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Session of 2026
SENATE BILL No. 508
By Committee on Federal and State Affairs
2-12
AN ACT concerning federal and state affairs; relating to the lottery
operating fund; increasing transfers from such fund to the community
crisis stabilization centers fund and the clubhouse model program fund
of the Kansas department for aging and disability services; amending
K.S.A. 2025 Supp. 74-8711 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
Section 1. K.S.A. 2025 Supp. 74-8711 is hereby amended to read as
follows: 74-8711. (a) There is hereby established in the state treasury the
lottery operating fund.
(b) Except as provided by K.S.A. 74-8724 and the Kansas expanded
lottery act, and amendments thereto, the executive director shall remit all
moneys collected from the sale of lottery tickets and shares and any other
moneys received by or on behalf of the Kansas lottery to the state treasurer
in accordance with the provisions of K.S.A. 75-4215, and amendments
thereto. Upon receipt of each such remittance, the state treasurer shall
deposit the entire amount in the state treasury to the credit of the lottery
operating fund. Moneys credited to the fund shall be expended or
transferred only as provided by this act. Expenditures from such fund shall
be made in accordance with appropriations acts upon warrants of the
director of accounts and reports issued pursuant to vouchers approved by
the executive director or by a person designated by the executive director.
(c) Moneys in the lottery operating fund shall be used for:
(1) The payment of expenses of the lottery, which shall include all
costs incurred in the operation and administration of the Kansas lottery; all
costs resulting from contracts entered into for the purchase or lease of
goods and services needed for operation of the lottery, including , but not
limited to , supplies, materials, tickets, independent studies and surveys,
data transmission, advertising, printing, promotion, incentives, public
relations, communications and distribution of tickets and shares; and
reimbursement of costs of facilities and services provided by other state
agencies;
(2) the payment of compensation to lottery retailers;
(3) transfers of moneys to the lottery prize payment fund pursuant to
K.S.A. 74-8712, and amendments thereto;
(4) transfers to the state general fund pursuant to K.S.A. 74-8713, and
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amendments thereto;
(5) transfers to the community crisis stabilization centers fund and
clubhouse model program fund of the Kansas department for aging and
disability services pursuant to subsection (e);
(6) transfers to the state gaming revenues fund pursuant to subsection
(d) and as otherwise provided by law;
(7) transfers to the white collar crime fund of the governor pursuant
to subsection (f);
(8) transfers to the problem gambling and addictions grant fund of the
department for aging and disability services pursuant to subsection (g);
(9) transfers to the attracting professional sports to Kansas fund of the
department of commerce pursuant to subsection (h); and
(10) transfers to the county reappraisal fund as prescribed by law.
(d) The director of accounts and reports shall transfer moneys in the
lottery operating fund to the state gaming revenues fund created by K.S.A.
79-4801, and amendments thereto, on or before the 15 th day of each month
in an amount certified monthly by the executive director and determined as
follows, whichever is greater:
(1) An amount equal to the moneys in the lottery operating fund in
excess of those needed for the purposes described in subsections (c)(1)
through (c)(6); or
(2) except for pull-tab lottery tickets and shares, an amount equal to
not less than 30% of total monthly revenues from the sales of lottery
tickets and shares less estimated returned tickets. In the case of pull-tab
lottery tickets and shares, an amount equal to not less than 20% of the total
monthly revenues from the sales of pull-tab lottery tickets and shares less
estimated returned tickets.
(e) (1) Subject to the limitations set forth in paragraph (2) and the
provisions of paragraph (3), on or before the 10 th day of each month, the
director of the lottery shall certify to the director of accounts and reports
all net profits from the sale of lottery tickets and shares via lottery ticket
vending machines. Of such certified amount, the director of accounts and
reports shall transfer 75% from the lottery operating fund to the
community crisis stabilization centers fund of the Kansas department for
aging and disability services and 25% from the lottery operating fund to
the clubhouse model program fund of the Kansas department for aging and
disability services.
(2) Moneys transferred pursuant to paragraph (1) shall not exceed in
the aggregate $10,000,000 in fiscal year 2025, and shall not exceed in the
aggregate $8,000,000 $16,000,000 in fiscal year 2027 and each fiscal year
thereafter.
(3) During fiscal year 2026, on or before the 15 th day of each month,
the director of accounts and reports shall transfer $625,000 from the
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lottery operating fund to the community crisis stabilization centers fund of
the Kansas department for aging and disability services and $208,333 from
the lottery operating fund to the clubhouse model program fund of the
Kansas department for aging and disability services.
(f) On July 1, 2023, and each July 1 thereafter, or as soon thereafter
as moneys are available, the first $750,000 credited to the lottery operating
fund from sports wagering revenues deposited in the lottery operating fund
shall be transferred by the director of accounts and reports from the lottery
operating fund to the white collar crime fund established in K.S.A. 2025
Supp. 74-8792, and amendments thereto.
(g) On July 1, 2023, and each July 1 thereafter, or as soon thereafter
as moneys are available, after the transfer required under subsection (f) has
been made, 2% of the remaining moneys credited to the lottery operating
fund from sports wagering revenues deposited in the lottery operating fund
shall be transferred by the director of accounts and reports from the lottery
operating fund to the problem gambling and addictions grant fund
established in K.S.A. 79-4805, and amendments thereto.
(h) On July 1, 2023, and each July 1 thereafter, or as soon thereafter
as moneys are available, after the transfer required under subsection (f) has
been made, 80% of the remaining moneys credited to the lottery operating
fund from sports wagering revenues deposited in the lottery operating fund
shall be transferred by the director of accounts and reports from the lottery
operating fund to the attracting professional sports to Kansas fund
established in K.S.A. 2025 Supp. 74-8793, and amendments thereto.
Sec. 2. K.S.A. 2025 Supp. 74-8711 is hereby repealed.
Sec. 3. This act shall take effect and be in force from and after its
publication in the statute book.
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