SESSION OF 2024
SUPPLEMENTAL NOTE ON SENATE SUBSTITUTE FOR
HOUSE BILL NO. 2422
As Recommended by Senate Committee on
Federal and State Affairs

Brief*
Senate Sub. for HB 2422 would provide an exemption
for certain rules and regulations established by the Kansas
Racing and Gaming Commission (KRGC) and would require
changes to such rules and regulations or changes in their
interpretation to be approved by the Legislature.

Exemptions from Certification Requirements
Current law provides for KRGC to establish rules and
regulations for certifying certain persons, including electronic
gaming machine manufacturers, technology providers, and
computer system providers, who propose to contract with a
lottery gaming facility manager, a racetrack gaming facility
manager, or the state for the provision of goods or services
related to a lottery gaming facility or racetrack gaming facility,
including management services. The certification is required
to include compliance with security, fitness, and background
investigations and standards of officers, directors, key gaming
employees, and persons directly or indirectly owning 5
percent or more interest in the entities being certified.
The bill would exempt from these certification
requirements any person who:
● Manufactures or otherwise supplies goods or
services to a person who is required to be certified;
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
 ● Does not propose to contract with a lottery gaming
facility manager, racetrack gaming facility manager,
or the state for goods or services; and
● Does not perform any work or provide any services
on the premises of a lottery gaming facility or
racetrack gaming facility.
Legislative Approval
The bill would require changes to or changes in
interpretation of rules and regulations established by KRGC
to be approved by the Legislature.

Background
The Senate Committee on Federal and State Affairs
removed the contents of HB 2422, inserted the amended
contents of SB 535, and recommended a substitute bill.
[Note: As passed by the House, HB 2422 would have
modified the Boiler Safety Act to remove statutory
qualifications of the chief inspector of boiler safety and deputy
inspectors.]

SB 535 (Gaming Certification Requirements)
The bill was introduced by the Senate Committee on
Federal and State Affairs at the request of Senator
Thompson.
Senate Committee on Federal and State Affairs
In the Senate Committee hearing, proponent testimony
was provided by an attorney from Kriegshauser Ney Law
Group and a representative of Hydeman Company.
Proponents stated equipment produced by the Hydeman

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Company, including currency counters and sorters and cash
recyclers, have been used in Kansas casinos for the past 12
years, but that KRGC decided last fall to discontinue the
authorization to sell some of their products to the casinos.
Conferees stated the Hydeman Company was directed to
have manufacturers apply for and receive Certified Vendor
status from KRGC, but they do not believe this is the correct
application of the rules and regulations.
Opponent testimony was provided by a representative
of KRGC, who stated the bill could create a loophole for
manufacturers of products used on the gaming floor or that
interface with casino or Lottery systems by obtaining the
services of a licensed vendor or intermediary to sell their
product to the gaming facilities.
No other testimony was provided.
The Senate Committee amended the bill to require
legislative approval for changes to or changes in
interpretation of rules and regulations established by the
KRGC.

Fiscal Information
According to the fiscal note prepared by the Division of
the Budget on SB 535, as introduced, the KRGC indicates the
bill could impact some vendors that the KRGC licenses. The
bill could remove background checks and licensing
requirements if certain manufacturers use third-party vendors
to sell or service equipment. However, the KRGC is unable to
locate any data or determine a methodology to estimate what
that fiscal effect would be under the provision of the bill. The
Kansas Lottery indicates the bill would have no fiscal effect
on its operations.
Gaming; certification; gaming suppliers; Kansas Racing and Gaming Commission;
casinos


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Statutes affected:
As introduced: 44-918
Version 2: 74-8751, 74-8772