reglab/statecodes huggingface dataset:
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 82 - Kansas Statewide Risk Capital System › 74-8201 Kansas statewide risk capital system; purposes.

74-8201.
Kansas statewide risk capital system; purposes.
The purpose of this act is to create a Kansas statewide risk capital system to meet the special needs of the various regions of Kansas. This system will invest $10,000,000 of state funds to create private risk capital for investment in smaller Kansas businesses. This investment will, in turn, lead to further growth, diversification and improvement of the Kansas economy in all geographic regions in a diversified range of primary sectors concerned with products, processes and services that create jobs, wealth and income for the benefit of Kansas and Kansans especially in nonmetropolitan areas of the state.
History:
L. 1986, ch. 332, § 1; May 22.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 82 - Kansas Statewide Risk Capital System › 74-8202 Definitions.

74-8202.
Definitions.
For the purposes of this act, the following terms shall have the meanings provided herein:
(a) "Department" means the department of commerce.
(b) "Kansas business" means any small business owned by an individual, any partnership, association or corporation domiciled in Kansas, or any corporation, even if a wholly owned subsidiary of a foreign corporation, that does business primarily in Kansas or does substantially all of its production in Kansas.
(c) "Secretary" means the secretary of the department of commerce.
History: L. 1986, ch. 332, § 2; L. 1987, ch. 319, § 1; April 23.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 82 - Kansas Statewide Risk Capital System › 74-8204 Annual report by Kansas venture capital, inc.; contents.

74-8204. Annual report by Kansas venture capital, inc.; contents.
(a) Kansas venture capital, inc., shall prepare and publish an annual report of its activities for the information of the governor, the standing committee on commerce of the senate, the standing committee on commerce, labor and economic development of the house of representatives, securities commissioner of Kansas, attorney general and the public which shall be made widely available and shall specifically account for:
(1) The manner in which the purpose as described in this act has been carried out by Kansas venture capital, inc.;
(2) the total investments made annually by Kansas venture capital, inc., in Kansas businesses;
(3) an estimate of jobs created and jobs preserved by investments by Kansas venture capital, inc., in Kansas businesses;
(4) an estimate of the multiplier effect on the Kansas economy of investments by Kansas venture capital, inc., in Kansas businesses; and
(5) an analysis of the targeting of scarce resources by Kansas venture capital, inc., by size, sector and location to enterprises of particular need and opportunity.
(b) The report to the standing committee on commerce of the senate and the standing committee on commerce, labor and economic development of the house of representatives under this section shall be made by Kansas venture capital, inc., either: (1) By publishing such report on the internet and by notifying each member of the committees that the report is available and providing, as part of such notice, the uniform resource locator (URL) at which such report is available; or (2) by submitting copies of such report on CD-ROM or other electronically readable media.
History:
L. 1986, ch. 332, § 4; L. 1993, ch. 136, § 15; L. 2002, ch. 151, § 8; L. 2012, ch. 65, § 20; L. 2013, ch. 134, § 16; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 82 - Kansas Statewide Risk Capital System › 74-8205 Tax credits for investment in stock of Kansas Venture Capital, Inc. by banks, savings and loan associations and insurance companies; taxable years applicable.

74-8205.
Tax credits for investment in stock of Kansas Venture Capital, Inc. by banks, savings and loan associations and insurance companies; taxable years applicable.
(a) Except as otherwise provided in K.S.A. 74-8207, and amendments thereto, every national banking association, state bank, savings and loan association or insurance company investing in stock issued by Kansas Venture Capital, Inc. shall be entitled to a credit in an amount equal to 25% of the total amount of cash investment in such stock against the tax liability imposed against such taxpayer pursuant to K.S.A. 79-1106 to 79-1116, inclusive, and amendments thereto or K.S.A. 40-252, and amendments thereto, as the case requires. The amount by which that portion of the credit allowed by this section exceeds the taxpayer's tax liability in any one taxable year may be carried forward until the total amount of the credit is used.
(b) The provisions of this section shall be applicable to investments made in all taxable years commencing after December 31, 1997, and until all allowed credits are exhausted.
History:
L. 1986, ch. 332, § 10; L. 1987, ch. 320, § 5; L. 1988, ch. 313, § 1; L. 1993, ch. 151, § 2; L. 1998, ch. 108, § 2; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 82 - Kansas Statewide Risk Capital System › 74-8206 Income tax credit for investment in stock of Kansas Venture Capital, Inc. by corporations.

74-8206. Income tax credit for investment in stock of Kansas Venture Capital, Inc. by corporations.
(a) Except as otherwise provided in K.S.A. 74-8207, and amendments thereto, every taxpayer investing in stock issued by Kansas Venture Capital, Inc. shall be entitled to a credit in an amount equal to 25% of the total amount of cash investment in such stock against the income tax liability imposed against such taxpayer pursuant to article 32 of chapter 79 of the Kansas Statutes Annotated. The amount by which that portion of the credit allowed by this section exceeds the taxpayer's tax liability in any one taxable year may be carried forward until the total amount of the credit is used. If the taxpayer is a corporation having an election in effect under subchapter S of the federal internal revenue code or a partnership, the credit provided by this section shall be claimed by the shareholders of such corporation or the partners of such partnership in the same manner as such shareholders or partners account for their proportionate shares of the income or loss of the corporation or partnership.
(b) No taxpayer claiming a credit under this section for cash investment in stock issued by Kansas Venture Capital, Inc. shall be eligible to claim a credit for the same investment under the provisions of K.S.A. 74-8301 to 74-8311, inclusive, and amendments thereto.
(c) The provisions of this section, and amendments thereto, shall be applicable to all taxable years commencing after December 31, 1997, until all allowed credits are exhausted.
(d) For tax year 2013 and all tax years thereafter, the income tax credit provided by this section shall only be available to taxpayers subject to the income tax on corporations imposed pursuant to subsection (c) of K.S.A. 79-32,110, and amendments thereto, and shall be applied only against such taxpayer's corporate income tax liability.
History:
L. 1986, ch. 332, § 11; L. 1987, ch. 321, § 2; L. 1988, ch. 313, § 2; L. 1993, ch. 151, § 3; L. 1998, ch. 108, § 3; L. 2012, ch. 135, § 6; January 1, 2013.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 82 - Kansas Statewide Risk Capital System › 74-8207 Limitation on tax credits.

74-8207.
Limitation on tax credits.
The secretary of revenue may allow credits pursuant to K.S.A. 74-8205 and 74-8206 and amendments thereto that are attributable to not more than $10,000,000 of cash investment in Kansas Venture Capital, Inc. subject to the overall limitations of subsection (b) of K.S.A. 74-8304 and subsection (b) of 74-8401 and amendments thereto. With respect to the additional amount of cash investments made eligible for tax credits by this act, $5,000,000 of such amount shall be dedicated and reserved until June 30, 1990, for cash investments in Kansas Venture Capital, Inc. The $50,000,000 amount of cash investments now eligible for the tax credits allowed pursuant to K.S.A. 74-8205, 74-8206, 74-8304 and 74-8401 and amendments thereto shall be reduced to the extent that the total amount of investments paid in to Kansas Venture Capital, Inc. on and after July 1, 1989, and before July 1, 1990, is less than $5,000,000.
History:
L. 1986, ch. 332, § 12; L. 1989, ch. 241, § 3; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 82 - Kansas Statewide Risk Capital System › 74-8208 State not liable to investors in Kansas Venture Capital, Inc.

74-8208.
State not liable to investors in Kansas Venture Capital, Inc.
The state of Kansas may not be held liable for any damages to an investor in Kansas Venture Capital, Inc.
History:
L. 1986, ch. 332, § 14; May 22.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 82 - Kansas Statewide Risk Capital System › 74-8209 Audit by legislative division of post audit.

74-8209.
Audit by legislative division of post audit.
Kansas Venture Capital, Inc. shall be subject to an audit by the legislative division of post audit.
History:
L. 1986, ch. 332, § 15; May 22.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 82 - Kansas Statewide Risk Capital System › 74-8210 Severability of act.

74-8210.
Severability of act.
If any provision of this act or the application thereof to any person or circumstances is held invalid, the invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.
History:
L. 1986, ch. 332, § 17; May 22.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 82 - Kansas Statewide Risk Capital System › 74-8211 Expiration of sections.

74-8211.
Expiration of sections.
At such time as the board of Kansas Venture Capital, Inc. redeems all of its nonvoting preferred stock as authorized pursuant to K.S.A. 74-8203, and amendments thereto, the provisions of K.S.A. 74-8203, 74-8204, 74-8207, 74-8208, 74-8209 and 74-8210 shall expire.
History:
L. 1998, ch. 108, § 8; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 83 - Kansas Venture Capital Company Act › 74-8302 Purpose of act.

74-8302.
Purpose of act.
The purpose of the Kansas venture capital company act is to facilitate the formation of private venture capital companies that meet generally accepted national standards for private venture capital companies, and that make equity investments in the creation and expansion of Kansas businesses which are job and wealth creating enterprises by granting tax credits against the Kansas income tax liability of taxpayers investing in such Kansas venture capital companies and taxpayers acquiring credits pursuant to transfers as provided in K.S.A. 74-8304a.
History: L. 1986, ch. 285, § 2; L. 1987, ch. 322, § 1; April 16.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 83 - Kansas Venture Capital Company Act › 74-8303 Definitions.

74-8303.
Definitions.
For the purposes of this act, the following terms shall have the meanings provided herein, unless the context clearly indicates otherwise:
(a) "Department" means the department of commerce;
(b) "equity" means all forms of equity such as common stock, preferred stock with or without voting rights and without regard to seniority of equity position, forms of subordinate or convertible debt, or both, with warrants or other means of equity conversion attached, or any other means of financing which meet generally accepted national standards for venture capital investment in the United States;
(c) "Kansas business" means any small business owned by an individual, any partnership, association or corporation domiciled in Kansas, or any corporation, even if a wholly owned subsidiary of a foreign corporation, that does business primarily in Kansas or does substantially all of its production in Kansas;
(d) "Kansas venture capital company" means any for-profit partnership, limited liability company or corporation that has as its primary business activity the investment of funds in return for equity in ventures that are in need of capital for expansion, new product development or similar business purposes and that may be certified by the secretary as meeting the criteria of this act and thus eligible for the tax credit provided in this act;
(e) "secretary" means the secretary of the department of commerce;
(f) "cash investment" means money or its equivalent in consideration for:
(1) An equity interest, such as a general or limited partnership interest, common or preferred stock with or without voting rights and without regard to seniority position, forms of subordinate or convertible debt, or both, with warrants or other means of equity conversion attached; or
(2) a debt instrument, such as a note or debenture, which is unsecured, subordinated to the general creditors of the debtor, and requires no payments of principal (other than principal payments required to be made out of any future profits of such debtor) for at least a seven-year period after commencement of its term.
History:
L. 1986, ch. 285, § 3; L. 1987, ch. 320, § 1; L. 1998, ch. 108, § 4; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 83 - Kansas Venture Capital Company Act › 74-8304a Same; acquisition by transfer of interest from investors exempt from taxation; conditions; limitations; documentation.

74-8304a.
Same; acquisition by transfer of interest from investors exempt from taxation; conditions; limitations; documentation.
Any investor that is not subject to taxation under the provisions of Article 32 of Chapter 79 of the Kansas Statutes Annotated and that makes a cash investment in a certified Kansas venture capital company shall be deemed to acquire an interest in the nature of a transferable credit limited to an amount equal to 25% of such cash investment. Such interest may be transferred to a taxpayer and be claimed by such taxpayer as a credit against the taxpayer's Kansas income tax liability beginning in the taxpayer's taxable year in which the investment in the Kansas venture capital company was made. An investor shall not be entitled to a refund for the interest created under this section. Only the full credit for any one investment may be transferred and such credit may only be transferred one time. A credit acquired by transfer shall be subject to the limitations prescribed by K.S.A. 74-8304 and amendments thereto. Documentation of any credit acquired by transfer shall be provided by the taxpayer in the manner required by the director of taxation.
History: L. 1987, ch. 322, § 2; April 16.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 83 - Kansas Venture Capital Company Act › 74-8305 Rules and regulations.

74-8305.
Rules and regulations.
The secretary shall adopt rules and regulations to implement this act on or before October 1, 1986.
History:
L. 1986, ch. 285, § 5; May 22.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 83 - Kansas Venture Capital Company Act › 74-8306 Kansas venture capital companies; certification of, application, requirements, notification; duties of secretary; rules and regulations.

74-8306.
Kansas venture capital companies; certification of, application, requirements, notification; duties of secretary; rules and regulations.
(a) The secretary shall promulgate rules and regulations for making an application for certification of a Kansas venture capital company and shall specify the information that must be submitted at the time of application. No Kansas venture capital company shall be certified until the secretary has adopted rules and regulations as required in K.S.A. 74-8305 and amendments thereto. A company seeking to be certified as a Kansas venture capital company must specify the level of cash investment that the company expects to qualify for the tax credits provided for in this act. The application must show that the applicant's purpose is to encourage and assist in the creation, development and expansion of Kansas businesses and to provide maximum opportunities for the employment of Kansans by making venture capital available to Kansas businesses as described and defined in K.S.A. 74-8303 and amendments thereto.
(b) The secretary shall promulgate rules and regulations defining the equivalent of money for the purposes of cash investments under the provisions of this act.
(c) The department, through the secretary, shall review the articles of incorporation or the articles of partnership of each applicant for certification and the business history of the applicant and determine that the capitalization is at least $1,500,000.
(d) Within 60 days of application, the secretary shall issue the certification and notify the department of revenue of such certification, or shall refuse the certification and issue an order so providing.
History:
L. 1986, ch. 285, § 6; L. 1987, ch. 320, § 3; May 7.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 83 - Kansas Venture Capital Company Act › 74-8309 Same; decertification; effect on tax credits.

74-8309.
Same; decertification; effect on tax credits.
(a) Investors in a Kansas venture capital company are required to remit to the secretary of revenue full payment for all tax credits claimed under the Kansas venture capital company act if (1) at any time the Kansas venture capital company is decertified by the department of commerce for noncompliance with the Kansas venture capital company act or (2) the Kansas venture capital company voluntarily decertifies itself prior to the end of the seventh year following its certification.
(b) Investors in a Kansas venture capital company are entitled to keep all of the tax credits claimed under the Kansas venture capital company act if the Kansas venture capital company is in compliance with the Kansas venture capital company act and voluntarily decertifies itself after the end of the seventh year following its certification.
(c) A Kansas venture capital company may voluntarily decertify itself by sending written notice of decertification to the secretary of commerce.
History:
L. 1986, ch. 285, § 9; L. 1987, ch. 320, § 4; May 7.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 83 - Kansas Venture Capital Company Act › 74-8310 Annual report by secretary; contents.

74-8310. Annual report by secretary; contents.
(a) Pursuant to K.S.A. 74-5049, and amendments thereto, the secretary shall report the following:
(1) The number of Kansas venture capital companies;
(2) the total tax credit generated;
(3) the total investments made in Kansas venture capital companies;
(4) the total investments in Kansas businesses by Kansas venture capital companies;
(5) an estimate of jobs created or preserved under the program; and
(6) an estimate of the multiplier effect on the Kansas economy of the program.
(b) Additionally, in the report the secretary shall evaluate the success of the program in collaboration with the standing committee on commerce of the senate and the standing committee on commerce, labor and economic development of the house of representatives, and may include specific recommendations for legislation.
History:
L. 1986, ch. 285, § 10; L. 1993, ch. 136, § 16; L. 1996, ch. 205, § 11; L. 2012, ch. 65, § 21; L. 2013, ch. 134, § 17; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 83 - Kansas Venture Capital Company Act › 74-8311 State not liable to investors in Kansas venture capital companies.

74-8311.
State not liable to investors in Kansas venture capital companies.
The state of Kansas shall not be held liable for any damages to an investor in a Kansas venture capital company.
History:
L. 1986, ch. 285, § 11; May 22.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 83 - Kansas Venture Capital Company Act › 74-8317 Same; reporting requirements.

74-8317. Same; reporting requirements.
The secretary shall transmit annually to the governor, the standing committee on commerce of the senate and the standing committee on commerce, labor and economic development of the house of representatives:
(a) The annual statement of the fund; and
(b) a report, based upon information received by the fund manager, which specifies the following:
(1) The manner in which the purpose as described in this act has been carried out by the fund.
(2) The total investments made annually by the fund in Kansas businesses.
(3) An estimate of jobs created and jobs preserved by investments by the fund in Kansas businesses.
(4) An estimate of the multiplier effect on the Kansas economy of investments by the fund in Kansas businesses.
(5) An analysis of the targeting of scarce resources by the fund by size, sector and location to enterprises of particular need and opportunity.
History:
L. 1995, ch. 127, § 2; L. 2011, ch. 104, § 33; L. 2012, ch. 65, § 22; L. 2013, ch. 134, § 18; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 83 - Kansas Venture Capital Company Act › 74-8318 Same; conflict of interest provisions.

74-8318. Same; conflict of interest provisions.
No enterprise shall be eligible to receive investment pursuant to this act if the secretary or any employee of the department, or any officer, employee or member of the board of directors of either the fund or any other entity which has a substantial interest in the enterprise. For the purposes of this section, the term "substantial interest" shall have the meaning ascribed to it in K.S.A. 46-229, and amendments thereto.
History:
L. 1995, ch. 127, § 3; L. 2011, ch. 104, § 34; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 83 - Kansas Venture Capital Company Act › 74-8319 Same; definitions.

74-8319. Same; definitions.
For purposes of this act:
(a) "Department" means the department of commerce;
(b) "fund" means any venture-capital fund whether organized as a corporation, partnership, limited partnership, limited liability company or other business entity, as well as any separately organized entity, which manages any such fund;
(c) "fund manager" means any person or persons, approved by the secretary, legally responsible for the investment and management of a fund's assets pursuant to statute or contract; and
(d) "secretary" means the secretary of commerce.
History:
L. 1995, ch. 127, § 4; L. 2011, ch. 104, § 35; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 84 - Local Seed Capital Pools › 74-8402 Same; certification of local seed capital pools; applications, requirements; rules and regulations.

74-8402.
Same; certification of local seed capital pools; applications, requirements; rules and regulations.
(a) The secretary of commerce shall promulgate rules and regulations for making an application for certification of a local seed capital pool and shall specify the information that must be submitted at the time of application. An applicant seeking to be certified as a local seed capital pool must specify the level of capitalization that the company expects to qualify for the tax credits provided for in this act. The application must show that the applicant's purpose is to encourage and assist in the creation of Kansas businesses and to provide maximum opportunities for the employment of Kansans by making seed capital available to Kansas businesses.
(b) The department of commerce, through the secretary, shall review the articles of incorporation or the articles of partnership of each applicant for certification and the business history of the applicant and determine that the capitalization is at least $200,000.
(c) Within 60 days of application, the secretary of commerce shall issue the certification and notify the department of revenue of such certification, or shall refuse the certification and issue an order so providing.
History:
L. 1987, ch. 365, § 2; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 84 - Local Seed Capital Pools › 74-8403 Same; requirements to continue certification; annual review by secretary of commerce; decertification, when.

74-8403.
Same; requirements to continue certification; annual review by secretary of commerce; decertification, when.
(a) Each qualified local seed capital pool shall report to the secretary of commerce on an annual basis such information as the secretary requires to be submitted to maintain certification. As a part of such information, each local seed capital pool shall report the name, address and taxpayer identification number of each taxpayer who has invested in such pool and amounts invested by each such taxpayer.
(b) The secretary of commerce shall provide this information contained in subsection (a) to the department of revenue on an annual basis.
(c) The secretary of commerce shall conduct an annual review of each local seed capital pool certified to determine if the local seed capital pool is in compliance with the requirements of certification, to advise the local seed capital pool as to the certification status of its investments, and to ensure that no investment has been made in violation of the provisions of this act or rules and regulations promulgated by the department. The reasonable costs of the annual review shall be paid by each local seed capital pool according to a reasonable fee schedule adopted by the secretary. Any violation shall be grounds for decertification under this section.
(d) In undertaking the annual review the secretary of commerce shall use reasonable and generally accepted national standards of seed capital investment practice. If the secretary determines that a local seed capital pool is not in substantial compliance with the requirements for continuing in certification, the secretary shall, by written notice, inform the officers of the pool and the board of directors or partners that they will be decertified in 120 days from the date of mailing of the notice unless they correct the deficiencies and are once again in compliance with the requirements for certification.
(e) At the end of the 120-day period, if the local seed capital pool is still not in substantial compliance, the secretary of commerce shall send a notice of decertification to the pool and to the secretary of the department of revenue. Decertification of a local seed capital pool shall cause the forfeiture by the pool of any right or interest to the tax credit under the provisions of this act and shall cause the total amount of tax credit previously claimed by persons under the program to be due and payable.
(f) Following each annual examination, the secretary shall notify the department of revenue of any local seed capital pools that are not in compliance with this section.
History:
L. 1987, ch. 365, § 3; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 84 - Local Seed Capital Pools › 74-8404 Same; voluntary decertification, procedure.

74-8404.
Same; voluntary decertification, procedure.
At any time after the end of the seventh year of certification, a local seed capital pool which is in compliance with this act may voluntarily decertify itself by sending written notice of decertification to the secretary of commerce and, in such case, the investors shall not be liable for repayment to the state of credit amounts claimed under this act. A local seed capital pool which is not in compliance with the provisions of this act may voluntarily decertify itself by sending written notice of decertification to the secretary and by remitting to the secretary of the department of revenue full payment of all tax credits claimed by investors under its participation in the certification program which cost shall be borne by the pool's partners.
History:
L. 1987, ch. 365, § 4; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 84 - Local Seed Capital Pools › 74-8405 Annual report of secretary of commerce; contents.

74-8405. Annual report of secretary of commerce; contents.
(a) Pursuant to K.S.A. 74-5049, and amendments thereto, the secretary of commerce shall report the following:
(1) The number of local seed capital pools;
(2) the total tax credit generated;
(3) the total investments made in Kansas venture capital companies;
(4) the total investments in Kansas businesses by local seed capital pools;
(5) an estimate of jobs created or preserved under the program; and
(6) an estimate of the multiplier effect on the Kansas economy of the program.
(b) Additionally, in the report the secretary shall evaluate the success of the program in collaboration with the standing committee on commerce of the senate and the standing committee on commerce, labor and economic development of the house of representatives, and may include specific recommendations for legislation.
History:
L. 1987, ch. 365, § 5; L. 1993, ch. 136, § 17; L. 1996, ch. 205, § 12; L. 2003, ch. 154, § 77; L. 2012, ch. 65, § 23; L. 2013, ch. 134, § 19; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 84 - Local Seed Capital Pools › 74-8406 Same; state not liable to investors in local seed capital pools.

74-8406.
Same; state not liable to investors in local seed capital pools.
The state of Kansas shall not be held liable for any damages to an investor in a local seed capital pool.
History:
L. 1987, ch. 365, § 6; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 87 - State Lottery › 74-8701 Title of act.

74-8701.
Title of act.
K.S.A. 74-8701 through 74-8721 shall be known as and may be cited as the Kansas lottery act.
History: L. 1987, ch. 292, § 1; March 19.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 87 - State Lottery › 74-8703 Kansas lottery established; executive director and other personnel; cooperation of other agencies; emergency purchases.

74-8703.
Kansas lottery established; executive director and other personnel; cooperation of other agencies; emergency purchases.
(a) There is hereby established an independent state agency to be called the Kansas lottery, the head of which shall be the executive director of the Kansas lottery. Under the supervision of the executive director, the Kansas lottery shall administer the state lottery as provided in this act. The overall management of the state lottery and control over the operation of its games shall rest solely with the Kansas lottery.
(b) The executive director shall be appointed by the governor, subject to confirmation by the senate as provided by K.S.A. 75-4315b, and amendments thereto. Except as provided by K.S.A. 46-2601, and amendments thereto, no person appointed as executive director shall exercise any power, duty or function as executive director until confirmed by the senate. The executive director shall be in the unclassified service and shall receive an annual salary fixed by the governor, subject to the limitations of appropriations therefor.
(c) The executive director shall appoint persons to the following positions to serve as full-time employees of the state in the unclassified service with compensation fixed by the executive director and approved by the governor, subject to the limitations of appropriations therefor:
(1) A deputy executive director;
(2) a director of security;
(3) a director of administration;
(4) a director of sales and such professional sales related positions as may be necessary within the sales division;
(5) a director of marketing and such professional marketing related positions as may be necessary within the marketing division; and
(6) one personal secretary and one special assistant to the executive director.
(d) Until such time as the Kansas lottery begins the operation of its games, temporary staffing, budgeting, purchasing and related management functions shall be provided by the Kansas department of revenue and other state agencies as directed by the governor to achieve maximum coordination in the planning and implementation of the Kansas lottery.
(e) For a period of 18 months after the effective date of this act, the state director of purchases, upon request of the executive director, shall make emergency purchases, other than purchases of major procurements, on behalf of the Kansas lottery pursuant to subsection (a)(5) of K.S.A. 75-3739, and amendments thereto, when the timely implementation of the Kansas lottery requires the immediate delivery of supplies, materials or equipment or the immediate performance of services. The award of any contract for any such purchase shall be subject to the approval of the executive director.
History:
L. 1987, ch. 292, § 3; L. 1989, ch. 245, § 1; L. 2008, ch. 121, § 14; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 87 - State Lottery › 74-8706 Executive director, duties.

74-8706.
Executive director, duties.
The executive director shall have the duty to:
(a) Make and keep books and records which accurately and fairly reflect each day's transactions, including but not limited to: The distribution of tickets and shares to lottery retailers; receipt of funds, prize claims, prize disbursements made by the Kansas lottery or otherwise or prizes liable to be paid by the Kansas lottery; expenses and other financial transactions of the Kansas lottery necessary so as to permit daily accountability.
(b) Make quarterly and annual financial reports to the commission, the governor, the state treasurer and the legislature. Such reports shall be based upon generally accepted accounting principles and include a full and complete statement of lottery revenues, prize disbursements, expenses, net revenues and other financial transactions for the reporting period.
(c) Make available for inspection by the commission, upon request, all books, records, files and other information and documents of the Kansas lottery.
(d) Engage, in accordance with K.S.A. 74-8705, and amendments thereto, an independent firm experienced in marketing research and analysis to conduct periodically an evaluation to determine the effectiveness of marketing, promotion and public information programs used by the Kansas lottery and make recommendations which will enhance such programs.
(e) Prepare and submit budgets and proposals for the operation of the Kansas lottery.
(f) Operate the Kansas lottery in such a manner that, after the initial state appropriation, it is self-sustaining and self-funded.
(g) Make available at the point of sale of any lottery tickets or shares a list of the odds of winning such game, based upon the number of tickets or shares projected to be sold.
(h) Make provision for the timely and efficient transfer of funds due from lottery retailers to the lottery operating fund, including the use of electronic funds transfers whenever possible.
History:
L. 1987, ch. 292, § 6; L. 1988, ch. 314, § 2; L. 2001, ch. 24, § 2; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 87 - State Lottery › 74-8712 Lottery prize payment fund.

74-8712.
Lottery prize payment fund.
(a) There is hereby established in the state treasury the lottery prize payment fund.
(b) The executive director shall certify periodically to the director of accounts and reports such amounts as the executive director determines necessary to pay prizes to the holders of valid winning lottery tickets or shares or for the purchase of nonmonetary prizes. Upon receipt of such certification, the director of accounts and reports shall transfer the amount certified from the lottery operating fund to the lottery prize payment fund. Moneys credited to the fund shall be expended only for:
(1) The payment of prizes to the holders of valid winning lottery tickets or shares;
(2) the reimbursement of retailers who have paid holders of winning tickets or shares;
(3) the purchase of nonmonetary prizes; or
(4) purposes otherwise specifically authorized by law.
(c) Prior to making any expenditure for reimbursement of a retailer or payment of a prize of $50 or more, the executive director shall cause all proposed prize payments to be matched against the state debtor files maintained by the director of accounts and reports and shall certify and pay or deliver any matched prize or the cash amount thereof to the director of accounts and reports for setoff as prescribed under K.S.A. 75-6201 et seq., and amendments thereto.
(d) Expenditures from the lottery prize payment fund shall be made in accordance with appropriations acts upon warrants of the director of accounts and reports, or a person designated by the director of accounts and reports pursuant to K.S.A. 75-3732, and amendments thereto, issued pursuant to vouchers approved by the executive director, or a person designated by the executive director.
History:
L. 1987, ch. 292, § 12; L. 1988, ch. 314, § 5; L. 2000, ch. 173, § 19; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 87 - State Lottery › 74-8713 Loans to lottery from state general fund.

74-8713.
Loans to lottery from state general fund.
(a) Any appropriation or transfer of state general fund moneys for the operation of the Kansas lottery and other expenses incurred in connection with the conduct of lotteries pursuant to this act shall be considered a loan and shall be repaid with interest to the state general fund in one payment not later than 24 months from the effective date of the appropriation or transfer of such general fund moneys. Such loan shall not be considered an indebtedness or debt of the state within the meaning of section 6 of article 11 of the constitution of the state of Kansas. Such loan shall bear interest at a rate equal to the rate prescribed by K.S.A. 75-4210 and amendments thereto for inactive accounts of the state effective on the first day of the month during which the appropriation or transfer takes effect.
(b) At the time of repayment of a loan pursuant to subsection (a), the executive director shall certify to the director of accounts and reports the amount to be repaid and any interest due thereon. Upon receipt of such certification, the director of accounts and reports shall promptly transfer the amount certified from the lottery operating fund to the state general fund.
(c) Except as provided by subsection (a), moneys credited to the state general fund shall not be used or obligated to pay the expenses of the Kansas lottery or prizes of the lottery and no claim for the payment of an expense of the lottery or the payment of a lottery prize shall be made against any moneys other than moneys credited to the lottery operation fund, moneys credited to the lottery prize payment fund or moneys collected from the sale of lottery tickets or shares.
History: L. 1987, ch. 292, § 13; March 19.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 87 - State Lottery › 74-8714 Law enforcement powers, certain employees.

74-8714.
Law enforcement powers, certain employees.
(a) Employees of the Kansas lottery designated by the executive director are hereby vested with the power and authority of law enforcement officers in the execution of the duties imposed upon the executive director by this act and in enforcing the provisions of this act.
(b) Employees designated by the executive director pursuant to subsection (a) shall have the authority to:
(1) Make arrests, conduct searches and seizures and carry firearms while investigating violations of this act and during routine conduct of their duties as determined by the executive director or designee of the executive director;
(2) make arrests, conduct searches and seizures and generally to enforce all the criminal laws of the state as violations of those laws are encountered by such employees during the routine performance of their duties; and
(3) issue notices to appear pursuant to K.S.A. 22-2408 and amendments thereto.
(c) No employee of the Kansas lottery shall be certified to carry firearms under the provisions of this section without having first successfully completed the firearm training course or courses prescribed for law enforcement officers under subsection (a) of K.S.A. 74-5604a and amendments thereto.
(d) The commission may adopt rules and regulations prescribing other training required for such employees.
History: L. 1987, ch. 292, § 14; March 19.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 87 - State Lottery › 74-8715 Assistant attorney general.

74-8715.
Assistant attorney general.
The attorney general shall appoint, with the approval of the executive director, an assistant attorney general who shall be assigned exclusively to assist the Kansas lottery in the enforcement of the criminal and civil provisions of this act. Such attorney shall receive an annual salary fixed by the attorney general with the approval of the executive director. Such salary shall be paid by the Kansas lottery.
History: L. 1987, ch. 292, § 15; March 19.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 87 - State Lottery › 74-8717 Forgery of lottery ticket; penalty.

74-8717.
Forgery of lottery ticket; penalty.
(a) It is unlawful to falsely make, alter, forge, pass or counterfeit, with intent to defraud, a lottery ticket or share, or receipt for the purchase thereof, issued or purported to have been issued by the Kansas lottery under this act.
(b) Violation of this section is a severity level 8, nonperson felony.
History:
L. 1987, ch. 292, § 17; L. 1993, ch. 291, § 242; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 87 - State Lottery › 74-8718 Unlawful sale of lottery ticket; penalty.

74-8718. Unlawful sale of lottery ticket; penalty.
(a) It is unlawful:
(1) To sell a lottery ticket or share at a price other than that fixed by rules and regulations adopted pursuant to this act;
(2) for any person other than the Kansas lottery or a lottery retailer authorized by the Kansas lottery to sell or resell any lottery ticket or share;
(3) to sell a lottery ticket or share to any person, knowing such person to be under 18 years of age; or
(4) to sell a lottery ticket at retail by electronic mail, the internet or telephone.
(b) (1) Violation of this section is a class A nonperson misdemeanor upon conviction for a first offense; and
(2) violation of this section is a severity level 9, nonperson felony upon conviction for a second or subsequent offense.
History:
L. 1987, ch. 292, § 18; L. 1993, ch. 291, § 243; L. 1994, ch. 291, § 80; L. 2001, ch. 24, § 7; L. 2015, ch. 62, § 22; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 87 - State Lottery › 74-8719 Unlawful purchase of lottery ticket; penalty.

74-8719. Unlawful purchase of lottery ticket; penalty.
(a) It is unlawful for any person to purchase a lottery ticket or share, or to share in the lottery winnings of a person, knowing that such person is:
(1) The executive director, a member of the commission or an employee of the Kansas lottery;
(2) an officer or employee of a vendor contracting with the Kansas lottery to supply gaming equipment or tickets to the Kansas lottery for use in the operation of any lottery conducted pursuant to this act;
(3) a spouse, child, stepchild, brother, stepbrother, sister, stepsister, parent or stepparent of a person described by subsection (a)(1) or (2); or
(4) a person who resides in the same household as any person described by subsection (a)(1) or (2).
(b) (1) Violation of subsection (a) is a class A nonperson misdemeanor upon conviction for a first offense.
(2) Violation of subsection (a) is a severity level 9, nonperson felony upon conviction for a second or subsequent offense.
(c) Notwithstanding subsection (a), the executive director may authorize in writing any employee of the Kansas lottery and any employee of a lottery vendor to purchase a lottery ticket for the purposes of verifying the proper operation of the state lottery with respect to security, systems operation and lottery retailer contract compliance. Any prize awarded as a result of such ticket purchase shall become the property of the Kansas lottery and be added to the prize pools of subsequent lottery games.
(d) Certain classes of persons who, because of the unique nature of the supplies or services they provide for use directly in the operation of a lottery pursuant to this act, may be prohibited, in accordance with rules and regulations adopted by the commission, from participating in any lottery in which such supplies or services are used.
(e) Nothing in this section shall prohibit lottery retailers or their employees from purchasing lottery tickets and shares or from being paid a prize of a winning ticket or share.
(f) Each person who purchases a lottery ticket or share thereby agrees to be bound by rules and regulations adopted by the commission and by the provisions of this act.
(g) Any lottery ticket or share purchased by a person under 18 years of age shall be null and void and may not be claimed for a prize.
History:
L. 1987, ch. 292, § 19; L. 1988, ch. 314, § 6; L. 1993, ch. 291, § 244; L. 1994, ch. 291, § 81; L. 2018, ch. 96, § 3; May 24.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 87 - State Lottery › 74-8720 Prizes.

74-8720. Prizes.
(a) As nearly as practical, an amount equal to not less than 45% of the total sales of lottery tickets or shares, computed on an annual basis, shall be allocated for payment of lottery prizes.
(b) The prize to be paid or awarded for each winning ticket or share shall be paid to one natural person who is adjudged by the executive director, the director's designee or the retailer paying the prize, to be the holder of such winning ticket or share, or the person designated in writing by the holder of the winning ticket or share on a form satisfactory to the executive director, except that the prize of a deceased winner shall be paid to the duly appointed representative of the estate of such winner or to such other person or persons appearing to be legally entitled thereto.
(c) The executive director shall award the designated prize to the holder of the ticket or share upon the validation of a claim or confirmation of a winning share. The executive director shall have the authority to make payment for prizes by any means deemed appropriate upon the validation of winning tickets or shares.
(d) The right of a person to a prize drawn or awarded is not assignable.
(e) No person under 18 years of age shall be eligible to claim a lottery prize.
(f) All prizes awarded shall be taxed as Kansas source income and shall be subject to all state and federal income tax laws and rules and regulations. State income taxes shall be withheld from prizes paid whenever federal income taxes are required to be withheld under current federal law.
(g) Unclaimed prize money not payable directly by lottery retailers shall be retained for the period established by rules and regulations and if no claim is made within such period, then such unclaimed prize money shall be added to the prize pools of subsequent lottery games.
(h) The state of Kansas, members of the commission and employees of the Kansas lottery shall be discharged of all further liability upon payment of a prize pursuant to this section.
(i) The Kansas lottery shall not publicly disclose the identity of any person awarded a prize except upon written authorization of such person.
History:
L. 1987, ch. 292, § 20; L. 1988, ch. 381, § 15; L. 1991, ch. 246, § 2; L. 2015, ch. 62, § 23; July 1.
2023 Kansas Statutes › Chapter 74 - State Boards, Commissions And Authorities › Article 87 - State Lottery › 74-8721 Ticket sales exempt from sales tax.

74-8721.
Ticket sales exempt from sales tax.
All sales of lottery tickets and shares shall be exempt from retailers' sales taxes imposed pursuant to K.S.A. 12-187 et seq., and amendments thereto, and from the tax imposed by the Kansas retailers' sales tax act.
History: L. 1987, ch. 292, § 21; March 19.