworn law enforcement personnel assigned to any local law enforcement offices and the types of incidents to which the law enforcement personnel may be expected to respond;

(8) the coordination between the racetrack facility security and the local law enforcement personnel, including the location of the local law enforcement office and the approximate response time;

(9) any video monitoring equipment, including the type and location;

(10) any alarms, including the type and location;

(11) the testing or detention barn or paddock for horses;

(12) the greyhound paddock;

(13) the parking lot;

(14) the backside and the frontside;

(15) any emergency procedures, including ambulance, first aid or evacuation, and the location of any local emergency medical services and approximate response time;

(16) the exclusion and expulsion rules;

(17) the security force equipment;

(18) the policy and procedure for admittance of persons to any locations at the racetrack facility; and

(19) the control of traffic at the racetrack facility.

(1) The standard operating procedures of security personnel to ensure the fire safety of any areas of the facility;

(2) the electrical safety and devices, including number, type, uses and locations;

(3) the inspections, including any inspection schedules;

(4) the straw, hay, and feed storage;

(5) the smoking;

(6) the sleeping quarters, if applicable;

(7) the barn, the stable, and the kennel compound;

(8) the grandstand;

(9) the club house or other special patron area;

(10) the administrative offices;

(11) the type and location of firefighting equipment; and

(12) the coordination between the track and any local fire department, including the location of the local fire department and the approximate response time.

(d) This regulation shall take effect on and after October 1, 1988.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8804, 74-8813, 74-8814 and 74-8815; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-15 Annual certified financial audit of organization licensee

(a) Each organization licensee shall file annually a financial audit as required by K.S.A. 1987, Supp. 74-8813(i) on or before 90 days after the licensee's fiscal year end. The licensee's audit shall be filed with the executive director at the commission office.

(b) This regulation shall take effect on and after October 1, 1988.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8813; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-16 Organization license application forms and fees for fair associations and the state of Kansas

(a) Modified organization license application forms may be drafted by the commission for fair associations and for the state of Kansas or any political subdivision thereof subject to the provisions of K.S.A. 74-8813 as amended by L. 1994, Ch. 146, Sec. 5, K.S.A. 74-8814 as amended by L. 1994, Ch. 146, Sec. 6, and K.S.A. 74-8815.

(b) The following application fees shall apply:

(1) $50 for parimutuel racing not to exceed eleven days;

(2) $100 for parimutuel racing with not less than twelve nor more than twenty-one days; and

(3) $500 for parimutuel racing exceeding twenty-one days.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804 as amended by L. 1994, Ch. 146, Sec. 3; implementing K.S.A. 1993 Supp. 74-8804 as amended by L. 1994, Ch. 146, Sec. 3, K.S.A. 74-8813 as amended by L. 1994, Ch. 146, Sec. 5, K.S.A. 74-8814 as amended by L. 1994, Ch. 146, Sec. 6, and K.S.A. 74-8815; effective, T-89-6, Jan. 21, 1988; effective Sept. 20, 1988; amended March 19, 1990; amended July 10, 1995.)

Kan. Admin. Regs. § 112-3-17 Submission of information

(a) Any license applicant or any licensee may be required by the commission to submit information to facilitate the review of an initial license application or any subsequent review of an existing license, or to ascertain compliance with any provision of this act or any rule and regulation adopted by the commission.

(b) Any licensee required to submit information under subsection (a) of this regulation shall submit the information within 10 days of the commission's request for the information.

(c) Any licensee proposing to enter into any contract described in K.S.A. 74-8804(h), K.S.A. 74-8813(n) or K.S.A. 74-8836(d)(3) and amendments thereto, or any other contract required to be submitted to the commission by any other provision of the parimutuel racing act, K.S.A. 74-8801 et seq. and amendments thereto, or any rule or regulation adopted by the commission, shall submit a copy of such proposed contract to the commission within five business days after the parties to such a proposed contract have concluded an agreement.

(d) Any licensee failing to submit information requested pursuant to subsection (a) of this regulation or copies of contracts pursuant to subsection (c) of this regulation within the time periods provided in subsections (b) and (c) of this regulation may after notice and hearing be assessed a civil fine of $50.00 per day, up to a maximum of $5,000, for each day such information or contract is submitted late.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1994 Supp. 74-8804; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988; amended March 1, 1996.)

Kan. Admin. Regs. § 112-3-18 Commission approval of sale or conveyance

(a) In the event the control of a facility owner or facility manager licensee is to be conveyed, no sale or conveyance shall take effect until approval is obtained from the commission. The application of the purchaser shall contain the same information required by K.A.R. 112-3-8 pertaining to the application procedure for a facility owner and facility manager applicant.

(b) This regulation shall take effect on and after October 1, 1988.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8804 and 74-8815; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-19 Background investigations

(a) Any entity or individual identified for investigation in these regulations or found to be material to the racing program shall submit to a background investigation conducted by the director of security, director of the Kansas bureau of investigation or other person designated by the commission. Each individual or entity identified in this regulation shall provide three sets of fingerprints, recorded on fingerprint cards by a certified law enforcement officer, and shall execute and verify a personal background disclosure form provided by the commission. The level of any background investigation may be designated by the commission.

(b) Each individual or entity identified in this regulation shall file the fingerprint cards and personal background disclosure form in the offices of the Kansas bureau of investigation or the Kansas racing commission as designated by the commission.

(c) Except as otherwise provided by law or rules and regulations adopted by the commission, no individual or entity identified for investigation in these regulations or found to be material to the racing program shall exercise any power, duty or function in the identified capacity until the background investigation for such individual or entity has been completed and approved by the commission.

(d) Each individual who regularly assumes duties similar to the following positions shall undergo a complete background investigation conducted by the commission's director of security, the Kansas bureau of investigation or any other person designated by the commission:

(1) Board of directors of:

(A) The organization licensee;

(B) the facility owner licensee; and

(2) officers of fair associations seeking organizational licenses;

(3) board of directors/officers of non-profit horsemen's organizations seeking organizational licenses;

(4) chief executive officer of organization/facility licensee;

(5) general manager;

(6) assistant general manager;

(7) horse racetrack officials;

(8) greyhound racetrack officials;

(9) backup horse racetrack officials;

(10) backup greyhound racetrack officials;

(11) director of security;

(12) mutuel employee serving as money room manager;

(13) concession manager/operator; and

(14) any other position designated for good cause by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1995 Supp. 74-8804, as amended by K.S.A. 1995 Supp. 74-8804; effective, T-89-6, Jan. 21, 1988; effective Sept. 20, 1988; amended March 19, 1990; amended March 8, 1996.)

Kan. Admin. Regs. § 112-3-20 Testing for controlled substances

Any commission licensees and any officers, directors, and employees of the licensees may be required by the commission to submit to tests determining the use of any controlled substance.

(b) This regulation shall take effect on and after October 1, 1988.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8804; effective, T-89-6, Jan. 21, 1988; effective Oct. 1, 1988.)

Kan. Admin. Regs. § 112-3-21 Race date fees, payment

Daily race date fees to be paid by an organization licensee pursuant to K.S.A. 1996 Supp. 74-8813(g) shall be paid in advance at least monthly by the licensee, remitting such daily license fees to the commission before the 25th day of the month preceding the month for which such fees are assessed.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804; implementing K.S.A. 1996 Supp. 74-8813 and 74-8813a; effective July 25, 1997.)

Article 4 Occupation and Concessionaire Licenses

Kan. Admin. Regs. § 112-4-1 Occupation licenses

(a) Before engaging in the following occupations at a racetrack facility, each person shall pay the required fee and secure the appropriate license or licenses from the commission:

(1) Administration-facility;

(2) administration-organization;

(3) administrative support-facility;

(4) administrative support-organization;

(5) amateur jockey;

(6) apprentice jockey;

(7) assistant trainer-horse/greyhound;

(8) authorized agent;

(9) backup greyhound racetrack official;

(10) backup horse racetrack official;

(11) blacksmith/plater/farrier;

(12) breed registry;

(13) concession employee;

(14) concession manager/operator;

(15) driver;

(16) exercise person;

(17) greyhound racetrack official;

(18) groom/hot walker;

(19) horse racetrack official;

(20) horseman/kennel representative;

(21) jockey;

(22) jockey agent;

(23) jockey guild representative;

(24) kennel helper;

(25) kennel owner;

(26) kennel owner/trainer;

(27) medical attendant;

(28) owner-horse/greyhound;

(29) owner/assistant trainer-horse/greyhound;

(30) owner/trainer/driver-horse;

(31) owner/trainer-horse/greyhound;

(32) owner by open claim-horse;

(33) photo finish operator;

(34) pony person;

(35) practicing veterinarian;

(36) practicing veterinary assistant;

(37) racing department staff;

(38) racing judge;

(39) selection sheet operator;

(40) service provider;

(41) steward;

(42) totalisator employee;

(43) trainee-racing official;

(44) trainer-horse/greyhound;

(45) video operator; and

(46) any other personnel designated by the commission.

(b) Each applicant for an occupation license shall apply in writing on the application form approved and furnished by the commission.

(c) Each applicant for an occupation license acting as an employer required to carry workers compensation insurance pursuant to the workers compensation act of the state of Kansas, K.S.A. 44-501 et seq., and amendments thereto, shall submit proof of this insurance to the commission within 10 working days of the applicant's filing an application for an occupation license.

(d) Each person who is appointed by an owner or trainer to act as an authorized agent shall secure an occupation license. Each owner, trainer, or authorized agent shall file each authorized agent agreement form with the commission. Each authorized agent shall perform for the owner or trainer only the duties that are the subject of the authorized agent agreement form. Each authorized agent shall notify the commission in writing when the authorized agent agreement is terminated.

(e) An applicant for an occupation license shall not knowingly provide false information on any occupation license application form.

(f) An applicant for an occupation license shall not fail to disclose any material fact on any occupation license application form.

(g) No licensee shall alter or attempt to alter any information contained on an occupation license badge.

(h) Each person who loses an occupation license shall immediately perform the following:

(1) Notify the commission office at the racetrack facility;

(2) secure a duplicate license; and

(3) pay the required fee.

(i) An applicant shall pay each required fee when the occupation license is issued. Occupational licenses issued by the commission shall be for one-year or three-year periods.

(1) Each one-year or annual license shall be valid for a period commencing on January 1 and terminating on December 31 of the calendar year for which the license is issued.

(2) Each three-year or triennial license shall be valid for a period commencing on January 1 of the year in which the license is issued and terminating on December 31 of the final year.

(j) A computer check of license records from other racing jurisdictions shall be run annually on all licensees by the commission.

(k) Any applicant may be required to submit with the application at least two complete sets of fingerprint cards approved by the commission. If the fingerprints are not acceptable for processing, each applicant shall be required to resubmit fingerprint cards.

(l) Each applicant for an occupation license shall be at least 16 years of age. This provision shall not preclude dependent children under the age of 16 from working for a parent or guardian if the parent or guardian is licensed as a kennel owner, trainer, or assistant trainer and the parent or guardian has obtained approval from the organization licensee. Each licensed trainer or assistant trainer at a horse or greyhound racetrack facility shall be at least 18 years of age. Each racing official, security employee, and mutuel employee shall be at least 18 years of age.

(m) Each employer at a racetrack facility shall ensure that each employee is properly licensed and shall immediately notify the commission office at the racetrack facility and the organization licensee when a licensee's employment status changes or when an employee is terminated. Each employer shall make an effort to secure the employee's occupation license and, if the license is secured, shall deliver the license to the commission office at the racetrack facility.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8804 and 74-8816; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-22-89, Aug. 22, 1989; amended Oct. 9, 1989; amended, T-112-12-30-91, Dec. 30, 1991; amended Feb. 24, 1992; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended, T-112-7-22-93, July 22, 1993; amended Oct. 25, 1993; amended April 3, 1995; amended March 8, 1996; amended July 25, 1997; amended May 1, 1998; amended Aug. 25, 2000; amended June 1, 2001; amended Dec. 19, 2003.)

Kan. Admin. Regs. § 112-4-1a Concessionaire licenses

(a) No organization licensee or facility manager licensee shall permit any entity not owned and operated by that licensee to sell goods or services within a racetrack facility where that licensee conducts race meetings unless the entity has been issued a concessionaire license by the commission pursuant to K.S.A. 74-8817 and amendments thereto.

(b) Before providing or selling any of the following goods or services within a racetrack facility, each person shall pay the required fee and secure the appropriate license or licenses from the commission:

(1) Hay;

(2) feed;

(3) tack;

(4) sawdust;

(5) bedding;

(6) horse walkers;

(7) massage therapy;

(8) horseshoes;

(9) veterinarian services;

(10) physical examinations by a physician;

(11) win photos;

(12) videos;

(13) tip sheets;

(14) food;

(15) beverage machines and snack or cigarette machines;

(16) amusement and entertainment devices or machines; or

(17) any other goods or services.

(c) Each applicant shall apply for the license in the following category that best fits the services or goods that the applicant is providing:

(1) Each applicant who proposes to have an annual on-track sales revenue for goods or services totalling $100,000 or more at a non-county fair race meet shall apply for a class 1 concessionaire license.

(2) Each applicant who proposes to have an annual on-track sales revenue for goods or services totalling less than $100,000 at a non-county fair race meet shall apply for a class 2 concessionaire license.

(3) Each applicant who proposes to sell goods or services at a county fair association race meeting that is held for a total of not more than 21 race days per calendar year shall apply for a class 3 concessionaire license.

(4) Each applicant who proposes to provide any coin-operated device that dispenses goods, entertainment, or amusement shall apply for a class 4 concessionaire license.

(5) Each applicant who proposes to provide any professional service or service requiring special training shall apply for a class 5 concessionaire license. This license category shall include physicians, veterinarians, masseuses, and farriers.

(6) Each applicant who proposes to sell goods or services for an event that lasts three days or less shall apply for a class 6 concessionaire license.

(d)(1) A class 7 concessionaire license may be issued only to the Kansas lottery for the purpose of providing lottery products for retail sale at a racetrack.

(2) On behalf of the Kansas lottery, the executive director of the Kansas lottery shall be eligible to apply for a class 7 concessionaire license after legally executing a contract with the facility manager licensee or the organization licensee at the racetrack facility at which the Kansas lottery wants to provide lottery products for retail sale. To apply for a license, the executive director of the Kansas lottery, on behalf of that agency, shall submit a completed application on a commission-provided form and a copy of the legally executed contract to the commission. No application fee or license fee shall be required.

(3) If a class 7 concessionaire license is granted by the commission, each employee or contracted agent of the Kansas lottery who has had a background investigation substantially equivalent to that of employees of the commission shall have access to that racetrack facility only for the purposes of providing lottery products and installing, maintaining, removing, and repairing lottery equipment, upon showing proper identification.

(e) The organization licensee or facility manager licensee shall notify the commission of all entities providing goods and services to third parties at the racetrack facility and shall be subject to the penalties provided in K.A.R. 112-3-17 for failure to notify the commission.

(f) Each applicant shall complete a concessionaire license application form furnished by the commission, which shall include the following:

(1) The applicant's name, address, and telephone number;

(2) Kansas tax identification number;

(3) federal tax identification number;

(4) the name of each individual employed by the applicant and working at the racetrack facility;

(5) proof of workers compensation if liable under the workers compensation act in Kansas; and

(6) the name, address, and telephone number of each partner, owner, officer, director, board member, policy-making manager, and any other person or entity having control or a voting interest in the business of the applicant, and the percentage of voting interest for each person or entity.

(g) Each applicant may be required to provide, on a quarterly basis, a financial report of on-track sales revenue.

(h) The applicant shall not knowingly provide false information on any concessionaire application or fail to disclose any material fact on the concessionaire application form.

(i) Each applicant shall obtain and provide, with the application, written authorization from the organization licensee or facility manager licensee to sell goods or services at the racetrack facility.

(j) Each owner, officer, board member, or other entity with a voting interest or ownership of three percent or more may be required to submit to a background investigation to be conducted by either of the following:

(1) The commission's director of security or the director's designee; or

(2) the Kansas bureau of investigation.

(k) Each applicant for a concessionaire license shall pay the appropriate application and license fees as designated by the commission.

(l) Each applicant shall pay any additional fees for background and fingerprint processing, as needed to pay the actual, reasonable expenses of processing the application and investigating the applicant's qualifications for licensure.

(m) Each applicant for a concessionaire license may be required to provide copies of income tax returns for each of the five years immediately preceding the application or all tax returns if the applicant has been organized for fewer than five years.

(n) The applicant shall not sell goods or services at the racetrack facility before being licensed by the commission.

(o) Each licensee or applicant for a license shall report immediately and in writing any change in license or application information to the commission.

(p) A licensed concessionaire may be permitted to sell veterinary prescription drugs or medications if the individual meets the following criteria:

(1) Is registered pursuant to K.S.A. 65-1601 et seq., and amendments thereto;

(2) has a valid written prescription from a licensed veterinarian for each prescription drug or medication; and

(3) maintains a copy of each written prescription for inspection purposes.

(q) Before the expiration of a concessionaire license, the concessionaire licensee may apply to the commission for renewal of this license on a form furnished by the commission. The renewal shall be granted by the commission if the licensee meets all of the qualifications required for an initial license. A fee may be charged by the commission for processing the renewal application. This fee shall not exceed the application fee authorized for an initial license.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8817; effective March 14, 2003; amended Jan. 6, 2006.)

Kan. Admin. Regs. § 112-4-1b Racing or wagering equipment or services

(a) No organization licensee or facility manager licensee shall permit any business not owned and operated by that licensee to provide integral racing or wagering equipment or services, as designated in subsection (b), to that licensee unless the business has been issued a racing or wagering equipment or services license by the commission pursuant to K.S.A. 74-8837 and amendments thereto.

(b) "Integral racing and wagering equipment and services" shall mean those services and equipment that are provided on-site at the racetrack facility. This term shall include the following:

(1) Tote services;

(2) tote boards;

(3) photo finish;

(4) video replay;

(5) video reception;

(6) transmission services and equipment;

(7) starting gate; and

(8) lure.

(c) Before providing integral racing or wagering equipment or services at a racetrack facility, each individual or entity shall pay the required fee and secure the appropriate license or licenses from the commission.

(d) The organization licensee and facility manager licensee shall notify the commission of all racing or wagering equipment or services being provided at the racetrack facility pursuant to K.A.R. 112-3-17.

(e) Each applicant shall complete a racing or wagering equipment or services application form furnished by the commission, which shall include the following:

(1) The applicant's name, address, and telephone number;

(2) the names of all individuals employed by the applicant and working at the racetrack facility;

(3) proof of workers compensation if liable under the workers compensation act in Kansas; and

(4) the name, address, and telephone number of each partner, owner, officer, director, board member, policy-making manager, and any other person or entity having control or a voting interest in the business of the applicant, and the percentage of voting interest for each person or entity.

(f) The applicant shall not knowingly provide false information on any racing and wagering equipment or services application or fail to disclose any material fact on the racing and wagering equipment or services application.

(g) Each applicant shall provide a copy of the contract entered into with the facility manager licensee or organization licensee, or both.

(h) Each partner, owner, officer, director, board member, policy-making manager, or other entity with a voting interest or ownership of three percent or more may be required to submit to a background investigation to be conducted by either of the following:

(1) The commission's director of security or the director's designee; or

(2) the Kansas bureau of investigation.

(i) Each applicant for a racing or wagering equipment or services license shall pay the appropriate application and license fees as designated by the commission.

(j) Each applicant shall pay any additional fees for background and fingerprint processing, as required to pay the actual, reasonable expenses of processing the application and investigating the applicant's qualifications for licensure.

(k) Each applicant for a racing or wagering equipment or services license may be required to provide copies of income tax returns for each of the five years immediately preceding the application or all tax returns if the applicant has been organized for fewer than five years.

(l) Each licensee or applicant for a license shall report immediately and in writing any change in license or application information to the commission.

(m) Before the expiration of a racing or wagering equipment or services license, the licensee may apply to the commission for renewal of this license on a form furnished by the commission. The renewal shall be granted by the commission if the licensee meets all of the qualifications required for an initial license. A fee may be charged by the commission for processing the renewal applications. This fee shall not exceed the application fee authorized for an initial license.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2001 Supp. 74-8804; implementing K.S.A. 2001 Supp. 74-8837; effective March 14, 2003.)

Kan. Admin. Regs. § 112-4-2 Inspection of license

Each commissioner or representative of the commission, and each organization, facility manager or facility owner licensee is hereby designated by the commission as an agent of the commission for purposes of inspecting the license of any person located in a restricted area at a racetrack facility. Each commissioner or representative of the commission, and each organization, facility manager or facility owner licensee is hereby designated by the commission as an agent of the commission for purposes of inspecting the documents relating to any horse or greyhound at the racetrack facility.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989.)

Kan. Admin. Regs. § 112-4-3 Knowledge of the law and regulations

Each licensee, to maintain qualifications for any license held, shall know the provisions of the Kansas parimutuel racing act, the requirements of these racing regulations, and each amendment to the law and regulations relating to the licensee's occupation license.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8816; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-22-89, Aug. 22, 1989; amended Oct. 9, 1989.)

Kan. Admin. Regs. § 112-4-4 Certain prohibited licenses

(a) The stewards or racing judges, with the approval of the commission, may prohibit an applicant from holding an occupation license when, in the opinion of the stewards or racing judges, a conflict of interest is created that reflects adversely on the honesty and integrity of racing.

(b) No commission-licensed veterinarian, racing official, or photo finish operator shall be licensed as an owner.

(d) No commission-licensed leadout or patrol judge shall be licensed as a greyhound owner.

(e) No person shall be licensed in any capacity that may constitute a licensing conflict. The fact that persons are married shall not, in and of itself, constitute a licensing conflict. If the stewards or racing judges are concerned that a conflict of interest may exist, they shall conduct a hearing concerning the potential conflict. They shall draft findings of fact and issue a licensing recommendation to the commission concerning the potential conflict.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804(p); implementing K.S.A. 1990 Supp. 74-8804(p), K.S.A. 1990 Supp. 74-8816; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-22-89, Aug. 22, 1989; amended Oct. 9, 1989; amended, T-112-12-30-91, Dec. 30, 1991; amended March 23, 1992.)

Kan. Admin. Regs. § 112-4-4a Crossover employment prohibited, exceptions

(a) For purposes of these regulations, "crossover employment" shall mean a situation in which an occupation licensee is concurrently employed at the same racing facility by an organization licensee and a facility owner licensee or facility manager licensee.

(b) Occupation licensees employed by organization licensees, facility owner licensees or facility manager licensees shall not engage in crossover employment except that:

(1) An employee of an organization licensee, facility owner licensee or facility manager licensee may crossover between internal departments of the same licensee upon the advance written approval of the stewards or racing judges and a finding that such crossover does not create a conflict of interest or violation of K.A.R. 112-4-4; and

(2) an employee of an organization licensee, facility owner licensee or facility manager licensee may crossover between licensees upon the advance written approval of the stewards or racing judges and a finding that such crossover does not create a conflict of interest or violation of K.A.R. 112-4-4.

(1) between employees of the racing department and employees of the mutuels department;

(2) between employees of the racing or mutuels departments and horse or greyhound owners, trainers, operators or employees thereof;

(3) between employees of the security department and horse or greyhound owners, trainers, operators or employees thereof; or

(4) in any capacity or combination of subsections (1), (2) and (3) above that may, in the opinion of the stewards or racing judges, constitute a licensing conflict as provided in K.A.R. 112-4-4.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1994 Supp. 74-8804; implementing K.S.A. 1994 Supp. 74-8810, K.S.A. 1994 Supp. 74-8813, K.S.A. 74-8815 and 74-8816; effective March 1, 1996.)

Kan. Admin. Regs. § 112-4-4b Prohibited license activity

(a) The racing judges or stewards, with the approval of the commission, may prohibit an occupation licensee from performing activities not related to the licensee's occupation license when, in the opinion of the racing judges or stewards, such activity reflects adversely on the honesty and integrity of racing.

(b) No occupation licensee licensed as a kennel owner shall act in the capacity of trainer unless properly licensed to do so.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1995 Supp. 74-8804; implementing K.S.A. 1995 Supp. 74-8810 and K.S.A. 74-8816; effective Nov. 22, 1996.)

Kan. Admin. Regs. § 112-4-5 License identification requirements

(a) Each license applicant shall provide identifying personal information including the following:

(1) Full name;

(2) permanent address, including zip code;

(3) type of license;

(4) date of application; and

(5) date of birth.

(b) Each license shall be color-coded to identify the occupation and the individual's eligibility to enter restricted areas. While present in restricted areas of the racetrack facility, each license holder, except jockeys riding in a race and other licensees approved by the stewards or racing judges, shall attach the current license to an outer garment in a prominent position.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804(p), as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; implementing K.S.A. 1991 Supp. 74-8816, as amended by L. 1992, Ch. 286, Sec. 8; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-22-89, Aug. 22, 1989; amended Oct. 9, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-4-6 License subject to conditions and agreements

(a) Each license issued to a licensee by the commission shall remain the property of the commission.

(b) Possession of a license shall not confer any right upon the holder to employment at a racetrack facility.

(c) Each licensee shall immediately return the occupation license to the commission office at the racetrack facility when the employment requiring a commission license is terminated.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804(p), as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; implementing K.S.A. 1991 Supp. 74-8816, as amended by L. 1992, Ch. 286, Sec. 8; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-4-7 Changes in application information

Each licensee or applicant for a license shall report immediately and in writing any change in license or application information to the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989.)

Kan. Admin. Regs. § 112-4-8 Examinations

(a) Any applicant for an occupation license may be required to demonstrate knowledge, qualifications and proficiency related to the license for which application is made through an examination approved by the commission or its designee.

(b) Unless otherwise authorized by the stewards or racing judges, any unsuccessful license examination applicant may be retested at 30 days following the first failure and six months following the second failure. Applicants failing the examination on the third attempt shall be ineligible for licensure for that license during that calendar year.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804(p), as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; implementing K.S.A. 1991 Supp. 74-8816, as amended by L. 1992, Ch. 286, Sec. 8; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-22-89, Aug. 22, 1989; amended Oct. 9, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-4-9 Financial responsibility of applicants

Upon request of the commission, each applicant for a license as a horse or greyhound owner or trainer shall submit satisfactory evidence of financial ability to care for and maintain the racing animals owned or trained, or both, by the owner or trainer.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; implementing K.S.A. 1987 Supp. 74-8816, as amended by L. 1988, Ch. 316, Sec. 4; effective, T-112-1-19-89, Jan. 19, 1989, effective April 10, 1989.)

Kan. Admin. Regs. § 112-4-9a Financial responsibility of licensee

Each commission licensee who purchases food, shelter, medications, transportation, veterinary services, supplies, or any other item or service, for use in the licensee's racing operation and who fails to pay for the services or goods or writes a worthless check at a licensed racing facility shall be guilty of conduct detrimental to the best interests of racing and may be subject to license suspension or revocation. The burden to prove that debts are owed shall be on the person bringing the charges. This regulation shall not obligate the commission to collect debts owed by licensees.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8816 and 74-8825; effective, T-112-8-13-92, Aug. 13, 1992; effective, T-112-12-10-92, Dec. 10, 1992; effective Feb. 15, 1993; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-4-10 Physical examination

As a condition of licensure, each person who is mounted on a race horse or driving a race horse within the enclosure or riding in a race shall submit proof of a satisfactory physical examination given by a licensed physician within the previous 12 months. As required in K.A.R. 112-7-20 and K.A.R. 112-14-10, the physical examination shall include visual acuity and hearing examinations. A reexamination of any jockey or driver may be required by the commission or the stewards at any time. Any jockey or driver may be prohibited from riding or driving by the commission or the stewards until the jockey or driver has successfully passed each examination.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804 (p); implementing K.S.A. 1988 Supp. 74-8816; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-22-89, Aug. 22, 1989; amended Oct. 9, 1989.)

Kan. Admin. Regs. § 112-4-11 Qualifications for jockey

(a) Each person granted a jockey occupation license shall:

(1) Be at least 16 years old; and

(2) weigh no more than 130 pounds.

(b) In thoroughbred races, each applicant for a jockey license shall have completed the requirements for apprentice jockey.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804; implementing K.S.A. 1988 Supp. 74-8816; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-22-89, Aug. 22, 1989; amended Oct. 9, 1989.)

Kan. Admin. Regs. § 112-4-12 Qualifications for apprentice jockey

(a) Any person who has ridden fewer than 40 winners or who has ridden for less than three years since first being licensed in any racing jurisdiction, and who otherwise meets the license qualifications of a jockey, may qualify as an apprentice jockey if the applicant completes satisfactory rides in at least two races under the observation of the stewards. Any apprentice jockey may be granted an apprentice certificate issued by the stewards and filed with the commission in replacement of a traditional apprentice contract.

(b) Each contract and transfer of contract shall be approved by the stewards and filed with the commission. Each contract employer shall not have any interest in the earnings of an apprentice jockey. Racetrack or commission officials and their licensed assistants and employees shall not directly or indirectly buy or sell any contract upon any jockey or apprentice jockey for themselves or any other person.

(c) In thoroughbred races, each apprentice jockey shall ride with a five-pound weight allowance beginning with the apprentice jockey's first mount. Each apprentice jockey's five-pound weight allowance shall:

(1) Continue for a one-year period beginning on the date of the apprentice jockey's fifth winning mount;

(2) continue for a second one-year period beginning on the date the initial one-year period expires if the apprentice jockey has not accumulated a total of 40 winning mounts from the date of the apprentice jockey's first winning mount; and

(3) then terminate:

(A) Upon the expiration of the second one-year period; or

(B) during the second one-year period when the apprentice jockey accumulates a total of 40 winning mounts from the date of the apprentice jockey's first winning mount, whichever first occurs.

(d) Only the results from thoroughbred races at authorized race meetings in the United States, Canada or Mexico that are reported in the daily racing form or other recognized racing publications approved by the commission shall be considered in determining license eligibility for apprentice jockeys.

(e) If an apprentice jockey is unable to ride for a period of 14 consecutive days or more after the date of the apprentice jockey's fifth winning mount because of service in the armed forces of the United States or because of physical disability, the time during which the apprentice weight allowance may be claimed may be extended by the commission for a period not to exceed the period the apprentice jockey was unable to ride.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; implementing K.S.A. 1991 Supp. 74-8816, as amended by L. 1992, Ch. 286, Sec. 8; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-4-13 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; implementing K.S.A. 1987 Supp. 74-8816, as amended by L. 1988, Ch. 316, Sec. 4; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; revoked, T-112-8-13-92, Aug. 13, 1992; revoked, T-112-12-10-92, Dec. 10, 1992; revoked Feb. 15, 1993.)

Kan. Admin. Regs. § 112-4-14 Program trainer

(a) Each regular trainer prevented from performing the trainer's duties, including responsibility for the condition of the horses in the trainer's care, by illness or other cause, or who is absent from any competition where horses under the trainer's care are entered and stabled, shall immediately notify the chief steward. At the same time, the trainer shall appoint a substitute trainer. Each substitute trainer's name shall be placed on the entry blank. After the appointment, each substitute trainer shall be equally responsible with the regular trainer for the condition of the horses in the substitute trainer's care.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; implementing K.S.A. 1987 Supp. 74-8816, as amended by L. 1988, Ch. 316, Sec. 4; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989.)

Kan. Admin. Regs. § 112-4-14a Trainer responsibility

(a) Each trainer of record shall be responsible for the following regarding each horse in that trainer's care, with regard to commission orders, regulations, and statutes:

(1) Eligibility;

(2) weight or other allowances claimed;

(3) physical fitness to perform credibly at the distance entered;

(4) absence of prohibited substances;

(5) proper shoeing, bandaging, and equipment;

(6) timely arrival in the paddock; and

(7) proper handling of the horse in the test barn.

(b) Each trainer shall be responsible for each positive test revealing any substance foreign to a horse in that trainer's care, unless the trainer can show by a preponderance of the evidence that neither the trainer nor any employee or agent of the trainer was responsible for or had knowledge of the administration of the substance causing the positive test.

(c) Each trainer shall be responsible for each puncture mark on a horse in that trainer's care, unless the trainer can show by a preponderance of the evidence that neither the trainer nor any employee or agent of the trainer was responsible for or had knowledge of an injection.

(d) Each trainer shall be responsible for the arrival of the horses in that trainer's care to the racetrack facility at least one hour before the first post time of the day on which the horse is entered to race.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8825; effective, T-112-8-22-89, Aug. 22, 1989; effective Oct. 2, 1989; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-4-14b Trainer responsibility

(a) Each trainer of record shall be responsible for greyhounds in the trainer's care as to:

(1) Eligibility;

(2) weight;

(3) physical fitness;

(4) absence of prohibited substances;

(5) proper equipment; and

(6) timely arrival in the paddock.

(b) Each trainer shall be held responsible for each positive test revealing any substance foreign to a greyhound in the trainer's care unless the trainer can show by a preponderance of the evidence that neither the trainer nor any employee or agent of the trainer was responsible for or had knowledge of the administration of the substance causing the positive test.

(c) Each trainer shall be held responsible for each puncture mark on a greyhound in the trainer's care unless the trainer can show by a preponderance of the evidence that neither the trainer nor any employee or agent of the trainer was responsible for or had knowledge of any injection.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1995 Supp. 74-8804; implementing K.S.A. 74-8816; effective March 25, 1991; amended Sept. 20, 1996.)

Kan. Admin. Regs. § 112-4-15 Suspended trainer engaged in the training of race horses under the parimutuel racing program of the state of Kansas

(a) Each spouse, parent, grandparent, brother, sister, child, grandchild, uncle, aunt, parent-in-law, brother-in-law or sister-in-law of a trainer engaged in the training of race horses under the parimutuel racing program of the state of Kansas, suspended by the commission or otherwise shall not assume any of the trainer's responsibilities, acts or duties during the term of the suspended trainer's suspension.

(b) Each individual assuming the responsibility for the care, custody or control of the horses of a suspended trainer shall not be paid a salary directly or indirectly by the suspended trainer during the term of the suspended trainer's suspension.

(c) Each trainer assuming the responsibility for the care, custody or control of the horses of a suspended trainer, during the period of the suspended trainer's suspension, shall:

(1) Not use the farm or individual name of the suspended trainer to bill customers;

(2) bill customers directly on the trainer's own bill forms for any services rendered;

(3) maintain a separate account from the suspended trainer for deposits and payments of expenses, including wages of employees;

(4) maintain records of withholding of taxes and deductions from employee pay checks;

(5) maintain records of invoices for all expenses paid during the term of the suspension;

(6) have a written lease, approved by the commission, for the use of any equipment of the suspended trainer;

(7) make no payments of any kind to the suspended trainer, the suspended trainer's family as listed in subsection (a) of this regulation or any entity owned or controlled by the above parties, or to any other person for transfer of right to race, coach or train any of the suspended trainer's horses;

(8) not borrow funds from a suspended trainer or the suspended trainer's family as listed in subsection (a) of this regulation or any entity owned or controlled by the above parties for the purpose of going into the business of training; and

(9) not allow a suspended trainer, the suspended trainer's family as listed in subsection (a) of this regulation, or any entity owned or controlled by the above parties to sign any notes or loans for the trainer for the purpose of going into the business of training.

(d) Any suspended trainer and any trainer taking over the horses of a suspended trainer may be requested to deliver books, canceled checks, invoices, tax returns and other evidence to the commission to prove the details of any relationship between trainers and suspended trainers.

(e) Each suspended trainer found to have engaged in the responsibilities, acts or duties of a trainer during the term of the suspended trainer's suspension shall be subject to a second suspension, or fine, or both, which shall be consecutive to and in addition to the first term of suspension or fine or both.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804, 74-8816; implementing K.S.A. 1988 Supp. 74-8816; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-4-16 Qualifications for license as a horse owner

(a) Each applicant for a horse owner license shall:

(1) Own a record of a properly registered race horse that the horse owner licensee applicant intends to race in Kansas;

(2) have the race horse in the care of a licensed trainer; and

(3) have an interest in the race horse as part owner or lessee or managing owner of a corporation, syndicate or partnership that is the legal owner of the race horse; or

(4) intend to claim a horse by open claim as authorized by K.A.R. 112-7-15.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; implementing K.S.A. 1991 Supp. 74-8816, as amended by L. 1992, Ch. 286, Sec. 8; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-4-17 Horse ownership by lease

Any leased horse may be raced if a completed lease form that includes the information required by the commission is attached to the registration certificate and is on file with the racing secretary. Each lessor and lessee shall be licensed as a horse owner. Each lease arrangement shall not be made for the purpose of avoiding insurance requirements or commission regulations.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; implementing K.S.A. 1991 Supp. 74-8816, as amended by L. 1992, Ch. 286, Sec. 8; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-4-18 Greyhound ownership by lease

Any leased greyhound may be raced if a completed lease form that includes the information required by the commission is attached to the registration certificate and is on file with the director of racing. Each lessor and lessee shall be licensed as a greyhound owner. No lease arrangement shall be made for the purpose of avoiding insurance requirements or commission regulations.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; implementing K.S.A. 1991 Supp. 74-8816, as amended by L. 1992, Ch. 286, Sec. 8; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-4-19 Horse or greyhound ownership by corporation, partnership, syndicate or other association or entity

(a) If the legal owner of any horse or greyhound is a corporation, partnership, syndicate or other association or entity, each shareholder or partner shall be licensed as a horse or greyhound owner unless the stewards, racing judges or the commission determine upon a showing of just cause that the best interests of racing dictate that not all shareholders or partners should be licensed.

(b) Each corporation, partnership, syndicate, or other association or entity that owns a horse or greyhound at a racetrack facility shall file the following information with the commission:

(1) Organizational documents for the entity identifying each shareholder by name and mailing address including zip code;

(2) relative proportion of ownership interest;

(3) terms of sale with contingencies, arrangements or leases;

(4) documents declaring to whom winnings are payable and under what name the horse or greyhound shall be run; and

(5) the name and address including zip code of each licensed person or persons who assumes all responsibilities as owner of the horse or greyhound.

(c) No part owner of any horse or greyhound shall assign an ownership interest without the written consent of the other partners. The assignor shall file each written consent with the commission.

(d) Each corporation, partnership, syndicate or other association or entity that owns a horse or greyhound shall register annually the information required by the regulations and pay the required fee or fees for the appropriate entity.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; implementing K.S.A. 1991 Supp. 74-8816, as amended by L. 1992, Ch. 286, Sec. 8; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-22-89, Aug. 22, 1989; amended Oct. 2, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-4-20 Stable name registration

(a) Each person who proposes to use a stable name shall annually register the stable name with the commission and shall pay the required fee. Each horse owned in whole or in part by the same person shall be run under the stable name.

(b) Each applicant shall disclose the identity or identities of each person using the stable name.

(c) Each change in stable name shall be reported immediately to the commission and approval obtained from the commission before the name is used.

(d) The commission shall be provided written notice of each cancellation of a stable name.

(e) Any person may change a stable name by registering a new stable name and by paying the required fee.

(f) Each stable name shall be clearly distinguishable from that of another registered stable name.

(g) Each stable name and the name of the owner or managing owner shall be published in the official racing program. If the stable name includes more than one person, the official program shall list the name of the managing owner along with the phrase "et al."

(h) If a partnership, corporation, syndicate or other association or entity proposes to use a stable name, it shall comply with commission regulations governing multiple ownership including any payment of fees in addition to fees for the registration of a stable name.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-22-89, Aug. 22, 1989; amended Oct. 9, 1989.)

Kan. Admin. Regs. § 112-4-21 Kennel name registration

(a) Each person who proposes to use a kennel name shall register the kennel name with the commission.

(b) The applicant shall disclose the identity or identities of every person using the kennel name.

(c) As long as a kennel name is registered, no individual using that kennel name shall register or use any other name or kennel name for racing purposes.

(d) A kennel name may be changed by registering a new kennel name.

(e) No person shall register a kennel name that has been previously registered with any organization licensee.

(f) Each kennel name shall be clearly distinguishable from all other registered kennel names.

(g) If a partnership, corporation, syndicate or other association or entity proposes to use a kennel name, it shall comply with commission regulations governing multiple ownership, including any payment of fees.

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History

History: (Authorized by K.S.A. 1989 Supp. 74-8804; implementing K.S.A. 1989 Supp. 74-8816; effective March 25, 1991.)

Kan. Admin. Regs. § 112-4-21a Kennel owner license

(a) Each applicant for a kennel owner license shall:

(1) be the owner or partial owner of a kennel registered pursuant to K.A.R. 112-4-21; and

(2) have a current kennel contract with an organization licensee.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-8-13-92, Aug. 13, 1992; effective, T-112-12-10-92, Dec. 10, 1992; effective Feb. 15, 1993.)

Kan. Admin. Regs. § 112-4-22 Licensing required

(a) Each person shall complete all license procedures required by the commission before that person assumes any duties at a racetrack facility except as follows.

(b)(1) Any trainer or assistant trainer may apply for a 30-day license on behalf of an absentee horse owner and pay the required application fees. Each horse owned by an absentee horse owner shall be permitted only one start during the 30-day period. Each absentee horse owner shall complete the licensing procedure before the 30-day license expires. No organization licensee shall pay purse money to the absentee horse owner until the owner secures a permanent horse owner's license.

(2) If the permanent horse owner's license is not secured within 30 days, the trainer, assistant trainer, or absentee owner may be penalized by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804; implementing K.S.A. 1996 Supp. 74-8816; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended, T-112-8-22-89, Aug. 22, 1989; amended Oct. 9, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended May 1, 1998.)

Kan. Admin. Regs. § 112-4-22a Registrations required

(a) Any corporation, partnership, syndicate, stable, or other association or entity owning a horse shall register the entity with the commission before racing in a parimutuel race except as follows.

(b)(1) Any trainer or assistant trainer may apply for a 30-day temporary registration on behalf of the absentee legal owner owning a horse at a racetrack facility and pay the required fees. Each horse owned by an entity with a temporary registration shall be permitted only one start during the 30-day period. The managing owner of the entity with this temporary registration shall complete the registration procedure before the 30-day registration expires. No organization licensee shall pay purse money to any such registered entity or managing owner until a permanent registration is secured.

(2) If the permanent registration is not secured within 30 days, the trainer, assistant trainer, or persons having an interest in the entity with the temporary registration may be penalized by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804; implementing K.S.A. 1996 Supp. 74-8816; effective May 1, 1998.)

Kan. Admin. Regs. § 112-4-23 Conduct

No person shall perform any of the following: (a) engage in any conduct that by its nature is unsportsmanlike or detrimental to the best interests of racing;

(b) willfully ignore, refuse to comply, or interfere with verbal or written orders of a racing official or commission employee or representative in the performance of official duties; or

(c) threaten or use abusive or profane language when addressing a racing official, licensee, or commission employee or representative.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1997 Supp. 74-8804 and 74-8816; effective, T-112-8-13-92, Aug. 13, 1992; effective, T-112-12-10-92, Dec. 10, 1992; effective Feb. 15, 1993; amended May 15, 1998.)

Kan. Admin. Regs. § 112-4-24 Qualifications for amateur jockey

Each person granted an amateur jockey occupation license shall:

(a) be at least 16 years old;

(b) meet all qualification rules for membership to the amateur riders' club of the Americas (ARCAS) as currently contained in the membership application form amended in December 1992;

(d) weigh no more than 142 pounds;

(e) not hold a current license as a jockey or apprentice jockey;

(f) submit proof of a satisfactory physical examination given by a person licensed to practice medicine and surgery within the previous 12 months. As required by K.A.R. 112-7-20 and K.A.R. 112-14-10, the physical examination shall include visual acuity and hearing examinations. A reexamination of any amateur jockey may be required by the commission or the stewards at any time. An amateur jockey may be prohibited from riding by the commission or the stewards until the jockey has successfully passed each examination;

(g) wear properly fastened safety helmets while mounted on a race horse within the enclosure or riding in a race; and

(h) meet all licensing requirements stated in these racing regulations.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1992 Supp. 74-8804; implementing K.S.A. 1992 Supp. 74-8816; effective, T-112-7-22-93, July 22, 1993; effective Oct. 25, 1993.)

Kan. Admin. Regs. § 112-4-25 Qualifications for license as a greyhound owner

Each applicant for a greyhound owner license shall:

(1) possess a record of a properly registered greyhound, eligible to race, that the applicant intends to race in Kansas;

(2) have the greyhound in the care of a licensed trainer; and

(3) have an interest in the greyhound as owner, part owner or lessee, or managing owner of a corporation, syndicate or partnership that is the legal owner of the greyhound.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804 and implementing K.S.A. 74-8816; effective Sept. 6, 1994.)

Kan. Admin. Regs. § 112-4-26 Denial of an occupation license

(a) Except as provided in K.A.R. 112-6-1 et seq., all proceedings relating to the denial, suspension, or revocation of an occupation license shall be conducted in accordance with the Kansas administrative procedure act, K.S.A. 77-501 et seq.

(b) As used in K.S.A. 74-8816(e)(3) the phrase "qualified to perform the duties associated with the license being applied for" shall in the case of all occupation license applicants include the requirement that such applicant shall have no present or prior activities, criminal record, or reputation, habits, or associations that meet either of these conditions:

(1) pose a threat to the public interest or to the effective regulation of parimutuel racing or wagering; or

(2) create or enhance the dangers of unsuitable, unfair, or illegal practices in the conduct or parimutuel racing or wagering.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804; implementing K.S.A. 1996 Supp. 74-8816; effective July 25, 1997.)

Article 5 Race Track Officials

Kan. Admin. Regs. § 112-5-1 Horse racetrack officials and backup officials; prohibited interests; responsibility; accountability; identification and approval; unavailability

(a) Unless otherwise ordered by the commission, the racetrack officials at each race meet for horses shall be the following:

(1) The starter;

(2) the paddock judge;

(3) the patrol judges;

(4) the placing judges;

(5) the clerk of scales;

(6) the racing secretary;

(7) the mutuel manager;

(8) the horsemen's bookkeeper;

(9) the identifier;

(10) the general manager; and

(11) any backup to any of these positions.

(b) An individual, and any member of the individual's family as defined in K.S.A. 74-8810(c) and amendments thereto, who owns a horse or has a financial interest in a horse entered at a race meet, shall not serve as a racetrack official at the meet. A lessee or lessor of a horse shall be deemed to have a financial interest in the horse.

(c) Each racetrack official shall be strictly responsible to the commission for the performance of that official's duties and shall promptly report to the commission or the stewards any violation of the regulations of which the official has knowledge. Each racetrack official who fails to perform the official's duties shall be discharged by the stewards.

(d) Each employee of the racing and mutuel departments at a racetrack facility shall be an employee of the organization licensee and shall be accountable to the board of directors of the organization licensee. An organization licensee or facility manager licensee shall not, either by contract or agreement, diminish the organization licensee's ultimate responsibility to conduct the races and the parimutuel system of wagering. However, any organization licensee may execute a contract or agreement with a facility manager licensee that permits the delegation of day-to-day management over the conduct of races and the parimutuel system of wagering.

(e) Each racetrack official and each backup racetrack official shall be approved by the stewards and the commission before the official assumes any race meet duties. Each organization licensee shall submit a list identifying each racetrack official and each backup racetrack official to the commission at least 30 days before the first day of the race meet for which the racetrack officials are to serve.

(f) Notwithstanding the provisions of K.A.R. 112-3-19(c), if a racetrack official is unavailable or unable to serve at a particular performance, and no backup racetrack official is available to serve, the organization licensee shall appoint a substitute, subject to the approval of the stewards, to serve for that performance only.

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History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8813 and K.S.A. 74-8818; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 19, 1990; amended Aug. 9, 1996; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-5-2 Commission officials, stewards

(a) Each licensee and each individual attending horses during a race meet shall conduct the licensee's and individual's activities under the general authority and supervision of the stewards. The stewards may interpret any of these racing regulations, and the stewards may order any appropriate action not expressly authorized by these racing regulations in order to ensure a fair race and to protect the best interests of racing.

(b) The stewards shall determine each matter regarding entry, eligibility and racing. The stewards shall supervise each entry, declaration and scratch.

(c) If a vacancy occurs among the stewards, the chief steward shall immediately appoint a substitute. If the chief steward is absent, the senior associate steward shall make the appointment. The stewards shall immediately report each substitution to the commission office.

(d) The stewards' jurisdiction over any matter shall commence 72 hours before any entry is taken for the first day of racing at the meet and shall extend until 30 days after the last day of the meet. If a dispute arises during a race meet that is not settled within the stewards' 30-day jurisdiction, the authority of the stewards may be extended by the commission until the matter is resolved or until it is referred or appealed to the commission.

(e) Any occupation licensee may be penalized by the stewards or the commission in accordance with the Kansas parimutuel racing act and the Kansas administrative procedure act. At the direction of the commission, all of the stewards, or any of them, may conduct summary adjudicative hearings in accordance with the Kansas administrative procedure act.

(f) The steward shall immediately report each penalty to the commission.

(g) The stewards may suspend any horse from participating in races for a period of time determined by the stewards if the horse does not meet the requirements of, or has been involved in any violations of these racing regulations or any provisions of the Kansas parimutuel racing act.

(h) Any matter within the jurisdiction of the stewards may be referred by the stewards to the commission with or without recommendation.

(i) The stewards shall maintain a detailed written account of each question, dispute, protest, complaint and objection. The stewards shall prepare and submit a daily report to the executive director within 72 hours of the race date that is the subject of the report. The report shall detail each raceday's activities, including:

(1) each foul and disqualification;

(2) each disciplinary hearing;

(3) each suspension;

(4) the conduct of each race;

(5) each interruption and delay; and

(6) the condition of the racetrack facility.

(j) A qualified person shall test or examine each horse that has entered a race or that has run in a race when ordered by the stewards. The stewards may examine any ownership papers, certificates, documents of eligibility, contracts or leases pertaining to any horse at the racetrack facility.

(k) If the stewards determine a race or races cannot be conducted in accordance with the regulations, the stewards shall cancel that race or those races. If a mechanical failure or any interference during the running of any race affects the horses in the race, the stewards may declare the race a no contest. If no horse covers the course of the race, the stewards shall declare the race a no contest.

(l) Any horse's trainer may select a substitute jockey if the jockey who is named to ride the horse in a race is unable to fulfill the jockey's engagement and is excused by the stewards. Each trainer shall secure a jockey for the trainer's entered horse. If no substitute jockey is available, the stewards may scratch the horse from the race. If the stewards scratch a horse, no individual shall be entitled to any refund of nomination, sustaining, penalty payments or entry fees. The stewards may place any horse in the temporary care of any trainer the stewards select if the trainer of a horse is absent. However, the owner and the substitute trainer shall approve the horse's entry or competition in a race before the horse is allowed to enter or race. Each substitute trainer shall sign the entry card.

(m) The stewards shall maintain a list that identifies the horses that are ineligible to be entered in any race because of poor or inconsistent performance, which includes but is not limited to failing to maintain a straight course or causing a hazard to the safety of any participant. The steward shall refuse entry to each horse on the stewards' list until the horse has demonstrated to the stewards or their representatives that the horse can race safely.

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History

History: (Authorized by K.S.A. 1994 Supp. 74-8804, as amended by L. 1995, Ch. 255, Sec. 8; implementing K.S.A. 1994 Supp. 74-8804, as amended by L. 1995, Ch. 255, Sec. 8, 1994 Supp. 74-8818 and 74-8816; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 19, 1990; amended March 8, 1996.)

Kan. Admin. Regs. § 112-5-3 The starter

(a) Each starter shall have complete jurisdiction over the starting gate and the starting of each horse. Any starter may issue orders to ensure each participant an equal opportunity to a fair start.

(b) Each starter shall appoint assistants. However, the starter shall not permit the assistants to handle or take charge of any horse in the starting gate without the starter's express permission. If the assistant starters are unavailable to head a horse, the horse's trainer shall be responsible to provide qualified individuals to head or tail a horse in the starting gate. Each starter shall establish qualifications for and maintain a list of qualified individuals approved by the stewards who may head or tail a horse in the starting gate. Each assistant starter or individual handling a horse at the starting gate shall not impede the start of the race, whether intentionally or otherwise. Only the jockey, starter, assistant starter or header handling the horse at the starting gate may be permitted to strike a horse in an attempt to load the horse in the starting gate. Only each jockey shall slap, boot or otherwise attempt to dispatch the horse the jockey is riding from the starting gate.

(c) Each starter shall maintain a starter's list of each horse that is ineligible to be entered in any race because of poor or inconsistent performance in the starting gate. Each horse on the starter's list shall be refused entry until it has demonstrated to the starter or the starter's representative that it has been satisfactorily schooled in loading in the gate. Each starter or the starter's representative shall directly supervise the schooling.

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History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-5-4 Paddock judge

(a) Each paddock judge shall exclude from the paddock each person who has no official business with any horse entered.

(b) Each paddock judge shall supervise the assembling of the horses scheduled to race, the saddling of horses in the paddock, the mounting of the jockeys and their departure for the post.

(c) Each paddock judge shall keep a record of all equipment carried by each horse in each race under the paddock judge's jurisdiction. Equipment carried by each horse shall not be changed without prior approval of the stewards. At the request of the stewards, each paddock judge shall report the equipment carried by any horse.

(d) Before each race, each paddock judge shall require the plater in attendance at the paddock to examine each horse entered and to determine whether the horse is properly shod. Each paddock judge shall report the findings of the plater immediately to the stewards.

(e) Any paddock judge may permit a horse to be lead to the post by a properly licensed pony person.

(f) Each paddock judge shall report any irregularity to the stewards.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by 1988 HB 2774, Sec. 3; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989.)

Kan. Admin. Regs. § 112-5-5 Patrol judges

(a) The stewards shall determine the number of patrol judges needed for the orderly conduct of the race meet and shall direct the placing of the patrol judges at points of vantage about the racetrack subject to the approval of the commission.

(b) Each patrol judge shall be subject to the orders of the stewards and shall report to the stewards any incident affecting the conduct of a race that they observe.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by 1988 HB 2774, Sec. 3; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989.)

Kan. Admin. Regs. § 112-5-6 Placing judges and timers

(a) Each placing judge and timer shall occupy the judges' or stewards' stand when the horses pass the finish line. The placing judges and timers shall hand time, place the horses in correct order of finish and report the results of the race. In case of a dead heat or a disagreement about the correct order of the finish, the decision of the stewards shall be final. If an objection is made and sustained against the winner or any horse placed within the purse, this regulation shall not prevent the placing judges from correcting any mistake subject to confirmation by the stewards.

(b) If the placing judges disagree about the order of finish, the placing judges shall inspect a photograph of the finish. A determination by a majority of the placing judges shall establish the order of finish, and that determination shall be final. If the winning range is less than half a length, or if the horses are widely spaced across the track, a photograph of the finish shall be inspected by the placing judges and an identical copy shall be posted for public observation.

(c) Each placing judge shall consider only the position of the horses' noses when determining the most forward point of progress.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by 1988 HB 2774, Sec. 3; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989.)

Kan. Admin. Regs. § 112-5-7 Clerk of scales

(a) Each clerk of scales shall be responsible for the presence of each jockey in the jockey room at the appointed time and shall verify that each jockey has a current occupation license.

(b) Each clerk of scales shall have the scales checked for accuracy by a certified person before the beginning of the race meet and at least once each 30 days thereafter during the race meet.

(c) Each clerk of the scales shall verify the correct weight of each jockey at weighing-out and weighing-in and shall immediately report any discrepancy to the stewards.

(d) Each clerk of scales shall be responsible for the security of the jockeys' room, the conduct of the jockeys and the conduct of the jockey attendants.

(e) Each clerk of scales shall:

(1) Promptly report to the stewards each infraction of the regulations pertaining to weight, weighing, riding equipment or conduct;

(2) provide an accounting of all data required on the scale sheet and submit that data to the "horsemen's bookkeeper" at the end of each race day;

(3) maintain the record of applicable winning races on each apprentice certificate at the meet; and

(4) release the apprentice certificate to the apprentice jockey at the close of the meet or upon the apprentice jockey's departure.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by 1988 HB 2774, Sec. 3; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989.)

Kan. Admin. Regs. § 112-5-8 Racing secretary

(a) Each racing secretary shall write and publish conditions of each race and shall distribute them to "horsemen" as far in advance of the closing of entries as possible. The racing secretary shall submit the first condition book for each race meeting to the commission for approval 30 days before printing.

(b) Each racing secretary shall be responsible for safe keeping of the registration certificates during the race meet and shall return the certificates to the trainers on request or at the conclusion of the race meet. The racing secretary shall record the winning races for the horses on the forms supplied by the breed registry, which shall remain attached to the registration certificate.

(c) Each racing secretary shall maintain a list of horses stabled at the racing facility and the stalls assigned to each trainer. Each racing secretary shall update the list daily and provide a copy of the most current list to the stewards and the commission's security director each week.

(d) Each trainer shall maintain a record of the stall location of each horse in the trainer's care. The trainer shall provide this information to the commission upon request.

(e) The racing secretary shall:

(1) Take entries;

(2) check eligibility;

(3) close entries;

(4) select the races to be drawn;

(5) conduct the draw;

(6) post the overnight sheet;

(7) compile the official program; and

(8) discharge such other duties as required by the regulations or directed by the stewards.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-5-9 The identifier

(a) The identifier shall identify each horse starting in a race. Each identifier shall inspect documents of ownership, eligibility, registration or breeding as may be necessary to ensure proper identification of each horse that is eligible to compete in a race meet.

(b) Each identifier shall immediately report to the paddock judge and the stewards each horse that is not properly identified or any irregularities reflected in the official identification records.

(d) The identifier shall report to the stewards and to the commission on general racing practices observed and shall perform other duties as the commission may require.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-5-10 The mutuel manager

(a) For purposes of these regulations, the mutuel manager shall be the individual who is responsible for overseeing the operations of the mutuel department and the money room.

(b) The mutuel manager shall have knowledge of all aspects of the Kansas racing commission rules and regulations pertaining to partimutuel wagering and shall perform the following duties:

(1) supervise all mutuel employees, including all mutuel tellers;

(2) be responsible for the training, scheduling and job performance of all mutuel employees;

(3) maintain efficient customer relations and oversee the services provided to patrons at the mutuel windows on a race by race basis;

(4) be responsible for working directly with the tote department in order to help oversee the tote operations and to assist in comparing prices and verifying mutuel payoffs; and

(5) report all pertinent parimutuel activity to the racing judges and stewards.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804; implementing K.S.A. 74-8816 and K.S.A. 1993 Supp. 74-8818; effective Sept. 6, 1994.)

Article 6 Race Track Officials

Kan. Admin. Regs. § 112-6-1 Greyhound racetrack officials and backup officials; prohibited interests; responsibility; accountability; identification and approval; unavailability

(a) Unless otherwise ordered by the commission, racetrack officials at a race meet for greyhounds shall be as follows:

(1) The director of racing;

(2) the mutuel manager;

(3) the paddock judge;

(4) the kennel master;

(5) the clerk of scales;

(6) the starter;

(7) the lure operator;

(8) the chartwriter;

(9) the racing secretary;

(10) the general manager; and

(11) any backup to any of these positions.

(b) An individual or a member of an individual's family, as defined in K.S.A. 74-8810(c) and amendments thereto, who owns a greyhound or has a financial interest in a greyhound entered at a race meet, shall not serve as a racetrack official at the meet. A lessee or lessor of a greyhound shall be deemed to have a financial interest in the greyhound.

(c) Each racetrack official shall be strictly responsible to the commission for the performance of that official's duties and shall promptly report to the commission or the racing judges any violation of the regulations of which the official has knowledge. Each racetrack official who fails to perform the official's duties shall be discharged by the racing judges.

(d) Each employee of the racing and mutuel departments at a racetrack facility shall be an employee of the organization licensee and shall be accountable to the board of directors of the organization licensee. An organization licensee or facility manager licensee shall not, either by contract or agreement, diminish the organization licensee's ultimate responsibility to conduct the races and the parimutuel system of wagering. However, any organization licensee may execute a contract or agreement with a facility manager licensee that permits the delegation of day-to-day management of the conduct of races and the parimutuel system of wagering.

(e) Each racetrack official and each backup racetrack official shall be approved by the racing judges and the commission before the official assumes any race meet duties. Each organization licensee shall submit a list identifying each racetrack official and each backup racetrack official to the commission 30 days before the first day of the race meet for which the racetrack officials are to serve.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8813 and K.S.A. 74-8818; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 25, 1991; amended Sept. 6, 1994; amended Aug. 9, 1996; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-6-2 Commission officials, racing judges

(a) Each licensee and each individual attending greyhounds during a race meet shall conduct activities under the general authority and supervision of the racing judges. The racing judges may interpret any of these racing regulations, and the racing judges may order any appropriate action not expressly authorized by these racing regulations in order to ensure a fair race and to protect the best interests of racing.

(b) Each race day, any licensee who wishes to consult with the racing judges may do so at the offices of the racetrack facility.

(1) Two of the three racing judges shall be in attendance at least one-half hour before weighing in time.

(2) The third racing judge shall be in attendance at the racetrack facility at least one-half hour before post-time for the first official race.

(3) If all three of the racing judges are present in the judges' stand during a performance, one and only one racing judge may leave the judges' stand to supervise any racing-related matter as official duties may dictate.

(c) If a vacancy occurs among the racing judges, the chief judge may appoint a substitute in an emergency. If the chief judge is absent, the senior associate judge may make the appointment.

(1) The racing judges shall immediately report each substitute to the commission office.

(2) If a vacancy has occurred among the racing judges, and a substitute has not been appointed, the remaining two judges may conduct the business of the racing judges until the vacancy is filled in accordance with these racing regulations.

(d) The racing judges' jurisdiction over any matter shall commence 72 hours before any entry is taken for the first day of racing at the meet and shall extend until 30 days after the last day of the meet. If a dispute arises during a race meet that is not settled within the racing judges' 30-day jurisdiction, the authority of the racing judges may be extended by the commission until the matter is resolved or until it is referred or appealed to the commission.

(e) Any occupation licensee may be penalized by the racing judges or the commission in accordance with the Kansas parimutuel racing act and the Kansas administrative procedure act. At the direction of the commission, all of the racing judges, or any of them, may conduct summary adjudicative hearings in accordance with the Kansas administrative procedure act.

(f) The racing judges shall immediately report each penalty to the commission.

(g) The racing judges may excuse any greyhound that the racing judges determine is disabled or unfit to run.

(h) The racing judges may suspend any greyhound from participating in races for any period of time determined by the racing judges if the greyhound does not meet the requirements of, or has been involved in any violations of these racing regulations or any provisions of the Kansas parimutuel racing act.

(i) Any matter within the jurisdiction of the racing judges may be referred by the racing judges to the commission with or without recommendation.

(j) The racing judges shall maintain a detailed written account of each question, dispute, protest, complaint and objection. The racing judges shall prepare and submit a daily report to the executive director within 72 hours of the race date that is the subject of the report. The report shall detail each raceday's activities, including:

(1) each derogatory comment;

(2) each disciplinary hearing;

(3) each fine;

(4) each suspension;

(5) the conduct of each race;

(6) each interruption and delay; and

(7) the condition of the racetrack facility.

(k) A qualified person shall test or examine each greyhound that has entered a race or that has run in a race when ordered by the racing judges. The racing judges may examine any ownership papers, certificates, documents of eligibility, contracts or leases pertaining to any greyhound at the racetrack facility.

(l) If the racing judges determine that any race or races cannot be conducted in accordance with the regulations, the racing judges shall cancel that race or those races.

(m) The timing of each race shall be conducted by the racing judges as follows.

(1) The racing judges shall declare the official time of each race.

(2) The racing judges shall hand-time each race using a stopwatch that has been inspected and certified by a competent watchmaker.

(3) The racing judges shall time each race to 1⁄100th of a second.

(4) The timing of the race shall commence with the opening of the lids of the starting box.

(5) The racing judges shall declare the time shown on the official timing device as the official time of the race if the racing judges are satisfied that the timing device is functioning properly. If the racing judges are not satisfied, the racing judges shall use the time shown on the hand-held stopwatch.

(n) The racing judges shall determine the official winner and other respective positions in the order of finish. The racing judges shall consider only the relative position of the respective racing muzzles of the greyhounds to determine each place at the finish.

(o) If a greyhound loses its racing muzzle or finishes with a hanging muzzle, the racing judges shall consider only the relative position of the nose of the greyhound that finishes without its racing muzzle in respect to the racing muzzles of the other greyhounds in the race.

(p) In each race, the racing judges shall promptly display the number of the first three greyhounds in order of their finish. The racing judges shall also display the number of the greyhound finishing fourth. If the racing judges disagree about the order of finish, the majority shall prevail.

(q) If the racing judges wish to consult a picture from the photo finish camera, the placements the racing judges have agreed upon may be posted without waiting for a picture and, after consulting the picture, the racing judges may post any changes in placement. However, the racing judges shall not declare the race official until the racing judges have determined which greyhounds finished first, second and third.

(r) Nothing in these racing regulations shall prevent the racing judges from correcting an error before the official sign is displayed or from recalling the official sign in the event it has been displayed through error.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1994 Supp. 74-8804, as amended by L. 1995, Ch. 255, Sec. 8; implementing K.S.A. 1994 Supp. 74-8804, as amended by L. 1995, Ch. 255, Sec. 8, 1994 Supp. 74-8818 and 74-8816; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 25, 1991; amended Sept. 6, 1994; amended March 8, 1996.)

Kan. Admin. Regs. § 112-6-3 Director of racing

(a) The director of racing shall have general supervision over each owner, trainer and any other individual attendant on greyhounds.

(b) The director of racing shall have control over and free access to the racetrack facility.

(c) The director of racing shall determine all matters regarding eligibility, entries, withdrawals, scratches and the conduct of the races, except as those matters may be otherwise determined by the racing judges.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-8804; implementing K.S.A. 1989 Supp. 74-8804; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 25, 1991.)

Kan. Admin. Regs. § 112-6-4 The paddock judge and the kennel master

(a) Each paddock judge shall complete an identification card for each greyhound before it is entered for official schooling. Each paddock judge shall ensure that each greyhound conforms to the card index identification and shall report each discrepancy to the racing judges.

(b) Under the supervision of the paddock judge and in cooperation with the commission animal health officer, each kennel master shall unlock the lock-out kennels immediately before weigh-in time to see that the lock-out kennels are in safe and perfect repair and that nothing has been deposited in them for the greyhounds to consume. The kennel master shall see that the lock-out kennels are sprayed, disinfected, and kept in proper sanitary condition. The kennel master or the kennel master's assistants shall receive each greyhound from its trainer, one at a time, and see that the greyhound is placed in its crate. After the kennel master receives the greyhounds, the kennel master shall remain on duty at the lock-out kennel until each greyhound is removed for the last race.

(c) No paddock judge or paddock judge's assistant shall allow anyone to present a greyhound for weigh-in at an official schooling or an official race except the greyhound's kennel owner, trainer, licensed assistant, or licensed kennel helper, as designated on the kennel roster.

(d) As each greyhound is weighed in, each paddock judge, kennel master, or paddock judge's assistant shall ensure that an identification tag is attached to the greyhound's collar that indicates the number of the race in which the greyhound is entered and its post position. The tag shall not be removed until the greyhound has been weighed out and blanketed.

(e) After the greyhounds are placed in the lockout kennels, only the racing judges, the paddock judge, the kennel master, the animal health officer, the assistant animal health officers, or the lead outs shall enter the lock-out kennels. None of these individuals shall enter the lock-out kennels unaccompanied.

(f) Before the greyhounds leave the paddock for the starting box, each paddock judge or paddock judge's assistant shall carefully compare each greyhound with its identification card and shall determine that each greyhound is equipped with a regulation racing muzzle and blanket. The paddock judge or the paddock judge's assistant shall examine all muzzles and blankets to determine whether they are properly fitted before the greyhounds leave the paddock.

(g) The paddock judge shall assign lead outs to the respective post positions by lot before each racing program. However, if a greyhound is difficult to handle, the paddock judge may assign the greyhound to the particular lead out who is most capable of handling the greyhound, in the paddock judge's opinion. The paddock judge or the paddock judge's assistant shall maintain a written record of lead out assignments.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2001 Supp. 74-8804; implementing K.S.A. 2001 Supp. 74-8804; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 25, 1991; amended Jan. 31, 2003.)

Kan. Admin. Regs. § 112-6-4a Lead outs

(a) The lead out shall not be considered an official for purposes of these regulations.

(b)(1) Each licensee shall train lead outs in the scope and proper performance of duties before working official races.

(2) Each licensee shall properly train lead outs in the handling of greyhounds. This training shall include the following:

(A) The proper method of leading greyhounds;

(B) weighing of, placement in, and removal of greyhounds from lock-out kennels;

(D) placement in the starting box; and

(E) returning the greyhound to the kennel representative after the finish of a race.

(c)(1) A lead out shall not lead more than one greyhound from the paddock to the starting box during official purse races. More than one greyhound per lead out may be permitted upon application to the racing judges on a performance basis. In official schooling races, a lead out shall not lead more than two greyhounds from the paddock to the starting box.

(2) A lead out shall lead the greyhounds from the paddock to the starting box. Owners, trainers, or attendants shall not be allowed to lead any greyhound.

(3) Each lead out shall be assigned to a post position by lot by the paddock judge or paddock judge's assistant before each race or performance, and a record of that race or performance shall be maintained.

(d)(1) The lead out shall handle each greyhound in a humane manner and shall immediately report any infirmities or physical problems that the lead out observes in greyhounds under that individual's care to the nearest racing official, for notification to the commission veterinarian.

(2) The lead out shall be prohibited from holding any conversation with the public or with one another en route to the starting box unless pertaining to subsection (e) of this regulation.

(3) Each lead out shall be attired in a clean uniform, present a neat appearance, and act in an orderly manner.

(4) The lead out shall be prohibited from smoking unless that individual is 18 years of age or older and on a duly authorized break.

(5) The lead out shall be prohibited from smoking, drinking beverages other than water, or eating unless on a duly authorized break and in a designated area.

(e)(1) Once the first race of the performance has been removed from the lock-out kennel, each lead out shall remain in the restricted area of the paddock at all times except to accompany an assigned greyhound to the starting box.

(2) A lead out not on duty shall be prohibited from entering the paddock until the last race has left the paddock.

(3) A lead out shall not remove any racing blankets until the greyhounds are accepted by licensed kennel representatives at the conclusion of the race.

(f)(1) No lead out shall be permitted to have any interest in the greyhound racing for the licensee.

(2) The lead out shall be prohibited from wagering on the result of any greyhound racing at the racetrack where the lead out is assigned.

(g) Any individual found to be in violation of any of this regulation shall be subject to suspension, revocation, fine, or any combination, or any other action that the judges deem necessary.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1998 Supp. 74-8804; implementing K.S.A. 1998 Supp. 74-8816; effective Oct. 15, 1999.)

Kan. Admin. Regs. § 112-6-5 Clerk of scales

(a) Each clerk of scales shall monitor the weigh-in and weigh-out of each greyhound and shall post the accurate weight of each greyhound on the weight board for the information of the public. The established race weight, pre-post weight and track weight must be promptly posted or announced for the information of the public.

(b) Each clerk of scales shall keep a record of the weigh-in and the weigh-out weights and shall record any scratches and the reasons for them.

(c) Each clerk of scales shall be responsible for having the scales checked for accuracy by a certified person before each race meet. Each organization licensee shall equip the scales with a certified weight for the use of any interested person.

(d) Each clerk of scales shall promptly report to the racing judges each infraction of the regulations regarding weight or weighing.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-8804; implementing K.S.A. 1989 Supp. 74-8804; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 25, 1991.)

Kan. Admin. Regs. § 112-6-6 The starter

(a) Each starter shall give the orders and take the actions necessary to secure a fair start for the entries.

(b) Each greyhound shall be started from a starting box that is approved by the commission. Unless otherwise approved by the commission, the starting box shall consist of eight positions, and the starting box lid shall be opened by an automatic starting device.

(d) Each starter shall notify the racing judges if any greyhound appears to be disabled or unfit to run because of an accident that occurred before the greyhound was placed in the starting box.

(e) Each starting box to be used during a performance shall be tested before the first race of the performance.

(f) If the automatic starting device fails to operate properly, each starter shall make only one manual attempt to open the starting box. If the starting box does not open completely after the first manual attempt, the starter shall notify the racing judges immediately.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-6-7 The lure operator

(a) Each lure operator shall direct complete attention to the operation of the mechanical lure during each race meet. Each organization licensee shall provide the lure operator with a room as free as possible from any disturbance that may distract the lure operator during the conduct of duties.

(b) Each lure operator shall run a consistent lure at all times and shall immediately report to the racing judges each circumstance that may prevent the running of a consistent lure.

(c) The lure operator shall run the mechanical lure completely around the racing strip at least twice prior to the first post time to determine that the lure is in perfect working condition.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by 1988 HB 2774, Sec. 3; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989.)

Kan. Admin. Regs. § 112-6-8 The racing secretary

(a) Each racing secretary shall maintain a file of each lease or ownership paper on each greyhound racing in the race meet. The racing secretary shall inspect all ownership and lease documents to confirm that they are accurate, complete and current. The racing secretary is responsible for the custody and safe keeping of each lease or national greyhound association ownership paper and shall permit only authorized personnel access to them. Each document shall not be removed from the racing secretary's custody by any individual except the greyhound's kennel owner or trainer.

(b) Each racing secretary shall maintain a complete record of all races, shall receive all stakes and entrance money and shall pay over all monies collected to officers or other persons entitled to receive them.

(c) Any racing secretary may request proof that a greyhound is not disqualified or nominated by or the property, wholly or in part, of a disqualified person. If sufficient proof is not given to satisfy the racing secretary, the racing secretary may declare the greyhound disqualified.

(d) Each racing secretary shall receive all entries and declarations.

(e) Any racing secretary may demand production of and inspect each owner's and trainer's license and each paper and document relating to owners, trainers, partnership agreements, appointment of authorized agents and adoption of kennel names. Each racing secretary shall make a reasonable attempt to establish that required individuals are licensed and that the regulations have been followed. The documents shall be available to the racing judges at all times.

(f) Each day, as soon as the entries are composed and compiled and the declarations made, each racing secretary shall post a list of entries in a conspicuous place.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-8804; implementing K.S.A. 1989 Supp. 74-8804; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 25, 1991.)

Kan. Admin. Regs. § 112-6-9 The mutuel manager

For purposes of these regulations, the duties of the mutuel manager shall be defined the same in this article as in 112-5-10.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804; implementing K.S.A. 74-8816 and K.S.A. 1993 Supp. 74-8818; effective Sept. 6, 1994.)

Kan. Admin. Regs. § 112-6-10 The chartwriter

(a) For purposes of these regulations, the chartwriter shall be the individual who shall obtain information to be printed in the racing program concerning each racing greyhound.

(b) The chartwriter's duties shall include:

(1) viewing the running of each official live race;

(2) viewing the tape of each race as many times as necessary to obtain the following information on each racing greyhound:

(A) the running time and order of finish, verified by the photo finish operator whenever possible, for each racing greyhound;

(B) the post positions and position calls during the race for each racing greyhound;

(D) the parimutuel payoffs for each wagering race;

(E) the date, distance, grade, track condition and racing weight for each official race a greyhound competes in; and

(F) a comment referencing each greyhound's performance in each race;

(3) obtaining any other vital information relating to each racing greyhound; and

(4) overseeing the information provided in the racing program for use by the betting public.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804; implementing K.S.A. 74-8816 and K.S.A. 1993 Supp. 74-8818; effective Sept. 6, 1994.)

Article 7 Rules for Racing

Kan. Admin. Regs. § 112-7-2 Ownership

(a) The legal ownership of each horse, and the name of each owner that is printed on the official program for the horse, shall conform to the ownership declaration on the horse's certificate of registration, eligibility certificate or lease agreement on file with the organization licensee. Each stable name shall be registered with the commission as the owner or owners. If the owner is a syndicate, corporation, partnership or other association or entity, the horseowner whose name is printed on the official program shall be the responsible managing owner, officer or partner who assumes all responsibilities of the owner.

(b) Each horse owned in whole or in part or under the care and control of an individual who is excluded from a racetrack or who has a suspended license shall be ineligible to enter or to start in any race. The horse's eligibility may be reinstated when the individual's penalty terminates or when the horse is transferred through a bona fide sale to an owner approved by the stewards. Each individual who is excluded from a racetrack or who has a suspended license, whether acting as an agent or otherwise, shall not be qualified to subscribe for, to enter or to run any horse in any race either in the individual's own name or in the name of any other person until the termination of the penalty.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-7-3 Deceased owners

(a) Any personal representative of a deceased owner may exercise and transfer the deceased owner's nominations, entries and rights of nomination and entry subject to the regulations of the commission. Each personal representative shall be deemed to hold an owner's license with respect to horses belonging to the estate of the deceased until the commission declares that the deceased owner's license is no longer in effect.

(b) When a horse is held by multiple ownership and a member of the multiple ownership dies, any nominations, entries and rights of nomination and entry continue and may be exercised by any remaining members.

(c) Nominations and all entries or rights of entry under them become void when the nominator dies subject to the following exceptions:

(1) When the horse is held by multiple ownership; or

(2) when the personal representative of an estate requests in writing that the benefits of the nominations accrue to the estate of the deceased nominator for the purpose of selling or transferring a horse, and the personal representative agrees to assume any and all obligations incident to the original entries, and the stewards approve the request.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-7-4 Documents

(a) Each win sheet, certificate of registration, certificate of eligiblity, entry card or other document of ownership or registration shall have no information omitted and any required signature on the documents shall not be willfully altered or forged by any person.

(b) Each certificate of registration or document of ownership that is filed with the racing secretary to establish a horse's eligibility to enter a race shall be released only to the horse's trainer of record, except that the trainer may authorize the release of the certificate to the owner named on the certificate or the authorized owner's agent on a form provided by the racing secretary. Each dispute concerning a right to the registration certificate shall be decided by the stewards.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-7-5 Horses sold or transferred with engagements

(a) Each racing secretary shall require any licensee to provide evidence of any sale or transfer when a horse is sold or transferred with its engagements, and the failure to produce evidence shall render the horse ineligible to start in any race.

(b) No person shall transfer or receive the transfer of a horse or engagement of a horse for the purpose of avoiding any disqualification.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-7-6 Registration and eligibility

(a) No person shall enter or start a horse in a race unless all of the following conditions are met:

(1) The horse is duly registered with and approved by the registry offices of one of the following:

(A) The jockey club, if a thoroughbred;

(B) the American quarter horse association, if a quarter horse;

(D) the Arabian horse club registry of America, if an Arabian;

(E) the American paint horse association, if a paint;

(F) the pinto horse association of America, inc., if a pinto;

(G) the American trotter's association, if a standardbred; or

(H) any successors to any of the registries named in paragraphs (a)(1)(A) through (G) or any other registry recognized by the commission.

(2) The horse's registration certificate, showing the tattoo number of the horse, is filed with the racing secretary by entry time for the race. In stakes races, the registration certificate shall be filed not less than two hours before the scheduled post time for the race, except as provided in paragraph (b) (10).

(3) The horse is in the care of a licensed trainer and owned by an owner licensed by scratch time, except that for the first 10 days of a race meeting or for stakes races, an owner shall be licensed by one hour before first post on the day of the race.

(4) At the time of entry, the horse is eligible under the conditions of the race as specified by the racing secretary and remains eligible until the race.

(5) If the horse's name is changed, its new name is registered with the appropriate registry listed in paragraphs (a) (1) (A) through (H). Both the horse's previous name and new name shall be stated in every entry list until the horse has run three races. Both names shall be printed in the official programs for those three races.

(b) No person shall enter or start a horse in a race if any of the following conditions is met:

(1) The horse is suspended.

(2) The horse is on the steward's list, starter's list, or veterinarian's list.

(3) The certificate reflecting a negative Coggins test, performed upon the horse within the previous 12 months, has not been submitted to the racing secretary.

(4) The identification markings of the horse do not agree with the identification as specified on the registration certificate to the extent that a correction is required from the appropriate breed registry, unless the permission of the stewards and the identifier is given.

(5) The horse has not been lip-tattooed by a commission-approved tattooer.

(6) The entry of the horse is not in the name of the true owner.

(7) The horse has drawn into a field or started in a race on the same day.

(8) The horse's age, as determined by an examination of its teeth by the official veterinarian, does not correspond to the age shown on its registration certificate.

(9) The horse's certificate of registration reflects an unknown sire or dam.

(10) An ownership transfer for a horse is being forwarded to a breed registry.

(c) No person shall start a horse in any race unless it has been properly entered in the race. A horse that is improperly entered shall not be entitled to any part of the purse. However, once the "official" sign is posted, this regulation shall not affect the wagering on the race.

(d) Each trainer shall be responsible for the eligibility of the horses entered by the trainer or an authorized agent of the trainer.

(e) Any nomination or entry of a horse or the transfer of any nomination or entry may be refused by the organization licensee for reasonable cause.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8825; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended March 25, 1991; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-7-7 Entries

(a) Each horse entered for the first time at a race meeting shall be identified by its name, color, sex, age, and the name of its sire or sires and dam as registered. For every other race, each horse shall be identified by its name, color, sex, and age.

(b) Each nomination and entry shall be made in writing and signed by the owner or trainer of the horse, or the owner's licensed authorized agent or the trainer's licensed authorized agent. Each organization licensee shall provide forms upon which entries, scratches, and declarations are to be made for all races.

(1) Only each steward, racing secretary, and secretary's designee shall be authorized to receive entries, scratches, and declarations.

(2) Any entry may be made by telephone, facsimile, or telegraph, but each entry shall be confirmed in writing one hour before post time of the first race on the day of the race for which the horse is entered.

(3) In a stakes race, the closing of nominations, entries, interim payments, and declarations shall be in accordance with the conditions published by the organization licensee sponsoring the race.

(4) Each signed entry blank shall be prima facie evidence that the contents of the entry blank express the desire and intent of the person making the entry.

(c) Each nominator shall be liable for entrance money or stakes. A mistake in the entry of an eligible horse shall not release the subscriber or the subscriber's transfer from liability for stakes or entrance money. Entrance money or stakes shall not be refunded because of the death of a horse or because of its failure to start a race.

(d) No person shall perform any of the following:

(1) enter in the person's name a horse of which the person is not the actual owner;

(2) enter or cause to be entered or start a horse that the person knows or believes to be ineligible or disqualified;

(3) enter a horse in more than one race on any day, except stakes races; or

(4) enter a horse in a race if it is wholly or partly owned by, trained by, or under the management of a person whose license is under suspension or a person who acts in concert with or under the control of a person whose license is under suspension.

(e) Each entry from a person whose license is suspended and each entry of an ineligible horse shall be void, and any money paid for the entry shall be paid to the purse of the race.

(f) Except for decisions regarding disqualification for interference during the running of the race, each dispute, claim, and objection relating to the race and the interpretation of commission regulations shall be decided by the stewards or, upon review, by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1996 Supp. 74-8804; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended May 1, 1998.)

Kan. Admin. Regs. § 112-7-8 Coupled entries

(a) Not more than two horses of the same licensed ownership or interest shall be entered and started in a race, except in stakes races and races that are conditioned for horses eligible for specified stakes.

(b) No owner or trainer shall enter more than two horses in an overnight event. Two horses shall not start to the exclusion of a single horse.

Two or more horses entered to run in a stakes race that are owned or trained, or both, by the same person, persons, or interests shall run as an uncoupled entry.

(c) Horses trained by a public stable trainer shall not be coupled with horses trained by another public stable trainer unless the horses are owned by the same person or are coupled as a field for wagering purposes.

(d) All horses owned wholly or in part or trained by the same person or the person's spouse and entered and started in a race except as noted in subsection (a) shall be coupled and run as an entry.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8825; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-7-9 Loss of entries

Each person who alleges loss of an entry or declaration for a stakes race shall provide satisfactory proof to the racing secretary that it was mailed, facsimiled or telegraphed within a reasonable time before the designated time for closing, or it shall not be considered received.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-7-10 Closing of entries and drawing of post positions

(a) No entry or declaration for a stakes race shall be considered if received after the hour designated for closing. If an hour for closing is not designated, any entry or declaration may be mailed, facsimiled or telegraphed before midnight of the day designated for closing, if the entry or declaration complies with every other condition of the race.

(b) Each drawing of entries for post positions shall be governed by the following procedures.

(1) If entries exceed the permitted number of starters, the number of starters shall be reduced to the proper number by the preferred date system. The date system may be used for the entire race or for each division of the race at the option of the organization licensee.

(2) The racing secretary shall select an owner or a trainer who is present in the entry office to draw the entry sheets and post position numbers in public view within a reasonable time following each closing of entries. Each entry shall be drawn from its approved receptacle before the number ball is released from the number box.

(3) In divided and split races, the starters in the separate divisions shall be selected by the preferred date system.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-7-11 Changing of races

Any organization licensee may withdraw or change any race with the permission of the stewards. If a race is declared off because of insufficient entries, the organization licensee may split any other race.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-7-12 Preference system

(a) Each racing secretary shall keep a list of all horses excluded from races because of excessive entries, and each excluded horse shall have preference in any later race in which they may be entered in accordance with a date system adopted by the racing secretary and approved by the stewards. This shall be known as the "preferred date system."

(b) When a horse is entered on one day and has an opportunity to start other than in a stakes race, as required in K.A.R. 112-7-7(d)(3), and is also entered for the following race day, the second entry shall be classified as an "in-today" and shall not be considered unless there are insufficient entries in the race. Such a horse shall not be placed on the preferred list.

(c) If a race overfills, the second part of an entry shall receive preference over horses classified as "in-today" on the "also eligible" list.

(d) Each horse's name shall not be placed on the preferred list and all preference shall be forfeited if the owner does not accept, when presented, the opportunity to start the horse.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-7-13 Declarations and scratches

(a) Each declaration and scratch shall be made in writing and signed by the owner or trainer of the horse or the owner's authorized agent. Each organization licensee shall provide forms on which scratches and declarations shall be made.

(1) No horse shall be scratched without permission of the stewards.

(2) Each scratch shall be made before the scratch time set by the organization licensee, except as provided in subsections (c) through (h) of this regulation.

(3) If a scratch reduces the number of horses in the race, each horse left in the race shall move into the lower numbered post positions before any horse is drawn from the also eligible list.

(b) If a scratch reduces the number of horses in the race below the number designated for the race, the designated number of horses shall be maintained by the drawing of lots from the also eligible list after the scratch has occurred, and each horse drawn by this procedure shall be required to race.

(c) Each scratch from an early-closing stakes race shall be made not less than one hour before post time of the race. Any steward or animal health officer, acting with the approval of the stewards, may scratch a horse at any time before post time of the race.

(d) If a horse is not named through the entry box at the usual time of closing in a stakes race, that horse shall be scratched from the race.

(e) Any nomination of a horse to a stakes race may be altered or withdrawn at any time before the closing time for nominations.

(f) Despite paragraph (a) (2) of this regulation, the stewards may permit the withdrawal of any horse after it has left the paddock for any reason that they determine to be in the best interests of racing.

(g) The stewards may declare a horse a non-starter for any occurrence before the running of a race.

(h) If any horse is so unruly in the saddling paddock that the identifier cannot read the tattoo number to properly identify the horse, or if any trainer or assistant is uncooperative in the effort to identify the horse, the horse may be scratched by order of the stewards.

(i) Each declaration of a horse out of an engagement shall be irrevocable.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-7-14 Penalties and allowances

(a) Penalties and allowances shall be determined as follows:

(1) Penalties and allowances shall not be cumulative unless they are declared to be so in the conditions of the race. They shall be effective at the start except in overnight events when a horse shall have only the allowance to which it was entitled at the time of entry.

(2) Penalties and sex allowances shall be obligatory. Penalties or allowances shall be claimed at the time of entry. Each horse shall not enter or start a race with less than 102 pounds unless the race is a handicap or stakes.

(3) Each horse shall not receive an allowance of weight or be relieved from extra weight because it has been beaten in one or more races, but this shall not prohibit the awarding of a maiden allowance or allowances to horses that have not won a race within a specified period or a race of specified value.

(4) Failure to claim a weight allowance by oversight or omission shall not be cause for disqualification. Claims of weight allowance to which a horse is not entitled shall not disqualify the horse unless an incorrect weight is carried in the race. However, a fine may be imposed upon the person who claims an allowance to which the horse is not entitled.

(5) Eligibility, penalties and allowances of weight for all races shall be determined from the reports, records and statistics published by the daily racing form and from the horse registries identified in K.A.R. 112-7-6. However, responsibility for weight carried and eligibility shall remain with the owner and the trainer as stated in K.A.R. 112-7-6 (c).

(6) Each horse shall not incur a weight penalty for a placement from which it is disqualified, but each horse that places because of the disqualification of another horse shall incur the weight penalties of the placement. Each horse that places because of the disqualification of another horse shall not be ruled ineligible in a race that has already been run.

(b) For thoroughbreds only, in all races against male horses, two year old fillies shall be allowed three pounds and three year old and older fillies and mares shall be allowed five pounds before September 1 and three pounds after September 1.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-7-15 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; revoked, T-112-8-13-92, Aug. 13, 1992; revoked, T-112-12-10-92, Dec. 10, 1992; revoked Feb. 15, 1993.)

Kan. Admin. Regs. § 112-7-15a Claiming

(a) Except as otherwise provided by these racing regulations, in a claiming race, each horse shall be subject to a claim for its entered price by one of the following:

(1) A licensed owner who has a horse registered to race at the current race meeting or the owner's authorized agent; or

(2) a person licensed as an owner by open claim.

(b) No owner shall make a claim directly or indirectly for the owner's own horse.

(d) Each claim shall be submitted in writing on a form and in an envelope that are provided by the organization licensee and approved by the commission. Each form and envelope shall be fully executed, and the information appearing on them shall be true and correct. Each horse's name shall be written as it appears on the official program.

(e) Each person making a claim shall be responsible for determining the age and sex of the horse.

(f) Each claim shall be deposited in a locked box provided by the racing secretary not later than 10 minutes before post time of the race in which the horse being claimed is to start. No person shall place money or any other consideration in the claim box.

(g) Before the deadline for filing claims, no person shall open the box in which the claims are deposited or reveal any information regarding any claim.

(h) After the deadline for filing claims, a steward or a designee of the stewards shall open the box, examine the claims and notify the stewards of any successful claim. The racing secretary and horsemen's bookkeeper then shall be notified of the claim to determine whether the appropriate amount is on deposit with the horsemen's bookkeeper and to debit the claimant's account for the amount of the claim and applicable fees.

(i) If more than one claim is filed for the same horse, the successful claimant shall be determined by lot under the supervision of the steward or steward's designee.

(j) Each title to a horse that is claimed shall be vested in the successful claimant when the stall door of the starting gate opens in front of the horse. This requirement shall apply regardless of any subsequent injury to the horse during or after the race.

(k) On the day a claim is made, each claimed horse shall run in the interest of and for the account of the owner from whom the horse was claimed.

(l) Except as otherwise provided by this regulation, each claim that is filed in accordance with these provisions shall be irrevocable.

(m) If the stewards excuse a horse before it is a starter, each claim for the horse shall be invalid.

(n) If the stewards declare a claiming race a "no race," each claim filed for that race shall be invalid.

(o) To file a valid claim, each person shall deposit with the horsemen's bookkeeper cash, a money order, a certified check, or a cashier's check in an amount equal to the sum of the claim, all transfer fees, and any applicable taxes. With the prior written approval of the organization licensee, a person may deposit a personal check with the horsemen's bookkeeper to satisfy the claim and transfer fees. Each organization licensee shall guarantee and be liable for any insufficient funds related to a personal check that the licensee has approved for this purpose.

(p) A person who files a claim shall not exhaust the person's account with the horsemen's bookkeeper during the two-hour period after the claim was filed.

(q) After the claiming race, each horse that has been claimed shall be taken to the area designated by the organization licensee for delivery to the claimant, unless the horse is designated for testing.

(r) No person shall refuse to deliver a claimed horse.

(s) Each engagement of a claimed horse automatically shall transfer to the new owner. Each claimed horse shall be ineligible to enter a future race unless the entry is made on behalf of the new owner.

(t) Without written authorization from a steward or the steward's designee, no claimed horse shall be delivered to a successful claimant.

(u) Each claimed horse that has been designated for post-race testing shall remain the responsibility of its trainer until after the collection of the test specimen. After the required test procedures are completed, the trainer shall deliver the claimed horse to the successful claimant.

(v) During the 30-day period after a person claims a horse or until the end of the meet, the claimant shall not sell or transfer any ownership interest in the claimed horse by any method except a claiming race.

(w) If a horse is claimed at a recognized race meeting governed by the rules of another racing jurisdiction, the claiming rules of the jurisdiction where the horse was claimed shall be recognized in Kansas. However, while the horse races in Kansas, this regulation shall apply.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8825; effective, T-112-8-13-92, Aug. 13, 1992; effective, T-112-12-10-92, Dec. 10, 1992; effective Feb. 15, 1993; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-7-15b Claiming, vacated stable

(a) Except as otherwise provided by this regulation, each owner whose stable is vacated by the sale or removal of horses from the racetrack facility shall lose any right to claim horses at the race meeting.

(b) Each owner whose stable is vacated by claims shall be entitled to make claims until the later of:

(1) the end of the race meeting at which the stable was vacated; or

(2) the 31st race day after the date the stable was vacated.

(c) Each owner whose stable was vacated and who intends to make a claim at a subsequent race meeting shall file with the claim a certificate from the stewards who presided at the race meeting at which the stable was vacated.

(d) Any owner whose stable was vacated because of fire or like event may be permitted by the stewards to claim horses in accordance with this regulation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-8-13-92, Aug. 13, 1992; effective, T-112-12-10-92, Dec. 10, 1992; effective Feb. 15, 1993.)

Kan. Admin. Regs. § 112-7-16 Invalid or void claims and prohibitions on claims

(a) Each claim shall be invalid if any of the following conditions is met:

(1) The name of the horse to be claimed is erroneously spelled or is not specified in the space provided on the claim form.

(2) The claimant does not have at least the amount of the claim and any applicable state sales tax on deposit or credited with the horsemen's bookkeeper.

(3) The claim form does not specify the designated price as printed in the official program, is not signed, does not fully indicate the name of the party making the claim, or is otherwise incorrectly completed.

(4) The claim envelope is inaccurate.

(b) If a claim is voided by the stewards, the horse claimed shall be returned to the original owner who, in turn, shall refund all of the claim money to the unsuccessful claimant.

(1) Claiming more than one horse from any one race;

(2) claiming that person's or racing interest's own horse or causing the horse to be claimed, directly or indirectly, for that person's or racing interest's own account;

(3) refusing to deliver a claimed horse to the successful claimant;

(4) removing any horse that has been entered in a claiming race from the racetrack facility where it has been entered to race, or failing or refusing to comply with any commission order, regulation, or statute of the Kansas racing and gaming commission or any condition of the race meeting for the purpose of avoiding or preventing a claim for the horse;

(5) offering or entering into an agreement to claim or not to claim or attempting to prevent another person from claiming any horse in a claiming race;

(6) attempting to intimidate or prevent anyone from running a horse in any claiming race;

(7) claiming horses owned or trained by the claimant's trainer's spouse, child, sibling, parent, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law;

(8) claiming a horse from an owner whose horse is trained by the claimant's trainer;

(9) if a trainer, claiming a horse from an owner for whom the trainer trains;

(10) entering or allowing to be entered any horse against which any claim is held, either by mortgage or lien of any kind, without having filed the written consent of the holder of the mortgage or lien with the racing secretary and horsemen's bookkeeper before the entry; or

(11) leaving a horse that is claimed in the care or custody of the owner from whom the horse was claimed.

(d) If the stewards have reasonable doubt about the validity of a claim, the claimant shall be required by the stewards to execute an affidavit stating that the claimant is claiming the horse for the claimant's own account or as an authorized agent, and not for any other person.

(e) Each claimant shall be solely responsible for determining the true age and sex of a claimed horse, and mistakes in that regard printed in the official program or elsewhere shall not be considered a basis for invalidating the claim.

(f) Not later than 30 minutes after the race is run, written protest of a claim may be submitted to the stewards, who shall investigate the matter as quickly as possible.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8825; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-7-16a Disclosure of mare in foal

(a) A mare or filly that has been serviced may be entered in a claiming race if:

(1) the owner files with the racing secretary a certificate from a licensed veterinarian that is dated no earlier than 40 days after the date the mare or filly was last serviced and that states the mare or filly is not in foal; or

(2) before entering the mare or filly, the owner:

(A) files with the racing secretary a statement disclosing the servicing of the mare or filly, which shall be posted in the office of the racing secretary;

(B) files with the racing secretary a signed statement agreeing to deliver without cost to a successful claimant the valid stallion service certificate regarding the servicing of the mare or filly; and

(b) Any successful claimant of a mare or filly in a claiming race may file with the stewards, not more than 30 days after the date of the claim, a petition to rescind the claim if:

(1) the claimant learns the mare or filly is in foal; and

(2) the owner of the mare or filly has not complied with subsection (a) of this regulation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-8-13-92, Aug. 13, 1992; effective, T-112-12-10-92, Dec. 10, 1992; effective Feb. 15, 1993.)

Kan. Admin. Regs. § 112-7-17 Claiming authorization

(a) Each person who makes an application for a claiming authorization on the forms provided shall receive a claiming authorization from the commission or its appointed representatives, provided the person:

(1) Is licensed as an owner or an owner by open claim;

(2) has an agreement with a licensed trainer to take charge of, care for and train any horse claimed pursuant to the claiming authorization; and

(3) has at least the amount of the claim and applicable taxes on deposit or credited with the "horsemen's bookkeeper."

(b) Each holder of a claiming authorization and each trainer shall promptly notify the stewards in writing if the agreement is terminated before a horse is successfully claimed.

(c) Each claiming authorization shall be valid for 30 days or until the person to whom the authorization was issued becomes a horse owner either through use of the claiming authorization or through a private purchase, whichever is sooner.

(d) Each applicant for a claiming authorization shall pay to the commission the same fee that is charged for an owner's license before the authorization is issued. Each holder of a claiming authorization shall not be entitled, by virtue thereof, to admission to the grandstand, clubhouse or other spectator facility at prices less than those charged to the general public. The holder of a claiming authorization who previously has not been granted an owner's license shall be issued an owner's license without payment of any additional fees.

(e) Any application for claiming authorization may be denied or revoked for any reason that would justify denial, suspension or revocation of an owner's license. Each person whose claiming authorization is denied or revoked shall have the same rights to notice and hearing as an owner would have whose license is denied, suspended or revoked.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-7-18 Jockeys

(a) Each jockey engaged to ride in a race shall report to the jockey room at least one hour before post time of the first race and shall weigh out at the appointed time. After reporting to the jockey room, the jockey shall not leave it except to ride in a race until all of that jockey's riding engagements have been fulfilled, unless the jockey has permission from the stewards.

(b) Only jockeys, jockey attendants, racing officials, commission representatives, security officers on duty, and organization employees performing required duties may enter the jockey room from one hour before post time for the first race until after the last race. No other person shall enter the jockey room at the time identified in this subsection, except with the permission of the stewards or the commission.

(c) Each horse owner shall deposit the jockey mount fee for a horse in the race with the "horsemen's bookkeeper" before the time for weighing out. Failure to deposit the minimum fee shall be cause for disciplinary action against the owner and shall be cause for the stewards to scratch the horse for which the fee is to be deposited. Each organization licensee shall assume the obligation to pay the jockey mount fee when it is earned by the engaged jockey. The jockey mount fee shall be earned when the jockey is weighed out by the clerk of scales unless a jockey who is capable of riding elects not to ride the horse in that race without proper cause in the opinion of the stewards.

(d) No jockey who is engaged for a certain race or for a specified time shall fail or refuse to abide by the agreement unless the jockey is excused by the stewards.

(e) Without the permission of the owner or trainer, no jockey shall weigh out if the jockey weighs more than two pounds over the weight assigned to the horse. Under no circumstances shall the margin over the weight limit exceed seven pounds. In such a case, no jockey mount fee shall be due to the overweight jockey.

(f) Each jockey shall submit to a breath, urine or blood test, or any combination thereof, prior to the jockey's first mount on each race day. No jockey shall have a blood alcohol content of .05 percent or more. No jockey's urine or blood test shall indicate the presence of any controlled substance, as defined by K.S.A. 1995 Supp. 65-4101. Each jockey who violates this subsection shall be subject to the penalties set forth in K.A.R. 112-11-13a, subsections (b) through (e) inclusive.

(g) When directed by the stewards, each jockey shall report to the stewards for film review.

(h) Each jockey shall give a best effort to win in any race in which the jockey is riding.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1995 Supp. 74-8804; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended Dec. 13, 1996.)

Kan. Admin. Regs. § 112-7-18a Jockey agent

(a) Any jockey agent may represent a jockey if the jockey agent is registered with the stewards and licensed by the commission as a jockey agent. No jockey agent shall represent more than three jockeys and one apprentice jockey at the same time.

(b) No jockey agent shall give to anyone, directly or indirectly, any information or advice on races, commonly known as "touting," for personal gain.

(c) Each jockey agent shall maintain a record of all engagements made for the jockeys that the agent represents. The record shall specify first and second calls in each race. The officials may require that the jockey agent file the first and second calls with the racing secretary and display the agent's record of engagements.

(d) Any trainer or owner may demand from a jockey or jockey agent written confirmation of an engagement. Each jockey shall be bound by agreements made on the jockey's behalf by the jockey's agent.

(e) Each conflicting claim for the services of a jockey shall be decided by the stewards.

(f) Each jockey agent shall notify the stewards in writing within 24 hours if the jockey agent no longer represents a jockey.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8825; effective, T-112-8-13-92, Aug. 13, 1992; effective, T-112-12-10-92, Dec. 10, 1992; effective Feb. 15, 1993; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-7-19 Jockey mount fees

(a) In the absence of a written contract or special agreement between the parties, the following jockey mount fees shall be assessed:

Purse | Winning Mount | Second Mount | Third Mount | Losing Mount $599 & Under | $33.00 | $33.00 | $33.00 | $33.00 600 - 699 | 36.00 | 33.00 | 33.00 | 33.00 700 - 999 | 10%−Win Purse | 33.00 | 33.00 | 33.00 1,000 - 1,499 | 10%−Win Purse | 33.00 | 33.00 | 33.00 1,500 - 1,999 | 10%−Win Purse | 35.00 | 33.00 | 33.00 2,000 - 3,499 | 10%−Win Purse | 45.00 | 40.00 | 38.00 3,500 - 4,999 | 10%−Win Purse | 55.00 | 45.00 | 40.00 5,000 - 9,999 | 10%−Win Purse | 65.00 | 50.00 | 45.00 10,000 - 14,999 | 10%−Win Purse | 5%−Place Purse | 5%−Show Purse | 50.00 15,000 - 24,999 | 10%−Win Purse | 5%−Place Purse | 5%−Show Purse | 55.00 25,000 - 49,999 | 10%−Win Purse | 5%−Place Purse | 5%−Show Purse | 65.00 50,000 - 99,999 | 10%−Win Purse | 5%−Place Purse | 5%−Show Purse | 80.00 100,000 & up | 10%−Win Purse | 5%−Place Purse | 5%−Show Purse | 105.00

(b) If the parties enter an agreement regarding the jockey mount fee, the parties shall deliver a written contract or agreement, signed by the jockey or the jockey's agent and the owner or the owner's authorized agent, that details the mount fee for a winning mount, a second place mount, a third place mount, and a losing mount, to the horsemen's bookkeeper before the running of the race. Each horsemen's bookkeeper shall debit the owner's purse account in accordance with the provisions of the written contract or agreement. If no written contract or agreement is executed and delivered to the horsemen's bookkeeper before the running of the race, the horsemen's bookkeeper shall debit the owner's purse account in accordance with the fee scale set forth in this regulation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1999 Supp. 74-8804; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended May 4, 2001.)

Kan. Admin. Regs. § 112-7-20 Safety helmets required; physical examination required

Each person who is mounted on any horse within the racetrack facility or riding in a race shall wear a properly fastened safety helmet. Each person who is mounted on a race horse within the racetrack facility shall have on file at the racetrack commission office a record of that person's physical examination, including vision and hearing tests, conducted by a person licensed to practice medicine and surgery within the year immediately preceding.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8825; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-7-21 Paddock to post

(a) Each horse in a race shall carry a conspicuous saddlecloth number and a head number corresponding to the horse's number on the official program. In the case of a coupled entry, each horse making up the entry shall bear the same number as the first part of the entry and also a distinguishing letter immediately following the number on the head and saddlecloth. In the case of a field, the horses comprising the field shall bear an individual number or a particular number immediately followed by a distinguishing letter.

(b) Each trainer shall have the entered horse in the paddock no fewer than 15 minutes before post time. The trainer shall attend the horse in the paddock and be present to supervise its saddling unless the trainer has obtained the permission of a steward to send an assistant trainer or another trainer as a substitute. Each horse shall be saddled in the paddock unless permission has been granted by the stewards to saddle elsewhere.

(c) Each blanket and bandage except any bandage that will be worn during a race shall be removed immediately upon arrival in the paddock. If weather conditions dictate, blankets may be worn after saddling with the permission of the paddock judge.

(d) The stewards may permit a horse to be led directly to the post and to be excused from the post parade.

(e) Each lead pony and each rider shall be permitted to enter the saddling paddock or walking ring only after the stewards have given permission.

(f) The post parade shall not last longer than 14 minutes after the horses enter the racetrack, except in cases of unavoidable delay. When the horses reach the post, they shall be started without unnecessary delay.

(g) After the horses enter the racetrack, no jockey shall dismount and no horse shall be entitled to the care of an attendant without the permission of the stewards or the starter. Each horse shall be free of all hands other than those of the jockey, lead pony rider, assistant starter or header before the field is dispatched by the starter. In case of accident to a jockey or to the horse or equipment, any steward or any starter may permit the affected jockey to dismount and the horse to be cared for during the delay and also may permit any other jockeys to dismount and any other horses to be attended during the delay.

(h) Each horse shall carry its assigned weight from paddock to post and from post to finish. If a jockey is thrown on the way from the paddock to the post, the horse shall be remounted, and if reasonably possible, returned to where the jockey was thrown and shall proceed over the route of the parade to the post.

(i) If the jockey sustains an injury on the way to the post that requires substitution of another jockey, the horse shall be returned to the paddock. Another jockey shall mount and then ride the horse over any uncompleted portion of the exact route of the parade to the starting point.

(j) If a horse leaves the course while proceeding from paddock to post, the horse shall return to the course at the nearest practical point where it left the course. It shall then complete its parade to the post from the point at which it left the course.

(k) No person shall willfully delay the arrival of a horse at the post.

(l) The use of any mechanical device applied to a horse's ears at the starting gates shall be strictly prohibited. This prohibition shall include twitches, tongs, pliers, or any device designed to hold fast or squeeze the skin or other tissues.

(m) The use of a buggy whip, flexible cane, or any similar device to assist the loading of a horse into the gates shall be limited. If, in the opinion of the commission veterinarian or the stewards, there is excessive use of this device, the commission veterinarian or stewards shall order that the use of the device be stopped immediately. Any person using the device in excess shall be subject to disciplinary action at the discretion of the stewards.

(n) Only the jockey shall be permitted to strike a horse to assist in starting.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1998 Supp. 74-8804; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended Feb. 11, 2000.)

Kan. Admin. Regs. § 112-7-22 Post to finish

(a) No horse shall be permitted to start unless it has been tattooed and fully identified.

(b) Each horse shall take a position in numerical order from the inside rail. The order shall be determined by post positions.

(c) Each horse shall be a starter after the doors of the starting gate in front of it open when the official starter dispatches the horses.

(d) Each horse shall be ridden past the finish line in every race and shall carry the assigned weights from the post to finish, unless disqualified.

(e) Each horse that leaves the course during a race shall be disqualified.

(f) The following rules shall apply to the running of a race.

(1) In a straightaway race, each jockey shall maintain the horse as nearly as possible in the lane in which it starts.

(2) Each jockey shall make a best effort to control and guide the mount in such a manner as not to cause a foul.

(3) No jockey shall willfully strike or touch another jockey or another jockey's horse or equipment during a race for the purpose of interfering with the horse or jockey. No jockey shall strike the jockey's horse on or about the head.

(4) Any rider may be fined or suspended, or both, by the stewards for willful fouling or careless riding. The nature and seriousness of the offense shall be considered by the stewards.

(5) Any jockey whose horse has been disqualified or who unnecessarily causes the horse to change or shorten its stride for the purpose of losing a race may be fined or suspended.

(g) The stewards shall be vested with the discretion to determine the propriety and nature of a disqualification and whether it applies to any other part of an entry. The stewards' decision shall be final.

(1) To determine the disqualification of a horse in any race, the stewards may either place the horse behind the horse or horses with which they believe it interfered, they may place it last or they may unplace it.

(2) When a horse of one ownership or interest is coupled with a horse or horses of the same or another ownership or interest, the disqualification of one shall not necessarily affect the placing of the other.

(h) Each jockey shall give the best effort in races. Any instructions or advice to jockeys to ride or handle their mounts except for the purpose of winning shall be prohibited and shall subject each person giving or following those instructions or advice to disciplinary action by the stewards and the commission. If two horses run in one interest in any race, each horse shall be ridden to give its best effort.

(i) Only the owner, trainer or jockey alleged to be aggrieved shall make a protest relating to the running of the race. Each protest shall be made to the stewards, the outrider if designated by the stewards or the clerk of scales before or immediately after weighing in. Any owner, trainer or jockey who makes a frivolous protest may be fined or suspended.

(j) No person shall help a jockey remove the equipment that is to be included in the jockey's weight from the jockey's horse unless the stewards give permission.

(k) No person shall throw any covering over any horse at the place of dismounting until the jockey has removed the equipment that is to be included in the jockey's weight.

(l) Each dead heat shall be governed in the following manner.

(1) If two or more horses run a dead heat, the dead heat shall not be run off.

(2) Each horse shall be considered a winner in a dead heat for first place.

(3) If two or more horses finish in a dead heat and a protest is filed and allowed against a horse that finished in front of the dead heat, the horses that ran the dead heat shall be deemed to have run from the higher position.

(4) Owners of horses that finish in a dead heat for any position shall divide equally all money and other prizes. If no agreement is reached as to which of them shall receive an indivisible prize, they shall draw lots for it in the presence of one or more of the stewards.

(m) If a race is run by all of the horses at the wrong weights or over a wrong distance, and if a protest is filed and allowed before the flashing of the "official" sign on the totalisator board, the stewards shall declare the race no contest.

(n) Each of the following procedures shall apply if any horse is disabled or otherwise is unable to finish a race.

(1) The horse shall be dismounted, unsaddled and removed from the racetrack without passing the stand. The horse shall not be destroyed on the racetrack or in the presence of the public without the permission of the stewards.

(2) If a bone is broken and the horse is disabled, the horse shall remain on the racetrack until the horse ambulance arrives and removes it.

(3) If destruction of the horse is necessary, the animal health officer shall destroy the horse by use of an intravenous injection out of the vision of the public. If destruction in the view of the public is necessary, an ambulance screen shall be made available by the organization licensee.

(4) If a horse is disabled, a drug test for prohibited substances shall be performed on the horse. If destruction of the horse is necessary, a postmortem examination may be performed upon order of the stewards at the expense of the owner.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-7-23 Workouts

(a) Each licensee exercising a horse shall, upon the request of the clocker or assistant clockers, correctly state the distance over which the horse is to be worked and the point on the racetrack where the workout will start. The licensee shall identify the horse if requested to do so. The clocker or assistant clocker shall file with the stewards a daily report listing the date, track condition, name of each horse worked and the time and distance for each workout.

(b) Each licensee shall secure permission from a steward before exercising a horse on the racetrack between races.

(c) If a horse is warming up or exercising on the racetrack, a public announcement shall be made that states the horse's name and explains its presence on the racetrack.

(d) If a horse has not raced in 45 days, it shall not start any race before it completes one workout. If a horse has never raced or has not raced within the last 12 months, it shall not start any race before it completes two workouts.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-8-13-92, Aug. 13, 1992; effective, T-112-12-10-92, Dec. 10, 1992; effective Feb. 15, 1993.)

Kan. Admin. Regs. § 112-7-24 Safety vests required

(a) A jockey or apprentice jockey shall not ride in a race unless the jockey or apprentice jockey is wearing a safety vest.

(b) Each safety vest shall provide shock absorbing protection to the upper body with a minimum rating of five, as defined by the British equestrian trade association (BETA).

(c) A safety vest shall weigh no more than two pounds and shall not be included in the jockey's weight when weighing out to race.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1993 Supp. 74-8804; effective, T-112-5-13-94, May 13, 1994; effective Sept. 6, 1994.)

Article 8 Rules of Racing

Kan. Admin. Regs. § 112-8-2 Registration

(a) No greyhound shall be entered or permitted to race or to be schooled at any racetrack licensed by the commission unless it is properly registered by the national greyhound association of Abilene, Kansas. The national greyhound association shall be recognized as the official registry of all greyhounds subject to K.S.A. 1987 Supp. 74-8832 (b) and (c).

(b) A greyhound's four past-performance lines, or all past-performance lines if there are fewer than four, shall be submitted to the racing secretary when the greyhound is to be schooled, entered or raced.

(c) A certificate of registration for each greyhound shall be filed with the racing secretary at the racetrack where the greyhound is to be schooled, entered, or raced. Each certificate of registration shall be available at any time for inspection by the racing judges.

(d) Each transfer of title to a leasehold or other interest in a greyhound that is to be schooled, entered or raced at any race track shall be registered and recorded with the national greyhound association of Abilene, Kansas.

(e) Each title, leasehold, or other interest in any greyhound shall not be recognized by the commission until the title, leasehold, or other interest is evidenced by a written instrument duly filed with and recorded by the national greyhound association of Abilene, Kansas, and certified copies are filed with the racing secretary at the race track where the greyhound is to be schooled, entered or raced.

(f) When a greyhound is sold or transferred or any interest in a greyhound is sold or transferred, during a meet and after the greyhound has been registered for the meet, a photocopy of the certificate of registration shall be filed with the racing secretary and shall be retained by the racing secretary for two weeks.

(g) Each lessee of a greyhound shall file a copy of the lease agreement with the racing secretary. Each lease agreement shall include:

(1) The name of the greyhound;

(2) the name and address of the owner;

(3) the name and address of the lessee;

(4) the kennel name, if any, of each party; and

(5) the terms of the lease.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by 1988 HB 2774, Sec. 3; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989.)

Kan. Admin. Regs. § 112-8-3 Entries

(a) Each greyhound entered in a race shall be entered in the name of the registered owner. The following information shall be registered with the racing secretary before each greyhound starts at any meet:

(1) the full name of each person having any ownership interest in a greyhound or in a greyhound's winnings; and

(2) the full name of each person who is party to a transaction whereby the ownership interest in a greyhound or in the greyhound's winnings changes during the race meeting.

(b) Each entrance in a race shall be free unless otherwise stipulated in the conditions.

(c) The person having the greatest ownership or property interest in a greyhound shall assume all rights or duties of an owner as provided by these regulations, including but not limited to the right of entry and withdrawal.

(d) Any racing judge may call on any person in whose name a greyhound is entered to produce proof that the greyhound entered is not owned wholly or in part by any person who is disqualified, or to produce proof of the extent of any ownership or property interest in the greyhound. If the racing judge is not satisfied by the proof, the racing judge shall scratch the greyhound from the race.

(e) Any greyhound that has not been fully identified shall not start in any race.

(f) Each person who misrepresents the identity of a greyhound or its ownership shall be liable as an owner would be liable and shall be subject to the same penalty as the owner in the case of fraud or attempted fraud.

(g) No greyhound shall enter or start any race if the greyhound:

(1) has been disqualified;

(2) is owned in whole or in part or is under the control, directly or indirectly, of a disqualified person;

(3) is not under the control of a licensed trainer or a licensed assistant trainer; or

(4) is on the veterinarian's list or schooling list.

(h) A female greyhound in season shall not be permitted on the race track. A female greyhound in milk shall not school officially or race.

(i) The racing secretary shall without delay compile and conspicuously post each entry that has been closed.

(j) No kennel shall have more than two greyhounds in any race except in stakes races. Double entries shall not be allowed until all single entries are used.

(k) Each entry for every official race shall be established by blind draw by the racing secretary or the racing secretary's designee in the presence of a racing judge and in full view of any licensed persons wishing to observe the draw. The time and place of each draw shall be posted in the paddock, and each draw shall occur at least one raceday before the running of each race. The kennel owners and trainers may be represented at the draw at the designated time. The racing secretary may select entries for two Grade A—Feature races weekly without using the blind draw method.

(l) Each post position for every official race shall be established by blind draw by the racing secretary or the racing secretary's designee in the presence of a racing judge or the chief racing judge's designee and in full view of any persons wishing to observe the draw. Each draw shall be held at least one day before the running of each race at a time and place posted in the paddock. The kennel owners and trainers may be represented at the draw at the designated time. The racing secretary shall draw post positions for official schooling races.

(m) Each organization licensee shall have the right to withdraw or change any unclosed race.

(1) Each entry for stakes races, the conditions of which have been published previously, shall be closed at the time advertised, and no entry shall be received after that time.

(2) Unless notice is given, each entrance and withdrawal for stakes races that close on the eve of a race meet shall close at the office of the racing secretary. Each entrance and withdrawal for all other stakes races shall close at the office of the organization licensee.

(3) If the number of entries to any stakes race exceeds the number of greyhounds that may be permitted to start because of track limitations, the racing secretary shall determine the starters for the race in accordance with the conditions of the race.

(4) Each person entering a greyhound shall be liable for the entrance fees.

(5) The entrance money in every race shall be distributed as provided in the conditions of the race. If a race is not run, all stakes or entrance money shall be refunded.

(6) The death of the nominator or subscriber shall not void any entry, subscription or right of entry under it.

(7) No person shall enter or start a greyhound in a race unless any stakes or entrance money payable for the race has been duly paid.

(8) Each racing secretary shall be authorized to receive entries and withdrawals.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-8804; implementing K.S.A. 1989 Supp. 74-8804; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended March 25, 1991.)

Kan. Admin. Regs. § 112-8-4 Withdrawals and scratches

(a) Each withdrawal of a greyhound from a race shall be irrevocable.

(b) Each withdrawal in stakes races shall be made in the same manner as that provided by K.A.R. 112-8-3 for making entries to the racing secretary, who shall record the day and hour of receipt of any withdrawal and post the withdrawal.

(c) Each withdrawal in official races shall be made by the owner, trainer, or authorized agent to the racing secretary at least one-half hour before the time designated for the drawing of post positions or at the time the racing secretary may appoint.

(d) Each greyhound that is withdrawn by a kennel from a race after the post positions are drawn shall lose all preference accrued up to that date and shall not be eligible for reentry until the race from which the greyhound was withdrawn has been run, unless otherwise approved by the racing judges. No substitution for the withdrawn greyhound shall be made from the kennel that withdrew the greyhound. Each greyhound that is withdrawn after the printing of the official program shall be deemed a scratch.

(1) Each owner, trainer, or authorized agent shall demonstrate sufficient cause to satisfy the racing judges before the judges may scratch any greyhound that has been entered in a race. Each cause to scratch a greyhound shall be reported to the racing judges as soon as the cause is known.

(2) If any greyhound is scratched as a result of the violation of a racing regulation, the greyhound may be penalized or suspended, or both, for six live racing days. The racing judges shall determine penalties for scratches due to other causes.

(3) If any owner or trainer fails to have the greyhound entered at the racetrack at the appointed time for weighing in and the greyhound is scratched because of the failure, the owner or trainer may be fined or suspended, or both, by the racing judges.

(4) If three or more greyhounds are scratched in any one race, the race may be canceled by the racing judges.

(5) A greyhound may be scratched from a race for sufficient cause by the racing judges.

(6) Each greyhound that is scratched from a race because of being overweight or underweight shall be suspended six calendar days and shall school back before starting in an official race. Any greyhound that is scratched because it is overweight or underweight may school back during its suspension.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8804; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 25, 1991; amended Sept. 5, 2003.)

Kan. Admin. Regs. § 112-8-5 Schooling

(a) Each greyhound shall be schooled properly in the presence of the racing judges. The judges shall determine that a greyhound is sufficiently experienced before the greyhound may be entered or started in a race.

(b) The distance of each schooling race shall be not less than the distance nearest to 5⁄16 mile used at the racetrack.

(c) Each greyhound that has not raced for 10 live racing days or 15 calendar days, whichever is less, shall be schooled officially at least once at its racing weight before it is eligible for entry.

(d) Except as specified in this subsection, each official schooling race shall consist of at least six greyhounds. However, the racing judges may permit fewer greyhounds to facilitate schooling.

(e) Each greyhound participating in an official schooling race shall be at its established racing weight and start from the box wearing a racing muzzle and blanket approved by the racing judges.

(f) Any greyhound may be ordered on the schooling list by the racing judges at any time for good cause. The greyhound shall be schooled officially and satisfactorily before it is allowed to enter a race.

(g) Each organization licensee shall provide a photo-finish camera, approved by the commission, which shall be operated at all official schooling races. The organization licensee shall provide videotapes of official schooling races. The tapes shall be available for viewing at the times posted at the racetrack.

(h) Except as specified in this subsection, each organization licensee shall provide, without cost, a minimum of two official schooling days and two unofficial schooling days per week at the parimutuel racetrack facility during the race meet. However, if an organization licensee schedules only three or fewer race days per week, the licensee shall provide a minimum of one official schooling day and two unofficial schooling days per week during the race meet. The official and unofficial schoolings shall be scheduled at specific times and for sufficient duration to allow reasonable time for the greyhounds to school.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8804; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 25, 1991; amended Sept. 5, 2003.)

Kan. Admin. Regs. § 112-8-6 Qualification of greyhounds

(a) Each organization licensed by the commission shall establish criteria to qualify greyhounds based on a satisfactory schooling and subject to the approval of the racing judges.

(b) Each organization licensee shall notify the racing judges of the criteria for qualifying greyhounds and detail what constitutes a satisfactory schooling at least three days before the first day of official schooling. The criteria shall be continuously posted on a notice board in the paddock during the time they are in effect. During the course of the meet, each change in the established qualifying criteria shall be made only with the approval of the racing judges.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by 1988 HB 2774, Sec. 3; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989.)

Kan. Admin. Regs. § 112-8-7 Grading and purse systems

(a) Each organization licensee shall implement a grading system to be approved by the commission. The system shall use the designations A—Feature, A,B,C,D,E and M. Each organization shall also implement a purse system to be approved by the commission. The system shall allocate the total purse. The total purse shall be divided to allocate fifty percent to first place, twenty-five percent to second place, fifteen percent to third place and ten percent to fourth place. The percentages of the total purse shall not apply to stakes money.

(b) Each organization licensee shall submit the proposed grading system and proposed purse system to the commission for approval at least 30 days before the opening of the meet.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by 1988 HB 2774, Sec. 3; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989.)

Kan. Admin. Regs. § 112-8-8 Weights, weighing, and weigh-in

(a) Each greyhound shall be weighed not less than one hour before the time of the first race of the day unless prior permission is granted by a racing judge.

(b) Before any greyhound may officially school or race, each kennel owner or trainer shall establish the racing weight of the greyhound with the clerk of scales.

(c) If there is a variation of more than one and one-half pounds above or below the established weight of the greyhound at weighing-in time, the racing judges shall order the greyhound scratched.

(d) If any greyhound has lost more than two pounds at weigh-out time from its weigh-in weight while in the lock-out kennel, the racing judges may order the greyhound scratched. If the loss of weight does not impair the racing condition of the greyhound in the opinion of the assistant animal health officer, the racing judges may allow the greyhound to race. Each greyhound that is a weight loser shall be identified with the initials WL on the racing program.

(e) Each weight regulation set out in subsections (a) through (d) of this regulation shall be printed in the racing program.

(f) The racing judges shall scratch a greyhound if there is a variation of more than two pounds between the greyhound's weighing-in weight for the present race and the weighing-in weight for its last race.

(g) Any kennel owner or trainer may file a written request to change a greyhound's racing weight with the racing judges. The judges shall state in writing whether the change is allowed and shall direct the change to be made four calendar days before the greyhound is permitted to start at the new weight.

(1) Each greyhound that has an established weight change of more than one pound shall be schooled at least once at the new established weight before it is eligible to start in a race. The racing judges may require more than one schooling in this event.

(2) Any greyhound that has not raced or schooled officially for a period of three weeks may be allowed to establish a new racing weight with the permission of the racing judges.

(h) Subject to the approval of the commission, a second weigh-in may be held during performances with more than 13 races, if a sufficient number of crates are available in the lock-out kennels.

(i) Each greyhound shall be placed in the lock-out kennel under the supervision of the paddock judge immediately after it is weighed in, and only the paddock judge, the animal health officer, the assistant animal health officers, the kennel master, the lead-outs, or the racing judges shall enter the lock-out kennels. None of these individuals shall enter the lock-out kennels unaccompanied.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-8804; implementing K.S.A. 1989 Supp. 74-8804; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 25, 1991.)

Kan. Admin. Regs. § 112-8-9 Before and between the races

(a) One assistant animal health officer, one racing judge, and one representative of the organization licensee shall walk the racing strip before the commencement of the first race of each performance and between races, if necessary, to determine whether the racing strip is safe for racing.

(b) If the assistant animal health officer, the racing judge, and the representative of the organization licensee at any time before or between any races determine that formful and safe racing cannot be conducted, then the assistant animal health officer and the racing judge or management may cancel the remainder of the race program.

(c) One representative of the kennel operators and trainers may accompany the assistant animal health officer, the representative of the organization licensee, and the racing judge during each walk around the racing strip. The number of individuals walking the racing strip before the first race of each performance shall not exceed four.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8825; effective, T-112-3-31-89, March 31, 1989; effective April 10, 1989; amended June 26, 1989; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-8-10 Rules of the race

(a) Each greyhound shall wear a racing muzzle and blanket approved by the racing judges while racing.

(b) Before the greyhounds leave for the post, each racing muzzle and blanket shall be carefully examined in the paddock by the paddock judge subject to the supervision of the chief racing judge or the chief racing judge's designee. Each muzzle and blanket shall be examined once more at the judges' stand in the presence of the racing judges and the public.

(d) A race starts when the lid to the starting box opens completely.

(e) All greyhounds shall be removed from the starting box in the event of a false start. After the malfunction in the equipment is corrected, the racing judges shall determine whether the race will be canceled or run.

(f) If a greyhound remains in the box when the lid of the starting box opens, there shall be no refund of wagers.

(g) If a greyhound bolts the course, runs in the opposite direction or does not run the entire prescribed distance for the race, the greyhound shall forfeit all rights in the race. The greyhound shall be considered a starter, but the finish of the race shall be declared the same as if it were not a contender.

(h) If a greyhound bolts the course or runs in the opposite direction during the course of the race and, in the opinion of the racing judges, interferes with any other greyhound in the race, the race shall be declared a "no race" by the racing judges, and all moneys wagered shall be refunded, except when the interference did not affect the outcome of the race in the opinion of the racing judges.

(i) If a greyhound fails to leave the box for any reason, refuses to race or falls and it appears that the greyhound may interfere with the running of the race, any person under the supervision of the racing judges stationed around the track, may remove the greyhound from the track. However, the greyhound shall be considered a starter.

(j) No race shall be called official unless the lure is in advance of the greyhounds at all times during the race. If any greyhound or greyhounds catch or pass the lure during the race, the race shall be declared a "no race" by the racing judges, and all moneys shall be refunded.

(k) The racing judges shall closely observe the operation of the lure and hold the lure operator to strict accountability for any inconsistency in its operation.

(1) If any race is marred by jams, spills or racing circumstances other than accident to the machinery while the race is being run, and three or more greyhounds finish, the race shall be declared finished by the racing judges. However, if fewer than three greyhounds finish, the race shall be declared "no race" by the racing judges, and all moneys shall be refunded.

(m) The winner of a race shall be the greyhound whose racing muzzle first reaches the finish line, unless the greyhound is disqualified by the racing judges for ineligibility or other good cause. In the event a greyhound loses its muzzle or finishes with a hanging muzzle, the tip of the greyhound's nose shall determine its order of finish.

(n) If two greyhounds run a dead heat for first place, all prizes and moneys to which the first and second greyhounds would have been entitled shall be divided equally between them. This regulation applies to any division of prizes and moneys, whatever the number of greyhounds running a dead heat and whatever places for which the dead heat is run.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-8804; implementing K.S.A. 1989 Supp. 74-8804; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 25, 1991.)

Kan. Admin. Regs. § 112-8-11 Limitation on performances

Each organization licensee shall not schedule more than two greyhound performances during one race day.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by 1988 HB 2774, Sec. 3; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989.)

Kan. Admin. Regs. § 112-8-12 Complaints

Each complaint against an official or officials shall be made in writing, signed by the complainant and filed with the racing judges. Complaints that allege the violation of any law of the state of Kansas or regulation of the commission may be made by any person. Each complaint and the racing judges' decision concerning it shall be reported to the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by 1988 HB 2774, Sec. 3; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989.)

Kan. Admin. Regs. § 112-8-13 Housing of greyhounds

(a) All greyhounds entered into an official race shall be housed in kennel facilities located on the premises provided by the organization licensee.

(b) Greyhounds brought to the racetrack for the specific purpose of participating in stakes races, qualifying rounds and schoolings necessary for the stakes race, may be housed off the racetrack facility subject to the terms and conditions specified by the racetrack facility and with the approval of the racing judges.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1993 Supp. 74-8804; effective Sept. 6, 1994.)

Article 9 Parimutuel Wagering

Kan. Admin. Regs. § 112-9-1 Definitions as used in these regulations and the racing act

(a) "Business day," as used in K.S.A. 74-8823(c) and amendments thereto, shall mean the first working day following a performance.

(b) "Working day," as used in subsection (a) above, shall have the same meaning as set forth for "business day" in K.S.A. 45-217(a), and amendments thereto.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804 as amended by L. 1994, Ch. 146, Sec. 3 and implementing K.S.A. 1993 Supp. 74-8823; effective Sept. 6, 1994; amended July 10, 1995.)

Kan. Admin. Regs. § 112-9-2 Mutuel facilities

(a) Each organization licensee shall provide:

(1) A window for each teller-cashier with a clear, legible sign, visible to the public, and showing the number of the window; and

(2) a ticket-issuing machine for each teller or teller-cashier.

(b) Each organization licensee shall use ticket-issuing machines linked to a computer-based totalisator system that:

(1) Records the progressive, the aggregate, and the final total of dollars bet in each pool and on each wagering entry or mutuel field;

(2) computes the approximate and final odds in the win pool for each wagering entry in each race in intervals not greater than 90 seconds or at such other lesser intervals, and relays those odds to the infield display board, and if applicable, to other display devices;

(3) computes commissions, breaks and components thereof; and

(4) computes the pay-off prices.

(c) For the purpose of confirming the final record of parimutuel sales for each race, each organization licensee shall for win, place, show and feature pools:

(1) Either obtain a ticket-issuing machine take-off and teller history, or store on magnetic media the following information for each ticket-issuing machine:

(A) Each bet sold on each wagering entry or combination of entries; and

(B) the total number of bets sold on each entry and combination of entries and their dollar equivalent, by each individual ticket-issuing machine and in total; and

(2) produce upon request by the commission or its designated representatives a computer print-out that shows the information required in subparagraph (B).

(d) Each organization licensee shall provide an alternate system of electrical supply to provide an alternate system of electrical supply to provide sufficient power to operate the central processing unit or the unit that accepts or stores wagering data.

(e) Each organization licensee shall provide, for the purpose of locking ticket-issuing machines at the start of each race:

(1) one device located in an approved area within the stewards' or judges' stand that:

(A) is controlled by a commission representative;

(B) logically disables all ticket-issuing machines from issuing tickets on the current race; and

(2) one device located in the totalisator room for use as an emergency locking device.

(f) Each ticket shall be identified by a unique computer-generated ticket number. Where non-resettable, ticket-issuing machine counters are used, each counter shall be read and recorded before the start and after the finish of wagering for each race. Where the counts are accumulated by machine, the sales accumulators shall be set to zero after the sales have been recorded and before wagering on the next race begins.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8804 and 74-8813; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended, T-112-3-1-93, March 1, 1993; amended, T-112-6-15-93, June 15, 1993; amended Sept. 27, 1993.)

Kan. Admin. Regs. § 112-9-3 Parimutuel wagering

Each form of wagering shall be used only with permission of the commission and in accordance with the provisions of the Kansas parimutuel racing act.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804 (p); implementing K.S.A. 1988 Supp. 8819 (b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-4 Parimutuel tickets

(a) Each parimutuel ticket shall be evidence of a contribution to the parimutuel pool operated by the organization licensee and shall be evidence of the obligation of the organization licensee to pay to each holder the portion of the distributable amount of the parimutuel pool that is represented by each valid parimutuel ticket. Each organization licensee shall cash each valid, unmutilated winning ticket when each ticket is presented for payment during the course of the meeting where sold, and for a period of 60 days after the close of the race meeting.

(b) Each valid parimutuel ticket shall have been issued by a parimutuel ticket machine operated by the organization licensee and recorded as a ticket entitled to a share of the parimutuel pool, and contained imprinted information as to:

(1) The name of the organization licensee operating the meeting and the racetrack;

(2) the date of the wagering transaction and the date of the race;

(3) a unique identifying number or code;

(4) the race number for which the pool is conducted;

(5) the type or types of wager represented;

(6) the number or numbers representing the wagering interest for which the wager is recorded;

(7) the amount or amounts of the contribution to the parimutuel pool or pools for which the ticket is evidence; and

(8) the number of the ticket issuing machine.

(c) Each parimutuel ticket recorded or reported as previously paid, canceled or nonexistent shall be deemed an invalid parimutuel ticket by the organization licensee.

(d) Any organization licensee may withhold payment and may refuse to cash any parimutuel ticket deemed not valid.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804 (p); implementing K.S.A. 1988 Supp. 74-8819; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-5 Claim for payment for parimutuel pool

(a) Each organization licensee shall accept a written, verified claim for payment from a parimutuel pool in any case where the organization licensee has withheld payment or has refused to cash a parimutuel ticket presented for payment within 60 days after the close of the race meeting. Each claim shall be made on a form approved by the commission. Each claimant making a claim shall do so under penalty of perjury. The original of each claim shall be promptly forwarded to the commission.

(b) Each organization licensee shall deliver to the commission each claim made for payment of a mutilated parimutuel ticket that contains the total imprinted elements required in K.A.R. 112-9-4.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804 (p); implementing K.S.A. 1988 Supp. 74-8822; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-9-6 Lost or destroyed tickets

Each claim for a lost or destroyed parimutuel ticket shall not be accepted by the organization licensee nor by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8822; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-7 Uncashed tickets

(a) Each organization licensee shall carry on its books an account that shows the total amount due on outstanding uncashed mutuel tickets. Each winning ticket remaining unpaid at the close of each performance shall be entered in a book known as the "outsbook" at the actual price paid to the public. A record of all unpaid parimutuel tickets shall be prepared and forwarded to the commission within 61 days after the close of the race meeting. Each unclaimed ticket cashed after the close of the season shall bear the date it was paid, check number and the amount paid.

(b) when outsbooks are compiled by data processing systems or computerized totalisator equipment, the following minimum requirements shall apply:

(1) All printed outs summaries and printed outs ledger sheets shall be placed in a separate binder in chronological order. Each organization licensee shall safeguard these records; and

(2) the daily outs summary printout shall include for each previous performance:

(A) The performance number;

(B) the number and amount of tickets outstanding before the current performance;

(D) the remaining number and amount of uncashed tickets at the close of the current performance.

(c) Before the close of the next business day after each performance, each organization licensee shall deliver to the commission office a copy of the totalisator company report showing the daily accumulation of the outs.

(d) Each organization licensee shall safeguard all records pertaining to parimutuel operations including all cash winning parimutuel tickets and admission records, for as long as the commission requires. The records shall not be destroyed without written permission of the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804 (p); implementing K.S.A. 1988 Supp. 74-8804 (c) and 74-8804 (p); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-9-8 Accounting

(a) Each organization licensee conducting race meetings shall submit to the commission by the close of the next business day following the end of the race meet a report listing the total number of paid admissions, passes and occupation licensees, not employed by the organization licensee or the commission, admitted to the racetrack facility, the total amount contributed to each parimutuel pool on each race and the amount of money received daily from paid admission fees.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804 (c) and 74-8804 (p); implementing K.S.A. 1988 Supp. 74-8804 (p); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-9-9 Parimutuel pools

(a) Each organization licensee shall provide win, place and show pools in each race in which there are five or more separate wagering interests that are obligated to start.

(b) Each organization licensee shall provide win and place pools in each race where there are four separate wagering interests that are obligated to start.

(c) Each organization licensee shall provide a win pool in each race where less than four separate wagering interests are obligated to start.

(d) The requirement for a place or show pool in any race may be waived by the stewards or racing judges.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804 (p) and implementing K.S.A. 74-8819 (b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-10 Distribution of pools

After the results of each race have been declared official by the stewards or racing judges, each parimutuel pool shall be distributed to each parimutuel ticket holder entitled to share in a respective pool in accordance with the provisions of the Kansas parimutuel racing act and article 112 of these regulations. If two wagering interests finish in a race, the show pool, if any, shall be distributed the same as in a place pool. When only one wagering interest finishes in a race, the place pool and show pool, if any, shall be distributed the same as in a win pool. If no wagering interest finishes in a race or the race is declared a no contest by the stewards or racing judges, all money wagered on the race shall be refunded to ticket holders.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804 (p); implementing 74-8819 (b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-11 Race declared official

(a) Each decision of the stewards or racing judges regarding the order of finish shall be final at the time the stewards or racing judges order the official sign displayed on the totalisator board. Each ruling of the stewards or racing judges or the commission regarding the order of finish or any award of purse money made after the result of the race has been declared official shall not affect the parimutuel payoff or the distribution of any parimutuel pool. An inadvertent mistake in the posting of the official order of finish may be corrected by the stewards or judges before the running of the next race.

(b) Each racing animal shall be considered a starter for a race when the doors of the starting gate or starting box open in the front of the racing animal at the time the official starter dispatches the racing animals.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-9-11a General provisions

(a) Each parimutuel wagering pool shall be independently calculated and distributed. The takeout shall be deducted from each gross pool as authorized by law. The remaining monies in the pool shall constitute the net pool for distribution as payoff on winning wagers.

(b) For each wagering pool, the amount wagered on the winning betting interest or betting combinations shall be deducted from the net pool to determine the profit. The profit then shall be divided by the amount wagered on the winning betting interest or combinations, the quotient being the profit per dollar.

(c) The standard or the net price calculation procedure shall be used to calculate single commission pools, but only the net price calculation procedure shall be used to calculate multi-commission pools.

(d) If a profit split results in only one covered winning betting interest or combinations it shall be calculated the same as a single price pool.

(e) Minimum payoffs and the method used for calculating breakage shall be established by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8819, as amended by L. 1991, ch. 247, § 5; effective June 1, 1992.)

Kan. Admin. Regs. § 112-9-12 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8819(b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; revoked June 1, 1992.)

Kan. Admin. Regs. § 112-9-12a Win pools

(a) The amount wagered on the betting interest which finishes first shall be deducted from the net pool. The balance remaining shall be the profit. The profit shall be divided by the amount wagered on the betting interest finishing first, the quotient being the profit per dollar wagered to win on the betting interest.

(b) The net win pool shall be distributed as a single price pool to winning wagers in the following precedence, based upon the official order of finish:

(1) to those whose selection finishes first, but if there are no such wagers; then

(2) to those whose selection finishes second, but if there are no such wagers; then

(3) to those whose selection finishes third, but if there are no such wagers; then

(4) the entire pool shall be refunded on win wagers for that contest.

(c) If there is a dead heat for first involving contestants representing the same betting interest, the win pool shall be distributed as if no dead heat occurred.

(d) If there is a dead heat for first involving contestants representing two or more betting interests, the win pool shall be distributed as a profit split.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 74-8819, as amended by L. 1991, ch. 247, § 5; effective June 1, 1992.)

Kan. Admin. Regs. § 112-9-13 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8819(b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended March 19, 1990; revoked June 1, 1992.)

Kan. Admin. Regs. § 112-9-13a Place pools

(a) The amounts wagered to place on the first two betting interests to finish shall be deducted from the net pool. The balance remaining shall be the profit. The profit shall be divided into two equal portions, one being assigned to each winning betting interest and divided by the amount wagered to place on that betting interest, the quotient being the profit per dollar wagered to place on that betting interest.

(b) The net place pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

(1) if contestants of a coupled entry or mutuel field finish in the first two places, as a single price pool to those who selected the coupled entry or mutuel field; otherwise

(2) as a profit split to those whose selection is included within the first two finishers; but if there are no such wagers on one of those two finishers, then

(3) as a single price pool to those who selected the one covered betting interest included within the first two finishers; but if there are no such wagers, then

(4) as a single price pool to those who selected the third-place finisher; but if there are no such wagers, then

(5) the entire pool shall be refunded on place wagers for that contest.

(c) If there is a dead heat for first involving contestants representing the same betting interest, the place pool shall be distributed as a single price pool.

(d) If there is a dead heat for first involving contestants representing two or more betting interests, the place pool shall be distributed as a profit split.

(e) If there is a dead heat for second involving contestants representing the same betting interest, the place pool shall be distributed as if no dead heat occurred.

(f) If there is a dead heat for second involving contestants representing two or more betting interests, the place pool shall be divided, with one-half of the profit distributed to place wagers on the betting interest finishing first and the remainder distributed equally among place wagers on those betting interests involved in the dead heat for second.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8819, as amended by L. 1991, ch. 247, § 5; effective June 1, 1992.)

Kan. Admin. Regs. § 112-9-14 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8819(b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; revoked June 1, 1992.)

Kan. Admin. Regs. § 112-9-14a Show pools

(a) The amounts wagered to show on the first three betting interests to finish shall be deducted from the net pool. The balance remaining shall be the profit. The profit shall be divided into three equal portions, one being assigned to each winning betting interest and divided by the amount wagered to show on that betting interest, the quotient being the profit per dollar wagered to show on that betting interest.

(b) The net show pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

(1) if contestants of a coupled entry or mutuel field finish in the first three places, as a single price pool to those who selected the coupled entry or mutuel field; otherwise

(2) if contestants of a coupled entry or mutuel field finish as two of the first three finishers, the profit shall be divided, with two-thirds distributed to those who selected the coupled entry or mutuel field and one-third distributed to those who selected the other betting interest included within the first three finishers; otherwise

(3) as a profit split to those whose selection is included within the first three finishers; but if there are no such wagers on one of those three finishers, then

(4) as a profit split to those who selected one of the two covered betting interests included within the first three finishers; but if there are no such wagers on two of those three finishers, then

(5) as a single price pool to those who selected the one covered betting interest included within the first three finishers; but if there are no such wagers, then

(6) as a single price pool to those who selected the fourth-place finisher; but if there are no such wagers, then

(7) the entire pool shall be refunded on show wagers for that contest.

(c) If there is a dead heat for first involving two contestants representing the same betting interest, the profit shall be divided, with two-thirds distributed to those who selected the first-place finishers and one-third distributed to those who selected the betting interest finishing third.

(d) If there is a dead heat for first involving three contestants representing a single betting interest, the show pool shall be distributed as a single price pool.

(e) If there is a dead heat for first involving contestants representing two or more betting interests, the show pool shall be distributed as a profit split.

(f) If there is a dead heat for second involving contestants representing the same betting interest, the profit shall be divided with one-third distributed to those who selected the betting interest finishing first and two-thirds distributed to those who selected the second-place finishers.

(g) If there is a dead heat for second involving contestants representing two betting interests, the show pool shall be distributed as a profit split.

(h) If there is a dead heat for second involving contestants representing three betting interests, the show pool shall be divided, with one-third of the profit distributed to show wagers on the betting interest finishing first and the remainder distributed equally among show wagers on those betting interests involved in the dead heat for second.

(i) If there is a dead heat for third involving contestants representing the same betting interest, the show pool shall be distributed as if no dead heat occurred.

(j) If there is a dead heat for third involving contestants representing two or more betting interests, the show pool shall be divided, with two-thirds of the profit distributed to show wagers on the betting interests finishing first and second and the remainder distributed equally among show wagers on those betting interests involved in the dead heat for third.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8819, as amended by L. 1991, ch. 247, § 5; effective June 1, 1992.)

Kan. Admin. Regs. § 112-9-15 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8819(b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; revoked June 1, 1992.)

Kan. Admin. Regs. § 112-9-15a Daily double pools

(a) The daily double requires selection of the first-place finisher in each of two specified contests.

(b) The net daily double pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

(1) as a single price pool to those whose selection finishes first in each of the two contests; but if there are no such wagers, then

(2) as a profit split to those who selected the first-place finisher in either of the two contests; but if there are no such wagers, then

(3) as a single price pool to those who selected the one covered first-place finisher in either contest; but if there are no such wagers, then

(4) as a single price pool to those whose selection finishes second in each of the two contests; but if there are no such wagers, then

(5) the entire pool shall be refunded on daily double wagers for those contests.

(c) If there is a dead heat for first in either of the two contests involving contestants representing the same betting interest, the daily double pool shall be distributed as if no dead heat occurred.

(d) If there is a dead heat for first in either of the two contests involving contestants representing two or more betting interests and there is more than one covered winning combination, the daily double pool shall be distributed as a profit split.

(e) If a betting interest in the first-half of the daily double is scratched before the first daily double contest is declared official, all money wagered on combinations including the scratched betting interest shall be deducted from the daily double pool and refunded.

(f) If a betting interest in the second-half of the daily double is scratched before the close of wagering on the first daily double contest, all money wagered on combinations including the scratched betting interest shall be deducted from the daily double pool and refunded.

(g) If a betting interest in the second-half of the daily double is scratched after the close of wagering on the first daily double contest, all wagers combining the winner of the first contest with the scratched betting interest in the second contest shall be allocated a consolation payoff. In calculating the consolation payoff the net daily double pool shall be divided by the total amount wagered on the winner of the first contest and an unbroken consolation price obtained. The broken consolation price shall be multiplied by the dollar value of wagers on the winner of the first contest combined with the scratched betting interest to obtain the consolation payoff. Breakage shall not be included in this calculation. The consolation payoff shall be deducted from the net daily double pool before calculation and distribution of the winning daily double payoff. Dead heats including separate betting interests in the first contest shall result in a consolation payoff calculated as a profit split.

(h) If either of the daily double contests is canceled prior to the first daily double contest, or the first daily double contest is declared "no contest," the entire daily double pool shall be refunded on daily double wagers for those contests.

(i) If the second daily double contest is canceled or declared "no contest" after the conclusion of the first daily double contest, the net daily double pool shall be distributed as a single price pool to wagers selecting the winner of the first daily double contest. In the event of a dead heat involving separate betting interests, the net daily double pool shall be distributed as a profit split.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8819, as amended by L. 1991, ch. 247, § 5; effective June 1, 1992.)

Kan. Admin. Regs. § 112-9-16 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8819(b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; revoked June 1, 1992.)

Kan. Admin. Regs. § 112-9-16a Quinella pools

(a) The quinella requires selection of the first two finishers, regardless of order, for a single contest.

(b) Each net quinella pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

(1) if contestants of a coupled entry or mutuel field finish as the first two finishers, as a single price pool to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish; otherwise

(2) as a single price pool to those whose combination finishes as the first two betting interests; but if there are no such wagers, then

(3) as a profit split to those whose combination includes either the first- or second-place finisher; but if there are no such wagers on one of those two finishers, then

(4) as a single price pool to those whose combination includes the one covered betting interest included within the first two finishers; but if there are no such wagers, then

(5) the entire pool shall be refunded on quinella wagers for that contest.

(c) If there is a dead heat for first involving contestants representing the same betting interest, the quinella pool shall be distributed to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish.

(d) If there is a dead heat for first involving contestants representing two betting interests, the quinella pool shall be distributed as if no dead heat occurred.

(e) If there is a dead heat for first involving contestants representing three or more betting interests, the quinella pool shall be distributed as a profit split.

(f) If there is a dead heat for second involving contestants representing the same betting interest, the quinella pool shall be distributed as if no dead heat occurred.

(g) If there is a dead heat for second involving contestants representing two or more betting interests, the quinella pool shall be distributed to wagers in the following precedence, based upon the official order of finish:

(1) as a profit split to those combining the winner with any of the betting interests involved in the dead heat for second; but if there is only one covered combination, then

(2) as a single price pool to those combining the winner with the one covered betting interest involved in the dead heat for second; but if there are no such wagers, then

(3) as a profit split to those combining the betting interests involved in the dead heat for second; but if there are no such wagers, then

(4) as a profit split to those whose combination includes the winner and any other betting interest and wagers selecting any of the betting interests involved in the dead heat for second; but if there are no such wagers, then

(5) the entire pool shall be refunded on quinella wagers for that contest.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8819, as amended by L. 1991, ch. 247, § 5; effective June 1, 1992.)

Kan. Admin. Regs. § 112-9-16b Quinella double pools

(a) The quinella double requires selection of the first two finishers, regardless of order, in each of two specified contests.

(b) The net quinella double pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

(1) if a coupled entry or mutuel field finishes as the first two contestants in either contest, as a single price pool to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish for that contest, as well as the first two finishers in the alternate quinella double contest; otherwise

(2) as a single price pool to those selecting the first two finishers in each of the two quinella double contests; but if there are no such wagers, then

(3) as a profit split to those selecting the first two finishers in either of the two quinella double contests; but if there are no such wagers on one of those contests, then

(4) as a single price pool to those selecting the first two finishers in the one covered quinella double contest; but if there are no such wagers, then

(5) the entire pool shall be refunded on quinella double wagers for those contests.

(c) If there is a dead heat for first in either of the two quinella double contests involving contestants representing the same betting interest, the quinella double pool shall be distributed to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish for that contest.

(d) If there is a dead heat for first in either of the two quinella double contests involving contestants representing two betting interests, the quinella double pool shall be distributed as if no dead heat occurred.

(e) If there is a dead heat for first in either of the two quinella double contests involving contestants representing three or more betting interests, the quinella double pool shall be distributed as a profit split.

(f) If there is a dead heat for second in either of the quinella double contests involving contestants representing the same betting interest, the quinella double pool shall be distributed as if no dead heat occurred.

(g) If there is a dead heat for second in either of the quinella double contests involving contestants representing two or more betting interests, the quinella double pool shall be distributed as a profit split.

(h) If a betting interest in the first-half of the quinella double is scratched before the first quinella double contest is declared official, all money wagered on combinations including the scratched betting interest shall be deducted from the quinella double pool and refunded.

(i) If a betting interest in the second-half of the quinella double is scratched before the close of wagering on the first quinella double contest, all money wagered on combinations including the scratched betting interest shall be deducted from the quinella double pool and refunded.

(j) If a betting interest in the second-half of the quinella double is scratched after the close of wagering on the first quinella double contest, all wagers combining the winning combination in the first contest with a combination including the scratched betting interest in the second contest shall be allocated a consolation payoff. In calculating the consolation payoff, the net quinella double pool shall be divided by the total amount wagered on the winning combination in the first contest and an unbroken consolation price obtained. The unbroken consolation price shall be multiplied by the dollar value of wagers on the winning combination in the first contest together with a combination including the scratched betting interest in the second contest to obtain the consolation payoff. Breakage shall not be included in this calculation. The consolation payoff shall be deducted from the net quinella double pool before calculation and distribution of the winning quinella double payoff. In the event of a dead heat involving separate betting interests, the net quinella double pool shall be distributed as a profit split.

(k) If either of the quinella double contests is canceled before the first quinella double contest, or the first quinella double contest is declared "no contest," the entire quinella double pool shall be refunded on quinella double wagers for those contests.

(l) If the second quinella double contest is canceled or declared "no contest" after the conclusion of the first quinella double contest, the net quinella double pool shall be distributed as a single price pool to wagers selecting the winning combination in the first quinella double contest. If there are no wagers selecting the winning combination in the first quinella double contest, the entire quinella double pool shall be refunded on quinella double wagers for those contests.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8819, as amended by L. 1991, ch. 247, § 5; effective June 1, 1992.)

Kan. Admin. Regs. § 112-9-17 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8819(b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; revoked June 1, 1992.)

Kan. Admin. Regs. § 112-9-17a Exacta pools

(a) The exacta requires selection of the first two finishers, in their exact order, for a single contest.

(b) Each net exacta pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

(2) as a single price pool to those whose combination finishes in correct sequence as the first two betting interests; but if there are no such wagers, then

(3) as a profit split to those whose combination includes either the first-place betting interest to finish first or the second-place betting interest to finish second; but if there are no such wagers on one of those two finishers, then

(4) as a single price pool to those whose combination includes the one covered betting interest to finish first or second in the correct sequence; but if there are no such wagers, then

(5) the entire pool shall be refunded on exacta wagers for that contest.

(c) If there is a dead heat for first involving contestants representing the same betting interest, the exacta pool shall be distributed as a single price pool to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish.

(d) If there is a dead heat for first involving contestants representing two or more betting interests, the exacta pool shall be distributed as a profit split.

(e) If there is a dead heat for second involving contestants representing the same betting interest, the exacta pool shall be distributed as if no dead heat occurred.

(f) If there is a dead heat for second involving contestants representing two or more betting interests, the exacta pool shall be distributed to ticket holders in the following precedence, based upon the official order of finish:

(1) as a profit split to those combining the first-place betting interest with any of the betting interests involved in the dead heat for second; but if there is only one covered combination, then

(2) as a single price pool to those combining the first-place betting interest with the one covered betting interest involved in the dead heat for second; but if there are no such wagers, then

(3) as a profit split to those wagers correctly selecting the winner for first-place and those wagers selecting any of the dead-heated betting interests for second-place; but if there are no such wagers, then

(4) the entire pool shall be refunded on exacta wagers for that contest.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8819, as amended by L. 1991, ch. 247, § 5; effective June 1, 1992.)

Kan. Admin. Regs. § 112-9-18 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8819(b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended March 19, 1990; revoked June 1, 1992.)

Kan. Admin. Regs. § 112-9-18a Trifecta pools

(a) The trifecta requires selection of the first three finishers, in their exact order, for a single contest.

(b) Each net trifecta pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish and disregarding all coupled or field entries other than the first contestant of a coupled or field entry to finish:

(1) as a single price pool to those whose combination finishes in correct sequence as the first three betting interests; but if there are no such wagers, then

(2) as a single price pool to those whose combination includes, in correct sequence, the first two betting interests; but if there are no such wagers, then

(3) as a single price pool to those whose combination correctly selects the first-place betting interest only; but if there are no such wagers, then

(4) the entire pool shall be refunded on trifecta wagers for that contest.

(c) If fewer than three betting interests finish and the contest is declared official, payoffs shall be made based upon the order of finish of those betting interests completing the contest. The balance of any selection beyond the number of betting interests completing the contest shall be ignored.

(d) If there is a dead heat for first involving contestants representing three or more betting interests, all of the wagering combinations selecting three betting interests which correspond with any of the betting interests involved in the dead heat shall share in a profit split.

(e) If there is a dead heat for first involving contestants representing two betting interests, both of the wagering combinations selecting the two dead-heated betting interests, regardless of order, shall share in a profit split along with the third-place betting interest.

(f) If there is a dead heat for second, all of the combinations correctly selecting the winner combined with any of the betting interests involved in the dead heat for second shall share in a profit split.

(g) If there is a dead heat for third, all wagering combinations correctly selecting the first two finishers, in correct sequence, shall share in a profit split along with any of the betting interests involved in the dead heat for third.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3; implementing K.S.A. 1991 Supp. 74-8819, as amended by L. 1992, Ch. 27, Sec. 6; effective June 1, 1992; amended, T-112-11-9-92, Nov. 9, 1992; amended, T-112-3-1-93, March 1, 1993; amended May 3, 1993.)

Kan. Admin. Regs. § 112-9-19 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8819(b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; revoked June 1, 1992.)

Kan. Admin. Regs. § 112-9-19a Twin quinella pools

(a) The twin quinella requires selection of the first two finishers, regardless of order, in each of two designated contests. Each winning ticket for the first twin quinella contest must be exchanged for a free ticket on the second twin quinella contest in order to remain eligible for the second-half twin quinella pool. Such tickets may be exchanged only at attended ticket windows prior to the second twin quinella contest. There shall be no monetary reward for winning the first twin quinella contest. Both of the designated twin quinella contests shall be included in only one twin quinella pool.

(b) In the first twin quinella contest only, winning wagers shall be determined using the following precedence, based upon the official order of finish for the first twin quinella contest:

(1) if a coupled entry or mutuel field finishes as the first two finishers, those who select the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish shall be winners; otherwise

(2) those whose combination finishes as the first two betting interests shall be winners; but if there are no such wagers, then

(3) those whose combination includes either the first- or second-place finisher shall be winners; but if there are no such wagers on one of those two finishers, then

(4) those whose combination includes the one covered betting interest included within the first two finishers shall be winners; but if there are no such wagers, then

(5) the entire pool shall be refunded on the twin quinella wagers for that contest.

(c) In the first twin quinella contest only, if there is a dead heat for first involving contestants representing the same betting interest, those who select the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish shall be winners.

(d) In the first twin quinella contest only, if there is a dead heat for first involving contestants representing two betting interests, the winning twin quinella wagers shall be determined as if no dead heat occurred.

(e) In the first twin quinella contest only, if there is a dead heat for first involving contestants representing three or more betting interests, those whose combination includes any two of the betting interests finishing in the dead heat shall be winners.

(f) In the first twin quinella contest only, if there is a dead heat for second involving contestants representing the same betting interest, those who select the first-place finisher combined with the coupled entry or mutuel field in second-place shall be winners.

(g) In the first twin quinella contest only, if there is a dead heat for second involving contestants representing two or more betting interests, those who combine the first-place finisher with any of the betting interests involved in the dead heat for second shall be winners.

(h) In the second twin quinella contest only, the entire net twin quinella pool shall be distributed to winning wagerers in the following precedence, based upon the official order of finish for the second twin quinella contest:

(1) if a coupled entry or mutuel field finishes as the first two finishers, as a single price pool to those who select the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish; otherwise

(2) as a single price pool to those whose combination finishes as the first two betting interests; but if there are no such wagers, then

(3) as a profit split to those whose combination includes either the first- or second-place finisher; but if there are no such wagers on one of those two finishers, then

(4) as a single price pool to those whose combination includes the one covered betting interest included within the first two finishers; but if there are no such wagers, then

(5) as a single price pool to all the exchange ticket holders for that contest; but if there are no such tickets, then

(6) in accordance with subparagraph (b) of this racing regulation.

(i) In the second twin quinella contest only, if there is a dead heat for first involving contestants representing the same betting interest, the net twin quinella pool shall be distributed to those selecting the coupled entry or mutuel field combined with the next separate betting interest in the official order of finish.

(j) In the second twin quinella contest only, if there is a dead heat for first involving contestants representing two betting interests, the net twin quinella pool shall be distributed as if no dead heat occurred.

(k) In the second twin quinella contest only, if there is a dead heat for first involving contestants representing three or more betting interests, the net twin quinella pool shall be distributed as a profit split to those whose combination includes any two of the betting interests finishing in the dead heat.

(l) In the second twin quinella contest only, if there is a dead heat for second involving contestants representing the same betting interest, the net twin quinella pool shall be distributed as if no dead heat occurred.

(m) In the second twin quinella contest only, if there is a dead heat for second involving contestants representing two or more betting interests, the net twin quinella pool shall be distributed as a profit split to those who combine the first-place finisher with any of the betting interests involved in the dead heat for second.

(n) If a winning ticket for the first-half of the twin quinella is not presented for exchange before the close of betting on the second-half twin quinella contest, the ticket holder forfeits all rights to any distribution of the twin quinella pool resulting from the outcome of the second contest.

(o) If a betting interest in the first-half of the twin quinella is scratched, those twin quinella wagers including the scratched betting interest shall be refunded.

(p) If a betting interest in the second-half of the twin quinella is scratched, an announcement concerning the scratch shall be made and a reasonable amount of time shall be provided for exchange of tickets that include the scratched betting interest. If tickets have not been exchanged before the close of betting for the second twin quinella contest, the ticket holder forfeits all rights to the twin quinella pool.

(q) If either of the twin quinella contests is canceled prior to the first twin quinella contest, or the first twin quinella contest is declared "no contest," the entire twin quinella pool shall be refunded on twin quinella wagers for that contest.

(r) If the second-half twin quinella contest is canceled or declared "no contest" after the conclusion of the first twin quinella contest, the net twin quinella pool shall be distributed as a single price pool to wagers selecting the winning combination in the first twin quinella contest and all valid exchange tickets. If there are no such wagers, the net twin quinella pool shall be distributed as described in subparagraph (b) of this racing regulation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8819, as amended by L. 1991, ch. 247, § 5; effective June 1, 1992.)

Kan. Admin. Regs. § 112-9-20 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8819(b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; revoked June 1, 1992.)

Kan. Admin. Regs. § 112-9-21 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8819(b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended March 19, 1990; revoked June 1, 1992.)

Kan. Admin. Regs. § 112-9-21a Pick three pools

(a) The pick three requires selection of the first-place finisher in each of three specified contests.

(b) The net pick three pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish:

(1) as a single price pool to those whose selection finishes first in each of the three contests; but if there are no such wagers, then

(2) as a single price pool to those who select the first-place finisher in any two of the three contests; but if there are no such wagers, then

(3) as a single price pool to those who select the first-place finisher in any one of the three contests; but if there are no such wagers, then

(4) the entire pool shall be refunded on pick three wagers for those contests.

(c) If there is a dead heat for first in any of the three contests involving contestants representing the same betting interest, the pick three pool shall be distributed as if no dead heat occurred.

(d) If there is a dead heat for first in any of the three contests involving contestants representing two or more betting interests, the pick three pool shall be distributed as a single price pool with each winning wager receiving an equal share of the profit.

(e) If a betting interest in any of the three pick three contests is scratched, the actual favorite, as determined by total amounts wagered in the win pool at the close of wagering on that contest, shall be substituted for the scratched betting interest for all purposes, including pool calculations. If the win pool total for two or more favorites is identical, the substitute selection shall be the betting interest with the lowest program number. The racing or wagering equipment or services licensee shall produce reports showing each of the wagering combinations with substituted betting interests which became winners as a result of the substitution, in addition to the normal winning combination.

(f) If all three pick three contests are canceled or declared "no contest," the entire pool shall be refunded on pick three wagers for those contests.

(g) If one or two of the pick three contests are canceled or declared "no contest," the pick three pool shall remain valid and shall be distributed in accordance with subsection (b) of this regulation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804 as amended by L. 1994, Ch. 146, Sec. 3; implementing K.S.A. 74-8819; effective June 1, 1992; amended July 10, 1995.)

Kan. Admin. Regs. § 112-9-22 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8819(b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended March 19, 1990; revoked June 1, 1992.)

Kan. Admin. Regs. § 112-9-22a Pick (N) pools

(a) The pick (N) requires selection of the first-place finisher in each of a designated number of contests. The number of contests so designated shall be more than three. The organization licensee shall obtain written approval from the commission for the schedule of pick (N) contests, the designation of one of the methods prescribed in subparagraph (b) of this regulation and the amount of any cap to be set on the carryover. The organization licensee shall not modify these pick (N) conditions without prior written approval from the commission.

(b) The pick (N) pool shall be apportioned under one of the following methods:

(1) The net pick (N) pool and carryover, if any, shall be distributed as a single price pool to those who select the first-place finisher in each of the pick (N) contests, based upon the official order of finish. If there are no such wagers, then a designated percentage of the net pool shall be distributed as a single price pool to those who select the first-place finisher in the greatest number of pick (N) contests, and the remainder shall be added to the carryover.

(2) The major share of the net pick (N) pool and the carryover, if any, shall be distributed to those who select the first-place finisher in each of the pick (N) contests, based upon the official order of finish. The minor share of the net pick (N) pool shall be distributed to those who select the first-place finisher in the second greatest number of pick (N) contests, based upon the official order of finish. If there are no wagers selecting the first-place finisher of all pick (N) contests, the minor share of the net pick (N) pool shall be distributed as a single price pool to those who select the first-place finisher in the greatest number of pick (N) contests, and the major share shall be added to the carryover.

(3) The net pick (N) pool shall be distributed as a single price pool to those who select the first-place finisher in the greatest number of pick (N) contests, based upon the official order of finish. If there are no winning wagers, the pool shall be refunded.

(4) The major share of the net pick (N) pool shall be distributed to those who select the first-place finisher in the greatest number of pick (N) contests, based upon the official order of finish. The minor share of the net pick (N) pool shall be distributed to those who select the first-place finisher in the second greatest number of pick (N) contests, based upon the official order of finish. If there are no wagers selecting the first-place finisher in a second greatest number of pick (N) contests, the minor share of the net pick (N) pool shall be combined with the major share for distribution as a single price pool to those who select the first-place finisher in the greatest number of pick (N) contests. If the greatest number of first-place finishers selected is one, the major and minor shares shall be combined for distribution as a single price pool. If there are no winning wagers, the pool shall be refunded.

(5) The major share of the net pick (N) pool shall be distributed to those who select the first-place finisher in each of the pick (N) contests, based upon the official order of finish. The minor share of the net pick (N) pool shall be distributed to those who select the first-place finisher in the second greatest number of pick (N) contests, based upon the official order of finish. If there are no wagers selecting the first-place finisher in all pick (N) contests, the entire net pick (N) pool shall be distributed as a single price pool to those who select the first-place finisher in the greatest number of pick (N) contests. If there are no wagers selecting the first-place finisher in a second greatest number of pick (N) contests, the minor share of the net pick (N) pool shall be combined with the major share for distribution as a single price pool to those who select the first-place finisher in each of the pick (N) contests. If there are no winning wagers, the pool shall be refunded.

(c) If there is a dead heat for first in any of the pick (N) contests involving contestants representing the same betting interest, the pick (N) pool shall be distributed as if no dead heat occurred.

(d) If there is a dead heat for first in any of the pick (N) contests involving contestants representing two or more betting interests, the pick (N) pool shall be distributed as a single price pool with each winning wager receiving an equal share of the profit.

(e) If a betting interest in any of the pick (N) contests is scratched, the actual favorite, as demonstrated by total amounts wagered in the win pool at the close of wagering on that contest, shall be substituted for the scratched betting interest for all purposes, including pool calculations. If the win pool total for two or more favorites is identical, the substitute selection shall be the betting interest with the lowest program number. The totalisator shall produce reports showing each of the wagering combinations with substituted betting interests which became winners as a result of the substitution, in addition to the normal winning combination.

(f) The pick (N) pool shall be canceled and all pick (N) wagers for the individual performance shall be refunded if:

(1) at least two contests included as part of a pick 3 are canceled or declared "no contest"; or

(2) at least three contests included as part of a pick 4, pick 5 or pick 6 are canceled or declared "no contest"; or

(3) at least four contests included as part of a pick 7, pick 8 or pick 9 are canceled or declared "no contest"; or

(4) at least five contests included as part of a pick 10 are canceled or declared "no contest."

(g) If at least one contest included as part of a pick (N) is canceled or declared "no contest," but not more than the number specified in subsection (f) of this regulation, the net pool shall be distributed as a single price pool to those whose selection finishes first in the greatest number of pick (N) contests for that performance. Such distribution shall include the portion ordinarily retained for the pick (N) carryover but not the carryover from previous performances.

(h) The pick (N) carryover may be capped at a designated level approved by the commission in accordance with these racing regulations.

(i) An organization licensee may request permission to distribute the pick (N) carryover on a specific performance. The request shall be submitted to the commission in writing and shall include justification for the distribution, an explanation of the benefit to be derived and the intended date and performance when the distribution will be made.

(j) If the pick (N) carryover is designated for distribution on a specified date and performance in which there are no wagers selecting the first-place finisher in each of the pick (N) contests, the entire pool shall be distributed as a single price pool to those whose selection finishes first in the greatest number of pick (N) contests. The pick (N) carryover shall be designated for distribution on a specified date and performance only under the following circumstances:

(1) upon written approval from the commission as provided in subsection (h) of this regulation; or

(2) upon written approval from the commission when there is a change in the carryover cap, a change from one type of pick (N) wagering to another or when the pick (N) is discontinued; or

(3) on the closing performance of the race meeting or split meeting.

(k) If for any reason the pick (N) carryover is carried over to the corresponding pick (N) pool of a later race meeting, the carryover shall be deposited in an interest-bearing account approved by the commission. The pick (N) carryover plus accrued interest then shall be added to the net pick (N) pool of the following race meeting on a date and performance designated by the commission.

(l) If it secures written commission approval, an organization licensee may contribute to the pick (N) carryover a sum of money up to the amount of any designated cap.

(m) Providing information to any person regarding covered combinations, amounts wagered on specific combinations or number of tickets sold is prohibited. This shall not prohibit any necessary communication for the processing of pool data between totalisator and parimutuel department employees.

(n) The organization licensee may suspend previously approved pick (N) wagering only with the prior written approval of the commission. Any carryover shall be held until the suspended pick (N) wagering is reinstated.

(o) An organization licensee may request approval of a pick (N) wager or separate wagering pool for specific performances.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804; implementing K.S.A. 1991 Supp. 74-8819; effective June 1, 1992.)

Kan. Admin. Regs. § 112-9-23 Payoff on minus pool

Each organization licensee shall pay to each holder of any ticket entitling the holder to participate in the distribution of a parimutuel pool the amount wagered by the holder plus a minimum of five percent. This requirement shall be unaffected by the existence of a parimutuel pool that does not contain sufficient money to distribute the five percent to each person holding the tickets.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A 1988 Supp. 74-8804 (p); implementing K.S.A. 1988 Supp. 74-8819 (b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-9-24 Errors in posted payoff

If an error is discovered in the payoff amounts posted on the public board, the error shall be corrected promptly and an announcement of the correction shall be made over the public address system. After the error is discovered, the correct amount shall be used in the payoff.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804 (p); implementing K.S.A. 1988 Supp. 74-8819 (b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-25 Payment for errors

(a) If an error occurs in the payment amounts for parimutuel tickets that are cashed or entitled to be cashed, and as a result of the error the parimutuel pool involved in the error is not correctly distributed among winning ticket holders, the following shall apply:

(1) If the error creates an overpayment to ticket holders, the organization licensee shall be responsible for the overpayment; and

(2) if the error creates an underpayment to ticket holders, the organization licensee shall add the amount of the underpayment to the next similar parimutuel pool, whether during the race meet at which the underpayment occurred or the first similar parimutuel pool of the following race meet.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804 (p); implementing K.S.A. 1988 Supp. 74-8819 (b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-26 Mutuel managers

(a) Each mutuel manager shall be responsible for the correctness of all posted payoff prices.

(b) If any emergency arises in connection with the operation of the parimutuel department of the organization licensee not covered by the parimutuel regulations and an immediate decision is necessary, the manager of the parimutuel department shall make the decision and shall deliver a detailed, written report to the commission within 24 hours of the incident.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804 (p); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-27 Cooperation of parimutuel department

Each parimutuel manager and each representative of any totalisator company or service providing parimutuel equipment or service at any race meeting shall cooperate fully in any investigation by the commission or in any proceeding before the commission relating to any parimutuel operations.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804 (c) and 74-8804 (p); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-28 Acceptance of wagers from outside enclosure

Each organization licensee shall accept no mail or telephone wagers, nor knowingly accept any wagers by or for a person who is prohibited from participating in parimutuel wagering.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804; implementing K.S.A. 1988 Supp. 74-8804, 74-8810, 74-8819; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-29 Probable odds on morning line

Unless otherwise approved by the commission, each organization licensee shall calculate and print in the official program the probable win odds for each wagering interest in each race.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804 (p); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-9-30 Closing of wagering in a race

(a) Prior to the official start of a race, the stewards or racing judges shall lock the parimutuel machines and shall close the wagering in the race, after which time no parimutuel tickets shall be sold for the race.

(b) Each organization licensee shall maintain in good order an electrical or other system approved by the commission for locking the parimutuel machines.

(d) With prior approval from the commission, wagers placed on greyhounds only may be canceled for a period of time not to exceed five seconds after wagering is terminated.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804 and implementing K.S.A. 74-8816 and 84-8818; effective, T-112-3-31-89, March 31, 1989; effective, June 26, 1989; amended, T-112-3-1-93, March 1, 1993; amended, T-112-6-15-93, June 15, 1993; amended Sept. 27, 1993.)

Kan. Admin. Regs. § 112-9-31 Wagering by minors prohibited

Each person under 18 years of age shall not buy or cash any parimutuel ticket. Each employee of the organization licensee shall not knowingly sell or cash for a person under 18 years of age any parimutuel ticket.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804 (p); implementing K.S.A. 1988 Supp. 74-8810; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-32 Wagering prohibited

Each mutuel department employee shall not wager on the result of a race while on duty at the race track facility of employment.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804 (p); implementing K.S.A. 1988 Supp. 74-8810; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-33 Racing selection services

Each organization licensee shall prohibit the sale, offering for sale, or gift of any racing selection sheet or other racing prediction upon the premises of the organization licensee, except for any service that is authorized by the organization licensee and is licensed by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804 (p) and 74-8816 (a)(2); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-34 Wagering by jockey

Each jockey shall not make any wager, or have any wager made in his behalf, on any card in which he participates.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804 (c) and 74-8804 (p); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-9-35 Wagering interest

A wagering interest may be any one entry in a race, or may be two or more entries coupled as a single wagering interest, including a field entry. A declaration or withdrawal of one entry from a wagering interest which consists of more than one entry shall have no effect on any wagers made on the wagering interest.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804 (p) and 74-8819 (b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-36 Evidence of pool distribution

In the event of loss by the organization licensee, its agent or employees, of any evidence of proper distribution of parimutuel pools, including, but not limited to, parimutuel tickets that have been cashed, outs ledgers, parimutuel machine recording registers, or cashier outslips, the organization licensee shall upon discovery of the loss immediately notify the commission and file with the commission within 72 hours of the discovery of the loss, a report and supporting affidavits. The report of loss may be accepted or the matter may be heard by the commission in its discretion.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804 (c) and 74-8804 (p); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-37 Dead heats

(a) In each dead heat for first place, the win pool pay-off price shall be figured as in a place pool.

(b) In each dead heat for second in the place pool, each winner of the race shall receive one-half share of the profits in that pool, and each of the two entries that run a dead heat for second shall receive one-half of the remaining half of the profits.

(c) In each dead heat for third or show in the show pool, each of the two entries that place first and second each shall receive a normal one-third of the profits in that pool; and of the two entries that run a dead heat for third, each shall receive one-half of the remaining third of the profits.

(d) If two or more entries racing for one interest or field participate in dead heats, each dead heat entry shall be entitled to the proportionate share of the profits in the pool in which the dead heat occurs and the other pools affected.

(e) If two or more entries racing for one interest or field run a dead heat or run a multiple dead heat in one race, each dead heat entry shall be entitled to the proportionate award of the profits in whatever pool or pools are affected by the dead heat or dead heats. The sum of total profits in each pool for the entry or field shall then be used as a dividend to calculate the payoff for the dead heat entry in that pool.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804 (p); implementing K.S.A. 1988 Supp. 74-8819 (b); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-9-38 Purses for dead heats

Each purse, prize or award for a race in which a dead heat has occurred shall be divided equitably by determination of the stewards.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804(p); effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-9-39 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 74-8819(b); effective, T-112-8-22-89, Aug. 22, 1989; effective Oct. 2, 1989; revoked June 1, 1992.)

Kan. Admin. Regs. § 112-9-39a Superfecta pools

(a) The superfecta requires selection of the first four finishers, in their exact order, for a single contest.

(b) The net superfecta pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish and disregarding all coupled or field entries other than the first contestant of a coupled or field entry to finish:

(1) as a single price pool to those whose combination finishes in correct sequence as the first four betting interests; but if there are no such wagers, then

(2) as a single price pool to those whose combination includes, in correct sequence, the first three betting interests; but if there are no such wagers, then

(3) as a single price pool to those whose combination includes, in correct sequence, the first two betting interests; but if there are no such wagers, then

(4) as a single price pool to those whose combination correctly selects the first-place betting interest only; but if there are no such wagers, then

(5) the entire pool shall be refunded on superfecta wagers for that contest.

(c) If fewer than four betting interests finish and the contest is declared official, payoffs will be made based upon the order of finish of those betting interests completing the contest. The balance of any selection beyond the number of betting interests completing the contest shall be ignored.

(d) If there is a dead heat for first involving contestants representing four or more betting interests, all of the wagering combinations selecting four betting interests which correspond with any of the betting interests involved in the dead heat shall share in a profit split.

(e) If there is a dead heat for first involving contestants representing three betting interests, all of the wagering combinations selecting the three dead-heated betting interests, regardless of order, along with the fourth-place betting interest shall share in a profit split.

(f) If there is a dead heat for first involving contestants representing two betting interests, both of the wagering combinations selecting the two dead-heated betting interests, regardless of order, along with the third-place and fourth-place betting interests shall share in a profit split.

(g) If there is a dead heat for second involving contestants representing three or more betting interests, all of the wagering combinations correctly selecting the winner combined with any of the three betting interests involved in the dead heat for second shall share in a profit split.

(h) If there is a dead heat for second involving contestants representing two betting interests, all of the wagering combinations correctly selecting the winner, the two dead-heated betting interests, regardless of order, and the fourth-place betting interest shall share in a profit split.

(i) If there is a dead heat for third, all wagering combinations correctly selecting the first two finishers in correct sequence shall share in a profit split along with any two of the betting interests involved in the dead heat for third.

(j) If there is a dead heat for fourth, all wagering combinations correctly selecting the first three finishers in correct sequence shall share in a profit split along with any of the betting interests involved in the dead heat for fourth.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3; implementing K.S.A. 1991 Supp. 74-8819, as amended by L. 1992, Ch. 27, Sec. 6; effective June 1, 1992; amended, T-112-11-9-92, Nov. 9, 1992; amended, T-112-3-1-93, March 1, 1993; amended May 3, 1993.)

Kan. Admin. Regs. § 112-9-40 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 74-8819(b); effective, T-112-8-22-89, Aug. 22, 1989; effective Oct. 2, 1989; revoked June 1, 1992.)

Kan. Admin. Regs. § 112-9-40a Tri-superfecta pools

(a) The tri-superfecta requires selection of the first three finishers, in their exact order, in the first of two designated contests and the first four finishers, in exact order, in the second of the two designated contests. Each winning ticket for the first tri-superfecta contest must be exchanged for a free ticket on the second tri-superfecta contest in order to remain eligible for the second-half tri-superfecta pool. Such tickets may be exchanged only at attended ticket windows prior to the second tri-superfecta contest. Winning first-half tri-superfecta tickets shall receive both an exchange and a monetary payoff. Both of the designated tri-superfecta contests shall be included in only one tri-superfecta pool.

(b) After wagering closes for the first-half of the tri-superfecta and the takeout has been deducted from the pool, the net pool then shall be divided into two separate pools: the first-half tri-superfecta pool and the second-half tri-superfecta pool.

(c) In the first tri-superfecta contest only, winning tickets shall be determined using the following precedence, based upon the official order of finish for the first tri-superfecta contest and disregarding all coupled or field entries other than the first contestant of a coupled or field entry to finish:

(1) as a single price pool to those whose combination finishes in correct sequence as the first three betting interests; but if there are no such wagers, then

(2) as a single price pool to those whose combination includes, in correct sequence, the first two betting interests; but if there are no such wagers, then

(3) as a single price pool to those whose combination correctly selects the first-place betting interest only; but if there are no such wagers, then

(4) the entire tri-superfecta pool shall be refunded on tri-superfecta wagers for that contest, and the second-half shall be canceled.

(d) If no first-half tri-superfecta ticket selects the first three finishers of that contest in exact order, winning ticket holders shall not receive any exchange tickets for the second-half tri-superfecta pool. In such case, the second-half tri-superfecta pool shall be retained and added to any existing tri-superfecta carryover pool.

(e) Winning tickets from the first-half of the tri-superfecta shall be exchanged for tickets selecting the first four finishers of the second-half of the tri-superfecta. The second-half tri-superfecta pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish for the second tri-superfecta contest and disregarding all coupled or field entries other than the first contestant of a coupled or field entry to finish:

(1) as a single price pool, including any existing carryover monies, to those whose combination finishes in correct sequence as the first four betting interests; but if there are no such tickets, then

(2) the entire second-half tri-superfecta pool for that contest shall be added to any existing carryover monies and retained for the corresponding second-half tri-superfecta pool of the next performance.

(f) If a winning first-half tri-superfecta ticket is not presented for cashing and exchange prior to the second-half tri-superfecta contest, the ticket holder may still collect the monetary value associated with the first-half tri-superfecta pool, but forfeits all rights to any distribution of the second-half tri-superfecta pool.

(g) If a betting interest in the first-half of the tri-superfecta is scratched, those tri-superfecta tickets including the scratched betting interest shall be refunded.

(h) If a betting interest in the second-half of the tri-superfecta is scratched, an announcement concerning the scratch shall be made and a reasonable amount of time shall be provided for exchange of tickets that include the scratched betting interest. If tickets have not been exchanged prior to the close of betting for the second tri-superfecta contest, the ticket holder forfeits all rights to the second-half tri-superfecta pool.

(i) If, due to a late scratch, the number of betting interests in the second-half of the tri-superfecta is reduced to a fewer than the minimum, all exchange tickets and outstanding first-half winning tickets shall be entitled to the second-half tri-superfecta pool for that contest as a single price pool, but not the tri-superfecta carryover.

(j) If there is a dead heat or multiple dead heats in either the first- or second-half of the tri-superfecta, all tri-superfecta tickets selecting the correct order of finish, counting a betting interest involved in a dead heat as finishing in any dead-heated position, shall be a winner. In the case of a dead heat occurring in the first-half of the tri-superfecta, the payoff shall be calculated as a profit split. In the case of a dead heat occurring in the second-half of the tri-superfecta, the payoff shall be calculated as a single price pool.

(k) If either of the tri-superfecta contests is canceled prior to the first tri-superfecta contest, or the first tri-superfecta contest is declared "no contest," the entire tri-superfecta pool shall be refunded on tri-superfecta wagers for that contest, and the second-half shall be canceled.

(l) If the second-half tri-superfecta contest is canceled or declared "no contest," all exchange tickets and outstanding first-half winning tri-superfecta tickets shall be entitled to the net tri-superfecta pool for that contest as a single price pool, but not the tri-superfecta carryover. If there are no such tickets, the net tri-superfecta pool shall be distributed as described in subparagraph (c) of this regulation.

(m) The tri-superfecta carryover may be capped at a designated level as provided in these racing regulations.

(n) An organization licensee may request permission to distribute the tri-superfecta carryover on a specific performance. The request shall be submitted to the commission in writing and shall include justification for the distribution, an explanation of the benefit to be derived and the intended date and performance when the distribution will be made.

(o) If the tri-superfecta carryover is designated for distribution on a specified date and performance, the following precedence shall be followed in determining winning tickets for the second-half of the tri-superfecta after completion of the first-half of the tri-superfecta:

(1) as a single price pool to those whose combination finishes in correct sequence as the first four betting interests; but if there are no such wagers, then

(2) as a single price pool to those whose combination includes, in correct sequence, the first three betting interests; but if there are no such wagers, then

(3) as a single price pool to those whose combination includes, in correct sequence, the first two betting interests; but if there are no such wagers, then

(4) as a single price pool to those whose combination includes, in correct sequence, the first-place betting interest only; but if there are no such wagers, then

(5) as a single price pool to holders of valid exchange tickets; but if there are no valid exchange tickets, then

(6) as a single price pool to holders of outstanding first-half winning tickets.

(p) Notwithstanding the provisions of this regulation, during a performance designated to distribute the tri-superfecta carryover, exchange tickets shall be issued for those combinations selecting the greatest number of betting interests in their correct order of finish for the first-half of the tri-superfecta. If there are no wagers correctly selecting the first-, second-, and third-place finishers, in their exact order, then exchange tickets shall be issued for combinations correctly selecting the first- and second-place betting interests. If there are no wagers correctly selecting the first- and second-place finishers, in their exact order, then exchange tickets shall be issued for combinations correctly selecting the first-place betting interest only. If there are no wagers selecting the first-place betting interest only in the first-half of the tri-superfecta, all first-half tickets shall become winners and shall receive 100 percent of that day's net tri-superfecta pool and any existing tri-superfecta carryover as a single price pool.

(q) The tri-superfecta carryover shall be designated for distribution on a specified date and performance only under the following circumstances:

(1) upon written approval from the commission as provided in subparagraph (n) of this regulation; or

(2) upon written approval from the commission when there is a change in the carryover cap or when the tri-superfecta is discontinued; or

(3) on the closing performance of the meeting or split meeting.

(r) If, for any reason, the tri-superfecta carryover must be carried over to the corresponding tri-superfecta pool of a subsequent meeting, the carryover shall be deposited in an interest-bearing account approved by the commission. The tri-superfecta carryover plus accrued interest shall then be added to the second-half tri-superfecta pool of the following meeting on a date and performance designated by the commission.

(s) Providing information to any person regarding covered combinations, amounts wagered on specific combinations or number of tickets sold is prohibited. This shall not prohibit any necessary communication for the processing of pool data between totalisator and parimutuel department employees.

(t) At the beginning of each meeting each organization licensee shall obtain written approval from the commission concerning the scheduling of tri-superfecta contests, the percentages of the net pool added to the first-half pool and the second-half pool and the designated amount of any cap to be set on the carryover. Any modification of the approved tri-superfecta procedures requires prior approval from the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3; implementing K.S.A. 1991 Supp. 74-8819, as amended by L. 1992, Ch. 27, Sec. 6; effective June 1, 1992; amended, T-112-11-9-92, Nov. 9, 1992; amended, T-112-3-1-93, March 1, 1993; amended May 3, 1993.)

Kan. Admin. Regs. § 112-9-41 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8819(b); effective, T-112-8-22-89, Aug. 22, 1989; effective Oct. 2, 1989; revoked, T-112-9-26-91, Sept. 26, 1991; revoked, T-112-1-21-92, Jan. 21, 1992; revoked June 1, 1992.)

Kan. Admin. Regs. § 112-9-41a Twin trifecta

(a) The twin trifecta requires selection of the first three finishers, in their exact order, in each of two designated contests. Each winning ticket for the first twin trifecta contest must be exchanged for a free ticket for the second twin trifecta contest in order to remain eligible for the second-half twin trifecta pool. These tickets may be exchanged only at attended ticket windows prior to the second twin trifecta contest. Winning first-half twin trifecta wagers will receive both an exchange and a monetary payoff. Both of the designated twin trifecta contests shall be included in only one twin trifecta pool.

(b) After wagering closes for the first-half of the twin trifecta and commissions have been deducted from the pool, the net pool then shall be divided into separate pools: the first-half twin trifecta pool and the second-half twin trifecta pool.

(c) In the first twin trifecta contest only, winning wagers shall be determined using the following precedence, based upon the official order of finish for the first twin trifecta contest and disregarding all coupled or field entries other than the first contestant of a coupled or field entry to finish:

(1) as a single price pool to those whose combination finishes in the same sequence as the first three betting interests; but if there are no such wagers, then

(2) as a single price pool to those whose combination includes, in correct sequence, the first two betting interests; but if there are no such wagers, then

(3) as a single price pool to those whose combination correctly selects the first-place betting interest only; but if there are no such wagers, then

(4) the entire twin trifecta pool shall be refunded on twin trifecta wagers for that contest and the second-half shall be canceled.

(d) If no first-half twin trifecta ticket selects the first three finishers of that contest in exact order, winning ticket holders shall not receive any exchange tickets for the second-half twin trifecta pool. In such case, the second-half twin trifecta pool shall be retained and added to any existing twin trifecta carryover pool.

(e) Winning tickets from the first-half of the twin trifecta shall be exchanged for tickets selecting the first three finishers of the second-half of the twin trifecta. The second-half twin trifecta pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish for the second twin trifecta contest and disregarding all coupled or field entries other than the first contestant of a coupled or field entry to finish:

(1) as a single price pool, including any existing carryover monies, to those whose combination finishes in the same sequence as the first three betting interests; but if there are no such tickets, then

(2) the entire second-half twin trifecta pool for that contest shall be added to any existing carryover monies and retained for the corresponding second-half twin trifecta pool of the next consecutive performance.

(f) If a winning first-half twin trifecta ticket is not presented for cashing and exchange prior to the second-half twin trifecta contest, the ticket holder may collect the monetary value associated with the first-half twin trifecta pool, but forfeits all rights to any distribution of the second-half twin trifecta pool.

(g) If a betting interest in the first-half of the twin trifecta is scratched, those twin trifecta wagers, including the scratched betting interest, shall be refunded.

(h) If a betting interest in the second-half of the twin trifecta is scratched, an announcement concerning the scratch shall be made and a reasonable amount of time shall be provided for the exchange of tickets that include the scratched betting interest. If tickets have not been exchanged prior to the close of betting for the second twin trifecta contest, the ticket holder forfeits all rights to the second-half twin trifecta pool.

(i) If, due to a late scratch, the number of betting interests in the second-half of the twin trifecta is reduced to fewer than the minimum, all exchange tickets and outstanding first-half winning tickets shall be entitled to the second-half twin trifecta pool for that contest as a single price pool, but not the twin-trifecta carryover.

(j) If there is a dead heat or multiple dead heats in either the first- or second-half of the twin trifecta, all twin trifecta wagers selecting the correct order of finish, counting a betting interest involved in a dead heat as finishing in any dead-heated position, shall be a winner. In the case of a dead heat occurring in the first-half of the twin trifecta, the payoff shall be calculated as a profit split. In the case of a dead heat occurring in the second-half of the twin trifecta, the payoff shall be calculated as a single price pool.

(k) If either of the twin trifecta contests is canceled prior to the first twin trifecta contest or if the first twin trifecta contest is declared a "no contest," the entire twin trifecta pool shall be refunded on twin trifecta wagers for that contest, and the second-half of the twin trifecta shall be canceled.

(l) If the second-half twin trifecta contest is canceled or declared "no contest," all exchange tickets and outstanding first-half winning twin trifecta tickets shall be entitled to the net twin trifecta pool for that contest as a single price pool, but not to the twin trifecta carryover. If there are no such tickets, the net twin trifecta pool shall be distributed as described in subparagraph (c) of this regulation.

(m) The twin trifecta carryover may be capped at a designated level as provided in these racing regulations.

(n) An organization licensee may request permission to distribute the twin trifecta jackpot on a specific performance. The request shall be submitted to the commission in writing and shall include justification for the distribution, an explanation of the benefit to be derived and the intended date and performance when the distribution will be made.

(o) If the twin trifecta carryover is designated for distribution on a specified date and performance, the following precedence shall be followed in determining winning tickets for the second-half of the twin trifecta after completion of the first-half of the twin trifecta:

(1) as a single price pool to those whose combination finishes in the same sequence as the first three betting interests; but if there are no such wagers, then

(2) as a single price pool to those whose combination includes, in correct sequence, the first two betting interests; but if there are no such wagers, then

(3) as a single price pool to those whose combination correctly selects the first-place betting interest only; but if there are no such wagers, then

(4) as a single price pool to holders of valid exchange tickets, but if there are no holders of valid exchange tickets, then

(5) as a single price pool to holders of outstanding first-half winning tickets.

(p) Notwithstanding the provisions of this regulation, during a performance designated to distribute the twin trifecta carryover, exchange tickets shall be issued for those combinations selecting the greatest number of betting interests in their correct order of finish for the first-half of the twin trifecta. If there are no wagers correctly selecting the first-, second-, and third-place finishers, in their exact order, then exchange tickets shall be issued for combinations correctly selecting the first- and second-place betting interests. If there are no wagers correctly selecting the first- and second-place finishers, in their exact order, then exchange tickets shall be issued for combinations correctly selecting the first-place betting interest only. If there are no wagers selecting the first-place betting interest only in the first-half of the twin trifecta, all first-half tickets shall become winners and shall receive 100 percent of that day's net twin trifecta pool and any existing twin trifecta carryover as a single price pool.

(q) The twin trifecta carryover shall be designated for distribution on a specified date and performance only under the following circumstances:

(1) upon written approval from the commission as provided in subparagraph (n) of this regulation; or

(2) upon written approval from the commission when there is a change in the carryover cap or when the twin trifecta is discontinued; or

(3) on the closing performance of the meeting or split meeting.

(r) If, for any reason, the twin trifecta carryover must be carried over to the corresponding twin trifecta pool of a subsequent meeting, the jackpot shall be deposited in an interest-bearing account approved by the commission. The twin trifecta carryover and accrued interest then shall be added to the second-half twin trifecta pool of the following meeting on a date and performance designated by the commission.

(t) The organization licensee shall obtain written approval from the commission concerning the scheduling of twin trifecta contests, the percentages of the net pool added to the first-half pool and second-half pool and the designated amount of any cap to be set on the carryover. Any modification of the approved twin trifecta procedures requires prior approval from the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3; implementing K.S.A. 1991 Supp. 74-8819, as amended by L. 1992, Ch. 27, Sec. 6; effective, T-112-9-26-91, Sept. 26, 1991; effective June 1, 1992; amended, T-112-11-9-92, Nov. 9, 1992; amended, T-112-3-1-93, March 1, 1993; amended May 3, 1993.)

Kan. Admin. Regs. § 112-9-42 Twin superfecta pools

(a) The twin superfecta requires selection of the first four finishers, in their exact order, in each of two designated contests. Each winning ticket for the first twin superfecta contest must be exchanged for a free ticket on the second twin superfecta contest in order to remain eligible for the second-half twin superfecta pool. Such tickets may be exchanged only at attended ticket windows prior to the second twin superfecta contest. Winning first-half twin superfecta tickets shall receive both an exchange and a monetary payoff. Both of the designated twin superfecta contests shall be included in only one twin superfecta pool.

(b) After wagering closes for the first-half of the twin superfecta and the takeout has been deducted from the pool, the net pool shall then be divided into two separate pools: the first-half twin superfecta pool and the second-half twin superfecta pool.

(c) In the first twin superfecta contest only, winning wagers shall be determined using the following precedence, based upon the official order of finish for the first twin superfecta contest and disregarding all coupled or field entries other than the first contestant of a coupled or field entry to finish:

(1) as a single price pool to those whose combination finishes in correct sequence as the first four betting interests; but if there are no such wagers, then

(2) as a single price pool to those whose combination includes, in correct sequence, the first three betting interests; but if there are no such wagers, then

(3) as a single price pool to those whose combination includes, in correct sequence, the first two betting interests; but if there are no such wagers, then

(4) as a single price pool to those whose combination correctly selects the first-place betting interest only; but if there are no such wagers, then

(5) the entire twin superfecta pool shall be refunded on twin superfecta wagers for that contest, and the second-half shall be canceled.

(d) If no first-half twin superfecta ticket selects the first four finishers of that contest in exact order, winning ticket holders shall not receive any exchange tickets for the second-half twin superfecta pool. In such case, the second-half twin superfecta pool shall be retained and added to any existing twin superfecta carryover pool.

(e) Winning tickets from the first-half of the twin superfecta shall be exchanged for tickets selecting the first four finishers of the second-half of the twin superfecta. The second-half twin superfecta pool shall be distributed to winning wagers in the following precedence, based upon the official order of finish for the second twin trifecta contest and disregarding all coupled or field entries other than the first contestant of a coupled or field entry to finish:

(2) the entire second-half twin superfecta pool for that contest shall be added to any existing carryover monies and retained for the corresponding second-half twin superfecta pool of the next performance.

(f) If a winning first-half twin superfecta ticket is not presented for cashing and exchange prior to the second-half twin superfecta contest, the ticket holder may still collect the monetary value associated with the first-half twin superfecta pool but forfeits all rights to any distribution of the second-half twin superfecta pool.

(g) If a betting interest in the first-half of the twin superfecta is scratched, those twin superfecta tickets including the scratched betting interest shall be refunded.

(h) If a betting interest in the second-half of the twin superfecta is scratched, an announcement concerning the scratch shall be made and a reasonable amount of time shall be provided for exchange of tickets that include the scratched betting interest. If tickets have not been exchanged prior to the close of betting for the second twin superfecta contest, the ticket holder forfeits all rights to the second-half twin superfecta pool.

(i) If, due to a late scratch, the number of betting interests in the second-half of the twin superfecta is reduced to fewer than the minimum, all exchange tickets and outstanding first-half winning tickets shall be entitled to the second-half twin superfecta pool for that contest as a single price pool, but not the twin superfecta carryover.

(j) If there is a dead heat or multiple dead heats in either the first- or second-half of the twin superfecta, all twin superfecta tickets selecting the correct order of finish, counting a betting interest involved in a dead heat as finishing in any dead-heated position, shall be a winner. In the case of a dead heat occurring in the first-half of the twin superfecta, the payoff shall be calculated as a profit split. In the case of a dead heat occurring in the second-half of the twin superfecta, the payoff shall be calculated as a single price pool.

(k) If either of the twin superfecta contests is canceled prior to the first twin superfecta contest, or the first twin superfecta contest is declared "no contest," the entire twin superfecta pool shall be refunded on twin superfecta wagers for that contest, and the second-half shall be canceled.

(l) If the second-half twin superfecta contest is canceled or declared "no contest," all exchange tickets and outstanding first-half winning twin superfecta tickets shall be entitled to the net twin superfecta pool for that contest as a single price pool, but not the twin superfecta carryover. If there are no such tickets, the net twin superfecta pool shall be distributed as described in subparagraph (c) of this regulation.

(m) The twin superfecta carryover may be capped at a designated level as provided in these racing regulations.

(n) An organization licensee may request permission to distribute the twin superfecta carryover on a specific performance. The request shall be submitted to the commission in writing and shall include justification for the distribution, including how the distribution will serve the best interests of the wagering public, an explanation of the benefit to be derived and the intended date and performance when the distribution will be made. The benefit to both the public and the state shall be weighed in determining whether to approve such a request.

(o) If the twin superfecta carryover is designated for distribution on a specified date and performance, the following precedence shall be followed in determining winning tickets for the second-half of the twin superfecta after completion of the first-half of the twin superfecta:

(1) as a single price pool to those whose combination finishes in correct sequence as the first four betting interests; but if there are no such wagers, then

(2) as a single price pool to those whose combination includes, in correct sequence, the first three betting interests; but if there are no such wagers, then

(3) as a single price pool to those whose combination includes, in correct sequence, the first two betting interests; but if there are no such wagers, then

(4) as a single price pool to those whose combination correctly selects the first-place betting interest only; but if there are no such wagers, then

(5) as a single price pool to holders of valid exchange tickets; but if there are no valid exchange tickets, then

(6) as a single price pool to holders of outstanding first-half winning tickets.

(p) Notwithstanding the provisions of this regulation, during a performance designated to distribute the twin superfecta carryover, exchange tickets shall be issued for those combinations selecting the greatest number of betting interests in their correct order of finish for the first-half of the twin superfecta. If there are no wagers correctly selecting the first-, second-, third-, and fourth-place finishers, in their exact order, then exchange tickets shall be issued for combinations correctly selecting the first-, second-, and third-place betting interests. If there are no wagers correctly selecting the first-, second-, and third-place finishers, in their exact order, then exchange tickets shall be issued for combinations correctly selecting the first- and second-place betting interests. If there are no wagers correctly selecting the first- and second-place finishers, in their exact order, then exchange tickets shall be issued for combinations correctly selecting the first-place betting interest only. If there are no wagers selecting the first-place betting interest only in the first-half of the twin superfecta, all first-half tickets shall become winners and shall receive 100 percent of that day's net twin superfecta pool and any existing twin superfecta carryover as a single price pool.

(q) The twin superfecta carryover shall be designated for distribution on a specified date and performance only under the following circumstances:

(1) upon written approval from the commission as provided in subparagraph (n) of this regulation; or

(2) upon written approval from the commission when there is a change in the carryover cap or when the twin superfecta is discontinued; or

(3) on the closing performance of the meeting or split meeting.

(r) If, for any reason, the twin superfecta carryover must be carried over to the corresponding twin superfecta pool of a subsequent meeting, the carryover shall be deposited in an interest-bearing account approved by the commission. The twin superfecta carryover plus accrued interest then shall be added to the second-half twin superfecta pool of the following meeting on a date and performance designated by the commission.

(t) At the beginning of each race meeting each organization licensee shall obtain written approval from the commission concerning the scheduling of twin superfecta contests, the percentages of the net pool added to the first-half pool and second-half pool and the designated amount of any cap to be set on the carryover. Any modification of the approved twin superfecta procedures requires prior approval from the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3; implementing K.S.A. 1991 Supp. 74-8819, as amended by L. 1992, Ch. 27, Sec. 6; effective June 1, 1992; amended, T-112-11-9-92, Nov. 9, 1992; amended, T-112-3-1-93, March 1, 1993; amended May 3, 1993.)

Kan. Admin. Regs. § 112-9-43 Capping carryover pools

The Pick (N), the twin trifecta, the tri-superfecta, and the twin superfecta carryover pools may be capped at a designated level or on a designated performance as approved by the commission. When the commission authorizes the capping of a carryover it shall select one of the following methods to govern subsequent contributions to the carryover pool:

(a) When the amount in the wager's carryover pool equals or exceeds the designated cap at the close of any performance, the carryover pool shall be frozen, and 100 percent of the designated contributions to the carryover pool shall be paid out to the wager's regular pool until the carryover pool is paid out.

(b) Within three working days of the date when the designated cap is reached, each organization licensee shall notify the commission or its designee of the occurrence and specify the date it intends to force a payout of the carryover pool, provided the capped carryover pool is not paid out prior to the specified date. Each forced payout shall be made within ten race days after the date when the designated cap is reached. After the designated cap is reached the carryover pool shall continue to receive its regular contribution from all wagers.

(c) When the designated cap on the carryover pool is reached the organization licensee shall freeze the carryover pool at the designated cap amount and create a new seed pool. The seed pool shall receive and hold all contributions that would normally flow to the carryover pool until the capped carryover pool is paid out. The carryover pool shall be paid out under the regular procedures, or, if the organization licensee so elects, under the forced payout procedures stated in subparagraph (b) of this regulation. Once the capped carryover pool is paid out, the seed pool shall become the carryover pool. If the seed pool's balance ever equals or exceeds the designated cap the seed pool shall be frozen the same as the carryover pool, and another seed pool shall be created.

(d) When a carryover pool is capped on a designated performance and the designated performance date is reached, the organization licensee shall pay out 100 percent of the contributions to the carryover pool using one of the following methods, as directed by the commission:

(1) to holders of tickets in accordance with the procedures stated in K.A.R. 112-9-41a(o) for twin trifecta wagers, K.A.R. 112-9-40a(o) for tri-superfecta wagers and K.A.R. 112-9-42(o) for twin superfecta wagers; or,

(2) to holders of second-half winning tickets using the following precedence:

(A) as a single price pool to those whose combination finishes in the same sequence as the first three betting interests for twin trifecta wagers or in the same sequence as the first four betting interests for twin superfecta and tri-superfecta wagers; then,

(B) as a single price pool to holders of valid exchange tickets; then,

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3; implementing K.S.A. 1991 Supp. 74-8819, as amended by L. 1992; Ch. 27, § 6; effective June 1, 1992; amended, T-112-11-9-92, Nov. 9, 1992; amended, T-112-3-1-93, March 1, 1993; amended May 3, 1993.)

Kan. Admin. Regs. § 112-9-44 Place pick (N) pools

(a) The place pick (N) shall require selection of the first-place or second-place finisher in each of a designated number of contests. Each licensee shall secure written approval from the commission concerning the scheduling of place pick (N) contests, the designation of one of the methods stated in subsection (b) of this regulation, the distinctive name identifying the pool, and the amount of any cap to be set on the carryover pool. Each change to the approved place pick (N) format shall be approved by the commission before that change is implemented.

(b) Each place pick (N) pool shall be apportioned using one of the following methods:

(1) For a place pick (N) with carryover pool, each net place pick (N) pool and carryover pool, if any, shall be distributed as a single-price pool to those who select the first-place or second-place finisher in each of the place pick (N) contests, based upon the official order of finish. If there are no such wagers, then a designated percentage of the net pool shall be distributed as a single-price pool to those who select the first-place or second-place finisher in the greatest number of place pick (N) contests, and the remainder shall be added to the carryover pool.

(2) For a place pick (N) with a minor pool and a carryover pool, the major share of the net place pick (N) pool and the carryover pool, if any, shall be distributed to those who select the first-place or second-place finisher in each of the place pick (N) contests, based upon the official order of finish. The minor share of the net place pick (N) pool shall be distributed to those who select the first-place or second-place finisher in the second greatest number of place pick (N) contests, based upon the official order of finish. If there are no wagers selecting the first-place or second-place finisher of all place pick (N) contests, the minor share of the net place pick (N) pool shall be distributed as a single-price pool to those who select the first-place or second-place finisher in the greatest number of place pick (N) contests, and the major share shall be added to the carryover pool.

(3) For the place pick (N) with no minor pool and no carryover pool, each net place pick (N) pool shall be distributed as a single-price pool to those who select the first-place or second-place finisher in the greatest number of place pick (N) contests, based upon the official order of finish. If there are no winning wagers, the pool shall be refunded.

(4) For a place pick (N) with a minor pool and no carryover pool, the major share of the net place pick (N) pool shall be distributed to those who select the first-place or second-place finisher in the greatest number of place pick (N) contests, based upon the official order of finish. The minor share of the net place pick (N) pool shall be distributed to those who select the first-place or second-place finisher in the second greatest number of place pick (N) contests, based upon the official order of finish. If there are no wagers selecting the first-place or second-place finisher in a second greatest number of place pick (N) contests, the minor share of the net place pick (N) pool shall be combined with the major share for distribution as a single-price pool to those who select the first-place or second-place finisher in the greatest number of place pick (N) contests. If the greatest number of first-place or second-place finishers selected is one, the major and minor shares shall be combined for distribution as a single-price pool. If there are no winning wagers, the pool shall be refunded.

(5) For a place pick (N) with a minor pool and no carryover pool, the major share of the net place pick (N) pool shall be distributed to those who select the first-place or second-place finisher in each of the place pick (N) contests, based upon the official order of finish. The minor share of the net place pick (N) pool shall be distributed to those who select the first-place or second-place finisher in the second greatest number of place pick (N) contests, based upon the official order of finish. If there are no wagers selecting the first-place or second-place finisher in all place pick (N) contests, the entire net place pick (N) pool shall be distributed as a single-price pool to those who select the first-place or second-place finisher in the greatest number of place pick (N) contests. If there are no wagers selecting the first-place or second-place finisher in a second greatest number of place pick (N) contests, the minor share of the net place pick (N) pool shall be combined with the major share for distribution as a single-price pool to those who select the first-place or second-place finisher in each of the place pick (N) contests. If there are no winning wagers, the pool shall be refunded.

(c)(1) If there is a dead heat for first place in any of the place pick (N) contests involving contestants representing the same betting interest, the place pick (N) pool shall be distributed as if no dead heat had occurred.

(2) If there is a dead heat for first place in any of the place pick (N) contests involving contestants representing two or more betting interests, the place pick (N) pool shall be distributed as a single-price pool with a winning wager, including each betting interest participating in the dead heat.

(d)(1) If there is a dead heat for second place in any of the place pick (N) contests involving contestants representing the same betting interest, the place pick (N) pool shall be distributed as if no dead heat had occurred.

(2) If there is a dead heat for second place in any of the place pick (N) contests involving contestants representing two or more betting interests, the place pick (N) pool shall be distributed as a single-price pool with a winning wager, including the betting interest that finished first or any betting interest involved in the dead heat for second.

(e) If a betting interest in any of the place pick (N) contests is scratched, the actual favorite, as determined by total amounts wagered in the win pool at the host track for the contest at the close of wagering on the contest, shall be substituted for the scratched betting interest for all purposes, including pool calculations. If the win pool total for two or more favorites is identical, the substitute selection shall be the betting interest with the lowest program number. The totalisator shall produce reports showing each of the wagering combinations with substituted betting interests that become winners as a result of the substitution, in addition to the normal winning combination.

(f) The place pick (N) pool shall be canceled and all place pick (N) wagers for the individual performance shall be refunded if any of the following occurs:

(1) At least two contests included as part of a place pick 3 are canceled or declared "no contest."

(2) At least three contests included as part of a place pick 4, place pick 5, or place pick 6 are canceled or declared "no contest."

(3) At least four contests included as part of a place pick 7, place pick 8, or place pick 9 are canceled or declared "no contest."

(4) At least five contests included as part of a place pick 10 are canceled or declared "no contest."

(g) If at least one contest included as part of a place pick (N) is canceled or declared "no contest," but not more than the number specified in subsection (f) of this regulation, the net pool shall be distributed as a single-price pool to those whose selections finish first or second in the greatest number of place pick (N) contests for the performance. Each distribution shall include the portion ordinarily retained for the place pick (N) carryover pool but not the carryover pool from previous performances.

(h) The place pick (N) carryover may be capped at a designated level approved by the commission so that if, at the close of any performance, the amount in the place pick (N) carryover pool equals or exceeds the designated cap, the place pick (N) carryover shall be frozen until it is won or distributed in accordance with this regulation. After the place pick (N) carryover pool is frozen, 100 percent of the net pool, part of which ordinarily would be added to the place pick (N) carryover pool, shall be distributed to those whose selection finishes first or second in the greatest number of place pick (N) contests for the performance.

(i) A written request for permission to distribute the place pick (N) carryover pool on a specific performance may be submitted to the commission. Each request shall contain a statement of justification for the distribution, the benefit to be derived, and the intended date and performance for the distribution.

(j) If the place pick (N) carryover pool is designated for distribution on a specified date and performance in which there are no wagers selecting the first-place or second-place finisher in each of the place pick (N) contests, the entire pool shall be distributed as a single-price pool to those whose selection finishes first or second in the greatest number of place pick (N) contests. The place pick (N) carryover pool shall be designated for distribution on a specified date and performance in the event of any of the following:

(1) Upon written approval from the commission as provided in subsection (i) of this regulation;

(2) upon written approval from the commission if there is a change in the carryover pool cap or a change from one type of place pick (N) wagering to another, or if the place pick (N) is discontinued;

(3) on the closing performance of the race meeting or split meeting; or

(4) upon the written approval of the commission that, if the organization licensee fails to pay out the carryover pool according to paragraph (j)(3) and the commission determines that it would not be feasible for the track to run another race, the total carryover pool remaining will be distributed to charitable organizations that have met the requirements of K.S.A. 74-8813(d), and amendments thereto, and meet the organization's approved charitable distribution guidelines.

(k) If the place pick (N) carryover pool is carried over to the corresponding place pick (N) pool of a subsequent race meeting, the carryover pool shall be deposited in an interest-bearing account approved by the commission. Each place pick (N) carryover pool plus accrued interest then shall be added to the net place pick (N) pool on the date and performance designated by the commission.

(l) With the written approval of the commission, the licensee may contribute to the place pick (N) carryover a sum of money up to the amount of any designated cap.

(m) Providing information to any person regarding covered combinations, amounts wagered on specific combinations, number of tickets sold, or number of live tickets remaining shall be strictly prohibited. This subsection shall not prohibit any necessary communication for the processing of pool data between totalisator and parimutuel department employees.

(n) Any organization licensee may suspend previously approved place pick (N) wagering with the prior approval of the commission. Any carryover pool shall be maintained until the suspended place pick (N) wagering is reinstated. Any organization licensee may request approval of a place pick (N) wager or separate wagering pool for specific performances.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2001 Supp. 74-8804; implementing K.S.A. 74-8819; effective, T-112-11-9-92, Nov. 9, 1992; effective, T-112-3-1-93, March 1, 1993; effective May 3, 1993; amended March 14, 2003.)

Article 10 Animal Health

Kan. Admin. Regs. § 112-10-2 Assistant animal health officers

(a) Each assistant animal health officer employed by the commission shall be licensed to practice veterinary medicine in the state of Kansas.

(b) No assistant animal health officer shall treat or prescribe medication for any horse located at a racetrack facility or registered to race at a racetrack facility except in an emergency. Each assistant animal health officer who treats or prescribes medication for a horse in an emergency shall immediately file a complete report of the circumstances and veterinary procedure with the stewards and the animal health officer.

(c) No owner or trainer shall employ or pay any compensation to an assistant animal health officer, directly or indirectly, while the assistant animal health officer is employed by the commission.

(d) The duties of each assistant animal health officer shall consist of the following:

(1) Supervising practicing veterinarians at the racetrack facility and recommending to the stewards or the commission the discipline to be imposed upon each practicing veterinarian who violates commission regulations;

(2) determining whether each horse is sound to race and, if the horse is unsound, placing any horse on the veterinarian's list and removing any horse from the veterinarian's list when, at the assistant animal health officer's discretion, the placement or removal is proper. Each horse shall remain on the veterinarian's list a minimum of four days. No horse shall be allowed to race before its name is removed from the veterinarian's list;

(3) establishing a procedure for and supervising the collection of urine, blood, or other specimens from horses, as designated by the assistant animal health officer, the stewards, or commission and maintain identification records for the specimens as required by the commission;

(4) supervising the procedure for witnessing, sealing, and delivering each test specimen to the official test laboratory;

(5) reporting immediately to the animal health officer the name and tattoo number of each horse at a racetrack facility that dies or is humanely destroyed and the reason for the death;

(6) being at the racing secretary's or stewards' office to report to the racing secretary or stewards on the assistant animal health officer's inspection of horses and each horse's condition before scratch time on each race day at the time designated by the stewards;

(7) with the permission of the stewards, scratching a horse at any time before the horse enters the starting gate;

(8) directing a horse to be isolated or declaring the horse ineligible to race if it has symptoms of chronic unsoundness. If a horse is declared ineligible to race, the assistant animal health officer shall report this fact to the stewards, who shall write a formal ruling against the horse and write the reason for the ruling on the horse's registration papers;

(9) accompanying and observing each field of horses from the time the horses enter the paddock to be saddled for the race until they are dispatched from the starting gate;

(10) inspecting horses in the paddock after the finish of each race;

(11) in an emergency, treating or humanely destroying any horse that is so seriously injured that the assistant animal health officer believes the action is necessary. Each horse owner, if present, and trainer at the racetrack facility shall consent to the assistant animal health officer's humane destruction of a seriously injured horse; and

(12) performing other duties prescribed by the animal health officer, the stewards or the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2001 Supp. 74-8804; implementing K.S.A. 2001 Supp. 74-8806, 74-8810; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended Jan. 31, 2003.)

Kan. Admin. Regs. § 112-10-3 Practicing veterinarians

(a)(1) Each practicing veterinarian at a racetrack facility shall possess a current unrestricted license to practice veterinary medicine in the state of Kansas and shall secure an occupation license in accordance with the racing act and commission regulations. One condition of possessing an occupation license shall be the practicing veterinarian's compliance with the regulations of the Kansas board of veterinary medical examiners.

(2) Before an occupation license is issued, each practicing veterinarian shall meet with the animal health officer to verify that the practicing veterinarian has reviewed these racing regulations and is informed about existing medication practice. Each practicing veterinarian, the animal health officer, and each assistant animal health officer shall be the only individuals who may administer veterinary treatment, medicine, or medication to any horse at the racetrack facility or to any horse registered to race at the racetrack facility. Recognized feed supplements, oral tonics, and substances approved by the animal health officer shall not be subject to this regulation.

(b) Each practicing veterinarian at a racetrack facility who treats a horse for any contagious or communicable disease shall report the fact immediately in writing to the animal health officer or assistant animal health officers on a form approved by the animal health officer.

(c) Each practicing veterinarian who treats a horse at a racetrack facility shall record the treatment in a log that has been approved by the animal health officer. Each practicing veterinarian shall deliver the log by 10:00 a.m. of the day after the treatment to the assistant animal health officers' office at the racetrack facility. Each log shall be the practicing veterinarian's commission report.

(d) Each practicing veterinarian at a racetrack facility also shall maintain a treatment record on each horse that the practicing veterinarian treats during a race meeting. The records shall be compiled in a form similar to the treatment record ordinarily maintained by the practicing veterinarian in private practice. Each practicing veterinarian shall promptly surrender the treatment records to the commission upon its request. Information to be recorded in the treatment record shall include the following:

(1) Name and location of the horse treated;

(2) name of the trainer;

(3) nature of the condition treated or probable diagnosis;

(4) nature of the treatment and medication administered; and

(5) date and hour of treatment.

(e) No veterinarian shall deliver to another individual at a racetrack facility a syringe or injectable medication except upon written authorization of the animal health officer or assistant animal health officer.

(f) No practicing veterinarian who treats a horse at a racetrack facility shall wager on the outcome of any race in which the treated horse starts.

(g) Each drug and medication at a racetrack facility shall be in a container bearing a veterinarian's prescription or in the original container bearing the manufacturer's label with the serial or lot number. Each practicing veterinarian shall use only disposable syringes and needles to medicate horses. No veterinarian shall leave unattended a drug or medication or any equipment for administering the drug or medication. All equipment for administering the drug or medication shall be destroyed before it is discarded. All drugs, medication, and equipment shall be disposed of in a manner that is environmentally safe.

(h) The use of extracorporeal shock wave therapy (ESWT) shall be limited to practicing veterinarians and shall be subject to the following additional restrictions:

(1) Only practicing veterinarians may possess ESWT instruments and machines at the racetrack facility.

(2) Each ESWT treatment shall be recorded by the practicing veterinarian on a treatment log form approved by the animal health officer and in the format described in subsections (c) and (d) above.

(3) No horse receiving ESWT shall be allowed to race unless both of the following conditions are met:

(A) At least 10 calendar days have passed since the horse last received ESWT.

(B) The animal health officer or assistant animal health officer has examined the horse and approves it to race.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8810 and 74-8816; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended Nov. 16, 2001; amended Feb. 6, 2004.)

Kan. Admin. Regs. § 112-10-4 Drugs or medication

(a) No individual shall administer any drug or medication to any horse entered in a race before the race in which the horse is to run and continuing until after the race is run except as authorized in these racing regulations.

(b) If the official test laboratory reports a positive test for any drug, its metabolites or any substance foreign to the natural horse, the animal health officer shall classify the test in accordance with the following classifications:

(1) class one: drugs which have the highest potential for affecting performance and which have no generally accepted use in the racing horse. These include, but are not limited to:

(A) opiates, opium derivatives, synthetic opiates and psychoactive drugs which are classified by Pub. L. No. 91-513 as in effect August 1, 1992, as schedule I or schedule II drugs only;

(B) amphetamines and amphetamine-like drugs which are classified by Pub. L. No. 91-513 as in effect August 1, 1992, as schedule I and schedule II drugs only. They do not include drugs which are listed in schedule II and some additional lower schedule III, IV and V;

(C) miscellaneous agents including but not limited to apomorphine, nikethamide, mazindol, pemoline and pentylenetetrazol; and

(D) substances which are not naturally occurring and have no recognized therapeutic value and which impede testing procedures.

(2) class two: drugs which have less potential to affect performance and which are not generally accepted as therapeutic agents in racing horses, except that therapeutic agents that have a high abuse potential are included. Drugs in this class include, but are not limited to: opiates which are classified by Pub. L. No. 91-513 as in effect August 1, 1992, from schedules III, IV and V, catecholamines, psychotropic drugs, central nervous system and cardiovascular stimulants and depressants and muscle blocking agents. Local anesthetics, because of high potential for use as nerve blocking agents, are included in this class.

(3) class three: drugs which are classified by Pub. L. No. 91-513 as in effect August 1, 1992, found in schedules III, IV and V, and non-scheduled drugs which may or may not have generally accepted use in the racing horse, but the pharmacology or use patterns of which include lower scheduled or non-scheduled opioids, bronchodilators and other drugs with primary effects on the autonomic nervous system, procaine from procaine penicillin, antihistamines with mild sedative properties, the high ceiling diuretics and anabolic steroids are included in this group.

(4) class four: therapeutic medications which would be expected to have less chance of affecting performance than drugs in class three. These include, but are not limited to, corticosteroids, mineralcorticoids, non-steroidal anti-inflammatory drugs, including phenylbutazone and oxyphenbutazone at plasma concentrations exceeding 5 micrograms per milliliter or less if detected in a horse that is not permitted such medication or is not identified as having been treated with such medication, less potent diuretics, antihistamines without prominent central nervous system depressant effects, skeletal muscle relaxants, expectorants and mucolytics, hemostatics, cardiac glycosides and antiarrhythmics, topical anesthetics, antidiarrheals, hemorrhelogics, anticonvulsants, non-opiod drugs with a mild analgesic effect and drugs affecting the autonomic nervous system which do not have prominent central nervous system, cardiovascular or respiratory effects and naturally occurring substances that appear in unusual levels or that may interfere with or impede testing procedures.

(5) class five: category of therapeutic medications for which levels have been established by regulation. Also included in this class are miscellaneous agents such as dimethylsulfoxide and other medications as determined by the commission and any recurring substance that may have an undetermined effect or that cannot be identified by recognized analytical methods.

(c) The animal health officer's classification of the positive test shall be reported to the stewards and executive director.

(d) The finding of a class one positive shall result in a penalty of:

(1) a disqualification of the animal and a redistribution of the purse;

(2) a return of any trophy or other award delivered to the owner or owners;

(3) a fine of up to $5,000;

(4) a revocation or a suspension of a license for a period of up to five years; or

(5) a combination of the above.

(e) The finding of a class two positive shall result in a penalty of:

(1) A disqualification of the animal and redistribution of the purse;

(2) a return of any trophy or other award delivered to the owner or owners;

(3) a fine of up to $2500;

(4) a suspension of up to one year; or

(5) a combination of the above.

(f) The finding of a class three positive shall result in a penalty of:

(1) a disqualification of the animal and redistribution of the purse;

(2) a return of any trophy or other award delivered to the owner or owners;

(3) a fine of up to $1500;

(4) a suspension of up to six months; or

(5) any combination of the above.

(g) The finding of a class four positive shall result in a penalty of:

(1) a disqualification of the animal and redistribution of the purse;

(2) a return of any trophy or other award delivered to the owner or owners;

(3) a fine of up to $1000;

(4) a suspension of up to 60 days; or

(5) any combination of the above.

(h) The finding of a class five positive may result in a penalty of:

(1) a disqualification of the animal and redistribution of the purse;

(2) a return of any trophy or other award delivered to the owner or owners;

(3) a suspension of up to 15 days;

(4) a fine of up to $500;

(5) a warning; or

(6) any combination of the above.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; implementing K.S.A. 1991 Supp. 74-8811; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended March 19, 1990; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-10-5 Authorized medications

(a) Furosemide may be administered to any horse that is entered in a race meeting, subject to the requirements of these racing regulations. Except upon the instructions of the animal health officer or an assistant animal health officer to remove the horse from the veterinarian's list or to facilitate the collection of a post-race urine sample, the administration of furosemide shall be permitted only if all of the following requirements are met.

(1) The animal health officer or an assistant animal health officer shall place the horse's name on the bleeder list or the furosemide list, or on both lists.

(2) The furosemide shall be administered at a location approved by the animal health officer or an assistant animal health officer and at least four hours before post time for the race in which each horse is entered, unless otherwise authorized in advance by the animal health officer or assistant animal health officer.

(3) Furosemide shall be administered only by a practicing veterinarian designated by the trainer to administer the furosemide to each horse under the supervision of the animal health officer or an assistant animal health officer.

(4) No dose of furosemide administered shall exceed 250 milligrams, unless otherwise authorized in advance by the animal health officer or an assistant animal health officer. In addition to the dosage restriction specified in this paragraph, furosemide shall be administered only intravenously and only in a single injection.

(5) Each horse to which furosemide is administered shall remain under the care, custody, and control of the trainer or the designated representative from the time the furosemide is administered until the time for the horse to be removed to the saddling paddock.

(6) Each owner shall pay all expenses resulting from the administration of furosemide. These costs shall include the following:

(A) Administration;

(B) injection;

(D) custody; and

(E) security.

(7) The use of furosemide shall be required to be approved in advance and shall be subject to the following requirements:

(A) The specific gravity of post-race urine samples shall be measured to ensure that the specific gravity (sg) of the urine is 1.010 or higher. If the sg of the post-race urine sample is below 1.010, quantitation of furosemide in serum or plasma shall then be performed.

(B) When a serum or plasma sample is quantitated, the concentration of furosemide in the sample shall not exceed 100 nanograms per milliliter of serum or plasma. Each concentration above 100 ng/ml shall be deemed a violation of this regulation.

(b) No person shall administer a medication to any horse entered to race except upon authorization of the animal health officer or assistant animal health officer in compliance with these regulations.

(c) No medication other than authorized bleeder medication shall be administered to any horse entered to race within 24 hours of the race in which the horse is entered.

(d)(1) No more than one approved nonsteroidal anti-inflammatory drug (NSAID) substance may be administered to a horse that is entered to race. The NSAID administered shall be one of the following authorized drug substances:

(A) Phenylbutazone in a dosage amount so that the test sample taken after the race contains no more than 5.0 micrograms of drug substance per milliliter of blood plasma or serum;

(B) flunixin in a dosage amount so that the test sample taken after the race contains no more than 20 nanograms of drug substance per milliliter of blood plasma or serum; or

(C) ketoprofen in a dosage amount so that the test sample taken after the race contains no more than 10 nanograms per milliliter of blood plasma or serum.

(2) Each trainer shall file a request for the use of any authorized NSAID with the animal health officer or an assistant animal health officer on an official request form approved by the animal health officer before the horse is entered in a race.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8811; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended Oct. 24, 1997; amended July 30, 2004; amended Aug. 26, 2005.)

Kan. Admin. Regs. § 112-10-6 Bleeder list

(a)(1) "Bleeder" means any equine exhibiting exercise-induced pulmonary hemorrhage (EIPH) manifested by the presence of frank blood appearing from either nostril or the presence of frank blood in the trachea.

(2) "Exercise-induced pulmonary hemorrhage" and "EIPH" mean a commonly recognized condition in race horses that is manifested by bleeding into the lung tissue during or after strenuous exercise. The presence of frank blood can be seen in the trachea by means of endoscopic exam, or by the appearance of blood emanating from the nostrils.

(3) "Furosemide" means a diuretic that is recognized for its benefit in the medical management of the EIPH syndrome in horses.

(b) Subject to the requirements of these racing regulations, furosemide may be administered to any horse that is entered in a race if its name is on the bleeder list or the furosemide list. A horse's name shall be placed on the bleeder list if any one of the following conditions is met:

(1) The animal health officer or an assistant animal health officer observes the horse shedding blood from one or both nostrils during or following exercise or a race.

(2) A practicing veterinarian who is employed by the owner or trainer of the horse, and the animal health officer or an assistant animal health officer determine that the horse should be certified as a bleeder after an endoscopic examination of the respiratory tract conducted by the practicing veterinarian under the supervision of the animal health officer or an assistant animal health officer.

(3) A bleeder certificate for the horse is attached to the horse's papers on file in the racing secretary's office, and the certificate is from a jurisdiction that uses bleeder qualification criteria satisfactory to the animal health officer or an assistant animal health officer. Each certificate shall bear the signature of the racing commission official in the state of origin.

(c) For each horse that does not have a bleeder certificate and that is observed bleeding for the first time ever, both of these requirements shall be met:

(1) The horse's name shall be placed on the bleeder list for a minimum of 10 days or until the animal health officer or assistant animal health officer removes the horse's name from the list.

(2) The horse's owner shall receive an official Kansas bleeder certificate signed by the animal health officer or assistant animal health officer and attached to the registration certificate of this horse.

(d) Each horse that has a bleeder certificate and is racing after the administration of furosemide shall be subject to the following restrictions:

(1) The first time a horse is observed bleeding, its name shall be placed on the bleeder list, and the name shall remain there for a minimum of 20 days or until the animal health officer or assistant animal health officer removes the horse's name from the list.

(2) The second time a horse is observed bleeding within a 12-month period, its name shall be placed on the bleeder list, and the name shall remain there for a minimum of 30 days or until the animal health officer or assistant animal health officer removes the horse's name from the list.

(3) The third time a horse is observed bleeding within a 12-month period, the horse shall be barred from parimutuel racing in Kansas for a minimum of one year or any additional time as determined by the animal health officer or designee after an endoscopic examination of the horse's respiratory tract.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8806 and 74-8811; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended March 21, 1997; amended July 16, 1999; amended Nov. 16, 2001; amended July 30, 2004.)

Kan. Admin. Regs. § 112-10-6a Furosemide list

(a) A horse may be allowed to race after the administration of furosemide if any of the following conditions is met:

(1) After consultation with the horse's trainer or practicing veterinarian, or both, the animal health officer or an assistant animal health officer determines that it would be in the best interest of the horse's health to allow the horse to race with furosemide.

(2) The horse's name appears on the bleeder list from any racing jurisdiction.

(3) The horse has an official bleeder stamp or certificate attached to the registration papers.

(4) The horse is observed to bleed as described in K.A.R. 112-10-6(a).

(5) The past performance lines indicate that the horse has been racing with furosemide.

(b) A list of all horses racing after the administration of furosemide shall be maintained by the animal health officer or an assistant animal health officer.

(c) An "application to administer furosemide" form approved by the animal health officer shall be submitted by the trainer with the names of all horses racing with furosemide. This form shall be on file with the animal health officer or an assistant animal health officer before the first race in which each listed horse competes.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8806 and 74-8811; effective July 30, 2004.)

Kan. Admin. Regs. § 112-10-7 Test barn

(a) Each organization licensee shall provide a test barn suitable for taking test samples from horses. Each test barn shall include:

(1) An office area with at least 100 square feet of floor area that can be locked;

(2) a wash rack that measures at least 12 feet by 12 feet;

(3) a minimum of two stalls that measure at least 10 feet by 10 feet, equipped with dutch doors and observation portholes adjacent to the office;

(4) a freezer that measures at least 10 cubic feet;

(5) hot and cold running water; and

(6) a walking ring measuring at least 40 feet by 60 feet adjacent to the office.

(b) Each organization licensee shall furnish security personnel and procedures approved by the director of security to secure the test barn during races and until the last test sample is taken for the day.

(c) At the written request of an organization licensee, the commission may approve alternative facilities for the test barn.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-10-8 Testing

(a) The stewards may require any horse entered in a race to submit to a blood test or other pre-race test. No horse shall be eligible to start in a race until the owner or trainer complies with the required test procedure.

(b) A blood, urine, or other sample shall be taken from the winner of each race and from each other horse designated by the stewards.

(c) Each blood, urine, or other sample specimen shall be taken under the supervision of the animal health officer or assistant animal health officer. Each sample shall be taken in the test barn unless approved otherwise by the animal health officer or assistant animal health officer.

(d) After each horse enters the test barn, it shall be cooled out for a minimum of 30 minutes before the sample is taken unless otherwise authorized by the animal health officer or assistant animal health officer.

(e) Each trainer, or authorized representative of the trainer, shall witness and confirm the taking of test samples and shall sign the confirmation card.

(f) A trainer or owner may waive the right to witness the collection of a test sample from a racing animal if the trainer's authorized representative witnessing the collection of the test sample is less than 18 years of age. The trainer shall execute a voluntary and knowing waiver of the right to witness the collection of the test sample before the time of collection. Each trainer waiving the right to witness the collection of a test sample from a racing animal shall be estopped from later claiming any defect in the process of collecting and identifying the test sample.

(g) When any horse has been in the test barn for more that one hour, the assistant animal health officer may take a blood sample in lieu of a urine sample and submit the blood plasma from the sample to the test laboratory for testing.

(h) Each test sample shall remain in the custody of the animal health officer or assistant animal health officer from the time it is secured until it is delivered for shipment to the test laboratory.

(i) No person shall tamper with, adulterate, add to, break the seal of, remove or otherwise attempt to alter or violate any test sample taken, but preservatives or additives necessary for analysis of the sample may be added by the commission-approved test laboratory.

(j) The test laboratory or the animal health officer and assistant animal health officer may be directed by the commission to retain and preserve test samples for future analysis.

(k) The fact that purse money has been paid before the issuance of a laboratory report shall not be deemed a finding that no prohibited substance has been administered to the horse earning the purse money in violation of these racing regulations.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1997 Supp. 74-8804; implementing K.S.A. 1997 Supp. 74-8806 and 74-8810, as amended by L. 1998, Ch. 178, Sec. 3, and K.S.A. 74-8811, as amended by L. 1998, Ch. 178, Sec. 4; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended Jan. 15, 1999.)

Kan. Admin. Regs. § 112-10-9 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8811; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; revoked, T-112-8-13-92, Aug. 13, 1992; revoked, T-112-12-10-92, Dec. 10, 1992; revoked Feb. 15, 1993.)

Kan. Admin. Regs. § 112-10-9a Split samples

(a) The animal health officer or assistant animal health officer shall determine, based upon the written standards of the official test laboratory, in their sole discretion whether there is sufficient quantity of each test sample to divide it into two portions for testing. If sufficient quantity of urine is not available for a split sample, the assistant animal health officer shall collect a blood sample for the purpose of providing a sample for the trainer pursuant to this rule.

(b) If a test sample is divided into two portions for testing, no provision of these racing regulations shall prevent the commission or the executive director from ordering both test sample portions to be delivered to the official test laboratory for initial testing.

(c) When the quantity of the test sample permits the splitting of the sample, each first portion shall be submitted by the commission to the official test laboratory for initial testing for prohibited substances.

(d) When the quantity of the test sample permits and when the trainer or owner files a written request with the racing judges for the testing of a split sample, the commission shall submit the second portion of the test sample to a test laboratory approved by the commission. Each written request for the testing of a split sample shall be filed in the commission office at the racetrack facility within 48 hours after the trainer or owner receives notice of a positive report on a test sample taken from the horse.

(e) Each person who requests testing of the second portion of a sample shall pay all costs for the transportation and testing of the sample.

(f) The freezing, storage and safeguarding of each portion of a test sample shall remain the responsibility of the animal health officer and the assistant animal health officer.

(g) The test results on the second portion of a sample shall not prevent disqualification of the horse. The results of the first test are prima facie evidence that the horse competed with the drug or medication in its system.

(h) No provision of these racing regulations shall create vested procedural rights that may be relied upon by any licensee for the purpose of excluding testing evidence that is competent and probative.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; implementing K.S.A. 1991 Supp. 74-8811; effective, T-112-8-13-92, Aug. 13, 1992; effective, T-112-12-10-92, Dec. 10, 1992; effective Feb. 15, 1993.)

Kan. Admin. Regs. § 112-10-10 Bandages

Only bandages approved by an assistant animal health officer shall be used on a horse during a race. Each other leg covering shall be removed before the horse enters the saddling paddock.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804; implementing K.S.A. 1988 Supp. 74-8806, 74-8810; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-10-11 Posterior digital neurectomy

(a) Each person shall not deliver to a race track facility, enter or cause to be entered in any race, sell or offer for sale or act as a bloodstock agent in the sale of a horse that has been "nerved" or has had any nerve removed from its leg except as provided in article 112 of the Kansas administrative regulations.

(b) Any horse that has had a posterior digital neurectomy may be eligible to race if:

(1) An assistant animal health officer finds that the loss of sensation resulting from the posterior digital neurectomy will not endanger the horse or rider;

(2) an assistant animal health officer has approved the presence of the horse at the race track facility;

(3) the horse is registered or eligible and the racing secretary has been notified that the horse has been nerved at the time the horse is admitted to the race track facility or while it is at the race track facility; and

(4) the fact the horse has been nerved is recorded on the horse's eligilility certificate.

(c) Each posterior digital neurectomy that is performed at a race track facility shall be reported immediately to the racing secretary.

(d) Each horse shall not be eligible to race if it has had a neurectomy above the fetlock.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804; implementing K.S.A. 1988 Supp. 74-8806; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-10-12 Postmortem examination

(a) Each racing horse that dies or suffers a breakdown while training or racing at a racetrack facility and is destroyed shall undergo a postmortem examination. Each postmortem examination shall be sufficiently comprehensive to identify the injury or medical condition causing the death and shall be conducted at a time and place approved by the assistant animal health officer.

(b) The assistant animal health officer may require any other horse that dies at a racetrack facility to undergo a postmortem examination.

(d) The assistant animal health officer may attend the postmortem examination.

(e) The assistant animal health officer may secure test samples, including tissue and other specimens during the postmortem examination, and, if secured, shall send them to the official test laboratory or a diagnostic laboratory for testing and consultation. When practical, the assistant animal health officer shall secure the test samples for the detection of prohibited substances before the horse is destroyed.

(f) Each owner shall pay the expenses of the practicing veterinarian approved by the animal health officer to conduct the postmortem examination.

(g) Each practicing veterinarian shall file a report detailing each postmortem examination on a form approved by the animal health officer with the assistant animal health officer within 72 hours of the horse's death. Each owner of a horse upon which a postmortem examination is conducted shall receive a copy of the report upon request.

(h) Each owner and trainer shall comply with each provision for postmortem examination contained in these racing regulations as a condition of the owner's and trainer's occupation license.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8806 and 74-8825; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-10-13 Prohibition on possession of drugs, medications, syringes, and needles

(a) While within any restricted area of a licensed horse racetrack facility, no licensee, except a commission-licensed veterinarian or animal health officer, shall have in that licensee's possession any of the following:

(1) Hypodermic syringes;

(2) hypodermic needles;

(3) any drug, medication, or other substance that can be administered parenterally;

(4) rubber stopper bottles or any similar instruments that can be used for injection; and

(5) any other equipment used for hypodermic injection.

(b) Each violation of this regulation shall result in a penalty of one of the following:

(1) A fine of up to $5,000;

(2) license revocation or suspension for up to five years; or

(3) a combination of the penalties specified in paragraphs (b)(1) and (2).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 74-8804 and 74-8816; effective May 7, 2004.)

Kan. Admin. Regs. § 112-10-32 Assistant animal health officer, greyhound

(a) Each assistant animal health officer employed by the commission shall be licensed to practice veterinary medicine in the state of Kansas.

(b) No assistant animal health officer shall treat or prescribe medication for any greyhound located at a racetrack facility or registered to race at a racetrack facility except in an emergency. Each assistant animal health officer who treats or prescribes medication for a greyhound in an emergency shall promptly file a complete report of the circumstances and veterinary procedure with the racing judges and the animal health officer.

(c) No kennel owner or trainer shall employ or pay any compensation to an assistant animal health officer, directly or indirectly, while the assistant animal health officer is functioning in that capacity at the racetrack as an employee of the commission.

(d) An assistant animal health officer shall meet the following requirements:

(1) Supervise practicing veterinarians at the racetrack facility and recommend to the racing judges or the commission the discipline to be imposed upon each practicing veterinarian who violates commission regulations;

(2) place any greyhound on the veterinarian's list where it shall remain a minimum of three calendar days when in an assistant animal health officer's discretion the placement is proper;

(3) remove any greyhound from the veterinarian's list when in an assistant animal health officer's discretion the removal is proper. No greyhound shall be entered in a race before its name is removed from the veterinarian's list unless otherwise approved by the animal health officer or assistant animal health officer;

(4) establish a procedure for, supervise the collection of and maintain identification records for urine, blood or other specimens from greyhounds, as designated by an assistant animal health officer, the racing judges or the commission;

(5) supervise the procedure for witnessing, sealing, and delivering each test specimen to the official test laboratory;

(6) report immediately to the animal health officer the name, tattoo number, and reason for death of each greyhound that dies or is euthanized at a racetrack facility;

(7) with the permission of the racing judge, scratch each greyhound determined not sound to race at any time before the greyhound enters the starting box;

(8) treat or euthanize any greyhound that is so seriously injured that an assistant animal health officer believes the action is necessary. Each kennel owner or trainer at a racetrack facility shall execute and deliver a written waiver and consent to an assistant animal health officer before the greyhound is treated or euthanized; and

(9) perform other duties prescribed by the animal health officer, the racing judges or the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8806, 74-8810, 74-8825; effective, T-112-8-22-89, Aug. 22, 1989; effective Oct. 9, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-10-33 Practicing veterinarians, greyhound

(a) Each practicing veterinarian at a racetrack facility shall be licensed to practice veterinary medicine in the state of Kansas and shall secure an occupation license in accordance with the Kansas parimutuel racing act and commission regulations. Before an occupation license issues, each practicing veterinarian shall meet with the animal health officer to verify that the practicing veterinarian has reviewed these racing regulations and is informed about existing medication practice.

(b) Each practicing veterinarian at a racetrack facility who treats a greyhound for any contagious or communicable disease shall report the fact immediately in writing to the animal health officer or assistant animal health officers on a form approved by the animal health officer.

(c) No practicing veterinarian who treats a greyhound at a racetrack facility shall wager on the outcome of any race in which the treated greyhound starts.

(d) Each practicing veterinarian shall comply with the rules and standards of the Kansas board of veterinary examiners.

(e) Each drug or medication at a racetrack facility shall be in a container bearing a veterinarian's prescription or in the original container bearing the manufacturer's label with the serial or lot number. Each practicing veterinarian shall use only disposable syringes and needles to medicate greyhounds. No veterinarian shall abandon a drug or medication or equipment for administering the drug or medication. All equipment for administering the drug or medication shall be destroyed before it is discarded. All drugs, medications or equipment shall be disposed of in a manner which is environmentally safe.

(f) Only a veterinarian employed by or licensed by the commission may possess procaine on a racetrack facility.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; implementing K.S.A. 1991 Supp. 74-8810, as amended by L. 1992, Ch. 27, Sec. 4, and L. 1992, Ch. 286, Sec. 3, and 74-8816, as amended by L. 1992, Ch. 286, Sec. 8; effective, T-112-8-22-89, Aug. 22, 1989; effective Oct. 9, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-10-34 Drugs or medication, greyhound

(a) No individual shall administer any drug or medication to any greyhound entered in a race for 24 hours before the race in which the greyhound is to run and continuing until after the race is run.

(b) If the official test laboratory reports a positive test for any drug, its metabolites, or any foreign substance, the animal health officer shall classify the test in accordance with the following classifications:

(1) Class one: drugs and medications that are stimulants, depressants, narcotics, local anesthetics having no recognized therapeutic value or substances that impede testing procedures;

(2) class two: drugs and medications that are therapeutic medications that may affect the outcome of the race, naturally occurring substances that appear in unusual levels or that may interfere with or impede testing procedures; and

(3) class three: drugs and medications that are incidental residues of substances of recognized therapeutic value or recurring substances that have an undetermined effect or that cannot be identified by recognized analytical methods.

(c) The animal health officer's classification of the positive test shall be reported to the commission. The final decision regarding classification of the positive test shall be made by the commission.

(d) The finding of a class one positive may result in penalties of:

(1) A disqualification of the animal and a redistribution of the purse;

(2) a return of any trophy or other award delivered to the owner or trainer;

(3) a fine of up to $5,000;

(4) a suspension or a revocation of license; or

(5) a combination of the above.

(e) The finding of a class two positive may result in a penalty of:

(1) A disqualification of the animal and a redistribution of the purse;

(2) a return of any trophy or other award delivered to the owner or trainer;

(3) a fine of up to $500;

(4) a suspension of up to 60 days;

(5) a warning; or

(6) a combination of the above.

(f) The finding of a class three positive may result in a penalty of:

(1) An investigation into the possible source;

(2) a search of the individual and any assigned area;

(3) a warning; or

(4) any combination of the above.

(g) Each laboratory analysis of saliva, urine, blood or other sample taken from a greyhound that indicates the presence of a drug or medication shall be evidence that the drug or medication was present in the greyhound's system during the running of the race.

(h) Despite each provision to the contrary in this regulation, liniments, including Dimethylsulfoxide, may be administered to a greyhound as an external topical application. If the assistant animal health officer determines there has been excessive use of liniment on the racing greyhound, the assistant animal health officer may scratch the greyhound.

(i) Despite each provision to the contrary in this regulation, procaine, trimethoprim and sulfa shall be permitted medications subject to the following condition. Procaine, trimethoprim and sulfa shall not be permitted medications if the racing chemist in consultation with the animal health officer determines that a test sample contains procaine, trimethoprim or sulfa in a quantity considered:

(1) Significant; or

(2) capable of altering the performance of a greyhound. Procaine shall not be transported or possessed on the racetrack facility by any individual who is not licensed to practice veterinary medicine by the state of Kansas.

(j) No individual shall possess, transport or use any drug or medication or equipment for administering a drug or medication at the racetrack facility or within the confines of the kennel compound except:

(1) when licensed as a veterinarian by the state of Kansas and the commission; or

(2) when licensed as a kennel owner or trainer by the commission, subject to the following conditions:

(A) Each kennel owner or trainer who possesses a drug or medication or equipment for administering a drug or medication shall place the drug or medication in the designated area, including the refrigerator, in the kennel building.

(B) Each drug or medication in the kennel owner's or trainer's possession shall be listed on a form approved by the animal health officer and filed with the assistant animal health officer.

(C) Each kennel owner or trainer shall update the form on a daily basis so that at all times a current and correct list of drugs or medications and the equipment for administering them is on file with the assistant animal health officer.

(k) Each drug or medication at a racetrack facility shall be in a container bearing a veterinarian's prescription or in the original container bearing the manufacturer's label with the serial or lot number. No veterinarian or kennel owner or trainer shall abandon a drug or medication or equipment for administering the drug or medication. All equipment for administering the drug or medication shall be destroyed before it is discarded.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-8804; 74-8811; implementing K.S.A. 1989 Supp. 74-8804, 74-8811 and 74-8816; effective, T-112-8-22-89, Aug. 22, 1989; effective Oct. 9, 1989; amended March 25, 1991.)

Kan. Admin. Regs. § 112-10-35 Greyhound testing for prohibited substances; methods; procedures; payment of purse money

(a) Each racing greyhound entered in a race may be submitted to a urine or other pre-race test. No greyhound shall be eligible to start in a race until the owner or trainer complies with any required test procedure.

(b) The assistant animal health officer or veterinary assistant may take a urine or other test sample under the supervision of the animal health officer or assistant animal health officer from the winner of every race and from any other greyhound designated by the assistant animal health officer in consultation with the racing judges.

(c) The assistant animal health officer or veterinary assistant shall take each test sample in a collection area or in the paddock area unless otherwise approved by the animal health officer or assistant animal health officer.

(d) Each trainer, kennel owner or authorized representative of the trainer or kennel owner may witness and confirm the taking of each test sample. Each trainer, kennel owner and authorized representative witnessing the collection shall sign the confirmation card.

(e) A trainer or kennel owner may waive the right to witness the collection of a test sample from a racing animal if the trainer's authorized representative witnessing the collection of the test sample is less than 18 years of age. The trainer shall execute a voluntary and knowing waiver of the right to witness the collection of the test sample before collection. Each trainer waiving the right to witness the collection of a test sample from a racing animal shall be estopped from later claiming any defect in the process of collecting and identifying the test sample.

(f) If a urine sample is not obtained within a reasonable time following a race, the assistant animal health officer may take a blood sample from the brachiocephalic vein in lieu of a urine sample and submit the blood plasma from the blood sample to the official test laboratory for testing.

(g) Each test sample shall remain in the custody of the animal health officer or assistant animal health officer from the time it is taken until it is delivered for shipment to the official test laboratory.

(h) No person shall tamper with, adulterate, add to, break the seal of, remove or otherwise attempt to alter or violate any test sample taken.

(i) The commission may direct the official test laboratory or the animal health officer and assistant animal health officer to retain and preserve test samples for future analysis.

(j) The payment of purse money before the issuance of an official test laboratory report shall not constitute a finding that no prohibited substance has been administered in violation of these racing regulations to the greyhound earning the purse money.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1995 Supp. 74-8804; implementing K.S.A. 1995 Supp. 74-8806, K.S.A. 1995 Supp. 74-8810, and 74-8811; effective, T-112-8-22-89, Aug. 22, 1989; effective Oct. 9, 1989; amended March 25, 1991; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993; amended, T-112-4-24-96, April 24, 1996; amended Aug. 9, 1996.)

Kan. Admin. Regs. § 112-10-36 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8811; effective, T-112-8-22-89, Aug. 22, 1989; effective Oct. 9, 1989; revoked, T-112-1-14-92, Jan. 14, 1992; revoked March 23, 1992.)

Kan. Admin. Regs. § 112-10-36a Split samples

(e) Each person who requests testing of the second portion of a sample shall pay all costs for the transportation and testing of the sample.

(f) The freezing, storage and safeguarding of each portion of a test sample shall remain the responsibility of the animal health officer and the assistant animal health officer.

(g) The test results on the second portion of a sample shall not prevent disqualification of the greyhound. The results of the first test are prima facie evidence that the greyhound competed with the drug or medication in its system.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8811; implementing K.S.A. 1990 Supp. 74-8811; effective, T-112-1-14-92, Jan. 14, 1992; effective Feb. 24, 1992.)

Kan. Admin. Regs. § 112-10-37 Postmortem examination

(a) An assistant animal health officer may order a postmortem examination for each greyhound that dies at a racetrack facility.

(b) The postmortem examination shall be conducted by a practicing veterinarian employed by the kennel owner or by the School for Veterinary Medicine at Kansas State University.

(d) The assistant animal health officer may secure test samples, including tissue and other specimens during the postmortem examination. If secured, the assistant animal health officer shall send the samples to the official test laboratory or a diagnostic laboratory for testing and consultation. When practical, the assistant animal health officer shall secure the test samples for the detection of prohibited substances before the greyhound is euthanized.

(e) Each kennel owner shall pay the expenses of the practicing veterinarian employed by the kennel owner to conduct the postmortem examination.

(f) Each kennel owner and trainer shall comply with each provision for postmortem examination contained in these racing regulations as a condition of the kennel owner's and trainer's license.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; implementing K.S.A. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2, and 74-8806; effective, T-112-8-22-89, Aug. 22, 1989; effective Oct. 9, 1989; amended, T-112-8-13-92, Aug. 13, 1992; amended, T-112-12-10-92, Dec. 10, 1992; amended Feb. 15, 1993.)

Kan. Admin. Regs. § 112-10-38 Vaccinations

(a) Every greyhound at each racing facility shall be periodically vaccinated against each disease that the animal health officer has determined is communicable to other greyhounds at the facility.

(1) The racing secretary shall maintain records of vaccinations of each greyhound housed at the racing facility and shall make these records available to the animal health officer or the animal health officer's designee upon request.

(2) All greyhounds entering the racetrack facility shall be accompanied by proof of current vaccination for canine distemper, adenovirus type 2, parainfluenza, parvovirus (DA2PP), bordetella bronchiseptica, and rabies. A certificate of vaccination shall be presented to the assistant animal health officer's office by the next race day following arrival of each greyhound.

(3) The record of each vaccination series shall be signed by the licensed veterinarian administering the vaccine and shall include the vaccine's trade name and expiration date.

(b) Every greyhound kenneled at a racing facility shall be vaccinated for canine distemper, adenovirus type 2, parainfluenza, parvovirus (DA2PP), bordetella bronchiseptica, and rabies by a licensed veterinarian and shall receive booster vaccinations on an annual basis.

(c) Every trainer or kennel owner bringing a greyhound into a racing facility shall file with the racing secretary, for each greyhound, a copy of its registration certificate and an individual certificate of vaccination, which shall include the following:

(1) The name of the greyhound;

(2) the sex of the greyhound;

(3) the whelping date of the greyhound;

(4) a complete history of all vaccinations; and

(5) a description of all identification, including the following:

(A) Tattoos; and

(B) color.

(d) The certificate required by subsection (c) above shall be filed with the racing secretary before any start made by the greyhound and shall remain on permanent file with the secretary.

(e) Each greyhound entering Kansas, regardless of the state or country in which it was whelped, shall be accompanied by a small animal health certificate issued by the division of animal health of the state or country of departure. This certificate shall list the following:

(1) The names of both the consignor and the consignee;

(2) both addresses;

(3) the name and age of the greyhound; and

(4) the greyhound's DA2PP, bordetella bronchiseptica, and rabies vaccination status, which shall be signed by a veterinarian and shall include the vaccine's trade names and expiration dates.

The certificate shall be dated within 30 days before arrival in Kansas.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1998 Supp. 74-8804; implementing K.S.A. 1998 Supp. 74-8806; effective Dec. 22, 1995; amended June 21, 1996; amended Feb. 11, 2000.)

Article 11 Security and Safety

Kan. Admin. Regs. § 112-11-1 Definitions

As used in regulations concerning security and safety, unless the context otherwise requires:

(a) "Ambulance" means any aircraft or motor vehicle, whether privately or publicly owned, that is specially constructed, equipped and intended to be used for the purpose of transporting sick, injured, disabled or otherwise incapacitated human beings.

(b) "Basic course" means a training course for security guards given before they assume their official duties.

(d) "Firearms course" means a training course that includes instruction on the use of deadly force and that is conducted by a person who has completed a firearms instructor's course recognized by the Kansas law enforcement training commission.

(e) "First aid course" means any of the following officially recognized courses: red cross advanced first aid course, emergency medical technician course or emergency medical services first responder course.

(f) "Security guard" means a person whose principal duty is to protect persons or property at a racetrack facility licensed by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-11-2 Minimum requirements for security guard

(a) Each person who is licensed by the commission as a security guard shall have met the following requirements before licensure:

(1) Be a citizen of the United States or otherwise legally reside in the United States;

(2) complete a comprehensive written application approved by the commission;

(3) submit to a background investigation conducted by the director of security, director of the Kansas bureau of investigation or other person designated by the commission. Each applicant shall execute and verify a personal background disclosure form provided by the commission and fully cooperate in any investigation it may undertake;

(4) undergo a thorough medical assessment conducted by a person licensed to practice medicine and surgery;

(5) demonstrate by the medical assessment that the individual is free from any physical defect that might adversely affect the applicant's performance as a security guard;

(6) undergo a personality stability evaluation conducted by a professional psychologist approved by the commission if the security guard will carry a firearm while on duty;

(7) demonstrate by the evaluation that the individual is free from any emotional or mental condition that might affect the applicant's performance as a security guard;

(8) pass an oral examination approved by the commission's director of security and conducted by the organization licensee's director of security; and

(9) demonstrate by the oral examination that the applicant possesses adequate communication skills to clearly convey information and instructions to the public at a racetrack in regular and emergency situations.

(b) Each organization licensee's director of security shall submit a proposed text of the oral examination to the commission's director of security for approval each year not later than 90 days before the first day of the race meet that the organization licensee proposes to conduct.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804; implementing K.S.A. 1988 Supp. 74-8804, K.S.A. 1988 Supp. 74-8816; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-11-3 Security guard license

Each security guard shall be licensed as an occupation licensee and shall pay the fee approved by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804; implementing K.S.A. 1988 Supp. 74-8804, 74-8816; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-11-4 Basic course for security guard

(a) Each security guard applicant shall submit to the commission satisfactory proof, upon a form approved by the commission, that the applicant has successfully completed a basic course that includes at least 40 hours of instruction in the following areas:

(1) Kansas criminal statutes;

(2) Kansas parimutuel racing act, K.S.A. 1987 Supp. 74-8801 et seq., and amendments to it;

(3) criminal procedure;

(4) constitutional rights;

(5) human behavior;

(6) security operations and procedures;

(7) first aid;

(8) firearms;

(9) defense tactics;

(10) report writing;

(11) court and administrative procedures; and

(12) emergency procedures.

(b) Any security guard applicant's instruction in a subject area listed in subsection (a) may be waived by the commission if the applicant has been certified by the Kansas law enforcement training commission or if the Kansas law enforcement training commission notifies the commission that the individual is eligible for certification by the Kansas law enforcement training commission.

(c) Each organization licensee's director of security shall be responsible for the instruction of each security guard applicant in the subject areas listed in subsection (a) using resources, training personnel and standards approved by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; implementing K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3, K.S.A. 1987 Supp. 74-8816, as amended by L. 1988, Ch. 316, Sec. 4; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-11-5 Continuing education for security guard

(a) Each security guard's license shall not be renewed unless the licensee furnishes the commission proof that the licensee has successfully completed at least 20 hours of continuing education within the 12 months before the renewal date in the following areas:

(1) Physical protection;

(2) laws of arrest;

(3) constitutional law;

(4) handling of citizen complaints;

(5) firearms training;

(6) fire safety;

(7) evacuation plans; and

(8) first aid.

(b) Each organization licensee's director of security shall submit to the commission's director of security a detailed outline of the continuing education courses and a description of the instructors' credentials before any security guard may receive credits for participating in continuing education. Continuing education credits shall be granted at the rate of one hour for each 50 minutes of instruction.

(c) Continuing education courses shall be approved by the commission's director of security based on their relevance to the knowledge, skills and abilities needed for security guards. Each Kansas law enforcement training commission course shall qualify for continuing education credits.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; implementing K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; K.S.A. 1987 Supp. 74-8816, as amended by L. 1988, Ch. 316, Sec. 4; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-11-6 Standards of conduct for security guard

(a) Each security guard who carries a firearm shall comply with the provisions of K.S.A. 1988 Supp. 74-5607a and amendments to it or commission security guard training requirements. Each security guard who carries a firearm shall comply with any local ordinances that may apply.

(b) Each security guard shall not:

(1) Use unreasonable force;

(2) obstruct, hinder, interfere or prevent an investigation by the commission or any law enforcement agency; or

(3) be on the backside unless engaged in official duties during an assigned tour of duty or unless authorized by track security to enter.

(Authorized K.S.A. 1988 Supp. 74-8804; implementing K.S.A. 1988 Supp. 74-8804, 74-8816, 74-8810 (e) (2); effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended March 19, 1990.)

***** Authenticated Kansas Administrative Regulation *****

Kan. Admin. Regs. § 112-11-7 Security guard and other law enforcement cooperation

Each security guard shall cooperate fully with federal, state and local law enforcement agencies that have jurisdiction to enforce the criminal laws and regulations at racetrack facilities. Each security guard shall submit a racetrack incident report for each crime or violation of commission regulations suspected, investigated or prevented at a racetrack facility to the organization licensee's director of security. The organization licensee's director of security shall file two copies of the report with the commission, and a copy of incident reports relating to crimes with the designated local law enforcement agency within 24 hours of the incident's occurrence or discovery of its occurrence.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-11-8 Written security and safety procedures manual

(a) Each organization licensee shall file a written security and safety procedures manual with the commission for approval not later than 120 days before the first day of the race meet that the organization licensee proposes to conduct. Each security and safety procedures manual shall include all information required in K.A.R. 112-3-14 and any additional information required by the commission in article 112 of the Kansas administrative regulations.

(b) Each organization licensee shall maintain a comprehensive security and safety plan for its premises. Each security and safety plan shall be detailed in the written security and safety procedures manual.

(c) Each organization licensee's security and safety procedures manual shall be subject to periodic review and approval as determined by the commission or the commission's director of security.

(d) Each licensee's security and safety procedures manual shall be filed with the commission as confidential security information.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3 and implementing K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3, K.S.A. 1987 Supp. 74-8813, as amended by L. 1988, Ch. 319, Sec. 1; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-11-9 Physical requirements for premises security

(a) Each organization licensee shall include in its security and safety procedures manual a detailed description of the physical elements of its security plan, including a schematic floor plan.

(b) Each description shall include the location and type of:

(1) Fencing and barbed wire;

(2) security office;

(3) buildings, gates, doors, locks, hinges, ceilings, skylights, walls, windows, and furnishings;

(4) parking lots, including size;

(5) loading docks or loading zones;

(6) access roads;

(7) landscaping;

(8) exterior lighting;

(9) interior lighting;

(10) main electrical switches, fuses, or circuit breakers;

(11) emergency power system and its service area;

(12) safe or vault, or both, including rating and anchor system;

(13) parimutuel wagering equipment;

(14) utility control points;

(15) attics, basements, crawl spaces, air conditioning and heating ducts, including sizes;

(16) elevators and stairs;

(17) fire protection devices;

(18) alarm systems;

(19) surveillance systems;

(20) roof access; and

(21) trash storage.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804; implementing K.S.A. 1988 Supp. 74-8804, 74-8813; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-11-10 Identification and credentials

(a) A person shall not be admitted to a restricted area without a license issued by the commission or a visitor's pass. Visitors' passes may be issued by the organization licensee in accordance with procedures outlined in the written security and safety procedures manual. Each license or visitor's pass shall be prominently attached to an outer garment. A jockey shall not be required to display a license when riding in a race.

(b) Each license or visitor's pass shall be used only by the individual to whom the license or pass was issued. Licenses and visitors' passes shall not be loaned to any other person.

(c) This regulation shall not prevent a law enforcement officer or other public safety official when on duty or an individual authorized by the commission from entering a restricted area.

(d) The restricted areas at a racetrack facility shall be as follows:

(1) Administrative offices, if labeled a restricted area;

(2) the backside, if the racetrack facility is being used for racing or anytime during a race meet;

(3) behind the mutuels line;

(4) commission offices;

(5) the concessions work area, if the racetrack facility is being used for racing or anytime during a race meet;

(6) the delivery areas, if the racetrack facility is being used for racing or anytime during a race meet;

(7) the detention barn, if the racetrack facility is being used for racing or anytime during a race meet;

(8) the infield, if the racetrack facility is being used for racing or anytime during a race meet;

(9) the jockeys' room, if the racetrack facility is being used for racing or anytime during a race meet;

(10) the judges' stand and photo finish;

(11) the kennel compound, if the racetrack facility is being used for racing or anytime during a race meet;

(12) the lockout kennel, if the racetrack facility is being used for racing or anytime during a race meet;

(13) the owners' and trainers' lounge, if the racetrack facility is being used for racing or anytime during a race meet;

(14) the lure operator's office;

(15) the money room;

(16) the mutuels room;

(17) the paddock, if the racetrack facility is being used for racing or anytime during a race meet;

(18) the press box, if the racetrack facility is being used for racing or anytime during a race meet;

(19) the printing office, if the racetrack facility is being used for racing or anytime during a race meet;

(20) the security office and detention room;

(21) stables, if the racetrack facility is being used for racing or anytime during a race meet;

(22) the starting gate and boxes, if the racetrack facility is being used for racing or anytime during a race meet;

(23) the stewards' stand;

(24) the test areas;

(25) the totalisator;

(26) the track, if the racetrack facility is being used for racing or anytime during a race meet;

(27) the vault;

(28) veterinarian offices; and

(29) the video patrol.

(e) Each security and safety procedures manual shall describe the procedure for issuing a license or visitor's pass.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8825; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended March 19, 1990; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-11-11 Access to restricted areas

Each organization licensee shall prevent access to and shall remove or cause to be removed from its restricted areas any person who is unlicensed or who has not been issued a temporary visitor's pass or whose presence in the restricted area is unauthorized. The provisions of this regulation shall not prevent a public safety official when on duty or an individual authorized by the commission from entering a restricted area.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; effective,T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-11-12 Search and seizure

(a) Each applicant who secures an occupation license shall be deemed to consent, as a condition of the license, to a search without warrant, by the commission's security personnel or by the agents of the Kansas bureau of investigation, of:

(1) The licensee's person while the licensee is within the race track facility; and

(2) the licensee's personal property or work area that is within the race track facility.

(b) Each applicant who secures a concessionaire license shall be deemed to consent, as a condition of the license, to the conduct of a search without warrant of the licensee's work area and personal property and the persons of its owners, officers and employees by the commission's security personnel or by the agents of the Kansas bureau of investigation while the licensee is engaged in business within the race track facility.

(c) Each occupation licensee's or concessionaire licensee's consent to a search shall apply only to the commission's security personnel or agents of the Kansas bureau of investigation investigating possible criminal violations of the Kansas racing act or these racing regulations.

(d) Each agency conducting a search without warrant in compliance with this regulation shall provide the licensee searched with a post-search written notice and receipt of:

(1) Date and time of search;

(2) places and items searched; and

(3) items seized.

(e) When an agency, in compliance with this regulation, is to search an area containing racing animals, the agency shall, to the extent permitted by the circumstances, provide notice to the person responsible for the area so that this person can observe the search.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804, 74-8816, 74-8817; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-11-13 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3, and implementing K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; K.S.A. 1987 Supp. 74-8816, as amended by L. 1988, Ch. 316, Sec. 4; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; revoked, T-112-8-13-92, Aug. 13, 1992; revoked, T-112-12-10-92, Dec. 10, 1992; revoked Feb. 15, 1993.)

Kan. Admin. Regs. § 112-11-13a Human controlled substance and alcohol testing; procedure; prohibited levels; penalties; confidentiality

(a) If directed by a steward, racing judge, the executive director, or a commission employee with law enforcement powers under K.S.A. 1995 Supp. 74-8807, and upon reasonable suspicion of intoxication or impairment while actively engaged in employment, an occupation licensee shall submit to a breath or a urine test, or both. No occupation licensee shall have a blood alcohol content of .05 percent or more. No occupation licensee's urine test shall indicate the presence of any controlled substance as defined by K.S.A. 1995 Supp. 65-4101.

(b) The stewards or racing judges shall suspend a licensee whose breath test indicates a blood alcohol content of .05 percent or more in accordance with the provisions of K.S.A. 74-8816(h).

(c) The stewards or racing judges shall suspend a licensee whose urine test indicates the presence of a controlled substance in accordance with the provisions of K.S.A. 74-8816(h).

(d) The stewards or racing judges shall suspend a licensee who refuses to submit to a breath or urine test, or both, in accordance with the provisions of K.S.A. 74-8816(h).

(e) Suspensions authorized by this regulation shall not be subject to the stay provisions of K.A.R. 112-16-11.

(f) Information elicited in the process of breath or urine testing shall be treated as confidential, except as necessary for any administrative or judicial proceeding.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1995 Supp. 74-8804 and K.S.A. 74-8816; effective, T-112-8-13-92, Aug. 13, 1992; effective, T-112-12-10-92, Dec. 10, 1992; effective Feb. 15, 1993; amended Aug. 9, 1996.)

Kan. Admin. Regs. § 112-11-14 Ambulances and first aid station

(a) Each organization licensee shall provide at least one ambulance on the premises of the horse racetrack facility. Each ambulance shall be staffed and on duty during horse training periods and the scheduled horse races. Each ambulance shall have a Kansas board of emergency medical services Type I or Type II ambulance permit.

(b) Each organizational licensee shall close the track to horses unless the required ambulance service is present at the racetrack facility.

(d) For horse race meetings, each organization licensee shall provide a staffed horse ambulance each day horses are on the racetrack with the capability of:

(1) Being lowered to the ground and having an adequate means of loading a horse that is down, which may include a large piece of matting or belting that the horse can be rolled onto and a power winch capable of pulling the mat and horse into the ambulance;

(2) having large portable screens adequate to shield a horse from public view; and

(3) transporting an injured horse to a designated area for emergency treatment or euthanasia, or to a necropsy stall.

(e) When necessary, each organization licensee shall dispose of dead horses expediently.

(f) Each organization licensee shall provide a first aid station on the premises of the racetrack facility. Each first aid station shall be staffed and operational during each scheduled horse or greyhound race.

(g) Each first aid station shall be staffed by at least one emergency medical technician and be equipped with the medical equipment and supplies required in a type II ambulance.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804, 74-8813; effective, T-112-2-23-89, Feb. 23, 1989; effective June 16, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-11-15 Fire prevention

Each organization licensee shall submit plans and specifications for fire prevention to the Kansas state fire marshal and any required local authorities for approval before commencement of construction, remodeling or alteration of any location at a racetrack facility. Each organization licensee shall submit to the commission's director of security documentation of fire inspection compliance. Each organization licensee shall post in a conspicuous place the fire regulations applicable to the stable area or kennel area, or both, the fire regulations applicable to all other locations and any other notice required by the Kansas state fire marshal and any local authorities.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804; implementing K.S.A. 1987 Supp. 74-8804, 74-8813; effective, T-112-2-23-89, Feb. 23, 1989; effective June 16, 1989; amended March 19, 1990.)

Kan. Admin. Regs. § 112-11-16 Smoking in the shedrow and the kennels

(a) Smoking shall be prohibited in each shedrow, stall or feed storage area inside a barn.

(b) Smoking shall be prohibited in each kennel building.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-11-17 Emergency procedures

(a) Each organization licensee shall submit a comprehensive emergency procedures and evacuation plan as part of the security and safety procedures manual.

(b) Each emergency procedure and evacuation plan shall describe potential emergencies and the planned response to the emergency situation.

(c) Each organization licensee shall plan and execute a rehearsal of all emergency procedures and responses before the first performance of each race meet each year and at any other time required by the commission's director of security. Each rehearsal shall be approved and observed by the commission's director of security or the director of security's designee.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; implementing K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3, K.S.A. 1987 Supp. 74-8813, as amended by L. 1988, Ch. 319, Sec. 1; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-11-18 Obedience to security guards and commission representatives

Each licensee and individual at a racetrack facility shall not willfully ignore or refuse to obey or interfere with any order issued by the commission, the commission's representatives, the stewards or racing judges, any security guard of the facility or any law enforcement officer or other public safety official when the order is given in the performance of duty.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-11-19 Race track safety standards, horse race meets

(a) Unless excused by the commission for good cause, each organization licensee shall meet the following racetrack standards at horse race meets.

(1) Each racing surface shall have inner and outer rails.

(2) Each rail shall:

(A) Be constructed of a material that will bear the impact of a horse without breaking away;

(B) be maintained at a height that measures 40" from the top of the cushion to the top of the rail;

(D) have a smooth surface.

(3) Each rail post upon which inner and outer rails are mounted shall:

(A) Be set in concrete at least 6" below the race track surface and at least 24" deep; and

(B) have a continuous smooth cover over the posts.

(4) Each gate opening in a rail, including the gap, shall:

(A) Have the same appearance as the rest of the rail;

(B) be less than 10 feet in length unless it has a center support;

(D) except for "on" and "off" gates during training, be closed during racing and training; and

(E) if an "on" or "off" gate, be placed at 50-feet intervals.

(5) Each starting gate used for morning schooling shall be placed far enough from the "on" and "off" gates so that horses entering and leaving the track will not interfere with or distract horses in schooling or breaking from the gate.

(b) Each distance pole marker, electrical box, timer, starters' stand, patrol judges' stand or other obstacle or device shall be placed more than 15 feet from the back of the bottom of the rail post.

(c) Each drainage ditch or hole within 15 feet of the back of the bottom of the inside rail shall be covered with a soft material installed level with the ground surface that will not allow a horse or jockey to fall below the level of the ground surface.

(d) Each race track lighting system for nighttime racing shall have an operational emergency generator back-up system that is serviced and tested at least once each month during the race meet. The results of each test shall be documented in a written report that shall be submitted to the commission within 24 hours.

(e) Each organization licensee that has 21 or more race days per year shall have a safety committee.

(1) Each safety committee shall be made up of two representatives from the management of the organization licensee, two representatives from the jockeys riding at the track, two representatives from the "horsemen" registered in the racetrack office and at least one of the stewards.

(2) Each safety committee shall identify unsafe conditions at the racetrack facility and recommend remedies in writing to the organization licensee, the executive director and the commission.

(f) For each scheduled race, the starting gate shall be placed at an approximately equal distance from the outside rail and the inside rail.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3; implementing K.S.A. 1987 Supp. 74-8804, as amended by L. 1988, Ch. 315, Sec. 3, K.S.A. 74-8813, as amended by L. 1988, Ch. 319, Sec. 1; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989.)

Kan. Admin. Regs. § 112-11-20 Greyhound racetrack facility safety standards; specifications; prohibition of chemical use on track surface

(a) Each greyhound racetrack shall have the following:

(1) A minimum width of 20 feet with inside and outside fixed curbs at a specified slope in the outside curb;

(2) a first turn radius of 128 feet, with a second turn radius of 118 feet, and straightaways of 279.6 feet;

(3) a graduated minimum bank of 1½ inches to each 12 inches on each turn;

(4) the 5⁄16 mile starting box set back in a chute;

(5) a water pumping system providing adequate volume and pressure to uniformly hand water the entire racing surface, as needed. Automatic sprinkling systems may be used to complement, but shall not replace, the hand watering system;

(6) automatic openers with a manual backup for each starting box;

(7) one curtain placed at least 50 feet before the escape and one curtain placed 25 feet beyond the escape and placed so as not to distract greyhounds while they are racing;

(8) an inside lure with an extendible arm;

(9) a commission-approved track base that is nonabrasive to a greyhound's feet and that has adequate track drainage and proper resiliency;

(10) unless otherwise approved by the commission in open meeting and upon the commission's determination that this approval would be in the best interest of racing, a closed-fluid winterization system extending from the starting boxes to the entire width and length of the track; and

(11) a video monitoring system with a monitor in the judges' room and trainers' lounge that permits the racing judges and trainers to view the activities in the lockout kennel, the movement of the lead outs and greyhounds from the lockout kennel to the starting boxes, and the activities at the starting boxes.

(b) Unless otherwise approved in advance by the commission in open meeting and upon the commission's determination that this approval would be in the best interest of racing, chemicals shall not be applied to the racing surface of a greyhound racetrack.

(1) Soundproofing, including masonry construction, that prevents the greyhounds from being disturbed by outside noises;

(2) crates located at floor level, unless otherwise approved by the commission;

(3) crates of molded fiberglass or metal with the following:

(A) Removable wooden floors;

(B) minimum inside dimensions of 36 inches wide, 42 inches deep, and 36 inches high;

(C) closed crate doors that leave one inch of clearance at top, bottom, and latching sides that protect the greyhound's tail and feet from injury; and

(D) drop latches or comparable latches that prevent hazard to the greyhounds;

(4) a sufficient number of crates to house the greyhounds required to schedule 13 races. A second weigh-in shall be held as soon as crates are available during performances with more than 13 races;

(5) a climate control system that can maintain a temperature between 68 and 75 degrees Fahrenheit; and

(6) an area equipped with heating and air-conditioning where greyhounds and trainers may wait to weigh in.

(d) Each organization licensee shall provide a cool-out area that shall have a minimum of four water faucets with hoses and a dipping vat through which greyhounds may be walked to quickly cool them after racing. Each organization licensee shall change the water in the vat at least daily and prevent muddy residue from accumulating around the vat.

(e) Each organization licensee shall provide the following:

(1) A covered walkway from the parking area to the lockout kennel; and

(2) a covered walkway from the cool-out area to the parking area.

(f) Each kennel compound area shall have the following:

(1) Separate kennel buildings of masonry construction for each contract kennel;

(2) a location far enough away from the grandstand and racing areas that kenneled dogs are not disturbed by racetrack noises; and

(3) 24-hour security for the compound enclosure provided by the organization licensee during the official racing season.

(g) Each kennel building shall have the following:

(1) A partitioned kitchen area and crate area;

(2) minimum dimensions of 20 feet by 62 feet;

(3) at least two adjoining turnout pens meeting the following specifications for each kennel building:

(A) Is free of obstructions;

(B) measures at least 30 feet by 30 feet each;

(D) is equipped with drainage and a water faucet in each;

(E) is lighted by at least two halogen lights of at least 300 watts each in each turnout pen, one at each end; and

(F) is surrounded by a chain-link fence that is at least six feet high;

(4) a 20-foot overhang that extends the length of the building;

(5) at least 12 inches of sand in turnout pens, which shall be removed and replaced by the organization licensee with new sand at least once every 12 months of racing;

(6) a gate in each turnout pen through which a vehicle may be driven to remove the sand and deposit new sand;

(7) a fenced safety pen eight feet wide, located between the parking area and turnout pens and equipped with gates, to facilitate the moving of greyhounds directly between the parking area and the turnout pens;

(8) a maximum of 60 crates or, with the prior approval of the animal health officer, a maximum of 72 crates;

(9) metal crates with compartments that are at least 36 inches wide, 42 inches deep, and 36 inches high and equipped with drop latches and casters;

(10) not more than 72 greyhounds housed in each kennel building with not more than one greyhound in each crate, unless the racing judges have approved a specific request otherwise;

(11) a kitchen area equipped with a hot water heater with a minimum capacity of 20 gallons, a deep sink of durable construction with a drain board, adequate shelving and cabinet space, and a shower and commode in an enclosed area;

(12) one floor drain in each crate area and one floor drain in each kitchen area;

(13) a climate control system that is capable of maintaining a temperature between 68 and 75 degrees Fahrenheit;

(14) smoke and temperature alarms in each kennel area connected to the compound security office and capable of alerting security of emergency conditions;

(15) emergency backup power adequate to provide continuous ventilation that will protect the greyhounds if a power failure occurs at any time during a racing season scheduled in the months of May through September;

(16) a fresh air ventilation system or at least four windows of approximately four square feet each that are equipped with screens and can be opened;

(17) lighting to adequately illuminate all areas inside the kennel;

(18) adequate space within the kennel building for each contract kennel to place a dog-walking machine and adequate floor space within the crate area for a hydrotherapy vat; and

(19) an on-line hookup for a telephone and a video monitoring system that permits the trainers to watch the races.

(h) Unless otherwise approved by the commission in open meeting and upon the commission's determination that this approval would be in the best interest of racing, each organization licensee shall provide sprint paths as follows:

(1) One sprint path measuring at least 16 feet by 350 feet, equipped with a common center fence, and heated by a closed-fluid winterization system extending the length and width of the sprint path;

(2) two open sprint paths measuring at least 20 feet by 500 feet;

(3) one all-weather surface road sufficient to operate a vehicle adjacent to each sprint path; and

(4) a sprint path surface, to which chemicals shall not be applied.

(i) Each sprint path shall be located so that sprint activity does not disturb the greyhounds in the kennel compound area. Each sprint path shall be available for use at all times, except during racing hours, and shall be equipped with side gates through which greyhounds can enter the path and a gate through which a kennel vehicle can be driven.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8825; effective July 23, 1989; amended March 19, 1990; amended Aug. 9, 1996; amended June 22, 2001; amended March 14, 2003; amended Jan. 6, 2006; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-11-21 Prohibited acts

(a) When on the grounds of a racetrack facility, a person shall not:

(1) violate a federal, state or local criminal or civil law;

(2) unless authorized by the commission, possess a firearm or other dangerous weapon;

(3) damage or destroy property of the racetrack facility or adjoining facilities;

(4) smoke in nonsmoking areas designated by the commission;

(5) unless authorized by the stewards or racing judges, communicate or attempt to communicate with a jockey or driver during racing hours, or attempt to gain entrance to the jockeys' and drivers' quarters at any time;

(6) fail to secure an occupation license if required for performance of duties at the racetrack facility;

(7) employ unlicensed personnel;

(8) alter or forge a prescription for medication for a racing animal;

(9) mar or alter any identification mark on any racing animal;

(10) unless authorized by the stewards or racing judges, use any radio transmitter or other transmitting device at a racetrack facility during a race meet;

(11) unless authorized by the commission, transmit or receive or attempt to transmit or receive wagering information through the use of a communication device; or

(12) participate in a race meet while suspended by the official racing body of any racing jurisdiction.

(b) When on the grounds of any racetrack facility where the licensee is employed, the following occupation licensees shall not wager or cause anyone to wager on their behalf at any time:

(1) general manager;

(2) executive director;

(3) director of mutuels;

(4) director of racing;

(5) racing secretary;

(6) lead out;

(7) starter;

(8) paddock judge;

(9) clerk of scales;

(10) clocker;

(11) photo finish operator;

(12) identifier;

(13) lure operator;

(14) brakeman;

(15) horsemen's bookkeeper;

(16) chartwriter;

(17) placing judge;

(18) kennel master;

(19) patrol judge; and

(20) assistants to any of these positions.

(c) When on the grounds of any racetrack facility where the licensee is employed, the following occupation licensees shall not wager or cause anyone to wager on their behalf while on duty:

(1) jockey;

(2) jockey room attendant;

(3) mutuel employee;

(4) outrider;

(5) pony person;

(6) track superintendent;

(7) testing technician; and

(8) assistants to any of these positions.

(d) An occupation licensee shall not display the occupation license while wagering at any racetrack facility.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804; implementing K.S.A. 1993 Supp. 74-8804 and 74-8810; effective, T-112-2-23-89, Feb. 23, 1989; effective June 19, 1989; amended, T-112-2-15-91, Feb. 15, 1991; amended June 10, 1991; amended Sept. 6, 1994.)

Article 12 Kansas Horse Breeding Development Fund

Kan. Admin. Regs. § 112-12-1 Definitions

(a) "Kansas-bred horse" means a horse that meets either of these requirements:

(1) is foaled in Kansas and registered with the official registering agency to participate in the Kansas-bred racing or breeding program; or

(2) was domiciled in Kansas before December 31, 1989 and registered with the official registering agency to participate in the Kansas-bred racing or breeding program.

(b) "Kansas-certified horse" means a mare or stallion that is Kansas-bred or Kansas-domiciled and that is certified by the official registering agency to participate in the Kansas-bred breeding program.

(c) "Kansas-domiciled horse" means a horse that is foaled out-of-state and brought into the state of Kansas and that is registered and certified with the official registering agency to participate in the Kansas-bred breeding program.

(d) "Official registering agency" means the organization with which the commission has contracted for the registration of horses and the distribution of the Kansas horse breeding development fund in accordance with K.S.A. 74-8830(b) and (c).

(e) This regulation shall take effect on and after January 1, 1998.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804; implementing K.S.A. 74-8830; effective March 1, 1993; amended Jan. 1, 1998.)

Kan. Admin. Regs. § 112-12-2 Kansas horse breeding development fund, stallion eligibility certificate

(a) Each person who intends to stand a stallion for service in Kansas shall file a written application for certification before the stallion is to stand for service if the stallion's foals are to be registered as Kansas-bred horses.

(b) The official registering agency may issue a certificate of eligibility if either of these conditions is met.

(1) The stallion is registered as a Kansas-bred horse.

(2) The stallion is registered as a Kansas-domiciled horse.

(c) Each application shall be completed on a form approved by the commission that shall include the following information:

(1) the name of the stallion;

(2) the name, address, zip code, and tax identification number or social security number of each owner of the stallion;

(3) the location where the stallion will stand for service during the calendar year for which the application is made; and

(4) a statement that the stallion will stand for service within the state of Kansas and will not stand for service anywhere outside the state of Kansas during the calendar year in which the stallion's offspring are conceived.

(d) Each application for an initial certificate of eligibility shall include the following information:

(1) evidence of the right of ownership, including bills of sale, contracts, or other documents that demonstrate proof of ownership and reflect each agreement about breeding rights, repurchase agreements, and any other concession;

(2) an application for Kansas-bred or Kansas-domiciled registration pursuant to K.A.R. 112-12-6 or K.A.R. 112-12-7; and

(3) the official breed certificate issued by the national breed association pursuant to K.A.R. 112-7-6.

(e) Each stallion certified as required by the provisions of this regulation shall be available for inspection at all times by representatives of the official registering agency.

(f) The owner, agent, or lessee shall notify the official registering agency if a stallion certified as required by the provisions of this regulation leaves the state of Kansas during the year for which the stallion is certified in the Kansas-bred program.

(g) Any foal from a mare bred to a certified stallion before revocation of an eligibility certificate may be registered as a Kansas-bred horse under the provisions of K.A.R. 112-12-5.

(h) If the majority ownership changes and the new owner desires to certify the stallion for eligibility in the Kansas-bred program, the new owner shall, within 30 days of the date of the sale, submit an application for a stallion eligibility certificate accompanied by a copy of the proof of sale or other document and observe the requirements of these regulations. Certification under this subsection (h) shall be effective from the date of sale after complying with subsection (h).

(i) This regulation shall take effect on and after January 1, 1998.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804; implementing K.S.A. 1996 Supp. 74-8829 and K.S.A. 74-8830; effective, T-112-2-23-89, Feb. 23, 1989; effective, T-112-6-22-89, June 22, 1989; effective Sept. 4, 1989; amended March 19, 1990; amended March 1, 1993; amended Feb. 13, 1995; amended Jan. 1, 1998.)

Kan. Admin. Regs. § 112-12-3 Revoked

Publisher status: INEFFECTIVE (not currently effective).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3; implementing K.S.A. 74-8830; effective, T-112-2-23-89, Feb. 23, 1989; effective, T-112-6-22-89, June 22, 1989; effective Sept. 4, 1989; amended March 1, 1993; revoked Feb. 13, 1995.)

Kan. Admin. Regs. § 112-12-4 Kansas horse breeding development fund, mare eligibility certificate

(a) Each person who intends to breed, or foal, or both, a mare certified in the Kansas-bred program shall file a written application for certification before foaling.

(b) The official registering agency may issue a certificate of eligibility if these conditions are met:

(1) the mare is determined to be a Kansas-bred mare as required by K.A.R. 112-12-12; and

(2)(A) the mare is registered as a Kansas-bred horse; or

(B) the mare is registered as a Kansas-domiciled horse.

(c) Each application shall be completed on a form approved by the commission and shall include the following information:

(1) the name of the mare; and

(2) the name, address, zip code, and tax identification number or social security number of each owner of the mare.

(d) Each application for an initial breeding certification shall be accompanied by the following applicable documentation:

(2) the application for Kansas-bred or Kansas-domiciled registration as provided in K.A.R. 112-12-6 or K.A.R. 112-12-7; and

(3) the official breed registration certificate as defined by K.A.R. 112-7-6.

(e) Each mare certified as required by this regulation shall be available for inspection at all times by representatives of the official registering agency.

(f) If the majority ownership of a mare certified with the official registering agency changes, the official registering agency shall revoke the eligibility certificate.

(g) The new owner shall recertify such mare in order for that mare certification and breed award status to be uninterrupted, and once a mare is certified, the mare shall remain certified until the mare dies or its certification is revoked for ownership changes.

(h) A mare's offspring shall be eligible for registration in the Kansas-bred program if the mare is in the state of Kansas at the time of foaling and all rules and regulations have been met.

(i) This regulation shall take effect on and after January 1, 1998.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804; implementing K.S.A. 1996 Supp. 74-8829 and K.S.A. 74-8830; effective, T-112-2-23-89, Feb. 23, 1989; effective, T-112-6-22-89, June 22, 1989; effective Sept. 4, 1989; amended March 19, 1990; amended March 1, 1993; amended Feb. 13, 1995; amended Jan. 1, 1998.)

Kan. Admin. Regs. § 112-12-5 Classes of Kansas-bred horses

In order to be eligible to be registered as Kansas-bred, a foal shall be foaled in Kansas.

This regulation shall take effect on and after January 1, 1998.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804; implementing K.S.A. 74-8830; effective, T-112-2-23-89, Feb. 23, 1989; effective, T-112-6-22-89, June 22, 1989; effective Sept. 4, 1989; amended March 1, 1993; amended Feb. 13, 1995; amended Jan. 1, 1998.)

Kan. Admin. Regs. § 112-12-6 Kansas horse breeding development fund, registration of Kansas-bred horses

(a) Each owner, agent, or lessee who intends to register a foal as a Kansas-bred foal shall file a verified application for registration with the official registering agency by December 31 of the year of foaling to avoid monetary penalty to be set by the commission.

(b) Each applicant shall completely answer all inquiries on the application form approved by the commission, including the following:

(1) the name of the dam and her Kansas registration status;

(2) the name of the sire and his Kansas registration status;

(3) the date and location where the foal was dropped;

(4) the color, sex, and markings of the foal; and

(5) the name, address, zip code, and tax identification number or social security number of each owner of the foal.

(c) Each official breed registration certificate as defined in K.A.R. 112-7-6 shall be delivered to the official registering agency before the foal will be registered as Kansas-bred.

(d) If the foal meets all of the requirements for registration, the official registering agency shall affix its official seal, including the registration number for the foal, on the face of the official breed registration certificate as defined in K.A.R. 112-7-6 and return the certificate to the owner by certified mail within 30 days of the date of official registration.

(e) Each foal registered as required by this regulation shall be available at any time for inspection by representatives of the official registering agency.

(f) This regulation shall take effect on and after January 1, 1998.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804; implementing K.S.A. 74-8830; effective, T-112-2-23-89, Feb. 23, 1989; effective, T-112-6-22-89, June 22, 1989; effective Sept. 4, 1989; amended March 1, 1993; amended Feb. 13, 1995; amended Jan. 1, 1998.)

Kan. Admin. Regs. § 112-12-7 Registration of Kansas-domiciled horses

(a) Any owner, agent, or lessee of a horse that does not qualify as Kansas-bred as outlined by these regulations may obtain a Kansas-domiciled registration if the official registering agency determines, under guidelines approved by the Kansas racing commission, that the horse may enhance the quality of Kansas-bred breeding stock.

(b) Each Kansas-domiciled horse shall be domiciled within Kansas before application for registration.

(1) provide verified answers to inquiries on an application approved by the commission; and

(2) except as stated in this regulation, comply with these racing regulations.

(d) This regulation shall take effect on and after January 1, 1998.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804; implementing K.S.A. 74-8830; effective, T-112-2-23-89, Feb. 23, 1989; effective, T-112-6-22-89, June 22, 1989; effective Sept. 4, 1989; amended March 1, 1993; amended Feb. 13, 1995; amended Jan. 1, 1998.)

Kan. Admin. Regs. § 112-12-8 Kansas-certified stallion awards

(a) Any owner, agent, or lessee of a certified Kansas-bred or certified Kansas-domiciled stallion may be eligible to participate in the Kansas-certified stallion awards if both of these criteria are met.

(1) Any foal of the Kansas-certified stallion is registered as a Kansas-bred horse with the official registering agency.

(2) The foal of the Kansas-certified stallion wins, places, or shows in a race that has been designated for the award.

(b) Each Kansas-certified stallion award shall be paid as follows.

(1) For registered foals conceived before December 31, 1992, the award shall be paid to the stallion's owner, agent, or lessee of record at the time the foal was conceived.

(2) For registered foals conceived after December 31, 1992, the award shall be paid to the stallion's owner, agent, or lessee of record at the time the foal was conceived only if the Kansas-certified stallion was certified as eligible in accordance with K.A.R. 112-12-2 before the foal was conceived.

(3) A change of ownership of a stallion, by itself, shall not preclude the stallion from receiving breed awards.

(c) The official registering agency shall solicit information from the various breed owners to aid it in recommending races, qualifications for races, and amounts and types of awards to the commission.

(d) Races, qualifications for races, and amounts and types of awards shall be designated by the commission.

(e) This regulation shall take effect on and after January 1, 1998.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804; implementing K.S.A. 1996 Supp. 74-8829 and K.S.A. 74-8830; effective, T-112-2-23-89, Feb. 23, 1989; effective, T-112-6-22-89, June 22, 1989; effective Sept. 4, 1989; amended March 1, 1993; amended Feb. 13, 1995; amended Jan. 1, 1998.)

Kan. Admin. Regs. § 112-12-9 Kansas-certified mare awards

(a) Any owner, agent, or lessee of a certified Kansas-bred or certified Kansas-domiciled mare may be eligible to participate in the Kansas-certified mare awards if both of these criteria are met.

(1) The foal of the Kansas-certified mare is registered as a Kansas-bred horse with the official registering agency as set forth in K.A.R. 112-12-1(b).

(2) The Kansas-bred foal of the Kansas-certified mare wins, places, or shows in a race in Kansas that has been designated for the award.

(b) Kansas-certified mare awards shall be paid as follows.

(1) Each Kansas-certified thoroughbred mare award shall be paid only to the mare's owner, agent, or lessee of record at the time of foaling if the mare was certified in the breeding program before foaling. Each Kansas-certified quarter-horse mare award shall be paid only to the mare's breeder of record or the first owner putting the mare in the Kansas-bred program if the mare was certified in the breeding program before foaling.

(2) A change of ownership of mare, by itself, shall not preclude the mare from breed awards.

(d) Races, qualifications for races, and amounts and types of awards shall be designated by the commission.

(e) This regulation shall take effect on and after January 1, 1998.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804; implementing K.S.A. 1996 Supp. 74-8829 and K.S.A. 74-8830; effective, T-112-2-23-89, Feb. 23, 1989; effective, T-112-6-22-89, June 22, 1989; effective Sept. 4, 1989; amended March 1, 1993; amended Feb. 13, 1995; amended March 6, 1998.)

Kan. Admin. Regs. § 112-12-10 Kansas-bred or Kansas-foaled races

(a) Each organization licensee shall in good faith offer at least one race limited to Kansas-bred or Kansas-foaled horses per day. Kansas-bred horses shall be preferred entries. Awards and monies shall be paid only to the owners of Kansas-bred horses. If there are five Kansas-bred entries, a race for only Kansas-bred horses shall be run. If there are fewer than five Kansas-bred entries and there are Kansas-foaled entries, a Kansas-bred and Kansas-foaled race shall be run.

(b) The organization licensee shall file with the commission and the official registering agency two official programs, an affidavit verifying that the registry regulations have been followed, and other requested information, including the following:

(1) The value of the purses offered by the organization licensee;

(2) the name and address of each owner who is to share in the total purses and awards and the amount in which each owner is to share; and

(3) any other information that may be required by the commission or registry.

(c) Each program and affidavit shall be filed with the commission and the official registering agency within seven days after the date of the Kansas-bred or Kansas-foaled race conducted by the organization licensee.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2001 Supp. 74-8804; implementing K.S.A. 74-8812 and 74-8830; effective, T-112-2-23-89, Feb. 23, 1989; amended, T-112-6-22-89, June 22, 1989; effective Sept. 4, 1989; amended March 1, 1993; amended Jan. 18, 1994; amended Aug. 25, 1995; amended Jan. 1, 1998; amended Jan. 31, 2003.)

Kan. Admin. Regs. § 112-12-11 Kansas horse breeding development fund, registration and certificate of eligibility fees

(a) Each owner or agent who registers a horse to participate in the Kansas horse breeding development fund or requests the issuance of an eligibility certificate shall pay a one-time registration and certificate-of-eligibility fee to the official registering agency upon initial application to the official registering agency.

(b) The official registering agency shall submit a schedule of fees for registrations, certificates of eligibility and transfers to the commission office no later than October 1 of each calendar year.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; implementing K.S.A. 1991 Supp. 74-8830; effective, T-112-2-23-89, Feb. 23, 1989; effective, T-112-6-22-89, June 22, 1989; effective Sept. 4, 1989; amended March 1, 1993.)

Kan. Admin. Regs. § 112-12-12 Registration of horses dropped before January 1, 1990

(a) Any horse dropped before January 1, 1990 may be registered as a Kansas-bred horse if the horse:

(1) was domiciled in Kansas before January 1, 1990; and

(2) is registered with a national breed association.

(b) Each application shall be completed on a form approved by the commission that shall include the following information:

(1) the name of the horse;

(2) the date the horse was dropped;

(3) the color, sex and marking of the horse; and

(4) the name, address, zip code and tax identification number or social security number of each owner of the horse.

(1) evidence of the rights of ownership, including bills of sale, contracts or other documents that demonstrate proof of ownership and reflect all agreements about breeding rights, repurchase and all other concession; and

(2) the official breed registration certificate issued by the national breed association.

(d) Each horse registered under the requirements of this regulation shall be available at any time for inspection by representatives of the official registering agency.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804 as amended by L. 1994, Ch. 146, Sec. 3; implementing K.S.A. 74-8830; effective, T-112-2-23-89, Feb. 23, 1989; effective, T-112-6-22-89, June 22, 1989; effective Sept. 4, 1989; amended March 25, 1991; amended Feb. 13, 1995.)

Kan. Admin. Regs. § 112-12-13 Administration of the Kansas horse breeding development fund by the official registering agency

(a) The official registering agency may deny the application for registration of a Kansas-bred or Kansas-domiciled horse or certificate of eligibility of a stallion or a mare if either of these conditions is met.

(1) Information has been omitted, altered, or falsified within the application.

(2) Documentation required by these regulations is not provided or is altered or falsified.

(b) The official registering agency may immediately revoke the eligibility certificate of any stallion if the stallion stands for service outside the state of Kansas during the calendar year when the stallion is certified to stand for service in the state of Kansas.

(c) The official registering agency may deny or revoke the registration of any foal if the owner of the foal's sire or dam fails to comply with any of the provisions of K.A.R. 112-12-2, 112-12-4, or 112-12-5.

(d) This regulation shall take effect on and after January 1, 1998.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804; implementing K.S.A. 1996 Supp. 74-8829 and K.S.A. 74-8830; effective, T-112-2-23-89, Feb. 23, 1989; effective, T-112-6-22-89, June 22, 1989; effective Sept. 4, 1989; amended Feb. 13, 1995; amended Jan. 1, 1998.)

Kan. Admin. Regs. § 112-12-14 Registration of Arabian, Appaloosa, Paint, and Standardbred horses

(a) Any Arabian, Appaloosa, Paint, or Standardbred horse may be registered into the Kansas-bred program if the horse is registered with the national breed association.

(b) Each person who intends to register a horse under this regulation shall meet these requirements:

(1) file an application for registration with the official registering agency on forms approved by the commission;

(2) file with the official registering agency evidence of ownership, including the following:

(A) bills of sale;

(B) the official breed registration certificate issued by the national breed association; and

(C) contracts or other documents that demonstrate proof of ownership and reflect all agreements concerning breeding rights, repurchase, and any other terms and conditions;

(3) pay the $50.00 fee for registering each horse under this regulation; and

(4) make each horse registered under this regulation available at any reasonable time for inspection by representatives of the official registering agency.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804 and implementing K.S.A. 74-8830; effective, T-112-6-16-94, June 16, 1994; effective Sept. 6, 1994; amended Dec. 22, 1995; amended Jan. 1, 1998.)

Kan. Admin. Regs. § 112-12-15 Live horse racing purse supplement fund

(a) The balance of the money credited to the live horse racing purse supplement fund that is subject to distribution pursuant to K.S.A. 74-8767(a)(3), and amendments thereto, shall be apportioned by the commission to purses for the various horse breeds according to the following formula:

(1) One-third based on the average percentage of each breed's Kansas-bred horse starters at Kansas racetracks for the previous three calendar years;

(2) one-third based on the average percentage of each breed's Kansas-certified horses for the previous three calendar years; and

(3) one-third based on average percentage of each breed's non-Kansas-bred starters at Kansas racetracks for the previous three calendar years.

(b) The official registering agency pursuant to K.S.A. 74-8830, and amendments thereto, shall submit a recommendation to the commission for approval of the amount of all proposed payments pursuant to K.S.A. 74-8767(a)(3), and amendments thereto, based on the contribution to the Kansas horse racing and breeding industries and recommendations by each respective breed group. The commission's staff may also submit a recommendation to the commission under this subsection.

(c) The proposed amount of the distribution shall be submitted to the commission for approval no later than March 1 of each distribution year.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8767 and 74-8830; effective June 12, 2009.)

Article 13 Kansas Whelped Program

Kan. Admin. Regs. § 112-13-2 Kansas-whelped program, certification

(a) Each person who intends to register a greyhound as a Kansas-whelped greyhound shall meet the following requirements:

(1) Within 45 days of the date each female greyhound is bred, submit a copy of the national greyhound association breeding acknowledgment and the following information to the official registering agency on a form approved by the commission:

(A) The present location of the female bred;

(B) the name and address, including the zip code, of each owner or lessee of the female and of each person who will be responsible for the pregnant female or the puppies during the first six months of their lives, or both; and

(2) if the identity of the person or persons responsible for the pregnant female or the puppies, or both, changes, submit the new name and address, including the zip code, of the person or persons responsible to the official registering agency within 10 days of the change. The present location of the pregnant female or the puppies shall be reported at the same time; and

(3) notify the official registering agency within 80 days of the breeding whether the female greyhound has whelped or missed.

(b) In an emergency, the executive committee of the official registering agency may grant one extension of the deadline for submission of the Kansas greyhound registry breeding acknowledgment and one extension of the deadline for submission of the Kansas greyhound registry whelping report.

(c) Each female greyhound specified in subsection (a) shall be owned or leased by a Kansas-qualified breeder within 45 days of the breeding date. To be a Kansas-qualified breeder, the person owning or leasing the female greyhound shall have been a resident of the state of Kansas for a minimum of two years before breeding. Each pup shall be whelped and raised for the first six months of life in the state of Kansas. Kansas-whelped status shall remain with the greyhound and shall transfer to all subsequent owners of the greyhound.

(d) Each person who intends to register a greyhound as a Kansas-whelped greyhound shall submit the original individual registration application from the national greyhound association to the official registering agency after the greyhound is six months old. If the official registering agency certifies that the greyhound is a Kansas-whelped greyhound, the agency shall meet the following requirements:

(1) Collect the certification fee and affix the agency's official seal to the face of the original individual registration application; and

(2) return the registration application to the applicant.

(e) When the applicant registers each individual greyhound, the applicant shall submit the certified original individual registration application to the national greyhound association.

(f) Upon receiving the certified original individual registration application, the national greyhound association shall issue a certificate of registration to the official registering agency.

(g) The official registering agency shall process the certificate in accordance with procedures approved by the commission and shall issue the certificate of registration to the applicant within 30 days of its receipt.

(h) If the original individual registration application is lost or destroyed, each duplicate shall be recertified by the official registering agency.

(i) If information is altered or falsified on any registration or certification document, the official registering agency shall cancel the Kansas-whelped greyhound certification.

(j) Each schedule of fees for certification, membership, and penalties shall be established by the official registering agency and approved by the commission at least annually.

(k) The official registering agency shall file an annual report with the commission on or before July 1 each calendar year and any periodic reports that the commission may request.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8832; effective, T-112-1-19-89, Jan. 19, 1989; effective April 10, 1989; amended March 25, 1991; amended Feb. 6, 2004.)

Kan. Admin. Regs. § 112-13-3 Kansas whelped program, resident racing program

(a) Each kennel owner who contracts to provide greyhounds for racing at a Kansas racetrack facility shall maintain a 20 percent population of Kansas-whelped greyhounds in the contract kennel.

(b) Any racetrack facility may provide a public kennel to accommodate owners or lessees of Kansas-whelped greyhounds that are not otherwise the subject of a kennel contract with the race track under the following conditions:

(1) Each greyhound kenneled in a public kennel shall be a Kansas-whelped greyhound;

(2) each owner or lessee of each greyhound kenneled in a public kennel shall be a Kansas resident as defined by K.A.R. 112-13-1;

(3) each salary, fee or compensation of any nature to be paid each public kennel trainer shall be approved by the commission at least 30 days before the first race in which a public kennel greyhound is entered; and

(4) each public kennel facility, each public kennel operation and each individual and greyhound at a public kennel shall be governed by article 112 of the Kansas administrative regulations.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804, 74-8833; implementing K.S.A. 1988 Supp. 74-8833; effective, T-112-3-31-89, March 31, 1989; effective June 26, 1989.)

Kan. Admin. Regs. § 112-13-4 Greyhound breakage distribution for open stakes

(a) Each organization licensee conducting greyhound races shall establish a distinct and separate accounting titled "(organization licensee's name) breakage open stakes accounting."

(b) Each organization licensee shall submit a breakage-open-stakes-accounting report to the commission on the first day of each month. Each monthly report shall contain the following:

(1) the beginning balance;

(2) the funds added by each performance during the month;

(3) each payout during the month; and

(4) the ending balance for the month.

(c) Each organization licensee shall use the funds identified in the breakage open stakes accounting for specific stakes races. Each stakes race shall be approved by the commission prior to the date the race is opened.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-8804; implementing K.S.A. 1989 Supp. 74-8821; effective March 25, 1991.)

Kan. Admin. Regs. § 112-13-5 Greyhound breakage distribution for purses

(a) Each organization licensee conducting greyhound races shall create a distinct and separate accounting titled "(organization licensee's name) breakage purse supplement accounting."

(b) Each organization licensee shall submit a breakage-purse-supplement-accounting report to the commission on the first day of each month. Each monthly report shall contain the following:

(1) the beginning balance;

(2) the funds added by each performance during the month;

(3) each payout during the month;

(4) the ending balance for the month; and

(5) a detail of the ending balance.

(c) Each organization licensee shall distribute funds identified in the breakage purse supplement accounting based on the number of points each Kansas-whelped greyhound has accumulated during the previous calendar month. Points shall be awarded to Kansas-whelped greyhounds recording a win in each race as follows:

(1) Feature race—10 points;

(2) Grade A race—8 points;

(3) Grade B race—6 points;

(4) Grade C race—4 points;

(5) Grade D race—3 points;

(6) Maiden race—2 points; and

(7) Grade E race—1 point.

(d) Each organization licensee shall total the points won by each Kansas-whelped greyhound during each calendar month. All points won by all Kansas-whelped greyhounds shall be added together and 50 percent of the calendar month's breakage divided by this sum of points to determine the dollar value per point.

(e) Each organization licensee shall pay an amount equal to the number of points accumulated by each Kansas-whelped greyhound for the calendar month multiplied by the dollar value per point for the calendar month.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-8821; implementing K.S.A. 1989 Supp. 74-8821; effective March 25, 1991.)

Kan. Admin. Regs. § 112-13-6 Kansas greyhound breeding development fund

(a) The balance of the money credited to the live greyhound racing purse supplement fund under K.S.A. 74-8747(a)(3), and amendments thereto, shall be apportioned as follows, unless otherwise specified:

(1) 80 percent to the Kansas-bred purse supplements to be paid monthly to owners of Kansas-bred greyhounds, with the registering agency specifying the following:

(A) A procedure for calculating purse supplement payments to owners of Kansas-bred greyhounds on a point basis, as specified in K.A.R. 112-13-5(c), ensuring that payments will be made each month during a fiscal year; and

(B) a procedure for issuing Kansas-bred purse supplements on a monthly basis; and

(2) 20 percent to supplement stakes races at all Kansas racetrack facilities offering greyhound races and to create special stakes races designed to promote and develop the Kansas greyhound industry, with the registering agency specifying the following:

(A) A procedure for the distribution of funds to supplement stakes races at all Kansas racetrack facilities offering greyhound racing; and

(B) a procedure for the administration of special stakes races created to promote and develop the Kansas greyhound industry, including plans for promotion and operation of the races in a manner that includes opportunities for the participation of all racetrack facilities in Kansas.

(b) The official greyhound breed registering agency shall submit the amount of all proposed payments specified in subsection (a) to the commission for approval.

(c) The proposed amount of the distribution shall be submitted to the commission for approval no later than March 1 of each distribution year based on the recommendations of the registering agency.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8767; implementing K.S.A. 2007 Supp. 74-8767(b) and 74-8831; effective April 17, 2009.)

Article 14 Harness Racing Rules

Kan. Admin. Regs. § 112-14-2 Duties of a harness race starter

(a) The licensed starter shall be in the starting car 15 minutes before the first race.

(b) After one or two preliminary warming up scores, the licensed starter shall notify each driver to come to the starting gate. During or before the parade, the licensed starter shall inform each driver of the number of scores permitted.

(d) The licensed starter shall notify the stewards of any violations of these racing regulations by any driver. Any driver violating these rules of racing may be set down, fined or suspended.

(e) The horses shall be brought to the starting gate no nearer than one-eighth of a mile before the start, unless otherwise required by track construction or design.

(f) The licensed starter shall allow sufficient time to increase the speed of the gate gradually; the following minimum speeds shall be maintained:

(1) For the first ⅛ mile, not less than 11 miles per hour; and

(2) for the next 1⁄16 of a mile not less than 18 miles per hour.

(3) for the first 3⁄16 mile or to the starting point, whichever is less, the speed shall be gradually increased until the mobile starting gate pulls away from the field of horses.

(g) On one-mile tracks, each horse shall be brought to the starting gate at the head of the stretch and the relative speeds in subsection (f) shall be maintained.

(h) The starting point shall be point-marked on the inside rail not less than 150 feet from the first turn. The licensed starter shall give the word "go" at the starting point.

(i) There shall be no decrease in speed of the mobile gate, except in the case of a recall.

(j) In the case of a recall, the licensed starter shall leave the wings of the gate extended, and wherever possible, gradually slow the speed of the mobile gate to assist in stopping the field of horses. In an emergency, the licensed starter shall determine whether to close the wings of the gate.

(k) The licensed starter shall have control of the horses from the formation of the parade until the licensed starter gives the word "go." Each horse, regardless of its position or an accident, shall be a starter when the licensed starter gives the word "go." Each horse shall complete the course except in case of an accident, broken equipment, or any other reason which, in the opinion of the stewards or the licensed starter makes it impossible to complete the course.

(l) There shall be no recall for a horse that breaks from its gait.

(m) Each licensed starter shall sound a recall when:

(1) A horse scores ahead of the gate;

(2) there is interference;

(3) there is broken equipment;

(4) there is a malfunction of the starting gate; or

(5) a horse falls before the word "go" is given.

(n) A mechanical loudspeaker shall be used only for giving instructions to drivers. The volume shall be no higher than necessary to carry the voice of the licensed starter to the drivers.

(o) Any horse may be held on the backstretch not more than two minutes awaiting post time, except when delayed by an emergency.

(p) If in the opinion of the stewards or the starter, a horse is unmanageable or liable to cause accidents or injury to any other horse or to any driver, the horse may be sent to the barn.

(q) The arms of each starting gate shall be provided with a screen or a shield in front of the position for each horse, and each arm shall be perpendicular to the rail.

(r) The licensed starter shall check the starting gate for malfunctions before commencing any meeting, and shall practice the procedure to be followed in the event of a malfunction. Both the licensed starter and the driver of the car shall know and practice emergency procedures, and the starter shall be responsible for training drivers in emergency procedures.

(s) Each horse winning a heat shall take the pole or inside position in the succeeding heat, unless otherwise specified in the published conditions, and all others shall take their positions in the order they were placed in the last heat. If two or more horses run a dead heat, their positions shall be determined by lot.

(t) Only the licensed starter, the starter's driver, and a patrol judge shall be allowed to ride in the starting gate, unless otherwise directed by the commission.

(u) If there are two tiers of horses, the withdrawing of a horse that has drawn or earned a position in the front tier shall not affect the position of the horses that have drawn or earned positions in the second tier. If a horse is withdrawn from any tier, the horses on the outside shall move toward the pole position. If a horse has drawn a post position in the second tier, the driver of the horse may score out behind any horse in the first tier so long as the driver does not interfere with another trailing horse or deprive another trailing horse of a drawn position.

(v) If horses are started without a gate, the licensed starter shall have control of the horses from the formation of the parade until the starter gives the word "go." The word "go" shall be given at the wire or other point of the start of the race. The licensed starter shall be located at the wire or other point of the start of the race.

(1) No driver shall cause unnecessary delay after the horses are called to parade.

(2) After two preliminary warming up scores, the licensed starter shall notify the drivers to form in order of post positions. The driver of any horse refusing or failing to follow the instructions of the licensed starter as to the order of post positions, or scoring ahead of the pole horse may be set down for the heat in which the offense occurs.

(3) If a driver is set down, the substitute shall be permitted to score the horse once.

(4) A horse delaying the race may be started regardless of its position or gait and there shall be no recall on account of a fractious horse.

(5) If the word is not given, each horse in the race shall immediately turn at the tap of a bell or other signal, and jog back to their parade positions for a fresh start. No recall shall be made after the starting word has been given.

(w) Each driver shall obey the starter's instructions as to:

(1) Rushing ahead of the inside or outside wing of the gate;

(2) coming to the starting gate out of position;

(3) crossing over before reaching the starting point;

(4) interference with another driver during the start;

(5) laying back or failing to come up into position;

(6) actions causing a delay in the start; and

(7) every other matter relating to a fair start.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804(p); effective, T-112-7-27-89, July 27, 1989; effective Sept. 18, 1989.)

Kan. Admin. Regs. § 112-14-3 Drivers' meeting

(a) Before the first race at any harness meet is run, each official and each driver shall meet at a time and place designated by the chief steward to discuss the rules. Each driver shall be notified of the time and place of this meeting in writing. The notice shall be delivered to the stable of the driver at least one day before the meeting.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804(p); effective, T-112-7-27-89, July 27, 1989; effective Sept. 18, 1989.)

Kan. Admin. Regs. § 112-14-4 Harness track traffic procedure

Each horse meeting another horse on the track shall pass to the left.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804(p); effective, T-112-7-27-89, July 27, 1989; effective Sept. 18, 1989.)

Kan. Admin. Regs. § 112-14-5 Harness racing conduct

(a) A leading horse shall be entitled to any part of the track until a position is selected in the home stretch.

(b) No driver in a race shall:

(1) Change to the right or left during any part of the race when another horse is so near that, in altering the position, the driver compels the horse following to shorten that horse's stride, or causes the driver of the other horse to pull the horse out of stride;

(2) jostle, strike, hook wheels, or interfere with another horse or driver;

(3) cross sharply in front of a horse or cross over in front of a field of horses in a reckless manner so as to endanger other drivers;

(4) swerve in and out or pull up quickly;

(5) crowd a horse or driver by "putting a wheel under him";

(6) "carry a horse out" or "sit down in front of a horse," take up abruptly in front of other horses so as to cause confusion or interference among the trailing horses;

(7) let a horse pass inside needlessly, or otherwise help another horse to improve its position in the race;

(8) lay off a normal pace and leave a hole when it is well within the horse's capacity to keep the hole closed;

(9) commit any act that impedes the progress of another horse or causes that horse to break from its gait;

(10) change course after selecting a position in the home stretch and swerve in or out, or bear in or out, in a manner that interferes with another horse or causes that horse to change course or take back;

(11) drive in a careless or reckless manner;

(12) whip under the arch of the sulky;

(13) fail to set and maintain a proper pace while driving; or

(14) kick a horse.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1988 Supp. 74-8804(p); effective, T-112-7-27-89, July 27, 1989; effective Sept. 18, 1989.)

Kan. Admin. Regs. § 112-14-6 Harness race complaints

(a) Each complaint by a driver of foul driving or other misconduct during a heat or dash shall be made by the driver at its termination, unless the driver is prevented from making the complaint by an accident or injury. At the conclusion of each heat or dash, each driver shall return in the sulky to the starting gate to be dismissed by the stewards or the stewards' designee. Each driver desiring to enter a claim of a foul or other complaint of a violation of the rules shall:

(1) Before dismounting, indicate to the starter the driver's desire to enter the claim or complaint;

(2) upon dismounting, proceed to the telephone or stewards stand to make an objection; and

(3) inform the stewards of the name of the driver and the number of horses involved, if possible, and the location in the race where the foul occurred.

The stewards shall not cause the official sign to be displayed until the claim, objection or complaint has been entered and considered.

(b) After being dismissed by the stewards or starter, each driver shall return to the paddock and remain there until the race is made official.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. Supp. 1988 74-8804(p); effective, T-112-7-27-89, July 27, 1989; effective Sept. 18, 1989.)

Kan. Admin. Regs. § 112-14-7 Unsatisfactory harness race driving

Each heat in a race shall be run by every horse in the race and each horse shall be driven to the finish. If the stewards believe a horse has not been driven in the best interests of racing, the stewards may consider it a violation. In such cases, the driver and anyone who acted in concert with the driver to affect the outcome of the race or races may be fined or suspended by the commission. The stewards may substitute a competent and reliable driver at any time. Each substituted driver shall be paid at the direction of the stewards. If necessary, the fee shall be retained from the purse money earned by the horse, if any.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8816(f); effective, T-112-7-27-89, July 27, 1989; effective Sept. 18, 1989.)

Kan. Admin. Regs. § 112-14-8 Failure to finish a harness race

Each horse that fails to finish after starting in a heat shall be ruled out, unless the failure to finish is caused by interference or broken equipment.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. Supp. 1988 74-8804(p); effective, T-112-7-27-89, July 27, 1989; effective Sept. 18, 1989.)

Kan. Admin. Regs. § 112-14-9 Prohibited acts

(a) Loud shouting or similar conduct is forbidden in a race. After the word "go" is given, both feet of the driver shall be kept in the stirrups until after the finish of the race. Each driver shall have both feet in the stirrups when horses are parading to the post and during qualifying races.

(b) Whips shall not exceed four feet eight inches. Snappers shall not exceed eight inches. Brutal use of the whip shall be a violation punishable at the discretion of the commission by a fine or suspension, or both. Use of the butt-end of the whip shall be prohibited.

(c) Any person found guilty of removing or altering a horse's hopples for the purpose of fraud may be fined or suspended by the commission. Each horse habitually wearing hopples shall not be permitted to start in a race without them, except by the permission of the stewards. No horse shall wear a headpole protruding beyond its nose.

(d) If a horse breaks from its gait in trotting or pacing, the driver shall immediately take the horse to the outside where clearance exists and pull it to its gait.

(1) Any of the following may be considered a violation of these racing regulations:

(A) Failure to properly attempt to pull the horse to its gait;

(B) failure to take to the outside where clearance exists; or

(2) If there is no failure on the part of the driver in complying with subparagraphs (A), (B) or (C) above, the horse shall not be set back unless a contending horse on gait is lapped, or partly alongside, on the hind quarter of the breaking horse at the finish.

(3) The stewards may set any horse back one or more places if, in their judgment, any of the above violations has been committed, and the driver may be fined or suspended by the commission.

(4) If any horse breaks from its gait during any part of the race, and, in the opinion of the stewards, interferes with any horse or horses, the interference shall be a violation of these racing regulations. The interfering horse shall be placed behind all horses subject to the interference unless the driver of the horse or horses subject to the interference failed to exercise reasonable care to avoid the incident.

(e) If a driver allows a horse to break from its gait for the purpose of losing a heat or dash, the driver may be set down by the stewards or suspended or fined by the commission or any combination of the three.

(f) It shall be the duty of one of the stewards to call out every break made from a horse's gait. The clerk shall at once note the break in writing.

(g) Horses called for a race shall have the exclusive right of the course, and all other horses shall vacate the track at once, unless permitted to remain by the stewards.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1988 Supp. 74-8804(p); implementing K.S.A. 1988 Supp. 74-8816(f); effective, T-112-7-27-89, July 27, 1989; effective Sept. 18, 1989.)

Kan. Admin. Regs. § 112-14-10 Driver safety standards

(a) Each driver shall wear a properly fastened safety helmet while driving a horse within the enclosure or while driving a horse in a race. All safety helmets shall be of a type and design approved by the commission.

(b) Each driver shall have on file at the commission racetrack office a record of an eye examination indicating at least 20/40 corrected vision in both eyes, or if one eye is blind, at least 20/30 corrected vision in the other eye.

(c) Each driver shall submit evidence, on request, of a physical examination conducted by a duly licensed physician approved by the commission within the immediately preceding year.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. Supp. 1988 74-8804(p); effective, T-112-7-27-89, July 27, 1989; effective Sept. 18, 1989.)

Article 15 Award of Research Grants

Kan. Admin. Regs. § 112-15-1 Definitions

(a) "Animal health officer" means the individual employed by the commission pursuant to K.S.A. 1989 Supp. 74-8806.

(b) "Commission" means the Kansas racing commission appointed by the governor pursuant to K.S.A. 1989 Supp. 74-8803.

(d) "Kansas greyhound breeding development fund" means the fund created by K.S.A. 1989 Supp. 74-8831.

(e) "Kansas horse breeding development fund" means the fund created by K.S.A. 1989 Supp. 74-8829.

(f) "Official registering agency" means:

(1) for horses, the agency designated by the commission pursuant to K.S.A. 1989 Supp. 74-8830 (b) and (c);

(2) for greyhounds, the agency designated by the commission pursuant to K.S.A. 1989 Supp. 74-8832 (b) and (c).

(g) "Program period" means the period for which each program is funded with monies from the Kansas horse breeding development fund or the Kansas greyhound breeding development fund, normally 12 months (one fiscal year) unless special consideration is requested and approved.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-8804; implementing K.S.A. 1989 Supp. 74-8829 and 74-8831; effective Oct. 22, 1990.)

Kan. Admin. Regs. § 112-15-2 Application deadlines

(a) Grant proposals from interested applicants shall be solicited by the commission during the end of the preceding calendar year by publishing notice of the application deadlines and procedures in the Kansas register 60 days prior to receipt of the funds.

(b) Applications for grants shall be submitted to the executive director on or before January 15 following the end of each calendar year. Applicants demonstrating need to the satisfaction of the grant committee may be granted emergency funding at any time during the year provided funds are available.

(c) After the auditors determine the amount of the funds generated for the breed development funds allocated for research, the grant committee shall meet as necessary between January 15 and March 15 of the year following the year in which the funds were generated.

(1) The committee shall select the most worthy research projects for submission to the commission.

(2) The commission shall choose the projects to be funded on or before April 15 of the same year.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804; implementing K.S.A. 74-8829, as amended by 1994 HB 3097, Sec. 3, and 74-8831; effective Oct. 22, 1990; amended Sept. 6, 1994.)

Kan. Admin. Regs. § 112-15-3 Application requirements

(a) Each grant application shall include:

(1) a summary cover page;

(2) a program narrative;

(3) a budget narrative;

(4) certified assurances;

(5) an audit schedule; and

(6) a designation of the applicant's EEO contact.

(b) Each summary cover page shall provide quick reference to important elements of the grant application.

(1) needs assessment and documentation;

(2) program expectations;

(3) program methodology;

(4) program monitoring and evaluations;

(5) audit concerns; and

(6) staffing patterns.

(d) Each grant application shall relate to research conducted within the state of Kansas:

(1) for horses, through institutions of higher education under the state board of regents; and

(2) for greyhounds, preferably through institutions of higher education under the state board of regents or in association with those institutions.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804; implementing K.S.A. 74-8829, as amended by 1994 HB 3097, Sec. 3, and 74-8831; effective Oct. 22, 1990; amended Sept. 6, 1994.)

Kan. Admin. Regs. § 112-15-4 Application review

(a) Each grant application shall be evaluated using the following criteria:

(1) the proposal's compliance with K.S.A. 1989 Supp. 74-8829(b)(5) or K.S.A. 1989 Supp. 74-8831(b)(2);

(2) the quality of the needs assessment and documentation in terms of proposed benefits to the horse and greyhound racing industries in Kansas;

(3) the record of successful implementation of research results in the breed industries by this or similar programs;

(4) the degree of breed industry support for the program;

(5) the adequacy of budget information;

(6) the efficacy of evaluative components, both programmatic and fiscal;

(7) any receipt of other financial assistance; and

(8) any other criteria stated by the commission in the notice published pursuant to K.A.R. 112-15-2(d).

(b) The executive director may require an applicant to be present during the application review process to provide necessary clarification of the application.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-8804; implementing K.S.A. 1989 Supp. 74-8829 and 74-8831; effective Oct. 22, 1990.)

Kan. Admin. Regs. § 112-15-5 Notification of decision

Each applicant applying for grant funds shall be notified in writing of the grant decision not later than 60 days after the date on which the application is reviewed, except that applicants applying for grant funds pursuant to subsection (b) of K.A.R. 112-15-2 shall be notified not later than 15 days after the date on which the application is reviewed.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804; implementing K.S.A. 74-8829, as amended by 1994 HB 3097, Sec. 3, and 74-8831; effective Oct. 22, 1990; amended Sept. 6, 1994.)

Kan. Admin. Regs. § 112-15-6 Reporting requirements

(a) Each grant recipient shall submit to the executive director:

(1) bi-annual expenditure reports providing information on expenditures during the previous six-month period; and

(2) a program narrative report providing a narrative description of program activities during the program period.

(b) Each grant recipient shall submit a bi-annual expenditure report within 30 days after the close of each six month period, on June 30 and December 31.

(d) Each grant recipient shall submit to the executive director a sound research paper summarizing the research program and the results within 90 days after the close of the program period. Each research paper shall be prepared in a form suitable for publication.

(e) Each grant recipient shall submit to the executive director, at least 30 days before actual need, cash draw down reports to request advancement of approved grant funds.

(f) Each grant recipient shall maintain program receipts for a period of three years after the close of the program period.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804; implementing K.S.A. 74-8829, as amended by 1994 HB 3097, Sec. 3, and 74-8831; effective Oct. 22, 1990; amended Sept. 6, 1994.)

Kan. Admin. Regs. § 112-15-7 Grant committees

(a) One committee of five persons, designated by the executive director, may assist the commission in determining research awards from the Kansas horse breeding development fund. The grant committee shall have a membership as follows:

(1) One representative of the horse industry;

(2) one representative of the official registering agency;

(3) one representative identified by the commission;

(4) the animal health officer; and

(5) the executive director, who shall chair the committee.

(b) One committee of five persons, designated by the executive director, may assist the commission in determining research awards from the Kansas greyhound breeding development fund. The grant committee shall have a membership as follows:

(1) One representative of the greyhound industry;

(2) one representative of the official registering agency;

(3) one representative identified by the commission;

(4) the animal health officer; and

(5) the executive director, who shall chair the committee.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1989 Supp. 74-8804; implementing K.S.A. 1989 Supp. 74-8829 and 74-8831; effective Oct. 22, 1990.)

Article 16 Simplified Hearing Procedures

Kan. Admin. Regs. § 112-16-1 Definitions

(a) "Commission" means the Kansas racing commission.

(b) "Executive director" means the executive director of the commission.

(c) "Hearing body" means the commission when it conducts hearings that are not governed by the Kansas administrative procedure act and the board of stewards and the board of racing judges when they conduct hearings pursuant to K.S.A. 74-8816.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8804 and 74-8816 as amended by 1991 SB 375, Sec. 3; effective, T-112-7-1-91, July 1, 1991; effective Oct. 21, 1991.)

Kan. Admin. Regs. § 112-16-2 Report of alleged violation

(a) Any person may file a report of alleged violation in any commission office.

(b) Any person reporting an alleged violation shall fully execute the report form available in commission offices. Incomplete forms shall not be accepted by commission personnel.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8804 and 74-8816 as amended by 1991 SB 375, Sec. 3; effective, T-112-7-1-91, July 1, 1991; effective Oct. 21, 1991.)

Kan. Admin. Regs. § 112-16-3 Notice of alleged violation and hearing

(a) If disposition of the allegation raised in the report may result in a fine, suspension, exclusion or expulsion from a racetrack facility, the hearing body shall provide the respondent with reasonable notice of the alleged violation and hearing.

(b) The notice of alleged violation and hearing shall include the following information:

(1) the time and location of the hearing;

(2) the identity of the hearing body and an address and telephone number where the respondent may contact the hearing body;

(3) the case number and the name of the proceeding;

(4) a statement of the legal authority and a general description of the allegation, including the time of occurrence;

(5) a statement that a respondent who fails to attend the hearing may be subject to the entry of an order that is justified by the evidence presented at the hearing; and

(6) a statement that a respondent has the right to appear at the hearing in person or with counsel, the right to produce any evidence and witness on the respondent's behalf, the right to cross-examine any witness who may testify against the respondent and the right to examine any evidence that may be produced against the respondent.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8804 and 74-8816 as amended by 1991 SB 375, Sec. 3; effective, T-112-7-1-91, July 1, 1991; effective Oct. 21, 1991.)

Kan. Admin. Regs. § 112-16-4 Waiver

Except to the extent precluded by another provision of law, a person may waive any right conferred upon that person by these racing regulations.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8804 and 74-8816 as amended by 1991 SB 375, Sec. 3; effective, T-112-7-1-91, July 1, 1991; effective Oct. 21, 1991.)

Kan. Admin. Regs. § 112-16-5 Informal settlements

Nothing in these racing regulations shall preclude informal settlement of matters that may make a hearing unnecessary.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8804 and 74-8816 as amended by 1991 SB 375, Sec. 3; effective, T-112-7-1-91, July 1, 1991; effective Oct. 21, 1991.)

Kan. Admin. Regs. § 112-16-6 Participation by and representation of respondents

(a) Whether or not participating in person, any respondent who is a natural person may be represented by an attorney licensed to practice law in the state of Kansas in any evidentiary hearing conducted before the Kansas racing and gaming commission or its designated presiding officer or officers in accordance with the Kansas administrative procedure act, K.S.A. 77-501, et seq., or rules and regulations adopted by the commission pursuant to K.S.A. 1996 Supp. 74-8816(g) or K.S.A. 1996 Supp. 74-8836(k). The attorney shall represent the respondent at the respondent's own expense.

(b) Each for-profit or not-for-profit corporation, unincorporated association, or other respondent who is a non-natural person shall be represented by an attorney licensed to practice law in the state of Kansas in any evidentiary hearing conducted before the Kansas racing and gaming commission or its designated presiding officer or officers in accordance with the Kansas administrative procedure act, K.S.A. 77-501, et seq., or rules and regulations adopted by the commission pursuant to K.S.A. 1996 Supp. 784-8816(g) or K.S.A. 1996 Supp. 74-8836(k). The attorney shall represent the respondent at the respondent's own expense.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1996 Supp. 74-8804 and K.S.A. 77-515(c); implementing K.S.A. 1996 Supp. 74-8804, 74-8813, 74-8815, 74-8816, 74-8817, 74-8818 and 74-8837; effective, T-112-7-1-91, July 1, 1991; effective Oct. 21, 1991; amended Sept. 19, 1997.)

Kan. Admin. Regs. § 112-16-7 Subpoenas, stewards' and racing judges' hearings

(a) Any party to a stewards' or racing judges' hearing may request that the executive director issue a commission subpoena in accordance with K.S.A. 1990 Supp. 74-8804(d).

(b) Subpoenas shall be served by a person designated by the executive director. Service shall be in person and at the expense of the requesting party. Proof of service shall be shown by affidavit.

(c) Subpoenas issued by the executive director may be enforced pursuant to the provisions of the Kansas parimutuel racing act.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8804 and 74-8816 as amended by 1991 SB 375, Sec. 3; effective, T-112-7-1-91, July 1, 1991; effective Oct. 21, 1991.)

Kan. Admin. Regs. § 112-16-8 Presiding officer

(a) The chief steward or racing judge or chairman of the commission or another person designated by the hearing body may be the presiding officer.

(b) For stewards' and racing judges' hearings, if a substitute is required for a presiding officer or other member of the hearing body who is unavailable for any reason, the executive director may appoint a substitute. Any action taken by the duly appointed substitute is as effective as if taken by the unavailable member.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8804 and 74-8816 as amended by 1991 SB 375, Sec. 3; effective, T-112-7-1-91, July 1, 1991; effective Oct. 21, 1991.)

Kan. Admin. Regs. § 112-16-9 Hearing procedure

(a) The presiding officer shall regulate the course of the proceedings.

(b) To the extent necessary for full disclosure of all relevant facts and issues, the presiding officer shall afford to all parties the opportunity to respond, present evidence and argument, conduct cross-examination and submit rebuttal evidence.

(c) Upon the request of the respondent, the presiding officer may conduct all or part of the hearing by telephone or other electronic means, if each participant in the hearing has an opportunity to participate in the entire proceeding while it is taking place.

(d) The presiding officer shall cause the hearing to be recorded at the commission's expense. The commission is not required to prepare a transcript at its expense. Subject to such reasonable conditions as the presiding officer may establish, any party may cause a person other than the commission to prepare a transcript of the proceedings.

(e) The hearing is open to public observation, except for the parts that the presiding officer states to be closed pursuant to a provision of law expressly authorizing closure.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8804 and 74-8816 as amended by 1991 SB 375, Sec. 3; effective, T-112-7-1-91, July 1, 1991; effective Oct. 21, 1991.)

Kan. Admin. Regs. § 112-16-10 Evidence

(a) A presiding officer need not be bound by technical rules of evidence, but shall give the parties reasonable opportunity to be heard and to present evidence, and the presiding officer shall act reasonably and without partiality. The presiding officer shall give effect to the rules of privilege recognized by law. Evidence need not be excluded solely because it is hearsay.

(b) All testimony of parties and witnesses shall be made under oath or affirmation, and the presiding officer or the presiding officer's designee who is legally authorized to administer an oath or affirmation shall have the power to administer an oath or affirmation for that purpose.

(c) Documentary evidence may be received in the form of a copy or excerpt. Upon request, parties shall be given an opportunity to compare the copy with the original if available.

(d) Official notice may be taken of:

(1) any matter that could be judicially noticed in the courts of this state; and

(2) the record of other proceedings before the stewards and racing judges or the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8804 and 74-8816 as amended by 1991 SB 375, Sec. 3; effective, T-112-7-1-91, July 1, 1991; effective Oct. 21, 1991.)

Kan. Admin. Regs. § 112-16-11 Orders

(a) Within a reasonable time after the hearing, the hearing body shall enter a written order.

(b) An order shall include a brief statement of the findings of the hearing body and any penalty prescribed. The findings shall be based exclusively upon the evidence of record and on matters officially noticed in the hearing.

(c) For stewards' and racing judges' hearings, the order shall also include a statement that the order is subject to appeal to the commission and the available procedures and time limits for seeking an appeal. The order shall further include a statement that any suspension imposed by the order may be stayed, pending appeal.

(d) For stewards' and racing judges' hearings, the hearing body may impose any penalty authorized by law and may refer the matter to the commission with findings and recommendations for imposition of greater penalties.

(e) An order shall be effective when rendered.

(f) The presiding officer shall cause copies of the order to be served upon each party to the proceedings.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1997 Supp. 74-8804; implementing K.S.A. 1997 Supp. 74-8816; effective, T-112-7-1-91, July 1, 1991; effective Oct. 21, 1991; amended May 15, 1998.)

Kan. Admin. Regs. § 112-16-12 Service of order

(a) Service of an order shall be made upon the party and the party's attorney of record, if any, by delivering a copy of the order to the person to be served or by mailing a copy of the order or notice to the person at the person's last known address.

(b) Delivery means handing the order to the person or leaving the order at the person's principal place of business or residence with a person of suitable age and discretion who works or resides therein.

(c) Service shall be presumed if the presiding officer, or a person directed to make service by the presiding officer, makes a written certificate of service.

(d) Service by mail is complete upon mailing.

(e) Whenever a party has the right or is required to do some act or take some proceedings within a prescribed period after service of an order is served by mail, three days shall be added to the prescribed period.

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History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8804 and 74-8816 as amended by 1991 SB 375, Sec. 3; effective, T-112-7-1-91, July 1, 1991; effective Oct. 21, 1991.)

Kan. Admin. Regs. § 112-16-13 Fines

Each fine ordered by the stewards and racing judges shall be due and payable in the commission office at the racetrack facility within 72 hours after service of the order imposing the fine, unless otherwise ordered by the stewards and racing judges.

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History

History: (Authorized by K.S.A. 1990 Supp. 74-8804; implementing K.S.A. 1990 Supp. 74-8804 and 74-8816 as amended by 1991 SB 375, Sec. 3; effective, T-112-7-1-91, July 1, 1991; effective Oct. 21, 1991.)

Kan. Admin. Regs. § 112-16-14 Appeal, stewards' and racing judges' hearing

(a) Any order entered by the stewards or racing judges that imposes a fine or suspension shall be subject to appeal to the commission. Such an order shall be deemed to be an initial order under the Kansas administrative procedure act and any such appeal shall be treated as a petition for administrative review under the Kansas administrative procedure act.

(b) A party who wishes to appeal a stewards' or racing judges' order shall file a notice of appeal and brief form in the stewards' or racing judges' office during regular office hours within 72 hours after personal service of the order from which the party is appealing. If an order is served by mail, the party shall have an additional 72 hours in which to file a notice of appeal and brief form. For purposes of computing the timeliness of any service or filing made by mail, the service or filing shall be deemed complete as of 12:01 a.m. on the date mailed.

(c) Each notice of appeal and brief form shall be fully executed by the appealing party upon the form available in the stewards' or racing judges' office. Each notice of appeal and brief form shall fully state the basis for appeal and identify the issues upon which the party seeks administrative review. Incomplete forms shall not be accepted by commission personnel.

(d) A notice of appeal and brief form shall constitute the appealing party's written brief under K.S.A. 1997 Supp. 77-527(e). An opposing party shall be afforded an opportunity to file a brief in response to the appealing party's brief within 72 hours following the filing of the appealing party's brief.

(e) Each notice of appeal form shall include a statement that, in reviewing any stewards' or racing judges' order:

(1) board decision-making powers may be exercised by the commission, one or more commissioners designated by the commission or a presiding officer designated by the commission; and

(2) in doing so, the order may be affirmed, reversed, remanded for further hearing, modified or any penalty may be increased by the commission, one or more commissioners designated by the commission or a presiding officer designated by the commission. A new hearing may also be conducted by the commission, or one or more commissioners designated by the commission or a presiding officer designated by the commission, and an occupation license may be suspended or revoked or a fine of $5000 may be imposed for each violation of the racing act or regulations, or both.

(f) Any order entered by the commission, one or more commissioners designated by the commission or a presiding officer designated by the commission, on an appeal from an order entered by the stewards or racing judges, shall constitute a final order pursuant to K.S.A. 1995 Supp. 77-527(f) for purposes of reconsideration under K.S.A. 77-529 or judicial review pursuant to the Kansas act for judicial review and civil enforcement of agency action, K.S.A. 77-601, et seq.

(g) A respondent may be deemed to have timely filed a notice of appeal pursuant to subsection (b) if, after service of the stewards' or racing judges' order, the respondent:

(1) within the appeal time described in subsection (b) of this racing regulation, files a writing that states an intention to appeal the order and that includes substantially the same information requested in the appeal form available in the stewards' or racing judges' office; and

(2) within a period of time authorized by the chief steward or racing judge, fully executes and files in the stewards' or racing judges' office the appeal form available in that office.

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History

History: (Authorized by K.S.A. 1995 Supp. 74-8804, as amended by L. 1996, Ch. 262, Sec. 2; implementing K.S.A. 1995 Supp. 74-8804, as amended by L. 1996, Ch. 262, Sec. 2, and 74-8816, as amended by L. 1996, Ch. 262, Sec. 6; effective, T-112-7-1-91, July 1, 1991; effective Oct. 21, 1991; amended Dec. 22, 1995; amended March 21, 1997.)

Article 17 Fair Association or Horsemen's Nonprofit Organization

Kan. Admin. Regs. § 112-17-1 Application procedure, fair association and horsemen's nonprofit organization applicant

(a) Any fair association, as defined in K.S.A. 74-8802(h), and horsemen's nonprofit organization, as provided in K.S.A. 74-8814, as amended, may apply to the commission for an organization license to conduct races on which parimutuel wagering is permitted.

(b) Each application shall be completed upon a form provided by the commission. If the applicant proposes to contract with a facility owner or facility manager, or both, to own or operate the racetrack facility, the completed organization applicant form shall accompany the facility owner and facility manager applications.

(c) Each application and any attached documents required by these regulations shall be submitted as a single package. An original and 10 copies of the application and documents shall be filed with the executive director at the commission offices. Each application shall be verified under oath by the authorized officer or officers of the applicant, and all copies shall be manually signed in ink.

(d) Unless otherwise directed by the commission, applications shall be filed with the commission not later than 120 calendar days prior to the first performance of the race meeting the applicant proposes to conduct.

(e) If the applicant proposes to construct a racetrack facility, a deposit as required by K.S.A. 74-8813(b), as amended by L. 1994, Ch. 146, Sec. 5, shall be paid in addition to the application fee and submitted with the application. The fee and deposit shall be paid in the form of a certified check or bank draft. Each applicant that is granted an organization license shall pay an application fee in the form of a certified check or bank draft as follows:

(1) for a license to conduct races with parimutuel wagering on not more than 11 days, $50;

(2) for a license to conduct races with parimutuel wagering on at least 12 but not more than 21 days, $100; and

(3) if the applicant is the Greenwood County fair association, a horsemen's nonprofit organization or the Anthony fair association, for a license to conduct races at Eureka Downs, Anthony Downs, or a racetrack facility on or adjacent to premises used by a fair association to conduct fair activities on more than 21 days as specified by the commission, $500.

(f) Unless otherwise directed by the commission, the license fee required by K.S.A. 74-8814(a) for the initial race meeting shall be paid to the commission within 60 days after the granting of the applicant's organization license. Thereafter, the license fee shall be paid to the commission on or before a date that is 60 days before the first race conducted at the race meeting to which the license fee applies.

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History

History: (Authorized by K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; implementing K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8813, as amended by L. 1994, Ch. 146, Sec. 5, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; effective Nov. 30, 1992; amended July 10, 1995.)

Kan. Admin. Regs. § 112-17-2 Application form, fair association and horsemen's nonprofit organization applicant

(a) Each application for a fair association organization license or a horsemen's nonprofit organization license, as provided in K.S.A. 74-8814, as amended, shall contain the following:

(1) a description of the applicant's organizational structure, including:

(A) the applicant's full name;

(B) the applicant's business address and telephone number;

(D) current copies of the applicant's articles of incorporation, bylaws, rules and regulations or any other agreements or documents that create or govern the applicant's organization;

(E) a statement of good standing from the secretary of state;

(F) the full names, including any aliases or previous names, dates of birth and addresses of the applicant's officers. As to each officer, the applicant shall disclose the nature and extent of any voting interest in the applicant; and

(G) the full names, including any aliases or previous names, dates of birth and addresses of any principal shareholder or principal member of the applicant. As to each member or shareholder, the applicant shall disclose the nature and extent of voting interest in the applicant.

(2) a statement whether the applicant is directly or indirectly controlled to any extent or in any manner by another individual or entity. If so, the applicant shall disclose the identity of the controlling entity and a description of the nature and extent of control;

(3) copies of any contracts, agreements or understandings that the applicant or any individual or entity identified pursuant to this regulation has entered into or proposes to enter into regarding applicant's race meeting. If the contract, agreement or understanding is an oral one, a written statement explaining the substance of the oral agreement shall be included;

(4) copies of any contracts, agreements or understandings that the applicant has entered into or proposes to enter into for the payment of fees, rents, salaries or other compensation by the applicant. If the contract, agreement or understanding is an oral one, a written statement explaining the substance of the oral agreement shall be included;

(5) a statement whether the applicant, or any director, officer, policy-making manager, principal shareholder or principal member owns or has owned any interest in any racing-associated or gambling-associated firm, partnership, association or corporation licensed by a governmental authority. If so, a description of the circumstances surrounding the interest or participation shall be provided, including the identity of the license or permit holder, the nature of the license or permit, the identity of the issuing authority and the dates of the issuance and any termination of the license or permit; and

(6) a statement whether the applicant, any officer, any director, any principal shareholder or any principal member has complied with and is in compliance with K.S.A. 1993 Supp. 74-8810.

(b) For purposes of this regulation a principal member or principal shareholder is one who owns an interest in the applicant of three percent or more.

(c) Each exhibit, statement, report, paper or other document submitted in support of the application shall be current, accurate and complete. Any change shall be reported immediately to the commission during the period of application or licensure. At all times, a current copy of the documents supporting the application shall be recorded in the commission office.

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History

History: (Authorized by K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; implementing K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8813, as amended by L. 1994, Ch. 146, Sec. 5, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; effective Nov. 30, 1992; amended July 10, 1995.)

Kan. Admin. Regs. § 112-17-3 Site and physical plant, fair association and horsemen's nonprofit organization applicant

Each application for a fair association and horsemen's nonprofit organization license in which the applicant proposes to own or to construct a racetrack facility shall contain the following information: (a) the address, including the county and municipality, of the racetrack facility at which the applicant proposes to conduct racing;

(b) a site map that reflects existing and proposed highways and streets adjacent to the racetrack facility;

(c) a description of the grandstand, including the indoor and outdoor seating capacities, the location of food, drink and other concessions, the number and location of restrooms and the number and location of drinking fountains;

(d) the types of racing for which the facility is designed, whether greyhound or horse and, if horse, the breed of horse;

(e) racetrack dimensions by circumference, width, banking, location of starting gates or boxes, length of stretch, and type of surface, as well as a description of equipment that will be used to maintain the track surface. If the applicant proposes more than one racetrack, the applicant shall provide the details for each;

(f) for horse racetracks, a description of horse stalls which includes the dimensions, separation, location and total number of stalls;

(g) for greyhound racetracks, a description of facilities to accommodate greyhounds which includes the location, number, method of construction and size of crates, as well as the location, size and number of any turnout pens;

(h) as directed by the commission, a description of testing facilities;

(i) for horse racetracks, a description of the jockeys' and drivers' quarters which includes changing areas and a listing of any equipment to be located in the quarters;

(j) a description of the totalisator system, including the approximate location of bettors' windows, the money room, totalisator equipment and, if known, the identity of the totalisator provider;

(k) a description of the parking, including the road surface on the parking areas, the distance between parking and the grandstand, the access to parking from surrounding streets and highways and the number of public and other parking spaces available;

(l) a description of any improvements and equipment to be used for security, fire and safety purposes, including the identity of the provider of the equipment, if known;

(m) a description of the starting, timing video replay and photo finish equipment, including the provider of the equipment, if known; and

(n) a description of the work areas to be used by the commission, its employees and agents.

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History

History: (Authorized by K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; implementing K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8813, as amended by L. 1994, Ch. 146, Sec. 5, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; effective Nov. 30, 1992; amended July 10, 1995.)

Kan. Admin. Regs. § 112-17-4 Financial resources, fair association, and horsemen's nonprofit organization applicant

(b) fixed assets and current liabilities, including loans and advances payable, long-term debt, and equity.

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History

History: (Authorized by K.S.A. 2000 Supp. 74-8804 and 74-8814; implementing K.S.A. 2000 Supp. 74-8804, 74-8813, as amended by L. 2001, Ch. 5, Sec. 342, and 74-8814; effective Nov. 30, 1992; amended July 10, 1995; amended Nov. 16, 2001.)

Kan. Admin. Regs. § 112-17-5 Financial plan, fair association and horsemen's nonprofit organization applicant

Each application for a fair association or horsemen's nonprofit organization license in which the applicant proposes to own or to construct a racetrack facility shall contain the following information concerning the applicant's financial plan: (a) financial projections for each of the first and the next three racing years, with separate schedules based upon the number of racing days and types of parimutuel wagers the applicant requires to break even and the optimum number of racing days and types of wagers applicant requests for each year;

(b) statements disclosing the following assumptions:

(1) average daily attendance;

(2) average daily per capita handle and average wager;

(3) retainage;

(4) admissions to the racetrack, including paid and free admissions;

(5) parking volume, fees and other revenues;

(6) concessions and program sales;

(7) purses;

(8) parimutuel expense;

(9) breed funds;

(10) payroll including reimbursement to the commission as authorized by the act;

(11) operating supplies and services;

(12) utilities;

(13) repairs and maintenance;

(14) insurance;

(15) membership expense;

(16) security expense;

(17) legal and audit expense; and

(18) debt service.

(1) total revenue, including projected revenues from retainage and breakage, admissions, parking, concessions and program operations;

(2) total operating expenses, including projected anticipated expenses for the following:

(A) purses;

(B) parimutuel;

(D) breed funds;

(E) cost of concession goods and programs;

(F) advertising and promotion;

(G) payroll;

(H) operating supplies and service;

(I) maintenance and repairs;

(J) security; and

(K) legal and audit; and

(3) nonoperating expenses, including anticipated expenses for debt service, facility depreciation and identification of the method used, and equipment depreciation and identification of the method used;

(d) statements disclosing the projected cash flow, including an assessment of:

(1) income, including equity contributions, debt contributions, interest income and operating revenue; and

(2) disbursements, including land, improvements, equipment, debt service, operating expense and organizational expense; and

(e) a disclosure of the projected balance sheets as of the end of any development period and the first and the next three racing years setting forth current, fixed and other noncurrent assets, current and long-term liabilities, and capital accounts.

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History

History: (Authorized by K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; implementing K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8813, as amended by L. 1994, Ch. 146, Sec. 5, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; effective Nov. 30, 1992; amended July 10, 1995.)

Kan. Admin. Regs. § 112-17-6 Governmental actions, fair association and horsemen's nonprofit organization applicant

(a) a statement that the applicant is not required to secure any governmental approval for the ownership, operation or development of the racetrack facility; or

(b) a statement disclosing any required governmental approvals for the ownership, operation or development of the racetrack facility, including:

(1) a description of the approval, the unit of government involved, the date of the approval and documentation of it;

(2) a statement whether public hearings were held. If they were, the applicant shall disclose when and where the hearings were conducted. If they were not held, the applicant shall disclose why they were not held; and

(3) a statement whether the unit of government involved attached any conditions to the approval. If so, the applicant shall disclose the conditions, including documentation; and

(4) a statement whether any required governmental approvals remain to be obtained, as well as a description of the approval, the unit of government involved, the status of the approval, the likelihood of the approval and the expected date of approval;

(c) a statement whether the racetrack facility complies with all statutes, charter provisions, ordinances and regulations pertaining to the ownership, operation and development of a racetrack facility. If not in compliance, the applicant shall disclose the reasons why it is not; and

(d) a statement whether a majority of qualified electors in the named county approved either:

(1) the constitutional amendment permitting the conduct of horse and greyhound races and parimutuel wagering; or

(2) a proposition permitting horse and greyhound races and parimutuel wagering within the county boundaries. The form of racing approved shall be stated.

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History

History: (Authorized by K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; implementing K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8813, as amended by L. 1994, Ch. 146, Sec. 5, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; effective Nov. 30, 1992; amended July 10, 1995.)

Kan. Admin. Regs. § 112-17-7 Development process, fair association and horsemen's nonprofit organization applicant

Each application for a fair association or horsemen's nonprofit organization license in which the applicant proposes to construct or to improve an existing racetrack facility shall contain the following information concerning the applicant's development process: (a) the total costs of construction of the facility, distinguishing between fixed costs and projections;

(b) a separate identification of the following costs, distinguishing between fixed costs and projections:

(1) facility design;

(2) land acquisition;

(3) site preparation;

(4) improvements and equipment, separately identifying the costs of the items listed in subparagraphs (e) through (n) of K.A.R. 112-17-3 and other categories of improvements and equipment;

(5) interim financing;

(6) permanent financing; and

(7) organization, administrative, accounting and legal services.

(d) the schedule for construction of the facility including the estimated completion date;

(e) schematic drawings;

(f) copies of any contracts with and performance bonds from the:

(1) architect or other design professional;

(2) project engineer;

(3) construction engineer;

(4) contractor and subcontractor; and

(5) equipment procurement personnel; and

(g) a statement whether the site is owned or leased. If so, the applicant shall provide the documentation for the acquisition. If not, the applicant shall disclose what actions it must take to secure use of the site;

(h) a description of equity and debt sources of financing, including:

(1) with respect to each source of equity contribution, an identification of the source, amount, form, method of payment, nature and amount of present commitment, documentation and actions which the applicant will take to obtain more certain commitments and commitments for additional amounts; and

(2) with respect to each source of debt contribution, an identification of the source, amount, form, method of payment, nature and amount of present commitment, documentation and actions which the applicant will take to obtain more certain commitments and commitments for additional amounts; and

(i) an identification and description of the sources of additional funds, if needed, due to cost overruns, nonreceipt of expected equity or debt funds, failure to achieve projected revenues or any other cause.

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History

History: (Authorized by K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; implementing K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8813, as amended by L. 1994, Ch. 146, Sec. 5, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; effective Nov. 30, 1992; amended July 10, 1995.)

Kan. Admin. Regs. § 112-17-8 Management of racetrack facility, fair association and horsemen's nonprofit organization applicant

Each application for a fair association and horsemen's nonprofit organization license shall contain the following information concerning management of the facility:

(a) a description of the applicant's management plan, including a budget and the identification of each management position by function, job description and qualification. The applicant shall include a copy of an organization chart that depicts the chain of command for each management position;

(b) an identification of management personnel or volunteers and, to the extent known, for each:

(1) a legal name, any alias and any previous name;

(2) a current residence and business address and a telephone number for each;

(3) any qualification and experience in the following areas:

(A) general business;

(B) marketing, promotion and advertising;

(D) horse or greyhound racing;

(E) parimutuel wagering;

(F) security; and

(G) human and animal health and safety; and

(4) a description of the terms and conditions of employment and a copy of any written agreement;

(c) an identification of consultants and other contractors, to the extent known, who have provided or will provide management-related services to the applicant, and, for each:

(1) a full name;

(2) a current address and telephone number;

(3) the nature of service provided;

(4) any qualification and experience; and

(5) a description of the terms and conditions of any agreement and a copy of any written agreement;

(d) a description of memberships in racing organizations held by the applicant, its management personnel and its consultants;

(e) a description of the applicant's security plan, including:

(1) the number and deployment of security personnel serving the applicant during a race meeting;

(2) the specific security plans for the stable or kennel area, detention area, parimutuel areas, money room and other restricted areas;

(3) the specific security plans for detecting persons at the racetrack facility who are subject to the provisions of K.S.A. 1993 Supp. 74-8804 (f) (1) through (3), as amended by L. 1994, Ch. 146, Sec. 3, or who have violated commission regulations or the racing act; and

(4) a description of the coordination of the security plan with other law enforcement agencies;

(f) a description of the applicant's plans for human health and safety, including emergencies;

(g) a description of the applicant's plans for animal health and safety, including provisions for maintenance of the racing surface and removal of injured racing animals from the track;

(h) a description of the applicant's marketing, promotion and advertising plans;

(i) a description of the applicant's plan for the conduct of racing, including types of racing, specific dates, number of races per day, post times and special events;

(j) a description of the applicant's plan for purses, including total purses, formula, stakes races and purse-handling procedures;

(k) a statement of the applicant's plan for furnishing the surety bond or other financial security required by K.S.A. 74-8813 (e), as amended by L. 1994, Ch. 146, Sec. 5;

(l) if wagering is to be conducted, a description of the applicant's plan for parimutuel wagering, including the number of line divisions, windows, selling machines and tellers, stating the uses and duties of each, and accounting procedures, stating any internal audit and supervisory controls;

(m) a description of the applicant's plan for concessions, including whether the licensee will operate the concessions and, if not, who will, to the extent known;

(n) a description of the applicant's plan for training its personnel; and

(o) a description of the applicant's plans for compliance with employment laws.

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History

History: (Authorized by K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; implementing K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8813, as amended by L. 1994, Ch. 146, Sec. 5, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; effective Nov. 30, 1992; amended July 10, 1995.)

Kan. Admin. Regs. § 112-17-9 Background investigations, fair association and horsemen's nonprofit organization applicants or licensees

Any entity or individual identified for investigation in these regulations or found to be material to the operation of the race meeting shall submit to a background investigation conducted by the director of security, the director of the Kansas bureau of investigation or any other person designated by the commission. Each individual or entity identified in this regulation shall execute and verify a personal background disclosure form provided by the commission. The level of any background investigation may be designated by the commission.

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History

History: (Authorized by K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; implementing K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; effective Nov. 30, 1992; amended July 10, 1995.)

Kan. Admin. Regs. § 112-17-10 Additional information, fair association and horsemen's nonprofit organization applicant or licensee

Any fair association and horsemen's nonprofit organization applicant or licensee may be required by the commission to submit additional information to facilitate the review of the initial license application and any subsequent review of a license by the commission.

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History

History: (Authorized by K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; implementing K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8813, as amended by L. 1994, Ch. 146, Sec. 5, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; effective Nov. 30, 1992; amended July 10, 1995.)

Kan. Admin. Regs. § 112-17-11 Financial audit, fair association and horsemen's nonprofit organization licensee

Any fair association or horsemen's nonprofit organization licensee may be required to file a financial audit in accordance with commission direction. If an audit is required by the commission, the licensee shall file the audit on or before 90 days after the end of the licensee's fiscal year. The licensee's audit shall be filed with the executive director at the commission office.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; implementing K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8813, as amended by L. 1994, Ch. 146, Sec. 5, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; effective Nov. 30, 1992; amended July 10, 1995.)

Kan. Admin. Regs. § 112-17-12 Licensee file, fair association and horsemen's nonprofit organization licensee

(a) If the commission grants an organization license to a fair association or horsemen's nonprofit organization, each exhibit, statement, report, paper or other document submitted in support of the application shall be maintained in the licensee's file in the commission office.

(b) Any change in or supplement to the written or oral information reported to the commission during the period of application or the period of licensure shall be reduced to writing and submitted to the commission office for filing in the licensee file. Each submission shall be made in a timely manner.

(c) At all times, a current copy of the documents supporting the original application and licensee file shall be recorded in the commission office.

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History

History: (Authorized by K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; implementing K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; effective Nov. 30, 1992; amended July 10, 1995.)

Kan. Admin. Regs. § 112-17-13 Testing for controlled substances, fair association and horsemen's nonprofit organization licensees

Any fair association and horsemen's nonprofit organization licensee and any officer, director and employee of the licensee may be required by the commission to submit to tests to determine whether they are users of any controlled substances.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; implementing K.S.A. 1993 Supp. 74-8804, as amended by L. 1994, Ch. 146, Sec. 3, and K.S.A. 74-8814, as amended by L. 1994, Ch. 146, Sec. 6; effective Nov. 30, 1992; amended July 10, 1995.)

Kan. Admin. Regs. § 112-17-14 General regulation, county fair association and horsemen's nonprofit organization license order

(a) Unless otherwise provided by the commission in its organization license order, each county fair association and horsemen's nonprofit organization licensee shall conduct its race meeting in accordance with commission regulations governing:

(1) occupation licenses;

(2) racetrack officials;

(3) rules of racing;

(4) parimutuel wagering;

(5) animal health;

(6) security and safety;

(7) breed programs;

(8) harness racing; and

(9) simplified hearings.

(b) Any county fair association or horsemen's nonprofit organization licensee may request exceptions from commission regulations. Each request shall be made in writing and addressed to the attention of the executive director at the commission office. Each request shall include a statement identifying each exception requested and, for each exception, the following:

(1) a citation to the specific regulation for which the exception is requested; and

(2) a statement of justification for the request, which details how the exception will facilitate less costly and simplified procedures and requirements for the race meeting as provided in K.S.A. 1991 Supp. 74-8814(c).

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History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2, and 74-8814, as amended by L. 1992, Ch. 286, Sec. 6; implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2, and 74-8814, as amended by L. 1992, Ch. 286, Sec. 6; effective Nov. 30, 1992.)

Kan. Admin. Regs. § 112-17-15 Distribution of monies from horse fair racing benefit fund

The procedure for distributing monies from the horse fair racing benefit fund shall be as follows:

(a) Each applicant shall submit an application for funds to the commission which shall include:

(1) the name, address and telephone number of the applicant;

(2) the total amount of funds requested by the applicant, as well as a statement of justification for the request;

(3) the applicant's tax identification number;

(4) the applicant's proposed budget for the race meeting covered by the application;

(5) a detailed narrative, including invoices and receipts, specifically identifying the amount of funds requested by the applicant; and

(6) additional information as requested by the commission.

(b) Monies from the horse fair racing benefit fund shall be expended as follows:

(1) For administrative expenses reimbursable to the commission, which may include:

(A) the cost of stewards, racing judges, and assistant animal health officers performing services at the race meetings conducted by applicant;

(B) travel and lodging expenses of commissioners, commission employees or agents of the commission performing services at race meetings conducted by the applicant;

(D) such other administrative expenses as may be determined by the commission;

(2) for the cost of totalisator expenses incurred by the applicant;

(3) for the cost of background investigations of members of the applicant as required under the Kansas parimutuel racing act;

(4) for purse supplements at race meetings conducted by the applicant;

(5) for basic operating assistance grants to the applicant as determined by the commission; and

(6) for costs to the applicant for employment of key racing officials, as determined by the commission.

(c) Applications shall be submitted to the commission yearly, no later than December 31st of the calendar year preceding the race meeting for which funds are requested.

(d) Each application shall be reviewed and evaluated by commission staff for the purpose of making a recommendation to the commission.

(e) Each application shall be evaluated using the following criteria:

(1) The applicant's compliance with K.S.A. 74-8838;

(2) the adequacy of the detail in the application; and

(3) the quality of the justification stated in the application;

(f) Each applicant to whom funds are distributed shall provide audited financial statements within 60 days of the end of its fiscal year, including a statement of revenue and expenditures and a balance sheet. Within 45 days after the close of each race meeting, each applicant receiving funds shall provide payment documentation of the precise expenditures covered by the funds.

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History

History: (Authorized by K.S.A. 1995 Supp. 74-8838; implementing K.S.A. 1995 Supp. 74-8838; effective, T-112-6-29-93, June 29, 1993; effective Sept. 27, 1993; amended July 10, 1995; amended June 21, 1996.)

Article 18 Simulcasting Licenses

Kan. Admin. Regs. § 112-18-2 Application procedure for simulcasting applicant

(a) Any qualified organization licensee, as defined by 1992 SB 383, Sec. 2 may apply to the commission for a simulcasting license to display horse races or greyhound races, or both, on which parimutuel wagering is permitted.

(b) If the organization licensee is conducting races at a racetrack facility that is owned by a facility owner licensee, both licensees shall join in the application. Each application shall be verified under oath by the authorized officer or officers of the applicants, and each original shall be manually signed in ink.

(d) Each application and any attached documents required by these regulations shall be submitted as a single package. An original and six copies of the application and documents shall be filed with the executive director at the commission offices.

(e) For the 1992 calendar year, each application for a simulcasting license shall be filed at a time established by the commission to facilitate the development of a simulcasting schedule for the initial year of implementation. Beginning with the 1993 calendar year, each application for a simulcast license shall be filed at least 45 days before the beginning of the calendar year.

(f) Each simulcasting license shall be granted only upon the condition that the holder and each of its officers, directors, employees and agents shall accept, observe and enforce the regulations of the commission.

(g) Each simulcasting license shall expire at midnight on December 31 of the calendar year for which it was granted.

(h) The receipt of a simulcasting license does not vest in the simulcasting licensee any right to a subsequent simulcasting license.

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History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3; implementing L. 1992, Ch. 27, Sec. 2; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992.)

Kan. Admin. Regs. § 112-18-3 Application form for simulcasting applicant

(a) Each application for a simulcasting license shall contain the following:

(1) the name of the applicant or applicants, their business address or addresses, and their telephone number or numbers;

(2) the name, address, and telephone number of any individual who assisted the applicant or applicants in preparing their application;

(3) the written approval for the proposed simulcasting schedule from the recognized horsemen's group or the recognized greyhound owners' group, or both, as appropriate;

(4) for the calendar year, the proposed schedule of simulcast races or programs that the applicant or applicants plan to simulcast into the facility for as much of the calendar year as the respective horsemen's group and greyhound owners' group have approved. The application shall state the proposed simulcasting schedule as approved by the respective horsemen's group and greyhound owners' group for the entire calendar year when it is filed with the commission;

(5) for the calendar year, the proposed schedule of races or programs that the applicant or applicants plan to simulcast from the racetrack facility to any other racetrack facility, intertrack wagering facility, or off-track wagering facility, and a list of such facilities for as much of the calendar year as the respective horsemen's group and greyhound owners' group have approved. The application shall state the proposed simulcasting schedule as approved by the respective horsemen's group and greyhound owners' group for the entire calendar year when it is filed with the commission;

(6) certification that the applicant or applicants will comply with any provision of the interstate horse racing act of 1978 (15 U.S.C. 3001, et seq.) as in effect December 31, 1991, and submit documentation of the compliance;

(7) certification that the applicant or applicants will comply with the 80% threshold requirement of K.S.A. 74-8836 for a live racing program if the applicant conducts fewer than 10 live horse races during any day or 13 live greyhound races during any performance;

(8) one copy of each contract or agreement that the applicant has executed or proposes to execute and any modification or proposed modification of each contract or agreement with regard to the simulcasting license or races or wagering on the simulcast races. If the contract or agreement is an oral one, a written statement explaining the substance of the oral agreement shall be included;

(9) the names and addresses of the parties to each contract or agreement identified in paragraph (8) and any relationship of the parties to the applicant, the partners, associates, officers, directors, and principal owners either through family, business association, or other control;

(10) any plan to participate in a combined wagering pool, including the following information:

(A) the time and date of the races or programs for which combined pooling is planned;

(B) a description of the totalisator services to be used by the guest facility and host facility;

(C) a description of the backup communication device or procedure that would be used to communicate wagering information between the guest facility and host facility if the totalisator system or data line telephone system fails;

(D) a description of the data line or telephone line communication system to be used by the guest facility and the host facility;

(E) a description of the wagers that the applicant or applicants intend to offer on the races; and

(F) a description of the takeout rates requested for the combined wagering pool;

(11) a description of each special racing event that the applicant or applicants plan to simulcast;

(12) a statement describing how the granting of a simulcasting license to the applicant or applicants will enhance the breeding, owning, and training industries for horses or greyhounds; and

(13) a description of the impact that the proposed simulcasting will have on live racing and purses at the applicant's or applicants' racetrack facility.

(b) Each application shall describe the following factors, which may be considered by the commission in determining whether to grant or deny the application:

(1) the financial stability of the applicant or applicants and the effect that simulcasting will have on the economic viability of the applicant or applicants;

(2) the operating experience of the applicant or applicants;

(3) the regulatory compliance and conduct of the applicant or applicants; and

(4) the impact of the applicant's or applicants' proposed simulcasting on live racing and on purses at the racetrack facility.

(c) Upon receipt of a written request from an organization licensee, any facility owner, a recognized horsemen's group, or recognized greyhound group to submit a simulcasting dispute to the commission for determination pursuant to K.S.A. 74-8836(k), such proceedings shall be conducted by the commission in accordance with the Kansas administrative procedure act.

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History

History: (Authorized by and implementing K.S.A. 1996 Supp. 74-8804; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992; amended July 25, 1997.)

Kan. Admin. Regs. § 112-18-4 Special racing events

As used in these racing regulations, unless the context otherwise requires, special racing events are: (a) the breeders cup races;

(b) the breeders crown races;

(d) any event of the triple crown;

(e) the greyhound race of champions;

(f) any horse race with a purse of $100,000 or more;

(g) any greyhound race with a purse of $35,000 or more; or

(h) any grade I or II horse race.

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History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3; implementing L. 1992, Ch. 27, Sec. 2; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992.)

Kan. Admin. Regs. § 112-18-5 Report of expenses and allocation of purse monies between horses and greyhounds

Within five days of the completion of any simulcast race or program, each simulcasting licensee shall report in writing the simulcast expenses and revenues or an estimate of the simulcast expenses and revenues to the inspector of parimutuels or his designee. Each report shall detail those expenses incurred by the licensee that are directly related to the simulcast race or program. Each report shall itemize the monies available for purses and how they will be allocated between horses and greyhounds. Immediately upon receipt of expense billings, each licensee shall submit to the inspector of parimutuels a written report of actual simulcast expenses for those expenses previously estimated. Each licensee shall reconcile estimated and actual expenses weekly. Each report of expenses and allocation of purse monies shall be subject to audit by the commission.

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History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3; implementing L. 1992, Ch. 27, Sec. 2; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992.)

Kan. Admin. Regs. § 112-18-6 Expenses

(a) For simulcasting, expenses shall include:

(1) the actual amount paid by a simulcasting licensee to a racetrack for the use of its simulcast race or program;

(2) the actual amount paid by a simulcasting licensee for a decoder to descramble a simulcast signal received from a satellite. If a decoder is used for more than one race or program, the expense shall be prorated;

(3) the actual cost of installation for data lines for the purpose of combined wagering pools, prorated over a one-year period beginning with the first race or program in which the licensee participates in a combined wagering pool;

(4) the actual amount paid by the licensee for accounting services, wire transfer or like services approved by the executive director for the reconciliation of accounts, if the licensee participates in a combined wagering pool;

(5) the actual cost of a facsimile machine to be located in the totalisator room for the purpose of backup communication and manual merging, prorated when the licensee participates in a combined wagering pool and depreciated over not fewer than three years;

(6) the actual cost of one satellite receiving dish for receiving simulcast races, prorated per race or program and depreciated over not fewer than five years;

(7) the actual costs paid by the simulcasting licensee for long distance telephone service, for any dial-up computer phone lines and calls, for long distance telephone service for facsimile transmissions necessary for a combined wagering pool or for calls to the sending or host track's stewards' or judges' stand, mutuel room, totalisator room or track management offices as part of a simulcast race or program;

(8) the actual cost paid by a simulcasting licensee for totalisator interface fees for a simulcast race or program;

(9) the actual cost paid by a simulcasting licensee for additional video fees incurred to provide patron information for a simulcast race or program;

(10) the actual cost paid by the simulcasting licensee to the racing form or like entity to acquire information on past performance lines;

(11) the actual totalisator cost paid by the simulcasting licensee for the additional handle created by the simulcast race or program; and

(12) other costs, if the commission grants prior approval for the costs.

(b) Expenses claimed by the licensee shall not exceed the revenues received by the licensee for a simulcast race or program. No licensee shall carryover expenses from one simulcast race or program to a future simulcast race or program.

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History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3; implementing L. 1992, Ch. 27, Sec. 2; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992.)

Kan. Admin. Regs. § 112-18-7 Changes to approved simulcasting schedule

Any simulcasting licensee may apply to the commission or the executive director for changes in its approved simulcasting schedule. Each application for change in schedule shall be submitted 24 hours before the proposed simulcast race or program that is subject of the change. Each application shall state the reasons for the proposed change and shall include approval from the respective greyhound owners' group or recognized horsemen's group, or both, as appropriate. Each condition of a simulcasting license shall apply to any change in the simulcasting schedule.

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History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3 and L. 1992, Ch. 286, Sec. 2; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992.)

Kan. Admin. Regs. § 112-18-8 Fee for simulcasting race or performance

There shall be no additional race day fee for simulcast races or programs conducted on the same day as live races. Each simulcast race or program displayed on a day when live races are not conducted shall constitute a race day, and each simulcasting licensee shall pay a license fee for the simulcasting race day that is identical to the license fee it pays for a live racing day.

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History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2, and implementing K.S.A. 1991 Supp. 74-8813(g), as amended by L. 1992, Ch. 27, Sec. 5; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992.)

Kan. Admin. Regs. § 112-18-9 Duties of receiving facility

(a) A simulcasting licensee that conducts parimutuel wagering on a simulcast race or program shall act as a receiving facility on those dates. Each receiving facility shall provide communication facilities, which shall include all wire, radio, optical, satellite, and other electromagnetic systems used to receive audio and visual transmissions between the sending racetrack, host facility, and receiving facility.

(b) Before the beginning of the transmission of the first simulcast race or program of each day, each receiving facility shall initiate a test program of its receiver, decoder, and data communication to ensure the proper operation of the system. If a test program run under this subsection is unsuccessful or indicates a malfunction of any component of the receiving system, the licensee shall not conduct parimutuel wagering on a simulcast race or program until a successful test program is completed.

(c) After each simulcast race or program, each receiving facility shall provide the reports of its parimutuel operations as required by K.A.R. 112-9-8 for both simulcast and live races.

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History

History: (Authorized by and implementing K.S.A. 74-8804 and 74-8836; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992; amended Sept. 6, 1994; amended Oct. 17, 2003.)

Kan. Admin. Regs. § 112-18-10 Duties of sending racetrack

(a) A simulcasting licensee that simulcasts races conducted by the licensee acts as a sending racetrack on the dates the races or program are conducted and simulcast.

(b) Each sending racetrack shall be responsible for the content of the simulcast and shall use all reasonable efforts to present a simulcast which offers the viewers an exemplary depiction of the performance, continuity of programming between racing events, and, if it is also acting at the host facility for a combined wagering pool, a periodic display of wagering information.

(c) Each sending racetrack shall provide transmission equipment of acceptable broadcast quality that does not interfere with the closed-circuit television system of the receiving location.

(d) The commission may require a simulcasting licensee to scramble its signal. If so required, each simulcast shall be encrypted using a time displacement decoding algorithm encryption system or an equivalent encryption system approved by the commission.

(e) Unless otherwise permitted by the commission, each simulcast must contain in its video content:

(1) the date;

(2) a digital display of the actual time of day at the sending racetrack;

(3) the name of the sending racetrack;

(4) the number of the race being displayed; and

(5) any other relevant information available to patrons at the host racetrack.

(f) Before the beginning of the transmission of the first simulcast race or program of each day, each sending racetrack shall initiate a test program of its transmitter, encryption equipment and data communication to ensure proper operation of the system. If a test program run under this subsection is unsuccessful or indicates a malfunction of any component of the sending racetrack's system, the simulcasting licensee shall not transmit any races until a successful test program is completed.

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History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3; implementing L. 1992, Ch. 27, Sec. 2; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992.)

Kan. Admin. Regs. § 112-18-11 Procedures for lost video signal

(a) A simulcasting licensee shall not merge wagers on a simulcast race until the simulcasting licensee is receiving the video signal from the sending racetrack. If the signal is not received, the simulcasting licensee shall establish a telephone linkup with the sending racetrack's stewards, racing judges, or simulcast official and shall announce to the patrons all pertinent information.

(b) If the simulcasting licensee loses the video signal from the sending racetrack, the simulcasting licensee shall immediately notify the sending racetrack of the lost signal.

(c) If the video signal is lost after wagering has commenced, wagering shall be suspended while it is determined if the signal can be reestablished. An announcement shall be made to the patrons advising them that wagering has been temporarily suspended due to video problems. The results and prices of each race that goes post while the signal is lost shall be received through the tote linkup. An announcement of the results shall be made to the patrons.

(d) If the video signal cannot be reestablished, the simulcast licensee shall cease accepting wagers. The licensee may order a refund of all monies wagered on future races, or at the determination of the mutuel manager, the outstanding wagers on future races may remain in the system. If the decision is made to keep outstanding wagers in the system, a ticket list shall be run showing all outstanding wagers on the remainder of the performance. The mutuel manager shall verify the prices and results of all races in which there are outstanding wagers, and the results of these races shall be announced to the patrons.

(e) If the licensee loses the video signal as described above in subsection (c) or (d), the licensee shall file a written report with the inspector of parimutuels.

(f) Wagers that encompass more than one race shall be unaffected by signal problems encountered in any race of the sequence other than the first.

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History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8836; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992; amended Sept. 6, 1994; amended Jan. 11, 2002; amended Oct. 17, 2003; amended Jan. 18, 2008.)

Kan. Admin. Regs. § 112-18-12 Combined wagering pools, general provisions

(a) With the prior approval of the commission, parimutuel pools offered by a simulcasting licensee that participates in a simulcast may be combined with corresponding wagering pools offered by the other racetracks or facilities that participate in the simulcast to form a combined wagering pool.

(b) Each contract governing participation in a combined wagering pool shall be submitted to the commission for approval in accordance with K.A.R. 112-18-3(a)(8).

(c) In determining whether to approve an interstate combined wagering pool that does not include the sending racetrack, the commission shall consider, and may approve, the use of a wager that is not used at the sending racetrack.

(d) Any wager that has been approved for the use of the simulcasting licensee may be offered, although types of pools that require more races than those included in the simulcast may not become part of the combined wagering pool.

(e) The content and format of the visual display of racing and wagering information at facilities in other racing jurisdictions in an interstate combined wagering pool need not be identical to the information required to be displayed by these racing regulations.

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History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992.)

Kan. Admin. Regs. § 112-18-13 Formation of combined wagering pool

(a) Wagering data shall be transmitted through one of the methods authorized by this paragraph in the following order of preference:

(1) via a dedicated leased line data circuit;

(2) via a dial-up data circuit;

(3) via telecopy or facsimile machine on a separate telephone line; or

(4) by voice via cellular or dial-up telephone.

(b) Each guest and host facility shall have adequate equipment to transmit the wagering data by any of the methods listed in paragraph (a) of this regulation.

(c) Except as otherwise provided in this paragraph, the odds and prices for a combined wagering pool shall be calculated in accordance with the laws of the jurisdiction where the host facility is located. In determining the amount distributable to the wagerers, each simulcasting licensee shall use the total takeout required in the jurisdiction where the host facility is located except as provided in 1992 SB 383, Sec. 2(j)(2). The simulcasting licensee may use the net pool pricing method for determining the payoff prices.

(d) Each simulcasting licensee shall ensure that the necessary records are maintained regarding the amounts wagered at its racetrack for accounting, auditing and reporting purposes.

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History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992.)

Kan. Admin. Regs. § 112-18-14 Distribution of combined wagering pools

(a) Each wager is made at the point of sale in the state where the wager is placed.

(b) Each payoff attributable to the simulcasting licensee shall be based on the actual winnings indicated by the totalisator wagering data.

(c) Each total takeout applicable to the wagers received in this state for a combined wagering pool shall be distributed in accordance with the Kansas parimutuel racing act. Each gain or loss caused by a difference in takeout totals shall be part of the simulcasting licensee's revenue or expense from the interstate simulcast.

(d) Each surcharge or other withholding, other than the takeout authorized by law, shall be applied only in the jurisdiction imposing the surcharge or withholding.

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History

History: (Authorized by K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; and implementing K.S.A. 1991 Supp. 74-8823, as amended by L. 1992, Ch. 27, Sec. 10; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992.)

Kan. Admin. Regs. § 112-18-15 Breakage, interstate combined wagering pool

The ratio of each simulcasting licensee's allocation of the breakage to the total breakage in an interstate combined wagering pool shall be equal to the ratio of the dollars contributed to the combined wagering pool from the simulcasting licensee to the total amount of the combined wagering pool.

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History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992.)

Kan. Admin. Regs. § 112-18-16 Report to commission, combined wagering pool

Each simulcasting licensee participating in a combined wagering pool shall submit to the commission a report on the pool not later than the close of the next business day after the date of the race or program for which the pool was formed. Each report shall contain:

(1) the total amount of the combined wagering pool;

(2) the total amount of the combined wagering pool generated by wagers received in this state;

(3) the total winnings for the combined wagering pool;

(4) the total winnings attributable to wagers received in this state;

(5) the total commission derived from the combined wagering pool; and

(6) the total commission derived from the simulcasting licensee's share of the combined wagering pool.

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History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992.)

Kan. Admin. Regs. § 112-18-17 Manual merge

(a) If the guest facility's computer system fails to adequately transmit wagering data to the host facility, and a manual merge will not endanger the pools at the host facility, the host facility may manually merge the pools.

(1) To merge the pools manually, each guest facility's parimutuel representative shall notify the host facility via telecopy or facsimile machine of:

(A) the total amount in the pool;

(B) the total dollars on winning wagers;

(2) For purposes of declaring the race official, the following individuals shall be notified when the procedure is complete:

(A) the stewards, racing judges or simulcast official at the sending racetrack; and

(B) the stewards, racing judges or simulcast official at both the host facility, if different from the sending racetrack, and guest facility.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1993 Supp. 74-8804; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992; amended Sept. 6, 1994.)

Kan. Admin. Regs. § 112-18-18 Failure to merge

(a) Except as otherwise provided by this regulation, if it becomes impossible to successfully merge a guest facility's wagers in the combined wagering pool, the simulcasting licensee may either order a refund of all monies wagered or calculate the pool as a separate pool to be distributed in accordance with the Kansas parimutuel racing act, including takeout. However, each pool containing a carryover feature or a type of wager not available in Kansas shall be refunded.

(1) As soon as failure to merge is acknowledged, a parimutuel representative at the guest facility shall notify the simulcast coordinator.

(2) The simulcast coordinator shall immediately make an announcement to the patrons via intercom or TV monitors, explaining the circumstances.

(b) Each simulcast licensee shall be required to advise patrons of its failure-to-merge policy by prominently displaying notice in the wagering areas, other special patron areas, and the official racing program.

(c) Each contract for combined wagering pools entered into by a simulcasting licensee shall contain a provision stating that the simulcasting licensee is not liable for any measures taken that could result in a guest facility's wagers not being accepted into a combined wagering pool formed by the licensee if either of the following occurs:

(1) It becomes impossible to successfully merge the wagers placed in another state in the combined wagering pool formed by the simulcasting licensee.

(2) The commission's or simulcasting licensee's representative determines that attempting to transfer pool data from the guest facility will endanger the simulcasting licensee's wagering pool.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 74-8804; implementing K.S.A. 74-8836; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992; amended Sept. 6, 1994; amended Oct. 17, 2003.)

Kan. Admin. Regs. § 112-18-19 Responsibility for the accuracy of transmitted wagering data

The accuracy of all transmitted wagering data shall be the responsibility of the host facility. Responsibility will shift to a guest facility if the transmission of incorrect data would have been detected had the guest facility properly confirmed the transmitted check sum.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1991 Supp. 74-8804, as amended by L. 1992, Ch. 27, Sec. 3, and L. 1992, Ch. 286, Sec. 2; effective, T-112-4-27-92, April 27, 1992; effective, T-112-9-10-92, Sept. 10, 1992; effective Nov. 23, 1992.)

Kan. Admin. Regs. § 112-18-20 Accuracy of payoffs

The simulcast licensee may delay paying mutuel tickets until the accuracy of the payoffs is confirmed.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 1993 Supp. 74-8804; effective Sept. 6, 1994.)

Kan. Admin. Regs. § 112-18-21 Election and recognition of recognized greyhound owners' group

(a) Each recognized greyhound owners' group for each racetrack facility licensed by the Kansas racing and gaming commission shall be elected pursuant to K.S.A. 74-8802(ff), and amendments thereto.

(b) Each recognized greyhound owners' group shall be duly recognized by the commission before assuming any duties concerning the approval of any simulcast schedule proposed by an organization licensee.

(c) Only one group for greyhound owners as appropriate for each race meeting shall be recognized by the commission for the purpose of serving at each racetrack facility.

(d) Each recognized greyhound owners' group shall be responsible for performing the following:

(1) Negotiating agreements pertaining to simulcast license applications;

(2) signing simulcast license applications pursuant to K.S.A. 74-8836(d)(2), and amendments thereto; and

(3) determining how the purse money will be distributed for horse and greyhound purses pursuant to K.S.A. 74-8836(g)(3) and (4), and amendments thereto.

(e) Each recognized greyhound owners' group shall consist of five individuals elected in accordance with this regulation.

(f) Elections for recognized greyhound owners' groups shall commence on August 1 of each odd-numbered year unless held sooner according to the provisions of subsection (k) of this regulation.

(g) Except as otherwise provided in this regulation or by commission order, each member of a greyhound owners' group shall serve a term of two years, commencing on October 1 of the year in which the recognized greyhound owners' group is elected, and ending on September 30 of the next odd-numbered year or until the member's successor has been duly elected and recognized by the commission after the commission is presented with a petition in accordance with subsection (k) of this regulation.

(h) To be eligible to vote in the election process at the racetrack facility where the recognized greyhound owners' group is to serve, a voter shall have been a licensed greyhound owner or kennel owner participating as an owner on and after December 1 of the year before the election and through July 31 of the election year, and shall have raced at that racetrack facility on and after January 1 and through July 31 of the election year.

(i) The procedure for conducting an election of a recognized greyhound owners' group shall be as follows:

(1) On August 1 of each odd-numbered year, a notice of elections to be held for a recognized greyhound owners' group for the racetrack facility in question shall be posted conspicuously by the commission or its designee, if any, pursuant to K.S.A. 74-8802(ff), and amendments thereto. The notice shall be posted throughout each racetrack facility, including the following:

(A) The racing office;

(B) the commission offices; and

(C) any other places greyhound owners are known to congregate. Notice of elections to be held may also be published in one or more greyhound parimutuel industry publications at the commission's direction.

(2) On August 1 of each odd-numbered year, the notice of elections to be held shall be mailed by the commission or its designee, if any, pursuant to K.S.A. 74-8802(ff), and amendments thereto, by depositing the notice in the United States mail, first-class postage prepaid, to each eligible voter at the eligible voter's last known address appearing in the records of the Kansas racing and gaming commission.

(3) Nominating petitions shall be made available by the commission or its designee, if any, pursuant to K.S.A. 74-8802(ff), and amendments thereto, for distribution to any eligible voter upon request in the Kansas racing and gaming commission office. The nominating petitions shall be in a form approved by the commission for the purpose of nominating individuals to stand for election to a recognized greyhound owners' group. The nominating petitions shall contain a statement signed by the nominee that the nominee agrees to perform the following:

(A) Serve as a member of the recognized group for which the nominee is standing for election;

(B) be reasonably available to attend meetings of the recognized group for which the nominee is standing for election;

(D) obtain the signatures of three other eligible voters on the nominating petition.

(4) Nominating petitions for election to a recognized greyhound owners' group shall be returned to the Kansas racing and gaming commission office in Topeka by 12 o'clock noon of the third Friday following the first Monday in August following the posting of the notice of election required by paragraph (i)(1) of this regulation.

(5) After the close of the nominating period prescribed in paragraph (i)(4) of this regulation, the nominating petitions shall be reviewed by commission staff or its designee, if any, pursuant to K.S.A. 74-8802(ff) and amendments thereto, in accordance with procedures approved by the commission to confirm the following:

(A) That the signatures on the nominating petitions appear on the list of eligible voters in the records of the Kansas racing and gaming commission; and

(B) that the required number of signatures of eligible voters has been received by each nominee.

(6) Once the nominating petitions have been processed by the commission staff or its designee, if any, pursuant to K.S.A. 74-8802(ff), and amendments thereto, a ballot shall be prepared by the commission that shall include the following:

(A) A list of names of the duly nominated persons standing for election to the recognized group;

(B) a serial number;

(D) a statement that the five nominees receiving the highest number of votes from those voting in the election shall be elected to serve as the recognized greyhound owners' group for the racetrack facility at which the election is being conducted for the term provided in subsection (g) of this regulation;

(E) a statement that if one or more of the members elected to the recognized greyhound owners' group resigns or for any other reason fails to complete the term of service as provided in subsection (g) of this regulation, then the member or members shall be replaced by the nominee or nominees having received the next highest number of votes from those voting in the election. The nominee or nominees shall serve out the remainder of the term for any member or members who failed to complete the member's or members' term; and

(F) a statement that proxy voting shall not be permitted.

(7) On or before September 1 of each odd-numbered year following the preparation of the ballots as prescribed by paragraph (i)(6) of this regulation the following actions shall be performed by the commission or its designee, if any, pursuant to K.S.A. 74-8802(ff) and amendments thereto:

(A) Conspicuously post copies of the ballot clearly and indelibly marked "SAMPLE" throughout each racetrack facility, including the following:

(i) The racing office;

(ii) the commission offices; and

(iii) any other places greyhound owners are known to congregate; and

(B) mail official ballots to each voter who is eligible to vote, by depositing the ballot in the United States mail, first-class postage prepaid, to each voter's last known address as shown in the records of the Kansas racing and gaming commission.

(8) Ballots shall be returned to the Kansas racing and gaming commission office in Topeka by 12 o'clock noon of the third Friday following the first Monday in September following the posting of the sample ballot as required by paragraph (i)(7)(A) of this regulation.

(9) On the Wednesday following the deadline set out in paragraph (i)(8) above, an open meeting shall be convened by the commission chairperson, executive director, and general counsel at the commission offices, and the ballots shall be counted by these individuals.

(10) In the event of a tie in the number of votes received by one or more nominees, lots shall be cast to settle the election results.

(11) Ten days following the counting of the ballots or as soon thereafter as the commission meeting schedule will permit, a certificate of election shall be executed by the commission to each of the five nominees receiving the highest number of votes designating those nominees as duly elected members of a recognized greyhound owners' group having been elected in accordance with this regulation.

(j) Within 10 days following the counting of the ballots in any election held pursuant to this regulation, any commission staff member, nominee, or eligible voter may file a sworn complaint with the commission concerning the conduct in any election held pursuant to this regulation. A hearing shall be commenced by the commission upon the receipt of a complaint in accordance with the Kansas administrative procedure act, K.S.A. 77-501 et seq. The filing of a complaint with the commission concerning the conduct in an election held pursuant to this regulation shall not impair or inhibit the duly elected recognized group from functioning, pending resolution of the complaint.

(k) No election for a recognized greyhound owners' group that is conducted within 24 months of a prior election shall be recognized by the commission, except upon the filing of a petition with the commission to conduct a new election signed by at least 30 percent of the number of eligible voters that actually voted in the preceding election.

(l) Upon receipt of a petition for a new election signed by the required number of voters set out in subsection (k) above, an election for a new recognized greyhound owners' group shall be conducted by the commission as soon as practicable in accordance with this regulation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1999 Supp. 74-8804; implementing K.S.A. 1999 Supp. 74-8802 and K.S.A. 1999 Supp. 74-8836; effective Nov. 1, 1996; amended Jan. 30, 1998; amended Aug. 25, 2000.)

Kan. Admin. Regs. § 112-18-22 Election and recognition of recognized horsemen's group

(a) Each recognized horsemen's group for each racetrack facility licensed by the Kansas racing and gaming commission shall be elected pursuant to K.S.A. 74-8802(gg) and amendments thereto.

(b) Each recognized horsemen's group shall be duly recognized by the commission before assuming any duties concerning the approval of any simulcast schedule proposed by an organization licensee.

(c) Only one group for horsemen as appropriate for each race meeting shall be recognized by the commission for the purpose of serving at each racetrack facility.

(d) Each recognized horsemen's group shall be responsible for performing the following:

(1) Negotiating agreements pertaining to simulcast license applications;

(2) signing simulcast license applications pursuant to K.S.A. 74-8836(d)(2), and amendments thereto; and

(3) determining how the purse money shall be distributed for horse and greyhound purses pursuant to K.S.A. 74-8836(g)(3) and (4) and amendments thereto.

(e) Each recognized horsemen's group shall consist of five individuals elected in accordance with this regulation.

(f) Elections for recognized horsemen's groups shall commence on August 1 of each even-numbered year unless held sooner pursuant to the provisions of subsection (k) of this regulation.

(g) Except as otherwise provided in this regulation or by commission order, each member of a recognized horsemen's group shall serve a term of two years, commencing on October 1 of the year in which the recognized horsemen's group is elected, and ending on September 30 of the next even-numbered year or until the member's successor has been duly elected and recognized by the commission after the commission is presented with a petition in accordance with subsection (k) of this regulation.

(h) To be eligible to vote in the election process at the racetrack facility where the recognized horsemen's group is to serve, a voter shall have been licensed as a horse owner or trainer and have raced at that racetrack facility during the year preceding the election year.

(i) The procedure for conducting an election of a recognized horsemen's group shall be as follows:

(1) On August 1 of each even-numbered year, a notice of elections to be held for a recognized horsemen's group for the racetrack facility in question shall be posted conspicuously by the commission or its designee, if any, pursuant to K.S.A. 74-8802(gg), and amendments thereto. The notice shall be posted throughout each racetrack facility, including the following:

(A) The racing office;

(B) the commission offices; and

(C) any other places horsemen are known to congregate. Notice of elections to be held may also be published in one or more horse parimutuel industry publications at the commission's discretion.

(2) On August 1 of each even-numbered year, the notice of elections to be held shall be mailed by the commission or its designee, if any, pursuant to K.S.A. 74-8802(gg), and amendments thereto, by depositing the notice in the United States mail, first-class postage prepaid, to each eligible voter at the eligible voter's last known address appearing in the records of the Kansas racing and gaming commission.

(3) Nominating petitions shall be made available by the commission or its designee, if any, pursuant to K.S.A. 74-8802(gg), and amendments thereto, for distribution to any eligible voter upon request in the Kansas racing and gaming commission office. The nominating petitions shall be in a form approved by the commission for the purpose of nominating individuals to stand for election to a recognized horsemen's group. The nominating petitions shall contain a statement signed by the nominee that the nominee agrees to perform the following:

(A) Serve as a member of the recognized group for which the nominee is standing for election;

(B) be reasonably available to attend meetings of the recognized group for which the nominee is standing for election;

(D) obtain the signature of 10 other eligible voters on the nominating petition.

(4) Nominating petitions for election to a recognized horsemen's group shall be returned to the Kansas racing and gaming commission office in Topeka by 12 o'clock noon of the third Friday following the first Monday in August following the posting of the notice of election required by paragraph (i)(1) of this regulation.

(5) After the close of the nominating period prescribed in paragraph (i)(4) of this regulation, the nominating petitions shall be reviewed by the commission staff or its designee, if any, pursuant to K.S.A. 74-8802(gg), and amendments thereto, in accordance with procedures approved by the commission to confirm the following:

(A) That the signatures on the nominating petitions appear on the list of eligible voters in the records of the Kansas racing and gaming commission; and

(B) that the required number of signatures of eligible voters has been received by each nominee.

(6) Once the nominating petitions have been processed by the commission staff or its designee, if any, pursuant to K.S.A. 74-8802(gg), and amendments thereto, a ballot shall be prepared by the commission, which shall include the following:

(A) A list of names of the duly nominated persons standing for election to the recognized group;

(B) a serial number;

(D) a statement that the five nominees receiving the highest number of votes from those voting in the election shall be elected to serve as the recognized horsemen's group for the racetrack facility at which the election is being conducted for the term provided in subsection (g) of this regulation;

(E) a statement that if one or more of the members elected to the recognized horsemen's group resigns or for any other reason fails to complete the term of service as provided in subsection (g) of this regulation, then the member or members shall be replaced by the nominee or nominees having received the next highest number of votes from those voting in the election. The nominee or nominees shall serve out the remainder of the term of any member or members who failed to complete the member's or members' term; and

(F) a statement that proxy voting shall not be permitted.

(7) The commission or its designee, if any, pursuant to K.S.A. 74-8802(gg), and amendments thereto, shall perform the following on or before September 1 of each even-numbered year following the preparation of the ballots as prescribed by paragraph (i)(6) of this regulation:

(A) Conspicuously post copies of the ballot clearly and indelibly marked "SAMPLE" throughout each racetrack facility, including the following:

(i) The racing office;

(ii) the commission offices; and

(iii) any other places horsemen are known to congregate; and

(B) mail official ballots to each voter who is eligible to vote, by depositing the ballots in the United States mail, first-class postage prepaid, to each voter's last known address as shown in the records of the Kansas racing and gaming commission.

(9) On the Wednesday following the deadline set out in paragraph (i)(8) above, the commission chairman, executive director, and general counsel shall convene an open meeting at the commission offices and count the ballots.

(10) In the event of a tie in the number of votes received by one or more nominees, lots shall be cast to settle the election results.

(11) Ten days following the counting of the ballots or as soon thereafter as the commission meeting schedule will permit, a certificate of election shall be executed by the commission to each of the five nominees receiving the highest number of votes designating those nominees as duly elected members of a recognized horsemen's group having been elected in accordance with this regulation.

(j) Within 10 days following the counting of the ballots in any election held pursuant to this regulation, any commission staff member, nominee, or eligible voter may file a sworn complaint with the commission concerning the conduct in any election held pursuant to this regulation. A hearing shall be commenced by the commission upon the receipt of a complaint, in accordance with the Kansas administrative procedure act, K.S.A. 77-501 et seq. The filing of a complaint with the commission concerning the conduct in an election held pursuant to this regulation shall not impair or inhibit the duly elected recognized group from functioning pending resolution of the complaint.

(k) No election for a recognized horsemen's group that is conducted within 24 months of a prior election shall be recognized by the commission, except upon the filing of a petition with the commission to conduct a new election, signed by at least 30 percent of the number of eligible voters that actually voted in the preceding election.

(l) Upon receipt of a petition for a new election signed by the required number of voters set out in subsection (k) above, an election for a new recognized horsemen's group shall be conducted by the commission as soon as practicable in accordance with this regulation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 1998 Supp. 74-8804; implementing K.S.A. 1998 Supp. 74-8802 and K.S.A. 1998 Supp. 74-8836; effective Nov. 1, 1996; amended Feb. 11, 2000.)

Article 100 General Provisions and Definitions

Kan. Admin. Regs. § 112-100-1 Definitions

In addition to the definitions in the Kansas expanded lottery act, the following terms as used in these regulations shall have the meanings specified in this regulation, unless the context requires otherwise:

(a) "The act" means the Kansas expanded lottery act.

(b) "The commission" means the Kansas racing and gaming commission.

(d) "Facility manager" means a lottery gaming facility manager or racetrack gaming facility manager that is certified to operate a lottery gaming facility or racetrack gaming facility as indicated by a certificate issued by the commission.

(e) "Gaming facility" means a lottery gaming facility or a racetrack gaming facility.

(f) "Junket" means a promotional trip to a gaming facility that is partially or wholly funded by a facility manager.

(g) "Person" means any natural person, association, limited liability company, corporation, sole proprietorship, partnership, or other legal entity.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8751 and 74-8772; implementing K.S.A. 2007 Supp. 74-8751; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-100-2 Duty to disclose material and complete information

(a) An applicant for a certificate, certificate renewal, license, or license renewal shall not provide false information on any application form or to commission staff.

(b) Each applicant for a certificate, certificate renewal, license, or license renewal shall disclose any material fact required on any application form.

(c) Unless otherwise provided in these regulations, each applicant for a certificate, certificate renewal, license, or license renewal and each holder of one of those documents shall report any change in the application or renewal information. The applicant or holder shall notify the commission in writing within 11 days of each change.

(d) Each licensee and each certificate holder shall report any suspected illegal activity or regulatory violations that impact Kansas to the commission security staff within 24 hours of becoming aware of the matter.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2010 Supp. 74-8751 and 74-8772; effective Sept. 26, 2008; amended Dec. 9, 2011.)

Kan. Admin. Regs. § 112-100-3 Duty to submit to background investigations and to cooperate

(a) Each applicant for a certificate or license and each person whom the executive director determines to be subject to a background investigation pursuant to the act or these regulations shall complete any application or disclosure forms requested by the commission staff and shall submit to being fingerprinted.

(b) Each person that is subject to investigation shall have a duty to cooperate with the commission during any investigation and to provide the information that the commission requests.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-100-4 Knowledge of the law and regulations

Each applicant, certificate holder, or licensee shall be responsible for knowing and complying with the applicable provisions of the act, these regulations, and each amendment to the law or regulations relating to the certificate or license.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-100-5 Display of credentials

Each person who has been issued a current license, certificate, or temporary permit by the commission shall carry a commission-issued badge in a conspicuous manner while the person is working in a gaming facility.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-100-6 Loss of badges

Each person who loses or destroys any commission-issued badge shall perform the following, no later than 24 hours after the loss or destruction:

(a) Notify the commission licensing office at the gaming facility; and

(b) obtain a replacement badge.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-100-7 Nontransferability

Each license, certificate, and badge issued by the commission shall be nontransferable.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective Sept. 26, 2008.)

Article 101 Facility Manager Certification

Kan. Admin. Regs. § 112-101-1 Prohibition against uncertified management of a gaming facility

No person may manage a gaming facility unless that person is a lottery gaming facility manager or racetrack gaming facility manager certified by the commission with a current facility manager's certificate.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8751 and 74-8772; implementing K.S.A. 2007 Supp. 74-8751; effective April 17, 2009.)

Kan. Admin. Regs. § 112-101-2 Facility manager application procedure

Each lottery gaming facility manager and each racetrack gaming facility manager that seeks to be certified as a facility manager shall submit the following to the commission staff:

(a) A completed application for the certificate on a commission-approved form;

(b) any supporting documents;

(c) all plans required by these regulations, including the internal controls system plan, surveillance system plan, security plan, responsible gaming plan, and, if applicable, the plan for compliance with the requirements for live racing and purse supplements established pursuant to the act;

(d) a background investigation deposit as specified in K.A.R. 112-101-5;

(e) prospective financial statements, including a one-year forecast and a three-year projection, that have been audited by an independent certified public accountant or independent registered certified public accounting firm as to whether the prospective financial information is properly prepared on the basis of the assumptions and is presented in accordance with the relevant financial reporting framework; and

(f) any other information that the commission deems necessary for investigating or certifying the applicant and its officers, directors, and key employees and any persons directly or indirectly owning an interest of at least 0.5% in the applicant.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8751 and 74-8772; implementing K.S.A. 2007 Supp. 74-8734, 74-8741, 74-8751 and 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-101-3 Background investigations

(a) Each applicant for a facility manager's certificate and each person whom the executive director deems to have a material relationship to the applicant, including the applicant's officers, directors, and key gaming employees and any persons known to directly or indirectly own an interest of at least 0.5% in the applicant, shall submit to a background investigation conducted by the commission's director of security or other person designated by the executive director. For purposes of this regulation, a material relationship shall mean a relationship in which the person has an influence on the applicant or facility manager or its business and shall be determined according to the criteria in paragraphs (b)(1) through (3).

(b) In determining the level of background investigation that a person shall undergo, all relevant information, including the following, may be considered by the executive director:

(1) The person's relationship to the applicant;

(2) the person's interest in the management of the applicant;

(3) the person's participation with the applicant;

(4) if applicable, identification of the person as a shareholder in a publicly traded company; and

(5) the extent to which the person has been investigated in another jurisdiction or by other governmental agencies.

(c) Each person subject to a background investigation shall submit a complete personal disclosure to the commission on a commission-approved form and shall submit any supporting documentation that the commission staff requests.

(d) Each person that is subject to investigation shall have a duty to fully cooperate with the commission during any investigation and to provide any information that the commission requests.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-101-4 Affirmative duty to demonstrate qualifications

Each applicant for a facility manager's certificate shall have an affirmative duty to the commission to demonstrate that the applicant, including the applicant's directors, officers, owners, and key employees, is qualified for certification.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-101-5 Fees and costs

(a) Each applicant for a facility manager's certificate and each applicant for a certificate as a racetrack gaming facility manager shall provide a background investigation deposit to the commission. That deposit shall be assessed for all fees and costs incurred by the commission in performing the background investigation of the applicant, its officers, directors, and key gaming employees, any persons known to directly or indirectly own an interest of at least 0.5% in the applicant, and any other person as the executive director deems necessary, including any person specified in article 102 or 103.

(b) Any facility manager that wishes to renew its certificate may be required to provide a background investigation deposit. The facility manager shall be assessed for all fees and costs incurred by the commission in performing the background investigation of the applicant, its officers, directors, and key gaming employees, any persons known to directly or indirectly own an interest of at least 0.5% in the applicant, and any other person as the executive director deems necessary, including any person specified in article 102 or 103.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8751 and 74-8772; implementing K.S.A. 2007 Supp. 74-8734, 74-8741, 74-8751, and 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-101-6 Disqualification criteria

(a) A facility manager's certificate shall be denied or revoked by the commission if the applicant or certificate holder itself has been convicted of any felony, crime involving gambling, or crime of moral turpitude.

(b) A certificate may be denied, suspended, or revoked by the commission, and a certificate holder may be otherwise sanctioned by the commission as specified in K.A.R. 112-113-1 if the certificate holder or its officers, directors, key gaming employees, or any person directly or indirectly owning an interest of at least 0.5% in the applicant meets any of the following conditions:

(1) Has any employees who have knowingly or negligently provided false or misleading material information to the commission or its staff;

(2) fails to notify the commission staff about a material change in the applicant's or certificate holder's application within seven days;

(3) is delinquent in paying for the cost of regulation, oversight, or background investigations required under the act or any regulations adopted under the act;

(4) has violated any provision of the act or any regulation adopted under the act;

(5) has failed to meet any monetary or tax obligation to the federal government or to any state or local government;

(6) is financially delinquent to any third party;

(7) has failed to provide information or documentation requested in writing by the commission in a timely manner;

(8) does not consent to or cooperate with investigations, inspections, searches, or having photographs and fingerprints taken for investigative purposes;

(9) has failed to meet the requirements of K.A.R. 112-101-4;

(10) has officers, directors, key gaming employees, or persons directly or indirectly owning an interest of at least 0.5% that have any present or prior activities, criminal records, reputation, habits, or associations meeting either of the following criteria:

(A) Pose a threat to the public interest or to the effective regulation of gaming; or

(B) create or enhance the dangers of unfair or illegal practices in the conduct of gaming; or

(11) has violated any contract provision with the Kansas lottery.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8751 and 74-8772; effective April 17, 2009; amended April 1, 2011.)

Kan. Admin. Regs. § 112-101-7 Certificate duration

Each certificate for a gaming manager shall be issued by the commission for no longer than two years and one month. Each certificate shall expire on the last day of the month of the anniversary date of issue.

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History

History: (Authorized by K.S.A. 2007 Supp. 74-8751 and 74-8772; implementing K.S.A. 2007 Supp. 74-8751; effective April 17, 2009.)

Kan. Admin. Regs. § 112-101-8 Certificate renewal

(a) Each renewal application for a facility manager's certificate shall be submitted to the commission staff at least 120 days before the expiration of the current certificate. Each certificate holder shall submit the renewal application on a commission-approved form along with any supporting documents.

(b) Each person seeking to renew its gaming certificate shall be required to meet all requirements for an initial gaming certificate.

(c) An applicant's timely submission of a renewal application shall suspend the expiration of the certificate until the commission has taken action on the application. This suspended expiration shall not exceed six months.

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History

History: (Authorized by K.S.A. 2010 Supp. 74-8751 and 74-8772; implementing K.S.A. 2010 Supp. 74-8751; effective April 17, 2009; amended Dec. 9, 2011.)

Kan. Admin. Regs. § 112-101-9 Notice of anticipated or actual change

(a) Each facility manager or applicant shall notify the commission in writing of any reasonably anticipated or actual change in its directors, officers, or key employees or persons directly or indirectly owning an interest of at least 0.5% in the facility manager or applicant.

(b) Each new director, officer, key employee, or person directly or indirectly owning an interest of at least 0.5% in the facility manager shall submit to a background investigation as specified in K.A.R. 112-101-3 before acting in the person's new capacity.

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History

History: (Authorized by K.S.A. 2007 Supp. 74-8751 and 74-8772; implementing K.S.A. 2007 Supp. 74-8751; effective April 17, 2009.)

Kan. Admin. Regs. § 112-101-10 Advertising; promotion of responsible gaming

(a) As used in this regulation, the term "advertisement" shall mean any notice or communication to the public of any information concerning the gaming-related business of an applicant or facility manager through broadcasting, publication or any other means of dissemination. The following notices and communications shall be considered advertisements for purposes of this regulation:

(1) Any sign, notice, or other information required to be provided by the act or by regulation, including the following:

(A) Notices regarding the rules of the games;

(B) information about rules of the games, payoffs of winning wagers, and odds;

(D) information imprinted upon gaming table layouts; and

(E) information imprinted, affixed, or engraved on slot machines or bill changers;

(2) any signs or other directional devices contained in a gaming facility for the purpose of identifying the location of authorized games; and

(3) press releases.

(b) Each facility manager and each applicant shall provide to the executive director any proposed advertisement that references the Kansas lottery at least seven business days in advance of its anticipated publication, broadcast, or other use. The advertisement may be inspected and approved by the executive director before its publication, broadcast, or use.

(c) Advertisements shall be based on fact and shall not be false, deceptive, or misleading. No advertisement may use any type, size, location, lighting, illustration, graphic depiction, or color resulting in the obscuring of any material fact or fail to specifically designate any material conditions or limiting factors. Each advertisement that the executive director finds to reflect negatively on the state of Kansas or upon the integrity of gaming shall be deemed to be in violation of this regulation, and the facility manager or applicant may be subject to sanction.

(d) Each applicant or facility manager shall be responsible for all advertisements that are made by its employees or agents regardless of whether the applicant or facility manager participated directly in its preparation, placement, or dissemination.

(e) Each on-site advertisement of a facility manager's business shall comply with the facility manager's responsible gaming plan that has been approved by the commission pursuant to article 112. Each advertisement shall reference the Kansas toll-free problem gambling help line in a manner approved by the executive director.

(f) Each applicant and each facility manager shall submit all proposed text and planned signage informing patrons of the toll-free number regarding compulsive or problem gambling to the executive director with its responsible gaming plan required in article 112.

(g) Each advertisement shall be maintained by the facility manager or applicant for at least one year from the date of broadcast, publication, or use, whether that advertisement was placed by, for, or on behalf of the facility manager or applicant. Each advertisement required to be maintained by this subsection shall be maintained at the principal place of business of the facility manager or applicant and shall be made available or produced for inspection upon the request of the commission.

(h) Each gaming facility manager and each applicant shall maintain a file containing samples of the types and forms of promotional materials not directly related to gaming activity for at least six months from the date of placement of the promotional materials. The promotional materials shall be maintained at the principal place of business of the facility manager or applicant and shall be made available or produced for inspection upon the request of the executive director.

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History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8752 and 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-101-11 Material debt transaction

(a)(1) No facility manager shall consummate a material debt transaction that involves either of the following without the prior approval of the commission:

(A) Any agreement that provides for any borrowing for a purpose other than capital and maintenance expenditures; or

(B) a guarantee of debt of an affiliate, whether signing a note or otherwise, an assumption of the debt of an affiliate, or an agreement to impose a lien on the approved gaming facility to secure the debts of an affiliate.

(2) A transaction not specified in this subsection shall not require the approval of the commission.

(b) In reviewing any material debt transaction specified in paragraph (a)(1), whether the transaction would deprive the facility manager of financial stability shall be considered by the commission, taking into account the financial condition of the affiliate and the potential impact of any default on the gaming facility manager.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-101-12 Notice of bankruptcy or liquidation

Each facility manager shall notify the commission within one hour following the filing of bankruptcy or an agreement to liquidate any of the following: (a) The facility manager;

(b) any parent company of the facility manager; or

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-101-13 Access to gaming facility and information

(a) Each applicant and each facility manager, including their intermediary companies and holding companies, shall consent to inspections of the gaming facility by commission staff.

(b) Each applicant and each facility manager shall provide all information requested by the commission. The access to information shall be granted upon the commission's request. The applicant or facility manager shall deliver any requested copies of the information within seven calendar days, at the commission's request.

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History

History: (Authorized by K.S.A. 2008 Supp. 74-8772; implementing K.S.A. 2008 Supp. 74-8752 and 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-101-14 Certification of employees

(a) Each employee, contractor, and agent of an applicant or facility manager shall be certified by the commission with a current occupation license before performing any tasks or duties or assuming any responsibilities for matters regulated by the commission for the applicant or facility manager pursuant to article 103.

(b) Each applicant and each facility manager shall coordinate the submission of all occupation license applications and background costs and expenses to the commission.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-101-15 Reporting requirements

(a) Each facility manager shall submit a monthly report to the commission listing all contracts the facility manager has had with gaming and non-gaming suppliers for the previous month and cumulatively for the past 12 months.

(b) Each facility manager shall submit a monthly report to the commission listing all persons working in the gaming facility and any ancillary facilities and each person's department, job duty, and function.

(c) At the end of its tax year, each facility manager shall submit to the commission a copy of its certified financial statements, along with an opinion from a certified public accountant or independent registered certified public accounting firm certifying the total revenue from all lottery facility games.

(d) Each facility manager and each applicant for a gaming certificate shall disclose in writing within 11 days any material change in any information provided in the application forms and requested materials submitted to the commission. Each change in information that is not material shall be disclosed to the commission during the facility manager's subsequent application for renewal. For the purpose of this regulation, a change shall be deemed material if the change includes any of the following:

(1) The personal identification or residence information;

(2) the officers, directors, or key employees or any persons owning an interest of at least 0.5% in a lottery gaming facility or racetrack gaming facility manager; or

(3) other information that might affect an applicant's or facility manager's suitability to hold a gaming certificate, including any of the following occurrences that happen to the applicant, facility manager, or its material people as determined by the executive director pursuant to K.A.R. 112-101-3:

(A) Arrests;

(B) convictions or guilty pleas;

(D) significant changes in financial condition, including any incurrence of debt equal to or exceeding $1,000,000; or

(E) relationships or associations with persons having criminal records or criminal reputations.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-101-16 Prohibitions

Each facility manager shall be prohibited from and subject to sanctions as specified in K.A.R. 112-113-1 for the following:

(a) Failing to exercise discretion and judgment to prevent any incident that might adversely reflect on the reputation of the state of Kansas or act as a detriment to the development of the lottery industry, including allowing lewd entertainment at a gaming facility;

(b) failing to conduct advertising and public relations activities in accordance with honest and fair representation;

(c) knowingly or negligently catering to, assisting, employing, or associating with, either socially or in business affairs, persons who have a criminal reputation or who have felony police records, or employing either directly through a contract or other means, any firm or individual in any capacity in which the repute of the state of Kansas or the lottery industry is liable to be damaged because of the unsuitability of the firm or the individual;

(d) failing to conduct gaming in accordance with the act and these regulations or permitting conduct that could reflect negatively on the reputation of the state of Kansas or act as a detriment to the lottery industry;

(e) failing to report to the commission any known or suspected violations of commission regulations and applicable law;

(f) failing to comply with any regulation or order of the commission or its employees relating to gaming; and

(g) receiving goods or services from a person or business that does not hold a certificate under article 103 but is required to do so.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective April 17, 2009.)

Article 102 Gaming Supplier and Non-Gaming Supplier Certification

Kan. Admin. Regs. § 112-102-1 Prohibition against uncertified business

No person identified in K.A.R. 112-102-2 as a gaming or non-gaming supplier may provide any equipment or services to a gaming facility or manager unless the person is certified by the commission with a current gaming supplier certificate, non-gaming supplier certificate, or temporary supplier permit.

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History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8751 and 74-8772; effective Aug. 14, 2009.)

Kan. Admin. Regs. § 112-102-2 Gaming supplier and non-gaming supplier defined

(a) Each person that performs one or more of the following shall be considered a gaming supplier:

(1) Manufactures, sells, leases, supplies, or distributes devices, machines, equipment, accessories, or items that meet at least one of the following conditions:

(A) Are designed for use in a gaming facility;

(B) are needed to carry out a lottery facility game;

(D) have the capacity to affect the calculation, storage, collection, or control of the revenues from a gaming facility;

(2) provides maintenance services or repairs gaming equipment, including slot machines;

(3) provides services directly related to the management or administration of a gaming facility;

(4) provides junket services; or

(5) provides items or services that the commission has determined are used in or are incidental to gaming or to an activity of a gaming facility.

(b)(1) Any person that is not a gaming supplier but otherwise meets one or more of the following may be considered a non-gaming supplier:

(A) Acts as a manager of an ancillary lottery gaming facility;

(B) is not a public utility and provides goods or services to a facility manager or ancillary lottery gaming facility in an amount of $250,000 or more within a one-year period; or

(C) provides goods or services to a gaming facility and could present a security, integrity, or safety concern to the gaming operations as determined by the executive director.

(2) A person that is any of following shall not be considered a non-gaming supplier:

(A) Regulated insurance company providing insurance to a facility manager, an ancillary lottery gaming facility, or the employees of either;

(B) employee benefit or retirement plan provider, including the administrator;

(C) regulated bank or savings and loan association that provides financing to a facility manager or ancillary lottery gaming facility; or

(D) professional service provider, including an accountant, architect, attorney, and engineer.

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History

History: (Authorized by and implementing K.S.A. 2015 Supp. 74-8751 and 74-8772; effective Aug. 14, 2009; amended Dec. 9, 2011; amended July 15, 2016.)

Kan. Admin. Regs. § 112-102-3 Gaming and non-gaming supplier employees

Any employee or agent of a gaming or non-gaming supplier may be required by the commission to be separately investigated or licensed.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Aug. 14, 2009.)

Kan. Admin. Regs. § 112-102-4 Application for a certificate

Each person that does not qualify for reciprocal certification under K.S.A. 74-8751(b), and amendments thereto, and any directives of the executive director and is seeking a gaming supplier certificate or a non-gaming supplier certificate shall submit the following to the commission staff:

(a) A completed application for the certificate on a commission-approved form;

(b) any supporting documents;

(c) a copy of the applicant's contractual agreement or statement of intent with a facility manager that the applicant expects to be supplying its goods or services. As a part of that contract or statement of intent, the applicant shall describe any arrangement it has made with the facility manager to cover the fees and costs incurred by the commission in performing the background investigation of the applicant pursuant to K.A.R. 112-102-7; and

(d) any other information that the commission deems necessary for investigating or considering the applicant.

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History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8751; effective Aug. 14, 2009.)

Kan. Admin. Regs. § 112-102-5 Temporary supplier permit

(a) The commission staff may issue a temporary supplier permit if all of the following conditions are met:

(1) The commission staff determines that the applicant has filed a completed application for a gaming or non-gaming supplier certificate.

(2) The applicant has no immediately known present or prior activities, criminal records, reputation, habits, or associations that meet either of these conditions:

(A) Pose a threat to the public interest or to the effective regulation of gaming; or

(B) create or enhance the dangers of unfair or illegal practices in the conduct of gaming.

(3) The applicant has completed a supplier-sponsored agreement with each gaming facility that the applicant proposes to conduct business with.

(b) A temporary supplier permit may be issued for a period not to exceed 90 days. Any temporary supplier permit may be extended by the commission's licensing staff for an additional 90 days.

(c) The issuance of a temporary supplier permit shall not extend the duration of the gaming or non-gaming supplier certificate for which the applicant has applied.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective Aug. 14, 2009.)

Kan. Admin. Regs. § 112-102-6 Affirmative duty to demonstrate qualifications

Each applicant for a certificate as a gaming supplier or non-gaming supplier shall have an affirmative duty to the commission to demonstrate that the applicant, including the applicant's directors, officers, stockholders, and principal employees and any persons deemed necessary by the executive director because of that person's relationship to the applicant, is qualified for certification.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective Aug. 14, 2009.)

Kan. Admin. Regs. § 112-102-7 Background investigations

(a) Each applicant and each person whom the executive director deems to have a material relationship to the applicant, including officers, directors, key gaming employees, and any persons known to directly or indirectly own an interest of at least 0.5% in the applicant, shall submit to a background investigation conducted by the commission's director of security or other person designated by the executive director.

For purposes of this regulation, a material relationship shall mean a relationship in which a person participates in the business decisions or finances of the applicant or can exhibit control over the applicant, as determined by the executive director.

(b) To determine the known owners as required in subsection (a), each applicant or certificate holder that is a publicly traded company or is owned by a publicly traded company shall rely on the publicly traded company's most recent annual certified shareholder list.

(c) Each applicant or certificate holder shall identify any passive investing company that owns between 0.5% and 10% as a candidate for completing a commission-approved institutional investor background form.

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History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8751 and 74-8772; effective Aug. 14, 2009.)

Kan. Admin. Regs. § 112-102-8 Disqualification criteria

(a) A certificate shall be denied or revoked by the commission if the applicant or certificate holder has been convicted of any felony, crime involving gambling, or crime of moral turpitude.

(b) A certificate may be denied, suspended, or revoked by the commission, and a certificate holder may be sanctioned by the commission under K.A.R. 112-113-1 if the certificate holder or its officers, directors, key gaming employees, or any person known to directly or indirectly own an interest of at least 0.5% in the applicant meets any of the following conditions:

(1) Has knowingly provided false or misleading material information through its employees to the commission or commission staff;

(2) fails to notify the commission staff about a material change in the application within seven days;

(3) has violated any provision of the act or any regulation adopted under the act;

(4) has failed to meet any monetary or tax obligation to the federal government or to any state or local government;

(5) is financially delinquent to any third party;

(6) has failed to provide information or documentation requested in writing by the commission in a timely manner;

(7) does not consent to or cooperate with investigations, interviews, inspections, searches, or having photographs and fingerprints taken for investigative purposes;

(8) has failed to meet the requirements of K.A.R. 112-102-6;

(9) has any officers, directors, key gaming employees, or any person known to directly or indirectly own an interest of at least 0.5% in the applicant that has any present or prior activities, criminal records, reputation, habits, or associations meeting either of the following criteria:

(A) Pose a threat to the public interest or to the effective regulation of gaming; or

(B) create or enhance the dangers of unfair or illegal practices in the conduct of gaming; or

(10) has violated any contract with the Kansas lottery.

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History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8751 and 74-8772; effective Aug. 14, 2009; amended April 1, 2011.)

Kan. Admin. Regs. § 112-102-9 Certificate duration

Each certificate for a gaming supplier or non-gaming supplier shall be issued by the commission for no longer than two years and one month. Each certificate shall expire on the last day of the month of the anniversary date of issue.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751; effective Aug. 14, 2009.)

Kan. Admin. Regs. § 112-102-10 Certificate renewal application

Each renewal application for a gaming or non-gaming supplier certificate shall be filed with the commission staff at least 120 days before the expiration date of the license. Each certificate holder shall submit the renewal application on a commission-approved form along with any supporting documents. An applicant's timely submission of a renewal application shall suspend the expiration of the certificate until the commission has taken action on the application. This suspended expiration shall not exceed six months.

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History

History: (Authorized by and implementing K.S.A. 2010 Supp. 74-8751; effective Aug. 14, 2009; amended Dec. 9, 2011.)

Kan. Admin. Regs. § 112-102-11 Change in ownership

(a) Each change in either of the following shall be sufficient cause for revoking any certificate or temporary permit granted by the commission:

(1) The ownership of the applicant or the holder of a gaming supplier or non-gaming supplier certificate; or

(2) the ownership of any holding or intermediary company of the applicant or certificate holder, unless the holding or intermediary company is a publicly traded corporation.

(b) Each proposed new owner shall submit to the commission an application for initial certification as a gaming supplier or non-gaming supplier and all supporting material.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective Aug. 14, 2009.)

Kan. Admin. Regs. § 112-102-12 Certificates, temporary supplier permits, and badges to be commission property

(a) Each gaming supplier certificate, non-gaming supplier certificate, temporary supplier permit, and badge issued by the commission shall be the property of the commission.

(b) Possession of a certificate, temporary supplier permit, or badge shall not confer any right upon the certificate holder or temporary permittee to contract with or work for a gaming facility.

(c) Each certificate holder or temporary permittee shall return that person's certificate or temporary supplier permit and each badge in that person's possession to commission staff no later than one day after the certificate holder's or temporary supplier permit holder's business is terminated.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective Aug. 14, 2009.)

Kan. Admin. Regs. § 112-102-13 Records

(a) Each gaming supplier and each non-gaming supplier certified by the commission shall maintain that supplier's business records in a place secure against loss and destruction. Each certificate holder shall make these records available to the commission upon the commission's request. The records shall include the following:

(1) Any correspondence with the commission and any other governmental agencies;

(2) any correspondence related to the business with a gaming facility, whether proposed or existing;

(3) a copy of any publicity and promotional materials;

(4) the personnel files for every employee of the certified gaming supplier or non-gaming supplier, including sales representatives; and

(5) the financial records for all the transactions related to the certificate holder's business with a gaming facility, whether proposed or existing.

(b) Each certificate holder shall keep the records listed in subsection (a) for at least five years from the date of creation.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective Aug. 14, 2009.)

Article 103 Employee Licensing

Kan. Admin. Regs. § 112-103-1 Prohibition of unlicensed employment with a facility manager

No person may work as an employee or independent contractor of a facility manager unless the person is certified to do so with a current occupation license or temporary work permit issued by the commission for the actual job, duty, or position that the person is seeking to perform.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-103-2 License levels

(a) Each of the following persons who will be employed by or working for a facility manager in a position that includes the responsibility or authority specified in this subsection, regardless of job title, shall be considered key employees and shall be required to hold a current and valid temporary work permit or level I occupation license issued in accordance with the act and these regulations:

(1) Any person who has authority to perform any of the following:

(A) Hire or fire employees of a facility manager;

(B) establish working policies for a facility manager;

(D) manage all or part of a gaming facility; or

(E) direct, control, manage, or engage in discretionary decision making over a facility manager;

(2) any person who has the authority to develop or administer policy or long-term plans or to make discretionary decisions about the management of a gaming facility or ancillary lottery gaming facility, including any of the following persons:

(A) General manager or chief executive officer;

(B) electronic gaming machine director;

(D) director of security;

(E) controller;

(F) director of internal audit;

(G) manager of the management information systems section or of any information system of a similar nature;

(H) marketing department manager;

(I) administrative operations manager;

(J) hotel general manager; or

(K) restaurant or bar general manager; or

(3) any other person designated as a key employee by the executive director.

(b) Each person whose responsibilities predominantly involve the maintenance of gaming equipment or assets associated with gaming activities or whose responsibilities predominantly involve conducting gaming activities shall obtain a temporary work permit or a level II occupation license. Each person who will be employed by or working for a facility manager in a position that includes any of the following responsibilities shall obtain a temporary work permit or a level II occupation license:

(1) Supervising the pit area;

(2) functioning as a dealer or croupier;

(3) conducting or supervising any table game;

(4) repairing and maintaining gaming equipment, including slot machines and bill validators;

(5) functioning as a gaming cashier or change person;

(6) assisting in the operation of electronic gaming machines and bill validators, including any person who participates in the payment of jackpots and in the process of filling hoppers, or supervising those persons;

(7) identifying patrons for the purpose of offering them complimentaries, authorizing the complimentaries, or determining the amount of complimentaries;

(8) analyzing facility manager operations data and making recommendations to key personnel of the facility manager relating to facility manager marketing, complimentaries, gaming, special events and player ratings, and other similar items;

(9) entering data into the gaming-related computer systems or developing, maintaining, installing, or operating gaming-related computer software systems;

(10) collecting and recording patron checks and personal checks that are dishonored and returned by a bank;

(11) developing marketing programs to promote gaming in the gaming facility;

(12) processing coins, currency, chips, or cash equivalents of the facility manager;

(13) controlling or maintaining the electronic gaming machine inventory, including replacement parts, equipment, and tools used to maintain electronic gaming machines;

(14) having responsibilities associated with the installation, maintenance, or operation of computer hardware for the facility manager computer system;

(15) providing surveillance in a gaming facility;

(16) providing security in a gaming facility;

(17) supervising areas, tasks, or staff within a gaming facility or ancillary lottery gaming facility operations; or

(18) any other person designated by the executive director.

(c) Each person who will be employed by or working for a facility manager or with an ancillary lottery gaming facility operator and who is not required under the act or these regulations to obtain a level I or level II occupation license shall obtain a temporary work permit or a level III occupation license.

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History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective April 17, 2009; amended April 1, 2011.)

Kan. Admin. Regs. § 112-103-3 Temporary work permit

(a) The commission staff may issue a temporary work permit to an applicant if both of the following conditions are met:

(1) The commission staff determines that the applicant has filed a completed application for a level I, level II, or level III occupation license.

(2) The applicant has no immediately known present or prior activities, criminal records, reputation, habits, or associations that meet either of these conditions:

(A) Pose a threat to the public interest or to the effective regulation of gaming; or

(B) create or enhance the dangers of unfair or illegal practices in the conduct of gaming.

(b) A temporary work permit may be issued for an initial period not to exceed 90 days. Any temporary work permit may be extended by the commission's licensing staff for an additional 90 days.

(c) The issuance of a temporary work permit shall not extend the duration of the level I, level II, or level III license for which the applicant has applied.

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History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-103-4 Application for a license

Each applicant for a level I, level II, or level III occupation license shall submit a completed application on a commission-approved form to the human resources department of the facility manager with which the applicant seeks employment. The human resources staff shall ensure the form's completeness and shall submit the form to the commission's licensing staff.

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History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective April 17, 2009; amended April 1, 2011.)

Kan. Admin. Regs. § 112-103-5 Applicant identification

(a) Each applicant shall have the responsibility to provide identification when submitting an application by presenting one of the following:

(1) A current and valid state-issued driver's license that has a photograph of the applicant on the license;

(2) documentation for American citizens or persons born in the United States that includes one or more of the following:

(A) A certified United States birth certificate;

(B) a certified birth certificate from a United States territory;

(D) a current and valid United States military card;

(E) a certified order of adoption that is an original United States document;

(F) a certificate of naturalization with intact photo or a certificate of United States citizenship;

(G) a United States military common access card with photo, date of birth, and name and branch of service; or

(H) a United States government-issued consular report of birth abroad;

(3) documentation for persons not born in the United States or persons who are not American citizens that includes one or more of the following:

(A) A valid foreign passport with a form I-94 or valid "processed for I-551" stamp with a mandated departure date more than 60 days in the future. This shall exclude border-crossing cards;

(B) a form I-94 with refugee status;

(D) a valid photo employment authorization issued by the United States department of justice;

(4) or documentation for proof of name change that includes one or more of the following:

(A) A certified United States marriage certificate indicating the city, county, and state where issued;

(B) a certified United States divorce decree containing an official signature;

(D) a certified court order of adoption; or

(E) a marriage certificate from a foreign country. If the marriage certificate from a foreign county is not in English, the certificate shall be translated into English.

(b) The facility manager shall review the identification documents, ensure to the best of that person's ability the authenticity of the documents, and ensure that the applicant is legally in the United States.

(c) Each applicant shall have the responsibility to identify that person to the commission enforcement agents by submitting the applicable documents listed in this regulation, upon request.

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History

History: (Authorized by and implementing K.S.A. 2010 Supp. 74-8772; effective April 17, 2009; amended April 1, 2011.)

Kan. Admin. Regs. § 112-103-6 Affirmative duty to demonstrate qualifications

Each applicant for an occupation license shall have an affirmative duty to the commission to demonstrate that the applicant is qualified for licensure.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-103-7 Background investigation

Each applicant shall submit to a background investigation conducted by the commission's director of security or other person designated by the executive director.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-103-8 Disqualification criteria for a level I, level II, or level III license

(a) A level I license shall be denied or revoked by the commission if the applicant or licensee is or has been convicted of any felony, crime involving gambling, or crime of moral turpitude.

(b) Any license may be denied, suspended, or revoked by the commission, and any licensee may be sanctioned by the commission if the applicant or licensee meets any of the following conditions:

(1) Has knowingly provided false or misleading material information to the commission or its staff;

(2) fails to notify the commission staff about a material change in the applicant's or licensee's application within seven days;

(3) has violated any provision of the act or any regulation adopted under the act;

(4) is unqualified to perform the duties required;

(5) has failed to meet any monetary or tax obligation to the federal government or to any state or local government;

(6) is financially delinquent to any third party;

(7) has failed to provide information or documentation requested in writing by the commission in a timely manner;

(8) does not consent to or cooperate with investigations, interviews, inspections, searches, or having photographs and fingerprints taken for investigative purposes;

(9) has failed to meet the requirements of K.A.R. 112-103-6; or

(10) has any present or prior activities, criminal records, reputation, habits, or associations that meet either of the following criteria:

(A) Pose a threat to the public interest or to the effective regulation of gaming; or

(B) create or enhance the dangers of unfair or illegal practices in the conduct of gaming.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective April 17, 2009; amended April 1, 2011.)

Kan. Admin. Regs. § 112-103-9 Examinations

(a) Any applicant for an occupation license may be required to demonstrate knowledge, qualifications, and proficiency related to the license for which application is made through an examination approved by the commission or its designee.

(b) Any applicant who fails the examination may be retested no earlier than 30 days following the first failure and no earlier than six months following the second failure. Each applicant failing the examination on the third attempt shall be ineligible to retake the examination for one year from the date of the third failure.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-103-10 License duration

Each occupation license shall be issued for a period of no longer than two years and one month. Each license shall expire on the last day of the month in which the licensee was born.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-103-11 License renewal

Each occupation licensee wanting to renew the license shall file an application for occupation license renewal with the commission staff. Each application shall be submitted on a form approved by the commission. The completed renewal application shall be filed with the commission staff at least 90 days before expiration of the license. An applicant's failure to timely file the renewal application may result in expiration of the license and an inability to work with or for the facility manager. An applicant's timely submission of a renewal application shall suspend the expiration of the license until the commission has taken action on the application. This suspended expiration shall not exceed six months.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2010 Supp. 74-8772; effective April 17, 2009; amended Dec. 9, 2011.)

Kan. Admin. Regs. § 112-103-12 Reapplication after license denial or revocation

A person who is denied licensure or whose license is revoked shall not reapply for the same or higher level of license for at least one year from the date of the denial or revocation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 17, 2009.)

Kan. Admin. Regs. § 112-103-15 License mobility; limitations

(a) Any licensee may work in any other position at or below that license level. If a licensee changes positions for more than one shift in a seven-day period, the facility manager shall request approval from the commission's licensing staff about the change.

(b) If the commission's licensing staff determines that the person's license no longer reflects that person's actual position, the person shall be required to reapply for the appropriate occupation license.

(c) Each licensee who wants to work for a different lottery gaming facility shall request approval from the commission's licensing staff before commencing employment at the other lottery gaming facility. That employee shall submit an updated license application and a personal disclosure form.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2010 Supp. 74-8772; effective April 17, 2009; amended April 1, 2011.)

Kan. Admin. Regs. § 112-103-16 Licenses, temporary work permits, and badges to be commission property

(a) Each license, temporary work permit, and badge issued by the commission shall be the property of the commission.

(b) Possession of a license, temporary permit, or badge shall not confer any right upon the temporary permittee or licensee to employment with a facility manager.

(c) Each licensee or temporary permittee shall return the license or temporary work permit and each badge in that person's possession to commission staff within one day if the temporary permittee's or licensee's employment or contract is terminated.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 17, 2009.)

Article 104 Minimum Internal Control System

Kan. Admin. Regs. § 112-104-1 Definitions; internal control system

(a) The following words and terms, when used in this article, shall have the following meanings unless the context indicates otherwise:

(1) "Accounting department" means a facility manager's internal department that is responsible for the management of the financial and accounting activities relating to electronic gaming machines being utilized on an approved gaming floor.

(2) "Asset number" means a unique number assigned to an electronic gaming machine by a facility manager for the purpose of tracking the electronic gaming machine.

(3) "Bill validator" means an electronic device designed to interface with an electronic gaming machine for the purpose of accepting and validating any combination of United States currency, gaming tickets, coupons, or other instruments authorized by the commission for incrementing credits on an electronic gaming machine.

(4) "Bill validator canister" means a mechanical or electronic device designed to interface with an electronic gaming machine for the purpose of storing any combination of United States currency, gaming tickets, coupons, or other instruments authorized by the commission for recording credits on an electronic gaming machine.

(5) "Blind count" means the counting of currency or gaming chips by a person who does not know the inventory balance.

(6) "Cash equivalents" means instruments with a value equal to United States currency or coin, including certified checks, cashier's checks, traveler's checks, money orders, gaming tickets, and coupons.

(7) "Cashier's booth" means an area from which a cashier conducts transactions associated with gaming cashiers or window cashiers.

(8) "Change person" means a person who exchanges coins, currency, and coupons with patrons.

(9) "Complimentary" means any lodging, service, or item that is provided directly or indirectly to an individual at no cost or at a reduced cost and that is not generally available to the public. This term shall include lodging provided to a person at a reduced price due to the anticipated or actual gaming activities of that person. Group rates, including convention and government rates, shall be deemed generally available to the public.

(10) "Count room" means a room secured by keys controlled by two separate facility manager departments with limited access, where the contents, including currency, gaming tickets, and coupons, of bill validator canisters are counted by the count team.

(11) "Currency counters" means a device that counts currency and tickets.

(12) "Critical program storage media" and "CPSM" mean any media storage device that contains data, files, or programs and is determined by the commission to be capable of affecting the integrity of gaming.

(13) "Drop" means the total amount of money, tickets, and coupons removed from any lottery facility game or kiosk.

(14) "Drop team" means the group of employees of a facility manager who participate in the transportation of the drop.

(15) "EGM" means electronic gaming machine.

(16) "Gaming day" means a period not to exceed 24 hours corresponding to the beginning and ending times of gaming activities for the purpose of accounting reports and determination by the central computer system of net lottery facility game income.

(17) "Generally accepted accounting principles" and "GAAP" have the meaning specified in K.A.R. 74-5-2.

(18) "Imprest" means the basis on which the operating funds of general cashiers and gaming cashiers are maintained. The opening and closing values shall be equal, and any difference shall result in a variance. The funds may be replenished as needed in exactly the value of the net of expenditures made from the funds for value received.

(19) "Incompatible functions" means functions or duties that place any person or department in a position to perpetuate and conceal errors, fraudulent or otherwise.

(20) "LFG" means lottery facility game.

(21) "Main bank" means the central location in the gaming facility where acts that include the following are performed:

(A) Transactions for recording currency, coin, tokens, cash equivalents, and negotiable instruments;

(B) preparation of bank deposits;

(D) reconciliation of all cage transactions.

(22) "Trolley" means a wheeled apparatus used for the secured transport of electronic gaming cash storage boxes and drop boxes.

(23) "Unclaimed winnings" means gaming winnings that are held by the facility manager as a liability to a patron until that patron is paid.

(24) "Unredeemed ticket" means a ticket issued from an LFG containing value in U.S. dollars that has not been presented for payment or accepted by a bill acceptor at a gaming machine and has not been marked as paid in the ticket file.

(25) "Weigh scale" means a scale that is used to weigh coins and tokens and that converts the weight to dollar values in the count process.

(b) Each applicant for a facility manager certificate shall submit to the commission and the Kansas lottery a written plan of the applicant's initial system of administrative and accounting procedures, including its internal controls and audit protocols, at least 180 days before opening a gaming facility, unless the executive director finds good cause for a shorter deadline. This plan shall be called the internal control system and shall include the following:

(1) Organization charts depicting segregation of functions and responsibilities;

(2) a description of the duties and responsibilities of each licensed or permitted position shown on the organization charts and the lines of authority;

(3) a detailed narrative description of the administrative and accounting procedures designed to satisfy the requirements of this article;

(4) a record retention policy in accordance with K.A.R. 112-104-8;

(5) procedures to ensure that assets are safeguarded and counted in conformance with effective count procedures;

(6) the following controls and procedures:

(A) Administrative controls that include the procedures and records that relate to the decision making processes leading to management's authorization of transactions;

(B) accounting controls that have as their primary objectives the safeguarding of assets and revenues and the reliability of financial records. The accounting controls shall be designed to provide reasonable assurance that all of the following conditions are met:

(i) The transactions or financial events that occur in the operation of an LFG are executed in accordance with management's general and specific authorization;

(ii) the transactions or financial events that occur in the operation of an LFG are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles, the act, and this article;

(iii) the transactions or financial events that occur in the operation of an LFG are recorded in a manner that provides reliable records, accounts and reports, including the recording of cash and evidence of indebtedness, for use in the preparation of reports to the commission related to LFGs;

(iv) the transactions or financial events that occur in the operation of an LFG are recorded to permit proper and timely reporting and calculation of net LFG income and fees to maintain accountability for assets;

(v) access to assets is permitted only in accordance with management's general and specific authorization; and

(vi) the recorded accountability for assets is compared with existing physical assets at reasonable intervals, and appropriate action is taken with respect to any discrepancies;

(C) procedures and controls for ensuring that all functions, duties, and responsibilities are segregated and performed in accordance with legitimate financial practices by trained personnel;

(D) procedures and controls for ensuring all applicable technical standards as adopted by the commission under article 110 are followed;

(7) a completed internal control checklist; and

(8) any other items that the commission may require to be included in the internal controls.

(1) An attestation by the chief executive officer or other competent person with a direct reporting relationship to the chief executive officer attesting that the officer believes in good faith that the submitted internal controls conform to the requirements of the act and this article; and

(2) an attestation by the chief financial officer or other competent person with a direct reporting relationship to the chief financial officer attesting that the officer believes in good faith that the submitted internal controls are designed to provide reasonable assurance that the financial reporting conforms to generally accepted accounting principles and complies with all applicable laws and regulations, including the act and this article.

(d) Each internal control system shall be reviewed by the commission in consultation with the Kansas lottery to determine whether the system conforms to the requirements of the act and this article and provides adequate and effective controls to ensure the integrity of the operation of LFGs at a gaming facility. If the commission determines that the system is deficient, a written notice of the deficiency shall be provided by the executive director to the applicant or facility manager. The applicant or facility manager shall be allowed to submit a revision to its submission. Each facility manager shall be prohibited from commencing gaming operations until its internal control system is approved by the commission.

(e) If a facility manager intends to update, change, or amend its internal control system, the facility manager shall submit to the commission for approval and to the Kansas lottery a written description of the change or amendment and the two original, signed certifications described in subsection (c).

(f) A current version of the internal control system of a facility manager shall be maintained in or made available in electronic form through secure computer access to the accounting and surveillance departments of the facility manager and the commission's on-site facilities. The facility manager shall also maintain a copy, in either paper or electronic form, of any superseded internal control procedures, along with the two certifications required to be submitted with these procedures, for at least seven years. Each page of the internal control system shall indicate the date on which the page was approved by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-104-2 Facility manager's organization

(a) Each facility manager's internal control system shall include organization charts depicting the segregation of functions and the responsibilities and descriptions of the duties and responsibilities for each position shown. Each facility manager shall be permitted, except as otherwise provided in this regulation, to tailor organizational structures to meet the needs or policies of a particular management philosophy. Each facility manager's organization charts shall provide for the following:

(1) A system of personnel and chain of command that permits management and supervisory personnel to be held accountable for actions or omissions within their areas of responsibility;

(2) the segregation of incompatible functions, duties, and responsibilities so that no employee is in a position both to commit an error or perpetrate a fraud and to conceal the error or fraud in the normal course of the employee's duties;

(3) the performance of all functions, duties, and responsibilities in accordance with legitimate financial practices by trained personnel;

(4) the areas of responsibility that are not so extensive as to be impractical for one person to monitor; and

(5) a chief executive officer. For the purposes of this article, a "chief executive officer" shall mean the person located at the gaming facility who is ultimately responsible for the daily conduct of the facility manager's business regardless of the particular title that person actually holds. Unless otherwise specified in these regulations, each supervisor of a department required by subsection (b) shall report directly to the chief executive officer of the facility manager regarding administrative matters and daily operations. The facility manager's organization charts shall designate which positions, in the absence of the chief executive officer, shall be designated as having responsibility for the daily conduct of the facility manager's gaming business.

(b) Each facility manager's internal control system shall also include the following departments and supervisory positions, each of which shall be categorized as mandatory and shall cooperate with, yet perform independently of, other mandatory departments and supervisory positions of the facility manager. However, a department or supervisor of a facility manager that is not required or authorized by this subsection may operate under or in conjunction with a mandatory department or supervisor if the organizational structure is consistent with the requirements of the act and subsection (a). The mandatory departments and supervisory positions shall be the following:

(1) A surveillance department supervised by a person located at the gaming facility who functions, for regulatory purposes, as the director of surveillance;

(2) an internal audit department supervised by a person located at the gaming facility who functions, for regulatory purposes, as the director of internal audit:

(A) The director of internal audit department shall report directly to one of the following persons or entities regarding matters of policy, purpose, responsibility, and authority, which persons or entities shall also control the hiring, termination, and salary of the position:

(i) The independent audit committee of the facility manager's board of directors;

(ii) the independent audit committee of the board of directors of any holding or intermediary company of the facility manager that has authority to direct the operations of the facility manager;

(iii) the internal audit executives of any holding or intermediate company if the most senior executive in the reporting line reports directly to the independent audit committee of the board of directors of the holding or intermediary company; or

(iv) for facility managers or holding companies that are not corporate entities, the noncorporate equivalent of any of the persons or entities listed in paragraphs (b)(2)(A)(i) through (iii) as approved by the commission; and

(B) the internal audit department shall operate under all of the provisions contained under K.A.R. 112-104-24;

(3) a management information systems (MIS) department supervised by a person located at the gaming facility who functions, for regulatory purposes, as the MIS director;

(4) an EGM department supervised by a person located at the gaming facility who functions, for regulatory purposes, as the EGM director;

(5) a security department supervised by a person located at the gaming facility who functions, for regulatory purposes, as the director of gaming facility security;

(6) an accounting department supervised by a person located at the gaming facility who functions as the controller, for regulatory purposes:

(A) The controller shall be responsible for all accounting functions, including the preparation and control of books, records, and data, the control of stored data, the control of unused forms, the accounting for and comparison of operational data and forms; and

(B) the facility manager shall have in its accounting department at least one individual responsible for and dedicated to verifying financial transactions and reviewing accounting forms and data. This function, which is sometimes referred to as "income or revenue reconciliation," shall be independent of the transactions under review. This function shall include a daily reconciliation of EGM transactions documentation, a daily reconciliation of the parimutuel transaction documentation, a daily reconciliation of the facility manager cage accountability, document control, and signature verification; and

(7) a cashier's cage department supervised by a person located at the gaming facility who functions as the treasurer, for regulatory purposes:

(A) The treasurer shall be responsible for the control and supervision of the cashier's cage, satellite cages, count room, and vault. The cashier's cage may be separated into independent operations or satellite cages to facilitate operations and accountability;

(B) the cashier's cage department shall be responsible for the following:

(i) The custody and accountability of coin, currency, negotiable instruments, documents, and records normally associated with the operation of a cage;

(ii) any other functions normally associated with the operation of a cage;

(iii) the count room; and

(iv) the vault; and

(d) The facility manager's personnel shall be trained in all policies, procedures, and internal controls relevant to each employee's individual function. The facility manager shall develop special instructional programs in addition to any on-the-job instruction sufficient to make each member of the department knowledgeable about the requirements and performance of all transactions relating to that employee's functions.

(e) Notwithstanding other provisions to the contrary, a facility manager may designate and assign more than one person to serve jointly as the supervisor of a department required by this regulation. Each person approved to serve as a joint supervisor of a mandatory department shall be located at the gaming facility and shall be individually and jointly accountable for the functioning of that department.

(f) If a vacancy in the chief executive officer position or any mandatory department supervisory position required by subsection (b) occurs, all of the following requirements shall apply:

(1) The facility manager shall notify the commission within five days from the date of vacancy. The notice shall be submitted in writing and shall indicate the following information:

(A) The vacant position;

(B) the date on which the position will become or became vacant; and

(2) The facility manager shall designate a person to assume the duties and responsibilities of the vacant position within 30 days after the date of vacancy. The person may assume the duties and responsibilities of the vacant position on a temporary basis if both of the following conditions are met:

(A) The person does not also function as the department supervisor for any other mandatory department required by this regulation.

(B) The person's areas of responsibility will not be so extensive as to be impractical for one person to monitor.

(3) Within five days of filling a vacancy under paragraph (f)(2), the facility manager shall notify the commission. The notice shall be submitted in writing and shall indicate the following:

(A) The position;

(B) the name of the person designated;

(D) an indication of whether the position has been filled on a temporary or permanent basis.

(4) The notices required in this subsection shall be directed to the executive director.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-3 Accounting records

(a) Each facility manager's internal control system shall include internal controls for accounting records. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. Each facility manager shall maintain complete, accurate, and legible records of all transactions pertaining to the revenues, expenses, assets, and liabilities of each gaming facility.

(b) General accounting records shall be maintained on a double-entry system of accounting with transactions recorded on a basis consistent with generally accepted accounting principles. Detailed, supporting, and subsidiary records sufficient to meet the requirements of subsection (c) shall also be maintained in accordance with the requirements of this article.

(1) Records pertaining to revenue, expenses, assets, and liabilities of all facility manager activities;

(2) records pertaining to the financial statements and all transactions impacting the financial statements of the facility manager, including contracts or agreements with licensed manufacturers, suppliers, junket enterprises, vendors, contractors, consultants, management companies, attorneys and law firms, accountants and accounting firms, insurance companies, and financial institutions, including statements and reconciliations related to these contracts or agreements;

(3) records that identify the handle, payout, actual win amounts and percentages, theoretical win amounts and percentages, and differences between theoretical and actual win amounts and percentages for each EGM on a daily, week-to-date, month-to-date, and year-to-date basis;

(4) records documenting the costs of complimentaries as defined in article 100;

(5) records created in connection with the internal control system submitted to the commission under this article;

(6) records of all returned checks;

(7) records supporting the daily and other periodic reconciliations of cash and account balances to general ledger accounts;

(8) records supporting the reconciliation of accounting records to those of the independent auditors;

(9) records supporting the preparation of any state and federal tax returns and reconciliation of all such records to general ledger accounts;

(10) records required to comply with all federal financial recordkeeping requirements as specified in 31 C.F.R. part 103; and

(11) any other relevant records that the executive director requires to be maintained.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-4 Forms, records, and documents

(a) Each facility manager's internal control system shall include internal controls for forms, records, and documents. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. Information required by this article to be placed on any form, record, or document shall be recorded on the form, record, or document in ink or in another permanent format.

(b) The accounting department shall be responsible for the receipt, control, and issuance of all prenumbered forms. Serial numbers on manual forms shall be printed on the form by the manufacturer. Computerized forms shall be sequentially numbered by the computer system. Documentation of all serial numbers shall be maintained to account for the forms.

(c) Whenever duplicate or triplicate copies are required of a form, record, or document, the original, duplicate, and triplicate copies shall be color-coded and have the name of the recipient originally receiving a copy preprinted on the bottom of that copy to differentiate one copy from the other.

(d) If the facility manager prepares more copies than required by this article and the forms, records, and documents are required to be inserted in a locked dispenser, the last copy shall remain in a continuous, unbroken form in a locked dispenser. The key to this dispenser shall be controlled by the accounting department.

(e) Whenever a prenumbered form is voided, the original and all copies shall be marked "void" and the person voiding the form shall record that person's signature on the voided form.

(f) Whenever forms or serial numbers are required to be accounted for under this article and an exception is noted, the exception shall be reported in writing to the facility manager's internal audit department and the commission within two days of identification of the exception or upon confirmation of the exception, whichever occurs earlier.

(g) Unless otherwise specified in this article, all forms, records, documents, and stored data required by this article to be prepared, maintained, and controlled shall have the name of the gaming facility and the title of the form, record, document, and, for stored data, the imprinted or preprinted date.

(h) Nothing in this article shall be construed as prohibiting a facility manager from preparing more copies of any form, record, or document than the number of those copies required by this article.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-5 Standard financial reports

(a) Each facility manager's internal control system shall include internal controls for standard financial reports. The internal controls shall be submitted to and approved by the commission under K.A.R. 112-104-1. A facility manager shall file the following financial data reports:

(1) A balance sheet submitted monthly, quarterly, and annually;

(2) an income statement submitted monthly, quarterly, and annually;

(3) a cash flow statement submitted monthly, quarterly, and annually;

(4) daily net EGM income submitted daily, monthly, quarterly, and annually; and

(5) a comparison of net EGM income to projected net EGM income submitted monthly, quarterly, and annually.

(b) Standard reporting forms and corresponding filing instructions may be prescribed by the executive director to be used by a facility manager in filing the monthly reports specified in subsection (a).

(c) The annual reports shall be based on a fiscal year beginning July 1 and ending June 30, unless otherwise approved by the executive director. The quarterly reports shall be based on the quarters ending September 30, December 31, March 31, and June 30, unless otherwise approved by the executive director. The monthly reports shall be based on calendar months. Interim reports shall contain a cumulative year-to-date column.

(d) The annual financial statements shall be prepared on a comparative basis for the current and prior years and shall present financial position, results of operations, and cash flows in conformity with GAAP.

(e) The electronically transmitted reports or hard copy reports required to be filed pursuant to this regulation shall be authorized by individuals designated by the facility manager. In addition, the facility manager shall submit a letter attesting to the completeness and accuracy of the reports. The letter shall be signed by the facility manager's chief financial officer or controller.

(f) The reports required to be filed pursuant to this regulation shall be addressed as prescribed by the executive director and received no later than the required filing date. The required filing dates shall be the following:

(1) Monthly reports shall be due on the last calendar day of the following month or the next business day if the day falls on a weekend or legal holiday.

(2) Quarterly reports for the first three quarters shall be due on the last calendar day of the second month following the end of the facility manager's quarter. Quarterly reports for the fourth quarter shall be due on the last calendar day of the third month following the end of the facility manager's fourth quarter.

(3) Annual reports shall be due on the last calendar day of the third month following the end of the facility manager's year or 10 days after form 10-K is filed with the securities and exchange commission, whichever comes first.

(g) In the event of a license termination, change in business entity, or a change in ownership of at least 20%, the facility manager shall file with the commission the required financial and statistical reports listed in paragraphs (a)(1) through (3) for the previous month through the date of occurrence. The facility manager shall file the reports within 30 calendar days of the occurrence.

(h) All significant adjustments resulting from the annual audit required in K.A.R. 112-104-6 shall be recorded in the accounting records of the year to which the adjustment relates. If the adjustments were not reflected in any annual report and the commission concludes that the adjustments are significant, the facility manager may be required by the executive director to file a revised annual report. The revised filing shall be due within 30 calendar days after written notification to the facility manager, unless the facility manager submits a written request for an extension before the required filing date and the extension is granted by the executive director.

(i) Additional financial reports may be requested in writing by the executive director to determine compliance by the facility manager with the act and this article.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2010 Supp. 74-8772; effective Sept. 26, 2008; amended Dec. 9, 2011.)

Kan. Admin. Regs. § 112-104-6 Annual audit; other reports; currency transaction reporting; suspicious transaction reporting

(a) Each facility manager's internal control system shall include internal controls for annual and other audit reports. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. Each facility manager shall cause its annual financial statements to be audited by an independent certified public accountant or, when appropriate, an independent registered certified public accounting firm licensed to practice in this state. The audit shall be in accordance with generally accepted auditing standards and, when applicable, the standards of the public company accounting oversight board. The independent certified public accountant or, when appropriate, independent registered certified public accounting firm shall be approved by the executive director before the audit engagement.

(b) Independent certified public accountants and independent registered certified public accounting firms performing annual audits or special reports shall not perform internal audit services for the same facility manager.

(c) The annual financial statements audit shall be prepared on a comparative basis for the current and prior fiscal years and present financial position and results of operations in conformity with generally accepted accounting principles.

(d) The financial audit required by this regulation shall include a footnote reconciling and explaining any differences between the financial statements included in any annual report filed in conformity with K.A.R. 112-104-5 and the audited financial statements. The footnote shall disclose the effect of adjustments on the following:

(1) Revenue from the operation of EGMs;

(2) EGM revenue minus expenses for complimentaries;

(3) total costs and expenses;

(4) income before extraordinary items, as that term is used within GAAP; and

(5) net income.

(e) The facility manager shall require the independent certified public accountant or independent registered certified public accounting firm auditing the facility manager's financial statements to render the following additional reports:

(1) A report on the prospective financial statements, including a one-year forecast and three-year projection, expressing an opinion as to whether the prospective financial information is properly prepared on the basis of the assumptions and is presented in accordance with the relevant financial reporting framework; and

(2) any additional relevant reports if required by the executive director.

(f) At any time a special audit of a facility manager may be required by the commission to be conducted by commission personnel, an independent certified public accountant, or an independent registered certified public accounting firm licensed to practice in the state of Kansas. The scope, procedures, and reporting requirements of any special audit shall be established by the executive director.

(g) Copies of the audited financial statements in an amount determined by the executive director, together with any management letter or report prepared regarding that statement by the facility manager's independent certified public accountant or independent registered certified public accounting firm, shall be filed with the commission not later than 120 days after the end of the facility manager's fiscal year.

(h) The facility manager shall prepare a written response to the independent certified public accountant's or independent registered certified public accounting firm's reports required by subsection (e). The response shall indicate, in detail, any corrective actions taken. The facility manager shall submit a copy of the response to the commission within 90 days of receipt of the reports.

(i) The facility manager shall file with the commission copies of the reports required by subsection (e) in an amount determined by the executive director and copies in an amount determined by the executive director of any other reports on internal controls, administrative controls, or other matters relative to the facility manager's accounting or operating procedures rendered by the facility manager's independent certified public accountant or independent registered certified public accounting firm within 120 days following the end of the facility manager's fiscal year or upon receipt, whichever is earlier.

(j) The facility manager shall submit to the commission three copies of any report that is filed, or required to be filed, with the securities and exchange commission (SEC) or other securities regulatory agency. The reports shall include any S-1, 8-K, 10-Q, 10-K, proxy or information statements, and registration statements. The reports shall be filed with the commission within 10 days of whichever of the following occurs first:

(1) The filing of the report with the SEC or other securities regulatory agency; or

(2) the due date prescribed by the SEC or other securities regulatory agency.

(k) If an independent certified public accountant or independent registered certified public accounting firm previously engaged as the principal accountant to audit the facility manager's financial statements resigns or is dismissed as the facility manager's principal accountant or if another independent certified public accountant or independent registered certified public accounting firm is engaged as principal accountant, the facility manager shall file a report with the commission within 10 days following the end of the month in which the event occurs, setting forth the following:

(1) The date of the resignation, dismissal, or engagement;

(2) an indication of whether in connection with the audits of the two most recent years preceding a resignation, dismissal, or engagement there were any disagreements with the former accountant on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, including a description of each disagreement. The disagreements to be reported shall include those resolved and those not resolved; and

(3) an indication of whether the principal accountant's report on the financial statements for either of the past two years contained an adverse opinion or disclaimer of opinion or was qualified. The nature of the adverse opinion, disclaimer of opinion, or qualification shall be described.

(l)The facility manager shall request the former accountant to furnish to the facility manager a letter addressed to the commission stating whether that accountant agrees with the statements made by the facility manager in response to paragraph (k)(2). The letter shall be filed with the commission as an exhibit to the report required by paragraph (k)(2).

(m)All of the audits and reports required by this regulation that are performed by independent certified public accountants or independent registered certified public accounting firms shall be prepared at the sole expense of the facility manager.

(n)Each facility manager's internal control system shall include internal controls to meet the requirements of 31 C.F.R. Part 103 for the reporting of certain currency transactions. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1.

(1) The facility manager shall file with the commission a copy of any suspicious activity report-casino (SARC) that the facility manager is required to file under 31 C.F.R. §103.21. Each SARC shall be filed with the commission concurrently with the federal filing.

(2) A facility manager, director, officer, employee, or agent who reports a suspicious activity under paragraph (n)(1) shall not notify any person involved in the suspicious activity that the suspicious activity has been reported.

(3) The facility manager shall file with the commission a copy of any currency transaction report by casino (CTRC) that the facility manager is required to file under 31 C.F.R. §103.22. Each CTRC shall be filed with the commission concurrently with the federal filing.

(o)An annual audit of the facility manager's compliance with commission regulations may be required by the executive director to be conducted in accordance with generally accepted auditing standards and the standards for financial audits under government auditing standards. The audit report shall require the expression of an opinion on compliance. The audit shall be conducted by either commission staff or an independent certified public accountant firm selected by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2010 Supp. 74-8772; effective Sept. 26, 2008; amended Dec. 9, 2011.)

Kan. Admin. Regs. § 112-104-7 Meter readings and related statistical reports

(a) Each facility manager's internal control system shall include internal controls for meter reading and the related statistical reports. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. Accounting department employees who are independent of the drop process according to K.A.R. 112-104-18 shall read and record on a gaming machine meter sheet the numbers on all meters as required under the technical standards adopted by the commission in article 110.

(b) Any facility manager may have a computer system, as approved by the commission under K.A.R. 112-107-2, to record any of the required meter readings if the meter readings are recorded in accordance with subsection (a) at least weekly. The computer shall store in machine-readable form all information required by this regulation. The stored data shall not be susceptible to change or removal by any personnel without the system identifying and establishing a record of the personnel making the change, maintaining an archive of the original record, and identifying the new record as having been changed. Access to this information shall be restricted to the following:

(1) Accounting department personnel;

(2) internal audit department personnel;

(3) EGM department personnel when diagnosing EGM problems;

(4) management staff when assessing EGM performances; and

(5) count room supervisors when reconciling an EGM drop.

(c)(1) Bill validator meter readings shall be taken when any of the following occurs:

(A) Devices containing bill validators are moved.

(B) Denominations change.

(D) Devices containing bill validators are taken out of service.

(E) The computer components of the devices containing bill validators are accessed, which could cause the device or system meters to reset.

(2) A bill validator meter reading shall be taken for each drop.

(d) After preparation of the gaming machine meter sheet, each employee involved with its preparation shall sign the gaming machine meter sheet attesting to the accuracy of the information contained on the sheet. The sheet shall then be forwarded directly to the accounting department for comparison to the gaming machine win sheet and calculation of gaming machine statistics.

(e) Upon receipt of the gaming machine meter sheet, the accounting department shall review all meter readings for reasonableness using preestablished parameters and prior meter readings. Meter readings shall not be altered except to correct meters that were incorrectly recorded. All changes shall have adequate supporting documentation. The accounting department shall notify the EGM department of potentially faulty meters and follow up to ensure that proper maintenance is performed. Documentation that supports machine service and maintenance shall be maintained.

(f) If a meter unexpectedly resets to 0000, which is also known as "zeroing out," accounting personnel shall notify the EGM department to determine the cause of the reset. Using the information obtained from the EGM department, accounting personnel shall complete a meter reset form whenever a meter is reset. On a monthly basis, accounting personnel shall review the meter reset form to determine if there are any ongoing problems with any electronic device. If a problem is noted in three consecutive drops, the commission shall be notified. The accounting department shall ensure that appropriate and adequate meter readings are available to generate statistical reports.

(g) The EGM activity for all EGMs that were active on the gaming floor shall be reflected on statistical reports. Large or unexpected variances shall be investigated by the appropriate personnel, and the results shall be documented in accordance with internal control procedures as approved by the commission according to K.A.R. 112-104-1. The accounting department shall prepare, review, and analyze the following reports:

(1) The EGM revenue summary report, which is also called an EGMR report, shall be prepared at least once each month. This report shall be a summary of EGM activity by drop and by denomination, for the period reported on. Information included on this report shall be the dollar value of currency by denomination, drops, payouts, fills, and net EGM income. Tickets and coupons redeemed shall include total tickets and coupons redeemed by all devices and in all cages. All reconciling items, including a statewide multilink progressive contribution, unclaimed jackpots, and bills accepted into the cage from bill validator malfunctions, shall be documented on the EGMR report.

(2) The comparison of the meter drop with the actual drop report shall compare the meter drop with the actual drop by device, by denomination, and in total, which shall be prepared at least once each month. The report shall be prepared on a drop-by-drop basis. Additionally, monthly and yearly drop information by machine, by denomination, and in total shall be either included on the last report of each month or available on a separate report. Information needed to calculate the drop report shall include the actual drop from the EGMR report and current and prior drop meter readings. The incremental change in the drop meter shall reflect what the EGM machine recorded as dropped, pursuant to K.A.R. 112-104-18, in the current drop period. The variance percentages between what the meter records and what is counted in the count room shall be computed by dividing the dollar variance by the meter drop amount. When a variance both equals or exceeds 2% and equals or exceeds $25, the variance shall be investigated and documented in accordance with internal control procedures as approved by the commission under K.A.R. 112-104-1.

(3) The comparison of meter jackpots with actual jackpots paid report shall be prepared at least monthly. This report shall compare the total attendant-paid jackpot meter and cancelled credit meters with the actual manual pay jackpots by machine, by denomination, and in total. The report shall be prepared on a drop-by-drop basis. Additionally, monthly and yearly jackpot information by machine, by denomination, and in total shall be either included on the last report of each month or available on a separate report. The monthly totals on this report shall agree with the manual jackpot payout totals shown on the EGMR report.

(A) Information needed to calculate the report shall include the actual manual pay jackpots from the jackpot payout slips and the current and prior jackpot meter readings.

(B) Variance percentages between meter and actual jackpots shall be computed by dividing the dollar variance by the meter jackpot amount. If a variance both equals or exceeds 1% and equals or exceeds $10, the variance shall be investigated and documented in accordance with internal control procedures as approved by the commission under K.A.R. 112-104-1.

(C) Payouts that are not a result of a wager shall be considered promotional and shall be included in the calculation of net EGM income. These types of payments shall be shown as a reconciling item on the EGMR report. These payouts shall include the following:

(i) Amount of overpayment of jackpots due to incorrectly calculating the jackpot;

(ii) payments due to incorrect machine setup;

(iii) payments due to failing to perform slot machine maintenance; and

(iv) any payment resulting from a patron dispute that is not supported by documentation verifying accuracy of the transaction and is not approved by the executive director.

(4) The comparison of the theoretical hold with the actual hold report shall be prepared at least monthly. This report shall compare the theoretical hold with the actual hold by machine, by denomination, and in total, on a month-to-date and year-to-date basis. A theoretical hold shall be defined as the intended hold percentage or win of a machine as computed by reference to its payout schedule or reel strip settings, or both. The actual hold percentage shall be calculated by dividing net EGM income by the dollar value of currency in. The theoretical hold percentage shall be obtained from the par sheet, which is a manufacturer's specification sheet located and maintained in each EGM machine. Each facility manager with any EGM games whose outcome is determined in whole or in part by skill shall use the higher range of the manufacturer's expected field return subtracted from 100 as the theoretical hold for these types of games. Each facility manager with multigame and multidenominational EGMs shall use the weighted theoretical hold percentage from the EGM each month. The machines' weighted theoretical hold shall be compared to the actual hold percentage. The dollar value of currency in for the current month shall be calculated by subtracting the prior month's end meter readings from the current month's end meter readings and multiplying the difference by the denomination of the machine. Large or unexpected variances between the theoretical and the actual hold shall be investigated and documented in accordance with internal control procedures as approved by the commission under K.A.R. 112-104-1.

(5) The comparison of ticket-in meter to tickets redeemed by device report shall be prepared at least monthly. This report shall compare the change in the ticket-in meter to the actual tickets redeemed by machine. This report shall be prepared on a drop-by-drop, month-to-date, and year-to-date basis and shall show totals by machine, denomination, and grand totals. Variance percentages between the ticket-in meter and actual tickets redeemed shall be computed by dividing the dollar variance by the total ticket-in meter amount. When a variance both equals or exceeds 1% and equals or exceeds $10, the variance shall be investigated and documented in accordance with internal control procedures as approved by the commission under K.A.R. 112-104-1.

(6) The comparison of ticket-out meter to tickets issued by device report shall be prepared at least monthly. This report shall compare the change in the ticket-out meter to the actual tickets issued, as reported by the ticket verification system, by each device. This report shall be prepared on a drop-by-drop, month-to-date, and year-to-date basis and shall show totals by machine, denomination, and grand totals. This report shall be used in the reconciliation of outstanding tickets in order to determine ticket liability.

(7) A comparison of coupon-in meter to coupons redeemed by device report shall be prepared at least monthly. This report shall compare the change in the coupon-in meter to the actual coupons redeemed by machine. This report shall be prepared on a drop-by-drop, month-to-date, and year-to-date basis and shall show totals by machine, denomination, and grand totals. Variance percentages between the coupon-in meter and actual coupons redeemed shall be computed by dividing the dollar variance by the total coupon in meter amount. When a variance both equals or exceeds 1% and equals or exceeds $10, the variance shall be investigated and documented in accordance with internal control procedures as approved by the commission under K.A.R. 112-104-1.

(h) No person shall alter meter information on any statistical report, unless the meter was read or recorded incorrectly or a data entry error occurred. All changes shall be supported with adequate documentation.

(i) If a variance exceeds any of the variances listed in subsection (g), then the facility manager shall prepare and file an incident report documenting the variance with the commission. The facility manager shall report the actual cause of the variance, unless the cause cannot be definitively determined after an investigation, in which case the probable cause of the variance shall be reported. The incident report shall be filed at least within one week from discovery. The incident report shall include the following:

(1) The date of the meter reading;

(2) the date the report was filed;

(3) the asset number of the device involved;

(4) the amount of the variance by currency, gaming tickets, or coupons;

(5) an explanation for the cause of the variance, with documentation to support the explanation;

(6) the manufacturer and model number of the device to which the bill validator is attached or in which the bill validator is embedded;

(7) the manufacturer of the bill validator involved;

(8) the total number of reported variances, by manufacturer and model number of the device;

(9) the total number of reported variances, by manufacturer of the bill validator;

(10) the total number of reported variances compared to the total number of bill validator canisters counted; and

(11) the signature and license number of the preparer.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-8 Retention, storage, and destruction of books, records, and documents

(a) Each facility manager's internal control system shall include internal controls for retention, storage, and destruction of books, records, and documents.

(b) For the purposes of this regulation, "books, records, and documents" shall mean any book, record, or document pertaining to, prepared in, or generated by the operation of the gaming facility, including all forms, reports, accounting records, ledgers, subsidiary records, computer-generated data, internal audit records, correspondence, and personnel records required by this article to be generated and maintained by this article. This definition shall apply without regard to the medium through which the record is generated or maintained, including, paper, magnetic media, and encoded disk.

(c) The facility manager shall ensure that all original books, records, and documents pertaining to the operation of a gaming facility meet the following requirements:

(1) Are prepared and maintained in a complete, accurate, and legible form. Electronic data shall be stored in a format that ensures readability, regardless of whether the technology or software that created or maintained the data has become obsolete;

(2) are retained at the site of the gaming facility or at another secure location approved under subsection (e);

(3) are kept available for inspection by agents of the commission and the Kansas lottery during all hours of operation;

(4) are organized and indexed in a manner to provide accessibility upon request to agents of the commission and the Kansas lottery; and

(5) are destroyed only after expiration of the minimum retention period specified in subsection (d). However, upon the written request of a facility manager and for good cause shown, the destruction at an earlier date may be permitted by the executive director.

(d) Each facility manager shall retain the original books, records, and documents for at least seven years, with the following exceptions:

(1) Gaming tickets reported to the commission as possibly counterfeit, altered, or tampered with shall be retained for at least two years.

(2) Coupons entitling patrons to cash or LFG credits, whether unused, voided, or redeemed, shall be retained for at least six months.

(3) Voided gaming tickets and gaming tickets redeemed at a location other than an LFG or a kiosk shall be retained for at least six months.

(4) Gaming tickets redeemed at an LFG or a kiosk shall be retained for at least 30 days.

(e) Any facility manager may request, in writing, that the executive director approve a location outside the gaming facility to store original books, records, and documents. The request shall include the following:

(1) A detailed description of the proposed offsite facility, including security and fire safety systems; and

(2) the procedures under which the commission and the Kansas lottery will be able to gain access to the original books, records, and documents retained at the off-site facility.

(f) Any facility manager may request in writing that the executive director approve an unalterable media system for the copying and storage of original books, records, and documents. The request shall include a description of the following:

(1) The processing, preservation, and maintenance methods that will be employed to ensure that the books, records, and documents are available in a format that makes them readily available for review and copying;

(2) the inspection and quality control methods that will be employed to ensure that the media, when displayed on a viewing machine or reproduced on paper, exhibit a high degree of legibility and readability;

(3) the accessibility by the commission and the Kansas lottery at the gaming facility or other location approved by the executive director and the readiness with which the books, records, or documents being stored on media can be located, read, and reproduced; and

(4) the availability of a detailed index of all stored data maintained and arranged in a manner to permit the location of any particular book, record, or document, upon request.

(g) Nothing in this regulation shall be construed as relieving a facility manager from meeting any obligation to prepare or maintain any book, record, or document required by any other federal, state, or local governmental body, authority, or agency.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-104-9 Complimentaries

(a) Each facility manager's internal control system shall include internal controls for the authorization, issuance, recording, and auditing of complimentaries, including cash and non-cash gifts. The internal controls shall be submitted according to K.A.R. 112-104-1. These internal controls shall include the procedures by which the facility manager delegates to its employees the authority to approve the issuance of complimentaries and the procedures by which conditions or limits that may apply to this authority are established and modified, including limits based on relationships between the authorizer and recipient.

(b) On a daily basis the facility manager shall record the name of each patron provided with complimentaries, the category of service or item, the value of the services or items provided to each patron or that patron's guests as calculated in accordance with subsection (d), and the license number of the employee authorizing the issuance of the services or items. For the purposes of this regulation, "guest" shall mean any person who receives complimentaries as a result of that person's relationship with the patron receiving the primary complimentaries. Upon request, a copy of this daily report shall be submitted to the commission.

(c) The internal audit department shall review the reports required in subsection (b) at least monthly. These reports shall be made available to the commission, audit committee of the board of directors, and any other entity designated by the executive director, upon request.

(d) All complimentaries shall be valued and recorded as follows:

(1) At full retail price normally charged by the facility manager if the complimentary is provided directly to patrons in the normal course of the facility manager's business, including rooms, food, and beverages;

(2) at an amount based upon the actual cost to the facility manager of providing the service or item, if the complimentary is not offered for sale to patrons in the normal course of a facility manager's business;

(3) at an amount based upon the actual cost to the facility manager of having a third party who is not affiliated with the facility manager provide a service or item directly or indirectly to patrons by the third party; or

(4) if provided directly or indirectly to a patron on behalf of a facility manager by a third party who is affiliated with the facility manager, in accordance with the provisions of this regulation as if the affiliated third party were the facility manager.

(e) Complimentaries that are cash gifts shall include the following:

(1) Public relations payments made for the purpose of resolving complaints by or disputes with facility manager patrons;

(2) travel payments made for the purpose of enabling a patron to return home;

(3) cash gifts issued to patrons as a result of actual gaming activity; and

(4) coupons issued and redeemed as part of a promotion program.

(f) The facility manager shall report to the commission on a quarterly basis both the dollar amount of and number of patrons provided with each category of complimentaries. The complimentaries reported shall be separated into categories for rooms, food, beverage, travel, cash gift, non-cash gift, and other services or items.

(g) If cash and non-cash complimentaries issued to a patron or the patron's guest or guests have a value of $600.00 or more, the facility manager shall meet the following requirements, in addition to those in subsection (f):

(1) Record the name and address of the recipient;

(2) record the unique identification number from the recipient's government-issued photo identification card and perform one of the following:

(A) Examine the identification card to ensure that it is consistent with the actual appearance of the patron;

(B) obtain the patron's signature and compare it to the patron's signature and general physical description in a patron signature file; or

(3) record the method of verification.

(h) All cash complimentaries shall be disbursed directly to the patron by a gaming cashier at the cage after receipt of appropriate documentation or in any other manner approved by the executive director.

(i) No facility manager shall permit any employee to authorize the issuance of cash or non-cash complimentaries with a value of $1,000.00 or more, unless the employee is licensed and functioning as a level I employee.

(j) Each facility manager shall submit to the commission a report listing the name of each patron who has received $1,000.00 or more in cash and non-cash complimentaries, including amounts received by the patron's guests within a calendar month. Each report shall be filed within five business days and shall include the total amount of cash or non-cash complimentaries provided to each patron and the patron's guests.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-10 Personal check cashing

(a) Each facility manager's internal control system shall include internal controls for the acceptance of personal checks. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. The internal controls submitted by the facility manager shall include procedures for complying with this regulation.

(b) Each personal check accepted by a facility manager to enable a patron to take part in gaming shall meet the following requirements:

(1) Be drawn on a commercial bank, savings bank, saving and loan association, or credit union located in the United States and be payable on demand;

(2) be drawn on an account listed in the name of the patron presenting the check or on an account for which the patron is a listed signatory;

(3) be drawn for a specific amount;

(4) be made payable to the facility manager; and

(5) be currently dated and not postdated.

(c) Each personal check accepted under subsection (b) shall be presented by the patron drafting the check directly to a gaming cashier. The gaming cashier shall do all of the following:

(1) Restrictively endorse the check "for deposit only" to the bank account designated by the facility manager;

(2) initial the check;

(3) date and time-stamp the check;

(4) verify that the signature of the patron on the personal check and the patron's physical appearance agree with information recorded in a patron signature file created and maintained by the facility manager in accordance with subsection (d) or with the signature and either the photograph or physical description contained on a government-issued identification presented by the patron. The gaming cashier shall document how the signature verification was performed in connection with the acceptance of each personal check;

(5) for each personal check equaling or exceeding $500.00, verify the validity of the check directly with the commercial bank, savings bank, saving and loan association, or credit union upon which the check is drawn or obtain an authorization and guarantee of the check from a check verification and warranty service certified as a vendor by the commission. The gaming cashier shall document how the check verification was performed in connection with the acceptance of each personal check; and

(6) exchange the personal check for cash in an amount equal to the amount for which the check is drawn.

(d) To record a patron's signature in a patron signature file, a gaming cashier shall require the person for whom the file is to be created to present for examination the following:

(1) If the identity of the patron is to be confirmed in accordance with paragraph (e)(1), one form of identification; or

(2) if the identity of the patron is to be confirmed in accordance with paragraph (e)(2), two forms of identification, at least one of which shall contain a photograph or a general physical description of the patron.

(e) Before a facility manager may use a signature recorded in a patron signature file to verify the identity of a patron or the validity of a signature on a document, the facility manager shall confirm the identity of the patron by either of the following:

(1) Comparing the signature on the identification presented by the patron under paragraph (d)(1) with the signature obtained from the patron and verifying the address of the patron's residence with a credit board or a commercial bank or, if neither of these sources has the person's address on file or will not provide the information, with an alternative source that does not include any documentation presented by the patron at the cage; or

(2) comparing the signature on each of two forms of the identification presented by the patron under paragraph (d)(2) with the signature obtained from the patron and comparing the photograph or general physical description contained on at least one of the forms of identification with the patron's actual physical appearance.

(f) Each facility manager's internal control system shall include internal controls for each patron signature file to be established and maintained by a facility manager under subsection (d) and shall include the following, in addition to the patron's signature:

(1) The patron's name;

(2) the patron's residential address;

(3) the types of identification examined under subsection (e) and an indication of whether the identification contained a photograph or physical description of the patron, including the date of birth, approximate height, approximate weight, hair color, and eye color;

(4) the date and time that the patron signature file was established;

(5) the procedure by which the identity of the patron was confirmed under subsection (e), including one of the following:

(A) The source of confirmation, date, and time if confirmed under paragraph (e)(1); or

(B) the date and time of confirmation if confirmed under paragraph (e)(2); and

(6) the signature of the gaming cashier or cage supervisor who examined the identification of the patron and established the patron signature file. The signature shall evidence that the following conditions are met:

(A) The signature of the patron recorded in the patron signature file is consistent with the signature on each form of identification that was examined; and

(B) the physical description recorded in the patron signature file is consistent with both the actual appearance of the patron and any photograph or physical description that may be contained on an identification that was examined.

(g) Each check shall be required to be deposited for collection by the next banking day following receipt.

(h) Each check returned for insufficient funds or any other reason shall be documented on a returned check log maintained by the accounting department and shall contain the following information:

(1) The original date of the check;

(2) the name and address of the drawer of the check;

(3) the amount of the check;

(4) the check number;

(5) the date the check was dishonored; and

(6) the date and amount of each collection received on the check after being returned by a financial institution, if applicable.

(i) The amount of all personal checks that remain uncollected shall be the responsibility of the facility manager and shall not be used in any net EGM income calculations.

(j) The facility manager shall not accept checks from any patron who has outstanding liabilities for any dishonored checks.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-11 Wire transfers

(a) Each facility manager's internal control system shall include internal controls for the acceptance, verification, accounting for, and sending of wire transfers. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1 and shall include the following:

(1) A cage log to record the following information with regard to wire transfers accepted:

(A) A sequential number assigned by the facility manager to the wire transfer transaction;

(B) the date and time of notification;

(D) the amount of funds transferred;

(E) the name of the patron for whose benefit the funds were transferred;

(F) the name and address of the financial institution from which the funds were transferred and the account number from which the funds were debited;

(G) the method by which the facility manager was notified of the receipt of the wire transfer. The method shall be limited to one of the following:

(i) Direct telephone notification between the facility manager's bank and a cage employee. When notice is provided by telephone, the name and title of the person providing notice shall be recorded;

(ii) direct hard copy communication sent by the facility manager's bank to a cage employee. The document shall be dated, time-stamped, and signed by the cage employee receiving the notification; or

(iii) direct computer access by the facility manager to the wire transfer or electronic fund transfer transaction as it is credited to the manager's operating account at its bank. The transaction shall be printed from the computer screen and dated, time-stamped, and signed by the cage employee receiving the notification;

(H) the method by which the facility manager verified the wire transfer with the sending financial institution and, if noticed by telephone, the name and title of the person verifying the transfer;

(I) the signature of the cage employee receiving and recording the information required by this subsection; and

(J) a notation that the wire transfer has been reversed under subsection (d), when applicable;

(2) a requirement that a cage supervisor other than the cage employee who initially documented receipt of the wire transfer verify receipt of the wire transfer according to one of the following:

(A) If notice was provided by telephone or direct hard copy, verify the wire transfer with a previously identified and authorized representative of the facility manager's financial institution; or

(B) if notice was provided by direct computer access, review the printout of the computer screen;

(3) a requirement that the cage supervisor verifying receipt of the wire transfer document the verification process performed in the log required under paragraph (a)(1), including the following:

(A) The method by which the receipt of the wire transfer was verified and, if verified by telephone, the name and title of the person providing the verification;

(B) the date and time of verification; and

(4) the procedures used to perform the following:

(A) Establish, verify, and document the identity of the patron;

(B) make the wire transfer proceeds available to the patron at the cage; and

(5) a cage log to record the following information with regard to wire transfers sent on behalf of a patron:

(A) The name of the patron;

(B) the date of the transaction;

(D) the source of funds transferred, whether cash, cash equivalent, or jackpot payout;

(E) the name and address of the financial institution to which the funds will be transferred and the account number to which the funds will be credited;

(F) the signature of the patron if the request to send a wire transfer is made in person at the cage;

(G) documentation supporting the receipt of a request by the facility manager to send a wire transfer on behalf of a patron if the request was not made in person at the cage;

(H) the signature of the cage employee receiving and recording the information required by this subsection; and

(I) the signature of the cage supervisor or accounting department supervisor authorizing the wire transfer; and

(6) when sending a wire transfer on behalf of a patron, the procedures used to perform the following:

(A) Verify and document the identity of the patron; and

(B) adjust the cage accountability.

(b) Each wire transfer accepted by a facility manager on behalf of a patron to enable a patron to take part in gaming shall be recorded in the facility manager's cage accountability documentation upon acceptance.

(c) Each facility manager shall take all steps necessary to return to a patron by wire transfer the patron's residual balance if both of the following circumstances exist after 14 gaming days following the patron's wired deposit:

(1) The wired funds remain in the facility manager's operating account or cage accountability.

(2) The patron has engaged in minimal or no EGM play. Minimal shall mean less than 20% of the wired funds.

(d) The wire transfer returned under subsection (c) shall be sent to the financial institution from which the funds were debited. This reversal of the wire transfer shall be recorded in the wire transfer log maintained under paragraph (a)(1).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-12 Cash equivalents

Each facility manager's internal control system shall include internal controls for the acceptance and verification of cash equivalents. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. The internal controls developed and implemented by the facility manager shall include the following:

(a) A requirement that cage employees perform the specific verification procedures required by the issuer of each cash equivalent accepted. The facility manager shall retain adequate documentation evidencing the verification of each cash equivalent;

(b) a requirement that cage employees examine each cash equivalent for counterfeiting, forgery or alteration;

(c) if a facility manager elects to incorporate in its verification procedures a level of reliance on previously accepted cash equivalents, a description of the general parameters governing the reliance;

(d) the criteria for cage supervisor involvement in the verification process;

(e) the procedures for verifying any patron signature on the cash equivalent. Signature verification shall be accomplished in accordance with the signature verification procedures in K.A.R. 112-104-10. The facility manager shall retain adequate documentation evidencing how each signature was verified; and

(f) for cash equivalents equaling or exceeding $500.00, verification of the validity of the cash equivalent with the financial institution upon which it is drawn. The gaming cashier shall document how the verification was performed in connection with the acceptance of each cash equivalent.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-13 Patron deposits

(a) Each facility manager's internal control system shall include internal controls for the receipt and withdrawal of patron deposits. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1.

(b) At the request of a patron, a facility manager may hold cash, funds accepted by means of wire transfer in accordance with K.A.R. 112-104-11, or cash equivalents accepted in accordance with K.A.R. 112-104-12 for a patron's subsequent use for gaming purposes. For the purposes of this regulation, non-cash items shall be considered converted to cash and deposited as cash for credit to the patron in a patron deposit account maintained in the cage.

(c) The internal controls developed and implemented by the facility manager under subsection (a) shall include the following:

(1) A requirement that patron deposits be accepted at the cage according to the following requirements:

(A) A file for each patron shall be prepared manually or by computer before the acceptance of a cash deposit from a patron by a gaming cashier, and the file shall include the following:

(i) The name of the patron;

(ii) a unique identifying number obtained from a United States government-issued photo identification card or a government-issued passport;

(iii) the date and amount of each cash deposit initially accepted from the patron;

(iv) the date and amount of each request accepted from the patron, as a draw against a cash deposit; and

(v) the date and amount of each cash deposit redemption;

(B) the gaming cashier accepting a deposit shall prepare a patron deposit form and other necessary documentation evidencing the receipt;

(C) patron deposit forms shall be serially prenumbered, each series of patron deposit forms shall be used in sequential order, and the series number of all patron deposit forms shall be accounted for by employees with no incompatible function. All original and duplicate void patron deposit forms shall be marked void and shall require the signature of the preparer;

(D) for establishments in which patron deposit forms are manually prepared, a prenumbered two-part form shall be used;

(E) for establishments in which patron deposit forms are computer-prepared, each series of patron deposit forms shall be a two-part form and shall be inserted in a printer that will simultaneously print an original and duplicate and store, in machine-readable form, all information printed on the original and duplicate. The stored data shall not be susceptible to change or removal by any personnel after preparation of a patron deposit form;

(F) on the original and duplicate of the patron deposit form, or in stored data, the gaming cashier shall record the following information:

(i) The name of the patron making the deposit;

(ii) a unique identifying number obtained from a United States government-issued photo identification card or a government-issued passport;

(iii) the total amount being deposited;

(iv) the date of deposit;

(v) the signature of the gaming cashier or, if computer-prepared, the identification code of the gaming cashier; and

(vi) nature of the amount received, including cash, cash equivalents, wire transfer, or electronic fund transfer; and

(G) after preparation of the patron deposit form, the gaming cashier shall obtain the patron's signature on the duplicate copy and shall distribute the copies in the following manner:

(i) If an original, give a copy to the patron as evidence of the amount placed on deposit with the facility manager; and

(ii) if a duplicate copy, forward the copy along with any other necessary documentation to the main bank cashier, who shall maintain the documents;

(2) a requirement that patron deposits be withdrawn by the patron at the cage or upon receipt by the facility manager of a written request for withdrawal whose validity has been established:

(A) A patron shall be allowed to use the deposit by supplying information as required by K.A.R. 112-104-10 to verify the patron's identification:

(i) The gaming cashier shall ascertain, from the cage, the amount of the patron deposit available and request the amount the patron wishes to use against this balance. The gaming cashier shall prepare a patron deposit withdrawal form, which shall include the signature of the patron; and

(ii) the gaming cashier shall verify the signature on the patron deposit withdrawal form with the signature on the patron deposit form and sign the patron deposit withdrawal form to indicate verification;

(B) the patron's deposit balance shall be reduced by an amount equal to that on the patron deposit withdrawal form issued at the cage;

(C) a patron may obtain a refund of any unused portion of the patron's funds on deposit by performing either of the following:

(i) Sending the facility manager a signed, written request for a refund together with a signed, original patron deposit form; or

(ii) appearing personally at the cage, requesting the refund, and returning the original patron deposit form;

(D) once the original patron deposit form is presented at a cage, a gaming cashier shall perform the following:

(i) Verify the unused balance with the main bank gaming cashier;

(ii) require the patron to sign the original of the patron deposit form;

(iii) prepare necessary documentation evidencing the refund, including a patron deposit withdrawal form or any other similar document that evidences the date and shift of preparation, the amount refunded, the nature of the refund made, the patron's name, and the signature of the gaming cashier preparing the documentation; and

(iv) verify the patron's identity with a United States government-issued photo identification card or a government-issued passport;

(E) the gaming cashier shall forward each original patron deposit form tendered by the patron pursuant to paragraph (c)(2)(D), along with any other necessary documentation, to the main bank gaming cashier, who shall compare the patron's signature on the original patron deposit form and any attached written, signed request required by paragraph (c)(2)(A)(i) to the patron's signature on the duplicate patron deposit form and on the original patron deposit withdrawal form. The main bank gaming cashier shall sign the original patron deposit form if the signatures are in agreement, notify the gaming cashier of the results of the comparison, and maintain the original patron deposit form and the documentation supporting the signature verification; and

(F) if the patron has requested the return of the patron's original deposit, the main bank gaming cashier shall return the patron's original patron deposit form to the gaming cashier. After the main bank gaming cashier has notified the gaming cashier that the signatures contained in paragraph (c)(2)(E) are a match, the gaming cashier shall then refund the unused balance of the deposit to the patron and, if applicable, return the original patron deposit form to the patron. The gaming cashier shall maintain any necessary documentation to support the signature verification and to evidence the refund;

(3) a requirement that the patron receive a receipt for any patron deposit accepted reflecting the total amount deposited, the date of the deposit, and the signature of the cage employee accepting the patron deposit; and

(4) procedures for verifying the identity of the patron at the time of withdrawal. Signature verification shall be accomplished in accordance with the signature verification procedures under K.A.R. 112-104-10. The facility manager shall maintain adequate documentation evidencing the patron identification process and the procedure for signature verification:

(A) A log of all patron deposits received and returned shall be prepared manually or by a computer on a daily basis by main bank gaming cashiers. The log shall include the following:

(i) The balance of the patron deposits on hand in the cage at the beginning of each shift;

(ii) for patron deposits received and refunded, the date of the patron deposit or refund, the patron deposit number, the name of the patron, and the amount of the patron deposit or refund; and

(iii) the balance of the patron deposits on hand in the cage at the end of each shift; and

(B) the balance of the patron deposits on hand in the cage at the end of each shift shall be recorded as an outstanding liability and accounted for by the main bank gaming cashier.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-104-14 Cage and main bank

(a) Each facility manager's internal control system shall include internal controls for the cage and the main bank. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. Each gaming facility shall have, adjacent to the gaming floor, a physical structure known as a cage. The cage shall house the cashiers and serve as the central location in the gaming facility for functions normally associated with the cage and the main bank, including the following:

(1) The custody of the cage inventory comprised of cash, cash equivalents, gaming chips, and the forms, documents, and records normally associated with the functions of a cage;

(2) the issuance, receipt, and reconciliation of imprest funds used by gaming cashiers, parimutuel tellers, and change persons in the acceptance of currency and coupons from patrons in exchange for currency;

(3) the exchange of currency, coin, gaming chips, and coupons for supporting documentation;

(4) the responsibility for the overall reconciliation of all documentation generated by gaming cashiers, parimutuel tellers, and change persons; and

(5) the receipt of currency, coupons, and tickets from the count room.

(b) The cage and the main bank shall provide maximum security for the materials housed, the employees located, and the activities performed in the cage and the main bank. The cage and the main bank shall meet all of the following requirements, at a minimum:

(1) The cage and the main bank shall be fully enclosed except for openings through which materials, including cash, records, and documents, can be passed to patrons, gaming cashiers, parimutuel tellers, and change persons.

(2) The cage and the main bank shall have manually triggered silent alarm systems located at the cashiers' window, vault, and in adjacent office space. The systems shall be connected directly to the monitoring room of the surveillance department and to the security department.

(3) The cage shall have a double-door entry and exit system that does not permit a person to pass through the second door until the first door is securely locked. In addition, all of the following requirements shall apply:

(A) The first door leading from the gaming floor of the double-door entry and exit system shall be controlled by the surveillance department through a commission-approved electronic access system designed and administered to provide a record of each entry authorization, including the authorizing employee's name and license number and the date and time of the authorization.

(B)The second door of the double-door entry and exit system shall be controlled by the cage through a commission-approved electronic access system designed and administered to provide a record of each entry authorization, including the authorizing employee's name and license number and the date and time of authorization.

(C)The double-door entry and exit system shall have surveillance coverage, which shall be monitored by the surveillance department.

(D)An entrance to the cage that is not a double-door entry and exit system shall be an alarmed emergency exit door only.

(4)Each door of the double-door entry and exit system shall have two separate commission-approved locking mechanisms.

(c)Any gaming facility may have one or more satellite cages separate and apart from the cage, established to maximize security, efficient operations, or patron convenience. The employees in a satellite cage may perform all of the functions of the employees in the cage. Each satellite cage shall be equipped with an alarm system in compliance with paragraph (b)(2). The functions that are conducted in a satellite cage shall be subject to the accounting controls applicable to a cage specified in K.A.R. 112-104-16.

(d)Each facility manager shall maintain and make available to the commission, upon request, a detailed and current list of the name of each employee meeting either of the following conditions:

(1) Possessing the combination to the locks securing the double-door entry and exit system restricting access to the cage and the main bank, any satellite cage, and the vault; or

(2) possessing the ability to activate or deactivate alarm systems for the cage, the main bank, any satellite cage, and the vault.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-104-15 Count room and main bank requirements

(a) Each facility manager shall have a count room and a main bank. The count room and the main bank shall be adjacent to the cage.

(b) Each count room and main bank shall meet both of the following requirements:

(1) Both rooms shall have a metal door for each entrance and exit. Each of these doors shall be equipped with an alarm device that audibly signals the surveillance department monitoring room and the security department whenever the door is opened at times other than those times for which the facility manager has provided prior notice according to K.A.R. 112-104-20.

(2) Each entrance and exit door shall be equipped with two separate commission-approved locking mechanisms. The combinations shall be maintained and controlled as follows:

(A) One of the commission-approved locking mechanisms shall be controlled by the surveillance department.

(B) Each entry shall be maintained in a log indicating the name and license number of each employee who entered the count room or the main bank and the date and time of the entry.

(1) A table constructed of clear glass or similar material for the emptying, counting, and recording of the contents of bill validator canisters; and

(2) surveillance cameras capable of video monitoring the following:

(A) The entire count process; and

(B) the interior of the count room, including any storage cabinets or trolleys used to store bill validator canisters, and any commission-approved trolley storage area located adjacent to the count room.

(d) The following shall be located within the main bank:

(1) A vault or locking cabinets, or both, for the storage of currency and gaming chips; and

(2) surveillance cameras capable of video monitoring the following:

(A) Interior of the vault room, including unobstructed views of counting surfaces;

(B) the exchange of currency, gaming chips, and documentation through any openings; and

(3) a secure opening through which only currency, gaming chips, and documentation can be passed to gaming cashiers, parimutuel tellers, and change persons.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-104-16 Accounting controls for the cage and main bank

(a) Each facility manager's internal control system shall include internal controls for cage and main bank accounting. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. If the facility manager elects to use a satellite cage, the same requirements shall apply.

(b) The facility manager shall provide the commission with the start and end times of each cage and main bank shift.

(c) The assets for which gaming cashiers are responsible shall be maintained on an imprest basis and protected from unauthorized access. Gaming cashiers shall lock and secure any assets that are outside of their direct physical control.

(1) Before redeemed tickets are transferred from a cage window to the main bank, the gaming cashier shall prepare an automated system report of the total number and value of the tickets redeemed at that window and compare that report to physical tickets being transferred to ensure that they match. Before reimbursing the cashier, the main bank cashier shall total the tickets received to verify that the dollar amount matches the amount on the gaming cashier's report or shall compare the tickets to the report to ensure that all tickets are present.

(2) Only tickets redeemed in the system shall be forwarded to accounting. If the online validation system ceases to function through the end of the gaming day and the cage is unable to redeem in the system any tickets received in the cage that day, these unredeemed tickets shall have the bar code manually canceled by completely filling in one space of the bar code with a black permanent marker before being forwarded to accounting to prevent subsequent automated redemption.

(3) At the end of each shift, the outgoing gaming cashier shall count all assigned assets and prepare and sign a bank count sheet listing the inventory. A reconciliation of the opening imprest amount to the closing inventory total shall be performed. Any variance shall be documented on the count sheet.

(4) The incoming gaming cashier shall verify by blind count the closing inventory and sign the count sheet in the presence of the outgoing gaming cashier, attesting to accuracy of the information recorded on the sheet. If there is no incoming gaming cashier, a gaming cashier supervisor or the most senior supervisor in the department shall verify by blind count the closing inventory and sign the count sheet in the presence of the outgoing gaming cashier, attesting to accuracy of the information recorded on the sheet. At the completion of each shift, the cashier count sheets shall be forwarded to the main bank cashier.

(d) If an imprest bank has not been opened for use, a main bank cashier or supervisor shall count and verify the imprest bank and complete a count sheet at least once every seven days.

(e) At the opening of every shift, in addition to the imprest funds normally maintained by gaming cashiers, each facility manager shall have in the cage a reserve cash bankroll sufficient to pay winning patrons.

(f) The cage, any satellite cage, and the main bank shall be physically segregated by personnel and function as follows:

(1) Gaming cashiers shall operate with individual imprest inventories of cash, and their functions shall include the following:

(A) The receipt of cash and cash equivalents from patrons in exchange for cash according to K.A.R. 112-104-12;

(B) the receipt of personal checks for gaming and non-gaming purposes from patrons in exchange for cash, subject to any limitations on amount required by the commission according to K.A.R. 112-104-10;

(C) the receipt of cash, cash equivalents, checks issued by the facility manager, annuity jackpot checks, wire transfers, and cashless fund transfers from patrons to establish a patron deposit according to K.A.R. 112-104-13;

(D) the receipt of patron deposit forms from patrons in exchange for cash according to K.A.R. 112-104-13;

(E) the preparation of jackpot payout slips in accordance with this regulation and K.A.R. 112-104-21;

(F) the receipt of gaming tickets from patrons or from authorized employees who received gaming tickets as gratuities, in exchange for cash; and

(G) the issuance of cash to automated bill breaker, gaming ticket, coupon redemption, and jackpot payout machines in exchange for proper documentation.

(2) The main bank cashier functions shall include the following:

(A) The receipt of cash, cash equivalents, gaming tickets, jackpot payout slips, and personal checks received for gaming and non-gaming purposes from gaming cashiers in exchange for cash;

(B) the receipt of cash from the count rooms;

(D) the preparation of the overall cage reconciliation and accounting records. All transactions that are processed through the main bank shall be summarized on a vault accountability form and be supported by documentation according to the following:

(i) At the end of each shift, the outgoing main bank cashier shall count the inventory and record the inventory detail and the total inventory on a vault accountability form. The main bank cashier shall also record the amount of each type of accountability transaction, the opening balance, the closing balance, and any variance between the counted inventory and the closing balance. If there is more than one main bank cashier working during a shift, each cashier shall participate in the incoming count and the outgoing count for that shift; and

(ii) a blind count of the inventory shall be performed by the incoming main bank cashier. The incoming main bank cashier shall sign the completed vault accountability form attesting to the accuracy of the information in the presence of the outgoing main bank cashier. If there is no incoming main bank cashier, a cage supervisor shall conduct the blind count and verification and sign the completed vault accountability form in the presence of the outgoing main bank cashier;

(E) the preparation of the daily bank deposit for cash, cash equivalents, and personal checks;

(F) the issuance, receipt, and reconciliation of imprest funds used by gaming cashiers, parimutuel tellers, and change persons;

(G) the collection of documentation that is required by these regulations to establish the segregation of functions in the cage;

(H) the responsibility for the reserve cash bankroll;

(I) the receipt of unsecured currency and unsecured gaming tickets and preparation of related reports; and

(J) the issuance, receipt, and reconciliation of imprest funds used by any redemption kiosk, which shall be done according to the following requirements:

(i) Redemption kiosks shall be maintained on an imprest basis on the main bank accountability form and shall be counted down and reconciled within 24 hours of adding funds to or removing funds from the redemption kiosk. In order to reconcile the redemption kiosk, all currency, tickets, and coupons remaining in the redemption kiosk shall be removed, counted, and compared to the redemption kiosk report that lists the amount of each item that should have been in the redemption kiosk. Each redemption kiosk shall be reconciled at least once every three days regardless of activity at that kiosk. If redemption kiosks are used for any other type of transaction, including providing automated teller machine functions, corresponding reports shall be printed and reconciled during the kiosk reconciliation. The internal controls shall include a record of the name of each person who performs the count and reconciliation. All kiosk counts shall be performed under dedicated surveillance coverage in the count room or main bank and shall be documented. The reconciliation of the redemption kiosk shall be documented and signed by the employee performing the reconciliation;

(ii) the main bank shall have a designated area for the preparation of currency cassettes and a designated storage area for cassettes that contain cash. Both locations shall be described in the internal controls. The designated preparation area shall have overhead, dedicated surveillance coverage. The storage area of the cassettes shall have dedicated surveillance coverage to record the storage and retrieval of currency cassettes. The storage area shall be locked when cassettes are not being removed or added to the area. Empty currency cassettes shall not be stored with the currency cassettes containing cash;

(iii) all currency cassettes used in kiosks shall be filled with currency by a main bank cashier. The amount of currency to be placed in the cassettes shall be counted by the main bank cashier and placed in the cassette. A prenumbered tamper-resistant seal that secures the cash in each cassette shall be immediately placed on the cassette. The type of seal shall be submitted to the commission director of security for prior approval. All cassettes that contain currency and are not immediately placed in a kiosk shall be stored in the designated storage area;

(iv) a currency cassette log shall be maintained and updated each time currency cassettes are sealed. The log shall contain the following information: date, time, seal number, cassette number, amount of currency in the cassette, denomination of currency in the cassette, and signature of the main bank cashier who prepared the cassette;

(v) each cassette shall be labeled with the required dollar denomination for that cassette and a unique cassette number. The label shall be clearly visible to surveillance during the fill process;

(vi) each individual transporting currency cassettes outside of the cage shall be escorted by security;

(vii) only cassettes properly prepared and sealed in the main bank shall be used to place currency in the redemption kiosk. A seal may be broken before the count and reconciliation only if there is a machine malfunction. If a seal must be broken before the redemption kiosk is reconciled due to a malfunction, the cassette shall be brought to the main bank with security escort before the seal is broken. The seal shall be broken under surveillance coverage. Once the cassette is repaired, the funds shall be recounted and resealed by the main bank cashier;

(viii) the individual who removed the seal on the cassette in order to perform the count of the cassettes shall record the seal number of all cassettes used in the kiosk since the last reconciliation on the count and reconciliation documentation;

(ix) the individual who reconciles the redemption kiosk shall not be one of the individuals who initially prepared the currency in any of the cassettes used in the kiosk since the last reconciliation; and

(x) if cassettes need to be replaced during the gaming day before the redemption kiosk is dropped and reconciled, the individual cassettes that are replaced and that still contain currency shall be locked in a storage area designated in the internal controls. This storage area shall be separate from the storage area of filled cassettes.

(g)(1) Whenever a gaming cashier, parimutuel teller, or change person exchanges funds with the main bank cashier, the cashier shall prepare a two-part even exchange form. The form shall include the following, at a minimum:

(A) The date of preparation;

(B) the window location;

(D) the type of items exchanged;

(E) the total of the items being exchanged;

(F) the signature of the cashier preparing the form requesting the exchange; and

(G) the signature of the cashier completing the exchange.

(2) If the exchange is not physically between a gaming cashier, parimutuel teller, or change person and the main bank, the exchange shall be transported by a representative of the security department, who shall sign the form upon receipt of the items to be transported.

(h) Overages and shortages per employee shall be documented on a cage or bank variance slip, which shall be signed by the responsible cashier and that person's supervisor. Each variance in excess of $50 shall be investigated and the result of the investigation shall be documented. If there is a variance of $500 or more, the commission agent on duty shall be informed within 24 hours. Repeated shortages by an employee totaling $500 or more over any seven-day period shall be reported to the commission agent on duty within 24 hours.

(i) All cashier's paperwork shall include the date, shift of preparation, and location for which the paperwork was prepared.

(j) At the end of each gaming day, the cashiers' original bank count sheet, vault accountability form, and related documentation shall be forwarded to the accounting department for verification of agreement of the opening and closing inventories, agreement of amounts on the sheets with other forms, records, and documents required by this article, and recording transactions.

(k) Each facility manager shall establish a training program for gaming cashiers and main bank cashiers, which shall include written standard operating procedures. No cashier shall be allowed to individually perform gaming cashier duties until the cashier has completed at least 40 hours of training. No cashier shall be allowed to individually perform main bank cashier duties until the cashier has completed at least 80 hours of training.

(l) Each gaming facility employee shall clear that individual's hands in view of all persons in the immediate area and surveillance immediately after the handling of any currency or gaming chips within the cage, main bank, or count room.

(m) No employee shall be permitted to carry a pocketbook or other personal container into any cashiering area unless the container is transparent. All trash shall be placed in a transparent container or bag and inspected by security when removed from the cashiering area.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-104-17 Bill validators and bill validator canisters

(a) Each facility manager's internal control system shall include internal controls for bill validators and their related canisters. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. Each electronic device configured to accept any combination of currency, gaming tickets, coupons, and any other instruments authorized by the commission shall be equipped with a bill validator.

(b) Each bill validator used by the facility manager shall meet the technical standards adopted by the commission under article 110. The identifying information on each bill validator shall be noted on the master list of approved gaming machines in accordance with K.A.R. 112-107-10.

(c) If an electronic device has a bill validator that is controlled by a software program that can be modified without replacing any physical element of the bill changer, the facility manager shall submit for review and approval the manager's internal controls, which shall address the following:

(1) The method for detecting authorized and unauthorized software changes;

(2) the generation of a daily report from its EGM monitoring system, which immediately documents the software change;

(3) procedures for the control and installation of the software by the management information systems (MIS) department;

(4) the creation of a software control log by the MIS department evidencing all authorized changes to the bill validator software; and

(5) the review and comparison of the report and log required in paragraphs (c)(2) and (4) by the internal audit department for any deviations and investigation.

(d) Access to the bill validator shall be controlled by at least one lock, the key to which shall be controlled by the EGM department.

(e) Unless otherwise authorized by the commission, each electronic device with a bill validator attached shall also be equipped with the following mechanical, electrical, or electronic machines:

(1) A cash box meter that continuously and automatically registers the total amount in dollars accepted by the bill validator;

(2) bill meters that continuously and automatically count, for each denomination of currency accepted by the bill validator, the actual number of bills accepted by the bill validator; and

(3) any other meters that may be required by the executive director.

(f) The bill validator in each electronic device shall contain a secure, tamper-resistant container known as a bill validator canister. Currency, gaming tickets, coupons, and commission-approved instruments inserted into the bill validator shall be deposited into the bill validator canister.

(g) The bill validator canister shall be secured to the bill validator by two separate locks, the keys to which shall be different from each other. One key shall be to the lock on the belly door or main door of the EGM, and the second key shall be for the lock on the release mechanism on the bill validator canister. If there is not a full door on the bill validator, the lock on the release mechanism on the bill validator canister shall detect and display whether the lock is locked or unlocked and communicate whether the lock is locked or unlocked to an EGM monitoring system. The keys shall be maintained and controlled as follows:

(1) The key to the belly door or main door of the electronic device shall be maintained and controlled by the EGM department.

(2) The key to the lock securing the release mechanism on the bill validator canister shall be maintained and controlled by the security department. The security department shall establish a sign-out and sign-in procedure for this key, which shall include documentation of each transfer.

(h) Each bill validator canister shall meet the following requirements:

(1) Have at least one lock securing the contents of the bill validator canister, the key to which shall be maintained and controlled by the cage department;

(2) have a slot opening through which currency, gaming tickets, and coupons can be inserted into the bill validator canister;

(3) have a mechanical arrangement or device that prohibits the removal of currency, gaming tickets, and coupons from the slot opening whenever the bill validator canister is removed from the bill validator;

(4) be fully enclosed, except for openings that may be required for the operation of the bill validator or the bill validator canister. However, the location and size of the openings shall not affect the security of the bill validator canister, its contents, or the bill validator;

(5) have an asset number that is permanently imprinted, affixed, or impressed on the outside of the bill validator canister that corresponds to the asset number of the electronic device to which the bill validator has been attached. In lieu of the asset number, a facility manager may develop and maintain, with prior commission approval, a system for assigning a unique identification number to its bill validator canisters. The system shall ensure that each bill validator canister can readily be identified, either manually or by computer, when in use with, attached to, and removed from a particular bill validator. Each unique identification number shall be permanently imprinted, affixed, or impressed on the outside of each bill validator canister that does not otherwise bear an asset number. The asset number or unique identification number shall be conspicuous and visible to persons involved in removing or replacing the bill validator canister in the bill validator and through the facility manager's surveillance system. However, emergency bill validator canisters may be maintained without an asset number or a unique identification number if the word "emergency" is permanently imprinted, affixed, or impressed on each canister and if, when put into use, each canister is temporarily marked with the asset number of the electronic device to which the bill validator is attached; and

(6) be designed and installed in a manner that renders the electronic device inoperable in the event of the removal or absence of the bill validator canister.

(i) Notwithstanding paragraph (h)(5), any facility manager that uses a computerized EGM monitoring system may use bill validator canisters and any related components, which shall, through the use of technology approved by the commission, meet the following requirements:

(1) Have a unique identifier number assigned to each bill validator canister:

(A) The number shall not be subject to change without the approval of the executive director; and

(B) the facility manager shall provide the commission with a list of the unique identifier numbers;

(2) in the EGM monitoring system, associate the bill validator canister with the electronic device into which the bill validator canister is inserted. The association shall remain with the bill validator canister until the completion of the count process; and

(3) provide the commission and the facility manager with a method to determine the unique identifier number of the bill validator canister.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-18 Transportation of bill validator canisters to and from bill validators; storage

(a) Each facility manager's internal control system shall include internal controls for the transportation of bill validator canisters. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. Each facility manager shall file with the commission a schedule setting forth the specific times at which bill validator canisters will be brought to or removed from the bill validators, along with specifications as to the areas of the gaming floor where canisters will be brought to or removed from the bill validator on each pickup day and the specific transportation route to be utilized from the gaming floor to the count room.

(b) Each facility manager shall maintain and make available to the commission, upon request, a detailed and current list of all employees participating in the transportation of bill validator canisters. Each deviation from the schedule setting forth the specific times at which bill validator canisters will be brought to or removed from the bill validators, change in the areas to be dropped, or change in the transportation route to the count room shall be noticed to the commission in advance.

(c) Each bill validator canister removed from a bill validator shall be transported directly to, and secured in, the count room or a trolley storage area located adjacent, configured, and secured by at least three employees. At least one of these employees shall be a member of the security department, and at least one of these employees shall be a member of the cage department. The facility manager shall also comply with the following procedures:

(1) Before the removal of a bill validator canister from a bill validator, patrons shall be removed from the immediate area being dropped by representatives of the security department.

(2) Each bill validator canister that is removed from a bill validator during the drop process shall be replaced with an empty bill validator canister that meets the requirements of K.A.R. 112-104-17.

(3) Upon its removal from a bill validator, a bill validator canister shall be placed in an enclosed trolley that is secured by two separately keyed locks. The keys shall be maintained and controlled as follows:

(A) The key to one lock shall be maintained and controlled by the cage department; and

(B) the key to the second lock shall be maintained and controlled by the security department. Access to the security department's key shall be controlled by a sign-out and sign-in procedure. The security department's key shall be returned to its secure location upon the completion of the collection and transportation of the bill validator canisters.

(4) Before the movement of any trolley containing bill validator canisters from the gaming floor into the count room, the drop team supervisor shall verify that the number of bill validator canisters being transported from the gaming floor equals the number of bill validator canisters scheduled to be collected that day.

(5) Each bill validator canister being replaced by an emergency bill validator canister shall be transported to, and secured in, the count room by at least three employees, at least one of which shall be a member of the cage department and at least one of which shall be a member of the security department.

(d) All bill validator canisters not contained in a bill validator, including emergency bill validator canisters that are not actively in use, shall be stored in the count room or other secure area outside the count room approved by the commission, in an enclosed storage cabinet or trolley and secured in the cabinet or trolley by a separately keyed, double-locking system. The keys shall be maintained and controlled as follows:

(1) The key to one lock shall be maintained and controlled by the cage department; and

(2) the key to the second lock shall be maintained and controlled by a security department. Access to the security department's key shall be limited to a supervisor of that department.

(e) Notwithstanding subsection (c), the security department may, before beginning the count process, issue its key to the storage cabinet or trolley to a count room supervisor for the purpose of allowing count room personnel to gain access to the bill validator canisters to be counted. Each key transferred from the custody of the security department to the count room supervisor shall be returned immediately following the conclusion of the count of the bill validator canisters and the return of the empty emergency drop boxes and bill validator canisters to their respective storage cabinet or trolley by the count room supervisor. The security department shall establish a sign-out and sign-in procedure, which shall include documentation of each transfer.

(f) Employees authorized to obtain bill validator canister storage cabinet or trolley keys shall be precluded from having simultaneous access to bill validator canister keys, with the exception of the count team in the count room.

(g) The access to bill validator canisters stored in the count room that have not been emptied and counted shall be restricted to authorized members of the drop and count teams.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-19 Unsecured currency, gaming tickets, and coupons

(a)(1) Each facility manager's internal control system shall include internal controls for unsecured currency, gaming tickets, and coupons. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1.

(2) As used in this article when modifying "currency," "gaming ticket," or "coupon," "unsecured" shall mean that the currency, gaming ticket, or coupon is found inside a bill validator but outside the bill validator canister.

(3)(A) If an EGM department representative finds any unsecured currency, tickets, or coupons, the representative shall complete a form that includes the following:

(i) The asset number or other unique identification number of the bill validator canister in the bill validator in which the unsecured currency, unsecured gaming ticket, or unsecured coupon was found;

(ii) the date the unsecured currency, unsecured gaming ticket, or unsecured coupon was found; and

(iii) the total value of the unsecured currency, unsecured gaming ticket, or unsecured coupon.

(B) After the requirement specified in paragraph (a)(3)(A) is met, a representative of the gaming machine department or cage department and a member of the security department shall perform the following:

(i) Sign the form as evidence of the total value being transported;

(ii) place the form and the unsecured currency, unsecured gaming ticket, or unsecured coupon into an envelope or container, unless the form is printed on the front of the envelope in which the currency, gaming ticket, or coupon is being placed; and

(iii) transport the envelope or container directly to the cage.

(b) Upon receipt of the envelope or container from the EGM department representative or cage department representative, a main bank cashier or cage supervisor shall prepare an unsecured bill validator report. If the unsecured currency, unsecured gaming ticket, or unsecured coupon was not transported by an EGM department supervisor or cage supervisor, the unsecured bill validator report shall be prepared by a cage supervisor pursuant to subsection (d).

(c) The unsecured bill validator reports shall be on serially prenumbered forms. Each series of unsecured bill validator reports shall be used in sequential order and shall be accounted for by employees of the accounting department. All original and duplicate void unsecured bill validator reports shall be marked "void" and shall require the signature of the preparer. All copies of void unsecured bill validator reports shall be forwarded to the accounting department at the end of each gaming day.

(d) For facilities in which unsecured bill validator reports are manually prepared, the following requirements shall be met:

(1) Each series of unsecured bill validator reports shall be a three-part form and shall be inserted into a locked dispenser that permits an individual slip in the series and its copies to be written upon simultaneously while still locked in the dispenser and that discharges the original and duplicate while the triplicate remains in a continuous, unbroken form in the dispenser.

(2) Access to the triplicates shall be maintained and controlled at all times by employees responsible for controlling and accounting for the unused supply of unsecured bill validator reports, placing unsecured bill validator reports in the dispensers, and removing from the dispensers the remaining triplicates.

(e) For facilities in which unsecured bill validator reports are computer-prepared, each series of unsecured bill validator reports shall be a two-part form and shall be generated by a computer system that can simultaneously print an original and duplicate and store, in machine-readable form, all information printed on the original and duplicate and discharge the original and duplicate. The stored data shall not be susceptible to change or removal by any personnel after preparation of the unsecured bill validator report.

(f) On the original, duplicate, and triplicate or, if applicable, in stored data, the main bank cashier or cage supervisor shall record the following information:

(1) The date and time of preparation;

(2) the asset number or other unique identification number of the bill validator canister in the bill validator from which the unsecured currency, unsecured gaming ticket, or unsecured coupon was removed;

(3) each denomination of unsecured currency;

(4) the total value of the unsecured currency;

(5) each denomination of unsecured coupons;

(6) the total value of the unsecured coupons;

(7) the serial number and value of each unsecured gaming ticket;

(8) the total value of the unsecured gaming tickets; and

(9) the signature or, if computer-prepared, identification code of the preparer.

(g) The original and duplicate copies of the unsecured bill validator report shall be presented to the representative of the EGM department or cage department and the security representative for signature.

(h)(1) Upon meeting the signature requirements, the main bank cashier or cage supervisor shall transport the unsecured currency, unsecured gaming tickets, and unsecured coupons along with the original and duplicate copies of the unsecured bill validator report to the main bank and shall do one of the following:

(A) If the unsecured bill validator report was prepared by a cage supervisor, the main bank cashier shall perform the following:

(i) Sign the original and duplicate copies of the unsecured bill validator report;

(ii) retain the original unsecured bill validator report and the unsecured currency, unsecured gaming tickets, and unsecured coupons; and

(iii) return the duplicate unsecured bill validator report to the cage supervisor, who shall attach the form referenced in subsection (a) to the duplicate and deposit the duplicate with the attached form into the locked accounting box located in the cage.

(B) If the unsecured bill validator report was prepared by the main bank cashier, the main bank cashier shall perform the following:

(i) Retain the original unsecured bill validator report and the unsecured currency, unsecured gaming tickets, and unsecured coupons;

(ii) attach the form referenced in subsection (a) to the duplicate unsecured bill validator report; and

(iii) return the duplicate unsecured bill validator report and attached form to the security representative, who shall deposit the duplicate with the attached form into a locked accounting box maintained in a location approved by the commission.

(2) The main bank cashier shall then perform one of the following:

(A) Add the value of the unsecured currency, unsecured gaming tickets, and unsecured coupons to the main bank's accountability and retain the original of the unsecured bill validator report until the end of the gaming day; or

(B) maintain the unsecured currency, the unsecured gaming tickets, the unsecured coupons, and the original unsecured bill validator report until collected by a count room supervisor and transported to the count room, where both of the following requirements shall be met:

(i) The currency, gaming tickets, and coupons shall be counted with the contents removed from the corresponding bill validator canisters and recorded on the bill validator canisters report; and

(ii) the original unsecured bill validator report shall be forwarded to the accounting department.

(i) At the end of the gaming day, the original and the duplicate copy of the unsecured bill validator report, along with any gaming tickets and coupons, shall be forwarded as follows:

(1) If, pursuant to paragraph (h)(1), the main bank cashier has retained possession of the original, the cashier shall forward the original, along with any gaming tickets and coupons, directly to the accounting department for agreement with the triplicate or stored data; and

(2) the duplicate with the attached form shall be forwarded directly to the accounting department for recording on the bill validator canisters report and gaming machine win sheet and agreement with the triplicate or stored data. However, no additional recording of the unsecured currency, unsecured gaming tickets, and unsecured coupons shall be required if the currency, gaming tickets, and coupons have been transported to the count room, counted, and recorded pursuant to paragraph (h)(2).

(j) The duplicate copy of the unsecured bill validator report shall be attached to the bill validator canisters report as supporting documentation. A notation shall be made on the duplicate unsecured bill validator report indicating whether the dollar value of the unsecured currency, unsecured coupons, and unsecured gaming tickets has been added to the bill validator canisters report, gaming machine win sheet, and the main bank's accountability in accordance with subsection (g) or (h).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-20 Counting and recording bill validator canisters

(a) Each facility manager's internal control system shall include internal controls for the opening, counting, and recording of the contents of bill validator canisters. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1.

(b) The internal controls developed and implemented by the facility manager under subsection (a) shall include a description of all computer equipment used in the counting and recording process and other systems, if any, that communicate with that computer equipment for purposes related to the counting of net EGM income.

(c) Each facility manager shall file with the commission a schedule setting forth the specific times during which the contents of bill validator canisters are to be counted and recorded. Each deviation from the schedule shall be noticed to the commission at least 48 hours in advance.

(d) The computerized equipment utilized to count and secure currency, gaming tickets, and coupons shall meet the following requirements:

(1) Automatically provide two separate counts of the funds at different stages of the count process and, if the separate counts are not in agreement, document the discrepancy; and

(2) be capable of determining the value of a gaming ticket or coupon by independently examining information printed on the gaming ticket or coupon. The information shall be used by the counting equipment to either calculate the value internally or obtain the value directly from the gaming ticket system or coupon system in a secure manner. If the gaming ticket system is utilized to obtain the value of a gaming ticket or coupon, the gaming ticket system shall perform a calculation or integrity check to ensure that the value has not been altered in the system in any manner since the time of issuance.

(e) All persons accessing the count room when uncounted funds are present shall wear clothing without any pockets or other compartments, with the exception of representatives of the commission, the Kansas lottery, the facility security department, the facility internal audit department, and independent auditors specified in K.A.R. 112-104-6.

(f) No person present in the count room shall perform either of the following:

(1) Carry a handbag or other container unless it is transparent; or

(2) remove that person's hands from or return them to a position on or above the count table or counting equipment, unless the backs and palms of the hands are first held straight out and exposed to the view of other members of the count team and a surveillance camera.

(g) Immediately before beginning the count, a count room employee shall notify the surveillance department that the count is about to begin, to facilitate the recording, under article 106, of the entire count process.

(h) Each gaming ticket or coupon deposited in a bill validator canister shall be counted and included in the calculation of net EGM income without regard to the validity of the gaming ticket or coupon.

(i) A coupon that has not already been canceled upon acceptance or during the count shall be canceled before the conclusion of the count.

(j) Each variance between the value of cash gaming tickets and coupons in a bill validator canister as determined in the count room and the value for that particular bill validator canister recorded on corresponding reports generated by the gaming ticket system or coupon system shall be disclosed to the commission in a detailed written report citing each variance, the reason for the variance, and the corrective action taken. This variance report shall be filed by the facility manager with the commission within 72 hours of the count that is the subject of the variance.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-21 Jackpot payouts

(a) Each facility manager's internal control system shall include internal controls for jackpot payouts that are not paid directly from an EGM and for the method of jackpot payout specified in subsection (d). The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1.

(b) The internal controls developed and implemented by the facility manager under subsection (a) shall include the following:

(1) A request for jackpot payout document or an electronic entry into an EGM computer system generating jackpot payouts by an EGM department employee or EGM department supervisor, evidencing the observation by the EGM department employee or EGM department supervisor of the winning combination of characters on the EGM and a determination of the amount of the jackpot payout based on the observed winning combinations;

(2) a requirement that the preparer of the request for jackpot payout document or the employee performing the electronic entry into the EGM computer system be an EGM department supervisor if the hand-paid jackpot is $10,000 or more;

(3) a requirement that the following information be on the request for jackpot payout document or electronically entered into the EGM computer system and maintained in stored data:

(A) The date and time of the jackpot;

(B) the asset number of the EGM on which the jackpot was registered;

(C) the winning combination of characters constituting the jackpot or a code corresponding to the winning combination of characters constituting the jackpot;

(D) the dollar amount of the jackpot payout in both alpha and numeric form or a description of personal property awarded, including the fair market value of the personal property;

(E) the method of payment requested by the patron;

(F) the signature or identification code of the preparer; and

(G) the following additional signatures or identification codes, which shall be required if the EGM or the progressive meter is reset before the patron is paid or if payment is made directly to the patron by a gaming cashier:

(i) The signature or identification code of a security department member or EGM department attendant other than the preparer, attesting to the winning combination of characters constituting the jackpot and the amount of the jackpot payout; or

(ii) the signature or identification code of the EGM department shift manager, attesting to the winning combination of characters constituting the jackpot and the amount of the jackpot payout if the jackpot amount is $25,000 or more;

(4) a requirement that, upon preparation, the request for jackpot payout document be transported by the preparer to the cage, where the document will serve to authorize the preparation of a jackpot payout document or that the information be made available by the EGM computer system;

(5) a requirement that if the winning patron will not be paid before the EGM or progressive meter is reset, the preparer of the request for jackpot payout document or the employee performing the electronic entry required by paragraph (b)(1) also prepare a two-part receipt document containing the following information:

(A) The date and time of the jackpot;

(B) the asset number of the EGM on which the jackpot was registered;

(C) the winning combination of characters constituting the jackpot or a code corresponding to the winning combination of characters constituting the jackpot;

(D) the dollar amount of the jackpot payout in both alpha and numeric form or a description of personal property awarded, including the fair market value of the personal property;

(E) the signature of the winning patron on the original form only; and

(F) the signature of the preparer, attesting that the information on the receipt document is correct and agrees with the information on the request for jackpot payout document or in stored data;

(6) a requirement that the receipt document be distributed as follows:

(A) The original shall be immediately delivered to the gaming cashier by the preparer, security department member, or verifying EGM department attendant, along with the request for jackpot payout document if manually generated in accordance with paragraph (b)(1); and

(B) the duplicate shall be immediately presented to the winning patron, who shall be required to present the duplicate receipt document before being paid the jackpot in accordance with the procedures set forth in this regulation;

(7) a requirement that the following information be on any jackpot payout document generated by the EGM computer system:

(A) The asset number of the EGM on which the jackpot was registered;

(B) the winning combination of characters constituting the jackpot or a code corresponding to the winning combination of characters constituting the jackpot;

(D) the dollar amount of the jackpot payout in both alpha and numeric form or a description of personal property awarded, including the fair market value of the personal property;

(E) the date, time, and method of payment; and

(F) the signature or identification code of the preparer;

(8) a requirement that the data in paragraphs (b)(7)(A) through (F) not be susceptible to change or removal by any personnel after preparation of a jackpot payout document;

(9) a requirement that whenever the winning patron is paid directly by the gaming cashier, the following procedures be followed:

(A) A jackpot payout document shall be generated by the EGM computer system in accordance with paragraph (b)(7);

(B) if a one-part request for jackpot payout document is involved and a security department member or verifying EGM department attendant other than the preparer has not signed the one-part request for jackpot payout document, the gaming cashier shall summon a security department member or EGM department employee other than the preparer of the request for jackpot payout document and provide that employee with the request for jackpot payout document. The security department member or verifying EGM department employee shall proceed to the EGM identified on the request for jackpot payout document and sign the request for jackpot payout document, attesting that the winning combination of characters on the EGM and the amount to be paid match those that appear on the request for jackpot payout document. If the jackpot amount is $25,000 or more, an EGM department shift manager shall also sign the request for jackpot payout document, attesting that the winning combination of characters on the EGM and the amount to be paid match those that appear on the request for jackpot payout document. The request for jackpot payout document shall be returned to the gaming cashier before the end of that gaming day;

(C) after the gaming cashier determines that the required signatures verifying the winning combination of characters on the EGM and the amount to be paid have been placed on the one-part request for jackpot payout document, if the amount being paid is less than $10,000, the gaming cashier shall pay the winning patron in the presence of the preparer of the request for jackpot payout document. If the amount being paid is $10,000 or more but less than $25,000, the gaming cashier shall pay the winning patron in the presence of the EGM department attendant supervisor who prepared the request for jackpot payout document. If the amount being paid by the cashier is $25,000 or more, the gaming cashier shall pay the winning patron in the presence of the EGM department supervisor and the EGM department shift manager who prepared the request for jackpot payout document in accordance with this subsection. The personnel required by this subsection to witness the payment shall sign the duplicate jackpot payout document, attesting to the accuracy of the information on the duplicate jackpot payout document and the disbursement of the payment to the patron;

(D) if a receipt document under paragraph (b)(5) was issued, the duplicate receipt document shall be signed by the patron in the presence of the gaming cashier. The gaming cashier shall compare the signature on the duplicate receipt document to that on the original receipt document and make the payment only if the signatures are in agreement;

(E) once the required signatures are obtained and payment has been made, the gaming cashier shall give the duplicate jackpot payout document to a security department member or EGM department employee, who shall deposit the document into a locked accounting box; and

(F) the gaming cashier shall attach the request for jackpot payout document, if applicable, and the original and duplicate receipt documents, if applicable, to the original copy of the jackpot payout document. All documents shall be forwarded by the end of the gaming day to the main bank for reimbursement;

(10) a requirement that the facility manager's accounting department perform, at the conclusion of each gaming day, income control reconciliation procedures over the issuance of jackpot payouts, including adequate comparisons to gaming ticket system data; and

(11) details for processing system overrides or adjustments.

(c) Nothing in this regulation shall preclude the use of an EGM computer system, approved by the commission, that electronically records the information required on a request for jackpot payout document or facilitates through the EGM computer system the verifications and comparisons as to a winning combination of characters on the EGM or an amount to be paid required under this regulation.

(d) Nothing in this regulation shall preclude a facility manager from implementing procedures by which a gaming cashier, in the presence of a member of the security department, utilizes an imprest inventory of funds secured in a pouch or wallet to pay a jackpot of less than $1,200 that is not totally and automatically paid directly from an EGM.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-22 Annuity jackpots

(a) Each facility manager's internal control system shall include internal controls for the payment of an annuity jackpot. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. The internal controls developed and implemented by the facility manager shall include the following:

(1) Procedures to be followed by a winning patron to exercise a cash payout option;

(2) procedures with regard to the administration of the trust agreement established to ensure the future cash payments due under the annuity jackpot award; and

(3) a requirement that the trustee for the trust fund established by the trust agreement be a facility manager or, for a wide-area progressive system offering an annuity jackpot, the EGM system operator for that wide-area progressive system.

(b) Any facility manager offering an annuity jackpot payable over 10 years or more may offer a winning patron the option to be paid in a single cash payout, in lieu of the annuity jackpot, in an amount that is equal to the present value of the face amount of the jackpot payout as calculated in subsection (c).

(c) Any facility manager may offer a cash payment option. The present value of the cash payout option on an annuity shall be determined by applying a discount rate to each of the future annuity jackpot payments, taking into consideration the number of years until each jackpot payment would otherwise have been received and adding to that amount the amount of the first cash payment that would otherwise have been received. For the purposes of this subsection, the discount rate shall equal the United States treasury constant maturity rate for 20-year United States government securities for the week ending before the date of the jackpot, as identified in the federal reserve statistical release form H.15 for selected interest rates, plus 0.5%.

(d) A facility manager shall not offer an annuity jackpot payout unless both of the following conditions are met:

(1) The terms and conditions of the annuity jackpot, including the effect on the calculation of the theoretical payout percentage, meet the requirements of the act, this article, and the technical standards approved by the commission under article 110.

(2) The commission has approved the specific offer of the annuity jackpot.

(e) Each cash payout made in connection with an annuity jackpot shall be made in accordance with K.A.R. 112-104-21.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-23 Merchandise jackpots

(a) Each facility manager's internal control system shall include internal controls for the payment of a merchandise jackpot. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1.

(b) A facility manager shall not offer a merchandise jackpot payout unless both of the following conditions are met:

(1) The terms and conditions of the merchandise jackpot, including the effect on the calculation of the theoretical payout percentage, meet the requirements of the act, this article, and the technical standards approved by the commission under article 110.

(2) The commission has approved the specific offer of the merchandise jackpot. To obtain commission approval, a facility manager shall file an amendment waiver and request form containing all of the details related to the merchandise jackpot payout.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-24 Internal audit standards

(a) Each facility manager's internal control system shall include internal controls for internal audit standards. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. The facility manager shall maintain a separate internal audit department whose primary function is to perform internal audit work that shall be independent with respect to the departments subject to audit. The facility manager shall ensure that the standards, conventions, and rules governing audits in the United States are followed for all audits. The internal audit department shall be responsible for the following:

(1) The review and appraisal of the adherence of the facility manager's systems of internal control to commission regulations and technical standards;

(2) performing tests to ensure compliance with internal control procedures;

(3) the reporting to the facility manager's management and the commission of instances of noncompliance with the internal control system;

(4) the reporting to the facility manager's management and the commission of any weaknesses in the internal control system;

(5) the recommendation of procedures to eliminate any weaknesses in the internal control system; and

(6) performing tests to ensure compliance with K.A.R. 112-104-6.

(b) The auditing department shall prepare documents to evidence all internal audit work performed as the work relates to the requirements in this regulation, including all instances of noncompliance with internal control procedures:

(1) The internal audit department shall operate with audit programs that address the requirements of this regulation.

(2) The internal audit department shall accurately document the work performed, the conclusions reached, and the resolution of all exceptions.

(c) All audit reports shall be prepared, maintained, and provided to the commission on a schedule approved by the executive director.

(1) Internal audit personnel shall perform audits of all major gaming areas of the facility manager. The following shall be reviewed at least quarterly:

(A) Wagering, including calculation and payout procedures;

(B) net EGM income;

(i) Jackpot payout and EGM or electronic device fill procedures;

(ii) EGM or electronic device drop counts, bill validator counts, and subsequent transfer of funds;

(iii) unannounced testing of count room currency counters or currency interface;

(iv) EGM drop cabinet access;

(v) tracing of source documents to summarized documentation and accounting records;

(vi) reconciliation to restricted copies;

(vii) compliance with erasable programmable read-only memory (EPROM) duplication procedures; and

(viii) compliance with internal control procedures for EGMs or electronic devices that accept currency and issue cash-out tickets and for EGMs that do not accept currency and do not return currency;

(D) cage procedures, including the reconciliation of trial balances to physical instruments on a sample basis. Cage accountability shall be reconciled to the general ledger;

(E) information technology standards specified in K.A.R. 112-104-25;

(F) complimentaries, including procedures whereby complimentaries are issued, authorized, and redeemed;

(G) control of keys that require accountability in a log beginning with the authorization to order, number received, establishment of the beginning key inventory, and control of issuance of keys to the operating departments;

(H) purchasing functions and contractual agreements to determine that the purchases and agreements are not in excess of their fair market value; and

(I) any other internal audits as required by the executive director, audit committee of the board of directors, or other entity designated by the executive director.

(2) The audit reports shall include the following information:

(A) Audit objectives;

(B) audit procedures and scope;

(D) recommendations, if applicable; and

(E) management's response.

(3) In addition to the observation and examinations performed under paragraph (c)(1), follow-up observations and examinations shall be performed to verify that corrective action has been taken regarding all instances of noncompliance cited by internal audit, the independent accountant, and the commission. The verification shall be performed within three months of the issuance of the audit report.

(4) Whenever possible, internal audit observations shall be performed on an unannounced basis.

(5) All exceptions disclosed during audits shall be investigated and resolved, with the results being documented and retained for seven years.

(d) All internal audit findings shall be reported to management, who shall be required to respond to internal audit findings stating corrective measures to be taken to avoid recurrence of the audit exception. The management responses shall be included in the internal audit reports that are delivered to the facility manager's management, the commission, audit committee of the board of directors, or other entity designated by the executive director.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-25 Information technology standards

(a) Each facility manager's internal control system shall include internal controls for information technology standards. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. The management information systems (MIS) department shall be responsible for the quality, reliability, and accuracy of all EGM computer systems used by the facility manager regardless of whether data, software, or systems are located within or outside the gaming facility. The MIS department shall be responsible also for the security and physical integrity of, and the accountability and maintenance of, the following:

(1) Access codes and other security controls used to ensure limited access to computer software and the systemwide reliability of data;

(2) computer tapes, disks, or other electronic storage media containing data relevant to the facility manager's operations;

(3) computer hardware, communications equipment, and software used in the conduct of the facility manager's operations; and

(4) the computerized EGM monitoring system utilized by the facility manager, which shall ensure that the following conditions are met:

(A) EGMs located on the gaming floor are connected to the facility manager's computerized EGM monitoring system and to the Kansas lottery's central computer system in accordance with the act;

(B) the security features of the computerized EGM monitoring system prohibit the deletion, creation, or modification of any data unless a permanent record is created that sets forth the original information, modifications to the original information, the identity of the employee making the modification, and, if applicable, the identity of each employee authorizing the modification;

(C) computerized jackpot payout systems utilized by the facility managers are configured to require that any modification of $100 or more to the original amount recorded on a computerized jackpot payout or system override is authorized by two cage department employees, one of whom is in a position of greater authority than the individual preparing the jackpot payout; and

(D) procedures and controls are in place that define and limit interaction between the EGM department, the cage department, and the accounting department and the computerized EGM monitoring system, including access to system menus, the establishment of EGM profile parameters, and the ability of each department to access, delete, create, or modify information contained in the EGM monitoring system.

(b) The internal controls specified in subsection (a) shall include general controls for gaming hardware and software. These general controls shall include all of the following requirements:

(1) The facility manager's management shall ensure that physical and logical security measures are implemented, maintained, and adhered to by personnel to prevent unauthorized access that could cause errors or compromise data or processing integrity.

(2) The facility manager's management shall ensure that all new gaming vendor hardware and software agreements and contracts contain language requiring the vendor to adhere to internal control standards applicable to the goods and services the vendor is providing.

(3) Physical security measures shall exist over computers, computer terminals, data lines, and storage media to prevent unauthorized access and loss of integrity of data and processing.

(4) The requirements in paragraph (b)(1) shall apply to each applicable department within the gaming facility. Only authorized personnel shall have access to the following:

(A) Systems software and application programs;

(B) computer data;

(D) the computer system; and

(E) information transmissions.

(1) The method for detecting authorized and unauthorized software changes;

(2) the generation of daily reports from all computer systems, which shall document any software changes;

(3) procedures for the control and installation of software by the MIS department;

(4) the creation of a software control log by the MIS department evidencing all authorized changes to software; and

(5) the review and comparison of the report and log required in paragraphs (c)(2) and (4) by the internal audit department for any deviations and investigation.

(d) The main computers for each gaming application shall be located in a secured area with access restricted to authorized persons, including vendors. Non-MIS department personnel shall be precluded from having unrestricted access to the secured computer areas.

(e) Access to computer operations shall be restricted to authorized personnel.

(f) Incompatible functions shall be adequately segregated and monitored to prevent lapses in general information technology procedures that could allow errors to go undetected or fraud to be concealed.

(g) The computer systems, including application software, shall be secured through the use of passwords or other means approved by the commission, if applicable. MIS department personnel shall assign and control the access to system functions.

(h) Passwords shall be controlled through both of the following requirements:

(1) Each user shall have that person's own individual password.

(2) Each password shall be changed at least quarterly with each change documented.

(i) MIS department personnel shall have backup and recovery procedures in place that include the following:

(1) Daily, monthly, and annual backup of data files;

(2) backup of all programs;

(3) secured off-site storage of all backup data files and programs or other adequate protection access to which shall be restricted to authorized MIS department personnel; and

(4) recovery procedures, which shall be tested on a sample basis at least semi-annually with documentation of results.

(j) Information technology system documentation shall be maintained, including descriptions of hardware and software, including current version numbers of approved software and licensee manuals.

(k) MIS department personnel shall meet the following requirements:

(1) Be precluded from unauthorized access to the following:

(A) Computers and terminals located in gaming areas;

(B) source documents; and

(2) be restricted from the following:

(A) Having unauthorized access to cash or other liquid assets; and

(B) initiating general or subsidiary ledger entries.

(l) All program changes for in-house developed systems shall be documented as follows:

(1) Requests for new programs or program changes shall be reviewed by the MIS department supervisor. The approval to begin work on the program shall be documented.

(2) A written plan of implementation for new and modified programs shall be maintained and shall include the following:

(A) The date the program is to be placed into service;

(B) the nature of the change;

(C) a description of procedures required in order to bring the new or modified program into service, including the conversion or input of data and installation procedures; and

(D) an indication of who is to perform the procedures specified in paragraph (l)(2)(C).

(3) The testing of new and modified programs shall be performed and documented before implementation.

(4) A record of the final program or program changes, including evidence of user acceptance, the date in service, the name of the programmer, and the reason for changes, shall be documented and maintained.

(m) The facility manager shall maintain computer security logs. If computer security logs are generated by the system, the logs shall be reviewed by MIS department personnel for evidence of the following:

(1) Multiple attempts to log on. Alternatively, the system shall deny user access after three attempts to log on;

(2) unauthorized changes to live data files; and

(3) any other irregular transactions.

(n) The following requirements shall apply to accessing computer systems through remote dial-up or other methods as authorized by the commission:

(1) If remote dial-up to any associated equipment is allowed for software support, MIS department personnel shall maintain an access log that includes the following:

(A) The name of employee authorizing modem access;

(B) the name of authorized programmer or vendor representative;

(D) a description of work performed; and

(E) the date, time, and duration of access.

(2) The facility manager shall be required by the commission to maintain evidence of all changes being made during remote access sessions.

(o) Any facility manager may scan or directly store documents to an unalterable storage medium if all of the following requirements are met:

(1) The storage medium shall contain the exact image of the original document.

(2) All documents stored on the storage medium shall be maintained with a detailed index listing the department and date. This index shall be available upon request by the executive director.

(3) Upon request and adequate notice by the commission, hardware, including the terminal and printer, shall be made available in order to perform auditing procedures.

(4) Controls shall exist to ensure the accurate reproduction of records, including the printing of stored documents used for auditing purposes.

(5) The storage medium shall be retained for at least seven years.

(p) If a facility manager employs computer applications to replace or to supplement manual procedures, the computer application procedures implemented shall provide the same level of documentation or procedures, or both, that manual procedures approved by the commission provide.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-26 Gaming facility

(a) Each facility manager's internal control system shall include internal controls for the gaming facility requirements contained within this regulation. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1. Each gaming facility shall be equipped with a surveillance system configured and approved in accordance with article 106.

(b) Restricted areas within the gaming facility shall be designated for the repair and storage of EGMs. The areas approved and utilized within the gaming facility for EGM repair shall be monitored by the surveillance system.

(c) Each emergency exit from the gaming floor shall be equipped with an audible alarm system that produces a loud, distinguishable warning sound, discernable in the vicinity of the exit, whenever the emergency door is opened. The alarm system shall be designed to require deactivation and reset by means of a key. The key shall be maintained by the facility manager's security department.

(d) Each facility manager shall, in accordance with the act, provide for and maintain facilities for use by the commission and the Kansas lottery for the purpose of carrying out each commission's responsibilities. The facilities shall be located in the same building as the gaming floor and shall include adequate office space, equipment, partitions, and supplies to meet the continuing needs of the commission and the Kansas lottery at the facility, including the following:

(1) A surveillance system monitoring room that meets all of the requirements of K.A.R. 112-106-1(o);

(2) an area for detention that meets all of the requirements of K.A.R. 112-105-6;

(3) a fingerprinting and photographing facility for use by the commission, located in conformance with and outfitted in compliance with specifications established by the commission;

(4) adequate computer, telephone, and copying capability to meet the commission's and the Kansas lottery's continuing data processing and related needs;

(5) direct telephone connections between these facilities and the facility manager's surveillance monitoring room and its security department; and

(6) computer terminals facilitating read-only access to any EGM computer system used by the facility manager in its gaming operations.

(e) The keys or alternative locking mechanisms securing access to the on-site facilities shall be under the exclusive custody and control of the commission or the Kansas lottery.

(f) Each facility manager shall provide additional accommodations within the gaming facility upon receipt of a written request from the executive director or the Kansas lottery to accommodate periodic audit, compliance, or investigative reviews at the gaming facility.

(g) Each facility manager shall provide adequate parking spaces adjacent or proximate to the on-site facilities, clearly marked for the commission and the Kansas lottery use only.

(h) Each facility manager shall equip the facility with communication systems necessary to ensure communication between the gaming facility and the commission, the Kansas lottery, and any applicable local law enforcement agency or emergency first responders.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-27 Acceptance of tips or gratuities from patrons

Notwithstanding the requirements of K.A.R. 112-107-18, a level I employee or gaming employee who serves in a supervisory position shall be prohibited from soliciting or accepting a tip or gratuity from a patron of the facility manager. No level II or level III employee may solicit a tip or gratuity from a patron of the facility manager. A facility manager shall not permit any practices prohibited by this regulation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-28 Automated teller machines

Automated teller machines may be placed at any location within the gaming facility, if the location is approved by the executive director.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-29 Waiver of requirements

(a) One or more of the requirements of this article applicable to accounting and internal controls may be waived by the commission on its own initiative, upon the commission's determination that the compensating control or procedure, as documented in a facility manager's internal control system, meets the operational integrity requirements of the act and this article.

(b) Any facility manager may submit a written request to the commission for a waiver for one or more of the requirements in this article. The request shall be filed on an amendment waiver and request form and shall include supporting documentation demonstrating how the proposed accounting and internal controls for which the waiver has been requested would meet the operational integrity requirements of the act and this article.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-30 Gaming day

(a) The beginning and ending times of the gaming day shall be determined by the Kansas lottery and shall be uniform for all facility managers for the purposes of determining net EGM income.

(b) Before beginning gaming operations, each facility manager shall submit to the commission in writing its hours of gaming. The gaming times shall correspond to the portion of the gaming day the facility manager will be open to the public for the purpose of gaming activities. A facility manager shall not commence gaming until its hours of gaming are approved by the commission.

(c) Each facility manager shall provide written notice of any planned change in the facility manager's hours of gaming to the commission at least 72 hours before the change. The facility manager shall notify the commission of a change in the facility manager's hours due to an emergency at that time.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-31 Signature

An employee signature may be in either of the following formats:

(a) The employee's first initial, last name, and employee credential number, which shall be written by the employee, immediately adjacent to or above the clearly printed or preprinted title of the employee; and

(b) the employee's unique identification number or other computer identification code issued to the employee by the facility manager, if the document to be signed is authorized by the commission to be generated by an EGM computer system and this method of signature is approved or required by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-32 Unclaimed winnings

(a) Each facility manager's internal control system shall include internal controls for unclaimed winnings. The internal controls shall be submitted to and approved by the commission according to K.A.R. 112-104-1.

(b) All winnings, whether property or cash, that are due and payable to a known patron and remain unclaimed shall be held in safekeeping for the benefit of the known patron.

(c)(1) If winnings have not been provided to a known patron, the facility manager shall prepare a winner receipt form. The form shall be a two-part, serially prenumbered form and shall contain the following:

(A) The name and address of the patron;

(B) a unique identifying number obtained from a United States government-issued photo identification card or a government-issued passport;

(D) the LFG upon which the win occurred, including the following:

(i) The LFG asset number;

(ii) the location; and

(iii) the winning combination.

(2) The two-part receipt form shall be distributed as follows:

(A) The preparer of the original shall send the original to the gaming cashier responsible for maintaining safekeeping balances.

(B) The duplicate shall be presented to the winning patron, who shall be required to present the duplicate receipt before being paid the winning amount due.

(d) Each facility manager shall be required to use its best efforts to deliver the winnings to the patron. The facility manager shall maintain documentation of all efforts to provide the patron with the unclaimed winnings. Documentation shall consist of letters of correspondence or notation of telephone calls or other means of communication used in the attempt to provide the winnings to the patron.

(e) Each winning patron shall collect that patron's winnings by presenting to a gaming cashier the duplicate copy of the winner receipt form signed in the presence of the gaming cashier. The gaming cashier shall obtain the original winner receipt form from safekeeping and compare the signature on the original to the signature on the duplicate receipt form. The gaming cashier shall sign the original winner receipt form, attesting that the signatures on the original and duplicate receipt forms agree, and then distribute the winnings to the patron.

(f) The gaming cashier shall retain the original receipt form as evidence of the disbursement from the gaming cashier's funds. The duplicate receipt form shall be placed in a box for distribution to accounting by security or someone who did not participate in the transaction.

(g) Undistributed winnings of any known patron held in safekeeping for 12 months or longer shall revert to the Kansas state treasurer's office in accordance with unclaimed property laws after reasonable efforts to distribute the winnings to the known patron, as determined from review of the documentation maintained.

(h)(1) If the identity of any patron who wins more than $1,200 is not known, the facility manager shall be required to make a good faith effort to learn the identity of the patron. If the identity of the patron is determined, the facility manager shall comply with subsections (b) through (g).

(2) If a patron's identity cannot be determined after 180 days from the time the patron's winnings were payable, the winnings shall be distributed according to the formula contained in the gaming facility's management contract.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-104-33 Disputes

(a) If a dispute arises with a patron concerning the payment of alleged winnings, the facility manager shall provide the patron with a patron complaint form and instructions for submitting a patron complaint.

(b) If a facility manager refuses to pay the winnings claimed by a patron and the patron and the facility manager remain unable to resolve the dispute after seven days, the facility manager shall, on the next day, notify the commission in writing of the dispute in a manner and form the commission prescribes. The notice shall identify the parties to the dispute and shall state the known relevant facts regarding the dispute. A determination regarding the dispute may be made by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-104-34 Physical key controls; automated key controls

(a) "Sensitive keys" shall mean those unlocking devices designated by the Kansas lottery, a facility manager, or the commission as important to preserving the security of the facility manager's business. Each facility manager shall control the storage, duplication, custody, issuance, and return of sensitive keys. The sensitive key box may be stored in each facility manager's accounting department. At a minimum, the following keys shall be deemed sensitive keys:

(1) The EGM belly glass key;

(2) the tip box key, sometimes called a "toke box" key; and

(3) the accounting or audit box key.

(b) Sensitive keys may be further designated as "critical." Critical keys shall mean those unlocking devices that shall be maintained in a dual-lock box. If a critical key is lost or becomes missing, all locks that the key fits shall be changed within 24 hours. At a minimum, the following keys shall be deemed critical keys:

(1) The EGM central processing unit key;

(2) the EGM main door key;

(3) the EGM drop door key;

(4) the bill validator door and box release key;

(5) the bill validator contents key;

(6) the jackpot or EGM reimpressment kiosk keys;

(7) the self-redemption or bill breaker kiosk keys;

(8) the change cart key;

(9) the key for each table game's drop box;

(10) the key for the table game drop box release;

(11) the keys for the bill validator and table drop storage cart;

(12) the key for each table game's chip bank cover;

(13) the key for each table game's chip tray;

(14) the key for each progressive game's controller;

(15) the key for each progressive game's reset switch;

(16) the keys for the reserve chip storage;

(17) the keys for the card and dice storage area;

(18) the keys for the secondary chip storage area;

(19) the access door key to any cage, EGM bank, or redemption booth;

(20) the window key to any cage, EGM bank, or redemption booth;

(21) the keys to the vault;

(22) the keys to the soft count room; and

(23) any key not listed in this subsection that controls access to any cash or chip storage area.

(c) If a facility manager chooses to use rings to maintain its keys, each key on the ring shall be individually identified on a key access list.

(d) Each facility manager's internal control system shall include the following information:

(1) The location of each sensitive key and critical key box;

(2) each employee or contract job title that is authorized to access the sensitive key or critical key boxes;

(3) the procedure for issuing and controlling the keys for the sensitive key or critical key boxes;

(4) the sensitive key or critical key names, location, and persons authorized to sign out each sensitive key or critical key;

(5) the location and custodian of each duplicate sensitive key; and

(6) continuous surveillance coverage of each key box.

(e) If a facility manager chooses to use an automated key control system, the facility manager's internal control system shall include the following information:

(1) A description of the automated system and its configuration, including how access is controlled;

(2) the system's ability to provide scheduled and on-demand reports for a complete audit trail of all access, including the following:

(A) The identity of the key box;

(B) the identity of the employee;

(D) the date and time a key was removed;

(E) the date and time a key was returned;

(F) any unauthorized attempts to access the key box; and

(G) all entries, changes, or deletions in the system and the name of the employee performing the entry, change, or deletion;

(3) the employee position that is in charge of any automated key control system;

(4) each employee position that is authorized to enter, modify, and delete any keys;

(5) each employee position that is authorized to access the system;

(6) details about the alarms being used to signal for the following events:

(A) Overdue keys;

(B) open key box doors;

(D) any other unusual activities;

(7) any system override procedures; and

(8) a procedure for the notification of a commission security agent on duty if a partial or complete system failure occurs.

(f) Each individual authorized to access keys in the automated system shall have the authorization noted in the employee's personnel file.

(g) Each change to the list of authorized employees that have access to the automated keys shall be updated within 72 hours of the change.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Oct. 16, 2009.)

Kan. Admin. Regs. § 112-104-35 Key control procedures

(a) Each facility manager's internal controls for keys shall include a key box custodian. Each custodian of a sensitive key box or critical key box shall be issued a sensitive key or critical key access list that notes the authorized employee positions that may access each sensitive key or critical key.

(b) If two keys are required to access a controlled area, then the keys shall be issued to different employees and each key shall be individually signed out of the key access list.

(c) Each key that requires issuance under security or management escort shall be identified as such in the sensitive key or critical key access list.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Oct. 16, 2009.)

Kan. Admin. Regs. § 112-104-36 Key access list

(a) Each facility manager shall maintain a current and accurate key access list for each sensitive key or critical key. Each facility manager shall provide a copy of the key access list to the commission's director of security. The key access list shall include the following details:

(1) The name of the key;

(2) the storage location of the key;

(3) the name of the custodian of the key;

(4) the quantity of the keys;

(5) the title of each employee authorized to remove the key; and

(6) any escort requirements and specific limitations to key access.

(b) The custodian of duplicate keys shall maintain a key access list documenting the following information:

(1) The name of the keys;

(2) the identification number assigned to the key;

(3) the employee positions that are authorized to remove a key; and

(4) any escort requirements for each key's use.

(c) The internal control system for keys shall indicate which employees have the authority to make changes, deletions, or additions to the sensitive key and critical key access lists.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Oct. 16, 2009.)

Kan. Admin. Regs. § 112-104-37 Key log

(a) Any sensitive key or critical key may be issued only after completion of a sensitive key or critical key log. The key log shall include the following information:

(1) The date the key was issued or returned;

(2) the key number;

(3) the individual or automated key box issuing the key;

(4) the individual receiving the key;

(5) the time the key was signed out or removed;

(6) the time the key was signed in;

(7) the individual returning the key; and

(8) the individual or automated key box receiving the returned key.

(b) Each individual who signs out a sensitive key or a critical key shall maintain custody of the key until the key is returned to the sensitive key or the critical key box. Keys may be passed only to count team leads and distributed to other count team members during bill validator drops and EGM drops. In the event of an emergency, illness, or injury rendering the individual incapable of returning the key, a supervisor may return the key with a notation on the sensitive key log.

(c) Upon completion, sensitive key or critical key logs shall be forwarded at intervals specified by the facility manager to the accounting or internal audit department, where the logs shall be reviewed and retained. If any discrepancies are found in the key logs, the security or internal auditing department shall begin an investigation and document the discrepancy.

(d) Each facility manager shall maintain a duplicate key inventory log documenting the current issuance, receipt, and inventory of all duplicate sensitive keys. The duplicate key inventory log shall include the following information:

(1) The date and time of the key issuance, receipt, or inventory;

(2) each key name;

(3) each key number;

(4) the number of keys in beginning inventory;

(5) the number of keys added or removed;

(6) the number of keys in ending inventory;

(7) the reason for adding or removing keys; and

(8) the signatures of the two individuals accessing the box.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Oct. 16, 2009.)

Kan. Admin. Regs. § 112-104-38 Broken, lost, or missing keys

(a) The internal control system shall include procedures for the following if a critical key or sensitive key is broken:

(1) The name of the employee required to receive and replace the broken key;

(2) disposition of the broken key; and

(3) notification to a commission agent on duty.

(b) An inventory of duplicate keys shall be maintained in such quantity that there is always at least one duplicate key in inventory for each critical key or sensitive key.

(c) The internal control system shall include procedures to be followed when a sensitive key or critical key is lost, missing, or taken from the premises.

(d) The internal control system shall include procedures for investigating and reporting missing critical keys or sensitive keys. The commission agent on duty shall be notified upon discovery that any sensitive keys or critical keys are missing.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Oct. 16, 2009.)

Kan. Admin. Regs. § 112-104-39 Corrections to forms

(a) Monetary corrections to a figure originally recorded on a form may be made only in ink by performing the following:

(1) Crossing out the error;

(2) entering the correct figure; and

(3) obtaining the initials of the employee making the change and the initials of the employee's supervisor.

(b) Each nonmonetary correction to a form shall be initialed by the employee making the correction.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Oct. 16, 2009.)

Kan. Admin. Regs. § 112-104-40 Manual form dispensers

(a) Each facility manager's accounting or security department shall be responsible for loading and unloading any locked manual form dispenser. Each form unloaded from the dispenser shall be delivered directly to the accounting department.

(b) If the manual form dispenser jams, an employee from the accounting department or security department shall clear the jam and relock the manual form dispenser.

(c) If a facility manager uses a manual form dispenser, then the dispenser shall be configured to dispense a single form at a time, with undispensed forms kept in continuous order.

(d) Manual form dispensers shall be used to control the following manual forms:

(1) Table fill slips;

(2) table credit slips; and

(3) EGM hand-paid jackpot payout forms.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Oct. 16, 2009.)

Kan. Admin. Regs. § 112-104-41 Forms; description

(a) Each facility manager shall maintain a supply of all forms listed in subsection (b) and any additional forms that the manager deems necessary to manage the facility. Each facility manager's internal control submission shall include an index of all forms that the manager may use.

(b) The following forms shall be a part of each facility manager's minimum internal controls:

(1) Inventory ledgers for the following:

(A) Date of receipt, count, or issuance of cards or dice;

(B) quantity of cards and dice received or issued; and

(2) a log for card or dice pickup and either cancellation or destruction, including the following details:

(A) The date of the form's preparation;

(B) the date and time of cancellation or destruction of the cards or dice;

(D) all required signatures;

(3) a card or dice storage log for the pit area, including the following details:

(A) The date of each entry on the log;

(B) the quantity and description of all cards and dice placed in the compartment;

(D) the current number of each design and color combination of cards and dice; and

(E) each daily verification of the current inventory;

(4) a cashier's cage or vault count sheet, including the following details:

(A) The date and time of completion of the count sheet;

(B) the location of the cashier's cage;

(D) the actual count total or closing inventory;

(E) the accountability total;

(F) the amount of overages or shortages; and

(G) each signature required by these regulations for the count sheet;

(5) a cashier's cage multiple-transaction log, including the following details:

(A) The location of the cashier's cage or bank where the cash transactions occurred;

(B) the date of the multiple-transaction log;

(C) the full name of any patron making multiple transactions, if provided by the patron, or a description to help identify the patron if the patron refuses to provide a name. Each description shall include weight, height, hair color, and any other observed distinguishing features;

(D) the total cash transaction amount; and

(E) the transaction type. The transaction types shall be the following:

(i) Cash-outs, including cashing personal checks and travelers checks;

(ii) chip redemptions. The gaming location shall be included in the comments column;

(iii) deposits for safekeeping;

(iv) deposits out when withdrawing a safekeeping deposit; and

(v) any other transactions not listed in paragraphs (b)(5)(E)(i) through (iv), including each cash transaction payment of EGM jackpots and each exchange of currency for currency;

(F) the time of the transaction;

(G) the signature and commission license number of the employee logging the transaction;

(H) any observed information that would be useful in identifying the patron or explaining the transaction;

(I) the supervisor's signature. The supervisor's signature shall acknowledge the following items:

(i) That the supervisor has reviewed the log and, to the best of the supervisor's knowledge, all cash transactions of $500 or more have been properly recorded; and

(ii) that all currency transaction reports have been properly completed for all single cash transactions and series of multiple cash transactions in excess of $10,000; and

(J) the page number and total pages of the log for the gaming day;

(6) a chip inventory ledger, including the following details:

(A) The date of receipt, issuance, and destruction;

(B) the number of each denomination of chips received, issued, or destroyed;

(C) the dollar amount of each denomination of value chips, as defined in K.A.R. 112-108-1, received, issued, or destroyed;

(D) the number and description of non-value chips received, issued, or destroyed;

(E) any required signatures; and

(F) the identification of any primary chips held in reserve with the word "reserve";

(7) a safekeeping deposit or withdrawal form, including the following details:

(A) Preprinted numbering on all copies;

(B) the name and signature of the patron making the deposit;

(D) the amount of each deposit or withdrawal;

(E) the type of deposit or withdrawal;

(F) the reason for the deposit or withdrawal; and

(G) any required signatures;

(8) a duplicate key inventory log, including the following details:

(A) The date and time of the log's completion;

(B) the key name;

(D) the number of keys in beginning inventory;

(E) the number of keys added or removed;

(F) the number of keys in ending inventory;

(G) the reason for adding or removing keys; and

(H) the required signatures of the two individuals accessing the box;

(9) a tips and gratuity deposit form, including the following details:

(A) The date of completion of the form;

(B) the number of chips listed by denomination;

(D) all required signatures;

(10) a temporary bank voucher, including the following details:

(A) The date and time of the voucher's completion;

(B) the location of the temporary bank;

(D) the signature from the main bank cashier who is issuing the funds;

(E) the signature of the individual receiving funds;

(F) the signature of the individual returning funds; and

(G) the signature of the main bank cashier receiving returned funds;

(11) a duplication of any critical program storage media log. "Critical program storage media" and "CPSM" shall mean any media storage device containing data, files, or programs, as determined by the commission, that are capable of affecting the integrity of gaming. The duplicate CPSM log shall include the following details:

(A) The date of completion of the form;

(B) the manufacturer of the chip;

(D) any personnel involved; and

(E) the disposition of any permanently removed CPSM;

(12) an EGM drop compartment sweeps log, including the following details:

(A) Each EGM number and location;

(B) the date and time of the drop;

(D) the signature of the supervisor overseeing the drop;

(13) an EGM drop or win report, including the following details:

(A) The gaming date;

(B) the amount wrapped by denomination and totaled;

(D) the percentage variance difference by denomination;

(E) the total jackpot payouts;

(F) the total drop by denomination;

(G) the total drop of all denominations;

(H) the net win or loss by denomination and total; and

(I) all required signatures;

(14) an EGM entry access log, including the following details:

(A) The EGM number and location;

(B) the date and time of the EGM access;

(D) all required signatures;

(15) an EGM hand-paid jackpot form, including the following details:

(A) The date and time of completion of the form;

(B) an EGM number that required hand payment and the location and denomination of the payment;

(D) the reel symbols on each EGM jackpot requiring hand payment; and

(E) all required signatures;

(16) an EGM sweeps log, including the following details:

(A) Each EGM number and location;

(B) the date and time of the EGM sweep;

(D) the signature of the supervisor overseeing the sweep;

(17) an even exchange slip, including the following details:

(A) The date, time, and location of the exchange;

(B) the amounts to be exchanged by type;

(D) all required signatures; and

(E) the total amount exchanged;

(18) each cage or bank variance slip, including the following details:

(A) The date and time of completion of the slip;

(B) the location of the bank;

(D) all required signatures;

(19) ingress or egress logs for the count rooms, surveillance rooms, and cages, including the following details:

(A) The date and time of each ingress or egress;

(B) the printed name of each person entering or leaving;

(D) the reason for entry; and

(E) all required signatures;

(20) a main bank or vault accountability log, including the following details:

(A) The date and shift that the accounting was made;

(B) the opening balance;

(D) detail of the total main bank or vault inventory, including the inventory of the following:

(i) Currency;

(ii) coin;

(iii) chips;

(iv) safekeeping deposits; and

(v) any unclaimed property account;

(E) the total main bank or vault inventory;

(F) all overages and shortages;

(G) the closing balance; and

(H) all required signatures;

(21) a master gaming report, including the following details:

(A) The gaming date;

(B) the game and table number;

(D) the total fill slips;

(E) the total credit slips;

(F) the closing table inventory slip;

(G) the total drop per table;

(H) the overall totals by game;

(I) the total win or loss; and

(J) all required signatures;

(22) a RAM clearing slip, including the following details:

(A) The date and time that the RAM was cleared;

(B) an EGM number, the location, and the number of credits played before the RAM clearing occurred;

(D)the previous two reel positions or video displays;

(E)the actual meter readings of the internal hard and soft meters;

(F)the progressive jackpot display, if linked;

(G)the reason for RAM clear; and

(H)all required signatures;

(23) the returned check log, including the following details:

(A) The name and address of each person who presented the check that was subsequently returned;

(B) the date of the check;

(D) the check number;

(E) the date the facility manager received notification from a financial institution that the check was not accepted; and

(F) the dates and amounts of any payments received on the check after being returned by a financial institution;

(24) a sensitive key log, including the following:

(A) The date the key activity occurred;

(B) the key number;

(D) the name of the individual receiving the key;

(E) the time the key was signed out;

(F) the time the key was signed in;

(G) the individual returning the key; and

(H) the individual or automated key box receiving the returned key;

(25) a signature authorization list, including the following details for each employee listed:

(A) The employee's hire date;

(B) the employee's name;

(D) the position;

(E) the license number;

(F) the employee's initials as on a signature card; and

(G) the employee's signature, with at least the first initial and last name;

(26) a surveillance incident report, including the following details:

(A) The date and incident report number;

(B) the time and location of the incident;

(D) a detailed narrative of the incident;

(E) an identification of any videotape covering the incident;

(F) the final disposition of the incident; and

(G) all required signatures;

(27) a surveillance shift log, including the following details:

(A) The date that the entry is being made;

(B) the time of and duration, description, and location of all unusual occurrences observed;

(i) Equipment malfunctions related to other logged events or activities;

(ii) completed tapes;

(iii) still photograph requests; and

(D) required signatures;

(28) a surveillance tape release log, including the following details:

(A) The tape number;

(B) the date and time of release;

(D) a notation indicating whether the tape is a duplicate or original;

(E) an authorization notation;

(F) an "issued by and to" notation; and

(G) all required signatures;

(29) a surveillance tape retention log, including the following details:

(A) The date and time of the tape retention activity;

(B) the tape number being retained;

(D) all required signatures;

(30) a table credit slip, if applicable, including the following details:

(A) The date, pit, game or table number, and time of the table credit activity;

(B) the amount of each denomination of chips to be credited;

(D) all required signatures;

(31) a table fill slip, including the following details:

(A) The date, pit, game or table number, and time of the table fill activity;

(B) the amount of each denomination of chips to be distributed;

(D) all required signatures;

(32) a table inventory slip, including the following details:

(A) The date and shift;

(B) the game and table number;

(D) the total value of all denominations; and

(E) all required signatures;

(33) a table soft count slip or currency counter machine tape, including the following details:

(A) The date of the soft count or printing of the machine tape;

(B) the table game and number;

(D) the total of all denominations; and

(E) all required signatures;

(34) a wide-area progressive secondary jackpot slip, including the following details:

(A) The date and time of the wide-area progressive secondary jackpot;

(B) an EGM number, location, and denomination;

(D) the reel symbols and number of credits played;

(E) all required signatures; and

(F) the game type;

(35) a security incident report, including the following details:

(A) The incident report number;

(B) the date and time of the incident;

(D) the type of incident;

(E) the names and addresses of any witnesses and subjects involved in the incident, if known;

(F) a detailed narrative of the incident;

(G) the identification of videotape covering the incident, if applicable; and

(H) all required signatures;

(36) a security incident log, including the following details:

(A) The date of the daily log;

(B) the time of the incident;

(D) the name of the reporting security department employee and the employee's commission license number; and

(E) the summary of the incident;

(37) a visitor or vendor log, including the following details:

(A) The date of the visitor's or vendor's visit;

(B) the printed name;

(D) the time in and time out;

(E) the type of badge and the badge number;

(F) the reason for entry; and

(G) all required signatures;

(38) a key access list, including the following details:

(A) The name of the key;

(B) the location of the key;

(D) the quantity of the keys; and

(E) the job titles authorized to sign out the key and, if applicable, any escort requirements and specific limitations;

(39) a table games variance slip, including the following details:

(A) The gaming date;

(B) the game or table number;

(D) a description of the discrepancy found; and

(E) all required signatures;

(40) an inventory log of prenumbered forms, including the following details:

(A) The name of the prenumbered form;

(B) the date received or issued;

(D) the number sequence of forms received or issued;

(E) the name of each department to which forms were issued; and

(F) all required signatures and commission license numbers;

(41) a gift log, including the following details:

(A) The name of the gift recipient;

(B) the gift donor;

(D) the date the gift was received;

(42) a safekeeping log, including the following details:

(A) The date of deposit or withdrawal;

(B) the name of the patron;

(D) the type of deposit or withdrawal; and

(E) the total balance of all deposits;

(43) a card or dice discrepancy report, including the following details:

(A) The date and time of the noted discrepancy;

(B) the location;

(D) all required signatures;

(44) a remote access log, including the following details:

(A) The access start date and time;

(B) the access end date and time;

(D) the person making access;

(45) a personnel access list, including the following details:

(A) The employee name;

(B) the license number; and

(46) a redemption log, including the following details:

(A) The date the claim is being made;

(B) the dollar value of each item received by mail;

(D) the patron's name and address; and

(E) the signature of the employee performing the transaction;

(47) a currency cassette log, including the following details:

(A) The date of the currency cassette log;

(B) the time of the currency cassette log;

(D) the unique cassette number;

(E) the amount of cash in the cassette;

(F) the denomination of currency in the cassette; and

(G) the signature of the main bank cashier who prepared the cassette; and

(48) a table games jackpot slip, including the following details:

(A) The date of the table game jackpot;

(B) the time of the table game jackpot;

(D) the table game number;

(E) the type of jackpot;

(F) the player's name;

(G) the signature of the cashier;

(H) the signature of the dealer;

(I) the signature of the table games supervisor; and

(J) the signature of the security officer escorting the funds; and

(49) a meter-reading comparison report, including the following details:

(A) The date of the meter-reading comparison report;

(B) the asset number;

(D) the beginning and ending credits paid;

(E) the beginning and ending amount-to-drop, if applicable;

(F) the beginning and ending jackpots paid;

(G) the difference between the beginning and ending amount for all meters;

(H) the variance between the meters, if any; and

(I) the signature of an accounting department employee.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Oct. 16, 2009.)

Kan. Admin. Regs. § 112-104-42 Purchasing

(a) Each facility manager's internal control system shall include internal controls for purchasing.

(b) The internal controls shall indicate the amount of a single transaction or series of related transactions that an individual or a group of employees, owners, or directors may approve.

(1) Steps for initiating purchasing procedures;

(2) detailed procedures for the preparation and distribution of purchase orders, including the following:

(A) The amounts that can be authorized by various positions or levels of personnel;

(B) the sequence of required signatures and distribution of each part of the purchase order;

(C) a statement that purchase orders shall be issued only for a specific dollar amount. Each change to an issued purchase order shall be returned to the purchasing department to initiate an amended purchase order and obtain additional approvals, if necessary; and

(D) the maintenance of a purchase order log;

(3) detailed procedures for issuing and approving blanket purchase orders for purchases of goods or services, including the following:

(A) The competitive bid requirements for blanket purchase orders;

(B) a statement that each blanket purchase order shall include a maximum amount, the effective date, and the expiration date; and

(4) requirements for competitive bidding process, including the following:

(A) The number of bids required. A minimum of two bids shall be required;

(B) a statement that the purchasing department shall have the final responsibility for obtaining competitive bids. The originating departments may provide the amount budgeted for the purchase, cost limitations, and vendor recommendations;

(D) a statement that all competitive bids received shall be confidential and shall not be disclosed to any other vendors; and

(E) criteria for qualifying approved vendors of goods or services based on "fair market value," considering factors including quality, service, and price;

(5) detailed procedures and approval process for emergency purchases, including the following:

(A) A statement that emergency purchases shall occur after normal business hours, on weekends or holidays or, in case of immediate need of goods or services, in response to unusual occurrences during normal business hours;

(B) a statement that approvals may be verbal until purchasing documentation is prepared. Purchasing documentation shall be finalized within five days;

(D) the maintenance of an emergency purchase order log;

(6) detailed procedures to ensure that vendor files contain all company-required forms, documentation, and approvals;

(7) a prohibition against the purchase or lease of gaming equipment or supplies from other than a licensed supplier;

(8) detailed procedures for contracts, including the following:

(A) The management levels and the contract amounts that managers may negotiate and execute;

(B) a statement that all contracts shall be subject to the competitive bid process;

(D) the approval process for payments made against an executed contract; and

(E) the distribution and filing of executed contracts;

(9) if applicable, detailed procedures for the use of purchasing cards, including the following:

(A) Authorized position titles to be purchasing card holders and their spending limits, both single-transaction and monthly;

(B) items that may be purchased with the purchasing card;

(D) responsibilities of the holder of the purchasing card, including maintaining receipts and verifying monthly statements;

(E) responsibilities of the manager of the purchasing card holder, including approving monthly statements;

(F) disputing fraudulent or incorrect charges;

(G) payment to vendors for purchasing card charges; and

(H) the name of the department or position, as stated in the facility manager's internal controls, that is responsible for overseeing the purchasing card process;

(10) detailed procedures for the receipt of all goods received by an employee independent of the purchasing department as specified in the facility manager's internal controls, including the following:

(A) The verification process for the receipt of goods, including damaged goods, partial shipments, and overshipments;

(B) the distribution of all receiving documentation; and

(11) payment of vendor invoices, including procedures for the following:

(A) Each time the invoice amount disagrees with the purchase documentation;

(B) processing non-invoice payments; and

(d) Related party transactions, either oral or written, shall meet the minimum internal control standards in this regulation. In addition, the internal controls shall require the following:

(1) Each related party transaction or series of related party transactions reasonably anticipated to exceed $50,000 annually shall be subject to approval of the board of directors or owners of the company.

(2) An annual report of related party contracts or transactions shall be prepared and submitted to the board of directors or owners and the executive director, listing all related party transactions or group of like transactions occurring during the year. This report shall be due at the end of the third month following each calendar year, be formatted to group related party transactions by key person or entity, and contain the following information:

(A) Name of the related party;

(B) amount of the transaction or payments under the contract;

(D) nature of transaction; and

(E) determination of how the fair market value of the contract, goods, or services was ascertained.

(3) A quarterly report updating new or renewed related party transactions entered into during the quarter shall be prepared and submitted to the board of directors or owners and to the executive director. This report shall also indicate any terminations of related party transactions and shall be due at the end of the second month following the end of the quarter. The annual report shall meet the requirement for the fourth quarterly report.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2010 Supp. 74-8772; effective Dec. 9, 2011.)

Article 105 Security

Kan. Admin. Regs. § 112-105-1 Security department

(a) Each facility manager shall have a security department that is responsible for the security of the gaming facility. The facility manager, through its security department, shall do the following:

(1) Protect the people in the gaming facility;

(2) safeguard the assets within the gaming facility;

(3) protect the patrons, employees, and property from illegal activity;

(4) assist with the enforcement of all applicable laws and regulations;

(5) prevent persons who are under 21 years old from gambling or entering gaming areas;

(6) detain any individual if a commission enforcement agent so requests or if there is reason to believe that the individual is in violation of the law or gaming regulations;

(7) record any unusual occurrences, including suspected illegal activity;

(8) identify and remove any person who is required to be excluded pursuant to article 111 or 112 of the commission's regulations;

(9) report security violations or suspected illegal activity to the commission security staff within 24 hours;

(10) report to the commission's security staff, within 24 hours, any facts that the facility manager has reasonable grounds to believe indicate a violation of law, violation of the facility manager's minimum internal control standards, or violation of regulations committed by any facility manger, including the performance of activities different from those permitted under that person's license or certificate;

(11) notify commission security staff, within 24 hours, of all inquiries made by law enforcement officials and any inquiries made concerning the conduct of a person with a license or certificate; and

(12) establish and maintain procedures for handling the following:

(A) Identification badges;

(B) incident reports;

(D) power or camera failure;

(E) enforcement of the minimum gambling age;

(F) firearms prohibition;

(G) alcoholic beverage control;

(H) disorderly or disruptive patrons;

(I) trespassing;

(J) eviction;

(K) detention; and

(L) lost or found property.

(b) No open carrying of firearms shall be permitted within a gaming facility except for the following:

(1) Kansas racing and gaming commission enforcement agents;

(2) on-duty law enforcement officers; and

(3) trained and certified guards employed by an armored car service while on duty and working for a licensed non-gaming supplier company.

(1) Kansas racing and gaming commission enforcement agents;

(2) on-duty law enforcement officers in plain clothes engaged in the performance of their official duties; and

(3) any off-duty or retired law enforcement officer who meets the following conditions:

(A) Is in compliance with the firearms policies of the officer's law enforcement agency;

(B) is carrying a photographic identification card that identifies the individual as a current or retired law enforcement officer and has been issued by the officer's current agency or the agency from which the individual separated from service as a law enforcement officer;

(C) presents the photographic identification card specified in paragraph (c)(3)(B) when requested by a commission agent or gaming facility security personnel; and

(D) has not been denied a license to carry a concealed handgun and does not have a license to carry a concealed handgun that has been suspended or revoked pursuant to the personal and family protection act, K.S.A. 75-7c01 et seq. and amendments thereto.

(d) As used in this regulation, "law enforcement officer" shall mean any of the following:

(1) Any person employed by a law enforcement agency who is in good standing and is certified under the Kansas law enforcement training act;

(2) a law enforcement officer who has obtained a similar designation in a jurisdiction outside the state of Kansas but within the United States; or

(3) a federal law enforcement officer who, as part of the officer's duties, is permitted to make arrests and to be armed.

(e) Each facility manager shall meet its obligations in subsections (b) and (c) in accordance with the personal and family protection act, K.S.A. 75-7c01 et seq. and amendments thereto.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 74-8772; effective Sept. 26, 2008; amended April 1, 2011; amended March 20, 2020.)

Kan. Admin. Regs. § 112-105-2 Security plan

(a) Each applicant for a facility manager certification shall submit a security plan to the commission at least 120 days before the proposed opening of a racetrack gaming facility or lottery gaming facility. The plan shall be consistent with the applicant's contractual obligations with the Kansas lottery.

(b) A facility manager shall not commence gaming operations until its security plan has been approved by the commission.

(1) An organizational chart showing all positions in the security department;

(2) a description of the duties and responsibilities of each position shown on the organizational chart;

(3) the administrative and operational policies and procedures used in the security department;

(4) a description of the training required for security personnel;

(5) a description of the location of each permanent security station;

(6) the location of each security detention area;

(7) provisions for security staffing; and

(8) the emergency operations plan required by K.A.R. 112-105-3.

(d) All amendments to the security plan shall be submitted to the commission for approval at least 30 days before the date of desired implementation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-105-3 Emergency operations plan

(a) The director of security in the security department shall maintain an emergency operations plan, including evacuation procedures, to deal with the following:

(1) The discovery or threat of an explosive device on the property;

(2) a fire or fire alarm;

(3) a terrorist threat directed at the property;

(4) severe storms;

(5) the threat or use of an unauthorized firearm or any other weapon, as described in K.S.A. 21-4201 and amendments thereto; and

(6) any other event for which the applicant determines that prior planning is reasonable.

(b) When the applicant establishes the emergency operations plan, the safety of patrons and personnel shall be the first priority.

(c) The director of security shall ensure that the commission's security staff at the facility are notified of any emergency situation at that time.

(d) All amendments to the emergency operations plan shall be submitted to the commission for approval at least 30 days before the desired date of implementation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2010 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-105-4 Security department staffing

(a) Each security department shall be supervised by a director of security, who shall report directly to the general manager.

(b) The facility manager shall at all times maintain sufficient security officers on duty to reasonably meet the requirements in this article.

(d) Staffing considerations shall include the following:

(1) The size and layout of the property;

(2) special events;

(3) the number of people entering the facility at a given time;

(4) the number of occurrences of suspected illegal activity; and

(5) the safety of the people lawfully on the property.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-105-5 Reports

(a) The director of security shall ensure that a report is prepared regarding each incident observed by or reported to a security department employee that the employee suspects involves any one of the following:

(1) Criminal conduct;

(2) injuries to a patron or employee;

(3) gambling or any attempt to gamble by a person under the age of 21;

(4) the detention of persons;

(5) violation of any of the commission's regulations; and

(6) the presence within the facility of any person who is on the self-excluded or involuntary exclusion list.

(b) Each report shall include the following, at a minimum:

(1) The name of the person preparing the report;

(2) the date and time of the incident;

(3) the names of the security personnel present;

(4) the nature of the incident;

(5) the names of the persons involved, if available;

(6) the names of any witnesses, if available; and

(7) the security department's action.

(c) Each security department report shall be provided to commission security employees within 24 hours of the incident reported.

(d) Each security department report shall be retained by the director of security for at least one year after the reported incident.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-105-6 Security detention area

(a) The staff of the security department shall have access to at least one security detention area that is designated and used for the detention of persons by security officers, commission employees, or other law enforcement personnel.

(b) The security detention area shall be used exclusively for the detention of persons and shall be safe, secure, and away from other people lawfully at the facility.

(d) A security department employee shall be present in the security detention area whenever a person is being detained.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-105-7 Communications system

(a) Each security department shall have a communications system that allows all security officers on duty to communicate with each other.

(b) The communications system shall provide two-way communications between security officers and the surveillance department.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Article 106 Surveillance

Kan. Admin. Regs. § 112-106-1 Surveillance system

(a) A facility manager or applicant for a facility manager certification shall have a surveillance system before beginning gaming operations. The surveillance system shall include a digital video system capable of the following:

(1) Instant replay;

(2) recording by any camera in the system; and

(3) allowing simultaneous and uninterrupted recording and playback.

(b) The surveillance system shall include a communication system capable of monitoring the gaming facility, including the security department.

(d) The surveillance system shall be capable of monitoring the entire property, except private offices and restrooms.

(e) The surveillance system shall include the following features:

(1) Redundant system drives;

(2) a backup power supply capable of operating all surveillance equipment during a power outage. The backup power supply shall be tested on a monthly basis;

(3) backup storage components that will automatically continue or resume recording in the event of failure of any single component of the system, so that the failure of any single component will not result in the loss of any data from the system; and

(4) automatic restart if a power failure occurs.

(f) The digital video system shall meet the following requirements:

(1) Function as a closed network;

(2) have its access limited to the personnel identified in the surveillance system plan;

(3) be equipped to ensure that any transmissions are encrypted, have a firewall at both ends, and are password-protected;

(4) be equipped with a failure notification system that provides an audible and visual notification of any failure in the surveillance system or the digital video recording storage system;

(5) record all images and audit records on a hard drive;

(6) be locked by the manufacturer to do the following:

(A) Disable the erase and reformat functions; and

(B) prevent access to the system data files; and

(7) be equipped with data encryption or watermarking so that surveillance personnel will be capable of demonstrating in a court of law that the video was not altered or manipulated in any way.

(g) The surveillance system shall include cameras dedicated to monitoring the following with sufficient clarity to identify any person:

(1) The entrances to and exits from the gaming facility;

(2) the count rooms;

(3) the vaults;

(4) the surveillance room;

(5) the security rooms;

(6) all cage areas; and

(7) all exterior entrances to and exits from the property.

(h) The surveillance system required by this regulation shall be equipped with light-sensitive cameras with lenses of sufficient magnification to allow the operator to read information on an electronic gaming machine reel strip and credit meter and be capable of clandestine monitoring in detail and from various vantage points, including the following:

(1) The conduct and operation of electronic gaming machines, lottery facility games, and parimutuel wagering;

(2) the conduct and operation of the cashier's cage, satellite cashier's cages, mutuel lines, count rooms, and vault;

(3) the collection and count of the electronic gaming bill validator canisters; and

(4) the movement of cash and any other gaming facility assets.

(i) All cameras shall be equipped with lenses of sufficient magnification capabilities to allow the operator to clearly distinguish the value of the following:

(1) Chips;

(2) dice;

(3) tokens;

(4) playing cards;

(5) positions on the roulette wheel; and

(6) cash and cash equivalents.

(j) The surveillance system shall provide a view of the pit areas and gaming tables capable of clearly identifying the following:

(1) The dealers;

(2) the patrons;

(3) the hands of all participants in a game;

(4) facial views of all participants in a game;

(5) all pit personnel;

(6) the activities of all pit personnel;

(7) the chip trays;

(8) the token holders;

(9) the cash receptacles;

(10) the tip boxes;

(11) the dice;

(12) the shuffle machines;

(13) the card shoes, which are also called dealing boxes;

(14) the playing surface of all gaming tables with sufficient clarity to determine the following:

(A) All wagers;

(B) card values; and

(15) roulette tables, which shall be viewed by the surveillance system with color cameras.

(k) The surveillance of the electronic gaming devices shall be capable of providing the following:

(1) A view of all patrons;

(2) a facial view of all patrons with sufficient clarity to allow identification of each patron;

(3) a view of the electronic gaming device with sufficient clarity to observe the result of the game;

(4) an overall view of the areas around the electronic gaming device;

(5) a view of each bill validator with sufficient clarity to determine bill value and the amount of credit obtained; and

(6) a view of the progressive games, including the incrementation of the progressive jackpot.

(l) All surveillance system display screens shall meet all of the following requirements:

(1) Be equipped with a date and time generator synchronized to a central clock that meets the following requirements:

(A) Is displayed on any of the surveillance system display screens; and

(B) is recorded on all video pictures or digital images;

(2) be capable of recording what is viewed by any camera in the system; and

(3) be of a sufficient number to allow the following:

(A) Simultaneous recording and coverage as required by this article;

(B) off-line playback;

(D) single-channel monitors in the following areas:

(i) Each entry and each exit;

(ii) the main bank and cages;

(iii) table games; and

(iv) count rooms; and

(E) no more than four channels per monitor in all other areas where surveillance is required.

(m) The surveillance system shall be connected to at least one video printer. Each video printer shall be capable of generating clear color copies of the images depicted on the surveillance system display screen or video recording.

(n) The surveillance system shall allow audio recording in any room where the contents of bill validator canisters are counted.

(o) All wiring within the surveillance system shall be tamper-resistant.

(p) The surveillance system shall be linked to the commission's security office with equipment capable of monitoring or directing the view of any system camera.

(q) The commission's director of security shall be notified at least 48 hours in advance of the relocation of any camera on the surveillance system's floor plan.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-106-2 Surveillance system plan

(a) Each applicant for a facility manager certification shall submit a surveillance system plan to the commission at least 120 days before the proposed opening of a racetrack gaming facility or lottery gaming facility.

(b) A facility manager shall not commence gaming activities until its surveillance system plan is approved by the commission.

(1) A schematic showing the placement of all surveillance equipment;

(2) a detailed description of the surveillance system and its equipment;

(3) the policies and procedures for the surveillance department;

(4) the plans for staffing as required in K.A.R. 112-106-4;

(5) the monitoring activities for both the gaming area and adjacent areas;

(6) the monitoring activities for a detention room; and

(7) a list of the facility manager's personnel that may have access to the surveillance system.

(d) All proposed changes to the surveillance system plan shall be submitted by the director of surveillance to the commission for approval at least 30 days before the director of surveillance desires to implement the changes.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-106-3 Surveillance department

(a) Each facility manager shall have a surveillance department that is responsible for the following:

(1) Detection of cheating, theft, embezzlement, and other illegal activities in the gaming facility;

(2) detection of the presence in the gaming facility of any person who is required to be excluded pursuant to voluntary or involuntary exclusion;

(3) detection of persons under age 21 in the gaming areas; and

(4) clandestine video recording of activities in the facility.

(b) The surveillance department shall be independent of all aspects of the gaming facility operations.

(c) The director of surveillance shall ensure that procedures are created for maintaining the chain of evidence custody of surveillance information that reasonably can be expected to be used in a criminal or regulatory investigation.

(d) Upon request, each facility manager shall provide commission employees with access to its surveillance system and transmissions.

(e) Each member of the surveillance department shall comply with any request made by a commission employee to perform the following:

(1) Use, as necessary, any surveillance room in the gaming facility;

(2) display on the monitors in the surveillance room any event capable of being monitored by the surveillance system; and

(3) make a video recording and, if applicable, audio recording of, and take a still photograph of, any event capable of being monitored by the surveillance system.

(f) The director of surveillance shall notify commission security employees as soon as possible but within 30 minutes of any incident of surveillance equipment failure.

(g) The director of surveillance shall ensure that a reasonable attempt to repair or replace malfunctioning equipment is made within 24 hours.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-106-4 Surveillance department staffing

(a) The surveillance department shall be supervised by a director of surveillance. The director of surveillance shall report directly to the facility manager's board of directors or similar body. The director of surveillance shall not report to or take direction from any authority at or below the level of the general manager.

(b) The personnel of the facility manager's surveillance department shall at all times be employees of the facility manager. The facility manager shall not outsource the surveillance function to any third party.

(c) The surveillance department shall be reasonably staffed, as determined by the commission's director of security, considering the size and layout of the licensed facility and the number of electronic gaming machines and lottery facility games.

(d) No surveillance department employee shall transfer from the surveillance department to another department of a gaming facility, unless at least one year has passed since the surveillance department employee worked in surveillance. The facility manager may request that the commission waive this requirement if the facility manager demonstrates that the surveillance and security systems of the facility manager will not be jeopardized or compromised by the employment of the surveillance employee in the particular position requested.

(e) Each surveillance employee shall be trained in the following:

(1) Surveillance techniques;

(2) the operation of all surveillance equipment;

(3) regulatory requirements;

(4) internal control procedures;

(5) the rules of all available lottery facility games;

(6) the methods of cheating, theft, embezzlement, and other illegal activities in a gaming facility; and

(7) the surveillance department's procedures on handling surveillance evidence.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-106-5 Surveillance room

(a) Each facility manager shall have a secure surveillance room with reasonable space, as determined by the executive director, to accommodate the required equipment and operator stations.

(b) Each surveillance room shall be located out of the view of the gaming area. The entrances to the surveillance room shall be locked at all times and shall not be accessible to members of the public or non-surveillance employees of the gaming facility.

(c) Commission agents shall have unrestricted access to the surveillance room and all information received or stored by the surveillance system.

(d) Access to the surveillance room shall be limited to surveillance employees of the gaming facility and commission security employees, except that persons with a legitimate need to enter the surveillance room may do so upon receiving approval from a commission enforcement agent.

(1) Each person, other than surveillance personnel and commission enforcement agents, entering the surveillance room shall sign a surveillance room entry log.

(2) The surveillance room entry log shall meet the following requirements:

(A) Be maintained in the surveillance room by surveillance room personnel;

(B) be maintained in a book with bound numbered pages that cannot readily be removed;

(i) The date and time of entering the surveillance room;

(ii) the entering person's name and that person's affiliation or department within the gaming facility;

(iii) the reason for entering the surveillance room; and

(iv) the date and time of exiting the surveillance room; and

(D) be retained for at least one year after the date of the last entry. The destruction of the surveillance room entry log shall be approved by the commission's director of security.

(3) The surveillance room entry log shall be made available for inspection by the commission security employees upon demand.

(e) The surveillance room shall be subject to periodic inspection by commission employees to ensure that all of the following conditions are met:

(1) All equipment is working properly.

(2) No camera views are blocked or distorted by improper lighting or obstructions.

(3) All required surveillance capabilities are in place.

(4) All required logs are current and accurate.

(5) There is sufficient staff to protect the integrity of gaming at the facility.

(6) The surveillance room employees are not performing tasks beyond the surveillance operation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-106-6 Monitoring

(a) The surveillance department employees shall continuously record the transmissions from the cameras used to observe the following locations, persons, activities, and transactions:

(1) The entrances to and exits from the following:

(A) The gaming facility;

(B) the count rooms;

(D) the surveillance room;

(E) the security rooms;

(F) the cage areas; and

(G) the site of all ancillary operations;

(2) each transaction conducted at a cashiering location, whether or not that cashiering location services patrons;

(3) the main bank, vault, and satellite cages;

(4) the collection of cash storage boxes from electronic gaming machines;

(5) the count procedures conducted in the count room;

(6) any armored car collection or delivery;

(7) automated bill breaker, gaming voucher redemption, coupon redemption, and jackpot payout machines whenever the machines are opened for replenishment or other servicing; and

(8) any other areas specified in writing by the commission.

(b) The surveillance department employees shall maintain a surveillance log of all surveillance activities in the surveillance room. The log shall be maintained in a book with bound, numbered pages that cannot be readily removed or in an electronic format with an audit function that prevents modification of information after the information has been entered into the system. The log shall contain the following, at a minimum:

(1) The date and time of each entry;

(2) the identity of the employee making the entry;

(3) a summary of the activity recorded;

(4) the location of the activity;

(5) the location of the recorded information; and

(6) the surveillance department's disposition of the activity.

(c) The surveillance department employees shall record by camera and log the following events when they are known to occur on the property:

(1) Any activity by players and employees, alone or in concert, that could constitute cheating or stealing;

(2) any activity that could otherwise be criminal;

(3) any procedural violation by an employee;

(4) the detention of persons;

(5) the treatment of disorderly individuals;

(6) emergency activities capable of being observed by the surveillance system;

(7) the presence of persons on the involuntary exclusion list;

(8) the presence of persons on the self-exclusion list;

(9) arrests and evictions;

(10) the treatment of ill or injured patrons;

(11) the on-site maintenance and repair of any gaming or money handling equipment; and

(12) any jackpot winning of $1,200 or more.

(d) Surveillance department employees shall record by camera the movement of the following on the gaming facility floor:

(1) Cash;

(2) cash equivalents;

(3) tokens;

(4) cards;

(5) chips; or

(6) dice.

(e) The surveillance department employees shall continuously monitor and record by camera the following:

(1) Soft count procedures;

(2) hard count procedures;

(3) currency collection;

(4) drop bucket collection; and

(5) the removal of the daily bank deposit from the gaming facility by armored car officers.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-106-7 Retention of surveillance recordings

(a) All recordings depicting the detention or questioning of an individual suspected of procedural errors, regulatory violations, or criminal activity shall be copied and provided to law enforcement agents upon request. Each recording shall be retained by the facility manager for at least 60 days.

(b) Each recording not specified in subsection (a) shall be retained for at least 30 days.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008.)

Article 107 Electronic Gaming Machines

Kan. Admin. Regs. § 112-107-1 Electronic gaming machine requirements

(a) Each electronic gaming machine (EGM) approved for use in a gaming facility shall meet the requirements of article 110.

(b) Unless a facility manager's electronic gaming monitoring system is configured to automatically record all of the information required by this article, the facility manager shall be required to house the following entry authorization logs in each EGM:

(1) A machine entry authorization log that documents each time an EGM or any device connected to the EGM that could affect the operation of the EGM is opened. The log shall contain, at a minimum, the following:

(A) The date and time of opening;

(B) the purpose for opening the EGM or device;

(D) if a device, the asset number corresponding to the EGM in which the device is housed; and

(2) a progressive entry authorization log that documents each time a progressive controller not housed within the cabinet of the EGM is opened. The log shall contain, at a minimum, the following:

(A) The date and time of opening;

(B) the purpose for accessing the progressive controller; and

(C) the signature and the license or permit number of the person accessing the progressive controller. Each log shall be maintained in the progressive controller unit and have recorded on the log a sequence number and the gaming supplier's serial number of the progressive controller.

(c) Each EGM shall be equipped with a lock controlling access to the card cage door securing the microprocessor, and the lock's key shall be different from any other key securing access to the EGM's components, including its belly door or main door, bill validator, and electronic gaming cash storage box. Access to the key securing the microprocessor shall be limited to a supervisor in the security department. The department's director of security shall establish a sign-out and sign-in procedure for the key, which shall include notification to commission staff before release of the key.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8750 and 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-2 Testing and approval

(a) Each EGM prototype and the associated equipment operated in this state shall be approved in accordance with the act, this article, and article 110.

(b) One of the following EGM testing procedures may be required by the executive director:

(1) An abbreviated testing and approval process in accordance with K.A.R. 112-107-3(g); or

(2) testing and approval in accordance with K.A.R. 112-107-3(i).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8750 and 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-3 Submission for testing and approval

(a) Each LFG prototype and the associated equipment subject to testing and approval under this regulation shall be evaluated by the commission for the following:

(1) Overall operational integrity and compliance with the act, this article, and the technical standards adopted by the commission under article 110;

(2) compatibility and compliance with the central computer system; and

(3) compatibility with any protocol specifications approved by the Kansas lottery, including the ability to communicate with the central computer system for the purpose of transmitting auditing program information, real-time information retrieval, and activation and disabling of LFGs.

(b) LFGs and associated equipment that shall be submitted for testing and commission approval include the following:

(1) Bill validators and printers;

(2) electronic gaming monitoring systems, to the extent that the systems interface with LFGs and related systems;

(3) LFG management systems that interface with LFGs and related systems;

(4) player tracking systems that interface with LFGs and related systems;

(5) progressive systems, including wide-area progressive systems;

(6) gaming ticket systems;

(7) external bonusing systems;

(8) cashless funds transfer systems;

(9) machines performing gaming ticket, coupon, or jackpot payout transactions;

(10) coupon systems, to the extent the systems interface with LFGs and related systems; and

(11) other LFG-related systems as determined by the executive director.

(c) A product submission checklist to be completed by an applicant for or holder of a gaming supplier certificate may be prescribed by the executive director.

(d) The chief engineer of the applicant for or holder of a gaming supplier certificate or the engineer in charge of the division of the gaming supplier responsible for producing the product submitted may be required by the executive director to attest that the LFGs and associated equipment were properly and completely tested by the gaming supplier before submission to the commission.

(e) An abbreviated testing and approval process may be utilized by the commission in accordance with the act.

(f) If a facility manager develops software or a system that is functionally equivalent to any of the electronic gaming systems specified in subsection (b), that software or system shall be subject to the testing and approval process of this article to the same extent as if the software or system were developed by a gaming supplier certificate holder. Each reference in this article to the responsibilities of a gaming supplier certificate holder shall apply to a facility manager developing software or systems subject to testing and approval under this article.

(g) When an applicant or gaming supplier certificate holder seeks to utilize the abbreviated testing and approval process for an LFG prototype, associated device or software, or any modification to an LFG prototype, associated device or software, the applicant or supplier shall submit the following to the independent testing laboratory:

(1) A prototype of the equipment, device, or software accompanied by a written request for abbreviated testing and approval that identifies the jurisdiction within the United States upon which the applicant or supplier proposes that the commission rely. The applicant or supplier shall transport the equipment, device, or software at its own expense and deliver it to the offices of the independent testing laboratory;

(2) a certification executed by the chief engineer or engineer in charge of the applicant or supplier verifying that all of the following conditions are met:

(A) The prototype or modification is identical in all mechanical, electrical, and other respects to one that has been tested and approved by the testing facility operated by the jurisdiction or private testing facility on behalf of the jurisdiction;

(B) the applicant or supplier is currently certified and in good standing in the named jurisdiction, and the prototype has obtained all regulatory approvals necessary to sale or distribution in the named jurisdiction;

(C) in the engineer's opinion, the testing standards of the named jurisdiction are comprehensive and thorough and provide adequate safeguards that are similar to those required by this article; and

(D) in the engineer's opinion, the equipment, device, or software meets the requirements of the act, this article, and the technical standards adopted by the commission under article 110, including requirements related to the central computer system;

(3) an executed copy of a product submission applicable to the submitted equipment, device, or software unless a substantially similar checklist was filed with the named jurisdiction and is included in the submission package required by paragraph (g)(4);

(4) copies of the submission package and any amendments filed with the named jurisdiction, copies of any correspondence, review letters, or approvals issued by the testing facility operated by the named jurisdiction or a private testing facility on behalf of the named jurisdiction and, if applicable, a copy of the final regulatory approval issued by the named jurisdiction;

(5) a disclosure that details any conditions or limitations placed by the named jurisdiction on the operation or placement of the equipment, device, or software at the time of approval or following approval;

(6) a complete and accurate description of the manner in which the equipment, device, or software was tested for compatibility and compliance with the central computer system and protocol specifications approved by the Kansas lottery, including the ability to communicate with the central computer system for the purpose of transmitting auditing program information, real-time information retrieval, and activation and disabling of LFGs;

(7) any hardware, software, and other equipment, including applicable technical support and maintenance, required by the independent testing laboratory to conduct the abbreviated testing and approval process required by the act, this article, and the technical standards adopted by the commission under article 110. The testing equipment and services required by this subsection shall be provided at no cost to the commission; and

(8) any additional documentation requested by the commission that is necessary to evaluate the LFG, associated equipment, or any modification.

(h) When an applicant or a gaming supplier seeks commission approval of an LFG, equipment, device, or software, or any modification to which the abbreviated testing process in subsection (f) is not applicable, the applicant or supplier shall submit the following to the independent testing laboratory:

(1) A prototype of the equipment, device, or software accompanied by a written request for testing and approval. The gaming supplier shall transport the equipment, device, or software at its own expense and deliver the equipment, device, or software to the offices of the commission's independent testing laboratory in accordance with instructions provided;

(2) any certifications required under this regulation;

(3) an executed copy of a current product submission checklist;

(4) a complete and accurate description of the equipment, device, or software, accompanied by related diagrams, schematics, and specifications, together with documentation with regard to the manner in which the product was tested before its submission to the commission;

(5) any hardware, software, and other equipment, including applicable technical support and maintenance, required by the independent testing laboratory to conduct the testing and approval process required by the act, this article, and the technical standards adopted by the commission under article 110. All testing equipment and services required by this subsection shall be provided at no cost to the commission;

(6) for an LFG prototype, the following additional information, which shall be provided to the commission:

(A) A copy of all operating software needed to run the LFG, including data and graphics information, on electronically readable and unalterable media;

(B) a copy of all source code for programs that cannot be reasonably demonstrated to have any use other than in an LFG, on electronically readable and unalterable media;

(D) an explanation of the theoretical return to the player, listing all mathematical assumptions, all steps in the formula from the first principles through the final results of all calculations including bonus payouts, and, when a game requires or permits player skill in the theoretical derivations of the payout return, the source of strategy;

(E) hardware block diagrams of the major subsystems;

(F) a complete set of schematics for all subsystems;

(G) a diagram of the wiring harness connection;

(H) a technical or operator manual;

(I) a description of the security methodologies incorporated into the design of the LFG including, when applicable, encryption methodology for all alterable media, auto-authentication of software, and recovery capability of the LFG for power interruption;

(J) a cross reference of product meters to the required meters specified in article 110;

(K) a description of tower light functions indicating the corresponding condition;

(L) a description of each error condition and the corresponding action required to resolve the error;

(M) a description of the use and function of available electronic switch settings or configurable options;

(N) a description of the pseudo random number generator or generators used to determine the results of a wager, including a detailed explanation of operational methodology, and a description of the manner by which the pseudo random number generator and random number selection processes are impervious to outside influences, interference from electromagnetic, electrostatic, and radio frequencies, and influence from ancillary equipment by means of data communications. Test results in support of representations shall be submitted;

(O) specialized hardware, software, or testing equipment, including technical support and maintenance, needed to complete the evaluation, which may include an emulator for a specified microprocessor, personal computers, extender cables for the central processing unit, target reel strips, and door defeats. The testing equipment and services required by this subsection shall be provided at no cost to the commission;

(P) a compiler, or reasonable access to a compiler, for the purpose of building applicable code modules;

(Q) program storage media including erasable programmable read-only memory (EPROM), electronically erasable programmable read-only memory (EEPROM), and any type of alterable media for LFG software;

(R) technical specifications for any microprocessor or microcontroller;

(S) a complete and accurate description of the manner in which the LFG was tested for compatibility and compliance with the central computer system and protocol specifications approved by the Kansas lottery, including the ability to communicate with the central computer system for the purpose of transmitting auditing program information, real-time information retrieval, and activation and disabling of LFGs; and

(T) any additional documentation requested by the commission relating to the LFG;

(7) if an LFG prototype is modified, including a change in theme, the following additional information, which shall be provided to the commission:

(A) A complete and accurate description of the proposed modification to the LFG prototype, accompanied by applicable diagrams, schematics, and specifications;

(B) when a change in theme is involved, a copy of the graphical images displayed on the LFG, including reel strips, rules, instructions, and pay tables;

(C) when a change in the computation of the theoretical payout percentage is involved, a mathematical explanation of the theoretical return to the player, listing all assumptions, all steps in the formula from the first principles through the final results of all calculations including bonus payouts, and, when a game requires or permits player skill in the theoretical derivations of the payout return, the source of strategy;

(D) a complete and accurate description of the manner in which the LFG was tested for compatibility and compliance with the central computer system and protocol specifications approved by the Kansas lottery, including the ability to communicate with the central computer system for the purpose of transmitting auditing program information, real-time information retrieval and activation, and the disabling of LFGs; and

(E) any additional documentation requested by the commission relating to the modification of the LFG;

(8) for an electronic gaming monitoring system, casino management system, player tracking system, wide-area progressive system, gaming ticket system, external bonusing system, cashless funds transfer system, automated gaming ticket, coupon redemption or jackpot payout machine, coupon system, or any other equipment or system required to be tested and approved under subsection (b), the following:

(A) A technical manual;

(B) a description of security methodologies incorporated into the design of the system, which shall include the following, when applicable:

(i) Password protection;

(ii) encryption methodology and its application;

(iii) automatic authentication; and

(iv) network redundancy, backup, and recovery procedures;

(C) a complete schematic or network diagram of the system's major components accompanied by a description of each component's functionality and a software object report;

(D) a description of the data flow, in narrative and in schematic form, including specifics with regard to data cabling and, when appropriate, communications methodology for multisite applications;

(E) a list of computer operating systems and third-party software incorporated into the system, together with a description of their interoperability;

(F) system software and hardware installation procedures;

(G) a list of available system reports;

(H) when applicable, features for each system, which may include patron and employee card functions, promotions, reconciliation procedures, and patron services;

(I) a description of the interoperability testing, including test results for each submitted system's connection to LFGs, to ticket, coupon redemption, and jackpot payout machines, and to computerized systems for counting money, tickets, and coupons. This list shall identify the tested products by gaming supplier, model, and software identification and version number;

(J) a narrative describing the method used to authenticate software;

(K) all source codes;

(L) a complete and accurate description, accompanied by applicable diagrams, schematics, and specifications, of the creation of a ticket and the redemption options available;

(M) a complete and technically accurate description, accompanied by applicable diagrams, schematics, and specifications, of the creation of a coupon and the redemption options available;

(N) any specialized hardware, software, or other equipment, including applicable technical support and maintenance required by the independent testing laboratory to conduct the testing and approval process required by the act, this article, and the technical standards adopted by the commission under article 110. The testing equipment and services required by this subsection shall be provided at no cost to the commission; and

(O) any additional documentation requested by the executive director related to the equipment or system being tested; and

(9) for a modification to any of the systems identified in paragraph (h)(8), the following additional information:

(A) A complete and accurate description of the proposed modification to the system, accompanied by applicable diagrams, schematics, and specifications;

(B) a narrative disclosing the purpose for the modification; and

(i) A trial period may be required by the commission to assess the functionality of the prototype or modification in a live gaming environment. The conduct of the trial period shall be subject to compliance by the gaming supplier and the facility manager with any conditions that may be required by the commission. These conditions may include development and implementation of product-specific accounting and internal controls, periodic data reporting to the commission, and compliance with the technical standards adopted under article 110 on trial periods or the prototype or modification adopted by the commission. Termination of the trial period may be ordered by the executive director if the executive director determines that the gaming supplier or the facility manager conducting the trial period has not complied with the conditions required by the commission or that the product is not performing as expected.

(j) At the conclusion of the testing of a prototype or modification, the independent testing laboratory shall report the results of its testing to the commission. Upon receipt of the independent testing laboratory's report, any one of the following shall be done by the commission:

(1) Approve;

(2) approve with conditions;

(3) reject the submitted prototype or modification; or

(4) require additional testing or a trial period under subsection (i).

(k) A facility manager shall not install an LFG or associated equipment, or any modification, required to be tested and approved under subsection (b) unless the equipment, device, or software has been approved by the commission and issued a certificate authorizing its use at the gaming facility. The certificate shall be prominently displayed on the approved device. A facility manager shall not modify, alter, or tamper with an approved LFG, the associated equipment, or a commission-issued certificate. Before the removal of the LFG or associated equipment from the gaming facility, the certificate shall be removed by a commission agent. An LFG or the associated equipment installed in a gaming facility in contravention of this requirement shall be subject to seizure by any Kansas law enforcement officer.

(l) The installation of a modification to an LFG prototype or the associated equipment prototype may be authorized by the executive director on an emergency basis to prevent cheating or malfunction, upon the written request of a gaming supplier. The request shall specify the name and employer of any persons to be involved in the installation of the modification and the manner in which the installation is to be effected. Within 15 days of receipt of any authorization to install an emergency modification, the gaming supplier shall submit the modification for full testing and approval in accordance with this article.

(m) Each facility manager shall, no later than four hours after detection, notify the commission's security staff of any known or suspected defect or malfunction in any LFG or associated equipment installed in the gaming facility. The facility manager shall comply with any instructions from the commission staff for use of the LFG or associated equipment.

(n) Each facility manager shall file a master list of approved gaming machines as required by K.A.R. 112-107-10.

(o) Each gaming supplier shall, no later than 48 hours after detection, notify the commission of any known or suspected defect or malfunction in any LFG or associated equipment approved for use in a lottery gaming facility.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2009 Supp. 74-8772; implementing K.S.A. 2009 Supp. 74-8749, 74-8750, and 74-8772; effective April 24, 2009; amended April 1, 2011.)

Kan. Admin. Regs. § 112-107-5 Transportation of LFGs

(a) The transportation of any LFG into or out of this state shall be approved in advance by the executive director. The person causing the LFG to be transported or moved shall notify the executive director of the proposed importation or exportation at least 15 days before the LFG is moved, unless otherwise approved by the executive director. The notice shall include the following information:

(1) The name and address of the person shipping or moving the LFG;

(2) the name and address of the person who manufactured, assembled, distributed, or resold the LFG, if different from the person shipping or moving the game;

(3) the name and address of a new owner if ownership is being changed in conjunction with the shipment or movement;

(4) the method of shipment or movement and the name and address of the common carrier or carriers, if applicable;

(5) the name and address of the person to whom the LFG is being sent and the destination of the LFG, if different from that address;

(6) the quantity of LFG being shipped or moved and the manufacturer's make, model, and serial number of each game;

(7) the expected date and time of delivery to, or removal from, any authorized location within this state;

(8) the port of entry or exit, if any, of the LFG if the origin or destination of the LFG is outside the continental United States; and

(9) the reason for transporting or moving the LFG.

(b) Each shipment of LFGs shall be sealed before being transported. On arrival at the gaming facility, the shipment shall not be opened or inventoried until the seal is witnessed and broken by an agent of the commission. An agent of the commission shall verify that the LFGs are unloaded, inventoried, and compared to the notice required in subsection (a).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective April 24, 2009; amended April 1, 2011.)

Kan. Admin. Regs. § 112-107-6 Off-premises storage of EGMs

(a) A facility manager shall not store EGMs off the premises of the gaming facility without prior approval from the commission.

(b) Each facility manager seeking to store EGMs off the premises of the gaming facility shall file a written request for off-premises storage with the executive director. The request shall include all of the following:

(1) The location and a physical description of the proposed storage facility;

(2) a description of the type of surveillance system that has been or will be installed at the storage facility;

(3) the facility manager's plan to provide continuous security at the storage facility;

(4) the number and the name of the manufacturer of the EGMs that will be stored at the facility;

(5) the date that the EGMs are expected to arrive at the storage facility; and

(6) the date that the EGMs are expected to be moved to the gaming facility.

(c) Before acting on a request for off-premises storage of EGMs, agents of the commission shall inspect the proposed storage facility.

(d) Each request shall be responded to by the executive director within 30 days. Any request approved by the executive director may be subject to specific terms and conditions imposed by the executive director.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-7 Gaming floor plan

(a) Each applicant or gaming facility manager shall submit to the commission a floor plan of its gaming floor and the restricted areas servicing the electronic gaming operation. The floor plan shall include depictions drawn to a scale of 1/8 inch per foot, unless another scale is approved by the executive director, of the following:

(1) Each EGM area on the gaming floor and each EGM location within each EGM area. EGM locations shall be identified by number;

(2) the cage and any satellite cage, including each cage window and window number;

(3) each count room and any trolley storage area;

(4) each automated bill validator, gaming ticket redemption machine, coupon redemption machine, and jackpot payout machine;

(5) each automated teller machine;

(6) each area designated for the storage or repair of EGMs;

(7) the location of each vault and armored car bay; and

(8) any additional documentation requested by the executive director relating to the floor plan for the gaming floor.

(b) A gaming facility manager shall not commence electronic gaming operations until the floor plan depicting the facility manager's gaming floor and all restricted areas servicing the electronic gaming operation has been approved in writing by the executive director.

(c) A gaming facility manager shall not change the number, configuration, or location of EGMs on the floor plan approved under subsection (b) without the prior written approval of the executive director.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2008 Supp. 74-8772; implementing K.S.A. 2008 Supp. 74-8752 and 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-9 Testing and software installation on the live gaming floor

(a) Each facility manager shall notify the executive director in writing at least 72 hours before testing any EGMs, associated equipment, and displays on a gaming floor during the facility manager's gaming hours. The notification shall include the following:

(1) A detailed narrative description of the type of testing to be conducted, including the reason for the testing, a list of individuals conducting the testing, and the facility manager's procedures for conducting the testing;

(2) the date, time, and approximate duration of the testing;

(3) the model, EGM location number, and asset number of the EGM or machines to be tested; and

(4) the location within the gaming facility where the testing shall occur.

(b) Each facility manager shall notify the executive director at least 72 hours before installing any new software or installing any change in previously approved software for the following:

(1) Automated gaming ticket and coupon redemption machines;

(2) wide-area progressive systems;

(3) electronic gaming monitoring systems;

(4) casino management systems;

(5) player tracking systems;

(6) external bonusing systems, as specified in K.A.R. 112-107-26;

(7) cashless funds transfer systems;

(8) server-supported electronic gaming systems;

(9) server-based electronic gaming systems; and

(10) automated jackpot payout machines.

(1) A description of the reasons for the new installation or change in previously approved software;

(2) a list of the computer components and the programs or versions to be modified or replaced;

(3) a description of any screens, menus, reports, operating processes, configurable options, or settings that will be affected;

(4) the method to be used to complete the proposed installation;

(5) the date that the proposed modification will be installed and the estimated time for completion;

(6) the name, title, and employer of the persons performing the installation;

(7) a diagrammatic representation of the proposed hardware design change;

(8) restrictions on access to the production code by the person implementing the installation; and

(9) procedures to ensure that user and operator manuals are updated to reflect changes in policies and procedures resulting from the proposed installation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2008 Supp. 74-8772; implementing K.S.A. 2008 Supp. 74-8750 and 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-10 Master list of approved gaming machines

(a) At least 20 days before commencing gaming, each facility manager shall file with the commission, in writing, a complete list of the LFGs and gaming equipment possessed by the facility manager on its gaming floor, in restricted areas off the gaming floor but within the gaming facility as approved by the commission under K.A.R. 112-104-26, and in storage locations in this state off the premises of the gaming facility as approved by the commission under K.A.R. 112-107-6. The list shall be titled as a master list of approved gaming machines.

(b) The master list of approved LFGs and gaming equipment shall contain the following information that, for those LFGs and the gaming equipment located on the gaming floor, shall be presented for each LFG and gaming equipment in consecutive order by the LFG or gaming equipment location number:

(1) The date the list was prepared;

(2) a description of each LFG and all gaming equipment, using the following:

(A) Asset number and model and manufacturer's serial number;

(B) computer program number and version;

(D) manufacturer and machine type, noting cabinet type;

(E) if an LFG, specification of whether the LFG is a progressive or a wide-area progressive LFG;

(F) an indication as to whether the LFG or gaming equipment is configured to communicate with a cashless funds transfer system;

(G) an indication as to whether the LFG or gaming equipment is configured to communicate with a gaming ticket system;

(H) designation of which specific surveillance video system cameras will be able to view that LFG or gaming equipment; and

(I) commission certificate number;

(3) for those LFGs or gaming equipment located off the gaming floor, an indication as to whether the LFG or gaming equipment is in a restricted area off the gaming floor but within the gaming facility under K.A.R. 112-104-26 or is in a commission-approved storage location in this state off the premises of the gaming facility under K.A.R. 112-107-6; and

(4) any additional relevant information requested by the commission.

(c) If an LFG or gaming equipment has been placed in an authorized location on the gaming floor or is stored in a restricted area off the gaming floor but within the gaming facility as approved by the commission under K.A.R. 112-104-26, then all subsequent movements of that LFG or gaming equipment within the gaming facility shall be recorded by an LFG department member in a gaming equipment movement log, which shall include the following:

(1) The asset number and model and the manufacturer's serial number of the moved LFG or gaming equipment;

(2) the date and time of movement;

(3) the location from which the LFG or gaming equipment was moved;

(4) the location to which the LFG or gaming equipment was moved;

(5) the date and time of any required notice to the Kansas lottery in connection with the activation or disabling of the LFG in the central computer system;

(6) the signature of the LFG shift manager and the commission's electronic gaming inspector verifying the movement of the LFG or gaming equipment in compliance with this regulation; and

(7) any other relevant information the commission may require.

(d) Before moving an LFG or any gaming equipment that has been placed in an authorized location on the gaming floor, the facility manager shall remove the bill validator canister drop box and transport the drop box to the count room in accordance with the procedures in K.A.R. 112-104-18.

(e) The facility manager shall daily submit documentation summarizing the movement of LFGs and gaming equipment within a gaming facility to the commission, in writing or in an electronic format approved by the commission.

(f) On the first Tuesday of each month following the initial filing of a master list of approved LFGs or gaming equipment, a facility manager shall file with the commission, in writing or in an electronic format approved by the commission, an updated master list of approved LFGs or gaming equipment containing the information required in subsection (b).

(g) Each gaming supplier and each regulatory or law enforcement agency that possesses LFGs shall file with the commission, in writing or in an electronic format approved by the commission, a complete list of the LFGs possessed by the entity. The list shall be titled as a master list of approved gaming machines and shall be filed within three business days of the initial receipt of the LFGs. Each list shall contain the following information:

(1) The date on which the list was prepared; and

(2) a description of each LFG by the following:

(A) Model and manufacturer's serial number;

(B) manufacturer and machine type, noting cabinet type; and

(h) On the first Tuesday of each month following the initial filing of a master list of approved LFGs or gaming equipment, those persons specified in subsection (f) shall file with the commission, in writing or in an electronic format approved by the commission, an updated master list of approved LFGs or gaming equipment containing the information required in subsection (g).

(i) A computer system designed to meet the requirements of this regulation may be approved by the executive director.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2010 Supp. 74-8772; implementing K.S.A. 2010 Supp. 74-8750 and 74-8772; effective April 24, 2009; amended April 1, 2011.)

Kan. Admin. Regs. § 112-107-11 Notice to Kansas lottery of EGM movement

Each facility manager shall obtain authorization from the executive director and the Kansas lottery's executive director before doing any of the following:

(a) Placing an EGM on the gaming floor;

(b) moving an EGM to a different location on the gaming floor; or

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2008 Supp. 74-8772; implementing K.S.A. 2008 Supp. 74-8749, 74-8750, and 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-13 Commencement of electronic gaming operations

(a) Each facility manager shall demonstrate that the facility manager has met all of the following conditions before commencing electronic gaming at a gaming facility:

(1) The gaming facility, including the gaming floor and restricted areas servicing the electronic gaming operation, meets all the applicable requirements of the act, this article, and article 110.

(2) Each EGM and the associated equipment installed in the gaming facility and utilized in the conduct of EGM operations have been tested and approved by the commission in compliance with the act, this article, and article 110.

(3) The gaming floor plan required under K.A.R. 112-107-7(a) has been approved by the executive director in compliance with the act, this article, and article 110.

(4) The facility manager's internal control system has been approved by the commission in compliance with the act, this article, K.A.R 112-104-1, and article 110.

(5) The facility manager is prepared to implement necessary management controls, surveillance, and security precautions to ensure the efficient conduct of electronic gaming operations.

(6) The facility manager's employees are licensed or permitted by the commission and are trained in the performance of their responsibilities.

(7) The gaming facility is prepared in all respects to receive the public.

(8) The facility manager has successfully completed a test period.

(9) For racetrack gaming facility managers, the facility manager has met the live racing requirements under the act.

(b) When a facility manager meets the requirements in subsection (a), the date and time at which the facility manager may begin gaming operations at the gaming facility shall be authorized by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8749, 74-8750, and 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-14 EGM conversions

Each facility manager shall meet the following requirements:

(a) Maintain complete and accurate records of all EGM conversions;

(b) give prior written notice of each EGM conversion to the commission; and

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2008 Supp. 74-8772; implementing K.S.A. 2008 Supp. 74-8750, 74-8752, and 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-15 Revocations and additional conditions

The approval of or imposition of additional conditions on an EGM prototype, associated equipment prototype, or modification may be revoked by the commission if the equipment, device, or software meets either of the following conditions:

(a) The equipment, device, or software does not meet the requirements of the act, this article, or article 110.

(b) The EGM, or modification to the EGM, is not compatible or compliant with the central computer system and protocol specifications approved by the Kansas lottery commission or is unable to communicate with the central computer system for the purpose of transmitting auditing program information, real-time information retrieval, and the activation and disabling of EGMs.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8749, 74-8750, and 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-16 Kiosks as automated gaming ticket and coupon redemption machines

(a) Any facility manager may utilize a kiosk as an automated gaming ticket and coupon redemption machine if that machine has been tested and approved by the commission under K.A.R. 112-107-3.

(b) Automated gaming ticket and coupon redemption machines may be located on or proximate to the gaming floor of a gaming facility and shall be subject to surveillance coverage under article 106. Each kiosk shall have imprinted, affixed, or impressed on the outside of the machine a unique asset identification number.

(c)Each kiosk shall meet the requirements of article 110.

(d)Before using a kiosk, a facility manager shall establish a comprehensive system of internal controls addressing the distribution of currency or coin, or both, to the machines, the removal of gaming tickets, coupons or currency accepted by the machines, and the associated reconciliations. The internal controls shall be submitted to and approved by the commission under K.A.R. 112-104-1.

(e)Each kiosk or the ancillary systems, applications, and equipment associated with reconciliation shall be capable of producing the following reports upon request:

(1) A gaming ticket transaction report. The report shall include the disposition of gaming tickets, including whether the ticket has been paid, partially paid, unpaid, or accepted by a kiosk, which shall include the validation number, the date and time of redemption, amount requested, and the amount dispensed. This information shall be available by reconciliation period, which may be by day, shift, or drop cycle;

(2) a coupon transaction report. This report shall include the payment disposition of coupons accepted by a kiosk, which shall include the unique serial number, the date and time of redemption, the amount requested, and the amount dispensed. The information shall be available by reconciliation period, which may be by day, shift, or drop cycle;

(3) a reconciliation report. The report shall include all of the following:

(A) Report date and time;

(B) unique asset identification number of the machine;

(D) total count of currency accepted by denomination;

(E) total dollar amount of tickets accepted;

(F) total count of gaming tickets accepted;

(G) total dollar amount of coupons accepted; and

(H) total count of coupons accepted;

(4) gaming ticket, coupon, and currency storage box report. The report shall be generated, at a minimum, whenever a gaming ticket, coupon, or currency storage box is removed from a kiosk. The report shall include all of the following:

(A) Report date and time;

(B) unique asset identification number of the machine;

(D) total value of currency dispensed;

(E) total number of bills dispensed by denomination;

(F) total dollar value of gaming tickets accepted;

(G) total count of gaming tickets accepted;

(H) total dollar value of coupons accepted;

(I) total count of coupons accepted; and

(J) the details required to be included in the gaming ticket transaction report required by paragraph (e)(1) and the coupon transaction report required in paragraph (e)(2); and

(5) a transaction report. The report shall include all critical patron transaction history, including the date, time, amount, and disposition of each complete and incomplete transaction. If a kiosk is capable of redeeming multiple tickets or coupons in a single transaction, the transaction history shall include a breakdown of the transaction with regard to the individual gaming tickets and coupons accepted.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-17 Automated jackpot payout machines

(a) Any facility manager may utilize an automated jackpot payout machine that has been tested and approved by the commission under K.A.R. 112-107-3.

(b) Each automated jackpot payout machine shall meet the requirements of the act, this article, and article 110.

(c) Before using an automated jackpot payout machine, each facility manager shall establish a comprehensive system of internal controls for the payment of jackpot payouts utilizing an automated jackpot payout machine and the distribution of currency or coin, or both, to the machines. The internal controls shall be submitted to and approved by the commission under K.A.R. 112-104-1.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2008 Supp. 74-8772; implementing K.S.A. 2008 Supp. 74-8750 and 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-18 Gaming tickets

(a) A facility manager may utilize gaming tickets and a gaming ticket system that has been tested and approved by the commission under K.A.R. 112-107-3.

(b) Each facility manager shall establish a system of internal controls for the issuance and redemption of gaming tickets. The internal controls shall be submitted and approved by the commission under K.A.R. 112-104-1 and shall address the following:

(1) The procedures for assigning an EGM's asset number, identifying other redemption locations in the system, and enabling and disabling ticket capabilities for EGMs and redemption locations;

(2) the procedures for issuance, modification, and termination of a unique system account for each user in accordance with article 110;

(3) the procedures used to configure and maintain user passwords in accordance with article 110;

(4) the procedures for restricting special rights and privileges, including administrator and override capabilities, in accordance with article 110;

(5) the duties and responsibilities of the information technology, internal audit, electronic gaming operations, cage, and accounting departments and the level of access for each position with regard to the gaming ticket system;

(6) a description of physical controls on all critical hardware, including locks and surveillance. This description shall include the location and security protocols applicable to each piece of equipment;

(7) the procedures for the backup and timely recovery of critical data in accordance with article 110; and

(8) the use of logs to document and maintain the details of commission-approved hardware and software modifications upon implementation.

(c) The system of internal controls required in subsection (b) shall also include controls over the issuance and redemption of gaming tickets and shall include all of the following requirements:

(1) Upon presentation of a gaming ticket for redemption, the electronic gaming cashier or EGM shall use the gaming ticket system to verify the validity of the serial number and value of the ticket, and if valid, the system shall immediately cancel the ticket electronically and permit the redemption of the ticket for the value printed thereon. Before redeeming a gaming ticket, the complete serial number of the unredeemed gaming ticket shall be available only to the system.

(2) The facility manager shall maintain a record of all transactions in the gaming ticket system for at least 210 days from the date of the transaction.

(3) Each gaming ticket shall expire in not less than 180 days from the date of issuance if not redeemed.

(4) A gaming ticket system shall not be configured to issue a gaming ticket exceeding $10,000.

(5) The facility manager shall maintain a record of unredeemed gaming tickets for all gaming tickets that were issued but not redeemed. The record shall be stored in the system for a period of time approved by the executive director, which shall be at least one year from the date of issuance of the gaming ticket. The following requirements shall apply:

(A) Each unredeemed gaming ticket record removed from the system after one year shall be stored and controlled in a manner approved by the commission.

(B) Each unredeemed gaming ticket record removed from the system shall be subject to the standard record retention requirements of this article.

(d) The system of internal controls required to be submitted and approved by the commission under subsection (b) shall also include procedures to be used in the following instances:

(1) If the facility manager chooses to pay a patron the represented value of a gaming ticket notwithstanding the fact that the gaming ticket system is inoperable, rendering the manager unable to determine the validity of the gaming ticket at the time of payment. The system of internal controls shall include procedures to verify the ticket once the gaming ticket system becomes operable in accordance with article 110; and

(2) if the facility manager chooses to pay a patron the value of a gaming ticket notwithstanding the fact that the gaming ticket system failed to verify and electronically cancel the gaming ticket when it was scanned. Each payment by the facility manager shall be treated as a complimentary. These payments shall not result in a deduction from EGM income.

(e) At the end of each gaming day, the gaming ticket system shall be caused by the facility manager to generate reports, and the reports shall be provided to the manager's accounting department, either directly by the system or through the management information systems department. The report, at a minimum, shall contain the following information:

(1) A list of all gaming tickets that have been issued, including the asset number and the serial number of the EGM, and the value, date, and time of issuance of each gaming ticket;

(2) a list of all gaming tickets that have been redeemed and cancelled, including the redemption location, the asset number of the EGM or location if other than an EGM, the serial number, the value, date, and time of redemption for each ticket, the total value of all gaming tickets redeemed at EGMs, and the total value of all gaming tickets redeemed at locations other than EGMs;

(3) the liability for unredeemed gaming tickets;

(4) the readings on gaming ticket-related EGM meters and a comparison of the readings to the number and value of issued and redeemed gaming tickets, as applicable;

(5) the exception reports and audit logs; and

(6) any other relevant reports as required by the executive director.

(f) Each facility manager shall, at the time of discovery, report to the commission audit staff any evidence that a gaming ticket has been counterfeited, tampered with, or altered in any way that would affect the integrity, accuracy, reliability, or suitability of the gaming ticket.

(g) Upon any attempt to redeem a gaming ticket when the total value of which gaming ticket cannot be completely converted into an equivalent value of credits, the EGM shall perform one of the following procedures:

(1) Automatically issue a new gaming ticket containing the value that cannot be completely converted;

(2) not redeem the gaming ticket and return the gaming ticket to the patron; or

(3) allow for the additional accumulation of credits on a meter that displays the value in dollars and cents.

(h) Each facility manager that utilizes a system or an EGM that does not print a test gaming ticket that is visually distinguishable from a redeemable gaming ticket shall adopt internal controls for all of the following:

(1) The issuance of test currency from the cage; and

(2) the return and reconciliation of the test currency and any gaming tickets printed during the testing process.

(i) Except as provided in subsection (m), each gaming ticket shall be redeemed by a patron for cash, EGM credits, or a check issued by the facility manager in the amount of the gaming ticket redeemed. A facility manager shall not permit redemption of a gaming ticket if the facility manager knows or has reason to know that the ticket meets any of the following conditions:

(1) Is different from the sample of the gaming ticket approved by the commission;

(2) was previously redeemed; or

(3) was printed as a test gaming ticket.

(j) Any facility manager may effectuate redemption requests submitted by mail. Gaming tickets redeemed by mail may only be redeemed by a cage supervisor in accordance with internal controls approved by the commission under K.A.R. 112-104-1 that include the following:

(1) Procedures for using the gaming ticket system to verify the validity of the serial number and value of the ticket that, if valid, shall be immediately cancelled electronically by the system; and

(2) procedures for the issuance of a check equal to the value of the ticket.

(k) Gaming tickets redeemed at cashier locations shall be transferred to the facility manager's accounting department on a daily basis. The gaming tickets redeemed by EGMs shall be counted in the count room and forwarded to the manager's accounting department upon the conclusion of the count process. The gaming tickets redeemed at automated gaming ticket redemption machines shall be forwarded to the manager's accounting department upon the conclusion of the cage reconciliation process. The manager's accounting department employees shall perform the following, at a minimum:

(1) On a daily basis, the following:

(A) Compare gaming ticket system report data to any count room system report data available for that gaming day to ensure proper electronic cancellation of the gaming ticket; and

(B) calculate the unredeemed liability for gaming tickets, either manually or by means of the gaming ticket system; and

(2) on a weekly basis, compare appropriate EGM meter readings to the number and value of issued and redeemed gaming tickets per the gaming ticket system. Meter readings obtained through an electronic gaming monitoring system may be utilized to complete this comparison.

(l) Each facility manager shall provide written notice to the commission audit staff of any adjustment to the value of any gaming ticket. The notice shall be made before or concurrent with the adjustment.

(m) Employees of a facility manager who are authorized to receive gratuities under K.A.R. 112-104-27 may redeem gaming tickets given as gratuities only at a cage. Gaming tickets valued at more than $100 shall be redeemed at the cage only with the approval of the supervisor of the cashier conducting the redemption transaction.

(n) Each gaming ticket system shall be configured to alert each facility manager to any malfunction in accordance with article 110. Following a malfunction of a system, the facility manager shall notify the commission within 24 hours of the malfunction and shall not utilize the system until the malfunction has been eliminated. A facility manager may be permitted by the executive director to utilize the system before the system is restored, for a period not to exceed 72 hours, if all of the following conditions are met:

(1) The malfunction is limited to a single storage media device, including a hard disk drive.

(2) The system contains a backup storage media device not utilized in the normal operation of the system. The backup device shall automatically replace the malfunctioning device and permit a complete recovery of all information in the event of an additional malfunction.

(3) Continued use of the malfunctioning system would not inhibit the ability to perform a complete recovery of all information and would not otherwise harm or affect the normal operation of the system.

(o) Other than a modification to a gaming ticket system that is required on an emergency basis to prevent cheating or malfunction and is approved by the executive director under K.A.R. 112-107-3(m), a modification to a gaming ticket system shall not be installed without being tested and approved under K.A.R. 112-107-3.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-19 Coupons

(a) Any facility manager may utilize coupons and a coupon system that has been tested and approved by the commission under K.A.R. 112-107-3.

(b) The design specifications for the coupon shall meet the requirements of article 110.

(d) Each facility manager shall establish a system of internal controls for the issuance and redemption of coupons before issuing any coupon. The internal controls shall be submitted to and approved by the commission under K.A.R. 112-104-1. The system of internal controls shall include the following requirements:

(1) The package containing the coupons shall be opened and examined by at least two members of the accounting department. Each deviation between the invoice and control listing accompanying the coupons, the purchase or requisition order, and the actual coupons received shall be reported to the controller or to a higher authority in a direct reporting line and to the director of internal audit.

(2) Upon examination of the coupons, the facility manager shall cause to be recorded in a coupon control ledger the type and quantity of coupons received, the date of the receipt, the beginning serial number, the ending serial number, the new quantity of unissued coupons on hand, the purchase order or requisition number, any deviations between the number of coupons ordered and the number received, and the signature of any individual who examined the coupons.

(3) All unissued coupons shall be stored in the cage, controlled by a cage department supervisor.

(4) A representative from the internal audit department shall prepare a monthly inventory of unissued coupons. Any deviations between the coupon inventory and the coupon control ledger shall be reported to the controller and the director of internal audit.

(5) A representative of the facility manager shall estimate the number of coupons needed by shift each day. An accounting department employee shall obtain the quantity of coupons to be issued. If a date indicating when the coupon becomes invalid is not preprinted on the coupon, the accounting department employee shall affix a stamp indicating the date the coupon becomes invalid. The following, at a minimum, shall be recorded in the coupon control ledger:

(A) The date the coupons were issued;

(B) the type of coupons issued;

(D) the ending serial number of the coupons issued;

(E) the quantity issued and the quantity remaining; and

(F) the signatures of the accounting department employee issuing the coupons and any other department's employee receiving the coupons.

(6) The facility manager shall require unused coupons obtained from the accounting department employee to be stored in a locked cabinet until the coupons are distributed to patrons. All coupons remaining unused at the end of a shift shall be either returned to the cage department for receipt and redistribution or kept for use by the following shift if accountability between shifts is maintained. All expired coupons shall be returned to the cage department on a daily basis. Any coupons that are not used by the expiration date indicated on the coupons shall be voided when returned to the cage department.

(7)Documentation shall be prepared by a representative of the facility manager for the distribution of coupons to patrons. The documentation shall include the following information, at a minimum:

(A) The date and time or the shift of preparation;

(B) the type of coupons used;

(D) the ending serial number of the coupons used;

(E) the total number of coupons used;

(F) the total number of coupons remaining for use by the next shift or returned to the accounting department; and

(G) the signatures of the facility manager's representatives who distributed the coupons.

(8)The coupons shall be redeemed in the following manner:

(A) Coupons redeemable for cash or tokens shall be redeemed only by change persons or at cashiers' booths, the cage, or at any other location within the gaming facility approved by the commission. A change person, booth cashier, or general cage cashier shall accept the coupons in exchange for the stated amount of cash or tokens. Coupons accepted for redemption shall be cancelled by those authorized to accept coupons. Cancellation of coupons shall be done in a manner that cancels the coupon number and shall permit subsequent identification of the individual who accepted and cancelled the coupon. Redeemed coupons shall be maintained and shall be submitted to the main bank not less frequently than at the conclusion of each day.

(B) Coupons redeemable for wagers shall be accepted only in exchange for the wagers stated on the coupons. Cancellation of coupons shall be done in a manner that permits subsequent identification of the individual who accepted and cancelled the coupon. Redeemed coupons shall be maintained and shall be submitted to the main bank not less frequently than at the conclusion of each gaming day.

(i) At a gaming table and only by a dealer or first-level supervisor who supervises the game, who shall accept the coupon in exchange for the stated amount of gaming chips and shall deposit the coupon into the drop box upon acceptance; or

(ii) by a chip person, who shall accept the coupon only from a patron seated at a poker table at which a game is in progress in exchange for the stated amount of gaming chips and shall cancel the coupon upon acceptance. The coupon shall be cancelled in a manner that permits subsequent identification of the individual who accepted and cancelled the coupon. The cancelled coupons shall be exchanged with the main bank at the conclusion of the chip person's shift, at a minimum.

(D) A match play coupon shall be redeemed only at a gaming table that offers an authorized game in which patrons wager only against the house. The coupon shall be redeemed only by a dealer and only if accompanied by the proper amount of gaming chips required by the coupon. The dealer shall accept the coupon as part of the patron's wager and deposit the coupon into the drop box after the wager is won or lost.

(9)Documentation on unused coupons, voided coupons, and redeemed coupons maintained shall be forwarded on a daily basis to the accounting department, which shall perform the following regarding the coupons:

(A) Review for the propriety of signatures on documentation and for proper cancellation of coupons;

(B) examine for proper calculation, summarization, and recording on documentation, including the master game report;

(C) reconcile by the total number of coupons given to representatives of the department making distribution to patrons, returned for reissuance, distributed to patrons, voided, and redeemed;

(D) record; and

(E) maintain and control until destruction of the coupons is approved by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-20 EGM computer systems

(a) All components of a facility manager's production EGM computer system shall be located within the gaming facility. As used in this regulation, "production EGM computer system" shall mean the facility manager's primary EGM computer system comprised of a collection of hardware and software used to process or monitor EGM activity in real time. A production EGM computer system shall include any segregated testing component.

(b) With the written approval of the executive director, a facility manager's back-up EGM computer system, or any part of it, may be located in a secure and remote computer that is under the custody and control of an affiliate, intermediary, subsidiary, or holding company approved by the commission, referred to as a "host entity." A backup EGM computer system may consist of either of the following:

(1) A mirrored backup system that duplicates the production system by recording all slot-related operations on a real-time basis and is designed to become the production system whenever needed; or

(2) a periodic backup system that consists of regularly scheduled recording of selected data, which may include a complete image of the production system or any portion of the system.

(c) At a minimum, each facility manager requesting authorization to allow a backup EGM computer system to reside outside the gaming facility shall certify that both of the following conditions are met:

(1) Communications between the remote computer and the facility manager's EGM computer system occur using a dedicated and secure communication medium, which may include a leased line.

(2) The remote computer automatically performs the following functions:

(A) Generates daily monitoring logs and real-time alert messages to inform the facility manager and host entity of any system performance problems and hardware problems;

(B) generates daily monitoring logs and real-time alert messages to inform the facility manager of any software errors;

(C) generates daily monitoring logs to inform the facility manager of any unsuccessful attempts by a device, person, or process to obtain computer access;

(D) authenticates the identity of every device, person, and process from which communications are received before granting computer access to the device, person, or process;

(E) ensures that data sent through a transmission is completely and accurately received; and

(F) detects the presence of corrupt or lost data and, as necessary, rejects the transmission.

(d) Unless a remote computer is used exclusively to maintain the EGM computer system of the facility manager, the system shall be partitioned in a manner approved by the executive director and shall include the following:

(1) A partition manager that meets the following requirements:

(A) The partition manager shall be comprised of hardware or software, or both, and perform all partition management tasks for a remote computer, including creating the partitions and allocating system resources to each partition;

(B) the facility manager and host entity shall jointly designate and identify the security officer who will be responsible for administering the partition manager and maintaining access codes to the partition manager. The security officer shall be an employee of the facility manager or host entity and shall be licensed as a level I employee;

(C) special rights and privileges in the partition manager, including the administrator, shall be restricted to the management information systems director or security officer of the facility manager or host entity, who shall be licensed as level I employees;

(D) access to the partition manager shall be limited to employees of the management information systems departments of the facility manager and host entity; and

(E) software-based partition managers contained in a remote computer shall be functionally limited to performing partition management tasks for the remote computer, while partition managers using hardware and software that are not part of a remote computer may be utilized to perform other functions for a remote computer that are approved by the executive director;

(2) a separate partition established for the facility manager's EGM computer system that meets the following requirements:

(A) The partition shall be limited to maintaining the software and data of the facility manager for which the partition has been established;

(B) the security officer of the facility manager for which the partition has been established shall be licensed as a level I employee and shall be responsible for maintenance of access codes to the partition; and

(C)special rights and privileges in the partition, including the administrator, shall be restricted to the security officer and the management information systems director of the facility manager for which the partition has been established; and

(3)separate and distinct operating system software, application software, and computer access controls for the partition manager and each separate partition.

(e)Any facility manager may be permitted by the executive director to establish a partition within a computer that contains its EGM computer system for its affiliate, intermediary, subsidiary, or holding company if all of the following requirements are met:

(1) A partition manager comprised of hardware or software, or both, shall be utilized to perform all partition management tasks, including creating the partitions and allocating system resources to each partition.

(2) A security officer shall be designated within the management information systems department of the facility manager to be responsible for administering the partition manager and maintaining access codes to the partition manager. Special rights and privileges in the partition manager, including the administrator, shall be restricted to the security officer and the management information systems director of the facility manager.

(3) Special rights and privileges in any partition that has been established for the benefit of an affiliate, intermediary, subsidiary, or holding company shall be restricted to the security officer and information technology director of the affiliate, intermediary, subsidiary, or holding company.

(f)Any facility manager may be permitted by the executive director to maintain backup or duplicate copies of the software and data of its EGM computer system, or any portion of the software and data, in removable storage media devices, including magnetic tapes or disks, in a secure location within a gaming facility or other secure location outside the gaming facility as approved by the executive director for the purposes of disaster recovery.

(g)Notwithstanding the provisions of subsection (a), upon the declaration of a disaster affecting the EGM computer system by the chief executive officer of the facility manager and with the prior written approval of the executive director, a facility manager may maintain the software and data of its EGM computer system, or any portion of the software and data, in a computer located in a secure location outside the gaming facility.

(h)Any facility manager may locate software or data not related to an EGM computer system, including software or data related to the sale of food and beverages, in a computer located outside the gaming facility. With the written approval of the executive director, a facility manager may connect the computer to an EGM computer system if all of the following conditions are met:

(1) Logical access to computer software and data of the EGM computer system is appropriately limited.

(2) Communications with all portions of the EGM computer system occur using a dedicated and secure communications medium, which may consist of a leased line.

(3) The facility manager complies with other connection-specific requirements of the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-21 Progressive LFGs

(a) Each progressive LFG shall meet the requirements of article 110.

(b) Each facility manager seeking to utilize a linked LFG shall submit the location and manner of installing any progressive meter display mechanism to the executive director for approval.

(c) An LFG that offers a progressive jackpot shall not be placed on the gaming floor until the executive director has approved the following:

(1) The initial and reset amounts at which the progressive meter or meters will be set;

(2) the proposed system for controlling the keys and applicable logical access controls to the LFGs;

(3) the proposed rate of progression for each progressive jackpot;

(4) the proposed limit for the progressive jackpot, if any; and

(5) the calculated probability of winning each progressive jackpot. The probability shall not exceed 50 million to one.

(d) Progressive meters shall not be turned back to a lesser amount unless one of the following occurs:

(1) The amount indicated has been actually paid to a winning patron.

(2) The progressive jackpot amount won by the patron has been recorded in accordance with a system of internal controls approved under K.A.R. 112-104-1.

(3) The progressive jackpot has, upon executive director approval, been transferred to another progressive LFG or wide-area progressive system in accordance with this article.

(4) The change is necessitated by an LFG or meter malfunction. For progressive jackpots governed by subsection (a), an explanation for the malfunction shall be entered on the progressive electronic gaming summary required by this article, and the commission shall be notified of the resetting in writing.

(e) Once an amount appears on a progressive meter, the probability of hitting the combination that will award the progressive jackpot shall not be decreased unless the progressive jackpot has been won by a patron or the progressive jackpot has been transferred to another progressive LFG or wide-area progressive system or removed in accordance with subsection (g).

(f) If an LFG has a progressive meter with digital limitations on the meter, the facility manager shall set a limit on the progressive jackpot, which shall not exceed the display capability of the progressive meter.

(g) Any facility manager may limit, transfer, or terminate a progressive jackpot offered on a gaming floor only under any of the following:

(1) A facility manager may establish a payout limit for a progressive jackpot if the payout limit is greater than the payout amount that is displayed to the patron on the progressive jackpot meter. The facility manager shall provide notice to the commission of the imposition or modification of a payout limit on a progressive meter concurrent with the setting of the payout limit.

(2) A facility manager may terminate a progressive jackpot concurrent with the winning of the progressive jackpot if its LFG program or progressive controller was configured before the winning of the progressive jackpot to establish a fixed reset amount with no progressive increment.

(3) A facility manager may permanently remove one or more linked LFGs from a gaming floor if both of the following conditions are met:

(A) If the LFG is part of a wide-area progressive system offered at multiple facilities, the facility manager retains at least one linked LFG offering the same progressive jackpot on its gaming floor.

(B) If the progressive jackpot is only offered in a single gaming facility, at least two linked LFGs offering the same progressive jackpot remain on the gaming floor.

(4) Any facility manager may transfer a progressive jackpot amount on a stand-alone LFG or the common progressive jackpot on an entire link of LFGs with a common progressive meter, including a wide-area progressive system, from a gaming floor. The facility manager shall give notice of its intent to transfer the progressive jackpot to the commission at least 30 days before the anticipated transfer and shall conspicuously display the facility manager's intent to transfer the progressive jackpot on the front of each LFG for at least 30 days. To be eligible for transfer, the progressive jackpot shall meet the following conditions:

(A) Be transferred in its entirety; and

(B) be transferred to one of the following:

(i) The progressive meter for an LFG or wide-area progressive system with the same or greater probability of winning the progressive jackpot, the same or lower wager requirement to be eligible to win the progressive jackpot, and the same type of progressive jackpot. However, if no other LFG or wide-area progressive system meets all of these qualifications, a transfer of the jackpot to the progressive meter of the most similar LFG or widearea progressive system available may be authorized by the executive director; or

(ii) the progressive meters of two separate LFGs or wide-area progressive systems if each LFG or wide-area progressive system to which the jackpot is transferred individually satisfies the requirements of paragraph (g)(4)(B)(i).

(5) Any facility manager may immediately and permanently remove a progressive jackpot on a stand-alone progressive LFG, the common progressive jackpot on an entire link of LFGs with a common progressive meter, or an entire widearea progressive system from a gaming floor if notice of intent to remove the progressive jackpot meets the following requirements:

(A) Is conspicuously displayed on the front of each LFG for at least 30 days; and

(B) is provided in writing to the commission at least 30 days before the removal of the progressive jackpot.

(h) The amount indicated on the progressive meter or meters and coin-in meter on each LFG governed by subsection (a) shall be recorded by the facility manager's accounting department or LFG department on a progressive electronic gaming summary report at least once every seven calendar days. Each report shall be signed by the preparer. If not prepared by the accounting department, the progressive electronic gaming summary report shall be forwarded to the accounting department by the end of the gaming day on which it is prepared. An employee of the accounting department shall be responsible for calculating the correct amount that should appear on a progressive meter. If an adjustment to the progressive meters is necessary, the adjustment shall be made by a member of the LFG department authorized by the progressive gaming supplier to make progressive meter adjustments as follows:

(1) Supporting documentation shall be maintained to explain any addition or reduction in the registered amount on the progressive meter. The documentation shall include the date, the asset number of the LFG, the amount of the adjustment, and the signatures of the accounting department member requesting the adjustment and the LFG department member making the adjustment; and

(2) the adjustment shall be effectuated within 48 hours of the meter reading.

(i) Except as otherwise authorized by this regulation, each LFG offering a progressive jackpot that is removed from the gaming floor shall be returned to or replaced on the gaming floor within five gaming days. The amount on the progressive meter or meters on the returned or replacement LFG shall not be less than the amount on the progressive meter or meters at the time of removal. If an LFG offering a progressive jackpot is not returned or replaced, any progressive meter amount at the time of removal shall, within five days of the LFG's removal, be added to an LFG offering a progressive jackpot approved by the executive director. The LFG shall offer the same or greater probability of winning the progressive jackpot and shall require the same or lower denomination of currency to play that was in use on the LFG that was removed. This subsection shall not apply to the temporary removal by a facility manager, for a period not to exceed 30 days, of all linked LFGs that are part of a particular wide-area progressive system if the progressive jackpot offered by the temporarily removed LFGs remains available on LFGs that are part of the same wide-area progressive system in another gaming facility.

(j) If an LFG is located adjacent to an LFG offering a progressive jackpot, the facility manager shall conspicuously display on the LFG a notice advising patrons that the LFG is not participating in the progressive jackpot of the adjacent LFG.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2009 Supp. 74-8772; implementing K.S.A. 2009 Supp. 74-8750 and 74-8772; effective April 24, 2009; amended April 1, 2011.)

Kan. Admin. Regs. § 112-107-22 Wide-area progressive systems

(a) Two or more facility managers may operate linked progressive LFGs that are interconnected between two or more participating gaming facilities, with the prior written approval of the commission and the Kansas lottery as required under subsection (c). The LFGs participating in the link shall be collectively referred to as a wide-area progressive system.

(b) Each wide-area progressive system shall at all times be installed and operated in accordance with relevant requirements of the act, this article, and article 110.

(c) Each wide-area progressive system shall be operated and administered by participating facility managers in accordance with the terms and conditions of a written agreement executed by the participating facility managers. The agreement shall be referred to as an electronic gaming system agreement. Each electronic gaming system agreement shall be submitted in writing and approved by the commission and the Kansas lottery before implementation and shall meet the requirements of the act, this article, and article 110.

(d) Any facility manager participating in an electronic gaming system agreement may delegate, in whole or in part, the management and administration of a wide-area progressive system to a gaming supplier if the electronic gaming system agreement is executed by the gaming supplier and the terms of the agreement are approved by the commission and the Kansas lottery. The persons designated in an electronic gaming system agreement as being responsible for the management and administration of a wide-area progressive system shall be referred to as the wide-area progressive system operator.

(e) An agreement between a gaming supplier and a facility manager under which a gaming supplier sells, leases, or services a wide-area progressive system shall not constitute an electronic gaming service agreement, unless the agreement also covers the management and administration of the wide-area progressive system.

(f) Each electronic gaming system agreement providing for the management and administration of a wide-area progressive system shall identify and describe with specificity the duties, responsibilities, and authority of each participating facility manager and each electronic gaming system operator, including the following:

(1) Details with regard to the terms of compensation for the electronic gaming system operator. The agreement shall address to what extent, if any, the electronic gaming system operator is receiving compensation based, directly or indirectly, on an interest, percentage, or share of a facility manager's revenue, profits, or earnings from the management of the wide-area progressive system;

(2) responsibility for the funding and payment of all jackpots and fees associated with the management of the wide-area progressive system;

(3) control and operation of the computer monitoring room required under subsection (l);

(4) a description of the process by which significant decisions with regard to the management of the wide-area progressive system are approved and implemented by the participating facility managers and electronic gaming system operator;

(5) when applicable, terms satisfactory to the commission with regard to apportionment of responsibility for establishing and servicing any trust agreement associated with any annuity jackpot offered by the wide-area progressive system;

(6) responsibility for generating, filing, and maintaining the records and reports required under the act, this part, and article 110; and

(7) any other relevant requirements of the commission, including those required to comply with the technical standards on wide-area progressive systems adopted by the commission under article 110.

(g) An electronic gaming system agreement submitted to the commission for approval shall be accompanied by a proposed system of internal controls addressing the following:

(1) Transactions directly or indirectly relating to the payment of progressive jackpots, including the establishment, adjustment, transfer, or removal of a progressive jackpot amount and the payment of any associated fees; and

(2) the name, employer, position, and gaming license status of any person involved in the operation and control of the wide-area progressive system.

(h) The information identified in paragraph (g)(2) shall be reviewed by the executive director to determine, based on an analysis of specific duties and responsibilities, which persons shall be licensed. The electronic gaming system manager shall be advised of the executive director's findings. Each participating facility manager and any participating gaming supplier shall comply with the commission's licensing instructions.

(i) An electronic gaming system manager shall not commence operation and administration of a wide-area progressive system pursuant to the terms of an electronic gaming system agreement until the agreement and the internal controls required under subsection (g) have been approved in writing by the commission and any licensing requirements under subsection (h) have been met.

(j) If an electronic gaming system agreement involves payment to a gaming supplier functioning as an electronic gaming system operator, of an interest, percentage, or share of a facility manager's revenue, profits, or earnings from the operation of a wide-area progressive system, the electronic gaming system agreement may be approved by the commission only if it determines that the total amounts paid to the gaming supplier under the terms of the agreement are commercially reasonable for the managerial and administrative services provided. Nothing in this regulation shall limit the commission's consideration of the electronic gaming system agreement to its revenue-sharing provisions.

(k) Each wide-area progressive system shall be controlled from a computer monitoring room. The computer monitoring room shall meet the following requirements:

(1) Be under the sole possession and control of employees of the wide-area progressive system manager designated in the electronic gaming system agreement for that system. The employees of the wide-area progressive system manager may be required to obtain a license or permit if the executive director determines, after a review of the work being performed, that the employees require a license or permit for the protection of the integrity of gaming;

(2) have its monitoring equipment subjected to surveillance coverage either by the surveillance system of a facility manager participating in the electronic gaming system agreement or by a dedicated surveillance system maintained by the wide-area progressive system manager. The surveillance plan shall be approved by the executive director;

(3) be accessible only through a locked door. The door shall be alarmed in a manner that audibly signals the surveillance monitoring room for the surveillance system elected under paragraph (l)(2); and

(4) have a computer monitoring room entry log. The log shall meet the following requirements:

(A) Be kept in the computer monitoring room;

(B) be maintained in a book with bound, numbered pages that cannot be readily removed or an electronic log approved by the executive director; and

(C) be signed by each person entering the computer monitoring room who is not an employee of the wide-area progressive system manager employed in the computer monitoring room on that person's assigned shift. Each entry shall contain the following information:

(i) The date and time of entering and exiting the room;

(ii) the name, department, or license number of the person entering and exiting the room and of the person authorizing the entry; and

(iii) the reason for entering the computer monitoring room.

(l) In evaluating a proposed location for a computer monitoring room, the following factors may be considered by the executive director:

(1) The level of physical and system security offered by the proposed location; and

(2) the accessibility of the location to the commission's audit, law enforcement, and technical staff.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2009 Supp. 74-8772; implementing K.S.A. 2009 Supp. 74-8750 and 74-8772; effective April 24, 2009; amended April 1, 2011.)

Kan. Admin. Regs. § 112-107-23 Electronic gaming monitoring systems

(a) Any facility manager may utilize an electronic gaming monitoring system that has an interface between it, EGMs, and related systems if the electronic gaming monitoring system has been tested and approved by the commission under K.A.R. 112-107-3.

(b) Each electronic gaming monitoring system shall meet the requirements of the act, this article, and article 110.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-24 Casino management systems

(a) Any facility manager may utilize a casino management system that has an interface between it, EGMs, and related systems if the casino management system has been tested and approved by the commission under K.A.R. 112-107-3.

(b) Each casino management system shall meet the requirements of the act, this article, and article 110.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-25 Player tracking systems

(a) Any facility manager may utilize a player tracking system that has an interface between it, EGMs, and related systems if the player tracking system has been tested and approved by the commission under K.A.R. 112-107-3.

(b) Each player tracking system shall meet the requirements of the act, this article, and article 110.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-26 External bonusing systems

(a) Any facility manager may utilize an external bonusing system that has been tested and approved by the commission under K.A.R. 112-107-3.

(b) The combination of the EGM theoretical payout percentage plus the bonus awards generated by an external bonusing system shall not equal or exceed 100% of the theoretical payout for an EGM on which the external bonus award is available.

(c) Each EGM shall meet the minimum theoretical payout percentage required under this article without the contribution of any external bonus award available on the EGM.

(d) Each external bonusing system shall meet the requirements of the act, this article, and article 110.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-27 Cashless funds transfer systems

(a) Any facility manager may utilize a cashless funds transfer system that has been tested and approved by the commission under K.A.R. 112-107-3.

(b) Each cashless funds transfer system shall meet the requirements of the act, this article, and article 110.

(c) Before utilizing a cashless funds transfer system, each facility manager shall establish a system of internal controls for the cashless funds transfer system. The internal controls shall be submitted to and approved by the commission under K.A.R. 112-104-1. The internal control procedures submitted by the facility manager shall address the integrity, security, and control of the facility manager's cashless funds transfer system shall include the following:

(1) An overview of the system design;

(2) system access controls and restrictions;

(3) override policies and restrictions;

(4) backup and recovery procedures;

(5) logical and physical access controls and restrictions;

(6) network security; and

(7) procedures for handling customer disputes.

(d) The transfer of electronic credits to an EGM under this regulation shall be initiated only by a patron using an access control. Access controls shall require the use of a unique access code for each patron. The access code shall be selected by and available to only the patron.

(e) Each facility manager shall maintain a record of every transfer of electronic credits to an EGM under this regulation. Each transfer shall be identified by, at a minimum, the date, the time, and the asset number of the EGM to which the transfer occurred and an identification number assigned to the patron who initiated the transaction. The identification number assigned to a patron for the purposes of this regulation shall be different from the unique access code selected by the patron as part of an access control.

(f) On at least a monthly basis, each facility manager using a cashless funds transfer system shall provide a statement to each patron who has participated in the system that month. The statement shall include, at a minimum, the patron's beginning monthly balance, credits earned, credits transferred to an EGM pursuant to this regulation, and the patron's monthly ending balance. With the written authorization of the patron, the mailing of a monthly statement may be issued electronically to the patron. However, a monthly statement shall not be required for transfers of temporary electronic credits or transfers of electronic credits from a temporary anonymous account.

(g) Each facility manager shall provide notice to the commission in writing of any adjustment to the amount of a credit transferred to an EGM by means of a cashless funds transfer system. The notice shall be submitted on or before the date of the adjustment.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-28 Server-supported electronic gaming systems

(a) Any facility manager may utilize a server-supported electronic gaming system if that system has been tested and approved by the commission under K.A.R. 112-107-3.

(b) Each server-supported electronic gaming system shall meet the requirements of the act, this article, and article 110.

(c) Before utilizing a server-supported electronic gaming system, each facility manager shall establish a system of internal controls for the server-supported electronic gaming system. The internal controls shall be submitted to and approved by the commission under K.A.R. 112-104-1. The internal controls submitted by the facility manager shall address the integrity, security, and control of the server-supported electronic gaming system.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-29 Server-based electronic gaming systems

(a) Any facility manager may utilize a server-based electronic gaming system if that system has been tested and approved by the commission under K.A.R. 112-107-3.

(b) Each server-based electronic gaming system shall meet the requirements of the act, this article, and article 110.

(c) Before utilizing a server-based electronic gaming system, each facility manager shall establish a system of internal controls for the server-based electronic gaming system. The internal controls shall be submitted to and approved by the commission under K.A.R. 112-104-1. The internal controls submitted by the facility manager shall address the integrity, security, and control of its server-based electronic gaming system.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-30 EGMs and associated equipment utilizing alterable storage media

The use of alterable storage media in an EGM or associated equipment shall meet the requirements of the act, this article, and the technical standards on alterable storage media adopted by the commission under article 110.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-31 Remote system access

(a) In emergency situations or as an element of technical support, an employee of a gaming supplier may perform analysis of, or render technical support with regard to, a facility manager's electronic gaming monitoring system, casino management system, player tracking system, external bonusing system, cashless funds transfer system, wide-area progressive system, gaming ticket system, or other approved system from a remote location. All remote access to these systems shall be performed in accordance with the following procedures:

(1) Only an employee of a gaming supplier who separately holds an occupation license under article 103 may remotely access a system sold, leased, or otherwise distributed by that gaming supplier for use at a gaming facility.

(2) The gaming supplier shall establish a unique system account for each employee of a gaming supplier identified by that supplier as potentially required to perform technical support from a remote location. All system access afforded pursuant to this regulation shall meet the following requirements:

(A) Be restricted in a manner that requires the facility manager's management information systems department to receive prior notice from the gaming supplier of its intent to remotely access a designated system;

(B) require the facility manager to take affirmative steps, for each instance of access, to activate the gaming supplier's access privileges; and

(C) be designed to appropriately limit the ability of any person authorized under this regulation to deliberately or inadvertently interfere with the normal operation of the system or its data.

(3) A separate log shall be maintained by both the gaming supplier and the facility manager's management information systems department. Each log shall contain, at a minimum, the following information:

(A) The system accessed, including manufacturer, and version number;

(B) the type of connection;

(D) the name and license number of the employee in the management information systems department activating the gaming supplier's access to the system;

(E) the date, time, and duration of the connection;

(F) the reason for the remote access, including a description of the symptoms or malfunction prompting the need for remote access to the system; and

(G) any action taken or further action required.

(4) All communications between the gaming supplier and any of the systems identified in subsection (a) shall occur using a dedicated and secure communication facility which may consist of a leased line approved in writing by the executive director.

(b) Each modification of, or remedial action taken with respect to, an approved system shall be processed and approved by the commission either in accordance with the emergency modification provisions of K.A.R. 112-107-3(l) or as a standard modification submitted under K.A.R. 112-107-3(h).

(c) If an employee of a gaming supplier is no longer employed by, or authorized by, that manufacturer to remotely access a system pursuant to this regulation, the gaming supplier shall notify, by the end of that business day, the commission and each facility manager that has established a unique system account for that employee of the change in authorization and shall verify with each facility manager that any access privileges previously granted have been revoked.

(d) All remote system access shall be performed in accordance with article 110.

(e) Each facility manager authorizing access to a system by a gaming supplier under this regulation shall be responsible for implementing a system of access protocols and other controls over the physical integrity of that system and the remote access process sufficient to ensure appropriately limited access to software and the systemwide reliability of data.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-32 EGM destruction procedures

(a) Each facility manager shall establish a comprehensive system of internal controls for the EGM destruction procedures required by this regulation. The internal controls shall be submitted to and approved by the commission under K.A.R. 112-104-1.

(b) The facility manager shall submit a request in writing with an attached approval letter from the Kansas lottery requesting the destruction of an EGM. The notice shall contain the asset number of each EGM that is requested to be destroyed and shall be submitted at least 14 days in advance of the requested destruction date.

(c) When destroying an EGM, the critical program storage media (CPSM) and component parts shall be removed from the EGM before destruction of the cabinet. For the purposes of this regulation, a component part shall mean any subassembly or essential part as described in K.S.A. 21-4302(d)(1)(C), and amendments thereto, and shall include any equipment necessary for any of the following operations by the EGM:

(1) The acceptance of currency, tickets, coupons, or tokens;

(2) the discharge of currency, tickets, coupons, or tokens;

(3) the determination or display of the outcome of the game;

(4) recordkeeping; and

(5) security.

(d) The CPSM and component parts may be destroyed or placed into the controlled inventory of the EGM department. All destroyed CPSM and component parts shall be destroyed separately from the EGM cabinets.

(e) The destruction of any EGMs, CPSM, and component parts shall be witnessed by an agent of the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2008 Supp. 74-8772; implementing K.S.A. 2008 Supp. 74-8750 and 74-8772; effective April 24, 2009.)

Kan. Admin. Regs. § 112-107-34 Waivers

(a) The requirements in this article or article 110 for an EGM may be waived by the commission upon the commission's determination that the EGM, associated equipment, or modification as submitted by the facility manager meets the operational integrity requirements of the act, this article, and article 110.

(b) Any gaming supplier may submit a written request to the commission for a waiver for one or more of the requirements in this article or article 110. The request shall include supporting documentation demonstrating how the EGM, associated equipment, or modification for which the waiver has been requested meets the operational integrity requirements of the act, this article, and article 110.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective April 24, 2009.)

Article 108 Table Games

Kan. Admin. Regs. § 112-108-1 Definitions

The following words and terms, when used in this article, shall have the following meanings unless the context clearly indicates otherwise:

(a) "Bad beat" means a jackpot prize that is paid in poker when a sufficiently strong hand is shown face down and loses to an even stronger hand held by another player.

(b) "Boxperson" means an individual who supervises dice games, including craps, guards the money and chips at a long table, issues chips, and settles conflicts about the plays.

(c) "Burning cards" means a process, performed by the dealer, in which one or more cards are removed from the top of the deck of cards and placed in the discard pile, after the cards have been cut.

(d) "Coloring up" means exchanging lower denomination chips for higher denomination chips.

(e) "Counterfeit chip" means any chip or chiplike objects that have not been approved pursuant to this article, including objects referred to as "slugs," but not coins of the United States or other nations.

(f) "Day" means calendar day regardless of whether the day falls on a weekend or holiday.

(g) "Non-value chips" means chips without a value impressed, engraved, or imprinted on them.

(h) "Pai gow" means a double-hand poker variation based on the Chinese dominos game of Pai Gow.

(i) "Patron" means any person present at a gaming facility who is not employed by the facility manager, the Kansas lottery, or the commission and is not on the premises as a vendor of the facility manager.

(j) "Pit area" means the immediate areas within a gaming facility where one or more table games are open for play.

(k) "Promotional coupon" means any instrument offering any person something of value issued by a facility manager to promote the lottery gaming facility or ancillary facility or for use in or related to certified gambling games at a facility manager's gaming establishment.

(l) "Promotional game" means a drawing, event, contest, or game in which patrons can, without giving consideration, participate or compete for the chance to win a prize or prizes of different values.

(m) "Promotional giveaway" means a promotional gift or item given by a facility manager to any person meeting the facility manager's promotional criteria, for which the person provides no consideration. No chance or skill is involved in the awarding of the promotional gift or item, and all persons meeting the facility manager's promotional criteria receive the same promotional gift or item.

(n) "Rake" means a commission charged by the house for maintaining or dealing a game, including poker.

(o) "Special hand" means a secondary jackpot paid on a poker hand that does not qualify for the bad beat.

(p) "Table game" means any lottery facility game other than a game played on an electronic gaming machine.

(q) "Table game mechanism" means a component that is critical to the operation of a table game, including a roulette wheel and an electronic add-on for the placement of wagers.

(r) "Value chips" means chips with a value impressed, engraved, or imprinted on the chips.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-2 Consistency with the Kansas lottery's rules

Each facility manager shall conduct each lottery facility game in a manner consistent with the rules of the game approved by the Kansas lottery.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-3 Participation in table games by a certificate holder or a licensee

(a) Except as provided in K.A.R. 112-108-37, no facility manager or any director, officer, key person, or any other agent of any facility manager shall play or be permitted to play any table game in the gaming facility where the person is licensed or employed.

(b) No holder of a gaming supplier certificate or any director, officer, key person, or any other agent of a gaming supplier shall play or be permitted to play at a table game in a gaming facility to which the gaming supplier provides its goods or services.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-4 Testing and approval of table games

(a) Each table game, the rules of the game, and the associated equipment to be used in a gaming facility shall be submitted for approval in accordance with the act and these regulations.

(b) Each table game, the rules of the game, and associated equipment shall be evaluated by the commission for the following:

(1) Overall operational integrity and compliance with the act and these regulations;

(2) mathematical accuracy of the payout tables; and

(3) compatibility with any specifications approved by the Kansas lottery.

(d) An independent testing laboratory may be used by the commission to evaluate the table game and associated equipment.

(e) A trial period may be required by the commission to assess the functionality of the table game, rules of the game, and associated equipment in a live gaming environment. The conduct of the trial period shall be subject to compliance by the facility manager with any conditions that may be required by the commission.

(f) A facility manager shall not install a table game or associated equipment unless the table game, rules of the game, and associated equipment have been approved by the commission and issued a certificate authorizing the use of the game, rules, or associated equipment at the gaming facility. The certificate shall be prominently displayed on the approved device. A facility manager shall not modify, alter, or tamper with an approved table game, rules of the game, or associated equipment or with a commission-issued certificate.

(g) The facility manager shall notify the executive director in writing and receive written approval at least five days before moving or disposing of a table game or associated equipment that has been issued a certificate. Before the removal of the table game or associated equipment from the gaming facility, the certificate shall be removed by a commission agent. A table game or the associated equipment installed in a gaming facility in contravention of this requirement shall be subject to seizure by any Kansas law enforcement officer.

(h) Any modification to a table game or the associated equipment may be authorized by the executive director on an emergency basis to prevent cheating or malfunction. The emergency request shall be documented by the facility manager. The request shall specify the name and employer of any persons to be involved in the installation of the modification and the manner in which the installation is to be effected. Within 15 days of receipt of any authorization to install an emergency modification, the facility manager shall submit the modification for full evaluation and approval in accordance with this article.

(i) Each facility manager shall notify the commission's security staff of any known or suspected defect or malfunction in any table game or associated equipment installed in the gaming facility no later than four hours after detection. The facility manager shall comply with any instructions from the commission staff for the use of the table game or associated equipment.

(j) Each facility manager shall include table games and associated equipment on the facility manager's master list of approved gaming machines as required by K.A.R. 112-107-10.

(k) All table games and associated equipment shall be noted on the gaming floor plan under K.A.R. 112-107-7.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2008 Supp. 74-8772; implementing K.S.A. 2008 Supp. 74-8750 and 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-5 Compliance with law; prohibited activities

(a) Each facility manager shall comply with all federal and state regulations and requirements for the withholding of taxes from winnings and the filing of currency transaction reports (CTR).

(b) Each facility manager shall be prohibited from the following activities:

(1) Permitting persons who are visibly intoxicated to participate in table games;

(2) permitting any table game or associated table game equipment that could have been marked, tampered with, or otherwise placed in a condition or operated in a manner that might affect the normal game play and its payouts;

(3) permitting cheating, if the facility manager was aware of the cheating;

(4) permitting any cheating device to remain in or upon any gaming facility, or conducting, carrying on, operating, or dealing any cheating or thieving game or device on the premises; and

(5) permitting any gambling device that tends to alter the normal random selection of criteria that determines the results of the game or deceives the public in any way to remain in or upon any gaming facility, if the facility manager was aware of the device.

(d) A facility manager shall not allow a patron to possess any calculator, computer, or other electronic, electrical, or mechanical device at any table game that meets any of the following conditions:

(1) Assists in projecting the outcome of a game;

(2) keeps track of cards that have been dealt;

(3) keeps track of changing probabilities; or

(4) keeps track of playing strategies being utilized, except as permitted by the commission.

(e) A person who, without the assistance of an other person or without the use of a physical aid or device of any kind, uses the person's own ability to keep track of the value of cards played and uses predictions formed as a result of the tracking information in their playing and betting strategy shall not be considered to be in violation of these regulations. Any facility manager may make its own determination of whether the behavior is disruptive to gaming.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-6 Table game internal controls

(a) Each facility manager shall establish a system of internal controls for the security and operation of table games as provided under this article. The internal controls for table games shall be submitted to the commission for approval under K.A.R. 112-104-1 and shall address the following:

(1) Object of the game and method of play, including what constitutes win, loss, or tie bets;

(2) physical characteristics of the game, gaming equipment, and gaming table;

(3) procedures for opening and closing of the gaming table;

(4) wagers and payout odds for each type of available wager, including the following:

(A) A description of the permissible wagers and payout odds;

(B) any minimum or maximum wagers, which shall be posted on a sign at each table; and

(C) any maximum table payouts, if any, which shall be posted at each table and shall not be less than the maximum bet times the maximum odds;

(5) for each game that uses any of the following, the applicable inspection procedures:

(A) Cards;

(B) dice;

(D) manual and electronic devices used to operate, display the outcome, or monitor live games;

(6) for each game that uses cards, a description of the following:

(A) Shuffling procedures;

(B) card cutting procedures;

(D) burning cards;

(7) procedures for the collection of bets and payouts including requirements for internal revenue service purposes;

(8) procedures for handling suspected cheating or irregularities and immediate notification of commission agent on duty;

(9) procedures for dealers being relieved;

(10) procedures for immediate notification to the commission agent on duty when equipment is defective or malfunctioning; and

(11) procedures to describe irregularities of the game, including dice off the table and soiled cards.

(b) Each facility manager that provides table games shall include a table game department in the internal controls. That department shall be supervised by a person located at the gaming facility who functions as the table game director. The department shall be mandatory and shall cooperate with yet perform independently of other mandatory departments listed under K.A.R. 112-104-2.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-7 Publication of rules and payoff schedules for all permitted games

Each facility manager shall provide, free of charge and within one hour, a copy of the rules and accurate payoff schedules for any table game if requested by a patron. Each payoff schedule shall accurately state actual payoffs applicable to a particular game or device. No payoff schedule shall be worded in a manner that misleads the public.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-8 Payout for progressive table games

(a) Each table game that includes progressive jackpots shall have a progressive meter visible to patrons. If any part of the distribution to the progressive jackpots is being used to fund a secondary jackpot, visible signage informing players of this supplemental distribution shall be placed in the immediate area of the table. The existence of progressive jackpots and the distributions to those jackpots shall be set forth in the "rules of the game" within a facility manager's internal controls for each game having a progressive jackpot. Each table game not meeting this distribution requirement shall be deemed an unauthorized gambling game.

(b) At least five days before the cancellation of any table game that includes a progressive jackpot that has not been awarded, the facility manager shall submit a plan for disbursement of that jackpot for approval by the executive director.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-9 Authorized table gaming suppliers

Chips, dice, and playing cards for use in table games may be purchased only from a permitted or certified gaming supplier.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-10 Chip specifications

(a) Each value chip issued by a facility manager shall have the following characteristics:

(1) Be round;

(2) have clearly and permanently impressed, engraved, or imprinted on it the name of the facility manager and the specific value of the chip;

(3) have, at least on one side of the chip, the name of the city or other locality and the state in which the gaming facility is located and either the manufacturer's name or a distinctive logo or other mark identifying the manufacturer;

(4) have its center portion impressed, engraved, or imprinted with the value of the chip and the name of the facility manager that is issuing the chip;

(5) utilize a different center shape for each denomination;

(6) be designed so that the specific denomination of a chip can be determined on surveillance camera monitors when placed in a stack of chips of other denominations; and

(7) be designed, manufactured, and constructed so as to prevent the counterfeiting of value chips.

(b) Unless otherwise authorized by the executive director, value chips may be issued by facility managers in denominations of $1, $2.50, $5, $20, $25, $100, $500, $1,000, $5,000, and $10,000.

Each facility manager shall have the discretion to determine the denominations to be utilized at its gaming facility and the amount of each denomination necessary for the conduct of gaming operations.

(c) Unless otherwise authorized by the executive director, value chips worth less than $500 shall have a diameter of 39 millimeters, and value chips worth equal to or greater than $500 shall have a diameter of 43 millimeters.

(d) Each denomination of value chip shall have a different primary color from every other denomination of value chip. Unless otherwise approved by the executive director, value chips shall have the colors specified in this subsection when the chips are viewed both in daylight and under incandescent light. In conjunction with these primary colors, each facility manager shall utilize contrasting secondary colors for the edge spots on each denomination of value chip. Unless otherwise approved by the executive director, no facility manager shall use a secondary color on a specific denomination of chip identical to the secondary color used by another facility manager in Kansas on that same denomination of value chip. The primary color to be utilized by each facility manager for each denomination of value chip shall be as follows:

(1) For $1, white;

(2) for $2.50, pink;

(3) for $5, red;

(4) for $20, yellow;

(5) for $25, green;

(6) for $100, black;

(7) for $500, purple;

(8) for $1,000, fire orange;

(9) for $5,000, grey; and

(10) for $10,000, burgundy.

(e)(1) Each non-value chip utilized by a facility manager shall be issued solely for roulette. Each non-value chip at each roulette table shall meet the following conditions:

(A) Have the name of the facility manager issuing it impressed into its center;

(B) contain a design, insert, or symbol differentiating it from the non-value chips being used at every other roulette table in the gaming facility;

(D) be designed, manufactured, and constructed so as to prevent counterfeiting;

(2) Non-value chips issued at a roulette table shall be used only for gaming at that table and shall not be redeemed or exchanged at any other location in the gaming facility. When so presented, the dealer at the issuing table shall exchange these chips for an equivalent amount of value chips.

(f) No facility manager or its employees shall allow any patron to remove non-value chips from the table from which the chips were issued.

(g) No person at a roulette table shall be issued or permitted to game with non-value chips that are identical in color and design to value chips or to non-value chips being used by another person at the same table. When a patron purchases nonvalue chips, a non-value chip of the same color shall be placed in a slot or receptacle attached to the outer rim of the roulette wheel. At that time, a marker denoting the value of a stack of 20 chips of that color shall be placed in the slot or receptacle.

(h) Each facility manager shall have the discretion to permit, limit, or prohibit the use of value chips in gaming at roulette. Each facility manager shall be responsible for keeping an accurate account of the wagers being made at roulette with value chips so that the wagers made by one player are not confused with those made by another player at the table.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-11 Submission of chips for review and approval

(a) Each facility manager shall submit a sample of each denomination of value chips and non-value chips to the executive director for approval. No facility manager shall utilize these chips for gaming purposes until approved in writing by the executive director.

(b) In requesting approval of any chips, a facility manager shall submit to the commission a detailed schematic of its proposed chips and a sample chip. The detailed schematic shall show the front, back, and edge of each denomination of value chip and each non-value chip and the design and wording to be contained on the chip. If the design schematics or chip is approved by the executive director, no value chip or non-value chip shall be issued or utilized unless a sample of each denomination of value chip and each color of non-value chip is also submitted to and approved by the executive director.

(d) No facility manager or other person licensed by the commission shall manufacture for, sell to, distribute to, or use in any gaming facility outside of Kansas any value chips or non-value chips having the same design as that approved for use in Kansas.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2008 Supp. 74-8772; implementing K.S.A. 2008 Supp. 74-8752 and 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-12 Primary, secondary, and reserve sets of gaming chips

Unless otherwise authorized by the executive director, each facility manager shall have a primary set of value chips, a separate secondary set of value chips, a primary set of non-value chips, and a non-value chip reserve, which shall conform to the color and design specifications set forth in K.A.R. 112-108-10. An approved secondary set of value chips and reserve non-value chips shall be placed into active play when the primary set of value chips or non-value chips is removed.

(a) The secondary set of value chips shall have different secondary colors than the primary set and shall be required for all denominations.

(b) Each facility manager shall have a non-value chip reserve for each color utilized in the gaming facility with a design insert or symbol different from those non-value chips comprising the primary set.

(c) The facility manager shall remove the primary set of gaming chips from active play if at least one of the following conditions is met:

(1) A determination is made by the facility manager that the gaming facility is receiving a significant number of counterfeit chips.

(2) Any other impropriety or defect in the utilization of the primary set of chips makes removal of the primary set necessary.

(3) The executive director orders the removal because of security or integrity.

(d) If the primary set of chips is removed from active play, the facility manager shall immediately notify a representative of the commission of the reason for this occurrence.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-13 Exchange of value chips or non-value chips

(a) Chips shall be issued to a person only at the request of that person and shall not be given as change in any other transaction. Chips shall be issued to gaming facility patrons at cashiers' cages or at the live table games. Chips may be redeemed at cashiers' cages.

(b) Chips shall be redeemed only by a facility manager for its patrons and shall not be knowingly redeemed from a source other than a patron. Employees of the facility manager may redeem chips they have received as gratuities as allowed under these regulations.

(c) Each facility manager shall redeem its own chips by cash or by check dated the day of the redemption on an account of the facility manager as requested by the patron, except when the chips were obtained or used unlawfully.

(d) Any facility manager may demand the redemption of its chips from any person in possession of them. That person shall redeem the chips upon presentation of an equivalent amount of cash by the facility manager.

(e) No facility manager shall knowingly accept, exchange, use, or redeem gaming chips issued by another facility manager.

(f) Each facility manager shall cause to be posted and remain posted, in a prominent place on the front of a cashier's cage, a sign that reads as follows: "Gaming chips issued by another facility manager cannot be used, exchanged, or redeemed at this gaming facility."

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-14 Receipt of gaming chips from manufacturer

(a) When chips are received from the manufacturer, the chips shall be opened and checked by at least two employees, one from the table games department and one from the security department of the facility manager. Any deviation between the invoice accompanying the chips and the actual chips received or any defects found in the chips shall be reported to a security agent of the commission. A security agent of the commission shall be notified by both the gaming supplier and the facility manager of the time of delivery of any chips to the facility manager.

(b) After checking the chips received, the facility manager shall report in a chip inventory ledger each denomination of the chips received, the number of each denomination of chips received, the number and description of all non-value chips received, the date of receipt, and the signature of the individuals who checked the chips. Chips shall be divided into the following categories:

(1) Primary chips for current use;

(2) reserve chips that may be placed into play as the need arises; and

(3) secondary chips, both value chips and nonvalue chips, that are held to replace the primary set when needed.

(c) If any of the chips received are to be held in reserve and not utilized either at the table games or at a cashier's cage, the chips shall be stored in a separate, locked compartment either in the vault or in a cashier's cage and shall be recorded in the chip inventory ledger as reserve chips.

(d) All chips received that are part of the facility manager's secondary set of chips shall be recorded in the chip inventory ledger as such and shall be stored in a locked compartment in the gaming facility vault separate from the reserve chips.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-15 Inventory of chips

(a) Chips shall be taken from or returned to either the reserve chip inventory or the secondary set of chips in the presence of at least two individuals, one from the table games department and one from the security department of the facility manager. The denominations, number, and amount of chips taken or returned shall be recorded in the chip inventory ledger, together with the date and signatures of the two individuals carrying out this process.

(b) The facility manager's accounting department shall monthly compute and record the unredeemed liability for each denomination of chips, take an inventory of chips in circulation, and record the result of this inventory in the chip inventory ledger. The accounting department shall take a monthly inventory of reserve chips and secondary chips and record the result of this inventory in the chip inventory ledger. Each individual who inspected and counted the chips shall sign either the inventory ledger or other supporting documentation. The procedures to be utilized to compute the unredeemed liability and to inventory chips in circulation, reserve chips, and secondary chips shall be submitted in the internal controls to the commission for approval. A physical inventory of chips in reserve shall be required annually only if the inventory procedures incorporate a commission-sealed, locked compartment and the seals have not been broken. Seals shall be broken only by a commission agent, with each violation of this requirement reported upon discovery to a commission agent on duty.

(c) During non-gaming hours, all chips in the possession of the facility manager shall be stored in the chip bank, in the vault, or in a locked compartment in a cashier's cage, except that chips may be locked in a transparent compartment on gaming tables if there is adequate security as approved by the commission.

(d) The internal control system shall include procedures for the removal and destruction of damaged chips from the gaming facility inventory.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-16 Destruction of chips

(a) At least 10 days before the anticipated destruction of chips, a facility manager shall notify the commission in writing of the following:

(1) The date on which and the location at which the destruction will be performed;

(2) the denomination of the chips to be destroyed;

(3) the number and amount of value chips to be destroyed;

(4) the description and number of non-value chips to be destroyed; and

(5) a detailed explanation of the method of destruction.

(b) The facility's surveillance staff and a commission agent shall be notified before the commencement of destruction.

(d) Unless otherwise authorized by the executive director, the destruction of chips shall be carried out in the presence of at least two individuals, one from the table games department and the other one from the security department. The following information shall be recorded in the chip inventory ledger:

(1) The denomination, number, and amount of value chips or, in the case of non-value chips, the description and number so destroyed;

(2) the signatures of the individuals carrying out the destruction; and

(3) the date on which destruction took place.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-17 Counterfeit chips

(a) The facility manager shall notify a commission security agent when a counterfeit chip is discovered and shall deliver the counterfeit chip to the commission security agent to investigate criminal prosecution.

(b) Each facility manager shall record the following information regarding counterfeit chips:

(1) The number and denominations, actual and purported, of the coins and counterfeit chips destroyed or otherwise disposed of pursuant to this regulation;

(2) the month during which they were discovered;

(3) the date, place, and method of destruction or other disposition, including, in the case of foreign coin exchanges, the exchange rate and the identity of the bank, exchange company, or other business or person at which or with whom the coins are exchanged; and

(4) the names of the persons carrying out the destruction or other disposition on behalf of the facility manager.

(c) Unless the executive director orders otherwise, facility managers may dispose of coins of the United States or any other nation discovered to have been unlawfully used at their establishments by either of the following:

(1) Including the coins in the coin inventories or, in the case of foreign coins, exchanging the coins for United States currency or coins and including the coins in the currency or coin inventories; or

(2) disposing of them in any other lawful manner.

(d) The facility manager shall maintain each record required by this regulation for at least seven years, unless the executive director approves or requires otherwise.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-18 Tournament chips and tournaments

(a) "Tournament chip" shall mean a chip or chiplike object issued by a facility manager for use in tournaments at the facility manager's gaming facility.

(b) Tournament chips shall be designed, manufactured, approved, and used in accordance with the provisions of this article applicable to chips, except as follows:

(1) Tournament chips shall be of a shape and size and have any other specifications necessary to make the chips distinguishable from other chips used at the gaming facility.

(2) Each side of each tournament chip shall conspicuously bear the inscription "No Cash Value."

(3) Tournament chips shall not be used, and facility managers shall not permit their use, in transactions other than the tournaments for which the chips are issued.

(c) As used in this regulation, entry fees shall be defined as the total amount paid by a person or on a person's behalf for participation in a tournament. A tournament shall mean a contest offered and sponsored by a facility manager in which patrons may be assessed an entry fee or be required to meet some other criteria to compete against one another in a gambling game or series of gambling games in which winning patrons receive a portion or all of the entry fees, if any. These entry fees may be increased with cash or noncash prizes from the facility manager. Facility managers may conduct tournaments if all of the following requirements are met:

(1) The facility manager shall notify the executive director of the planned tournament at least 30 calendar days before the first day of the event.

(2) The facility manager shall not conduct the tournament unless approved by the executive director.

(3) The facility manager shall conduct the tournament in compliance with all applicable rules, regulations, and laws.

(4) The facility manager shall maintain written, dated rules governing the event and the rules shall be immediately available to the public and the commission upon request. Tournament rules shall, at a minimum, include the following:

(A) The date, time, and type of tournament to be held;

(B) the amount of the entry fee, if any;

(D) a description of the tournament structure, including number of rounds, time period, players per table, and criteria for determining winners;

(E) the prize structure, including amounts or percentages, or both, for prize levels; and

(F) procedures for the timely notification of entrants and the commission and the refunding of entry fees in the event of cancellation.

(5) No false or misleading statements, written or oral, shall be made by a facility manager or its employees or agents regarding any aspect of the tournament, and all prizes offered in the tournament shall be awarded according to the facility manager's rules governing the event.

(6) The facility manager's accounting department shall keep a complete record of the rules of the event and all amendments to the rules, including criteria for entry and winning, names of all entrants, all prizes awarded, and prize winners, for at least two years from the last date of the tournament. This record shall be made readily available to the commission upon request.

(7) Entry fees shall accumulate to adjusted gross gaming receipts.

(8) Cash and noncash winnings paid in a tournament shall be deductible from adjusted gross gaming revenue, but any such deduction shall not exceed the total entry fees received for the tournament and noncash winnings shall be deductible only to the dollar value of the amount actually invoiced to and paid by the facility manager.

(9) Upon the completion of the tournament, documentation of entrants' names, names of prize winners and amounts won, and tax-reporting information shall be submitted to the commission.

(10) The facility manager shall designate in its internal control system an employee position acceptable to the commission that shall be responsible for ensuring adherence to the requirements in this regulation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective Jan. 8, 2010; amended April 1, 2011.)

Kan. Admin. Regs. § 112-108-19 Promotional activities

(a) Each facility manager shall establish a system of internal controls for promotional giveaways, conduct of promotional games, and similar activities. The internal controls shall be submitted to the commission under K.A.R. 112-104-1. Each promotion shall meet the following requirements:

(1) No false or misleading statements, written or oral, shall be made by a facility manager or its employees or agents regarding any aspect of any promotional activity.

(2) The promotional activity shall meet the requirements of all applicable laws and regulations and shall not constitute illegal gambling under federal or state law. An affidavit of compliance shall be signed by the legal counsel of the facility manager and be maintained on file for two years from the last day of the event.

(3) The facility manager shall create dated, written rules governing the promotional activity that shall be immediately available to the public and the commission upon request. The facility manager shall maintain the rules of the event and all amendments, including criteria for entry and winning, prizes awarded, and prize winners, for at least two years from the last day of the event.

(4) All prizes offered in the promotional activity shall be awarded according to the facility manager's rules governing the event.

(5) The facility manager's employees shall not be permitted to participate as players in any gambling, including promotional games, at the facility manager's gaming facility, including games for which there is no cost to participate.

(6) The facility manager shall designate in its internal control system an employee position acceptable to the commission that shall be responsible for ensuring adherence to the requirements in this regulation.

(b) Each promotional coupon shall contain the following information preprinted on the coupon:

(1) The name of the gaming facility;

(2) the city or other locality and state where the gaming facility is located;

(3) specific value of any monetary coupon stated in U.S. dollars;

(4) sequential identification numbers, player tracking numbers, or other similar means of unique identification for complete, accurate tracking and accounting purposes;

(5) a specific expiration date or condition;

(6) all conditions required to redeem the coupon; and

(7) a statement that any change or cancellation of the promotion shall be approved by the commission before the change or cancellation.

(c) Documentation of any change or cancellation of a promotional coupon, with the legal counsel's affidavit, shall be maintained on file for two years.

(d) Any facility manager may use mass media to provide promotional coupon offers to prospective patrons; however, these offers shall be redeemed only for a preprinted coupon that contains all of the information required for a promotional coupon in subsection (c).

(e) Each facility manager offering promotional coupons shall track the issuance and redemption of each promotional coupon in accordance with K.A.R. 112-107-19. Documentation of the promotional coupon tracking shall be maintained on file for two years and made available to the commission upon request. The inventory of nonissued promotional coupons shall be maintained in accordance with K.A.R. 112-107-19.

(f) Promotional coupons shall be cancelled when they are redeemed, in a manner that prevents multiple redemptions of the same coupon.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-20 Table game and poker cards; specifications

(a) Unless otherwise documented in the internal controls and approved by the commission, all cards used for table games shall meet all of the following requirements:

(1) Cards shall be in standard decks of 52 cards, with each card identical in size and shape to every other card in the deck or as otherwise documented in the internal controls and approved by the commission.

(2) Each standard deck shall be composed of four suits: diamonds, spades, clubs, and hearts.

(3) Each suit shall consist of 13 cards: ace, king, queen, jack, 10, 9, 8, 7, 6, 5, 4, 3, and 2. The face of the ace, king, queen, jack, and 10 value cards may contain an additional marking, as documented in the internal controls and approved by the commission, that will permit a dealer, before exposing the dealer's hole card at the game of blackjack, to determine the value of that hole card.

(4) The backs of all cards in the deck shall be identical and no card shall contain any marking, symbol, or design that will enable a person to know the identity of any element printed on the face of the card or that will in any way differentiate the back of that card from any other card in the deck.

(5) The backs of all cards in the deck shall be designed so as to diminish as far as possible the ability of any person to place concealed markings on the backs.

(6) The design to be placed on the backs of cards used by facility managers shall contain the name or trade name of the facility manager where the cards are to be used and shall be submitted to the executive director for approval before use of the cards in gaming activity.

(7) Each deck of cards for use in table games as defined in K.A.R. 112-108-1 shall be packaged separately with cellophane, shrink wrap, or another similar material as documented in the internal controls and approved by the commission. The packaging shall have a tamper-resistant security seal and a tear band. Each deck of poker cards shall be packaged in sets of two decks through the use of cellophane, shrink wrap, or another similar material as documented in the internal controls and approved by the commission and have a tamper-resistant security seal and a tear band.

(8) Nothing in this regulation shall prohibit decks of cards with one or more jokers. However, jokers may be used by the facility manager only in the play of any games documented in the internal controls and approved by the commission for that manner of play.

(b) The cards used by a facility manager in any poker room game shall meet the following requirements:

(1) Be visually distinguishable from the cards used by that facility manager to play any table games;

(2) be made of plastic; and

(3) have two decks with visually distinguishable card backings for each set of poker cards. These card backings may be distinguished, without limitation, by different logos, different colors, or different design patterns.

(c) For each table game utilizing cards, the cards shall be dealt from a dealing shoe or shuffling device, except the card games specified in K.A.R. 112-108-41.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-21 Table game cards; receipt, storage, inspections, and removal from use

(a) Each facility manager shall use only plastic cards that have been approved by the commission as specified in K.A.R. 112-108-20.

(b) Each facility manager shall ensure that each card storage area contains an inventory ledger and that the facility manager's employees update the ledger when cards are added or removed from that storage area.

(c) When a deck of table game cards, including poker cards, is received for use in the gaming facility from a licensed gaming supplier, all of the following requirements shall be met:

(1) The decks shall be inspected for proper quantity and any obvious damage by at least two employees, one of whom shall be from the table games department and the other from the security department or accounting department.

(2) The decks shall be recorded in the card inventory ledgers by a member of the security or accounting department and a member of the table games department. If any discrepancies in the invoice or packing list or any defects are found, the discrepancies shall be reported to a commission agent on duty within 24 hours.

(3) The decks shall be placed for storage in a primary or secondary storage area by at least two employees, one of whom shall be from the table games department and the other from the security department or accounting department. The primary card storage area shall be located in a secure place, the location and physical characteristics of which shall be documented in the internal controls and approved by the commission. Secondary storage areas, if needed, shall be used for the storage of surplus decks. Decks maintained in any secondary storage area shall be transferred to the primary card storage area before being distributed to the pit area or poker tables. All secondary storage areas shall be located in secure areas, the location and physical characteristics of which shall be documented in the internal controls and approved by the commission.

(d) Each primary card storage area and each secondary card storage areas shall have two separate locks. The security department shall maintain one key to each storage area, and the table games department shall maintain the other key. No person employed by the table games department other than the pit manager, poker room manager, or the supervisor shall have access to the table games department key for the primary and secondary card storage areas.

(e) Immediately before the commencement of each gaming day and at other times as may be necessary, the pit manager, poker room manager, or the supervisor, in the presence of a security department employee and after notification to surveillance, shall remove the decks of table game cards or poker cards from the primary card storage area needed for that gaming day.

(f) All cards transported to a pit or the poker room shall first be recorded on the card inventory ledger. Both the authorized table games department employee and the security department employee shall sign to verify the information.

(g) Once the cards are removed from the primary card storage area, the pit manager, poker room manager, or the supervisor, in the presence of a security department employee, shall take the decks to the pit area or poker room and distribute the decks to the floor supervisors for distribution to the dealer at each table. The poker room manager, pit manager, or the supervisor shall place extra decks into a single locked compartment of a poker room or pit area stand. All authority shall be limited to the supervisor's or manager's respective area of duty. The poker room supervisor, pit area supervisor, or an employee in a higher position shall have access to the extra decks of cards to be used for that gaming day.

(h) Each movement of decks after delivery to the poker room or pit area shall be by a poker room manager, pit manager, or an employee in a higher position and shall require a security escort after notifying surveillance. The procedures for transporting used decks shall include the following:

(1) A requirement that used decks be transported by security;

(2) a requirement that the surveillance department be notified before movement of the decks;

(3) specifications on the time that the procedures will be performed;

(4) specifications on the location to which the decks will be taken;

(5) specifications on the keys needed;

(6) specifications on the employees who are responsible;

(7) a requirement for updating inventory ledgers; and

(8) any other applicable security measures that the facility manager deems appropriate.

(i) Before being placed into play, each deck shall be inspected by the dealer, with the inspection verified by a floor supervisor or the floor supervisor's supervisor. Card inspection at the gaming table shall require the dealer to sort each deck into sequence and into suit to ensure that all cards are in the deck. The dealer shall also check each card to ensure that there is no indication of tampering, flaws, scratches, marks, or other defects that might affect the integrity of the game.

(1) If, after checking the cards, the dealer finds that a card is unsuitable for use, a floor supervisor or an employee in a higher position shall either bring a replacement card from the replacement deck or replace the entire deck.

(2) A commission security agent on duty shall be notified immediately of the removal, including the card manufacturer's name, and the time of discovery and the location of where the unsuitable card was discovered. Cards may also be removed at the direction of the commission security agent on duty.

(3) Based upon the agent's discretion and circumstances as listed in subsection (t), all decks being removed from play shall be counted at the table to ensure that no cards are missing.

(4) The unsuitable cards shall be placed in a transparent sealed envelope or container, identified by the table number, date, and time, and shall be signed by the dealer and floor supervisor assigned to that table. The floor supervisor or an employee in a higher position shall maintain the envelope or container in a secure place within the enclosed and encircled area until collected by a facility manager's security department employee.

(5) Cards being removed from play shall be inspected by a member of the facility's security department within 48 hours of their removal.

(j) If an automated deck-checking device is used, the facility manager shall include the following procedures:

(1) Before the initial use of the automated deck-checking device, the critical program storage media and the camera software shall be verified and sealed by a commission security agent.

(2) The dealer shall complete the inspection of the cards. The dealer inspection shall ensure that the back of the cards are the correct color and free of any visible flaws.

(3)The automated deck-checking device shall be maintained in the enclosed and encircled area.

(4)The automated deck-checking device shall not be used in the card storage room.

(5)The automated deck-checking device shall be inspected on a weekly basis with decks that have preidentified missing cards from each suit. The devices shall properly identify each missing card in these decks.

(k)All envelopes and containers used to hold or transport cards collected by security shall be transparent.

(1) The envelopes or containers and the method used to seal them shall be designed or constructed so that any tampering is evident.

(2) The envelopes or containers and seals shall be approved by the executive director.

(l)If any cards have been opened and placed on a gaming table, those cards shall be changed at least once every 24 hours. In addition, the following requirements shall be met:

(1) All cards opened for use on a traditional baccarat table shall be changed upon the completion of each shoe.

(2) All cards opened for use on any table game in which the cards are handled by the players shall be changed at least every six hours.

(3) All cards opened for use on any table game and dealt from the dealer's hand or held by players shall be changed at least every four hours.

(4) If any cards have been opened and placed on a poker table, those cards shall be changed at least once every six hours.

(m)Each card damaged during the course of play shall be replaced by the dealer, who shall request a floor supervisor or an employee in a higher position to bring a replacement card from the enclosed and encircled area.

(1) The damaged cards shall be placed in a sealed envelope, identified by table number, date, and time, and be signed by the dealer and the floor supervisor or the supervisor's supervisor who brought the replacement cards to the table.

(2) The floor supervisor or an employee in a higher position shall maintain the envelope or container in a secure place within the enclosed and encircled area until collected by a security department employee.

(n)(1) The floor supervisor or an employee in a higher position shall collect all used cards either at the end of the gaming day or at least once each gaming day at the same time as designated by the facility manager and documented in the internal controls approved by the commission. A facility manager may choose to collect all used cards at other times as may be necessary.

(2) Used cards shall be counted and placed in a sealed envelope or container. A label shall be attached to each envelope or container that shall identify the table number, date and time and shall be signed by the dealer and floor supervisor assigned to the table. The floor supervisor or an employee in a higher position shall maintain the envelopes or containers in a secure place within the enclosed or encircled area until collected by a facility manager security department employee.

(o) The facility manager shall remove any cards from use whenever there is indication of tampering, flaws, scratches, marks, or other defects that might affect the integrity or fairness of the game, or at the request of the commission security agent on duty.

(p) Each extra deck with a broken seal shall be placed in a sealed envelope or container with a label attached to each envelope or container. The label shall identify the date and time the envelope was sealed and shall be signed by the floor supervisor and the pit manager. If the pit manager is not available to sign the label, then the floor supervisor and the floor supervisor's supervisor shall sign the label.

(q) At least once each gaming day at the time as designated by the facility manager in the internal controls, a facility manager security department employee shall collect, sign, and return to the security department all envelopes or containers containing the following:

(1) Damaged cards;

(2) cards used during the gaming day; and

(3) all other decks with broken seals.

(r) Each poker room supervisor shall maintain in the poker room stand a specified number of replacement decks for replacing unsuitable cards. The poker room supervisor or an employee in a higher position shall have access to the replacement decks that are kept in a single locked compartment. The poker room supervisor or an employee in a higher position shall keep a record of all cards removed from the replacement decks. The record shall include the time, date, color, value, suit, reason for replacement, and name of the individual who replaced the cards. The replacement decks shall be reconciled to the record at least weekly. Once a replacement deck has been depleted to the point that the deck is no longer useful, the remaining cards in the replacement deck shall be picked up by security and destroyed or cancelled.

(s) At least once each gaming day as designated by the facility manager in the internal controls, a pit manager or the pit manager's supervisor may collect all extra decks of cards. If collected, all sealed decks shall be cancelled, destroyed, or returned to an approved storage area.

(t) When the envelopes or containers of used cards and reserve cards with broken seals are returned to the security department, the used cards and reserve cards shall be inspected within 48 hours by a member of the facility manager's security department who has been trained in proper card inspection procedures. The cards shall be inspected for tampering, marks, alterations, missing or additional cards, or anything that might indicate unfair play.

(1) With the exception of the cards used on a traditional baccarat table, which are changed upon the completion of each shoe, all cards used in table games in which the cards are handled by the player shall be inspected.

(2) In other table games, if fewer than 300 decks are used in the gaming day, at least 10 percent of those decks shall be selected at random to be inspected. If 300 or more decks are used that gaming day, at least five percent of those decks but no fewer than 30 decks shall be selected at random to be inspected.

(3) The facility manager shall also inspect the following:

(A) Any cards removed from play as stated in paragraph (i)(3) based upon the agent's discretion and circumstances as listed in subsection (t);

(B) any cards that the facility manager has removed for indication of tampering; and

(4) The procedures for inspecting all decks required to be inspected under this subsection shall, at a minimum, include the following:

(A) The sorting of cards sequentially by suit;

(B) the inspection of the backs of the cards with an ultraviolet light;

(D) the inspection of the front and back of all poker cards for consistent shading and coloring;

(E) the positions authorized by job description to conduct the inspection;

(F) surveillance notification before inspecting the cards;

(G) time and location the inspection will be conducted;

(H) minimum training requirements of persons assigned to conduct the inspections;

(I) each type of inspection to be conducted and how each inspection will be performed, including the use of any special equipment;

(J) any other applicable security measures;

(K) immediate notification of the commission security agent on duty and the completion of an incident report describing any flawed, marked, suspects, or missing cards that are noted; and

(L) reconciliation by an employee of the facility manager security department of the number of cards received with the number of cards destroyed or cancelled and any cards still pending destruction or cancellation. Each discrepancy shall be reported to the commission security agent on duty immediately.

(5) If, during the inspection procedures required in paragraph (t)(4), one or more poker cards in a deck are determined to be unsuitable for continued use, those cards shall be placed in a sealed envelope or container, and a three-part card discrepancy report shall be completed in accordance with paragraph (t)(10).

(6) Upon completion of the inspection procedures required in paragraph (t)(4), each deck of poker cards that is determined suitable for continued use shall be placed in sequential order, repackaged, and returned to the primary or poker card storage area for subsequent use.

(7) The facility manager shall develop internal control procedures for returning the repackaged cards to the storage area.

(8) The individuals performing the inspection shall complete a work order form that details the procedures performed and list the tables from which the cards were removed and the results of the inspection. Each individual shall sign the form upon completion of the inspection procedures.

(9) The facility manager shall submit the training procedures for those employees performing the inspection, which shall be documented in the internal controls and approved by the commission.

(10) Evidence of tampering, marks, alterations, missing or additional cards, or anything that might indicate unfair play shall be reported upon discovery to the commission staff by the completion and delivery of a card discrepancy report.

(A) The report shall accompany the cards when delivered to the commission.

(B) The cards shall be retained for further inspection by the commission.

(C) The commission agent receiving the report shall sign the card discrepancy report and retain the original at the commission office.

(u)The facility manager shall submit to the commission for approval internal controls procedures for the following:

(1) A card inventory system that shall include, at a minimum, documentation of the following:

(A) The balance of decks on hand;

(B) the decks removed from storage;

(D) the date of the transaction; and

(E) the signature of each individual involved;

(2) a verification on a daily basis of the number of decks distributed, the decks destroyed or cancelled, and the decks returned to the storage area; and

(3) a physical inventory of the decks at least once every three months, according to the following requirements:

(A) This inventory shall be performed by an employee from the internal audit department, a supervisor from the cage, or a supervisor from the accounting department and shall be verified to the balance of decks on hand required in paragraph (u)(1)(A);

(B) the employees conducting this inventory shall make an entry and sign the card inventory ledger in a manner that clearly distinguishes this count as the quarterly inventory; and

(v)If cards in an envelope or container are inspected and found to be without any indication of tampering marks, alterations, missing or additional cards, or anything that might indicate unfair play, those cards shall be destroyed or cancelled. Once released by the commission agent on duty, the cards submitted as evidence shall immediately be destroyed or cancelled according to the following:

(1) Destruction shall occur by shredding or other method documented in the internal controls and approved by the commission.

(2) Cancellation shall occur by drilling a circular hole of at least ¼ of an inch in diameter through the center of each card in the deck or by cutting at least ¼ of an inch off one corner from each card in the deck or other method documented in the internal controls and approved by the commission.

(3) The destruction and cancellation of cards shall take place in a secure place, the location and physical characteristics of which shall be documented in the internal controls approved by the commission, and shall be performed by a member of the facility manager security department specifically trained in proper procedures.

(4) Card cancellation and destruction record shall be maintained indicating the date and time of cancellation or destruction, quantity of cards to be cancelled or destroyed, and the name of each individual responsible for cancellation or destruction.

(w)Procedures for canceling or destroying cards shall include the following maintenance:

(1) Notation of the positions authorized by job description to cancel or destroy cards;

(2) notation of surveillance notification before cancellation or destruction of the cards;

(3) notation of time and location the cancellation or destruction will be conducted;

(4) notation of the manner in which cancellation or destruction will be accomplished, including the use of any special equipment;

(5) any other applicable security measures; and

(6) immediate notification of a commission security agent on duty and the completion of a card and dice discrepancy report regarding any flawed, marked, or suspicious cards that are noted during the cancellation or destruction process.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-22 Dice specifications

(a) Except as provided in subsection (b), each die used in gaming shall meet the following requirements:

(1) Be formed in the shape of a cube with a size no smaller than .750 inch on each side and not any larger than .775 inch on each side;

(2) be transparent and made exclusively of cellulose except for the spots, name, or trade name of the facility manager and serial numbers or letters contained on the die;

(3) have the surface of each of its sides flat and the spots contained in each side flush with the area surrounding them;

(4) have all edges and corners square and forming 90-degree angles;

(5) have the texture and finish of each side exactly identical to the texture and finish of all other sides;

(6) have its weight equally distributed throughout the cube, with no side of the cube heavier or lighter than any other side of the cube;

(7) have its six sides bearing white circular spots from one to six respectively, with the diameter of each spot equal to the diameter of every other spot on the die;

(8) have spots arranged so that the side containing one spot is directly opposite the side containing six spots, the side containing two spots is directly opposite the side containing five spots, and the side containing three spots is directly opposite the side containing four spots. Each spot shall be placed on the die by drilling into the surface of the cube and filling the drilled-out portion with a compound that is equal in weight to the weight of the cellulose drilled out and that forms a permanent bond with the cellulose cube. Each spot shall extend into the cube exactly the same distance as every other spot extends into the cube to an accuracy tolerance of .0004 inch; and

(9) have the name or trade name of the facility manager in which the die is being used imprinted or impressed on the die.

(b) Each die used in gaming at pai gow shall meet the requirements of subsection (a), except as follows:

(1) Each die shall be formed in the shape of a cube not larger than .8 inch on each side.

(2) Instead of the name or trade name of the facility manager, an identifying mark or logo may be approved by the executive director to be imprinted or impressed on each die.

(3) The spots on each die shall not be required to be equal in diameter.

(4) Edges and corners may be beveled if the beveling is similar on each edge and each corner.

(5) Tolerances required by paragraph (a)(8) as applied to pai gow dice shall require accuracy of only .004 inch.

(c) A picture and sample of the die shall be submitted to the executive director for approval before being placed into play.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-23 Dice; receipt, storage, inspections, and removal from use

(a) Each facility manager shall ensure that all of the following requirements are met each time dice are received for use in the gaming facility:

(1) The packages shall be inspected for proper quantity and any obvious damage by at least two employees, one of whom shall be from the table games department and the other from the security department or accounting department.

(2) The dice shall be recorded in the dice inventory ledgers by a member of the security or accounting department. Any discrepancies in the invoice or packing list or any defects found shall be reported upon discovery to a commission security agent on duty.

(3) The boxes shall be placed for storage in a primary or secondary storage area by at least two employees, one of whom shall be from the table games department and the other from the security department or accounting department. The primary storage area shall be located in a secure place, the location and physical characteristics of which shall be approved by the commission. Secondary storage areas, if needed, shall be used for the storage of surplus dice. Dice maintained in secondary storage areas shall be transferred to the primary storage area before being distributed to the pits or tables. All secondary storage areas shall be located in secure areas, the location and physical characteristics of which shall be approved by the commission.

(b) Each primary storage area and each secondary storage area shall have two separate locks. The security department shall maintain one key, and the table games department shall maintain the other key. No person working in the table games department that is an employee in a lower position than the pit manager or poker room manager may have access to the table games department key for the primary and secondary storage areas.

(c) A facility manager shall ensure that each dice storage area contains an inventory ledger and that its employees update the ledger when dice are added or removed from that storage area.

(d) Before the commencement of each gaming day and at other times as may be necessary, the pit manager, poker room manager, or the supervisor, in the presence of a security department employee and after notification to surveillance, shall remove the appropriate number of dice from the primary storage area for that gaming day.

(e) Before being transported to a pit, all dice shall be recorded on the dice inventory ledger. Both the authorized table games department employee and security department employee shall sign verifying the information.

(f) Once the dice are removed from the primary storage area, the pit manager, poker room manager, or the supervisor, in the presence of a security department employee, shall take the dice to the pits and distribute the dice to the floor supervisors or directly to the boxperson.

(1) At the time of receipt of any dice, a boxperson at each craps table shall, in the presence of the floor supervisor, inspect each die with a micrometer or any other instrument approved by the commission that performs the same function, a balancing caliper, a steel set square, and a magnet. These instruments shall be kept in a compartment at each craps table or pit stand and shall be at all times readily available for use by the commission upon request. The boxperson shall also check the dice to ensure that there is no indication of tampering, flaws, scratches, marks, or other defects that might affect the play of the game. The inspection shall be performed on a flat surface, which allows the dice inspection to be observed by surveillance and by any person near the pit stand.

(2) Following this inspection, the boxperson shall in the presence of the floor supervisor place the dice in a cup on the table for use in gaming. The dice shall never be left unattended while the dice are at the table.

(3) The pit manager shall place extra dice in a single locked compartment in the pit stand. The floor supervisor or an employee in a higher position shall have access to the extra dice to be used for that gaming day.

(4) Any movement of dice after being delivered to the pit shall be made by a pit manager or an employee in a higher position and require a security escort after notifying surveillance. Procedures for the pickup of used dice, including obtaining keys, assigning individuals responsible, and updating inventory ledgers, shall include the following:

(A) Transportation of used dice by security;

(B) surveillance notification before movement of the dice;

(D) location where the dice will be taken; and

(E) any other applicable security measures.

(5) No dice taken from the reserve shall be used for gaming until the dice have been inspected in accordance with this regulation.

(g)The facility manager shall remove any dice from use if there is any indication of tampering, flaws, or other defects that might affect the integrity or fairness of the game, or at the request of the commission agent on duty.

(h)At the end of each gaming day or at any other times as may be necessary, a floor supervisor, other than the person who originally inspected the dice, shall visually inspect each die for evidence of tampering. Any evidence of tampering shall be immediately reported to the commission security agent on duty by the completion and delivery of an approved dice discrepancy report.

(1) Each die showing evidence of tampering shall be placed in a sealed envelope or container.

(A) All envelopes and containers used to hold or transport dice collected by security shall be transparent.

(B) A label shall be attached to each envelope or container that identifies the table number, date, and time and shall be signed by the boxperson and floor supervisor.

(C) The envelopes or containers and the method used to seal the dice shall be designed or constructed so that any tampering is evident.

(D) The security department employee receiving the die shall sign the original, duplicate, and triplicate copy of the dice discrepancy report and retain the original at the security office. The duplicate copy shall be delivered to the commission, and the triplicate copy shall be returned to the pit and maintained in a secure place within the pit until collection by a security department employee.

(2) The procedures for inspecting dice under this subsection shall include the following information:

(A) A listing of the positions authorized by job description to conduct the inspection;

(B) a direction that surveillance personnel shall be notified before inspecting the dice;

(D) a listing of the minimum training requirements of persons assigned to conduct the inspections;

(E) a description of the inspections that will be conducted and how they will be performed, including the use of any special equipment;

(F) any other applicable security measures;

(G) a requirement for immediate notification of the commission security agent on duty and the completion of an incident report describing any flawed, marked, suspect, or missing dice that are noted; and

(H) a requirement for reconciliation by the security department employee of the number of dice received with the number of dice destroyed or cancelled and any dice still pending destruction or cancellation. Each discrepancy shall be reported to the commission security agent within two hours.

(3) All other dice shall be put into envelopes or containers at the end of each gaming day.

(A) A label shall be attached to each envelope or container that identifies the table number, date, and time and is signed by the boxperson and floor supervisor.

(B) The envelope or container shall be appropriately sealed and maintained in a secure place within the pit until collection by a security department employee.

(i) All extra dice in dice reserve that are to be destroyed or cancelled shall be placed in a sealed envelope or container, with a label attached to each envelope or container that identifies the date and time and is signed by the pit manager.

(j) A security department employee shall collect and sign all envelopes or containers of used dice and any dice in dice reserve that are to be destroyed or cancelled and shall transport the envelopes or containers to the security department for cancellation or destruction. This collection shall occur at the end of each approved gaming day and at any other times as may be necessary. The security department employee shall also collect all triplicate copies of dice discrepancy reports, if any. No dice that have been placed in a cup for use in gaming shall remain on a table for more than 24 hours.

(k) A pit manager or supervisor of the pit manager may collect all extra dice in dice reserve at the end of each gaming day or at least once each gaming day as designated by the facility manager and approved by the commission, and at any other times as may be necessary.

(1) If collected, dice shall be returned to the primary storage area.

(2) If not collected, all dice in dice reserve shall be reinspected before use for gaming.

(l) The facility manager's internal control system shall include approval procedures for the following:

(1) A dice inventory system that shall include, at a minimum, documenting the following:

(A) The balance of dice on hand;

(B) the dice removed from storage;

(D) the date of the transaction; and

(E) the signature of each individual involved;

(2) a reconciliation on a daily basis of the dice distributed, the dice destroyed and cancelled, the dice returned to the primary storage area and, if any, the dice in dice reserve; and

(3) a physical inventory of the dice performed at least once every three months and meeting the following requirements:

(A) This inventory shall be performed by an employee from the internal audit department or a supervisor from the cashier's cage, or accounting department and shall be verified to the balance of dice on hand required in paragraph (l)(1)(A);

(B) each discrepancy shall immediately be reported to the commission agent on duty; and

(C) the employees conducting this inventory shall make an entry and sign the dice inventory ledger in a manner that clearly distinguishes this count as the quarterly inventory.

(m)(1) Cancellation shall occur by drilling a circular hole of at least 3⁄16 of an inch in diameter through the center of each die or any other method approved by the commission.

(2) Destruction shall occur by shredding or any other method approved by the commission.

(3) The destruction and cancellation of dice shall take place in a secure place, the location and physical characteristics of which shall be approved by the commission.

(4) Dice cancellation and destruction record shall be maintained indicating the date and time of cancellation or destruction, quantity of dice to be cancelled or destroyed, and the individuals responsible for cancellation or destruction.

(5) Procedures for cancelling or destroying dice shall include the following:

(A) The positions authorized by job description to cancel or destroy dice;

(B) surveillance notification before cancellation or destruction of the dice;

(D) specifically how cancellation or destruction will be accomplished, including the use of any special equipment; and

(E) other applicable security measures.

(6) Each facility manager shall notify the commission security agent of any flawed, marked, or suspect dice that are discovered during the cancellation or destruction process.

(n) Evidence of tampering, marks, alterations, missing or additional dice or anything that might

indicate unfair play discovered shall be reported to the commission by the completion and delivery of a dice discrepancy report.

(1) The report shall accompany the dice when delivered to the commission security agent on duty.

(2) The dice shall be retained for further inspection by the commission security agent on duty.

(3) The commission agent receiving the report shall sign the dice discrepancy report and retain the original at the commission office.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2010 Supp. 74-8772; effective Jan. 8, 2010; amended Dec. 9, 2011.)

Kan. Admin. Regs. § 112-108-24 Mandatory table game count procedure

Each facility manager shall report to the commission the times when drop boxes will be removed and the contents counted. All drop boxes shall be removed and counted at the times previously reported to the commission. The removal and counting of contents at other than the designated times shall be prohibited, unless the facility manager provides advance written notice to the commission's security staff on site of a change in times or the commission requires a change of authorized times.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-25 Handling of cash at gaming tables

(a) Whenever cash is presented by a patron at a gaming table to obtain gaming chips, the following requirements shall be met:

(1) The cash shall be spread on the top of the gaming table by the dealer or boxperson accepting the cash, in full view of the patron who presented the cash and the supervisor assigned to that gaming table.

(2) The cash value amount shall be verbalized by the dealer or boxperson accepting the cash, in a tone of voice calculated to be heard by the patron and the supervisor assigned to that gaming table.

(3) The boxperson or dealer shall count and appropriately break down an equivalent amount of chips in full view of surveillance and the patron.

(4) The cash shall be taken from the top of the gaming table and placed by the dealer or boxperson into the drop box attached to the gaming table.

(b) No cash wagers shall be allowed to be placed at any gaming table. The cash shall be converted to chips before acceptance of a wager.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-26 Table game tips

(a) Each tip given to a dealer shall be handled in the following manner:

(1) Immediately deposited into a transparent locked box reserved for tips, except that value chips received at table games may first be placed in a color-up tube if approved internal controls are in place for this action. If non-value chips are received at a roulette table, the marker button indicating their specific value at that time shall not be removed or changed until after a dealer, in the presence of a supervisor, has converted the nonvalue chips into value chips that are immediately deposited in a transparent locked box reserved for tips; and

(2) accounted for by a recorded count conducted by a randomly selected dealer for each respective count and a randomly selected employee of the security department. This count shall be recorded on a tips and gratuity deposit form.

(b) Any facility manager may submit internal controls for the commission's approval that would allow poker dealers to either pool tips with other dealers operating poker games in the poker room or receive tips on an individual basis. The receiving of tips individually may be allowed only when the dealer does not make decisions that can affect the outcome of the gambling game, is not eligible to receive winnings from the gambling game as an agent of the facility manager, and uses an approved shuffling machine during the course of the poker game. If tips are received by poker dealers on an individual basis, all tips shall be immediately placed into a locked individual transparent tip box that shall be assigned to and maintained by the dealer while working. The locked individual tip box shall be given to the facility manager at the end of the shift for counting, withholding of taxes, and subsequent payment during the normal payroll process. For the purposes of this subsection, winnings from a gambling game shall not include commissions, commonly referred to as the "rake," withheld from amounts wagered in a game. Poker dealers may be permitted to receive tips on an individual basis only if the facility manager has internal controls governing this practice that have been approved by the commission.

(c) For exchanging, which is sometimes called "coloring up," dealer tips to a higher denomination before insertion into the tip box, the following requirements shall be met:

(1) A transparent cylinder or tube shall be attached to the table to maintain the chips until exchanged or colored up. The cylinder or tube shall have a capacity of no more than 25 chips.

(2) Before any chips are exchanged or colored up, the dealer shall make the announcement in a voice that can be heard by the table games supervisor that chips are being colored up. The dealer shall then deposit an equal value of higher denomination chips into the tip box and place the lower denomination chips into the chip tray.

(d) Upon receipt of a tip from a patron, a dealer shall extend the dealer's arm in an overt motion and deposit the tip into the transparent locked box or color-up tube reserved for this purpose.

(e) Applicable state and federal taxes shall be withheld on tips and gifts received by facility manager employees.

(f) The facility manager shall include in its internal controls the procedures for dropping tip boxes.

(g) The contents of tip boxes shall be collected, transported, stored, counted, and distributed in a secure manner on a regular basis pursuant to a schedule approved by the commission.

(h) Before any tip box collection, a security department employee shall notify the surveillance department that the tip box collection process is about to begin.

(i) If a tip box becomes full, a security department employee and an employee from the applicable department shall notify the surveillance department and empty the full tip box into a secure bag or other approved container for the applicable department.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-27 Table inventory

(a) Chips shall be added or removed from the table inventory only in any of the following instances:

(1) In exchange for cash presented by the patron;

(2) for payment of winning wagers or collection of losing wagers made at the table;

(3) through approved internal controls governing table fill and credit procedures;

(4) in exchange with patrons for gaming chips of equal value;

(5) in exchange for a verified automated tip receipt from a commission-approved automated table game controller; or

(6) in exchange with patrons for non-value chips on the roulette table.

(b) A facility manager shall not transfer or exchange chips or currency between table games.

(c) Table inventories shall be maintained in trays that are covered with a transparent locking lid when the tables are closed. The information on the table inventory slip shall be placed inside the transparent locking lid and shall be visible from the outside of the cover. In case of an emergency, the transparent lid shall be locked over the inventory until normal play resumes.

(d) The table inventory slip shall be at least a two-part form, one of which shall be designated as the "opener" and the other as the "closer."

(e) If a gaming table is not opened during a gaming day, preparation of a table inventory slip shall not be required. However, the table games department shall provide a daily list of table games not open for play, including the inventory amount and date on the last closing table inventory slip.

(f) If a table game is not open for play for seven consecutive gaming days, the table inventory shall be counted and verified either by two table games supervisors or by a table games supervisor and a dealer or boxperson, who shall prepare a new table inventory slip and place the previous inventory slip in the table drop box.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-28 Opening of gaming tables

(a) Immediately before opening a table for gaming, a table games supervisor or table games manager shall unlock the transparent table tray lids in the presence of the dealer or boxperson assigned to the table.

(b) Either the dealer or boxperson in addition to either the table games supervisor or table games manager shall each count the chips by denomination and verify the count to the opening table inventory slip.

(c) The dealer or boxperson and the table games supervisor or table games manager shall sign and attest to the accuracy of the information recorded on the opener.

(d) Once signed, the dealer or boxperson shall immediately deposit the opener into the drop box attached to the gaming table.

(e) Internal controls shall include procedures for reconciling instances when counted inventory differs from the amount recorded on the opener and shall include the name of the table games supervisor or table games manager preparing a table games variance slip, the signatures required, distribution of each part of the form, and the assurance that one part is deposited in the drop box. Each variance of $100 or more at any table shall be reported immediately by the table games supervisor or table games manager to a commission security agent on duty.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-29 Closing of gaming tables

(a) Whenever a gaming table is closed, all chips remaining at the table shall be counted and verified by either two table games supervisors or a table games supervisor in addition to either a dealer or a boxperson, who shall prepare a table inventory slip.

(b) After the table inventory slip is signed by the table games supervisor and the dealer or boxperson, the dealer or boxperson shall immediately deposit the closing table inventory slip in the drop box.

(c) The table games supervisor shall place the opening inventory slip under the table tray lid in a manner that the amounts on the opening inventory slip may be read and lock the lid in place.

(d) Each time a table game is closed, complete closing procedures shall be followed to include the counting, verification, recording, and securing of the chips in the tray, as well as the proper disposal of the cards or dice that were in play. If the game is reopened again on the same gaming day, complete opening procedures shall be followed to include the counting and verification of chips in the tray and inspection of cards or dice and all applicable gaming equipment. The opening and closing inventory table slip for games that are opened and closed more than once in a gaming day may be marked in a manner that indicates the sequence of the slips.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-30 During 24-hour gaming

During 24-hour gaming, a closing table inventory slip shall be prepared in conjunction with the table drop for that gaming day.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-31 Procedures for manually filling chips from cage to tables; form procedures

(a) Cross-fills, even money exchanges, and foreign currency exchanges in the pit shall be prohibited.

(b) To request that chips be filled at table games, a supervisor or table games manager shall prepare a two-part order for fill form in ink entering the following information:

(1) The amount of the fill by denomination of chips;

(2) the total amount of the fill;

(3) the table or game number; and

(4) the signature of the supervisor or manager.

(c) The order for fill shall be transferred to the facility manager's accounting department by the end of the gaming day. The order for fill shall be taken by a security department employee to the cashier's cage. A copy of the order for fill shall be placed on top of the table requesting the fill.

(d) A three-part manual fill slip shall be used to record the transfer of chips from the cashier's cage to a gaming table. The fill slips shall be sequentially numbered by the vendor. The alphabet shall not be required to be used if the numerical series is not repeated during the business year. Chips shall not be transported unless accompanied by a fill slip.

(e) Unless otherwise approved by commission, manual fill slips shall be inserted in a locked dispenser that permits an individual slip in the series and its copies to be written upon simultaneously. The dispenser shall discharge the original and duplicate copies while the triplicate remains in a continuous, unbroken form in the locked dispenser.

(f) If a manual fill slip needs to be voided, the cage cashier shall write "VOID" and an explanation of why the void was necessary. Both the cage cashier and either a security department employee or another level II employee independent of the transaction shall sign the voided fill slip. The voided fill slips shall be submitted to the facility manager's accounting department for retention.

(g) Corrections on manual table fills shall be made by crossing out the error, entering the correct information, and then obtaining the initials and employee license number of at least two cage employees. Each employee in accounting who makes corrections shall initial and include the employee's commission license number.

(h) A small inventory of unused manual fill slips may be issued to the facility manager's security department by accounting for emergency purposes. These unused fill slips shall be maintained by the facility manager's accounting or security departments.

(i) A cashier's cage employee shall prepare a three-part fill slip in ink by entering the following information:

(1) Denomination;

(2) total amount;

(3) game or table number and pit;

(4) date and time; and

(5) required signatures.

(j) A cashier's cage employee shall sign the order for fill after comparing it to the fill slip and then prepare the proper amount of chips. A facility manager's security department employee shall verify the chip totals with the fill slip. A cashier's cage employee shall present the ordered chips to the security department employee in a covered clear chip carrier. Once verified, both the cashier's cage employee and the security department employee shall sign the fill slip, and the cashier's cage employee or security department employee shall also time- and date-stamp the fill slip. A cashier's cage employee shall retain the order for fill and staple it to a copy of the fill slip after the required signatures from pit personnel are obtained by a security department employee.

(k) After notifying surveillance, a facility manager's security department employee shall take the chips and the fill slips to the indicated table. The chips shall be counted by the dealer or boxperson and witnessed by a table games supervisor and security department employee in full view of surveillance. After verifying the chips against the amounts listed on the fill slip, the table games supervisor and dealer or boxperson shall sign the fill slips. The table games supervisor and security department employee shall observe the dealer or boxperson place the chips in the rack and deposit the fill slips in the table drop box. A security department employee shall not leave the table until the chips have been placed in the racks and the fill slips have been dropped. A security department employee shall return a copy of the fill slip to the cashier.

(l) The copies of the fill slips shall be reconciled by accounting at least once daily.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-32 Procedures for automated filling of chips

(a) The table games supervisor or table games manager shall determine whether a fill is necessary and initiate the request for fill process. If a request for fill slip is used, procedures for distribution of the slip shall be included in the internal controls.

(b) The table games manager or the pit clerk shall enter a request for fill into the computer, including the following information:

(1) The amount by denomination;

(2) the total amount;

(3) the game or table number and pit;

(4) the dates and time; and

(5) the required signatures.

(c) A two-part computer-generated fill slip shall be used to record the transfer of chips from the cashier's cage to a gaming table. The fill slips shall be numbered by the computer in a manner that ensures that every fill in a given calendar year has a unique sequential number.

(d) Two copies of the computerized fill slips shall be printed simultaneously, and a record of the transaction shall be stored within the computer database.

(e) If a computerized fill slip needs to be voided, the cage cashier shall write "VOID" across the original and all copies of the fill slip and an explanation of why the void was necessary. Both a cashier's cage employee and either a security department employee or another level II employee independent of the transaction shall sign the voided fill slip. The voided fill slips shall be submitted to the accounting department for retention and accountability. The transaction shall be properly voided in the computer database.

(f) A two-part fill slip shall be printed in the cashier's cage containing the information required in subsection (b). A security department employee shall verify the chip totals with the fill slip. A cashier's cage employee shall present the ordered chips to a security department employee in a clear chip carrier. Once verified, both a cashier's cage employee and security department employee shall sign the fill slip.

(g) After notifying surveillance, a security department employee shall take the chips and the fill slips to the indicated table. Only a security department employee shall transport fills. The chips shall be counted by the dealer or boxperson and witnessed by a table games supervisor and security department employee in full view of surveillance. After verifying the chips to the amounts listed on the fill slip, the table games supervisor and a dealer or boxperson shall sign the fill slips. The table games supervisor and security department employee shall observe the dealer or boxperson place the chips in the rack and deposit the fill slip in the table drop box. A security department employee shall not leave the table until the chips have been placed in the racks and the fill slip has been dropped. A security department employee shall return a copy of the fill slip to the cashier's cage.

(h) The main bank cashier shall run an adding machine tape on the fill slips and verify the total to the amount in the automated accounting system. All fill paperwork shall be forwarded to accounting.

(i) The ability to input data into the gaming facility computer system from the pit shall be restricted to table game managers and pit clerks.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-33 Procedures for recording manual table credits

(a) Three-part manual credit slips shall be used to record the transfer of chips from a gaming table to the cage. The credit slips shall be sequentially numbered by the vendor. The alphabet shall not be required to be used if the numerical series is not repeated during the calendar year. Chips shall not be transported unless accompanied by a credit slip.

(b) The inventory of nonissued credit slips shall be maintained by the facility manager's accounting or security department. The accounting department shall be responsible for the initial receipt of manual credit slips.

(c) If a table game supervisor or table game manager determines that a table credit is required, a three-part order for credit shall be completed in ink by entering the following information:

(1) The amount by denomination of chips needed;

(2) the total amount;

(3) the game or table number and pit;

(4) the date and time; and

(5) the signature of the manager or supervisor.

(d) The table game supervisor or the table game manager shall keep one copy of the order for credit on the table and take the other copy of the order for credit to the pit stand. The pit stand employee shall record that copy in the pit paperwork log and then return the copy to the table. The table game manager shall give a copy of the order for credit to a security department employee, who shall take it to the cashier's cage, where the cashier shall prepare a three-part credit slip in ink by entering the following:

(1) The chip denomination;

(2) total amount;

(3) game or table number; and

(4) time and date.

(e) The security department employee shall take the credit slip to the gaming table. A copy of the order for credit shall be retained at the cage.

(f) The dealer or boxperson shall count the chips in full view of a security department employee and either the table game supervisor or an employee in a higher position. The count shall be conducted in full view of cameras connected to the surveillance department.

(g) The dealer or boxperson and the table game supervisor shall verify the chips against the credit slip, and the credit slip against the order for credit. The dealer or boxperson and the table game supervisor shall sign the credit slip and the order for credit. The security department employee shall verify the chips against the order for credit, sign the order for credit and the credit slip, and receive the chips in a clear chip carrier. The security department employee shall carry the chips and the credit slip back to the cashier's cage. A copy of the order for credit shall be retained at the table until a copy of the credit slip is returned.

(h) The cashier's cage employee shall receive the credit slips and the chips from the security department employee and verify that the chips match the order for credit and credit slip. The cashier's cage employee shall then sign the credit slips and the order for credit. The cashier's cage employee shall time- and date-stamp the credit slips. Unless otherwise approved by the commission, a copy shall remain unbroken in the locked form dispensing machine. The order for credit shall be attached to a copy of the credit slip and be retained by the cashier's cage.

(i) The copy of the credit slip issued by the cashier's cage shall be taken back to the table by the security department employee. The table game supervisor and the dealer or boxperson shall compare the copy of the credit slip to the order for credit. The table game supervisor shall observe the dealer or boxperson deposit the order for credit slip and the credit slip in the table drop box.

(j) The copies of the credit slips, with the copies of the order for credit attached, shall be transferred to the main bank. The main bank cashier shall run a tape on the credit slips and verify the total against the amount in the automated accounting system.

(k) The locked copies of the manual credit slips shall be removed from the machines by the accounting department.

(l) If a credit slip needs to be voided, the cage cashier shall write "VOID" and an explanation of why the void was necessary across the original and all copies of the credit slip. Both the cashier's cage employee and either a security department employee or another level II employee independent of the transaction shall sign the voided credit slip. The voided credit slips shall be subsequently transferred to the accounting department and retained.

(m) Corrections on manual table fill or credit shall be made by crossing out the error, entering the correct information, and then obtaining the initials and commission license numbers of at least two cashier's cage employees.

(n) Each accounting employee who makes corrections shall initial and note that employee's commission license number on the request.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-34 Automated table credits

(a) Two-part computer-generated credit slips shall be used to record the transfer of chips from a gaming table to the cashier's cage. The credit slips shall be sequentially numbered by the computer system, ensuring that each credit in a given calendar year is assigned a unique number. Chips shall not be transported unless accompanied by a credit slip.

(b) The table game manager or the pit clerk shall enter a request for credit into the computer, including the following information:

(1) The amount by denomination;

(2) total amount;

(3) game or table number and pit;

(4) dates and time; and

(5) required signatures.

(c) A security department employee shall obtain the credit slip and chip carrier from the cage and proceed to the pit area.

(d) The dealer or boxperson shall count the chips in full view of a security department employee and either the table games supervisor or an employee in a higher position. The count shall be conducted in full view of a camera connected to the surveillance department.

(e) The table games supervisor and either a dealer or a boxperson shall verify that the value of the chips in the carrier matches the amount on the credit slip and sign the credit slip. The security department employee shall verify that the chips match the credit slip, sign the credit slip, and carry the chips and the credit slip to the cashier's cage.

(f) A cashier's cage employee shall receive the credit slip and the chips from the security department employee, verify that the chips match the credit slip, and sign the credit slip. A copy of the credit slip shall be retained by the cashier's cage.

(g) The copy of the credit slip shall be taken back to the table by the security department employee. The table games supervisor shall observe the dealer or boxperson deposit the copy of the credit slip into the table drop box.

(h) The main bank cashier shall run an adding machine tape on the credit slips and verify the total against the amount on the automated accounting system. All credit paperwork shall be forwarded to the accounting department by the main bank cashier.

(i) If a credit slip needs to be voided, the cashier's cage employee shall write "VOID" and an explanation of why the void was necessary across the original and all copies of the credit slip. Both the cashier's cage employee and a security department employee independent of the transaction shall sign the voided credit slips. The voided credit slip shall be transferred to the accounting department, where the slip shall be retained. The transaction shall be properly voided in the computer database.

(j) The ability to input data into the gaming facility computer system from the pit shall be restricted to table games managers and pit clerks.

(k) Each employee in accounting who makes corrections shall initial each correction and include that employee's commission license number.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-35 Table game layouts

(a) All table game layouts shall be consistent with the facility manager's internal controls and meet the following requirements:

(1) Markings on the layout shall be of a size that can be adequately seen by the surveillance.

(2) The odds of winnings and payouts shall be included in markings on the layout when required by the executive director.

(3) The designs shall not contain any advertising other than the facility manager's logo or trademark symbol or Kansas lottery-approved design.

(4) The designs shall not contain any feature that tends to create a distraction from the game.

(5) All other components of the game on the layout shall be of a size that can be adequately seen by surveillance.

(6) A colored depiction of the table shall be submitted to the executive director for approval before being placed into play.

(b) Table layouts shall not be stored in a nonsecure area.

(c) Used table layouts that display the licensee's logo and are not used for internal training purposes approved by commission shall be destroyed and shall not be sold or given to the public.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-36 Required personnel for specific table games

(a) Pit areas may be on multiple levels or locations within a gaming facility. Pit areas shall be described by facility managers in their internal controls at a minimum by their locations, configurations, and restrictions on access. Each full-size baccarat table shall be in a separate room or clearly segregated area of the floor that functions as a separate area from the other table games and is surrounded by baccarat tables. For the purposes of access to a pit, card and dice control, and other table games activities, a "pit" shall be more narrowly defined as a single, separate area that is completely enclosed or encircled by gaming tables.

(b) The number of required table games supervisors shall be determined as follows:

(1) One table games supervisor shall not oversee more than six open table games if no craps table is open.

(2) One table games supervisor shall not oversee more than four open table games if one of the open table games is a craps table.

(3) One table games supervisor shall not oversee more than two open table games if both table games are craps tables.

(c) The table games supervisors and the oversight of their assigned table games and pit operations shall be directly supervised in the following configuration by either a table games manager or casino shift manager:

(1) In either of the following instances, a table games manager shall not be required to be on duty, but at least one casino shift manager shall provide direct supervision by acting as a table games manager:

(A) When one craps table is open; or

(B) when up to six tables are open.

(2) In either of the following instances, a table games manager shall provide direct supervision and a casino shift manager shall not act as a table games manager:

(A) When two or more craps or baccarat tables are open; or

(B) when seven to 36 table games are open.

(3) If more than 36 tables are open, one additional table games manager shall provide direct supervision for each additional set of one to 36 tables open. A casino shift manager shall not act as a table games manager.

(d) Other than a casino shift manager acting as a table games manager, table games managers shall be physically present in the pit for at least 90 percent of their shift and be solely dedicated to supervising activities at open table games and activities within the pits. Each absence of a longer duration shall require a replacement table games manager to be on duty in the pit. If a facility manager uses job titles other than "table games supervisor" or "table games manager," then the internal controls shall specify which job titles used by the facility manager correspond to these positions and ensure that the job descriptions of those positions properly delineate the duties. Table games managers supervising pit areas separated by sight or sound shall have a communications device enabling them to be immediately notified of any incident requiring their attention and shall promptly respond. The gaming facility shift manager shall assign table games managers specific responsibilities regarding activities associated with specific tables.

(e) Each full-size baccarat table shall be directly supervised by at least one table games supervisor.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2010 Supp. 74-8772; implementing K.S.A. 2010 Supp. 74-8752 and 74-8772; effective Jan. 8, 2010; amended April 1, 2011.)

Kan. Admin. Regs. § 112-108-37 Instructional table games offered to public

(a) A facility manager may offer instructional table games if all of the following conditions are met:

(1) Only cancelled cards and dice are used.

(2) Gaming chips are marked "no cash value" or are distinctively different from any value and non-value chips used in the gaming facility and can be readily seen if intermingled into a stack of active chips of a similar color.

(3) For roulette, non-value chips are distinctively different in design than those used on the gaming floor or have been drilled or otherwise cancelled.

(4) No wagering is permitted.

(5) No prizes are awarded in association with the games.

(6) All participants are at least 21 years of age.

(7) The executive director gives approval to the facility manager to use the instructional table game.

(b) Written notification setting forth the date, time, type of event, and event location shall be submitted for approval to the executive director at least 15 days in advance of the instructional game.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-38 Minimum and maximum table game wagers

(a) All minimum and maximum wagers shall be posted at each table and may be changed between games by posting new table limits.

(b) If the minimum or maximum wager is changed, the sign shall be changed to reflect the new amount. A facility manager may allow the following bets during a table limit change:

(1) Patrons who were playing when minimum table limits were raised may continue to place bets under the old table minimum limit; and

(2) patrons who were playing when a maximum table limit was raised may be allowed to continue placing bets under the previous table maximum bet.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-39 Dealer and boxperson hand clearing

(a) Each dealer and each boxperson shall clear that individual's hands in view of all persons in the immediate area and surveillance before and after touching that individual's body and when entering and exiting the game. "Clearing" one's hands shall mean holding and placing both hands out in front of the body with the fingers of both hands spread and rotating the hands to expose both the palms and the backs of the hands to demonstrate that the hands are empty.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-40 Table games jackpot; employee pocketbooks

(a) A table games jackpot slip or manual jackpot form shall be used to pay any table games jackpot that triggers IRS required reporting. If a manual jackpot form is used, the form shall include all the information as required on the table games jackpot slip. The table games jackpot slip or manual jackpot form shall be a sequentially numbered, two-part form. One part shall be deposited in the table game drop box, and the other copy shall be retained at the cashier's cage.

(b) Each employee shall be prohibited from taking a pocketbook or other personal container into the pit area unless the pocketbook or container is transparent.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-41 Poker room; general

(a) Live poker games in which the dealer does not play a hand and a rake is collected shall be played only in an approved poker room. All other poker games in which the dealer plays a hand and the player competes against the dealer shall be played at gaming tables that are part of a pit on the gaming floor.

(b) The facility manager shall have the current house rules in writing. These rules shall be available in hard copy in the poker room for patrons, employees, and commission personnel. All revised or rescinded house rules shall be kept on file and shall be available for at least one year.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-42 Poker room; supervision

(a) Each poker room shall be under the general control of a poker room manager or table games manager and the direct oversight of at least one poker room supervisor. Poker room supervisors shall be solely dedicated to supervising poker room personnel and all activities within the poker room when the poker room is opening, in operation, or closing at the end of the gaming day. A poker room supervisor may operate the poker room bank, if so authorized in the internal controls system. The poker room shall be staffed with at least one poker supervisor for every one to eight tables open.

(b) If a facility manager uses job titles other than "poker room manager" or "poker room supervisor," the internal controls shall specify which job titles used by the facility manager correspond to these positions and ensure that the job descriptions of those positions properly describe the duties assigned.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-43 Poker room; banks and transactions

(a) If a facility manager uses a poker room bank, the facility manager's internal controls shall state whether the bank is operated as a branch of the main cage with a cashier's cage or if accountability and staffing of the bank are the responsibility of the poker room manager or poker room supervisor.

(b) Both the outgoing and incoming individuals responsible for the bank shall sign the completed count sheet attesting to the accuracy of the information at the beginning and ending of each shift. If there is no incoming or outgoing individual, the countdown, verification, and signatory requirements shall be performed by the individual who is responsible for the bank and a cashier's cage employee or a supervisor independent of the poker room.

(c) Each transfer between any table banks and the poker room bank shall be authorized by a poker room supervisor and evidenced by the use a transfer slip as specified in the internal controls. The poker dealer and poker room supervisor shall verify the amount of chips to be transferred. Transfers between table banks, poker room banks, or cashier's cages within the poker room shall not require a security escort.

(d) Transfers between the table banks, poker room banks, or the cashier's cages outside the poker room shall be properly authorized and documented by the poker room supervisor on an even exchange slip as specified in the internal controls.

(e) A facility manager may permit patrons to exchange cash for chips only at the poker room bank or cashier's cage and then only within submitted and commission-approved buy-in procedures.

(f) When a poker table is opened, a poker dealer shall count the poker table bank inventory, and the accuracy of the count shall be verified by the poker room supervisor and attested to by their signatures on a table inventory slip. The count shall be recorded and reconciled when the poker table is closed.

(g) When a poker table is not open for play for seven consecutive gaming days, the poker table inventory shall be counted and verified by either two poker room supervisors or a poker room supervisor and a dealer. The poker room supervisor shall prepare a new table inventory slip and place the previous inventory slip in the table drop box.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-44 Poker room; drops and counts

The procedures for the collection of poker table drop boxes, toke boxes, and the count of the contents of these boxes shall meet the requirements of the internal control standards applicable to the table game drop boxes in K.A.R. 112-108-48.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-45 Bad beat and special hand

(a) If the facility manager offers a bad beat or special hand, all funds collected for the jackpot shall be used to fund the primary, secondary, and tertiary jackpots and be available for poker players to win. The percentage of the funds attributable to each jackpot shall be included in the rules of the game in the facility manager's internal control standards.

(b) When a patron wins a bad beat or special hand, the following information shall be recorded on the bad beat payout documentation, and copies of the internal revenue service forms, if applicable, shall be attached:

(1) A description of the cards that comprised the winning poker hand for that game;

(2) a description of the cards that comprised the winning bad beat hand;

(3) the name of the person that had the winning poker hand for that game;

(4) the name of the person that had the winning bad beat hand;

(5) the names of the other players in the game; and

(6) the amount won by each person.

(c) Surveillance staff shall be notified and shall visually verify all winning hands when a bad beat or special hand is won. The verification by surveillance shall be documented in the surveillance log.

(d) The amount of primary bad beat and any special hand shall be prominently displayed at all times in the poker room, and the amount displayed shall be promptly updated at least once each gaming day by adding the correct percentage of funds that were collected from the previous gaming day. If the bad beat is won and the amount displayed has not yet been updated, the poker room supervisor shall contact accounting and update the bad beat amount before paying the winners.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-46 Gaming table drop device characteristics

(a) Each gaming table in the gaming facility shall have an attached drop device for the following items:

(1) Deposited currency;

(2) copies of table transaction documents; and

(3) mutilated chips.

(b) Each gaming table drop device shall have the following features:

(1) A lock that secures the drop device to the gaming table;

(2) a lock that secures the contents of the drop device from being removed without authorization;

(3) a slot opening or mechanism through which all currency, documents, and mutilated chips shall be inserted;

(4) a mechanical device that shall automatically close and lock the slot opening upon removal of the drop device from the gaming table; and

(5) a marking that is permanently imprinted and clearly visible and that identifies the game and table number to which it is attached.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-47 Emergency gaming table drop devices; drop procedures

(a) The facility manager shall maintain emergency gaming table drop devices with the same physical characteristics as those specified in K.A.R. 112-108-46, except for the game and table number markings. The emergency drop device shall be permanently marked with the word "EMERGENCY" and shall have an area for the temporary marking of the game and table number.

(b) Emergency drop devices shall be maintained in the soft count room or in a secured area as approved by the commission. The storage location, controls, and authorized access shall be described in the internal control system.

(c) At least two individuals shall be responsible for performing the emergency drop. One individual shall be a security department employee, and one individual shall be a level I or level II employee independent of the table games department. The table games department shall notify the commission security agent on duty that an emergency drop is needed. Security staff shall notify surveillance that an emergency drop is needed.

(d) The internal control procedures for emergency drop devices shall include the following items:

(1) Procedures for retrieval of the emergency drop device;

(2) the process for obtaining drop device release keys;

(3) procedures for removal of the drop device; and

(4) the location and safekeeping of the replaced drop device.

(e) All contents removed during the emergency drop shall be counted and included in the next count.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-48 Procedures for the collection and transportation of drop devices

(a) Each facility manager shall submit the current drop schedule to the commission's security agent showing the times and days when the drop devices will be removed from the gaming tables. At a minimum, the gaming table drop devices shall be dropped at the end of each gaming day.

(b) Each facility manager shall be allowed to conduct drops while patrons are present in accordance with commission-approved drop procedures.

(c) The internal control system shall state which job titles will participate in each drop ensuring that there are at least two employees, one of whom shall be a security employee. The actual removal of the drop devices from the gaming tables shall be performed by an employee independent of the table games department.

(d) The collection and transportation of gaming table drop devices containing funds shall be conducted using locked storage carts that shall be escorted by a security department employee at all times.

(e) The collection and transportation procedures of each type of drop device shall be described in the internal control system, including alternative procedures for malfunctions, emergencies, and occasions when multiple trips are required to transport the drop devices to the count room.

(f) Access to stored drop devices that contain funds shall be restricted to authorized members of the drop and count teams.

(g) Each drop device collection process, including transportation of drop devices, shall be continuously monitored by surveillance personnel and recorded.

(h) Each drop and count team member, except security department employees, assigned to the collection of drop devices shall wear a one-piece, pocketless jumpsuit, or other apparel approved by commission, as supplied by the facility manager. Drop apparel shall be issued immediately before use by the facility manager.

(i) A security department employee shall be present for and observe the entire drop process. All drop devices shall be observed by security staff from the time the drop devices are no longer secured in the gaming device until the drop devices are secured in the respective count rooms.

(j) All drop devices shall be transported to the soft count room. The facility manager shall describe, in the internal control system, security procedures to be used when the empty drop storage carts must be stored elsewhere because of space limitation in the count rooms.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-49 Exchange and storage of foreign chips

(a) Foreign chips shall mean chips that are not authorized for use at a specific gaming facility.

(b) Foreign chips inadvertently received in the rake shall be recorded as drop for adjusted gross receipt purposes.

(c) Foreign chips shall be separated from the facility manager's chips and stored in a locked compartment in the main bank or vault.

(d) The internal control system shall describe procedures for the storage of and accountability concerning foreign chips.

(e) Facility managers exchanging foreign chips with other gaming facilities shall ensure that each employee performing the exchange is independent of the transaction.

(f) Foreign chips shall be exchanged only for an equal value of the facility manager's chips, a check, or cash.

(g) Each facility manager shall maintain documentation of the exchange of foreign chips. The documentation shall include the signatures of all the individuals involved in the exchange and an inventory of all the items exchanged.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-50 Procedures for monitoring and reviewing game operations

(a) Each facility manager shall establish procedures for monitoring and reviewing daily table games transactions for the following activities:

(1) Table games;

(2) gaming facility cashiering;

(3) currency transaction reporting;

(4) sensitive key access; and

(5) reconciliation of numerical sequence of forms used, matching and reviewing all copies of forms, matching computer monitoring system reports with actual fill and payout forms, and examination of voided forms.

(b) The procedures in subsection (a) shall include a description of the computation of the unredeemed liability and the inventory of chips in circulation and reserve.

(c) Each facility manager shall establish procedures for the documentation of resolving questions raised during the review and monitoring of daily gaming transactions.

(d) Each facility manager shall establish procedures for the documentation of the criteria for determining deviations from expected results of gaming operations that require further investigations and the procedures for conducting and recording the results of such investigations. This shall include the notification of a commission agent.

(e) The accounting department shall perform a monthly general ledger reconciliation of the following:

(1) Adjusted gross receipts;

(2) cage accountability;

(3) chip liability; and

(4) progressive jackpot liability.

(f) Each gaming facility's accounting department shall review on a weekly basis the master game report for any unusual variances from the prior week.

(g) The accounting department for each facility manager shall perform daily audits of the following:

(1) Table games;

(2) cashier's cage;

(3) player tracking; and

(4) any other areas deemed appropriate by the executive director.

(h) The daily audits specified in subsection (g) shall indicate the individual performing the audit and the individual reviewing the audit performed.

(i) Table game procedures shall be performed daily for both computerized and manual forms and shall include, at a minimum, the following:

(1) Trace table game fills and credit slips originals to duplicate copies and to orders for fill and credits to verify agreement;

(2) review the table game fills and credit slips for the proper number of authorized signatures, proper date or time, and accurate arithmetic;

(3) review all voided table game fills and credits for appropriate handling and required number of authorized signatures. Ensure that all appropriate forms are attached;

(4) verify that credits and fills are properly recorded for the computation of win;

(5) trace opening drop cards to the previous shift's closing inventory slip to verify agreement and test for completeness and propriety;

(6) trace the detail from the master gaming report into the accounting entries recording the transactions and to the total cash summary; and

(7) perform any other procedures deemed necessary by the executive director.

(j) All variances or discrepancies in the daily audits specified in subsection (g) shall be investigated, recorded, and reported to the head of the accounting department or equivalent position. The investigation information shall be made available upon demand by the commission staff.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-51 Maintaining table game statistical data

(a) Each facility manager shall maintain records showing the statistical drop, statistical win, and statistical win-to-drop percentages for each gaming table and type of game. These records shall be maintained by day, cumulative month-to-date, and cumulative year-to-date.

(b) Each facility manager shall prepare and distribute statistical reports to gaming facility management on at least a monthly basis. Fluctuations outside of the standard deviation from the base level shall be investigated, and the results shall be documented in writing and retained, with a copy submitted to the commission. For the purposes of this regulation, the "base level" shall be defined as the facility manager's win-to-drop percentage for the previous business year or previous month in the initial year of operations.

(c) The gaming facility management shall investigate with pit supervisory personnel any fluctuations outside of the standard deviation from the base level in table game statistics. At a minimum, investigations shall be performed for a month for all percentage fluctuations in excess of three percent from the base level. The results of each investigation shall be documented in writing and maintained for at least seven years by the licensee.

(d) Reports of daily table game drop, win or loss, and percentage of win or loss shall be given to the commission, as requested. In addition, if gaming facility management has prepared an analysis of specific table wins, losses, or fluctuations outside of the standard deviation from the base level, these reports shall also be given to the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-52 Required internal audits

(a) The internal audit procedures specified in this regulation shall be conducted on at least a semiannual basis, except for the annual cash count. If a procedure does not apply to the operations of the facility manager, this fact shall be noted in the audit report.

(b) Table game audit procedures, which shall be performed by a member of the facility's audit department, shall include the following requirements:

(1) Five table openings and five table closings shall be observed for compliance with the commission-approved internal controls and this article. The related documentation shall be reviewed for accuracy and required information.

(2) A total of 10 table fills and three table credits shall be observed. The observations shall occur over at least three different gaming days. If a member of the facility's audit department is unable to observe three credit fills, the staff member shall verify procedures through interview.

(3) Table game drop and collection procedures as defined in the commission-approved internal controls and this article shall be observed and reviewed for two gaming days with one day being a 24-hour gaming day or a weekend day.

(4) Soft count procedures for table games and poker drops shall be observed and reviewed as defined in the commission-approved internal controls and this article, including the subsequent transfer of funds to the main bank or vault.

(5) Dice inspection procedures shall be observed and reviewed as outlined in the commission-approved internal controls and this article.

(6) Card inspection procedures shall be observed and reviewed as defined in the commission-approved internal controls and this article.

(7) Card and dice inventory control procedures shall be reviewed and verified.

(8) Statistical reports for table game drop, win, and win-to-drop percentages shall be reviewed to determine if fluctuations in excess of three percent from the base level are investigated.

(9) Supervision in the pits shall be verified as required by the commission-approved internal controls and this article.

(10) Dealer tip collection, count verification, and recording procedures shall be observed.

(11) Table game operations shall be observed to ensure compliance with the commission-approved internal controls and this article pertaining to table games, including poker. This observation shall include a representative sample of all table games over a two-day observation period.

(c) Gaming facility cashiering shall be verified by a member of the facility's internal audit department to ensure that any changes to the chip inventory ledgers during the semiannual audit period are documented and the required signatures are present on the ledger or the supporting documentation.

(d) Adjusted gross receipts shall be reconciled by a member of the facility's internal audit department against the following:

(1) The adjusted gross receipts from the table games, cage accountability, chip liability, and progressive jackpot liability. A copy of the reconciliation shall be included in the internal audit report;

(2) a two-day sample of gaming source documents, including table fill slips, table credit slips, and opener or closer slips. These gaming source documents shall also be reviewed in this process for accuracy and completion, as defined in the commission-approved internal controls and this article; and

(3) the transactional data in the central computer system.

(e) On an annual basis, the internal audit department shall conduct an observation of a complete physical count of all cash and chips in accordance with guidelines issued by the executive director. The count shall not be conducted during the last two months of a fiscal year.

(1) The executive director shall be notified 30 days in advance of the count. At the executive director's discretion, commission representatives may be present.

(2) Management staff may be notified no more than 24 hours in advance of the count to ensure that adequate staff is on duty to facilitate access to all areas being counted.

(3) All count sheets shall be signed by each individual performing the inventory.

(4) A summary of the inventory total for each count sheet, along with all shortages and overages and the signed count sheets, shall be included in the internal audit report.

(5) The cash count of cage windows and of the main bank shall be conducted by a member of the facility's internal audit department when the location is closed, unless otherwise approved by the executive director.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-53 Found items

All cash, chips, tickets, cards, dice, gaming equipment, records, and any other items found in unauthorized or suspicious locations or circumstances shall be reported by the finder to the commission security agent on duty.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-54 Waiver of requirements

(a) On the commission's initiative, one or more of the requirements of this article applicable to table games may be waived by the commission upon a determination that the nonconforming control or procedure meets the operational integrity requirements of the act and this article.

(b) A facility manager may submit a written request to the commission for a waiver for one or more of the requirements in this article. The request shall be filed on an amendment waiver and request form and shall include supporting documentation demonstrating how the table game controls for which the waiver has been requested will still meet the operational integrity requirements of the act and this article.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-55 Shipment of table games and table game mechanisms

(a) Each facility manager shall ensure that the shipment of any table game or table game mechanism for use in a gaming facility shall be approved in advance by the executive director. The person causing the shipment shall notify the executive director of the proposed shipment at least 15 days before the shipment, unless otherwise approved by the executive director. The notice shall include the following information:

(1) The name and address of the person shipping the table game or table game mechanism;

(2) the name and address of the person who manufactured, assembled, distributed, or resold the table game or table game mechanism, if different from the person shipping the item;

(3) the name and address of a new owner if ownership is being changed in conjunction with the shipment;

(4) the method of shipment and the name and address of the third-party carrier, if applicable;

(5) the name and address of the person to whom the table game or table game mechanism is being sent and the destination of the item, if different from that address;

(6) the quantity of table games or table game mechanisms being shipped and the manufacturer's make, model, and serial number of each item;

(7) the expected date and time of delivery to, or removal from, any authorized location within this state;

(8) the port of entry or exit, if any, of the table game or table game mechanism if the origin or destination of the table game or table game mechanism is outside the continental United States; and

(9) the reason for shipping the table game or table game mechanism.

(b) Each shipment of table games or table game mechanisms shall be sealed before being transported. On arrival at the gaming facility, the shipment shall not be opened or inventoried until the seal is witnessed and broken by an agent of the commission. An agent of the commission shall verify that each table game and table game mechanism is unloaded, inventoried, and compared to the notice required in subsection (a).

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective Jan. 8, 2010; amended April 1, 2011.)

Kan. Admin. Regs. § 112-108-56 Handling chips

A dealer shall "prove chips" when opening or closing a table, filling a table, or exchanging chips for a patron by displaying and counting the chips in full view of either of the following, in accordance with the facility's procedures:

(a) Surveillance and either the pit manager or an employee in a higher position; or

(b) surveillance and the affected patron.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective Jan. 8, 2010.)

Kan. Admin. Regs. § 112-108-57 Progressive table games

(a) A facility manager shall place a table game that offers a progressive jackpot only if the executive director has approved the following:

(1) The initial and reset amounts for the progressive meters;

(2) the system for controlling the keys and applicable logical access controls to the table games;

(3) the proposed rate of progression for each jackpot;

(4) the proposed limit for progressive jackpot, if any; and

(5) the calculated probability of winning each progressive jackpot. The probability shall not exceed 50 million to one.

(b) Progressive meters shall not be reset or reduced unless one of the following occurs:

(1) The amount indicated has been actually paid to a winning patron.

(2) The progressive jackpot amount won by the patron has been recorded in accordance with a system of internal controls approved by the commission.

(3) The progressive jackpot has been transferred to another progressive table game and the transfer has been approved by the executive director.

(4) The change is necessitated by a meter malfunction, and the commission has been notified of the resetting in writing.

(c) A facility manager shall not alter the odds of winning a progressive jackpot unless the jackpot has been transferred to another progressive table game in accordance with subsection (d).

(d) A facility manager may limit, transfer, or terminate a progressive jackpot or progressive game offered on the gaming floor under any of the following circumstances:

(1) A progressive jackpot may be limited if the payout limit is greater than the payout amount displayed on the progressive jackpot meter to patrons. The facility manager shall provide notice to the commission of the imposition or modification of a payout limit on a progressive meter concurrent with the setting of the payout limit.

(2) A progressive jackpot game may be terminated concurrent with the winning of the progressive jackpot if the progressive controller was configured to automatically establish a fixed reset amount with no progressive increment.

(3)A progressive jackpot amount may be transferred from a gaming floor. The facility manager shall give notice to the commission of its intent to transfer the progressive jackpot at least 30 days before the anticipated transfer, and the facility manager shall conspicuously display the facility manager's intent to transfer the progressive jackpot on the front of each affected table game for at least 30 days. To be eligible for transfer, the progressive jackpot shall be transferred in its entirety and shall meet one of the following conditions:

(A) Be transferred to the progressive meter for a table game with the same or greater probability of winning the progressive jackpot, with the same or lower wager requirement to be eligible to win the progressive jackpot, and with the same type of progressive jackpot;

(B) be transferred to the progressive meters of two separate table games if each table game progressive system to which the jackpot is transferred individually meets the requirements of paragraph (d)(3)(A); or

(C) be transferred to the most similar table game progressive system that is available if approved by the executive director.

(4)A progressive jackpot on a stand-alone progressive table game system may be removed from a gaming floor if notice of intent to remove the progressive jackpot meets the following conditions:

(A) The notice is conspicuously displayed on the front of each table game for at least 30 days.

(B) The notice of intent is provided in writing to the commission at least 30 days before the removal of the progressive jackpot.

(e)The amount indicated on the progressive meter on each table game governed by subsection (a) shall be recorded by the facility manager's accounting department on a progressive electronic gaming summary report at least once every seven calendar days. Each report shall be signed by the person preparing the report. If the report is not prepared by the accounting department, the progressive electronic gaming summary report shall be forwarded to the accounting department at the end of the gaming day on which the report is prepared. An employee of the accounting department shall be responsible for calculating the correct amount that should appear on a progressive meter. If an adjustment to the progressive meters is necessary, the adjustment shall be made by a member of the EGM department as follows:

(1) Supporting documentation shall be maintained to explain any addition or reduction in the registered amount on the progressive meter. The documentation shall include the date, the asset number of the table game, the amount of the adjustment, and the signatures of the accounting department member requesting the adjustment and the EGM department member making the adjustment.

(2) The adjustment shall be effectuated within 48 hours of the meter reading.

(f) Except as otherwise authorized by this regulation, each table game offering a progressive jackpot that is removed from the gaming floor shall be returned to or replaced on the gaming floor within five gaming days. The amount on the progressive meter on the returned or replacement table game shall not be less than the amount on the progressive meter at the time of removal, unless the amount was transferred or paid out in accordance with these regulations. If a table game offering a progressive jackpot is not returned or replaced, any progressive meter amount at the time of removal shall, within five days of the table game's removal, be added to a table game offering a progressive jackpot approved by the executive director. The table game shall offer the same or greater probability of winning the progressive jackpot and shall require the same or lower denomination of currency to play that was in use on the table game that was removed.

(g) If a table game is located adjacent to a table game offering a progressive jackpot, the facility manager shall conspicuously display on the table game a notice advising patrons that the table game is not participating in the progressive jackpot of the adjacent table game.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2008 Supp. 74-8772; implementing K.S.A. 2008 Supp. 74-8752 and 74-8772; effective Jan. 8, 2010.)

Article 110 Technical Standards

Kan. Admin. Regs. § 112-110-1 Adoptions by reference

The following texts by gaming laboratories international (GLI) are hereby adopted by reference:

(a) "GLI-11: gaming devices in casinos," version 2.0, dated April 20, 2007, except the following:

(1) Each reference to a "75% payout percent age," which shall be replaced with "an average of not less than 87% of the amount wagered over the life of the machine";

(2) section 1.1;

(3) section 1.2;

(4) section 1.4; and

(5) the section titled "revision history";

(b) "GLI-12: progressive gaming devices in casinos," version 2.0, dated April 20, 2007, except the following:

(1) Section 1.1;

(2) section 1.2;

(3) section 1.4; and

(4) the section titled "revision history";

(c) "GLI-13: on-line monitoring and control systems (MCS) and validation systems in casinos," version 2.0, dated April 20, 2007, except the following:

(1) Section 1.3;

(2) section 1.5;

(3) the "note" in section 3.4.3; and

(4) the section titled "revision history";

(d) "GLI-15: electronic bingo and keno systems," version 1.2, dated April 12, 2002, except the following:

(1) Section 1.3;

(2) section 1.5; and

(3) the section titled "revision history";

(e) "GLI-16: cashless systems in casinos," version 2.0, dated April 20, 2007, except the following:

(1) Section 1.2;

(2) section 1.4; and

(3) the section titled "revision history";

(f) "GLI-17: bonusing systems in casinos," version 1.2, dated February 27, 2002, except the following:

(1) Section 1.2;

(2) section 1.4; and

(3) the section titled "revision history";

(g) "GLI-18: promotional systems in casinos," version 2.0, dated April 20, 2007, except the following:

(1) Section 1.2;

(2) section 1.4; and

(3) the section titled "revision history";

(h) "GLI-20: kiosks," version 1.4, dated July 1, 2006, except the following:

(1) Section 1.3; and

(2) the section titled "revision history";

(i) "GLI-21: client-server systems," version 2.1, dated May 18, 2007, except the following:

(1) Section 1.1;

(2) section 1.2;

(3) section 1.4;

(4) each reference to a "75% payout percentage," which shall be replaced with "an average of not less than 87% of the amount wagered over the life of the machine"; and

(5) the section titled "revision history";

(j) "GLI-24: electronic table game systems," version 1.2, dated September 6, 2006, except the following:

(1) Section 1.1;

(2) section 1.3;

(3) each reference to "75% payout percentage," which shall be replaced with "an average of not less than 87% of the amount wagered over the life of the machine"; and

(4) the section titled "revision history";

(k) "GLI-25: dealer controlled electronic table games," version 1.1, dated September 8, 2006, except the following:

(1) Section 1.1;

(2) section 1.3; and

(3) the section titled "revision history";

(l) "GLI-26: wireless gaming system standards," version 1.1, dated January 18, 2007, except the following:

(1) Section 1.1;

(2) section 1.2;

(3) section 1.4; and

(4) the section titled "revision history"; and

(m) "GLI-28: player user interface systems," version 1.0, dated February 14, 2011, except section 1.1.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2010 Supp. 74-8772; implementing K.S.A. 2010 Supp. 74-8750 and 74-8772; effective May 1, 2009; amended Dec. 9, 2011.)

Kan. Admin. Regs. § 112-110-2 Central computer system accounting

(a) Each central computer system (CCS) provided to the commission shall include an accounting and auditing mechanism.

(b) Each CCS shall be capable of supporting a network of 15,000 EGMs and the location controllers and validation stations needed to support the EGMs.

(1) The CCS computers shall obtain all meter reading data in real time, which shall be no longer than two and one-half minutes after any meter acquisition request.

(2) The CCS shall keep accurate records, maintaining a total of at least 14 digits, including cents, in length for each type of datum required and of all income generated by each electronic gaming machine (EGM).

(3) The CCS shall be capable of monitoring the operation of each game and EGM.

(4) The CCS shall be capable of creating reports from the following information by EGM and by game, if applicable:

(A) The number of cents wagered;

(B) the number of cents won;

(D) the number of cents accepted from a printed ticket;

(E) the number of cents accepted from each coin, bill, ticket, or other instrument of value;

(F) the number of cents electronically transferred to the EGM;

(G) the number of cents electronically transferred from the EGM;

(H) the number of cents paid out by hand pay, which means the payment of credits that are not totally and automatically paid directly from an EGM, or canceled credit;

(I) the number of cents paid out by jackpot;

(J) the number of cumulative credits representing money inserted by a player;

(K) the number of cents on the credit meter;

(L) the number of games played;

(M) the number of games won;

(N) the number of times the logic area was accessed; and

(O) the number of times the cash door was accessed.

(d) The CCS shall be capable of generating the following reports:

(1) Gaming facility performance reports. The gaming facility performance report for the previous period shall be available to be printed on the first day of the next period. Each gaming facility performance report shall be available to be printed for all facilities and for specific facilities. The report shall include data from each EGM in play at the gaming facility. Each report shall contain the following information:

(A) EGM serial number;

(B) the number of cents played;

(D) net terminal income, which is the amount played minus the amount won;

(E) Kansas lottery's administrative expenses;

(F) gross profits;

(G) drop amount; and

(H) drop time frame;

(2) a report that calculates the prize payout percentage of each EGM on the basis of cents won divided by cents played;

(3) a report that calculates cents played less cents won, divided by the number of EGMs in play at a facility, during the period;

(4) a report that compares cents played less cents won against total cents in less total cents out by EGMs. This report shall also include the value on the EGM's credit meter;

(5) a daily report showing the total number of EGMs in play and cents played less cents won;

(6) performance reports by brand of EGM, game name, game type, and facility number;

(7) a report by EGM number;

(8) a report of nonreporting EGMs by facility and by EGM supplier, summarizing the last polled date, EGM manufacturer and serial number, reason for error, and poll address;

(9) a report of nonreporting intermediary servers that are communicating with the EGMs but not reporting data by facility and by EGM that summarizes the last polled date, EGM manufacturer and serial number, reason for error, and poll address;

(10) a financial summary report listing facility summaries by date, amount played, amount won, net revenue, number of EGMs, and average net revenue by EGM;

(11) a transaction report listing facility, by EGM supplier and by EGM, that summarizes the electronic game machine manufacturer and serial number, cents in, cents out, net revenue, amount played, amount won, progressive jackpot contribution, win frequency, payback percentage, net jackpot won, number of times each game was played, and number of times each play resulted in a win;

(12) a report containing a record of all security events by EGM or event type over a specific time range; and

(13) a financial report based upon a user-specified time frame, by EGM, that summarizes cents in, cents out, net revenue, cents played, cents won, progressive jackpot contribution, win frequency, payback percentage, net jackpot won, games played, and games won.

(e) Each report specified in this regulation shall be available on demand and, if applicable, cover a period determined by Kansas lottery or commission auditing staff. On-demand reporting shall be sortable by date, EGM, game, EGM manufacturer, location, and facility. The time period of each report may be daily, weekly, monthly, and yearly, and sufficient data shall be resident on the database to accommodate a facility manager's need to report on a basis specified by the Kansas lottery or commission auditing staff.

(f) Each EGM event and all configuration data, including configurable pay table information, if applicable, shall be retained for each individual EGM in a backed-up CCS system.

(g) All security event data shall be retained for each individual EGM as well as accumulated for each facility.

(h) All game play statistics, EGM event data, and configuration data, including configurable pay table information, if applicable, shall be retained for each EGM in a backed-up CCS system.

(i) All accounting and security event data shall be retained and shall be accessible for at least seven years.

(j) All accounting and security event data shall be retained for each individual EGM and accumulated for each facility.

(k) Each CCS provider shall provide an invoicing software package for facility licensees. That software package shall allow the Kansas lottery to create periodic statements that interface with an electronic funds transfer account. The CCS shall be able to perform the following functions:

(1) Provide a gross terminal income summary to facilitate daily electronic funds transfer (EFT) sweeps that shall, at a minimum, contain the daily number of EGMs reporting, the daily cash in divided by cash out and daily cash played divided by cash won, daily gross EGM income, daily net balances, adjustments, progressive contributions, and jackpot reset values. The gross terminal income summary reports shall show the information by each EGM as well as by track and by total system, retailer, facility manager, and county;

(2) conduct downloading to tape, disk, or other standard data storage devices of the information necessary to facilitate the EFT daily sweep of each facility's net EGM income;

(3) create a balanced data file of general ledger journal entries to record all lottery activities and integrate into general ledger software on a daily basis and on a multiple day basis, as needed;

(4) provide payout analyses that indicate performance by EGM; and

(5) provide reports in a format as specified, by period to period, by the Kansas lottery.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8749 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-110-3 Central computer system security

(a) Each CCS's database shall contain LFG data for at least the prior 24 months. Older data shall also be available from archives for at least seven years. The CCS's vendor shall provide archived data within 24 hours of a request for the data from the Kansas lottery or the commission.

(b) Each CCS shall be capable of the following:

(1) Receiving and retaining a record of events that affect security, including all door openings, stacker access, and signature failure;

(2) receiving and retaining a record of events that affect the LFG state, including power on, power off, and various faults and hardware failures;

(3) receiving and retaining a record of events that affect LFG integrity, including random access memory (RAM) corruption and RAM clear;

(4) receiving and retaining a record of events that affect the status of communication between all components including the LFG, including loss of communication;

(5) reporting of all events specified in this article;

(6) receiving and retaining a record of any other events as specified in writing by the Kansas lottery or the commission; and

(7) automatic reporting of faults that require a manual reactivation of the LFG. These faults shall include the following:

(A) Logic area cabinet access;

(B) LFG RAM reset;

(D) unrecoverable hardware faults; and

(E) a failed signature check.

(c)(1) A record of each of the events specified in subsection (b) shall be stored at the central point of the CCS on a hard drive in one or more files of an approved structure.

(2) The record of each stored event shall be marked by a date and time stamp.

(3) Each event shall be detected and recorded to the database and posted to a line printer or terminal monitor within 10 seconds of the occurrence.

(d) Each CCS shall meet the following security requirements:

(1) The ability to deny access to specific databases upon an access attempt, by employing passwords and other system security features. Levels of security and password assignment for all users shall be solely the function of the Kansas lottery;

(2) the ability to allow multiple security-access levels to control and restrict different classes of access to the system;

(3) password sign-on with two level codes comprising the personal identification code and a special password;

(4) system access accounts that are unique to the authorized personnel;

(5) the storage of passwords in an encrypted, nonreversible form;

(6) the requirement that each password be at least 10 characters in length and include at least one nonalphabetic character;

(7) password changes every 30 days;

(8) prevention of a password from being used if the password has been used as any of the previous 10 passwords;

(9) the requirement that the CCS lock a user's access upon three failed attempted log-ins and send a security alert to a line printer or terminal monitor;

(10) the requirement that connectivity to any gaming system from a remote, non-gaming terminal be approved by the executive director and reported to the Kansas lottery, in accordance with K.A.R. 112-107-31. Remote connections shall employ security mechanisms including modems with dial-back, modems with on-off keylocks, message encryption, logging of sessions, and firewall protection;

(11) the ability to provide a list of all registered users on the CCS, including each user's privilege level;

(12) the requirement that approved software and procedures for virus protection and detection, if appropriate, be used;

(13) the requirement that only programs, data files, and operating system files approved by the Kansas lottery and the commission reside on hard drive or in the memory of the CCS computers;

(14) the requirement that nonroutine access alerts and alarm events be logged and archived for future retrieval;

(15) the requirement that software signatures be calculated on all devices at all facilities and the signatures be validated by devices on the CCS network. These devices shall include gaming equipment, location controllers, and cashier stations. These devices shall exclude non-gaming devices, including dumb terminals;

(16) audit trail functions that are designed to track system changes;

(17) time and date stamping of audit trail entries;

(18) capability of controlling data corruption that can be created by multiple log-ons;

(19) the requirement that the gaming software be maintained under an approved software change control system;

(20) the ability to send an alert to any terminal monitor and line printer for any security event that is generated at an LFG or in the system. The system shall allow the system administrator to determine which events should be posted. The events shall be filtered by location;

(21) equipment with a continuous power supply;

(22) the capability of on-line data redundancy if a hard disk peripheral fails during operation; and

(23) provision of a secure way through a graphic user interface for an auditor to make adjustments to the system.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2009 Supp. 74-8772; effective May 1, 2009; amended April 1, 2011.)

Kan. Admin. Regs. § 112-110-4 Central computer system; configuration and control

(a) Each CCS shall be able to begin or end gaming functions by a single command for any of the following:

(1) An EGM;

(2) a group of EGMs; or

(3) all EGMs.

(b) Automatic and manual shutdown capabilities shall be available from the CCS.

(d) Each CCS shall maintain the following information for each EGM or connected device:

(1) Location;

(2) device description, including serial number and manufacturer;

(3) game name;

(4) game type;

(5) configuration, including denomination, software identification number, software version installed on all critical components, game titles available, and progressive jackpot status;

(6) history of upgrades, movements, and reconfigurations; and

(7) any other relevant information as deemed necessary by the Kansas lottery or the commission.

(e) Each CCS shall be able to individually and collectively enroll EGMs.

(f) Each CCS shall be able to configure each EGM during the initial enrollment process so that the EGM's system-dependent parameters, including denomination, money units, and pay tables, can be programmed or retrieved from the EGMs and validated by the CCS.

(g) Each CCS shall be able to support continuous gaming operations and shall be able to enable and disable electronic gaming machines based on a daily schedule.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8749 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-110-5 Central computer system; software validation

(a) Each CCS shall be programmed to initiate a signature validation when an EGM is enrolled.

(b) If an EGM fails the signature validation, the EGM shall not be placed into gaming mode without manual intervention at the CCS level.

(1) Game software image storage in which game software images existing in the EGM are also stored in the CCS; or

(2) precalculated signature results storage in which the table of signature results have a minimum of five entries and those entries are generated from randomly selected seed values for each game and repopulated on a daily basis. The utility program used to generate the signature check result table shall be approved by the Kansas lottery and the commission's electronic security staff.

(d) The game software image and precalculated signature results shall be secured, including by means of password protection and file encryption.

(e) If the image used for validating the EGM software is comprised of more than one program, both of the following requirements shall be met:

(1) The CCS shall have a method to allow each component to be loaded individually.

(2) The CCS shall combine the individual images based upon the scheme supplied by the EGM manufacturer to create the combined image.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8749 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-110-6 Central computer system communication

(a) Each CCS provider shall furnish specifications, protocols, and the format of messages to and from the central computer system.

(b)(1) The documentation of the communications protocol shall explain all messages, conventions, and data formats and shall be submitted for approval before delivery of the protocol to EGM manufacturers. Approval shall be obtained before distribution of the communications protocol may commence.

(2) The documentation shall detail the following:

(A) The data format, including the following:

(i) Byte ordering;

(ii) bit order where bits are referenced; and

(iii) negative number format;

(B) message framing, including the following:

(i) Header field;

(ii) address field;

(iii) control field;

(iv) information or data;

(v) frame check sequence; and

(vi) trailer field;

(D) packet termination indication;

(E) padding techniques;

(F) special characters used and the function of each character;

(G) general principles of data exchange; and

(H) any other specifications required to support the functionality of the system.

(c) All communications between the host system components shall be encrypted with an encryption tool, which may include data encryption standard approved by the commission's auditing staff. Each proprietary encryption system shall be approved by the Kansas lottery before its use.

(d) If the CCS finds an EGM that is not responding within a set number of retries, the EGM shall be logged as not responding and the system shall continue servicing all other EGMs in the network.

(e) Each CCS shall be wired directly to all EGMs.

(f) Each CCS shall be capable of monitoring the functioning of each EGM.

(g) If a CCS provider proposes a proprietary communications protocol, the provider shall supply a perpetual software license to the Kansas lottery at no additional charge. If a proprietary protocol is utilized, the protocol shall be provided to any vendor designated by the Kansas lottery free of charge within one week of contract signing.

(h) If a CCS uses an industry standard protocol, the provider shall supply and maintain an interoperability document that indicates all of the functionality within the protocol that is used and any additional implementation notes that apply. Each deviation from the protocol shall be approved by the Kansas lottery.

(i) The communication of each CCS shall use cyclic redundancy checks (CRCs).

(j) The communication of each CCS shall withstand error rates based on the protocols in use.

(k) The communications protocol shall provide a method for the recovery of each message received in error or not received at all.

(l) Each CCS shall acknowledge all data messages that the CCS receives.

(m) Any CCS may include a negative acknowledgment (NAK) for messages received in error or messages that are received outside of specified time periods.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8749 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-110-7 Central computer system; protocol simulator

(a) Each CCS shall include a protocol simulator to enable the development of the communications protocol and to assist in acceptance testing.

(b) Each simulator shall support and test all of the transactions and message types that are to be used by the communications protocol.

(c) Each simulator shall be capable of generating common communication errors to confirm that the EGM software is properly handling the event.

(d) Along with the protocol simulator, each CCS provider shall furnish the following:

(1) An operations manual or other suitable documentation;

(2) a definition of the message structure, types, and formats in machine-readable form;

(3) a standard for all program modules, including naming conventions, definitions of module names, and comments; and

(4) a diagram for the communications protocol.

(e) Each simulator shall run on standard computer equipment, including a personal computer.

(f) The communications protocol shall contain only codes or bytes that are defined in the communications protocol.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8749 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-110-8 Central computer system; general hardware specifications

(a) Each CCS shall be a state-of-the-art, fault-tolerant, redundant, and high-availability system. Any CCS may be configured in a duplex, triplex, or multiredundant configuration. All computer system components and peripheral equipment, including frontend communications processors, system printers, and tape drives, shall be fault-tolerant and redundant and maintain high availability. No performance degradation or loss of system functionality shall occur with the failure of a single system component. The central computer system's storage management solution shall provide fault tolerance and scalability.

(b) The performance of each CCS shall match or exceed the performance of any similar systems installed by North American lotteries or gaming central control systems in casinos in the last three years.

(c) The functions of each CCS shall not interfere with players, employees who require real-time monitoring of security events, cashiers who handle financial transactions of the electronic gaming machines, or attendants who service the EGM.

(d) Performance of each CCS shall not degrade noticeably during ordinary functionality. The CCS shall provide capacity to accommodate EGM populations, play volumes, user sessions, and event recording consistent with all specifications.

(e) All hardware and ancillary peripherals comprising the CCS shall be new equipment that has not previously been used or refurbished.

(f) The supplier of each CCS shall be able to produce system checksums or comparable system file checker reports when requested by Kansas lottery or the commission.

(g) Each supplier of CCS hardware and software shall obtain written approval from the Kansas lottery director or the director's designee before making any enhancement or modification to the operating software.

(h) Each CCS supplier shall provide all hardware, operating system software, third-party software, and application software necessary to operate the CCS.

(i) Each CCS shall be able to operate 24 hours a day, seven days a week, with the database up and running. Off-hours backup shall be able to run without shutting down the database. The Kansas lottery shall be able to do a full system backup, which shall include backing up the operating system and any supplier software.

(j) The central processing unit and peripheral devices of each CCS shall employ physical security measures in the form of sealed casings, lockable containment, or any other means of physical security approved by the Kansas lottery and the commission.

(k) Each CCS shall be able to support gaming in at least seven gaming facilities in the state of Kansas.

(l) Each CCS shall have one or more management terminals located at each of the facilities. Management terminals may be accessed only with the permission of the Kansas lottery. A monitoring terminal shall also be located at the Kansas lottery headquarters.

(m) Each CCS shall have two or more monitoring terminals at each facility, as approved by the commission, with at least one terminal to be utilized by the commission. A monitoring terminal shall be located at the commission headquarters.

(n) The responsibility to audit all lottery gaming facility revenues shall rest with the commission. Each CCS supplier shall provide a separate data feed that contains the original accounting data from the EGM before any adjustments and means to reconcile the values or other means of validating any adjustments are made to any data on the system. This separate data feed shall be approved by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8749 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-110-9 Central computer system backup

(a) Each CCS supplier shall provide one or more remote backup systems that will take over for the primary site systems, if necessary. Redundant arrays of inexpensive disks (RAID) shall be used to protect key data at the remote site. Data recorded at the remote site shall always contain the most recent transactions. The facility networks shall be routed to permit transaction processing at the backup site. Other communications to permit Kansas lottery operations shall also connect to the backup site. The backup site system shall be able to be tested monthly to ensure that the remote site is fully functional.

(b) Each remaining system shall assume all system functions in case of a failure in one system, without loss or corruption of any data and transactions received before the time of the failure.

(c) Multiple components in the CCS shall have a time-synchronizing mechanism to ensure consistent time recording and reporting for all events and transactions.

(d) The remote backup systems shall have the same processing capacity and architecture as those of the central site systems.

(e) Primary site system recovery from a one-system failure shall be accomplished in no more than two minutes while still maintaining current transactions, including the ability to fully service the communications network supporting the EGM and management terminals.

(f) Backup site system recovery from a primary site failure shall be accomplished in less than 10 minutes without loss of transactions.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8749 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-110-10 Central computer system manuals

(a) Each CCS supplier shall provide the following manuals and diagrams for the CCS:

(1) Operation manuals;

(2) service manuals;

(3) CCS architecture diagrams; and

(4) other circuit diagrams.

(b) The required service manuals shall meet the following requirements:

(1) Accurately depict the CCS that the manual is intended to cover;

(2) provide adequate detail and be sufficiently clear in their wording and diagrams to enable a qualified repairperson to perform repair and maintenance in a manner that is conducive to the long-term reliability of the CCS;

(3) include maintenance schedules outlining the elements of the EGM that require maintenance and the frequency at which that maintenance should be carried out; and

(4) include maintenance checklists that enable EGM maintenance staff to make a record of the work performed and the results of the inspection.

(1) Accurately depict the CCS that the diagrams are intended to cover;

(2) provide adequate detail and be sufficiently clear in their wording and depiction to enable qualified technical staff to perform an evaluation of the design of the component; and

(3) be professionally drafted in order to meet the requirements specified in this subsection.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8749 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-110-11 Central computer system; support of progressive games

(a) As used within this regulation, the following terms shall have the meanings specified in this subsection:

(1) "Linked progressive games" means a group of EGMs at a gaming facility that offers the same game and involves a manner of wagering providing the same probability of hitting the combination that will award the progressive jackpot that increases by the same increments as the EGM is played.

(2) A "wide-area progressive game" means a game that consists of a group of EGMs located at two or more gaming facilities, linked to a single CCS computer that has a manner of wagering that will provide the same probability of hitting the combination that will award the progressive jackpot that increases, by the same increments, as the EGM is played.

(b) Each CCS shall be able to support a variety of different progressive jackpot games, including single-machine games, linked games at a gaming facility, and wide-area progressive games shared by two or more gaming facilities.

(c) The CCS communication for the wide-area progressive system shall be by means of dedicated on-line communication lines, satellite, or another preapproved communications system. All communication packets between each participating facility manager and the CCS shall be encrypted, and the encryption keys shall be alterable upon demand. The protocol shall ensure delivery of all information packets in a valid and correct form.

(d) The CCS computer's wide-area progressive gaming subsystem shall have the ability to monitor the opening of the front door of the EGM and the logic area of the EGM, and to report all these events to the CCS within one polling cycle.

(e) Each CCS shall have the ability to produce reports that demonstrate the method used to calculate the progressive jackpot amount, including the documentation of credits contributed from the beginning of the polling cycle and all credits contributed throughout the polling cycle that includes the jackpot signal. The method shall assume that credits contributed to the system after the jackpot win occurs, in real-time but during the same polling cycle, are contributed to the progressive jackpot amount before the win.

(f) Each CCS shall be able to produce fiscal reports that support and verify the economic activity of the games, indicating the amount of and basis for the current progressive jackpot amount. These reports shall include the following:

(1) An aggregate report to show only the balancing of the progressive link with regard to facilitywide totals;

(2) a detail report in a format that indicates for each EGM, summarized by location, the cash-in, cash-out, credits-played, and credits-won totals, as these terms are commonly understood by the Kansas lottery; and

(3) a jackpot contribution invoice that includes documentation of contributions by the following:

(A) Each of its participating EGMs;

(B) the credits contributed by each EGM to the jackpot for the period for which an invoice is remitted;

(D) any other information required by the Kansas lottery or the commission to confirm the validity of the facility manager's aggregate contributions to the jackpot amount.

This report shall be available for any facility manager participating in a wide-area progressive electronic gaming machine system.

(g) Each CCS shall be designed to have continuous operation of all progressive games.

(h) Each CCS shall have a method to transfer the balance of one progressive pool to another.

(i)(1) Each progressive controller linking one or more progressive EGMs shall be housed in a double-keyed compartment or an alternative approved by the Kansas lottery and the commission.

(2) The Kansas lottery or the Kansas lottery's designee shall be given possession of one of the keys, or the Kansas lottery's designee shall authorize each instance of access to the controller in advance. No person may have access to a controller without notice to the Kansas lottery.

(3) A progressive entry authorization log shall be included with each controller, and the log shall be completed by each person gaining entrance to the controller. The log shall be entered on a form provided by the Kansas lottery.

(4) If a progressive jackpot is recorded on any progressive EGM, the progressive controller shall be able to identify the EGM that caused the progressive meter to activate, and the progressive controller shall display the winning progressive amount.

(5) If more than one progressive EGM is linked to the progressive controller, the progressive controller may automatically reset to the minimum amount and continue normal play only if the progressive meter displays the following information:

(A) The identity of the EGM that caused the progressive meter to activate;

(B) the winning progressive amount; and

(6) A progressive meter or progressive controller shall keep the following information in nonvolatile memory, which shall be displayed upon demand:

(A) The number of progressive jackpots won on each progressive meter if the progressive display has more than one winning amount;

(B) the cumulative amounts paid on each progressive meter if the progressive display has more than one winning amount;

(D) the minimum amount or reset amount of the progressive payout for each meter displayed; and

(E) the rate of progression for each meter.

(7) Waivers may be granted by the Kansas lottery to ensure that individual EGMs and multiple EGMs linked to a progressive controller meet the requirements of this regulation.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8749 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-110-12 Central computer system; additional functionality

(a) Each CCS shall be able to support ticket in-ticket out (TITO) processes.

(b) Any CCS may perform the following:

(1) Downloading operating and game software to EGMs that use electronic storage media on which the operation software for all games resides or at a minimum approving, auditing, and verifying the downloading of software to EGMs;

(2) allowing gaming software to be driven by down-line loading on the communications line. Gaming software may be either solicited by the EGM or unsolicited; and

(3) allowing gaming software to be downloaded in a modular fashion with only the modules requiring a change being downloaded. Downloading shall not preclude continuous operation of the EGM network. The CCS provider shall detail for the Kansas lottery and the commission any particular download features of the software, including downloading in the background, eavesdropping, and compression.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8749 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-110-13 Central computer system; acceptance testing

(a) Each CCS supplier shall make that provider's system available for independent acceptance and compatibility testing.

(b) If a CCS fails the acceptance testing, the CCS supplier shall make all necessary modifications required for acceptance by the Kansas lottery and the commission within the time frame specified by the Kansas lottery and the commission.

(c) Each CCS supplier shall provide at least one test system, including all hardware and software, to the commission or its independent testing laboratory for the duration of the contract. The test system shall include any third-party software and licenses used by the system. The test system shall use the identical software that exists on the production system, though the test system may utilize similar but not identical hardware.

(d) Each CCS supplier shall provide a complete set of manuals at the beginning of acceptance testing. Updates to the manuals shall be supplied concurrently with any CCS modifications that result in updating the manual.

(e) A test system in addition to the system required in subsection (b) may be required if the Kansas lottery determines that a system shall be located at the Kansas lottery.

(f) The cost of initial acceptance testing by the Kansas lottery, the commission, and the commission's independent testing laboratory shall be paid by the CCS supplier. The cost of any testing resulting from system modifications or enhancements shall be paid by the CCS supplier. These costs shall include travel time and expenses for functionality that must be tested on-site or at an alternate location.

(g) Each CCS supplier shall be responsible for the consulting costs incurred by the commission and the Kansas lottery to develop the test scripts.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8749 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-110-14 Procedures for resolving EGM breaks in communication with the central computing system

(a) If one or more EGMs have an unscheduled break in communications with the central computer system for more than 60 seconds, unless another time is specified by the executive director, the following requirements shall be met:

(1) The supplier for the central computer system shall notify the lottery gaming facility's surveillance department of the break in communication.

(2) The lottery gaming facility's surveillance department shall notify the slot shift supervisor on duty or the person in an equivalent position of the break in communication.

(3) The lottery gaming facility's EGM department shall perform the following:

(A) Investigate the reason for the break in communication with the central computer system; and

(B) identify the party responsible for correcting the problem and a time frame for correction.

(b)(1) If one or more EGMs have an unscheduled break in communications with the central computer system for longer than 10 minutes, the supplier for the central computer system shall notify the commission personnel on duty.

(2) For communication breaks that last longer than 10 minutes, a determination shall be made by the commission as to whether to cease operation of the EGMs affected by the central communication system's break in communication. The following may be considered by the commission:

(A) The potential for any data loss;

(B) the projected length of outage;

(D) the proposed solution to the problem; and

(E) any other factor that arises.

(c) If one or more EGMs have an unscheduled break in communications with the central computer system for longer than 30 minutes, the supplier for the central computer system shall perform the following:

(1) Contact the facility manager slot shift supervisor on duty or the person in an equivalent position to assist in reestablishing communications; and

(2) send updated notification to the commission personnel on duty of the situation at least every two hours until the situation is resolved. When EGM communications have been restored, the supplier for the central computer system shall notify all parties involved.

(d) For the purpose of this regulation, notification may include automated electronic communications.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2010 Supp. 74-8772; effective Dec. 9, 2011.)

Article 111 Involuntary Exclusions

Kan. Admin. Regs. § 112-111-1 Involuntary exclusion list

(a) An "involuntary exclusion list" shall be created by the commission staff and shall consist of the names of people who the executive director determines meet any one of the following criteria:

(1) Any person whose presence in a gaming facility would be inimical to the interest of the state of Kansas or gaming in Kansas, including the following:

(A) Any person who cheats, including by intentionally doing any one of the following:

(i) Altering or misrepresenting the outcome of a game or event on which wagers have been made, after the outcome is determined but before the outcome is revealed to the players;

(ii) placing, canceling, increasing, or decreasing a bet after acquiring knowledge, not available to other players, of the outcome of the game or subject of the bet or of events affecting the outcome of the game or subject of the bet;

(iii) claiming or collecting money or anything of value from a game or authorized gaming facility not won or earned from the game or authorized gaming facility;

(iv) manipulating a gaming device or associated equipment to affect the outcome of the game or the number of plays or credits available on the game; or

(v) altering the elements of chance or methods of selection or criteria that determine the result of the game or amount or frequency of payment of the game;

(B) any person who poses a threat to the safety of the patrons or employees;

(D) persons with a documented history of conduct involving the disruption of a gaming facility;

(E) persons included on another jurisdiction's exclusion list; or

(F) persons subject to an order of the courts of Kansas excluding those persons from any gaming facility;

(2) any felon or person who has been convicted of any crime or offense involving moral turpitude and whose presence in a gaming facility would be inimical to the interest of the state of Kansas or of gaming in Kansas; or

(3) any person who has been identified by the director of security as being a criminal offender or gaming offender and whose presence in a gaming facility would be inimical to the interest of the state of Kansas or of gaming in Kansas.

(b) As used in this article, a person's presence shall be deemed "inimical to the interest of the state of Kansas or gaming in Kansas" if the presence meets any one of the following conditions:

(1) Is incompatible with the maintenance of public confidence and trust in the integrity of licensed gaming;

(2) is reasonably expected to impair the public perception of or confidence in the regulation or conduct of gaming; or

(3) creates or enhances a risk of unfair or illegal practices in the conduct of gaming.

(1) The nature and notoriety of the person to be excluded from gaming facilities;

(2) the history and nature of the involvement of the person with a gaming facility in Kansas or any other jurisdiction or with any particular licensee or licensees or any related company of any licensee;

(3) the nature and frequency of any contacts or associations of the person with any licensee; or

(4) any other factor reasonably related to the maintenance of public confidence in the regulatory process or the integrity of gaming in Kansas.

(d) The involuntary exclusion list shall contain the following information, if known, for each excluded person:

(1) The full name and all known aliases and the date of birth;

(2) a physical description;

(3) the date the person's name was placed on the list;

(4) a photograph, if available;

(5) the person's occupation and current home and business addresses; and

(6) any other relevant information as deemed necessary by the commission.

(e) The involuntary exclusion list shall be open to public inspection and shall be distributed by the executive director.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8752 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-111-2 Inclusion on list; notice

(a) Upon the executive director's determination that a person meets the criteria for exclusion from gaming facilities in this article, the person's name shall be added to the involuntary exclusion list, and the commission staff shall be directed by the executive director to file a notice of exclusion. The notice of exclusion shall identify all of the following:

(1) The person to be excluded;

(2) the nature and scope of the circumstances or reasons that the person should be placed on the involuntary exclusion list;

(3) the names of potential witnesses;

(4) a recommendation as to whether the exclusion will be permanent; and

(5) the availability of a hearing by the commission.

(b) The notice of exclusion shall be served on the excluded person using any method that is appropriate for service under Kansas law.

(c) A written request for a hearing shall be delivered to the executive director within 10 calendar days from the date the notice of exclusion was served on the person to be excluded. If no request for hearing is made, an order shall be issued by the commission affirming the placement of the person on the involuntary exclusion list. If the excluded person timely requests a hearing, the commission staff shall set the matter for a hearing before the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772; implementing K.S.A. 2007 Supp. 74-8752 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-111-3 Effect of placement on the exclusion list

(a) Each excluded person shall be prohibited from entry to a gaming facility.

(b) If the commission or a Kansas court finds that the person does not meet the criteria for exclusion, then the person's name shall be removed from the involuntary exclusion list and the exclusion shall be terminated effective upon the date of the action by the commission or the court.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing L. 2007, Ch. 110, § 41; effective May 1, 2009.)

Kan. Admin. Regs. § 112-111-4 Facility manager duties

(a) Each facility manager shall exclude from the gaming facility any person on the involuntary exclusion list.

(b) Each facility manager's director of security shall notify the commission's security staff if an excluded person has attempted entry to the gaming facility.

(d) Each facility manager shall notify the commission in writing of the names of persons the facility manager believes meet the criteria for placement on the involuntary exclusion list.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-111-5 Petition for removal

(a) An excluded person shall not petition the commission for removal from the involuntary exclusion list until at least five years have passed from date of the commission's order affirming placement of the person on the list.

(b) Each petition shall be verified with supporting affidavits and shall state in detail the grounds that the petitioner believes constitute good cause for the petitioner's removal from the list.

(c) The petition may be decided by the commission on the basis of the documents submitted by the excluded person. The petition may be granted or summarily denied by the commission or a hearing on the matter may be directed to be held by the commission. The petition may be granted or a hearing may be directed to be held by the commission only upon a finding that there is new evidence that would alter the original decision to affirm the person's placement on the involuntary exclusion list.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8772; effective May 1, 2009.)

Article 112 Responsible Gambling

Kan. Admin. Regs. § 112-112-1 Office of responsible gambling

A staff person shall be appointed by the executive director to direct the office of responsible gambling. This staff person shall administer all of the commission's programs to assist individuals with issues related to gambling and to help prevent problem gambling in Kansas. The office of responsible gambling shall coordinate resources to maximize the efficiency and effectiveness of the programs of other state agencies and private organizations that allocate resources to assisting individuals with issues related to gambling and preventing problem gambling.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2009 Supp. 74-8772 and 74-8804; implementing K.S.A. 2009 Supp. 74-8772 and 74-8773; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-112-2 Definition

As used within this article, "facility manager" shall mean any lottery gaming facility manager, racetrack gaming facility manager, racetrack facility manager, or fair association.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772 and K.S.A. 74-8804; implementing K.S.A. 2007 Supp. 74-8772 and K.S.A. 74-8825; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-112-3 Responsible gambling plan

(a) Each applicant for a facility manager certificate shall submit a responsible gambling plan to the commission with its initial application or at least 90 days before opening a racetrack gaming facility. The responsible gambling plan shall not be inconsistent with any facility manager's contractual obligation with the Kansas lottery. A responsible gambling plan shall be approved by the commission before the commission issues or renews a certificate. Each plan shall include the following:

(1) The goals of the plan and the procedures and deadlines for implementation of the plan;

(2) the identification of the individual at each applicant or facility manager location who will be responsible for the implementation and maintenance of the plan;

(3) procedures for maintaining the confidentiality of the information regarding the persons on the self-exclusion list, as specified in K.A.R. 112-112-7;

(4) procedures for informing patrons about self-transaction exclusion programs;

(5) procedures for compliance with the commission's self-exclusion program;

(6) procedures for creating and disseminating promotional material to educate patrons about problem gambling and to inform patrons about treatment services available. The applicant or facility manager shall provide examples of the material to be used as part of its promotional materials, including signs, brochures, and other media, and a description of how the material will be disseminated;

(7) details of the training about responsible gambling for the applicant's or facility manager's employees;

(8) the duties and responsibilities of the employees designated to implement or participate in the plan;

(9) procedures to prevent underage gambling;

(10) procedures to prevent patrons impaired by drugs or alcohol, or both, from gambling;

(11) an estimation of the cost of development, implementation, and administration of the plan; and

(12) any other policies and procedures to prevent problem gambling and encourage responsible gambling.

(b) Each applicant or facility manager shall submit any amendments to the responsible gambling plan to the commission for review and approval before implementing the amendments. Each facility manager shall report to the commission semiannually on the status and success of the responsible gambling plan.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2009 Supp. 74-8772 and K.S.A. 74-8804; implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-112-4 Self-exclusion list

(a) A "self-exclusion list" shall consist of the names of those persons who have complied with the requirements of this article and have been placed on the list by the executive director. The self-exclusion list shall provide the means for each individual with issues related to gambling to formally notify the commission that the individual has a gambling problem and that the individual will refrain from visiting gaming facilities, parimutuel licensee locations, and fair association race meets in Kansas.

(b) Each facility manager shall be notified by the executive director of the placement of any person on the self-exclusion list. Any or all information contained on the person's application may be disclosed to each facility manager and the facility manager's agents or employees by the executive director.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2009 Supp. 74-8772 and 74-8804; implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-112-5 Requirements for placement on the self-exclusion list

(a) Any person may seek placement on the self-exclusion list by performing the following:

(1) Requesting an application in person from commission staff at any gaming facility, parimutuel licensee location, or fair association race meet or at the commission's Topeka office during regular business hours; and

(2) completing and executing the application with a commission staff person.

(b) If the person is unable to appear in person at a gaming facility, parimutuel licensee location, or fair association race meet or at the Topeka office, the person may contact the commission's Topeka office during regular business hours so that other arrangements can be made.

(d)(1) Each application shall contain a statement that the applicant will refrain from visiting gaming facilities, parimutuel licensee locations, and fair association race meets in Kansas. Each person seeking placement on the self-exclusion list shall also acknowledge on the application that by being placed on the list, that person may be subject to a charge of trespass pursuant to K.S.A. 21-3721, and amendments thereto, if that person is discovered at a gaming facility, parimutuel licensee location, or fair association race meet by any agent or employee of the commission or by facility manager staff.

(2) The applicant shall acknowledge that the applicant's request to be placed on the self-exclusion list could result in being denied service or access to gaming and entertainment facilities in other jurisdictions. Furthermore, the applicant shall acknowledge that the commission and all facility managers will prohibit the applicant from entering the premises of all gaming facilities, parimutuel licensee locations, and fair association race meets.

(e)(1) As a part of the application, each applicant shall agree that facility managers and their employees have the right to communicate information in the application to entities affiliated with the facility manager that have a need to know the information for the purpose of complying with this article.

(2) Each facility manager shall be responsible for maintaining the confidentiality of the information provided in the application and shall use the information exclusively to deny persons on the self-exclusion list access to facilities under the control of the facility manager and its affiliates.

(f) An applicant's failure to provide any information or to complete any forms provided by the commission may result in a denial of a request for placement on the self-exclusion list.

(g) Self-exclusion list application forms shall include at a minimum a waiver of liability of the commission and its agents, the Kansas lottery and its agents, the state of Kansas, any person licensed pursuant to the Kansas expanded lottery act or parimutuel racing act, and any other person deemed necessary by the commission for any claims or damages that arise out of or relate to the self-exclusion list or its use.

(h) Upon an applicant's submission of a completed self-exclusion list application, a notice of placement on the self-exclusion list may be filed by the executive director. Each notice of placement shall be a closed record pursuant to K.S.A. 45-221(a)(30) and amendments thereto, except that the application and notice may be disclosed to facility managers and their agents, employees, and affiliates who have a need to know the information for the purpose of complying with this article.

(i) A copy of the notice of placement on the self-exclusion list shall be delivered by the executive director to the applicant by regular U.S. mail to the home address specified on the application. The applicant shall be deemed to be placed on the self-exclusion list when that person submits the application to the executive director for placement on the self-exclusion list, not at the time the notice is delivered to the applicant.

(j) If the executive director finds that an applicant does not qualify for placement on the self-exclusion list or that the applicant should be allowed to withdraw the application, the applicant shall be notified by the executive director by regular U.S. mail sent to the home address specified on the application.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772 and K.S.A. 74-8804; implementing K.S.A. 2007 Supp. 74-8772 and K.S.A. 74-8825; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-112-6 Mandatory surrenders to the state

Each person who has been placed on the self-exclusion list shall surrender to the commission all prizes, jackpots, chips or tokens in play, pay vouchers, coupons, and electronic credits obtained at a facility manager's location after the person's placement on the self-exclusion list. The items surrendered to the commission shall be liquidated or redeemed and shall be transferred to the state's problem gambling and addictions fund.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772 and K.S.A. 74-8804; implementing K.S.A. 2007 Supp. 74-8772 and K.S.A. 74-8825; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-112-7 Confidentiality of the self-exclusion list

(a)(1) As part of the responsible gambling plan required by K.A.R. 112-112-3(a), each facility manager or applicant for a facility manager certificate shall submit to the commission a plan for maintaining the confidentiality of the information regarding the persons on the self-exclusion list. The plan shall reasonably safeguard the confidentiality of the information but shall include dissemination of the information to at least the general manager, facility management, and all security and surveillance personnel. Each plan shall be submitted to the commission for approval.

(2) All information disclosed to any facility manager regarding anyone placed on the self-exclusion list shall be deemed a closed record pursuant to K.S.A. 45-221(a)(30) and amendments thereto. However, the information may be disclosed as authorized by the individual seeking placement on the list, by law, and through the provisions in this article.

(b) Any facility manager may disclose the information contained in the application to the facility manager's affiliates, employees, or agents to the extent necessary under this article.

(c) All information associated with the self-exclusion list, including the identities of individuals who have placed themselves on the list and any personal information about those individuals, shall be considered a closed record under the Kansas open records act pursuant to K.S.A. 45-221(a)(30) and amendments thereto.

(d) For administrative, disciplinary, or penalty proceedings regarding any alleged infraction by an individual on the self-exclusion list, the individual who is on the self-exclusion list shall not be named. An alternate means of identification shall be used to keep that individual's identity confidential.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772 and K.S.A. 74-8804; implementing K.S.A. 2007 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Kan. Admin. Regs. § 112-112-8 Facility manager conduct regarding self-excluded persons

(a) Each facility manager, including its agents and employees, that identifies a person at the facility manager's location who is suspected of being on the self-exclusion list shall at that time notify or cause to notify the commission agent on duty or the facility manager's senior security officer on duty. Once it is confirmed that the person is on the self-exclusion list and at the facility manager's location, the facility manager shall perform the following:

(1) Remove the self-excluded person from the gaming facility, parimutuel licensee location, or fair meet; and

(2) cooperate with the commission agent on duty with respect to any further actions or investigations.

(b) Each facility manager shall have 30 days from the effective date of this regulation to submit a list of internal controls, which shall be subject to approval by the commission. This list shall specify the following:

(1) The facility manager's plan for removing those persons on the self-exclusion list from mailing lists advertising the facility manager's Kansas operation, including marketing offers, slot club programs, VIP member programs, telemarketing programs, and other marketing promotions. However, this paragraph shall not be construed to prohibit mass mailings to "Resident"; and

(2) the facility manager's plan for denying access by persons on the self-exclusion list to the following:

(A) Check cashing, bank machine, and cash advance privileges;

(B) special club programs, including slot clubs and VIP cards; and

(c) Any facility manager and its agents or employees may be disciplined by the commission if any of the following conditions is met:

(1) It can be shown by a preponderance of the evidence that the facility manager or its employees or agents knew or should have known that a person on the self-exclusion list was present at the facility manager's location and the facility manager failed to follow the procedures required by these regulations.

(2) The facility manager or its employees or agents failed to follow procedures for complying with the regulations relating to self-exclusion.

(3) The facility manager reveals any information regarding self-exclusion that is considered a closed record under these regulations to any party not permitted under this act or these regulations.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2007 Supp. 74-8772 and K.S.A. 74-8804; implementing K.S.A. 2007 Supp. 74-8751, 74-8772 and K.S.A. 74-8825; effective Sept. 26, 2008.)

Kan. Admin. Regs. § 112-112-9 Procedure for removal from the self-exclusion list

(a) At any time after two years from the original date of application for placement on the self-exclusion list, any person on the self-exclusion list may petition the executive director for removal from the self-exclusion list. The authority to approve or deny each petition shall rest with the executive director. To be eligible for removal from the self-exclusion list, each person shall provide documentation acceptable to the commission that the applicant has met all of the following conditions:

(1) The person has undergone a problem gambling assessment with a gambling counselor certified by the Kansas department of social and rehabilitation services or through any other method approved by the commission.

(2) The person has completed a commission-approved education program on healthy lifestyle choices and problem gambling awareness.

(3) The person has met any other requirements deemed necessary by the commission.

(4) The person has executed an authorization and release to be removed from the self-exclusion list on a form provided by the commission.

(b) Each facility manager shall retain the ability to deny gambling privileges at a gaming facility, parimutuel licensee location, or fair association race meet to the persons who have been removed from the self-exclusion list for any other reason ordinarily available to the facility manager.

(c) Any person who has been removed from the self-exclusion list may reapply for placement on the list at any time as provided in this article.

(d) Upon approval of a petition for removal from the self-exclusion list, a notice of removal from the self-exclusion list shall be drafted by the executive director. Each notice shall be a closed record pursuant to the Kansas open records act, including K.S.A. 45-221(a)(30) and amendments thereto, except that the notice shall be disclosed to all facility managers and their agents and employees.

(e) A copy of the notice of removal from the self-exclusion list shall be delivered by the executive director to the petitioner by regular U.S. mail to the home address specified on the petition. The petitioner shall be deemed to be removed from the self-exclusion list when the executive director mails the approved notice to the petitioner.

(f) If the executive director finds that a petitioner does not qualify for removal from the self-exclusion list, the petitioner shall be notified by the executive director by regular U.S. mail, using the home address specified on the petition. The petitioner shall remain on the self-exclusion list pursuant to this article.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2009 Supp. 74-8772 and 74-8804; implementing K.S.A. 2009 Supp. 74-8772; effective Sept. 26, 2008; amended April 1, 2011.)

Article 113 Sanctions

Kan. Admin. Regs. § 112-113-1 Sanctions

(a) Any licensee, certificate holder, permit holder, or applicant may be sanctioned for violating any provision of the act, these regulations, or any other law that directly or indirectly affects the integrity of gaming in Kansas, including a violation of any of the following:

(1) Failing to disclose material, complete, and truthful information to the commission and its staff;

(2) failing to comply with any of the duties in article 101;

(3) being a facility manager and employing unlicensed employees or independent contractors;

(4) being a facility manager and contracting with uncertified gaming or nongaming suppliers;

(5) failing to follow the commission's minimum internal control standards or the facility manager's minimum internal control system;

(6) failing to follow the commission's security regulations or the facility manager's security plan;

(7) failing to follow the commission's surveillance regulations or the facility manager's surveillance plan;

(8) failing to enforce the involuntary exclusion list;

(9) failing to enforce the facility manager's responsible gaming plan or the provisions of article 112;

(10) failing to post signs informing patrons of the toll-free number available to provide information and referral services regarding problem gambling; or

(11) permitting persons who are less than 21 years of age that do not have an occupation license to be in areas where electronic gaming machines or lottery facility games are being conducted.

(b) The commission, disciplinary review board, and executive director shall have the authority to impose any of the following sanctions:

(1) License, certificate, or permit revocation;

(2) license, certificate, or permit suspension;

(3) license, certificate, or permit application denial;

(4) a monetary fine pursuant to K.S.A. 74-8764 and amendments thereto;

(5) warning letters or letters of reprimand or censure. These letters shall be made a permanent part of the file of the licensee, applicant, permit holder, or certificate holder; or

(6) any other remedial sanction agreed to by the licensee, applicant, certificate holder, or permit holder.

(c) Each sanction shall be determined on a case-by-case basis. In considering sanctions, the following may be considered by the executive director, disciplinary review board, or commission:

(1) The risk to the public and to the integrity of gaming operations created by the conduct of the licensee, certificate holder, permit holder, or applicant facing sanctions;

(2) the nature of the violation;

(3) the culpability of the licensee, certificate holder, permit holder, or applicant responsible for the violation;

(4) any justification or excuse for the conduct;

(5) the history of the licensee, certificate holder, permit holder, or applicant with respect to compliance with the act, these regulations, or other law; and

(6) any corrective action taken by the licensee, certificate holder, permit holder, or applicant to prevent future misconduct.

(d) In the case of a monetary fine, the financial means of the licensee, certificate holder, permit holder, or applicant may be considered.

(e) It shall be no absolute defense that the licensee, certificate holder, permit holder, or applicant inadvertently, unintentionally, or unknowingly violated a provision of the act or these regulations. These factors shall affect only the degree of the sanction to be imposed by the commission.

(f) Each violation of any provision of these regulations that is an offense of a continuing nature shall be deemed to be a separate offense on each day during which the violation occurs. The commission shall not be precluded from finding multiple violations within a day of those provisions of the regulations that establish offenses consisting of separate and distinct acts.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective April 17, 2009.)

Article 114 Rules of Hearings

Kan. Admin. Regs. § 112-114-1 Definitions

The following terms as used in these regulations shall have the meanings specified in this regulation, unless the context clearly indicates otherwise:

(a) "Disciplinary review board" means a board established by the executive director. The board members shall be appointed by the executive director to review certain applications and licensee or certificate holder conduct and to ensure compliance by applicants, licensees, and certificate holders with these regulations, the act, and other laws.

(b) "Hearing body" means the commission, disciplinary review board, or executive director, when each of these is conducting a hearing.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-114-2 Report of an alleged violation

(a) Any person may file a report of an alleged violation with any commission office.

(b) Each person reporting an alleged violation shall complete the commission-approved report form available online and in commission offices. Substantially incomplete forms shall not be accepted by commission personnel.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8751 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-114-3 Notice of alleged violation and hearing

(a) If disposition of the allegation raised in a report could result in suspension or revocation, the respondent shall be provided by the commission with reasonable notice of the alleged violation and hearing.

(b) The notice of alleged violation and hearing shall include the following information:

(1) The time and location of the hearing;

(2) the identity of the hearing body;

(3) the case number and the name of the proceeding;

(4) a statement of the legal authority and a general description of the allegation, including the time of occurrence;

(5) a statement that a respondent who fails to attend the hearing may be subject to the entry of an order that is justified by the evidence presented at the hearing; and

(6) a statement that a respondent has the right to appear at the hearing with counsel, the right to produce any evidence and witness on the respondent's behalf, the right to cross-examine any witness who may testify against the respondent, and the right to examine any evidence that may be produced against the respondent.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-114-4 Waiver

Except to the extent precluded by another provision of law, a person may waive any right conferred upon that person by these regulations.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing L. 2007, Ch. 110, § 20 and § 41; effective May 1, 2009.)

Kan. Admin. Regs. § 112-114-5 Informal settlements

Nothing in these regulations shall preclude the informal settlement of matters that could make a hearing unnecessary.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing L. 2007, Ch. 110, § 20 and § 41; effective May 1, 2009.)

Kan. Admin. Regs. § 112-114-6 Participation by and representation of respondents

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-114-8 Presiding officer

(a) The presiding officer shall be either of the following:

(1) The executive director or the chairperson of the commission; or

(2) a person designated by the commission.

(b) For disciplinary review board hearings, if a substitute is required for a presiding officer or other member of the hearing body who is unavailable for any reason, a substitute shall be appointed by the executive director. Each action taken by the duly appointed substitute shall be as effective as if the action had been taken by the unavailable member.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-114-9 Hearing procedure

(a) The presiding officer at each hearing shall regulate the course of the proceedings.

(d) The presiding officer shall cause the hearing to be recorded at the commission's expense. The commission shall not be required to prepare a transcript at its expense. Subject to any reasonable conditions that the presiding officer may establish, any party may cause a person other than the commission to prepare a transcript of the proceedings.

(e) Each hearing shall be open to public observation, except for deliberations and parts that the presiding officer states are to be closed pursuant to a provision of law expressly authorizing closure.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-114-10 Evidence

(a) A presiding officer shall not be bound by technical rules of evidence but shall give the parties reasonable opportunity to be heard and to present evidence. The presiding officer shall act without partiality. The presiding officer shall apply any rules of privilege that are recognized by law. Evidence shall not be required to be excluded solely because the evidence is hearsay.

(c) Documentary evidence may be received in the form of a copy or excerpt, including electronically stored information. Upon request, parties shall be given an opportunity to compare the copy with the original, if available.

(d) Official notice may be taken of the following:

(1) Any matter that could be judicially noticed in the courts of this state; and

(2) the record of other proceedings before the disciplinary review board or the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing L. 2007, Ch. 110, § 20 and § 41; effective May 1, 2009.)

Kan. Admin. Regs. § 112-114-11 Orders

(a) Within 30 days after the hearing, the hearing body shall enter a written order.

(b) Each order shall include a brief statement of the findings of the hearing body and any penalty prescribed. The findings shall be based exclusively upon the evidence of record and on matters officially noticed in the hearing.

(c) For disciplinary review board hearings, the order shall also include a statement that the order is subject to appeal to the commission and the available procedures and time limits for seeking an appeal. The order shall further include a statement that any suspension imposed by the order may be stayed, pending appeal.

(d) For disciplinary review board hearings, the hearing body may impose any penalty authorized by law and may refer the matter to the commission with findings and recommendations for imposition of greater penalties.

(e) Each order shall be effective when rendered.

(f) The presiding officer shall cause copies of the order to be served upon each party to the proceedings.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2007 Supp. 74-8751 and 74-8772; effective May 1, 2009.)

Kan. Admin. Regs. § 112-114-12 Service of order

(a) Service of an order shall be made upon the party and the party's attorney of record, if any.

(b) Service shall be presumed if the presiding officer, or a person directed to make service by the presiding officer, makes a written certificate of service.

(d) Whenever a party has the right or is required to do some act or take some proceedings within a prescribed period after service of an order is made by mail, three days shall be added to the prescribed period.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing L. 2007, Ch. 110, § 20 and § 41; effective May 1, 2009.)

Kan. Admin. Regs. § 112-114-14 Appeals of disciplinary review board hearings

(a) Each order entered by the disciplinary review board that imposes suspension or revocation, or any other sanction shall be subject to appeal to the commission.

(b) Each party who wishes to appeal a disciplinary review board order shall file a notice of appeal and brief on forms provided by the commission during regular office hours within 11 days after service of the order from which the party is appealing. If an order is served by mail, the party shall have 14 days within which to file a notice of appeal and brief.

(c) Each notice of appeal and brief shall be completed by the appealing party upon the form available in the commission's licensing office at the gaming facility. Each notice of appeal and brief shall fully state the basis for appeal and identify the issues upon which the party seeks administrative review. Incomplete forms shall not be accepted by commission personnel.

(d) A notice of appeal and brief shall constitute the appealing party's written brief. An opposing party shall be afforded an opportunity to file a brief in response to the appealing party's brief within 14 days following the filing of the appealing party's brief.

(e) Each notice of appeal form shall include a statement that, in reviewing any disciplinary review board's order, the following provisions shall apply:

(1) De novo review may be exercised by the commission, one or more commissioners designated by the commission, or a presiding officer designated by the commission.

(2) The disciplinary review board's order may be affirmed, reversed, remanded for further hearing, or modified by the commission, one or more commissioners designated by the commission, or a presiding officer designated by the commission. A new hearing may also be conducted by the commission, one or more commissioners designated by the commission, or a presiding officer designated by the commission. An occupation license may be suspended or revoked for each violation of the act or these regulations, or both.

(f) Any respondent may be deemed to have timely filed a notice of appeal pursuant to subsection (b) if, after service of the disciplinary review board's order, the respondent performs the following:

(1) Within the appeal time described in subsection (b) of this regulation, files a writing that states an intention to appeal the order and that includes substantially the same information requested in the appeal form available in the commission's licensing office at the gaming facility; and

(2) within a period of time authorized by the disciplinary review board, fully executes and files in the commission's licensing office at the gaming facility the appeal form available in that office.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2008 Supp. 74-8751 and 74-8772; effective May 1, 2009.)

Article 201 General Provisions and Definitions

Kan. Admin. Regs. § 112-201-1 Definitions.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-1. Definitions.

Each of the following words and terms, when used in this article of the Kansas racing and gaming commission’s regulations, shall have the meaning specified in this subsection:

(a) “Affiliate” means an entity that provides goods or services to a Kansas-certified integrated sports wagering platform and required to be registered as specified in K.A.R. 112-202-5, but not to be certified as an interactive sports wagering platform.

(b) “Age and identity verification” means a method, system, or device used by a lottery gaming facility manager or contracted interactive sports wagering platform provider to verify the validity of a patron’s age and the patron’s identity.

(c) “Canceled wager” means a wager that has been canceled by the lottery gaming facility manager or its interactive sports wagering platform provider through the interactive sports wagering platform due to any issue with an event that prevents the wager completion.

(d) “Cash equivalents” means instruments with a value equal to United States currency or coin, including certified checks, cashier’s checks, traveler’s checks, money orders, gaming tickets, winning sports wagering tickets, sports wagering vouchers, and coupons.

(e) “Commission” means the Kansas racing and gaming commission.

(f) “Communications technology” means a process in which components are employed to facilitate the transmission of information including, but not limited to, transmission and reception systems based on wire, cable, radio, microwave, light, optics or computer data networks and the internet.

(g) “Dormant account” means a sports wagering account that has had no login for a period of at least three years.

(h) “Executive director” means the executive director of the Kansas racing and gaming commission or any employee of the agency the executive director designates to act on behalf of the agency.

(i) “Gaming day” means a period of time not to exceed 24 hours corresponding to the beginning and ending times of gaming activity for the purpose of accounting reports that has previously been approved by the executive director.

(j) “House rules” means comprehensive rules established by a lottery gaming facility manager that outline the general and specific parameters by which sports wagering is conducted.

(k) “Interactive sports wagering platform provider” means a sports wagering supplier that contracts with a lottery gaming facility manager to provide an interactive sports wagering platform. If a lottery gaming facility manager develops its own interactive sports wagering platform, the lottery gaming facility manager is also considered an interactive sports wagering platform provider for the purposes of this article.

(l) “Kansas lottery” means the state agency created by the Kansas lottery act, K.S.A. 74-8701 et seq., to operate a lottery or lotteries pursuant to the act, including sports wagering.

(m) “Layoff wager” means a wager placed by an interactive sports wagering platform provider with another interactive sports wagering platform provider for the purpose of offsetting patron wagers.

(n) “Marketing plan” means a plan that must be submitted to the executive director for the creation of sports wagering accounts.

(o) “Market” means a wager type, such as money line, spread, or over/under on which opportunities are built for wagering on one or more events.

(p) “Mobile application” means any application on a mobile device through which an individual is able to place a sports wager through an interactive sports wagering platform.

(q) “Payout” means the total payment due on a winning wager whether or not:

(1) The patron collects the total payment due at one time;

(2) all or a portion of the payment due is made in the form of cash, chips or other form of payment; or

(3) all or a portion of the payment due is used by the patron to place another wager.

(r) “Penetration testing” means an authorized simulated cyberattack performed to evaluate the security of a system.

(s) “Personally identifiable information” and “PII” means any information or data used to confirm an individual’s identity. Personally identifiable information includes, but is not limited to, name, address, internet protocol (IP) address, phone number, social security number, and driver’s license number.

(t) “Prohibited sports wagering participant” means any involuntarily excluded person, any voluntarily-excluded person, and anyone prohibited from sports wagering by Kansas law.

(u) “Satellite cage” means cashiering windows located in an area separated from the main cashiering facility.

(v) “Sports book” means a designated area in a lottery gaming facility offering sports wagering in accordance with established regulations.

(w) “Sports wagering account” means an account established through a lottery gaming facility manager or its interactive sports wagering platform provider for an individual patron to use for sports wagering.

(x) “Sports wagering count sheet” means a form used to inventory and balance a bank or ticket writer’s drawer.

(y) “Sports wagering kiosk” means an automated device that may be used for sports wagering ticket processing and other automated functions as approved by the executive director.

(z) “Sports wagering manager” means a licensed sports book employee who is responsible for operating the interactive sports wagering platform and providing final approval of all odds established on an agreed upon wager.

(aa) “Sports wagering operation” means the Kansas lottery business of accepting wagers pursuant to the Kansas expanded lottery act, K.S.A. 74-8733 through 74-8773, and amendments thereto, and K.S.A. 74-8781 through 74-8794, and amendments thereto, at a lottery gaming facility, through an interactive sports wagering platform or pursuant to a marketing agreement approved by the executive director of the Kansas lottery.

(bb) “Sports wagering promotional credit” means any cashable or non-cashable credit, free play, patron incentives, coupon or voucher redeemable by a patron and issued in accordance with a promotional program or activity approved by the Kansas lottery.

(cc) “Sports wagering registrant” means an individual or entity that is contracted to provide goods or services that the executive director determines affects the conduct of sports wagering but falls outside the scope of an interactive sports wagering platform certification or a vendor’s certification.

(dd) “Sports wagering ticket” means a printed record issued or an electronic record maintained by the interactive sports wagering platform that evidences a sports wager.

(ee) “Sports wagering voucher” means a printed record, or digital representation thereof, issued by an interactive sports wagering platform that may be used to fund a wager or may be redeemable for cash.

(ff) “Strong authentication” means a method that has been demonstrated to the satisfaction of the executive director to effectively provide higher security than a username and password alone.

(gg) “Structured wagers” means the act of parcelling bets or winnings that would otherwise be a large financial sum into smaller transactions.

(hh) “Suspicious transaction” means a transaction which a lottery gaming facility manager or its interactive sports wagering platform provider knows or, has reason to suspect:

(1) The transaction is part of a plan to violate or evade, any federal, state, or local law or regulation;

(2) the wager is placed by, or on behalf of, a coach or participant in a sporting event or other event on such event;

(3) the transaction is a structured wager; or

(4) the transaction has no business or apparent lawful purpose or is not the sort of transaction the patron would normally be expected to perform.

(ii) “Ticket writer” means a cashier that handles sports wagering transactions.

(jj) “Voided wager” means a sports wager voided by an employee of the lottery gaming facility manager or interactive sports wagering platform operator and approved pursuant to the internal controls or house rules.

(kk) “Wagering communication” means the transmission of a wager between a point of origin and a point of reception by aid of a communications technology.

(ll) “Wagering instructions” means the instructions given by a patron on the grounds of a sports book who maintains a sports wagering account to affect a wagering communication to an interactive sports wagering platform.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-2 Accounting controls for the sportsbook.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-2. Accounting controls for the sportsbook.

(a) A ticket writer shall begin a shift with an imprest amount of sports wagering funds, consisting of currency and coin. No funds shall be added to or removed from the sports wagering funds during such shift except:

(1) in collection of sports wagers;

(2) in order to make change for a patron buying a sports wagering ticket;

(3) in collection for the issuance of sports wagering vouchers;

(4) in payment of winning or properly canceled or refunded sports wagering tickets;

(5) in payment of sports wagering vouchers; or

(6) in exchanges with the ticket writer’s cage, a satellite cage, or the sportsbook bank supported by proper documentation, and which documentation shall be sufficient for accounting reconciliation purposes.

(b) A sports wagering count sheet shall be completed and signed by a supervisor, and the following information, at a minimum, shall be recorded on the sports wagering count sheet at the beginning of a shift:

(1) the date, time, and shift of preparation.

(2) the denomination of currency and coin in the sports wagering inventory issued to the ticket writer.

(3) the total amount of each denomination of currency and coin in the sports wagering inventory issued to the ticket writer.

(4) the sports wagering window number to which the ticket writer is assigned; and

(5) the signature of the sports wagering shift supervisor.

(c) A ticket writer assigned to a ticket writer window shall count and verify the sports wagering inventory at the sports wagering bank and shall agree with the count to the sports wagering count sheet. The ticket writer shall sign the sports wagering count sheet attesting to the accuracy of the information recorded on the sports wagering count sheet. The sports wagering inventory shall be placed in the ticket writer's drawer and transported directly to the appropriate ticket writer window by the ticket writer.

(d) If the system generated sports wagering window net receipts for the shift do not agree with the sports wagering count sheet total plus the sports wagering inventory, the shift supervisor shall record any overage or shortage. If the count does not agree, the ticket writer and the shift supervisor shall attempt to determine the cause of the discrepancy in the count. Any discrepancy that cannot be resolved by the ticket writer and the shift supervisor shall be reported in writing to the department supervisor in charge at such time. Any discrepancy in excess of $500 shall be reported to the commission. The report shall include the:

(1) date on which the discrepancy occurred;

(2) shift during which the discrepancy occurred;

(3) name of the ticket writer;

(4) name of the supervisor;

(5) window number; and

(6) amount of the discrepancy.

(e) The sportsbook shift supervisor shall compare the ticket writer window net (cash incoming minus cash outgoing) for the shift as generated by the ticket writer’s computer terminal. If it agrees with the sports wagering count sheet total plus the beginning imprest amount, the sportsbook supervisor shall sign the sports wagering count sheet attesting to the accuracy.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-3 Reserve requirements

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-3. Reserve requirements.

All lottery gaming facility managers or their interactive sports wagering platform providers shall maintain a reserve in the form of cash, cash equivalents, payment processor reserves, payment processor receivables, an irrevocable letter of credit, a bond, or a combination thereof, of not less than the greater of $500,000 or the amount necessary to ensure the ability to cover all unclaimed winnings and future liability.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-4 Issuance and sports wagering ticket control requirements

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-4. Issuance and sports wagering ticket control requirements.

(a) Immediately upon accepting a wager, the interactive sports wagering platform shall create a sports wagering ticket on which the terms of the wager are written.

(b) Printed sports wagering tickets must bear the name and address of the sports book.

(d) When a sports wager is voided or canceled, the lottery gaming facility manager or the contracted interactive sports wagering platform provider shall clearly indicate that the sports wager is voided or canceled ensuring it is nonredeemable. The voided or canceled wager shall be logged into the interactive sports wagering platform indicating the void or cancellation and the identity of the cashier or automated process.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-5 General wagering requirements

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-5. General wagering requirements.

(a) Lottery gaming facility managers or the interactive sports wagering platform providers may not accept wagers unless the wagers are made with:

(b) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall accept wagers only on its licensed premises, and only at ticket writers or sports wagering kiosks approved by the executive director or through an interactive sports wagering platform that has been approved by the executive director.

(c) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall not knowingly accept money or its equivalent purportedly as a wager upon an event whose outcome has already been determined. A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall not accept a wager on an event unless the date and time at which the outcome of the event is determined or can be confirmed from reliable sources satisfactory to the executive director.

(d) All accepted wagers shall be listed in the house rules.

(e) The lottery gaming facility manager or the contracted interactive sports wagering platform provider shall ensure that any statistics or line data that is made available to the patron pertaining to an event uses a source allowed by the Kansas lottery. The source providing the statistics/line data shall be accurate at the time of the event.

(f) No lottery gaming facility manager, interactive sports wagering platform provider, agent, or employee of lottery gaming facility manager or an interactive sports wagering platform provider may accept a wager from a person who the lottery gaming facility manager, interactive sports wagering platform provider, agent, or employee knows or reasonably should know is a messenger bettor or is placing the wager in violation of state or federal laws.

(g) No lottery gaming facility manager or the contracted interactive sports wagering platform provider may hold a patron’s money or its equivalent on the understanding that the lottery gaming facility manager or the contracted interactive sports wagering platform provider will accept the money as a wager only upon the occurrence of a specified, future contingency, unless a sports wagering ticket documenting the wager and contingency is issued immediately when the lottery gaming facility manager or the contracted interactive sports wagering platform provider receives the money or its equivalent.

(h) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall limit each patron to one active and continuously used sports wagering account and username for each interactive sports wagering platform.

(i) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall publish procedures to suspend all but one active account for any sports wagering patron that establishes, or seeks to establish, multiple active accounts in a single interactive sports wagering platform, whether directly or by use of another person as a proxy.

(j) In the event a patron has a pending wager and then self-excludes, the wager shall settle, and the funds shall be remitted to the problem gambling grant fund established under K.S.A. 79-4805, and amendments thereto, if the wager settles as a win or push.

(k) A full age and identity verification must be undertaken before a patron is allowed to place a wager on an interactive sports wagering platform as follows:

(1) The lottery gaming facility manager and interactive sports wagering platform provider shall deny the ability to deposit funds or participate in wagering to any person that submits a birth date that indicates the person is not yet 21 years of age.

(2) Age and identity verification must use commercially reasonable standards to confirm that the patron is not a prohibited sports wagering participant.

(3) Details of age and identity verification shall be kept in a secure manner.

(4) Third-party service providers may be used for age and identity verification of patrons.

(5) The lottery gaming facility manager and interactive sports wagering platform provider must have a documented policy for the handling of patrons discovered to be using a sports wagering account in a fraudulent manner, including, but not limited to:

(A) The maintenance of information about any patron's activity, so if fraudulent activity is detected, the commission has all of the necessary information to take appropriate action;

(B) the suspension of any patron account discovered to be providing access to fraudulent patrons; and

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-6 Multiple wagers.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-6. Multiple wagers.

(a) A Lottery gaming facility manager or their employees shall not knowingly allow the circumvention of K.A.R. 112-104-6 by allowing multiple cash wagers by an individual patron within a designated gaming day. Each contracted interactive sports wagering platform shall take reasonable steps to prevent multiple cash wagers by an individual patron designed to circumvent K.A.R. 112-104-6. As part of a lottery gaming facility manager’s and the contracted interactive sports wagering platform provider’s efforts to prevent circumventions of K.A.R. 112-104-6, a lottery gaming facility manager or the contracted interactive sports wagering platform provider shall establish and implement wagering multiple transaction logs.

(b) Each lottery gaming facility manager or the contracted interactive sports wagering platform provider shall record in the wagering multiple transaction log, all cash wagers of $3,000 or more and properly complete a currency transaction report for all single cash transactions and for a series of multiple cash transactions in excess of $10,000.

(c) Each log entry in a wagering multiple transaction log shall be made by the employee accepting or approving the cash wager.

(d) When aggregated cash wagers exceed $10,000, the lottery gaming facility manager and the contracted interactive sports wagering platform provider shall complete the record-keeping and reporting requirements of K.A.R. 112-104-6.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-7 Structured wagers.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-7. Structured wagers.

(a) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall not encourage or instruct the patron to structure or attempt to structure wagers. This subsection does not prohibit a lottery gaming facility manager or the contracted interactive sports wagering platform provider from informing a patron of the regulatory requirements imposed upon the sports book, including the definition of structured wagers.

(b) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall not knowingly assist a patron in structuring or attempting to structure wagers.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-8 Recordkeeping and reporting requirements.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-8. Record-keeping and reporting requirements.

(a) The lottery gaming facility manager and the contracted interactive sports wagering platform provider shall maintain records of:

(1) All wagers placed, including personally identifiable information of the person placing the wager;

(2) the amount and type of wager;

(3) the time the wager was placed;

(4) the location of the wager, including the IP address, if applicable;

(5) the outcome of the wager;

(6) any records of abnormal wagering activity; and

(7) video camera recordings, in the case of in-person wagers.

(b) Lottery gaming facility managers shall maintain personally identifiable information of persons placing a sports wager. Use of personally identifiable information shall be limited to purposes that facilitate placing of a sports wager or payment of any prize as well as for compliance with any federal or state law.

(c) Personally identifiable information, including the internet protocol (IP) address from which a sports wager is placed, will be used by sports wagering platforms to allow placement of sports wagers on an approved mobile app. Permissible uses of personally identifiable information include, but are not limited to, age verification; voluntary exclusions; geolocation; detection of location anonymizers such as proxy servers, virtual private networks (VPN), and the onion routing (TOR) exit nodes; re-geolocation; fraud detection and investigation; and Financial Crimes Reporting Network (FinCen) reporting.

(d) A patron may elect to prohibit collection of personally identifiable information by a sports wagering platform or gaming facility manager if that election does not interfere with the ability of a platform to initiate a sports wager or facilitate payment of a prize.

(e) Sports wagering platforms and lottery gaming facility managers shall not use, for marketing purposes, any person’s personally identifiable information (PII) that has elected to not have their PII collected for any purpose other than placing a sports wager or receiving payment of a prize. The person’s election to prohibit collection of PII shall be maintained by the interactive sports wagering platform and lottery gaming facility manager until the person affirmatively, through the platform or by other written means, cancels such election.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-9 Payment of winning wagers

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-9. Payment of winning wagers.

(a) Except as otherwise provided in this subsection, lottery gaming facility managers or their interactive sports wagering platform providers shall make a payment on a winning wager to the patron who presents the patron’s original sports wagering ticket representing the winning wager. A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall not make payment to a patron that the contracted interactive sports wagering platform provider knows or reasonably should know is collecting the payment on behalf of another patron or in violation of law. A lottery gaming facility manager or the contracted interactive sports wagering platform provider may withhold payment of a winning wager if a patron refuses to supply proper identification or any other requested documentation as required by state law.

(b) The lottery gaming facility manager or their contracted interactive sports wagering platform provider shall honor winning sports wagering tickets for 180 days after the event has concluded. The lottery gaming facility manager or their contracted interactive sports wagering platform provider shall print the redemption period on each sports wagering ticket, on the house rules, and on notices conspicuously placed about the licensed premises. Interactive sports wagering platforms shall maintain the information and documentation presented for a period of two years.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-10 Wager cancellations.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-10. Wager cancellations.

Lottery gaming facility managers or the interactive sports wagering platform providers shall establish internal controls and house rules pertaining to wagering transactions that can be voided or cancelled.

(a) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall request approval from the executive director to void or cancel an accepted wagering transaction due to an obvious error. An obvious error must be defined in the lottery gaming facility manager’s or the contracted interactive sports wagering platform’s internal controls.

(b) Except as otherwise provided in approved internal controls and house rules, a lottery gaming facility manager or the contracted interactive sports wagering platform provider shall not unilaterally void or cancel any wager without the prior approval of the executive director.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-11 Reporting of suspicious activity.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-11. Reporting of suspicious activity.

(a) A lottery gaming facility manager or the interactive sports wagering platform shall utilize an independent supplier to identify non-normal irregularities in volume or odds swings that could signal suspicious activity and further investigation.

(1) Internal controls shall state details for how integrity monitoring efforts and notifications to the Commission pertaining to them shall be handled.

(2) In situations requiring immediate attention, such as large odds swings or irregularities in volume, the lottery gaming facility manager or the interactive sports wagering platform shall immediately notify the on-site commission agent in addition to filing a report within one business day.

(b) Internal controls shall include direct reporting from the lottery gaming facility and the contracted interactive sports wagering platform to the commission within 14 days of becoming aware of the following activities:

(1) Attempts to violate or evade any federal, state, or local law or regulations pertaining to interactive sports wagering in any jurisdictions;

(2) violations or attempted violations of federal or state Anti-Money Laundering (AML) laws;

(3) unusual or suspicious behavior or patterns of wagers by a patron. For purposes of this provision “unusual behavior or patterns of wagers” means abnormal wagering activity exhibited by patrons and deemed by an interactive sports wagering platform provider as a potential indicator of suspicious activity. Abnormal wagering activity may include the size of a patron’s wager or increased wagering volume on a particular event or wager type. “Unusual behavior or patterns of wagers” also means unusual betting activity that cannot be explained and is indicative of match fixing, the manipulation of an event, misuse of inside information, or other prohibited activity;

(4) unusual geographical concentration of betting;

(5) wagers that have been placed through a shared mobile device using different accounts;

(6) unusual and abnormal proportion of bets on one side of a betting market;

(7) any potential or actual breach of a sports governing body’s internal rules and codes of conduct pertaining to sports wagering that is known to the lottery gaming facility or the contracted interactive sports wagering platform;

(8) wagering activities or patterns that may indicate a concern with the integrity of a sporting event;

(9) conduct that corrupts, is intended to corrupt, or unduly influences the betting outcome of a sporting event for purposes of financial gain, including match fixing;

(10) an agent or proxy placing a wager on behalf of another patron or the use of false identification;

(11) any suspected criminal activity under K.S.A. 74-8760 (a), (b), and (c) not previously listed;

(12) any suspicious transaction as defined by K.A.R. 112-201-1(hh); and

(13) any other violations of state or federal law.

(c) A lottery gaming facility manager, interactive sports wagering platform, director, officer, employee, or agent who reports any activity in K.A.R. 112-201-11(b) shall not notify any person involved in the activity that the activity has been reported.

(d) Nothing in this regulation shall be construed as relieving a lottery gaming facility manager or the contracted interactive sports wagering platform provider from meeting any obligation to prepare or maintain any book, record, or document required by any other federal, state, or local governmental body, authority, or agency.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-12 Wagers, terms and conditions

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-12. Wagers, terms and conditions.

(a) An interactive sports wagering platform provider or a lottery gaming facility manager where the sports book is located or an affiliate of one or more of those entities that holds a gaming license may provide room, food, and beverages, that are available to the public from other sources, including spa services, movies, bowling and entertainment admissions, and limousine or other car service transportation to and from the gaming establishment where the sports book is located.

(b) A lottery gaming facility manager or their contracted interactive sports wagering platform provider, including all marketing entities that have contracted with the lottery gaming facility manager or their contracted interactive sports wagering platform provider to provide sports wagering, may award loyalty program points based on wagers placed by a patron; however, such points may only be redeemed in accordance with the rules of the program. The lottery gaming facility manager shall include a description and controls for player loyalty programs related to sports wagering in their internal controls.

(c) A lottery gaming facility manager or their contracted interactive sports wagering platform provider shall not, in an attempt to provide a benefit to the patron in violation of subsection (a), offer a wagering proposition, or set or move its wagering odds, lines, or limits, or do anything that would violate their house rules.

(d) Other than as part of an approved promotional mechanism, an interactive sports wagering platform provider shall not set lines, or odds, or offer wagering propositions designed for the purposes of ensuring that a patron will win a wager or series of wagers.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-13 Wagering communications, establishing patron wagering for sporting events.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-13. Wagering communications, establishing patron wagering for sporting events.

(a) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall only accept sports wagering initiated from within the state of Kansas.

(b) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall not accept wagering instructions for sports wagers unless the transmission of the wagering instructions is initiated from within the state of Kansas.

(c) Each lottery gaming facility manager or the contracted interactive sports wagering platform provider that accepts wagering communications shall establish and implement a system of internal controls for such transactions and comply with its system of internal controls.

(d) Each lottery gaming facility manager or the contracted interactive sports wagering platform provider shall prepare a written description of its house rules and procedures for wagering communications and shall make a copy available to all patrons upon request.

(e) Before each lottery gaming facility manager or the contracted interactive sports wagering platform provider accepts a wagering communication on any sports wager or any other event wager over the internet, a patron shall register and create a sports wagering account, either remotely or in person.

(1) To create the required sports wagering account remotely, the patron must confirm their identity by providing the following:

(A) The patron’s full legal name;

(B) the patron’s date of birth;

(D) the patron’s social security number, or the last four digits of the social security number, or an equivalent identification number for a noncitizen patron, such as a passport or taxpayer identification number; and

(E) any other information collected from the patron used to verify his or her identity and to prove the patron is at least 21 years of age.

(2) A lottery gaming facility manager or the contracted interactive sports wagering platform provider may register and create sports wagering accounts for patrons in-person, by inspecting and confirming a patron’s registration information identified in subsection (d).

(A) A lottery gaming facility manager or the contracted interactive sports wagering platform provider must file a request with the executive director requesting approval for its employees to register and create sports wagering accounts for patrons.

(B) The request must include a comprehensive marketing plan including the types of locations and types of potential patrons which a lottery gaming facility manager or the contracted interactive sports wagering platform provider intends to send its employees for the purposes of registering and creating sports wagering accounts for patrons.

(C) A lottery gaming facility manager or the contracted interactive sports wagering platform provider may not act under the marketing plan prior to the executive director approving the request. The executive director may rescind approval of a request of a lottery gaming facility manager or the contracted interactive sports wagering platform provider to have its employees register and create accounts upon written notice to the lottery gaming facility manager or their contracted interactive sports wagering platform provider.

(f) Prior to creation of the sports wagering account under subsection (e) the patron shall affirm they have been informed and acknowledges they are prohibited by law from placing sports wagers and other event wagers on interactive sports wagering platforms licensed in this state while physically located outside of Kansas and that the interactive sports wagering platform is prohibited from accepting such wagers.

(g) A lottery gaming facility manager or interactive sports wagering platform may place a layoff wager with another sports wagering platform located in the state of Kansas for the purpose of offsetting patron wagers provided that:

(1) the lottery gaming facility manager or interactive sports wagering platform provider placing the layoff wager discloses the identity to the interactive sports wagering platform receiving the layoff wagers;

(2) the receiving sports wagering platform agrees to accept the layoff wager; and

(3) both the platform placing the wager and the platform receiving the wager include in their internal controls processes for placing and accepting layoff wager.

(h) In addition to the posting of the wager in the interactive sports wagering platform, all wagering communications shall be electronically recorded and retained for a period of two years. Such recordings shall be made available no longer than seven days after agent request unless such time is extended by the commission.

(i) All sports wagering account applications for active accounts shall be retained by the lottery gaming facility manager or their contracted interactive sports wagering platform provider. All sports wagering account applications for rejected applications shall be retained by the lottery gaming facility manager or their contracted interactive sports wagering platform provider for no less than two years following the rejection of the related application. All sports wagering account applications for closed accounts shall be retained by the lottery gaming facility manager or their contracted interactive sports wagering platform provider for no less than two years following the closure of the related sports wagering account.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-14 Lottery gaming facility manager or interactive sports wagering platform provider duties

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-14. Lottery gaming facility manager or interactive sports wagering platform provider duties.

(a) A lottery gaming facility manager or the interactive sports wagering platform provider shall report to the commission’s security staff, within 24 hours, any facts the facility manager or the contracted interactive sports wagering platform provider has reasonable grounds to believe indicate a violation of law, violation of the facility manager’s minimum control standards, or violations of the commission’s regulations, including the performance of activities different from those permitted under the person’s license or certificate;

(b) A lottery gaming facility manager or the interactive sports wagering platform provider shall provide for the patron’s review and confirmation of all wagering information before the wagering communication is accepted by the contracted interactive sports wagering platform. This confirmation of the wager shall be deemed an actual transaction of records, regardless of whether or not that wager was recorded by the contracted interactive sports wagering platform.

(c) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall prohibit wagers from being changed after the patron has reviewed and confirmed the wagering information, and the specific wagering communication transaction has been completed.

(d) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall prohibit the acceptance of wagers after post time.

(e) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall prohibit an interactive sports wagering platform from accepting an account wager, or a series of account wagers, in an amount in excess of the available balance of the wagering account;

(f) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall post payment on winning account wagers as a credit to the patron’s wagering account based on approved house rules approved under this article.

(g) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall maintain complete records of every deposit, withdrawal, wager, winning payoff and other debit or credit for each account;

(h) A lottery gaming facility manager or the interactive sports wagering platform provider shall not permit a patron to transfer funds from a sports wagering account to another sports wagering account.

(i) Lottery gaming facility managers or the contracted interactive sports wagering platform providers shall provide an account statement with account details to a patron on demand, which shall include detailed account activity for at least the last six months. In addition, a lottery gaming facility manager or the contracted interactive sports wagering platform provider shall, upon request, be capable of providing a summary statement of all patron activity during the past two years.

(j) A lottery gaming facility manager and the contracted interactive sports wagering platform provider shall periodically re-verify a patron's identification upon reasonable suspicion that the patron's identification has been compromised.

(k) The utilization of funds to place a wager under this regulation shall be initiated only by a patron using an access control, such as a password. Access controls shall require the use of a unique access code for each patron. The access code shall be selected by and available to only the patron.

(l) A patron’s sports wagering account may be funded using approved methods which shall produce a sufficient audit trail for verification of the source of the deposits. Approved methods include:

(1) Cash and cash equivalents;

(2) electronic bank transfers of money, including transfers through third parties;

(3) bank and wire transfers of money;

(4) debit and credit cards;

(5) online and mobile application payment systems that support online money transfers;

(6) sports wagering promotional credits provided by a lottery gaming facility manager or an interactive sports wagering platform provider.

(m) Lottery gaming facility managers or the contracted interactive sports wagering platform providers shall provide a conspicuous and readily accessible method for a patron to close the patron's account through the account management page or through the lottery gaming facility manager’s or interactive sports wagering platform provider’s customer support team. Any balance remaining in a patron's sports wagering account closed by a patron shall be returned to the patron under the lottery gaming facility manager’s or the interactive sports wagering platform provider’s internal controls.

(n) A patron must be allowed to withdraw the funds maintained in the patron's open sports wagering account once all patron obligations have been fulfilled.

(o) A lottery gaming facility manager or interactive sports wagering platform provider must honor such patron request to withdraw funds within five calendar days of the request, unless the conditions specified in subsection (p) are met.

(p) The lottery gaming facility manager or the contracted interactive sports wagering platform provider may withhold funds pending an investigation only if the lottery gaming facility manager or the contracted interactive sports wagering platform provider has a good faith, reasonable, and documented belief that the patron has engaged in fraudulent conduct, illegal activity, violation of the terms and conditions of the interactive sports wagering platform, or other conduct that would put the lottery gaming facility manager or interactive sports wagering platform provider in violation of the law. When an instance of suspected fraud or illegal activity arises, the lottery gaming facility manager or the contracted interactive sports wagering platform provider shall conduct as expedient an investigation as practicable, providing the patron additional written notice of the status of the investigation at least every 10 calendar days starting from the day of the patron request.

(1) The lottery gaming facility manager or the contracted interactive sports wagering platform shall notify the executive director, or the executive director’s designee, within seven days of the patron’s request for withdrawal of funds. Monthly, the lottery gaming facility manager or the contracted sports wagering platform shall provide a report to the executive director of all patron funds held pending an investigation, including name of the patron and amount being withheld.

(2) Upon completion of any investigation, the lottery gaming facility manager or the contracted interactive sports wagering platform shall report to the executive director the findings of the investigation and results of the final disbursement of the withheld funds.

(q) For purposes of this provision, a request for withdrawal will be considered honored if it is processed by the lottery gaming facility manager or its interactive sports wagering platform provider notwithstanding a delay by a payment processor, credit card issuer, or the custodian of a financial account.

(r) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall consider a patron account to be dormant if the patron has not logged into the account for at least three years.

(1) The lottery gaming facility manager or the contracted interactive sports wagering platform provider shall provide notice to the patron prior to closing a dormant account. The notice shall provide options to reactivate or close the account. Funds of patrons that remain in a dormant patron account 30 days after notice was given shall be presumed abandoned.

(2) The lottery gaming facility manager or the contracted interactive sports wagering platform provider shall report and deliver all funds of patrons that are presumed abandoned as required under the Kansas expanded lottery act and applicable regulations. (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

***** Authenticated Kansas Administrative Regulation *****

Kan. Admin. Regs. § 112-201-15 House rules requirements.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-15. House rules requirements.

(a) The lottery gaming facility manager or the contracted interactive sports wagering platform shall create house rules and submit to the commission executive director for review.

(b) House rules shall establish operational procedures on how to deal with the following anomalies including how parlays are affected:

(1) Wager adjustments;

(2) event cancellations;

(3) schedule changes;

(4) rain delays or game rainouts;

(5) rejected wagers;

(6) canceled wagers;

(7) overtime/end of regulation;

(8) injuries; and

(9) any situation that can potentially affect the terms of the wager.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by; implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-16 Assign regulatory staff.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-16. Assign regulatory staff.

The executive director at any time may require a lottery gaming facility manager or their contracted interactive sports wagering platform provider to allow commission staff to be permanently present on the sport book’s premises, and to require the costs and expenses incurred by the assigned commission staff to be borne by the lottery gaming facility manager or their contracted interactive sports wagering platform provider in a manner deemed reasonable by the executive director. Commission staff shall have full and complete access to all books, records, and emails.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by K.S.A. 2023 Supp. 74-8772 and implementing K.S.A. 2023 Supp. 74-8752 and 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-17 Records and forms.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-17. Records and forms.

Lottery gaming facility managers or the contracted interactive sports wagering platform providers shall create and maintain the records and reports required by the applicable regulation on forms that the executive director approves.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-18 Sports wagering requirements

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-18. Sports wagering requirements.

(a) The lottery gaming facility manager or the contracted interactive sports wagering platform shall utilize ticket writers or sports wagering kiosks for wagering transactions in a location approved by the executive director. Sports wagering kiosks shall be subject to the approval and other requirements of the commission. This does not preclude use of a remote wagering device throughout the lottery gaming facility, or at a professional sports team or auto racetrack facility.

(b) Each lottery gaming facility manager shall file with the commission a schedule setting forth the specific times at which the canisters will be brought to or removed from the sports wagering kiosks. The sports wagering kiosk drop shall be monitored and recorded by surveillance. All changes to the sports wagering kiosk drop schedule and drop route shall be approved by the executive director. All sports wagering kiosk drop procedures shall be incorporated in the internal controls.

(1) The bill validator and bill validator canisters, as defined in K.A.R. 112-104-1, must meet the requirements specified in K.A.R. 112-104-17.

(2) The issuance, receipt, and reconciliation of imprest funds used by sports wagering kiosks shall be completed in accordance with K.A.R. 112-201-2.

(c) Whenever a point-of-sale is opened or closed for wagering or turned over to a new ticket writer, the ticket writer shall sign on or off and the interactive sports wagering platform creates a point-of-sale session record indicating the ticket writer’s identity, the date and time, the point-of-sale number, and the fact that the point-of-sale was opened or closed.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-19 Sports wagering voucher requirements.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-19. Sports wagering voucher requirements.

(a) Payment by sports wagering voucher as a method of credit redemption is only permissible when the contracted interactive sports wagering platform supports this functionality.

(b) A sports wagering voucher shall contain the following information:

(1) Voucher serial number;

(2) sports book name and site identification;

(3) ticket writer or sports wagering kiosk that issued the voucher;

(4) date and time the sports wagering voucher was issued;

(5) numeric value of the sports wagering voucher in dollars and cents;

(6) voucher number that appears on the leading edge of the sports wagering paper voucher;

(7) bar code or any machine readable code representing the validation number;

(8) indication if the sports wagering voucher is a duplicate;

(9) responsible gambling information; and

(10) indication of an expiration date which is 180 days from the date of issue.

(c) The interactive sports wagering platform provider is required to keep and maintain a record of sports wagering vouchers issued by ticket writers or sports wagering kiosks. The sports wagering voucher record on the interactive sports wagering platform shall contain the following sports wagering voucher information:

(1) Voucher serial number;

(2) date and time the sports wagering voucher was issued;

(3) type of transaction or other method of differentiating sports wagering voucher types;

(4) numeric value of the sports wagering voucher in dollars and cents;

(5) status of sports wagering voucher;

(6) date and time the sports wagering voucher will expire;

(7) ticket writer or sports wagering kiosk which issued the sports wagering voucher; and

(8) date and time the sports wagering voucher was redeemed, voided, or expired.

(d) Before redeeming a sports wagering voucher, the complete validation number of the unredeemed sports wagering voucher shall be available to the interactive sports wagering platform provider.

(e) Sports wagering vouchers shall be redeemed at a kiosk, point-of-sale, or ticket writer booths.

(f) Upon presentation of a sports wagering voucher for redemption at a kiosk, point-of-sale, or ticket writer window, the interactive sports wagering platform shall be used to verify the validity of the serial number and value of the voucher, and if valid, the platform shall immediately update the sports wagering voucher status and permit the redemption of the voucher for the value indicated thereon.

(g) The interactive sports wagering platform shall have the ability to identify errors or anomalies and notify the cashier or ticket writer that one of the following occurrences exists:

(1) Sports wagering voucher serial number cannot be found;

(2) sports wagering voucher has already been paid; or

(3) amount of sports wagering voucher for confirmation by a cashier or ticket writer during the redemption process.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-20 Patron disputes.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-20. Patron disputes.

Lottery gaming facility managers and interactive sports wagering platform provider must include on the interactive sports wagering platform a notice or link to advise patrons of their right to make a complaint against the lottery gaming facility manager or interactive sports wagering platform provider, including information explaining how complaints may be filed, how complaints are resolved, and how the patron may submit a complaint to the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-21 Sports wagering transactions

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-21. Sports wagering transactions.

A lottery gaming facility manager shall submit sports wagering internal controls along with a floor plan and corresponding surveillance floor plan to the commission.

(a) Sports wagering at a lottery gaming facility shall not commence until the floor plan is approved by the executive director.

(b) Sports wagering internal controls at a lottery gaming facility shall not be effective until approved by the commission.

(1) A counter or window located in the sportsbook at the lottery gaming facility or other cage cashier window locations at the lottery gaming facility as approved by the executive director;

(2) sports wagering kiosks in locations as approved by the executive director; or

(3) a device located within the geographical boundaries of Kansas which accesses a mobile application or the internet.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-22 Sports wagering exclusion list.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-22. Sports wagering exclusion list.

The lottery gaming facility manager shall submit for approval by the executive director internal controls for the following:

(a) Preventing wagering by prohibited sports wagering participants;

(b) identifying and restricting prohibited sports wagering participants;

(1) Providing a notification containing the voluntary or involuntary exclusion status and general instructions for resolution or change of status, if applicable;

(2) Confirming that immediately upon executing the voluntary or involuntary exclusion, no new wagers or deposits are accepted from the patron, until such time as the sports wagering exclusion has been revoked; and

(3) Confirming that the patron is not prevented from withdrawing any or all of their account balance, provided that the lottery gaming facility manager or the interactive sports wagering platform provider acknowledges that the funds have cleared, and that the reason(s) for exclusion would not prohibit a withdrawal.

(4) Confirming that the lottery gaming facility manager excludes patrons who applied for and became participants in the VEP program after September 1, 2022 from sports wagering while participating in the VEP program established by article 112 of the commission’s regulations.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-201-23 Waiver of requirements.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 201.—General Provisions and Definitions

112-201-23. Waiver of requirements.

(a) One or more of the requirements of this article of the commission’s regulations applicable to sports wagering may be waived by the commission.

(b) The waiver may be granted upon the commission’s determination that the compensating control or procedure, as documented in a lottery gaming facility manager’s or the contracted interactive sports wagering platform provider’s internal control system, meets the operational integrity requirements of the act and this article.

(c) Any lottery gaming facility manager or interactive sports wagering platform provider may submit a written request to the commission for a waiver for one or more of the requirements in this article of the commission’s regulations. The request shall be filed on an amendment waiver and request form provided by the commission and shall include supporting documentation demonstrating how the proposed auditing and internal controls for which the waiver has been requested would meet the operational integrity requirements of the act and this article.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Article 202 Risk Management and Sports Wagering Registrant

Kan. Admin. Regs. § 112-202-1 Risk management requirements

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 202.—Risk Management and Sports Wagering Registrant

112-202-1. Risk management requirements.

(a) An approved interactive sports wagering platform provider engaging in risk management may provide direction, management, consultation, and/or instruction to the lottery gaming facility manager concerning:

(1) The management of risks associated with sports wagering and other event wagering;

(2) the determination of where lines, point spreads, odds, or other activity relating to betting or wagering are initially set and the determination of whether to change such lines, point spreads, odds, or other activity relating to betting or wagering;

(3) the decision of whether to accept or reject bets or wagers; and

(4) the use, transmittal, and accumulation of information and data for the purpose of providing risk management.

(b) An approved interactive sports wagering platform provider which intends to provide risk management shall enter into a written agreement with the lottery gaming facility manager to provide risk management. A copy of such executed agreement shall be provided to the executive director no later than the date on which the interactive sports wagering platform provider commences risk management.

(c) Each lottery gaming facility manager’s or the contracted interactive sports wagering platform provider’s internal controls shall contain details on its risk management framework, including but not limited to:

(1) Automated and manual risk management procedures;

(2) employee management, including access controls and segregation of duties;

(3) information regarding identifying and reporting fraud and suspicious conduct;

(4) controls ensuring regulatory compliance;

(5) description of anti-money laundering compliance standards including procedures for detecting structuring to avoid reporting requirements;

(6) description of all software applications that comprise the interactive sports wagering platform;

(7) description of all types of wagers available to be offered by the interactive sports wagering platform;

(8) description of the method to prevent past-post wagers from being placed; and

(9) description of all integrated third-party service providers.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-202-2 Sports wagering registration requirement

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 202.—Risk Management and Sports Wagering Registrant

112-202-2. Sports wagering registration requirement.

(a) An individual or entity that is contracted to provide goods or services or sport governing body personnel that the executive director determines affects the conduct of sports wagering but falls outside of the scope of an interactive sports wagering platform certification or a vendor’s certification shall be required to register with the commission as a sports wagering registrant.

(b) A lottery gaming facility manager shall conduct due diligence in a commercially reasonable manner of each contracted sports wagering registrant. The due diligence check is for high-level company officers and employees with decision making ability that directly affects sports wagering related operations.

(c) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall have each contracted sports wagering registrant complete a sports wagering registrant form and provide these to the commission.

(d) All information deemed necessary shall be provided to the commission upon request.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Article 203 Interactive Sports Wagering Platform Requirements

Kan. Admin. Regs. § 112-203-1 Communications technology.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 203.—Interactive Sports Wagering Platform Requirements

112-203-1. Communications technology.

Before the interactive sports wagering platform accepts any wagering communications or accepts any wagering instructions, the lottery gaming facility manager shall obtain written approval from the executive director to accept wagering communications and wagering instructions. Only the communications technology approved for the acceptance of wagering communication or wagering instructions shall be used.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-203-2 Change management requirements.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 203.—Interactive Sports Wagering Platform Requirements

112-203-2. Change management requirements.

(a) The interactive sports wagering platform shall have a change management program approved by the executive director. The change management program shall ensure that all changes to the interactive sports wagering platform are conducted by an established set of processes. These processes shall be:

(1) approved prior to deployment and is subject to an audit at an annual interval; and

(2) certified by a commission-approved independent

testing laboratory that the processes are developed in accordance with the most current version of gaming laboratories international’s GLI-CMP change management program guide.

(b) The processes are subject to an annual audit by the executive director or

the executive director’s designee which may be a Kansas racing and gaming commission-approved independent testing laboratory. A list of commission-approved testing laboratories is available from the commission by request.

(c) The change management program shall ensure transparency in relation to changes in the interactive sports wagering platform and the system process behind those changes.

(d) The change management program shall consist of the following:

(1) Administration of system changes;

(2) definition of responsibilities, to include:

(A) license holder; and

(B) change management system subject matter expert/manager;

(3) categories of requests for change.

(A) Substantial change includes changes to the security, integrity, recovery and availability of the sports betting system. Change request requires notification and approval of the change by the executive director prior to deployment.

(B) Non-substantial change requires notification to the executive director and if no objection to the change is raised within three business days of receiving the notification, the change shall be deemed approved.

(e) The interactive sports wagering platform shall appoint one or more among their staff to take overall responsibility of system changes.

(1) The responsible manager shall possess sufficient experience and competence in relation to change management and hold a key position within the interactive sports wagering platform in relation to change management.

(2) The responsible managers need not necessarily handle the system changes personally. The interactive sports wagering platform shall keep a log of the persons who have been involved in the decision process.

(f) Program change control procedures shall be adequate to ensure that only authorized versions of programs are implemented on the production environment. These change controls shall include an appropriate software version control or mechanism for all software components and source code.

(g) Records shall be kept of all new installations and/or modifications to the system, including:

(1) Date of the installation or modification;

(2) details of the reason or nature of the installation or change such as new software, server repair, significant configuration modifications;

(3) description of procedures required to bring the new or modified component into service (conversion or input of data, installation procedures, etc.);

(4) identity of the user performing the installation or modification;

(5) strategy for reverting back to the previous implementation if install is unsuccessful, including complete backups of previous versions of software and a test of the rollback plan prior to the implementation to the production environment;

(6) policy addressing emergency change procedures;

(7) procedure for testing and migration of changes;

(8) policy addressing segregation of duties between the developers, quality assurance team, migration team and users; and

(9) procedure to ensure technical and user documentation is updated as a result of a change.

(h) Remote access into the interactive sports wagering platform shall meet the requirements of K.A.R. 112-107-31.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-203-3 Interactive sports wagering platform requirements.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 203.—Interactive Sports Wagering Platform Requirements

112-203-3. Interactive sports wagering platform requirements.

(a) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall document and maintain any system malfunction of the interactive sports wagering platform for a minimum period of two years.

(b) A lottery gaming facility manager or the contracted interactive sports wagering platform provider shall provide the executive director or the executive director’s designee with unlimited access to wagering transactions and related data.

(c) All interactive sports wagering platforms shall be designed to ensure the integrity and confidentiality of all patron communications and ensure the proper identification of the sender and receiver of all communications. If communications are performed across a public or third-party network, the platform shall either encrypt the data packets or utilize a secure communications protocol to ensure the integrity and the confidentiality of the transmission.

(d) The interactive sports wagering platform shall employ a mechanism capable of maintaining a separate copy of all information required to be kept or produced by commission regulation on a separate and independent logging device capable of being administered by an employee with no incompatible function. If the interactive sports wagering platform can be configured such that any logged data is contained in a secure transaction file, a separate logging device is not required.

(e) All interactive sports wagering platform data shall be required to be exported in a format accessible by the commission.

(f) All procedures used to meet the interactive sports wagering requirements shall be submitted in the internal controls.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-203-4 Electronic asset disposal.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 203.—Interactive Sports Wagering Platform Requirements

112-203-4. Electronic asset disposal.

(a) Prior to disposal of an electronic asset, any sensitive and confidential data shall be sanitized from the equipment by performing a data wipe or over-write or physical destruction of the electronic asset overseen by a commission agent.

(b) The lottery gaming facility manager must provide to the executive director at least 14 days prior to the requested disposal date the following:

(1) a written request to destroy an electronic asset;

(2) proof of the Kansas Lottery approval of the request to destroy an electronic asset; and

(3) a description of the electronic asset.

(1) overwriting the media;

(2) magnetic erasure of the media;

(3) physical destruction of the media; or

(4) other method approved by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-203-5 Server location and access.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 203.—Interactive Sports Wagering Platform Requirements

112-203-5. Server location and access.

(a) The lottery gaming facility manager or the contracted interactive sports wagering platform provider shall locate its primary server responsible for the acceptance of sports wagers in the state of Kansas. The location of the primary server shall have approval from the executive director prior to operation. The executive director may approve of the use of internet or cloud-based hosting of duplicate data or data not related to transactional wagering data upon written request of a lottery facility manager.

(b) The locations selected must have adequate security and twenty-four hour surveillance.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-203-6 Geofence requirement.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 203.—Interactive Sports Wagering Platform Requirements

112-203-6. Geofence requirement.

(a) In order to prevent unauthorized use of the internet or a mobile device to place a sports wager when a patron is not within the state of Kansas, the lottery gaming facility manager or its interactive sports wagering platform provider shall utilize a geofence system that reasonably detects the physical location of a patron attempting to access the interactive sports wagering platform and place a wager, and to monitor and block unauthorized attempts to place a wager when a patron is not within the state of Kansas.

(b) Before being deployed in this state the geofence system shall be certified by a Kansas racing and gaming commission approved independent testing laboratory, including applicable field testing and evaluation of the following geolocation techniques and methods:

(1) Basic methods that include IP addresses;

(2) advanced methods using trilateration through:

(A) cell towers;

(B) wi-fi; and

(3) methods utilized in order to prevent unauthorized use of interactive sports wagering platform;

(4) geolocation techniques reasonably possessing the ability to detect the physical location of a patron attempting to access the interactive sports wagering platform and to monitor and block unauthorized attempts;

(5) prior to deployment, the geofence system shall have approval from the executive director.

(c) An interactive sports wagering platform shall check the patron’s location prior to the placement of the first wager after the patron logs into their account and after a change of IP address.

(d) Recurring periodic geolocation checks shall be conducted prior to the placement of wagers as follows:

(1) for static connections, at least every 30 minutes or 5 minutes if within 1 mile of the border of the authorized geographic boundaries; and

(2) for mobile connections, at intervals to be based on a patron's proximity to the border of the authorized geographic boundaries with an assumed travel velocity of 70 miles per hour or a demonstrated average velocity of a roadway or path. This interval shall not exceed 30 minutes.

(e) Mechanisms shall be in place to detect software, programs, virtualization, and other technology that may obscure or falsify the patron’s physical location.

(f) At least every 90 days, the lottery gaming facility manager or its interactive sports wagering platform provider shall review the functionality of the geolocations services to ensure the system detects and mitigates existing and emerging location fraud risks.

(g) Neither the location of the patron nor the location of the patron’s device shall be checked or tracked when the patron is not attempting to access an interactive sports wagering platform’s website or mobile application.

(h) The lottery gaming facility manager or its interactive sports wagering platform provider shall make real-time or historical data, including any equipment or software necessary to view the data, available to the commission upon request.

(i) a list of commission approved testing laboratories is available upon request.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-203-7 Certification testing.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 203.—Interactive Sports Wagering Platform Requirements

112-203-7. Certification testing.

(a) Prior to offering sports wagering, the interactive sports wagering platform and equipment used in conjunction with sports wagering shall be evaluated by a Kansas racing and gaming commission approved independent testing laboratory.

(b) The Kansas racing and gaming commission approved independent testing laboratory shall certify that the interactive sports wagering platform and equipment used in conjunction with the sports wagering operation meets or exceeds version 1.1 of gaming laboratories international’s GLI-33, standards for event wagering systems and its appendices, or equivalent standard as approved by the commission, and the standards established by the commission’s regulations. The list of commission approved testing laboratories is available by request.

(1) Wagering account controls/authentication;

(2) geolocation verification;

(3) base and peripheral web pages (artwork and functionality);

(4) wagering disclosure and operation;

(5) settlement determination and display;

(6) payment of winnings;

(7) all supporting wager types (straight, fixed odds, etc.);

(8) cancellation, voiding, suspension or termination of bets or events;

(9) financial/operational accounting and reporting;

(10) wagering history;

(11) shutdown and recovery;

(12) desktop and mobile compatibility;

(13) technical standards-specific requirements;

(14) source code review;

(15) software and system version control; and

(16) submitted documentation review.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-203-8 Waiver of requirements

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 203.—Interactive Sports Wagering Platform Requirements

112-203-8. Waiver of requirements.

(a) One or more of the requirements of this article of the commission’s regulations applicable to technology and interactive sports wagering platform requirements may be waived by the commission.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Article 204 Financial Reporting and Auditing

Kan. Admin. Regs. § 112-204-1 Compliance and audit requirements

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 204.—Financial Reporting and Auditing

112-204-1. Compliance and audit requirements.

(a) Each lottery gaming facility manager or the contracted interactive sports wagering platform provider must have documented revenue audit procedures. Documentation must be maintained evidencing the performance of all revenue audit procedures, any exceptions noted, and follow-up of all exceptions.

(b) The lottery gaming facility manager or the contracted interactive sports wagering platform provider, mobile management services provider, or management services provider must notify the commission of any report that is filed, or required to be filed, with the Securities and Exchange Commission or other securities regulatory agency.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-204-2 Revenue reporting.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 204.—Financial Reporting and Auditing

112-204-2. Revenue reporting.

(a) Reports generated from the interactive sports wagering platform shall be made available when requested by the commission. The interactive sports wagering platform shall be capable of issuing reports by wagering day, wagering month, and wagering year. Wagering data shall not be purged until approved by the commission. The interactive sports wagering platform shall provide for a mechanism to export the data for the purposes of data analysis and auditing or verification. The interactive sports wagering platform shall be able to provide, at a minimum, the following sports wagering information:

(1) The date and time each event started and ended;

(2) total amount of wagers collected;

(3) total amount of winnings paid to patrons;

(4) total amount of wagers canceled, voided, and expired;

(5) commission or fees collected;

(6) total value of promotional play or free play used to purchase or execute a sports wager;

(7) event status;

(8) total amount held by the operator for the sports wagering accounts;

(9) total amount of wagers placed on future events; and

(10) total amount of winnings owed but unpaid by the lottery gaming facility manager or interactive sports wagering platform provider on winning wagers.

(b) For accounting and revenue audit purposes each lottery gaming facility manager or its interactive sports wagering platform provider must have procedures and systems for the preparation, use, and maintenance of complete, accurate, and legible accounting and wagering records, which must include all transactions.

(c) All books, forms, records, documents, and data submitted to the commission must have the name of the submitting entity, date of completion, and the title of the book, form, record, document, or stored data.

(d) General accounting records shall be maintained on a basis consistent with generally accepted accounting principles.

(e) Reports shall be provided in a format approved by the commission. (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

***** Authenticated Kansas Administrative Regulation *****

Kan. Admin. Regs. § 112-204-3 Annual integrity and security audit.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 204.—Financial Reporting and Auditing

112-204-3. Annual integrity and security audit.

(a) If an interactive sports wagering platform provider is conducting sports wagering for a lottery gaming facility manager, an audit of the sports wagering operations in Kansas for the interactive sports wagering platform shall be conducted by certified public accountants authorized to practice in the state of Kansas. The audit shall be provided to the commission within 120 days of the provider’s fiscal year end and meet the following conditions:

(1) Inclusion of an internal control letter, audited balance sheet, and audited profit-and-loss statement including a breakdown of expenditures and subsidiaries of sports wagering activities;

(2) inclusion of a supplement schedule indicating financial activities on a calendar-year basis if the provider’s fiscal year does not correspond to the calendar year;

(3) inclusion of a supplement schedule for all Kansas locations in which the provider operates;

(4) report of any material errors, irregularities that may be discovered during the audit, or notice of any audit adjustments;

(5) availability, upon request, of an engagement letter for the audit between the provider or parent company of the provider and the auditing firm; and

(6) contain the information specified in K.A.R. 112-104-6.

(b) Each lottery gaming facility manager or the contracted interactive sports wagering platform provider shall contract with an independent third party to perform an IT audit. The third party must be approved by the executive director as qualified, independent, and capable of performing the audit. A copy of the audit and resulting report shall be provided to the commission within 90 days of commencing initial operations and at least once each calendar year. The audit and corresponding report must assess the following:

(1) The design, controls, maintenance, and security of the contracted interactive sports wagering platform’s internet technology (IT) systems, including:

(A) document review;

(i) system architecture review;

(ii) policies and procedures review;

(B) onsite audits;

(i) physical and environmental security;

(ii) verification of procedures;

(i) internal and external vulnerability assessments;

(ii) network and application layer penetration testing;

(iii) firewall rules review; and

(2) The lottery gaming facility manager’s or the contracted interactive sports wagering platform provider’s compliance with the IT and interactive sports wagering platform requirements of commission regulations.

(1) Laboratory document review;

(A) system architecture review;

(B) policies and procedures review;

(2) onsite audits;

(A) physical and environmental security; and

(B) verification of procedures.

(d) At any time, the executive director may require a special audit of a lottery gaming facility manager or the contracted interactive sports wagering platform provider by commission personnel or an independent third party. The third party must be approved by the executive director as qualified, independent, and capable of performing the audit. Any data or records necessary for conduct of a special audit shall be made available to the commission or the independent auditor.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-204-4 Pools and promotional activities.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 204.—Financial Reporting and Auditing

112-204-4. Pools and promotional activities.

(a) Pools may be conducted by the lottery gaming facility manager or the contracted interactive sports wagering platform provider providing the pool mechanic has prior approval by the executive director. The pool mechanic is deemed approved if no objection is raised by the executive director within three business days of submission.

(1) Pool mechanics shall be made available to participants for review prior to registering. Pool mechanics shall include, at a minimum: all conditions registered patrons must meet to qualify to enter or advance through the pool, available prizes or awards, fees, and distribution of prizes or awards based on specific outcomes.

(2) Changes to pool mechanics shall not be made after participants have registered, unless approved by the executive director.

(3) Results for pools with an entry fee shall be made available for the registered patrons to review at the same location at which or in the same manner in which patrons registered. Results shall include, at a minimum: name of the event, date of the event, total number of entries, amount of entry fees, total prize pool, and amount paid for each winning category.

(4) Fees collected less any prizes paid will be considered sports wagering revenue.

(5) All emails or digital advertisements promoting pools shall include a link or other easily obtainable source that includes pool mechanics or terms and conditions.

(6) Pools must comply with all federal, state, and local laws including 18 U.S.C. §1084.

(7) Pool mechanics shall be submitted at least 14 days prior to the pool being active for patron registration.

(8) The lottery gaming facility manager or the contracted interactive sports wagering platform provider shall maintain a digital log of all pools. All digital logs shall be made available to the commission for two years.

(b) A lottery gaming facility or the contracted interactive sports wagering platform are prohibited from using the term “risk free” in advertising and promotional activity. (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

***** Authenticated Kansas Administrative Regulation *****

Kan. Admin. Regs. § 112-204-5 Internal audit.

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 204.—Financial Reporting and Auditing

112-204-5. Internal audit.

(a) Each lottery gaming facility manager or the contracted interactive sports wagering platform provider shall include an internal control for internal audit standards. The internal controls shall be submitted to and approved by the commission as specified in K.A.R. 112-104-1. Lottery gaming facility managers or the contracted interactive sports wagering platform providers shall maintain a separate internal audit department located on-site that shall be independent of the sports wagering operation and may be the internal audit department of a parent entity of the lottery gaming facility manager or interactive sports wagering platform provider.

(b) The internal audit department shall audit the lottery gaming facility manager’s or the contracted interactive sports wagering platform provider’s compliance with the regulations adopted by the commission, the internal controls as approved by the commission, and the house rules.

(c) The internal audit department shall follow the standards, conventions, and rules governing audits in accordance with international standards for the professional practice of internal auditing or generally accepted auditing standards.

(d) The audit satisfying the requirements of this rule shall be performed at least semi-annually with the results documented in an audit report that must be provided to the commission within 30 days of the audit being performed.

(e) Documentation shall be maintained to evidence all work performed as it relates to the requirements of this regulation, including all instances of noncompliance for two years.

(f) Follow-up observations and examinations by the internal audit department shall be performed to verify that corrective action has been taken regarding all instances of noncompliance cited by internal audit, the independent accountant, and the commission. The verification shall be performed within three months of the issuance of the audit report.

(g) Whenever possible, internal audit observations shall be performed on an unannounced basis.

(h) All deficiencies disclosed during audits shall be investigated and resolved with the results being documented and retained for seven years.

(i) Additional audits may be ordered by the commission to verify corrective action or when noncompliance with the regulations adopted by the commission, the internal controls as approved by the commission, or the house rules are discovered or suspected.

(j) All internal audit findings shall be reported to lottery gaming facility management and shall be required to respond to internal audit findings stating corrective measures to be taken to avoid recurrence of the audit exception. The management responses shall be included in the internal audit reports that are delivered to the lottery gaming facility manager’s management, the commission, or other entity designated by the executive director.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-204-6 External audits and other reports

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 204.—Financial Reporting and Auditing

112-204-6. External audits and other reports.

(a) Each lottery gaming facility manager or the contracted interactive sports wagering platform provider shall have annual financial statements for its Kansas operations audited by an independent registered certified public accounting firm approved by the executive director and licensed to practice in Kansas. A list of approved certified public accounting firms will be provided upon request. The audit must be in accordance with generally accepted auditing standards and, when applicable, the standards of the Kansas board of accountancy. The lottery gaming facility manager or interactive sports wagering platform provider must report to the commission the name of the independent registered certified public accounting firm as well as the lead audit partner or other individual taking primary responsibility for the financial statement audit engagement before the start of the engagement.

(b) The lead audit partner or other individual taking primary responsibility for the financial statement audit engagement may serve a maximum of five years in such a position before being required to rotate off of the financial statement external audit required by this regulation.

(c) The annual financial statements audit must be prepared on a comparative basis for the current and prior fiscal years and present financial position and results of operations in conformity with generally accepted accounting principles.

(d) The audit required by paragraph (a) of this regulation shall be filed with the commission in a format acceptable to the commission within 120 days following the end of the State of Kansas fiscal year.

(e) All audits and reports required by this rule are to be prepared at the sole expense of the lottery gaming facility manager or the contracted interactive sports wagering platform provider.

(f) The commission may require the termination of any contract to perform an audit due to lack of qualification, independence, or capacity of the auditor or a finding that the contract or conduct performed thereunder poses a material risk to the integrity of sports wagering in Kansas. If a contract to perform an audit is terminated, the lottery gaming facility manager or the contracted interactive sports wagering platform provider shall enter into a new contract to perform an audit to ensure the requirements of this regulation are met.

***** Authenticated Kansas Administrative Regulation *****

History

History: (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

Kan. Admin. Regs. § 112-204-7 Waiver of requirements

Kansas Administrative Regulations

Kansas Racing and Gaming Commission

Article 204.—Financial Reporting and Auditing

112-204-7. Waiver of requirements.

(a) One or more of the requirements of this article of the commission regulations applicable to auditing and accounting may be waived by the commission. The waiver may be granted upon the commission’s determination that the compensating control or procedure, as documented in a lottery gaming facility manager’s or the contracted interactive sports wagering platform provider’s internal control system, meets the operational integrity requirements of the act and this article.

(b) Any lottery gaming facility manager or interactive sports wagering platform provider may submit a written request to the commission for a waiver for one or more of the requirements in this article of the commission’s regulations. The request shall be filed on an amendment waiver and request form provided by the commission and shall include supporting documentation demonstrating how the proposed auditing and internal controls for which the waiver has been requested would meet the operational integrity requirements of the act and this article of the commission’s regulations. (Authorized by and implementing K.S.A. 2023 Supp. 74-8772; effective, T-112-10-17-23, Aug. 12, 2022; effective Sept. 11, 2026.)

***** Authenticated Kansas Administrative Regulation *****