First Regular Session
Sixty-first General Assembly
LLS NO. 970687.01D DHG
SENATE BILL 97214
STATE OF COLORADO
BY SENATORS Johnson and Bishop;
also REPRESENTATIVE Kaufman.
BUSINESS AFFAIRS & LABOR
A BILL FOR AN ACT
CONCERNING THE REGULATION OF GAMES OF CHANCE BY THE
SECRETARY OF STATE.
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments which may be subsequently
Gives the secretary of state authority to suspend or revoke the certification of games managers and other officials of organizations licensed to conduct games of chance under article XVIII, '2 of the state constitution. Defines a "license" to include certifications of such persons, and allows the secretary of state to assess civil penalties against any licensee. [Sections 1 and 2 of bill; Audit Committee recommendation.]
Allows the secretary of state to declare that a games manager whose certification has been revoked is ineligible to apply for a new certification for up to 24 months, in place of the current 12 months, while specifying that the period of ineligibility of an organization associated with the violator remains at the current 12 months. [Section 2 of bill; Secretary of State recommendation.]
Changes from annual to biennial issuance of bingoraffle licenses to organizations and accordingly doubles the fee payable upon application. [Section 3 of bill; Secretary of State recommendation.]
Requires advance approval of games by the secretary of state. Gives the secretary of state 30 days within which to act on an application before it is deemed approved. Directs the secretary of state to adopt rules requiring identifying markings on game equipment to indicate approval, and prohibits the purchase, sale, or distribution of equipment for unapproved games. [Sections 4, 5, and 6 of bill; Audit Committee/Secretary of State recommendations.]
Allows the secretary of state to set prices for bingo pack games and a minimum price for pickles. [Section 5 of bill; Secretary of State recommendation.]
Empowers the secretary of state to conduct indepth audits of licensees' expenditures. [Section 4 of bill; Secretary of State recommendation.]
Allows a person to act as "member in charge" (games manager) for no more than 5 bingoraffle licensee organizations. Penalizes an individual or organization for failure to promptly notify the secretary of state of all memberincharge designations or for failure to make any required report. [Section 4 of bill; Secretary of State recommendation.]
Streamlines current financial reporting requirements for manufacturer and supplier licensees by requiring only summary reports of business activity, including gross receipts, total sales, and total expenditures each quarter. [Section 6 of bill; Audit Committee recommendation.]
Streamlines current financial reporting requirements for licensee organizations by:
Requiring only summary reports of gross receipts and net proceeds each quarter;
Changing from quarterly to annual reporting of expenditures;
Eliminating the current requirement that all reports be "verified" (notarized); and
Eliminating the current requirement for detailed check records. Retains current requirements that financial records be maintained and made available for inspection and that expenses be described by classification. [Section 7 of bill; Audit Committee recommendation.]
Makes an appropriation to the department of state
for 5 new compliance investigators, 2 new auditors, and 2 new
clerical employees. [Section 8 of bill; Secretary of State recommendation.]
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. 129102, Colorado Revised Statutes, 1991 Repl. Vol., as amended, is amended BY THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS to read:
129102. Definitions. As used in this article, unless the context otherwise requires:
(11.5) "LICENSE" MEANS ANY LICENSE ISSUED BY THE LICENSING AUTHORITY PURSUANT TO THIS ARTICLE. "LICENSE" INCLUDES, WITHOUT LIMITATION, THE CERTIFICATION OF A GAMES MANAGER OR MEMBER IN CHARGE PURSUANT TO SECTION 129105 (2) OR 129107 (2) (a).
(12.5) "LICENSEE" MEANS THE HOLDER OF ANY LICENSE ISSUED BY THE LICENSING AUTHORITY PURSUANT TO THIS ARTICLE.
SECTION 2. 129103 (1) (a), (1) (b), and (3), Colorado Revised Statutes, 1991 Repl. Vol., as amended, are amended to read:
129103. Licensing authority powers duties license suspension or revocation proceedings. (1) The secretary of state is hereby designated as the "licensing authority" of this article. As state licensing authority, the secretary of state's powers and duties are as follows:
(a) To grant or refuse licenses under this article. In addition, the licensing authority has the power and the responsibility, after investigation and hearing before an administrative law judge, to:
(I) Suspend or revoke any license issued by the licensing authority, in accordance with any order of such administrative law judge. When a license is ordered suspended or revoked, the licensee shall surrender the license to the licensing authority on or before the effective date of the suspension or revocation. No license is valid beyond the effective date of the suspension or revocation, whether surrendered or not. Any bingoraffle license may be temporarily suspended for a period not to exceed ten days pending any prosecution, investigation, or public hearing.
(II) ASSESS A CIVIL PENALTY, NOT TO EXCEED ONE THOUSAND DOLLARS.
(b) To supervise the administration of this article and to adopt, amend, and repeal rules and regulations governing the holding, operating, and conducting of games of chance, the rental of premises, and the purchase OR LEASE of equipment to the end that games of chance shall be held, operated, and conducted only by licensees for the purposes and in conformity with the state constitution and the provisions of this article;
(3) (a) (I) Upon a finding by
an administrative law judge of a violation of this article or
the rules and regulations, or both, such as would warrant the
suspension or revocation of a license, the administrative law
judge, in addition to any other penalties
THAT may be imposed by the administrative law judge, may declare
the violator ineligible to conduct a game of bingo and
OR to apply for a license under said laws for a period not exceeding
twelve months thereafter; EXCEPT THAT A GAMES MANAGER MAY BE DECLARED
SO INELIGIBLE FOR A PERIOD OF UP TO FIVE YEARS.
(II) Such declaration of ineligibility may be extended to include, in addition to the violator, any of its subsidiary organizations, its parent organization, or otherwise, affiliated with the violator when, in the opinion of the licensing authority, the circumstances of the violation warrant such action. IF THE VIOLATOR IS A GAMES MANAGER, THE PERIOD OF INELIGIBILITY OF AN ORGANIZATION AFFILIATED WITH SUCH GAMES MANAGER SHALL NOT EXCEED TWELVE MONTHS.
SECTION 3. 129104.5, Colorado Revised Statutes, 1991 Repl. Vol., as amended, is amended to read:
129104.5. Landlord licensees stipulations. (3) No landlord licensee or any employee of a landlord licensee shall require a bingoraffle licensee to purchase OR LEASE supplies or equipment from a particular supplier, distributor, or manufacturer as a condition of conducting games of chance at a commercial bingo facility.
SECTION 4. 129107 (9), Colorado Revised Statutes, 1991 Repl. Vol., as amended, is amended to read:
129107. Persons permitted to conduct games of chance premises equipment expenses. (9) Equipment, prizes, and supplies for games of bingo shall not be purchased, LEASED, or sold at prices in excess of the usual price thereof.
SECTION 5. 129107 (1), (2) and (4), Colorado Revised Statutes, 1991 Repl. Vol., are amended to read:
129107. Persons permitted
to conduct games of chance premises equipment
expenses audits by licensing authority.
(1) (a) No games of chance shall be conducted
by any person, firm, or organization within this state unless
a bingoraffle license as provided in this article has been
issued by the licensing authority. No person shall hold, operate,
or conduct any games of chance under any license issued under
this article except an active member of the organization to which
the bingoraffle license is issued, and no person shall assist
in the holding, operating, or conducting of any games of chance
under such license, except such an active member or a member of
an organization or association which is an auxiliary to the licensee,
a member of an organization or association of which such licensee
is an auxiliary, or a member of an organization or association
THAT is affiliated with the licensee by being, with it, auxiliary
to another organization or association and except bookkeepers
or accountants as provided in this section.
(b) NO GAMES OF CHANCE SHALL BE CONDUCTED BY ANY PERSON, FIRM, OR ORGANIZATION WITHIN THIS STATE UNLESS SUCH GAMES HAVE FIRST BEEN APPROVED BY THE LICENSING AUTHORITY PURSUANT TO SECTION 129107.2.
(c) No item of expense shall be incurred or paid in connection with the holding, operating, or conducting of any game of chance held, operated, or conducted pursuant to any license issued under this article, except bona fide expenses in reasonable amount for goods, wares, and merchandise furnished or services rendered, reasonably necessary for the holding, operating, or conducting thereof. No such games of chance shall be conducted with any equipment unless it is owned OR LEASED by a bingoraffle licensee or any landlord licensee.
(2) (a) The officers of a bingoraffle
licensee shall designate a bona fide, active member of the licensee
to be in charge and primarily responsible for the conduct of the
games of bingo or lotto on each occasion. The member in charge
shall supervise all activities on the occasion for which he OR
SHE is in charge and is responsible for the making of the required
report thereof. The member in charge shall be familiar with the
provisions of the state laws, the rules and regulations of the
licensing authority, and the provisions of the license
AND shall be present on the premises continuously during the games
and for a period of at least thirty minutes after the last game.
exempt organization A BINGO-RAFFLE
LICENSEE may designate more than one of its
bona fide, active members in order to comply with the requirements
of this subsection (2).
(c) A PERSON MAY BE DESIGNATED BY MORE THAN ONE, BUT NOT MORE THAN FIVE, BINGO-RAFFLE LICENSEES PURSUANT TO THIS SUBSECTION (2).
(d) THE LICENSING AUTHORITY MAY SUSPEND OR REVOKE THE LICENSE OF, OR ASSESS CIVIL PENALTIES AGAINST, ANY PERSON OR ORGANIZATION FOR FAILURE TO MAKE A REQUIRED REPORT OR TO NOTIFY THE LICENSING AUTHORITY PROMPTLY OF ALL DESIGNATIONS MADE OF OR BY SUCH PERSON OR ORGANIZATION PURSUANT TO THIS SUBSECTION (2).
(4) The entire net proceeds of any game shall be devoted to a lawful use or uses. EXCEPT FOR A TRANSFER OF PROCEEDS BETWEEN ANY BINGO-RAFFLE LICENSEE WHICH IS A BRANCH, LODGE, OR CHAPTER OF A NATIONAL OR STATE ORGANIZATION, NO PROCEEDS SHALL BE TRANSFERRED FROM ONE BINGO-RAFFLE LICENSEE TO ANOTHER BINGO-RAFFLE LICENSEE WITHOUT THE APPROVAL OF THE LICENSING AUTHORITY UPON A FINDING THAT SUCH PROCEEDS WILL BE DISBURSED BY THE RECIPIENT FOR A LAWFUL USE OR PURPOSE.
SECTION 6. Article 9 of title 12, Colorado Revised Statutes, 1991 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION to read:
129107.2. Approval of games setting of prices. NO LICENSEE SHALL OFFER, ADVERTISE, OR CONDUCT ANY GAME OF CHANCE WITHOUT PRIOR APPROVAL OF THE GAME BY THE LICENSING AUTHORITY. APPLICATIONS FOR APPROVAL SHALL BE SUBMITTED IN A FORM PRESCRIBED BY THE LICENSING AUTHORITY BY RULE. AN APPLICATION SHALL BE ACTED UPON WITHIN THIRTY DAYS OF SUBMISSION.
SECTION 7. 12-9-107.5 (2), (4), (5) and (6), Colorado Revised Statutes, 1991 Repl. Vol., are amended and is amended BY THE ADDITION OF A NEW SUBSECTION to read:
129107.5. Persons permitted to manufacture and distribute games of chance equipment reporting requirements. (2) No person, other than a supplier or manufacturer licensee or licensed agent or a bingoraffle licensee in the course of conducting licensed activities shall sell, LEASE, furnish, or distribute any pull tab, bingo card or sheet, or other games of chance equipment to any person within Colorado.
(4) No manufacturer or supplier licensee or licensed agent shall buy, receive, sell, LEASE, furnish, or distribute any pull tabs, bingo cards or sheets, or other games of chance equipment from or to any person within Colorado other than manufacturer or supplier licensees or agents and bingoraffle licensees; except that a supplier or manufacturer or its agent may sell or distribute cards, sheets, and equipment for the playing of bingo not for resale to such nursing homes and other entities as distribute the cards or sheets and allow playing of the game free of charge, without consideration given or received by any person for the privilege of playing.
(4.5) NO MANUFACTURER OR SUPPLIER LICENSEE OR LICENSED AGENT SHALL BUY, RECEIVE, SELL, FURNISH, OR DISTRIBUTE ANY PULL TABS, BINGO CARDS OR SHEETS, OR OTHER GAMES OF CHANCE EQUIPMENT FROM OR TO ANY PERSON WITHIN COLORADO UNLESS SUCH EQUIPMENT IS SUITABLE FOR USE IN A GAME PREVIOUSLY APPROVED BY THE LICENSING AUTHORITY PURSUANT TO SECTION 129107.2.
SECTION 8. 129108, Colorado Revised Statutes, 1991 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:
12-9-108. Bingo-raffle licensee's statement of receipts - expenses - fee. (8) UPON TERMINATION OF A LICENSE OF A BINGO-RAFFLE LICENSE FOR FAILURE OF THE LICENSEE TO RENEW THE SAME, THE LICENSEE SHALL FILE THE FOLLOWING WITH THE LICENSING AUTHORITY WITHIN THIRTY CALENDER DAYS OF THE LICENSE RENEWAL DATE:
(I) A DULY VERIFIED STATEMENT COVERING THE PREVIOUS TWELVE MONTHS SHOWING INFORMATION CONCERNING GROSS RECEIPTS, EXPENSES AND NOT PROCEEDS, AS SPECIFIED IN SECTION 12-9-108(1)(a) OF THIS ARTICLE; AND
(II) ITS PLAN FOR DISPOSAL OF ANY EQUIPMENT AND DISTRIBUTION OF ANY REMAINING NET PROCEEDS. BEFORE IMPLEMENTATION, A PLACE MUST BE APPROVED BY THE LICENSING AUTHORITY AS PROVIDED BY RULES AND REGULATIONS ADOPTED BY IT. THE LICENSING AUTHORITY MAY ACCEPT OR REJECT A PLAN AND ORDER SUBMISSION OF A NEW PLAN OR AMEND A PROPOSED PLAN. THE LICENSING AUTHORITY MAY SPECIFY A TIME FOR SUBMISSION OF NEW OR AMENDED PLANS OR FOR COMPLETION OF AN APPROVED PLAN.
SECTION 9. 129109, Colorado Revised Statutes, 1991 Repl. Vol., as amended, is amended to read:
129109. Examination of books and records. The licensing authority and its agents have power to examine or cause to be examined the books and records of any licensee to which any license is issued pursuant to this article, OR ANY SUCH LICENSEE WHICH HAS TERMINATED FOR ANY REASON, insofar as they may relate to any transactions connected with activities under the license.
SECTION 10. No appropriation. The general assembly has determined that this act can be implemented within existing appropriations, and therefore no separate appropriation of state moneys is necessary to carry out the purposes of this act.
SECTION 11. Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninetyday period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.