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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0461.01 JJC HOUSE BILL 98­1118

STATE OF COLORADO

BY REPRESENTATIVE Dyer

LOCAL GOVERNMENT

APPROPRIATIONS

A BILL FOR AN ACT

CONCERNING COMPULSIVE GAMBLING PREVENTION, AND MAKING AN APPROPRIATION IN CONNECTION THEREWITH.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)

Directs the department of public health and environment to implement a compulsive gambling prevention program. Instructs the state board of health to adopt rules necessary for implementing the program. Authorizes the department to provide grants to organizations and entities to:

! Provide compulsive gambling crisis counseling and referral services;

! Present educational programs regarding the dangers of excessive gambling and the warning signs of gambling addictions;

! Research the effects of gambling in Colorado;

! Establish treatment and support services.

Directs expenses of the compulsive gambling prevention program to be included as an expense of the state lottery. Creates the compulsive gambling prevention account within the lottery fund. Requires that 1/8 of 1% of total state lottery revenues be credited to the account for the costs of the compulsive gambling prevention program.

Requires state lottery retailers and retail gaming licensees to post notices that identify compulsive gambling crisis counseling and referral services and provide the toll­free telephone number for such services. Requires information regarding the compulsive gambling prevention program to be imprinted on lottery tickets.

Makes conforming amendments.

Makes an appropriation.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.  Legislative declaration. (1)  The general assembly hereby finds and declares that the expansion of legalized gambling in Colorado, including the establishment of the state lottery, has greatly increased the availability of gambling to persons who gamble compulsively and, because of this availability, numerous citizens of Colorado are suffering from the effects of excessive gambling. Further, children currently growing up in Colorado are the first generation in the state that has been faced with the pressures and attractions of the wide variety of gambling now available, and numerous young people in the state have succumbed to gambling addictions despite the illegality of wagering by minors.

(2)  The general assembly further finds that the state, as the proponent of the most widely available form of gambling in Colorado, must take a share of the responsibility for compulsive gambling problems in Colorado and should proceed with measures intended to educate persons regarding compulsive gambling and to provide support to persons facing crises involving excessive gambling. The general assembly recognizes that at this time a person facing compulsive gambling difficulties who calls a toll­free gambling hotline will speak to counselors in another state because of the lack of a system in place in Colorado. The general assembly concludes that it is necessary that the state become more involved in addressing compulsive gambling problems.

(3)  The general assembly finds that the funding of the costs of the compulsive gambling prevention program is a proper expense of the state lottery. The general assembly recognizes that moneys spent for compulsive gambling intervention, education, research, and prevention will ultimately result in savings to the state because of fewer incidents of crime, domestic violence, emergency response, and other consequences of excessive gambling by compulsive gamblers.

SECTION 2.  Part 2 of article 35 of title 24, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

24­35­210.5.  Compulsive gambling prevention program ­ compulsive gambling prevention account in the lottery fund. (1)  THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT SHALL IMPLEMENT A COMPULSIVE GAMBLING PREVENTION PROGRAM UNDER THE PROVISIONS OF THIS SECTION THROUGH THE GRANTING OF MONEYS TO ORGANIZATIONS AND ENTITIES AS PROVIDED IN SUBSECTION (3) OF THIS SECTION. THE STATE BOARD OF HEALTH SHALL PROMULGATE RULES REGARDING THE IMPLEMENTATION OF THE COMPULSIVE GAMBLING PREVENTION PROGRAM. AT A MINIMUM, SUCH RULES SHALL SPECIFY PROCEDURES BY WHICH AN ORGANIZATION OR ENTITY MAY APPLY FOR A GRANT THROUGH THE PROGRAM AND THE CRITERIA FOR AWARDING GRANTS THROUGH THE PROGRAM.

(2)  THERE IS HEREBY CREATED, WITHIN THE LOTTERY FUND, THE COMPULSIVE GAMBLING PREVENTION ACCOUNT. ONE­EIGHTH OF ONE PERCENT OF THE TOTAL REVENUE ACCRUING FROM THE SALE OF LOTTERY TICKETS OR SHARES ON OR AFTER JULY 1, 1998, SHALL BE CREDITED TO THE COMPULSIVE GAMBLING PREVENTION ACCOUNT. SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY, THE MONEYS IN SUCH ACCOUNT SHALL BE USED BY THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT TO PAY THE EXPENSES OF THE COMPULSIVE GAMBLING PREVENTION PROGRAM CREATED IN THIS SECTION.

(3)  THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT SHALL PROVIDE GRANTS OF MONEYS TO ORGANIZATIONS AND ENTITIES FOR THE FOLLOWING PURPOSES:

(a)  ESTABLISHMENT AND MAINTENANCE OF A TOLL­FREE TELEPHONE NUMBER TO PROVIDE CRISIS COUNSELING AND REFERRAL SERVICES TO INDIVIDUALS AND FAMILIES FACING DIFFICULTIES BECAUSE OF COMPULSIVE GAMBLING;

(b)  PRESENTATION OF EDUCATION PROGRAMS TO TEACH CHILDREN IN THE SCHOOLS AND OTHERS ABOUT THE DANGERS OF EXCESSIVE GAMBLING AND THE SIGNS OF GAMBLING ADDICTIONS;

(c)  PROMOTION OF PUBLIC AWARENESS OF THE DANGERS OF PROBLEM AND COMPULSIVE GAMBLING AND OF WARNING SIGNS OF COMPULSIVE GAMBLING;

(d)  RESEARCH REGARDING THE EFFECTS OF GAMBLING, INCLUDING BUT NOT LIMITED TO THE EFFECT OF THE STATE LOTTERY ON THE CITIZENS OF COLORADO; AND

(e)  PROGRAMS FOR THE TREATMENT OF GAMBLING ADDICTIONS AND THE PROVISION OF SUPPORT FOR COMPULSIVE GAMBLERS AND THEIR FAMILIES.

(4)  ON AND AFTER JANUARY 1, 1999, INFORMATION REGARDING THE COMPULSIVE GAMBLING PREVENTION PROGRAM SHALL BE IMPRINTED ON ANY LOTTERY TICKET OR SHARE SOLD PURSUANT TO THE PROVISIONS OF THIS PART 2; EXCEPT THAT THE SUPPLY OF ALL LOTTERY TICKETS OR SHARES THAT ARE PRINTED, ORDERED, OR UNDER CONTRACT BEFORE SUCH DATE MAY CONTINUE TO BE USED AND SOLD WITHOUT CONTAINING SUCH INFORMATION UNTIL SUCH SUPPLY OF TICKETS OR SHARES IS DEPLETED. THE COMMISSION BY RULE SHALL SPECIFY THE INFORMATION TO BE IMPRINTED PURSUANT TO THIS SUBSECTION (4). AT A MINIMUM, SUCH INFORMATION SHALL INCLUDE THE TOLL­FREE TELEPHONE NUMBER FOR ANY COMPULSIVE GAMBLING CRISIS COUNSELING AND REFERRAL SERVICES PROVIDED PURSUANT TO PARAGRAPH (a) OF SUBSECTION (3) OF THIS SECTION.

(5)  THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT SHALL ANNUALLY REPORT TO THE GENERAL ASSEMBLY REGARDING THE COMPULSIVE GAMBLING PREVENTION PROGRAM CREATED IN THIS SECTION. SUCH REPORT SHALL INCLUDE AN ACCOUNTING OF THE EXPENSES OF THE PROGRAM AND INFORMATION REGARDING THE EFFECTIVENESS OF MEASURES TO ADDRESS COMPULSIVE GAMBLING THAT ARE SUPPORTED BY GRANTS PROVIDED UNDER THE PROVISIONS OF THIS SECTION.

SECTION 3.  Part 5 of article 47.1 of title 12, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

12­47.1­529.5.  Licensees ­ duty to post notices ­ compulsive gambling counseling. ON AND AFTER JANUARY 1, 1999, EACH RETAIL GAMING LICENSEE SHALL POST, IN CONSPICUOUS PLACES NEAR ALL GAMING DEVICES, NOTICES IDENTIFYING THE COMPULSIVE GAMBLING CRISIS COUNSELING AND REFERRAL SERVICES PROVIDED PURSUANT TO SECTION 24­35­210.5 (3) (a), C.R.S., AND PROVIDING THE TOLL­FREE TELEPHONE NUMBER FOR THE SERVICES.

SECTION 4.  25­1­107 (1), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

25­1­107.  Powers and duties of the department ­ repeal. (1)  The department has, in addition to all other powers and duties imposed upon it by law, the following powers and duties:

(hh)  TO IMPLEMENT THE COMPULSIVE GAMBLING PREVENTION PROGRAM PURSUANT TO SECTION 24­35­210.5, C.R.S.

SECTION 5. 25­1­108 (1) (c), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBPARAGRAPH to read:

25­1­108. Powers and duties of the state board of health. (1)  In addition to all other powers and duties conferred and imposed upon the state board of health by the provisions of this part 1, the board has the following specific powers and duties:

(c) (VI)  TO ADOPT RULES CONCERNING THE COMPULSIVE GAMBLING PREVENTION PROGRAM PURSUANT TO SECTION 24­35­210.5, C.R.S.

SECTION 6.  24­35­206, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

24­35­206.  Licenses. (5.5)  ON AND AFTER JANUARY 1, 1999, EACH LOTTERY SALES AGENT SHALL POST, IN A CONSPICUOUS PLACE NEAR THE POINT OF SALE OF ANY TICKETS OR SHARES IN THE LOTTERY, A NOTICE IDENTIFYING THE COMPULSIVE GAMBLING CRISIS COUNSELING AND REFERRAL SERVICES PROVIDED PURSUANT TO SECTION 24­35­210.5 (3) (a) AND PROVIDING THE TOLL­FREE TELEPHONE NUMBER FOR THE SERVICES.

SECTION 7.  The introductory portion to 24­35­208 (2), Colorado Revised Statutes, is amended, and the said 24­35­208 (2) is further amended BY THE ADDITION OF A NEW PARAGRAPH, to read:

24­35­208.  Commission ­ powers and duties. (2)  Rules and regulations promulgated pursuant to subsection (1) of this section shall include, but shall not be limited to, the following:

(l)  THE INFORMATION REGARDING THE COMPULSIVE GAMBLING PREVENTION PROGRAM TO BE IMPRINTED ON ANY LOTTERY TICKET OR SHARE PURSUANT TO THE REQUIREMENTS OF SECTION 24­35­210.5 (4).

SECTION 8.  24­35­210 (1), Colorado Revised Statutes, is amended to read:

24­35­210.  Lottery fund ­ repeal. (1)  There is hereby created, in the office of the state treasurer, the lottery fund. The initial appropriation to the division, and all subsequent revenues of the division not earlier paid as prizes, shall be paid into the lottery fund. All expenses of the division, including the expenses of organized crime investigation and prosecution relating to the lottery AND THE EXPENSES OF THE COMPULSIVE GAMBLING PREVENTION PROGRAM CREATED IN SECTION 24­35­210.5, shall be paid from the lottery fund. For the purposes of this section and section 24­35­208, "expenses" do not include amounts expended for lottery prizes. Prizes for the lottery shall be paid only from the lottery fund or from moneys collected from the sale of lottery tickets or shares. Amounts for prizes and expenses are hereby appropriated to the division, except as provided in subsection (2) of this section.

SECTION 9.  Appropriation. In addition to any other appropriation, there is hereby appropriated, out of any moneys in the compulsive gambling prevention account in the lottery fund not otherwise appropriated, to the department of public health and environment, for the fiscal year beginning July 1, 1998, the sum of ____________ dollars ($ _________), or so much thereof as may be necessary, for the implementation of this act.

SECTION 10.  Effective date. This act shall take effect July 1, 1998.

SECTION 11.  Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.