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.

Notes

Kan. Admin. Regs. § 112-4-1a

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