Approved: May 01, 2018

MINUTES OF THE SENATE FEDERAL AND STATE AFFAIRS COMMITTEE

The meeting was called to order by Chairperson Bud Estes at 8:00 am on Tuesday, April 03, 2018, in room 142-S of the Capitol.

All members were present except: Senator Richard Hilderbrand – Excused

Committee staff present: Debbie Welton, Legislative Committee Assistant Heather O'Hara, Legislative Research Department Katelin Neikirk, Legislative Research Department Matt Sterling, Office of Revisor of Statutes

Conferees appearing before the Committee: Representative John Barker, District 70 Representative Larry Hibbard, District 13 Mike O'Neal, Mike O'Neal Consulting GKRA Counsel Ernie Rodina, Better Horses Radio Justine Staten, Executive Director Kansas Horse Counsel Whitney Domron, Kansas Entertainment, LLC Kevin Flowler, Star Casino, Attorney Midge Grinstead, Humane Society of the United States , Humane Society Legislative Fund of Kansas Kimberly Pugliese, Beauties and Beasts, Inc.

Others in attendance: See Attached List

Bill introductions Chair Bud Estes opened the hearing.

No bill introductions

Hearing on: SB427 — Amending the Kansas expanded lottery act regarding racetrack gaming facilities. Matt Sterling gave an overview on SB427, Amending the Kansas expanded lottery act regarding racetrack gaming facilities. (Attachment 1)

Questions and discussion by Senators and Oletha Faust-Goudeau.

Proponents

Unless specifically noted, the individual remarks recorded herein have not been transcribed verbatim. Individual remarks as reported herein have not been submitted to the individuals appearing before the committee for editing or corrections. Page 1 CONTINUATION SHEET MINUTES of the Committee on Federal and State Affairs at 8:00 am on Tuesday, April 03, 2018, in room 142-S of the Capitol.

Oral

John Barker, Representative, District 70, (Attachment 2)

Questions and discussion by Senator Oletha Faust-Goudeau.

Larry Hibbard, Representative District 13, (Attachment 3)

Mike O'Neal, Mike O'Neal Consulting GKRA Counsel, (Attachment 4)

Questions and discussion by Senators Bud Estes, , Jeff Longbine, Rob Olson, , Oletha Faust-Goudeau

Ernie Rodina, Better Horses Radio, (Attachment 5)

Justine Staten, Executive Director Kansas Horse Council, (Attachment 6)

Questions and discussion by Senator Oletha Faust-Goudeau,

Proponents

Written

David Tolle, Self, (Attachment 7)

Travis Bartley, Kansas Greyhound Association, (Attachment 8)

Scott Cooper, Consultant for the Greater Kansas Racing Alliance, (Attachment 9)

Dr. Duane Droge DVM, Self, (Attachment 10)

Jim Gartland, National Greyhound Association, (Attachment 11)

Stacy Randle, Eureka Downs Training Center, (Attachment 12)

Bob Schreiber, Self, (Attachment 13)

Neutral

Written

Unless specifically noted, the individual remarks recorded herein have not been transcribed verbatim. Individual remarks as reported herein have not been submitted to the individuals appearing before the committee for editing or corrections. Page 2 CONTINUATION SHEET MINUTES of the Committee on Federal and State Affairs at 8:00 am on Tuesday, April 03, 2018, in room 142-S of the Capitol.

Derek Schmidt, Kansas Attorney General, (Attachment 14)

Opponents

Oral

Whitney Damron, Kansas Entertainment, LLC, (Attachment 15)

Questions and discussion by Senators Rob Olson, Oletha Faut-Goudeau, Bud Estes.

Midge Grinstead, Humane Society of the United States, (Attachment 16)

Questions and discussion by Senator Oletha Faust-Goudeau.

Kelly Kultala, Humane Society Legislative Fund of Kansas, (Attachment 17)

Questions and discussion by Senator Oletha Faust-Goudeau, Rob Olson.

Kimberly Pugliese, Beauties and Beasts, Inc, (Attachment 18)

Questions and discussion by Senator Bud Estes, Oletha Faust-Goudeau.

Kevin Fowler, Star Casino Attorney, (Attachment 19)

Written

Tamara Bauman, Self, (Attachment 20)

Maureen Bernhagen, Self, (Attachment 21)

Shelly Bonnell, Self, (Attachment 22)

Mary Kay Caldwell, Southeast Kansas Humane Society, (Attachment 23)

Randi Carter, All Dogs Bark N Play, (Attachment 24)

Sherry L. Chavez, Self, (Attachment 25)

Michael D. Chavez, Jr., Self, (Attachment 26)

Unless specifically noted, the individual remarks recorded herein have not been transcribed verbatim. Individual remarks as reported herein have not been submitted to the individuals appearing before the committee for editing or corrections. Page 3 CONTINUATION SHEET MINUTES of the Committee on Federal and State Affairs at 8:00 am on Tuesday, April 03, 2018, in room 142-S of the Capitol.

Sarah Coffman, Wichita Animal Action, (Attachment 27)

Wendy Coley, Self, (Attachment 28)

Patricia Freeman, Self, (Attachment 29)

Amy Heggestad, Founder and Board Member, Beauties and Beasts, Inc., (Attachment 30)

Susan Kaunfmann, Self, (Attachment 31)

Carla Lewis, Board President, Kansas Animal Control Association, (Attachment 32)

Carly McLaughlin, Self, (Attachment 33)

Alitia McMullen, Board Member, Beauties, and Beasts, Inc., (Attachment 34)

Betty Nelson, Director and Board Member, Jackson County Human Society, (Attachment 35)

Carlene Osborn, KCREGAP, (Attachment 36)

Lauren Peterson, Self, (Attachment 37)

Arlene Piatkowski, Foster and Volunteer, Kansas K9 Rescue, (Attachment 38)

Libby Ross, Volunteer HSUS, (Attachment 39)

Jennifer Sanders, Self, (Attachment 40)

Jessica Sherwood, K-9 Karma, (Attachment 41)

Linda Steward, Wellington Humane Society, (Attachment 42)

Eric Stafford, Kansas Chamber, (Attachment 43)

Crystal Swan-Blackdeer, Leavenworth County Humane Society, (Attachment 44)

Martha Wells-Smith, Volunteer Shirley Yeager Animal Friends Foundation SEK, (Attachment 45)

City of Dodge City, (Attachment 46)

Unless specifically noted, the individual remarks recorded herein have not been transcribed verbatim. Individual remarks as reported herein have not been submitted to the individuals appearing before the committee for editing or corrections. Page 4 CONTINUATION SHEET MINUTES of the Committee on Federal and State Affairs at 8:00 am on Tuesday, April 03, 2018, in room 142-S of the Capitol.

City of Mulvane, (Attachment 47)

Sumner County Commission, (Attachment 48)

Sumner County Economic Development, (Attachment 49)

Chair Bud Estes recessed the hearing until 4pm.

Hearing continuation on: SB427 — Amending the Kansas expanded lottery act regarding racetrack gaming facilities. Chair Estes reopened the hearing on SB427 at 4pm.

Kevin Fowler, Attorney at Law, Frieden, Unrein, Forbes LLP, was able to finish his presentation at this time.

No question or comments were made.

Chair Bud Estes close the hearing on SB427 at 4:12pm

Final action on: SB427 — Amending the Kansas expanded lottery act regarding racetrack gaming facilities. Chair Bud Estes opened final action on SB427.

Senator Jeff Longbine has an amendment on SB427, the amendment is about the concern of possible breach of contract with current casino operators, dispute of how much the penalty will be and when the interest starts and when it doesn't. Require the operator of the racetrack gaming management facility to put a line of credit up into the amount of the judgement plus interest deemed by the judgment, and strip the repayment back to the racing operator. State shares at 40% asked for it go down to 22%. The provision that is being struck down the 22% to 11% until the facility manager is repaid. This holds the state in a sound position if there is breach of contract. Seconded by Senator Ty Masterson (Attachment 50)

Question and discussion by Senators Olathe Faust-Goudeau, Jeff Lonebine, Rob Olson, Ty Masterson.

Senator Jeff Longbine moved to amend, amendment fails on voice vote.

Senator Jeff Longbine has an amendment on SB427, live racing dates, days shortened, simulcast racing, strike Section 9b on live racing. (Attachment 51)

Questions and discussion by Senators Rob Olson, Jeff Longbine, Oletha Faust-Goudeau, Ty Masterson.

Unless specifically noted, the individual remarks recorded herein have not been transcribed verbatim. Individual remarks as reported herein have not been submitted to the individuals appearing before the committee for editing or corrections. Page 5 CONTINUATION SHEET MINUTES of the Committee on Federal and State Affairs at 8:00 am on Tuesday, April 03, 2018, in room 142-S of the Capitol.

Senator Jeff Longbine move to amend, seconded by Senator Ty Masterson, passed by a voice vote.

Senator Oletha Faust-Goudeau asked Whitney Damron about an agreement to getting together with the proponents and the opponents to find common ground.

Whitney Damorn said that a meeting was set in August or September for Mr. Ruffen, the meeting was canceled by Mr. Ruffin the summer of 2018. No meeting was held.

Senator Ty Masterson made a motion to table till January 15, 2019, which is non-debatable.

The motion fails.

Senator Rob Olson made a motion pass out SB427 for favorable passage, seconded by Oletha Faust- Goudeau.

The motion passes.

Senators Ty Masterson and Jeff Longbine asked to be recorded as no votes.

The meeting was adjourned at 4:28 pm.

Unless specifically noted, the individual remarks recorded herein have not been transcribed verbatim. Individual remarks as reported herein have not been submitted to the individuals appearing before the committee for editing or corrections. Page 6