Second Regular Session Sixty-seventh General Assembly STATE OF COLORADO INTRODUCED LLS NO. R10-1114.01 Sharon Eubanks SCR10-004 SENATE SPONSORSHIP Romer and Tapia, HOUSE SPONSORSHIP May and McFadyen, Senate Committees House Committees State, Veterans & Military Affairs SENATE CONCURRENT RESOLUTION 10-004 Submitting to the registered electors of the state of Colorado an amendment to articles XVIII and XXVII of the constitution of the state of Colorado, concerning games involving an element of chance, and, in connection therewith, requiring the state lottery commission to establish a monitor lottery game, specifying that the net lottery revenues generated by the monitor lottery game be used to provide postsecondary education financial assistance, and setting the rate of the limited gaming tax paid by all licensees at _________ percent of adjusted gross proceeds from limited gaming. Resolution Summary (Note: This summary applies to this resolution as introduced and does not reflect any amendments that may be subsequently adopted. If this resolution passes third reading in the house of introduction, a resolution summary that applies to the reengrossed version of this resolution will be available at http://www.leg.state.co.us/billsummaries.) As part of the state-supervised lottery, the state lottery commission is required, no later than March 1, 2011, to approve, establish, and supervise a monitor lottery game. The net lottery proceeds generated by the monitor lottery game shall be credited to the Colorado scholars cash fund, which is created in the state treasury, to be used to provide postsecondary education financial assistance as set forth in law. The authority of the limited gaming commission to set the percentage of adjusted gross proceeds from limited gaming paid by limited gaming licensees up to a maximum percentage is abolished, and the percentage of adjusted gross proceeds from limited gaming to be paid by limited gaming licensees is set at a specified percentage. Be It Resolved by the Senate of the Sixty-seventh General Assembly of the State of Colorado, the House of Representatives concurring herein: SECTION 1. At the next election at which such question may be submitted, there shall be submitted to the registered electors of the state of Colorado, for their approval or rejection, the following amendment to the constitution of the state of Colorado, to wit: Section 2 (7) of article XVIII of the constitution of the state of Colorado is amended to read: Section 2. Lotteries prohibited - exceptions. (7) (a) (I) Any provision of this constitution to the contrary notwithstanding, the general assembly may establish a state-supervised lottery. In addition to any other lottery games established in accordance with state law, no later than March 1, 2011, the Colorado lottery commission shall approve, establish, and supervise a monitor lottery game. (II) For purposes of this subsection (7): (A) "Colorado lottery commission" means the Colorado lottery commission or any successor agency designated by state law to operate a state-supervised lottery. (B) "Monitor lottery game" means a lottery game in which twenty numbers are drawn from a field of eighty numbers by a central computer system using an approved random number generator, a rabbit ear, or a wheel system device employing eighty numbered balls and in which the player matching the number of balls required for a particular spot game is awarded a prize as indicated on the approved rate card. (b) (I) Unless otherwise provided by statute, Except as otherwise provided in subparagraph (II) of this paragraph (b), all proceeds from the lottery after deduction of prizes and expenses, shall be allocated in accordance with section 3 of article XXVII of this constitution, including to the conservation trust fund of the state for distribution to municipalities and counties for park, recreation, and open space purposes. (II) All proceeds from the operation of the monitor lottery game, after deduction of prizes and expenses of the state lottery division, or any successor agency, related to the operation and supervision of the monitor lottery game, shall be credited by the state treasurer at least quarterly to the Colorado scholars cash fund, which is hereby created in the state treasury, and shall be used exclusively to provide postsecondary education financial assistance as set forth in state law. Section 9 (5) (a) of article XVIII of the constitution of the state of Colorado is amended to read: Section 9. Limited gaming permitted. (5) (a) Up to a maximum of forty _______ percent of the adjusted gross proceeds of limited gaming shall be paid by each licensee, in addition to any applicable license fees, for the privilege of conducting limited gaming. Subject to subsection (7) of this section, such percentage shall be established annually by the commission according to the criteria established by the general assembly in the implementing legislation to be enacted pursuant to paragraph (c) of this subsection (5). Such payments shall be made into a limited gaming fund that is hereby created in the state treasury. The introductory portion to section 3 (1) of article XXVII of the constitution of the state of Colorado is amended to read: Section 3. Moneys allocated to Trust Fund. (1) Beginning with the proceeds from the fourth quarter of the State's Fiscal Year 1992-1993, all proceeds from all programs, including Lotto and every other state-supervised lottery game operated under the authority of Article XVIII, Section 2 of the Colorado Constitution except the monitor lottery game, whether by the Colorado Lottery Commission or otherwise (such programs defined hereafter in this Article as "Lottery Programs"), net of prizes and expenses of the state lottery division and after a sufficient amount of money has been reserved, as of the end of any fiscal quarter, to ensure the operation of the lottery for the ensuing fiscal quarter (such netted proceeds defined hereafter in this Article as "Net Proceeds") are set aside, allocated, allotted, and continuously appropriated as follows, and the Treasurer shall distribute such proceeds no less frequently than quarterly, as follows: SECTION 2. Each elector voting at said election and desirous of voting for or against said amendment shall cast a vote as provided by law either "Yes" or "No" on the proposition: "Shall state of Colorado taxes be increased $______________ annually by amending articles XVIII and XXVII of the constitution of the state of Colorado in regard to games involving an element of chance, and, in connection therewith, setting the tax rate imposed on gross limited gaming revenues at _______ percent, requiring the establishment of a monitor lottery game as part of the state-supervised lottery, and dedicating the revenues from the operation of the monitor lottery game, after prizes and expenses, to provide postsecondary education financial assistance?" SECTION 3. The votes cast for the adoption or rejection of said amendment shall be canvassed and the result determined in the manner provided by law for the canvassing of votes for representatives in Congress, and if a majority of the electors voting on the question shall have voted "Yes", the said amendment shall become a part of the state constitution.