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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0306.01 DHG HOUSE BILL 98­1299

STATE OF COLORADO

BY REPRESENTATIVE Young;

also SENATOR Bishop.

BUSINESS AFFAIRS & LABOR

APPROPRIATIONS

A BILL FOR AN ACT

CONCERNING THE REGULATION OF GAMES OF CHANCE, 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.)

Sunset Process ­ House Business Affairs and Labor Committee. Moves the responsibility for enforcement of laws relating to bingo and games of chance from the department of state to a newly created division of charitable gaming in the department of regulatory agencies while retaining the secretary of state as the "licensing authority" as required by section 2(2) of article XVIII of the state constitution.

Creates the Colorado charitable gaming control commission (commission) to promulgate rules and oversee the enforcement function. Gives the commission powers and duties similar to those of the existing limited gaming control commission, including the power to conduct criminal background checks of applicants for charitable gaming licenses and to inspect premises, books, and documents.

Moves back quarterly reporting deadlines by approximately 2 weeks, from the 15th to the end of the months of January, April, July, and October.

Requires bingo­raffle licensees to include in their quarterly reports the serial numbers and other identifying information regarding equipment and supplies purchased during the quarter.

Requires bingo­raffle licensees to include in their quarterly reports the name and address of each person to whom has been paid $300 or more in any single expenditure or prize during the quarter.

Upon termination of a bingo­raffle license for failure to renew, requires the licensee to submit a plan for the disposal of equipment and distribution of any remaining proceeds of games of chance. Gives the commission authority to approve or reject any such plan and requires the adoption of rules governing the disposal of equipment and distribution of proceeds. Allows the enforcement authority to examine the books and records not only of those who hold current licenses but also of those whose licenses have terminated for any reason.

Allows for assessment of monetary fines for violation of the statutes governing bingo­raffle games and games of chance or of rules adopted pursuant to those statutes.

Limits the certification of a games manager to a duration of 2 years. Gives the enforcement authority the power to suspend or revoke the certification of a games manager for violation of the applicable statutes and rules.

Requires advance approval of any new games of chance by the enforcement authority before they may legally be used.

Allows the use of leased equipment for games of chance, subject to the requirement that leases shall follow a standard lease agreement prescribed by the enforcement authority by rule.

Increases the maximum single prize for bingo or lotto to $500 from the current level of $250.

Creates separate cash funds for revenues generated through fees authorized to be collected by both the secretary of state and the enforcement authority. Allows fees to be set administratively in amounts that will approximately equal the direct and indirect costs incurred by these authorities.

Allows a landlord licensee to be responsible for or assist with the conduct, management, or operation of a game of chance within Colorado if it applies for and receives the approval of the enforcement authority, subject to specific criteria and under specific circumstances defined by the commission by rule.

Transfers appropriations from the department of state to the department of regulatory agencies for purposes of the act.


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

SECTION 1.  12­9­102, Colorado Revised Statutes, is amended BY THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS to read:

12­9­102.  Definitions. As used in this article, unless the context otherwise requires:

(1.6)  "CHARITABLE GAMING" MEANS BINGO, PULL TAB GAMES, AND RAFFLES, AS DEFINED IN SUBSECTIONS (1), (18.1), AND (19.3) OF THIS SECTION.

(2.7)  "COMMISSION" MEANS THE COLORADO CHARITABLE GAMING CONTROL COMMISSION CREATED IN SECTION 12­9­301.

(2.8)  "DIRECTOR" MEANS THE DIRECTOR OF THE DIVISION OF CHARITABLE GAMING IN THE DEPARTMENT OF REGULATORY AGENCIES.

(4.5)  "ENFORCEMENT AUTHORITY" MEANS THE DIVISION OF CHARITABLE GAMING IN THE DEPARTMENT OF REGULATORY AGENCIES CREATED IN SECTION 12­9­201. THE ENFORCEMENT AUTHORITY IS ALSO REFERRED TO IN THIS ARTICLE AS THE "DIVISION".

(11.5)  "LICENSE" MEANS ANY LICENSE, REGISTRATION, OR CERTIFICATION ISSUED BY THE LICENSING AUTHORITY OR THE ENFORCEMENT AUTHORITY, RESPECTIVELY, PURSUANT TO THIS ARTICLE, INCLUDING, 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, REGISTRATION, OR CERTIFICATION ISSUED BY THE LICENSING AUTHORITY OR THE ENFORCEMENT AUTHORITY, RESPECTIVELY, PURSUANT TO THIS ARTICLE. "LICENSEE" ALSO INCLUDES THE FORMER HOLDER OF ANY SUCH LICENSE, REGISTRATION, OR CERTIFICATION FOR PURPOSES OF INVESTIGATION OF ACTIVITIES THAT TOOK PLACE DURING THE PERIOD IN WHICH THE LICENSE, REGISTRATION, OR CERTIFICATION WAS EFFECTIVE.

SECTION 2.  12­9­113, Colorado Revised Statutes, is amended to read:

12­9­113.  Repeal ­ review of functions. This article is repealed, effective July 1, 1998 JULY 1, 2003. Prior to such repeal, the licensing functions of the secretary of state AND THE ENFORCEMENT FUNCTIONS OF THE DIVISION OF CHARITABLE GAMING IN THE DEPARTMENT OF REGULATORY AGENCIES shall be reviewed as provided for in section 24­34­104, C.R.S.

SECTION 3. Repeal.  24­34­104 (27.1), Colorado Revised Statutes, is repealed as follows:

24­34­104.  General assembly review of regulatory agencies and functions for termination, continuation, or reestablishment. (27.1)  The function of licensing of bingo and other games of chance through the secretary of state in accordance with article 9 of title 12, C.R.S., shall terminate July 1, 1998.

SECTION 4.  24­34­104 (32.1), Colorado Revised Statutes, is amended to read:

24­34­104.  General assembly review of regulatory agencies and functions for termination, continuation, or reestablishment. (32.1)  The following agencies, functions, or both, shall terminate on July 1, 2003:

(a)  The following division in the department of revenue: The division of gaming, created by part 2 of article 47.1 of title 12, C.R.S.

(b)  THE DIVISION OF CHARITABLE GAMING IN THE DEPARTMENT OF REGULATORY AGENCIES, CREATED IN SECTION 12­9­201, C.R.S.

(c)  THE CHARITABLE GAMING CONTROL COMMISSION, CREATED IN SECTION 12­9­301, C.R.S.

(d)  THE FUNCTION OF LICENSING OF BINGO AND OTHER GAMES OF CHANCE THROUGH THE SECRETARY OF STATE IN ACCORDANCE WITH ARTICLE 9 OF TITLE 12, C.R.S.

SECTION 5.  24­1­122 (2), Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PARAGRAPH to read:

24­1­122.  Department of regulatory agencies ­ creation. (2)  The department of regulatory agencies shall consist of the following divisions:

(l)  THE DIVISION OF CHARITABLE GAMING AND THE COLORADO CHARITABLE GAMING CONTROL COMMISSION, CREATED IN ARTICLE 9 OF TITLE 12, C.R.S. THE COLORADO CHARITABLE GAMING CONTROL COMMISSION SHALL EXERCISE ITS POWERS AND PERFORM ITS DUTIES AND FUNCTIONS UNDER THE DEPARTMENT AS THOUGH TRANSFERRED TO THE DEPARTMENT BY A TYPE 2 TRANSFER AND ALLOCATED TO THE DIVISION OF CHARITABLE GAMING.

SECTION 6.  Article 9 of title 12, Colorado Revised Statutes, is amended BY THE ADDITION OF THE FOLLOWING NEW PARTS to read:

PART 2

DIVISION OF CHARITABLE GAMING

12­9­201.  Division of charitable gaming ­ creation. THERE IS HEREBY CREATED, WITHIN THE DEPARTMENT OF REGULATORY AGENCIES, THE DIVISION OF CHARITABLE GAMING, ALSO REFERRED TO IN THIS ARTICLE AS THE "DIVISION". THE HEAD OF THE DIVISION SHALL BE THE DIRECTOR OF THE DIVISION, WHO SHALL BE APPOINTED AND SUBJECT TO REMOVAL BY THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REGULATORY AGENCIES. THE DIVISION OF CHARITABLE GAMING, THE COLORADO CHARITABLE GAMING CONTROL COMMISSION CREATED IN SECTION 12­9­301, AND THE DIRECTOR OF THE DIVISION OF CHARITABLE GAMING SHALL EXERCISE THEIR RESPECTIVE POWERS AND PERFORM THEIR RESPECTIVE DUTIES AND FUNCTIONS AS SPECIFIED IN THIS ARTICLE UNDER THE DEPARTMENT OF REGULATORY AGENCIES AS IF THE SAME WERE TRANSFERRED TO THE DEPARTMENT BY A TYPE 2 TRANSFER, AS SUCH TRANSFER IS DEFINED IN THE "ADMINISTRATIVE ORGANIZATION ACT OF 1968", ARTICLE 1 OF TITLE 24, C.R.S.; EXCEPT THAT THE COMMISSION SHALL HAVE FULL AND EXCLUSIVE AUTHORITY TO PROMULGATE RULES AND REGULATIONS RELATED TO CHARITABLE GAMING WITHOUT ANY APPROVAL BY, OR DELEGATION OF AUTHORITY FROM, THE DEPARTMENT.

12­9­202.  Function of division. THE FUNCTION OF THE DIVISION IS TO ENFORCE SECTION 2 OF ARTICLE XVIII OF THE STATE CONSTITUTION, AS AUTHORIZED GENERALLY IN SUBSECTION (6) OF SAID SECTION, IN ACCORDANCE WITH THIS ARTICLE.

12­9­203.  Director ­ qualification ­ powers and duties. (1)  THE DIRECTOR SHALL:

(a)  BE QUALIFIED BY TRAINING AND EXPERIENCE TO DIRECT THE WORK OF THE DIVISION;

(b)  BE OF GOOD CHARACTER AND SHALL NOT HAVE BEEN CONVICTED OF ANY FELONY OR GAMBLING­RELATED OFFENSE, NOTWITHSTANDING THE PROVISIONS OF SECTION 24­5­101, C.R.S.;

(c)  NOT BE ENGAGED IN ANY OTHER PROFESSION OR OCCUPATION THAT COULD PRESENT A CONFLICT OF INTEREST TO THE DIRECTOR'S DUTIES AS DIRECTOR OF THE DIVISION; AND

(d)  DIRECT AND SUPERVISE THE ADMINISTRATIVE AND TECHNICAL ACTIVITIES OF THE DIVISION.

(2)  IN ADDITION TO THE DUTIES IMPOSED UPON THE DIRECTOR ELSEWHERE IN THIS PART 2, THE DIRECTOR SHALL:

(a)  SUPERVISE AND ADMINISTER THE OPERATION OF THE DIVISION IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE AND THE RULES OF THE COMMISSION;

(b)  ATTEND MEETINGS OF THE COMMISSION OR APPOINT A DESIGNEE TO ATTEND IN THE DIRECTOR'S PLACE;

(c) (I)  EMPLOY AND DIRECT SUCH PERSONNEL AS MAY BE NECESSARY TO CARRY OUT THE PURPOSES OF THIS ARTICLE, BUT NO PERSON SHALL BE EMPLOYED WHO HAS BEEN CONVICTED OF A FELONY OR GAMBLING­RELATED OFFENSE, NOTWITHSTANDING THE PROVISIONS OF SECTION 24­5­101, C.R.S.

(II)  THE DIRECTOR, WITH THE APPROVAL OF THE COMMISSION, MAY ENTER INTO AGREEMENTS WITH ANY DEPARTMENT, AGENCY, OR UNIT OF STATE GOVERNMENT TO SECURE SERVICES THAT THE DIRECTOR DEEMS NECESSARY AND TO PROVIDE FOR THE PAYMENT FOR SUCH SERVICES AND MAY EMPLOY AND COMPENSATE SUCH CONSULTANTS AND TECHNICAL ASSISTANTS AS MAY BE REQUIRED AND AS OTHERWISE PERMITTED BY LAW.

(III)  THE DIRECTOR SHALL EXECUTE THE PAYMENT OF COSTS INCURRED IN THE OPERATION AND ADMINISTRATION OF THE DIVISION AND THE COSTS RESULTING FROM ANY CONTRACT ENTERED INTO FOR CONSULTING OR OPERATIONAL SERVICES.

(IV)  THE DIRECTOR SHALL COLLECT ALL LICENSE AND ADMINISTRATIVE FEES ESTABLISHED BY THE COMMISSION AND DEPOSIT SUCH FEES IN THE BINGO­RAFFLE ENFORCEMENT CASH FUND CREATED IN SECTION 12­9­103.5 (2).

(d)  CONFER WITH THE COMMISSION AS NECESSARY OR DESIRABLE, BUT NOT LESS THAN ONCE EACH MONTH, WITH REGARD TO THE OPERATION OF THE DIVISION;

(e)  MAKE AVAILABLE FOR INSPECTION BY THE COMMISSION OR ANY MEMBER OF THE COMMISSION, UPON REQUEST, ALL BOOKS, RECORDS, FILES, AND OTHER INFORMATION AND DOCUMENTS IN THE DIRECTOR'S OFFICE;

(f)  ADVISE THE COMMISSION AND RECOMMEND TO THE COMMISSION SUCH RULES AND OTHER PROCEDURES AS THE DIRECTOR DEEMS NECESSARY AND ADVISABLE TO IMPROVE THE OPERATION OF THE DIVISION AND THE CONDUCT OF CHARITABLE GAMING;

(g)  WITH THE CONCURRENCE OF THE COMMISSION OR PURSUANT TO COMMISSION REQUIREMENTS AND PROCEDURES, ENTER INTO CONTRACTS FOR MATERIALS, EQUIPMENT, AND SUPPLIES TO BE USED IN THE OPERATION OF THE DIVISION;

(h)  MAKE A CONTINUOUS STUDY AND INVESTIGATION OF THE OPERATION AND THE ADMINISTRATION OF SIMILAR LAWS THAT MAY BE IN EFFECT IN OTHER STATES OR COUNTRIES; OF ANY LITERATURE ON CHARITABLE GAMING THAT FROM TIME TO TIME MAY BE PUBLISHED OR AVAILABLE; AND OF ANY FEDERAL LAWS THAT MAY AFFECT THE OPERATION OF THE DIVISION, THE CONDUCTING OF CHARITABLE GAMING, OR THE REACTION OF COLORADO CITIZENS TO CHARITABLE GAMING WITH A VIEW TO RECOMMENDING OR EFFECTING CHANGES THAT WOULD SERVE THE PURPOSES OF THIS ARTICLE;

(i) (I)  FURNISH TO THE COMMISSION A MONTHLY REPORT THAT CONTAINS A FULL AND COMPLETE STATEMENT OF THE DIVISION'S REGULATORY ACTIVITIES AND EXPENSES FOR EACH MONTH.

(II)  ALL REPORTS REQUIRED BY THIS PARAGRAPH (i) SHALL BE PUBLIC, AND COPIES OF ALL SUCH REPORTS SHALL BE SENT TO THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REGULATORY AGENCIES.

(j)  ANNUALLY PREPARE AND SUBMIT TO THE COMMISSION, FOR ITS COMMENT, A PROPOSED BUDGET FOR THE SUCCEEDING FISCAL YEAR;

(k)  TAKE SUCH ACTION AS MAY BE DETERMINED BY THE COMMISSION TO BE NECESSARY TO PROTECT THE SECURITY AND INTEGRITY OF CHARITABLE GAMING; AND

(l)  PERFORM ANY OTHER LAWFUL ACTS THAT THE COMMISSION MAY CONSIDER NECESSARY OR DESIRABLE IN ORDER TO CARRY OUT THE PURPOSES AND PROVISIONS OF THIS ARTICLE.

12­9­204.  Investigators. (1)  ALL INVESTIGATORS OF THE DIVISION, AND THEIR SUPERVISORS, INCLUDING THE DIRECTOR AND THE EXECUTIVE DIRECTOR, SHALL HAVE ALL OF THE FOLLOWING POWERS:

(a)  INSPECT, EXAMINE, INVESTIGATE, HOLD, OR IMPOUND ANY PREMISES WHERE CHARITABLE GAMING IS CONDUCTED, ANY EQUIPMENT DESIGNED FOR OR USED IN CHARITABLE GAMING, AND ANY BOOKS AND RECORDS IN ANY WAY CONNECTED WITH ANY CHARITABLE GAMING ACTIVITY;

(b)  REQUIRE ANY PERSON LICENSED PURSUANT TO THIS ARTICLE, UPON DEMAND, TO PERMIT AN INSPECTION OF SUCH PERSON'S LICENSED PREMISES, GAMING EQUIPMENT, OR BOOKS OR RECORDS; AND TO PERMIT THE TESTING AND THE SEIZURE FOR TESTING OR EXAMINATION PURPOSES OF ALL SUCH EQUIPMENT AND BOOKS AND RECORDS;

(c)  SERVE ALL WARRANTS, NOTICES, SUMMONSES, OR OTHER PROCESSES RELATING TO THE ENFORCEMENT OF LAWS REGULATING CHARITABLE GAMING;

(d)  SERVE DISTRAINT WARRANTS ISSUED BY THE DEPARTMENT OF REGULATORY AGENCIES PERTAINING TO CHARITABLE GAMING;

(e)  CONDUCT INVESTIGATIONS INTO THE CHARACTER, RECORD, AND REPUTATION OF ALL APPLICANTS FOR CHARITABLE GAMING LICENSES, ALL LICENSEES, AND SUCH OTHER PERSONS AS THE COMMISSION MAY DETERMINE PERTAINING TO CHARITABLE GAMING;

(f)  INVESTIGATE VIOLATIONS OF ALL THE LAWS PERTAINING TO CHARITABLE GAMING AND CHARITABLE GAMING ACTIVITIES.

(2)  CRIMINAL VIOLATIONS OF THIS ARTICLE DISCOVERED DURING AN AUTHORIZED INVESTIGATION OR DISCOVERED BY THE COMMISSION SHALL BE REFERRED TO THE APPROPRIATE DISTRICT ATTORNEY.

(3)  NOTHING IN THIS SECTION SHALL BE CONSTRUED TO PROHIBIT LOCAL SHERIFFS, POLICE DEPARTMENTS, AND OTHER LOCAL LAW ENFORCEMENT AGENCIES FROM ENFORCING THE PROVISIONS OF THIS ARTICLE, AND THE RULES PROMULGATED PURSUANT TO THIS ARTICLE, OR FROM PERFORMING THEIR OTHER DUTIES TO THE FULL EXTENT PERMITTED BY LAW.

12­9­205.  Repeal of division ­ review of functions. UNLESS CONTINUED BY THE GENERAL ASSEMBLY, THIS PART 2 IS REPEALED, EFFECTIVE JULY 1, 2003, AND THOSE POWERS, DUTIES, AND FUNCTIONS OF THE DIRECTOR SPECIFIED IN THIS PART 2 ARE ABOLISHED. THE PROVISIONS OF SECTION 24­34­104 (5) TO (12), C.R.S., CONCERNING A WIND­UP PERIOD, AN ANALYSIS AND EVALUATION, PUBLIC HEARINGS, AND CLAIMS BY OR AGAINST AN AGENCY SHALL APPLY TO THE POWERS, DUTIES, AND FUNCTIONS OF THE DIRECTOR OF THE DIVISION.

PART 3

COLORADO CHARITABLE GAMING

CONTROL COMMISSION

12­9­301.  Colorado charitable gaming control commission ­ creation ­ repeal of part. (1)  THERE IS HEREBY CREATED, WITHIN THE DIVISION OF CHARITABLE GAMING IN THE DEPARTMENT OF REGULATORY AGENCIES, THE COLORADO CHARITABLE GAMING CONTROL COMMISSION.

(2)  THE COMMISSION SHALL CONSIST OF SEVEN MEMBERS, ALL OF WHOM SHALL BE CITIZENS OF THE UNITED STATES WHO HAVE BEEN RESIDENTS OF THE STATE FOR THE PAST FIVE YEARS. THE MEMBERS SHALL BE APPOINTED BY THE GOVERNOR, WITH THE CONSENT AND APPROVAL OF THE SENATE. NO MEMBER SHALL HAVE BEEN CONVICTED OF A FELONY OR GAMBLING­RELATED OFFENSE, NOTWITHSTANDING THE PROVISIONS OF SECTION 24­5­101, C.R.S. NO MORE THAN FOUR OF THE SEVEN MEMBERS SHALL BE MEMBERS OF THE SAME POLITICAL PARTY AND NO MORE THAN TWO MEMBERS SHALL BE FROM ANY ONE CONGRESSIONAL DISTRICT. AT THE FIRST MEETING OF EACH FISCAL YEAR, A CHAIR AND VICE­CHAIR OF THE COMMISSION SHALL BE CHOSEN FROM THE MEMBERSHIP BY A MAJORITY OF THE MEMBERS. MEMBERSHIP AND OPERATION OF THE COMMISSION SHALL ADDITIONALLY MEET THE FOLLOWING REQUIREMENTS:

(a)  ONE MEMBER OF THE COMMISSION SHALL HAVE HAD AT LEAST FIVE YEARS' LAW ENFORCEMENT EXPERIENCE AS A PEACE OFFICER; ONE MEMBER SHALL BE AN ATTORNEY ADMITTED TO THE PRACTICE OF LAW IN COLORADO FOR NOT LESS THAN FIVE YEARS AND WHO HAS EXPERIENCE IN REGULATORY LAW; ONE MEMBER SHALL BE A CERTIFIED PUBLIC ACCOUNTANT OR PUBLIC ACCOUNTANT WHO HAS BEEN PRACTICING IN COLORADO FOR AT LEAST FIVE YEARS AND WHO HAS A COMPREHENSIVE KNOWLEDGE OF THE PRINCIPLES AND PRACTICES OF CORPORATE FINANCE; TWO MEMBERS SHALL BE BONA FIDE MEMBERS OF BINGO­RAFFLE LICENSEES; ONE MEMBER SHALL BE A LANDLORD LICENSEE; AND ONE MEMBER SHALL BE A REGISTERED ELECTOR OF THE STATE WHO IS NOT EMPLOYED IN ANY PROFESSION OR INDUSTRY OTHERWISE DESCRIBED IN THIS PARAGRAPH (a). THE SECRETARY OF STATE SHALL BE A NONVOTING, EX OFFICIO MEMBER OF THE COMMISSION.

(b)  INITIAL MEMBERS SHALL BE APPOINTED TO THE COMMISSION BY THE GOVERNOR AS FOLLOWS: ONE MEMBER TO SERVE UNTIL JULY 1, 1999, TWO MEMBERS TO SERVE UNTIL JULY 1, 2000, TWO MEMBERS TO SERVE UNTIL JULY 1, 2001, AND TWO MEMBERS TO SERVE UNTIL JULY 1, 2002. ALL SUBSEQUENT APPOINTMENTS SHALL BE FOR TERMS OF FOUR YEARS. NO MEMBER OF THE COMMISSION SHALL BE ELIGIBLE TO SERVE MORE THAN TWO CONSECUTIVE TERMS.

(c)  ANY VACANCY ON THE COMMISSION SHALL BE FILLED FOR THE UNEXPIRED TERM IN THE SAME MANNER AS THE ORIGINAL APPOINTMENT. THE MEMBER APPOINTED TO FILL SUCH VACANCY SHALL BE FROM THE SAME CATEGORY DESCRIBED IN PARAGRAPH (a) OF THIS SUBSECTION (1) AS THE MEMBER VACATING THE POSITION.

(d)  ANY MEMBER OF THE COMMISSION MAY BE REMOVED BY THE GOVERNOR AT ANY TIME.

(e)  THE TERM OF ANY MEMBER OF THE COMMISSION WHO MISSES MORE THAN TWO CONSECUTIVE REGULAR COMMISSION MEETINGS WITHOUT GOOD CAUSE SHALL BE TERMINATED AND SUCH MEMBER'S SUCCESSOR SHALL BE APPOINTED IN THE MANNER PROVIDED FOR APPOINTMENTS UNDER THIS SECTION.

(f)  COMMISSION MEMBERS SHALL RECEIVE AS COMPENSATION FOR THEIR SERVICES FIFTY DOLLARS FOR EACH DAY SPENT IN THE CONDUCT OF COMMISSION BUSINESS AND SHALL BE REIMBURSED FOR NECESSARY TRAVEL AND OTHER REASONABLE EXPENSES INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES. THE MAXIMUM ANNUAL COMPENSATION FOR EACH MEMBER OF THE COMMISSION, INCLUDING REIMBURSEMENT FOR NECESSARY TRAVEL AND OTHER REASONABLE EXPENSES INCURRED IN THE PERFORMANCE OF THEIR OFFICIAL DUTIES, SHALL NOT EXCEED TEN THOUSAND DOLLARS PER YEAR. AS A NONVOTING EX OFFICIO MEMBER OF THE COMMISSION, THE SECRETARY OF STATE SHALL NOT RECEIVE COMPENSATION FOR TIME SPENT IN THE CONDUCT OF COMMISSION BUSINESS, BUT SHALL BE REIMBURSED FOR NECESSARY TRAVEL EXPENSES INCURRED IN THE PERFORMANCE OF COMMISSION BUSINESS.

(g)  PRIOR TO CONFIRMATION BY THE SENATE, EACH MEMBER SHALL FILE WITH THE SECRETARY OF STATE A FINANCIAL DISCLOSURE STATEMENT IN THE FORM REQUIRED AND PRESCRIBED BY THE EXECUTIVE DIRECTOR. SUCH STATEMENT SHALL BE RENEWED AS OF EACH JANUARY 1 DURING THE MEMBER'S TERM OF OFFICE.

(h)  THE COMMISSION SHALL HOLD AT LEAST ONE MEETING EACH MONTH AND SUCH ADDITIONAL MEETINGS AS MAY BE PRESCRIBED BY RULES OF THE COMMISSION. IN ADDITION, SPECIAL MEETINGS MAY BE CALLED BY THE CHAIR, ANY TWO COMMISSION MEMBERS, OR THE DIRECTOR IF WRITTEN NOTIFICATION OF SUCH MEETING IS DELIVERED TO EACH MEMBER AT LEAST SEVENTY­TWO HOURS PRIOR TO SUCH MEETING. NOTWITHSTANDING THE PROVISIONS OF SECTION 24­6­402, C.R.S., IN EMERGENCY SITUATIONS IN WHICH A MAJORITY OF THE COMMISSION CERTIFIES THAT EXIGENCIES OF TIME REQUIRE THAT THE COMMISSION MEET WITHOUT DELAY, THE REQUIREMENTS OF PUBLIC NOTICE AND OF SEVENTY­TWO HOURS' ACTUAL ADVANCE WRITTEN NOTICE TO MEMBERS MAY BE DISPENSED WITH, AND COMMISSION MEMBERS AS WELL AS THE PUBLIC SHALL RECEIVE SUCH NOTICE AS IS REASONABLE UNDER THE CIRCUMSTANCES.

(i)  A MAJORITY OF THE COMMISSION SHALL CONSTITUTE A QUORUM, AND THE CONCURRENCE OF A MAJORITY OF THE MEMBERS PRESENT SHALL BE REQUIRED FOR ANY FINAL DETERMINATION BY THE COMMISSION.

(j)  THE COMMISSION SHALL KEEP A COMPLETE AND ACCURATE RECORD OF ALL ITS MEETINGS.

(3) (a)  THIS PART 3 IS REPEALED, EFFECTIVE JULY 1, 2003.

(b)  PRIOR TO SUCH REPEAL, THE FUNCTIONS OF THE COLORADO CHARITABLE GAMING CONTROL COMMISSION SHALL BE REVIEWED AS PROVIDED IN SECTION 24­34­104, C.R.S.

12­9­302.  Commission ­ powers and duties. (1)   IN ADDITION TO ANY OTHER POWERS AND DUTIES SET FORTH IN THIS PART 3, AND NOTWITHSTANDING THE DESIGNATION OF THE COLORADO CHARITABLE GAMING CONTROL COMMISSION UNDER SECTION 12­9­201 AS A TYPE 2 TRANSFER, THE COMMISSION SHALL HAVE THE FOLLOWING POWERS AND DUTIES:

(a)  TO PROMULGATE SUCH RULES GOVERNING THE LICENSING, CONDUCTING, AND OPERATING OF CHARITABLE GAMING AS IT DEEMS NECESSARY TO CARRY OUT THE PURPOSES OF THIS ARTICLE. THE DIRECTOR SHALL PREPARE AND SUBMIT TO THE COMMISSION WRITTEN RECOMMENDATIONS CONCERNING PROPOSED RULES FOR THIS PURPOSE.

(b) (I)  TO CONDUCT, IN ACCORDANCE WITH SECTION 24­4­105, C.R.S., HEARINGS UPON COMPLAINTS OR UPON ITS OWN MOTION CHARGING VIOLATIONS OF THIS ARTICLE OR RULES PROMULGATED PURSUANT TO THIS ARTICLE, AND TO CONDUCT SUCH OTHER HEARINGS AS MAY BE REQUIRED BY RULES OF THE COMMISSION;

(II)  THE COMMISSION, THROUGH THE DEPARTMENT OF REGULATORY AGENCIES, MAY EMPLOY ADMINISTRATIVE LAW JUDGES ON A FULL­TIME OR PART­TIME BASIS TO CONDUCT HEARINGS AS PROVIDED BY THIS ARTICLE OR ON ANY MATTER WITHIN THE COMMISSION'S JURISDICTION UPON SUCH CONDITIONS AND TERMS AS THE COMMISSION MAY DETERMINE.

(c)  TO ENTER INTO AGREEMENTS WITH THE COLORADO BUREAU OF INVESTIGATION AND STATE AND LOCAL LAW ENFORCEMENT AGENCIES FOR THE PURPOSE OF PERFORMING CRIMINAL BACKGROUND INVESTIGATIONS AND CRIMINAL RECORDS CHECKS ON AN APPLICANT APPLYING FOR LICENSURE PURSUANT TO THE PROVISIONS OF THIS ARTICLE AND INVESTIGATING VIOLATIONS OF ANY PROVISION OF THIS ARTICLE OR OF ANY RULE OF THE COMMISSION PURSUANT TO PARAGRAPH (a) OF THIS SUBSECTION (1) DISCOVERED AS A RESULT OF SUCH INVESTIGATORY PROCESS OR DISCOVERED BY THE DEPARTMENT OF REGULATORY AGENCIES OR THE COMMISSION IN THE COURSE OF CONDUCTING ITS BUSINESS. NOTHING IN THIS SECTION SHALL PREVENT OR IMPAIR THE COLORADO BUREAU OF INVESTIGATION OR STATE OR LOCAL LAW ENFORCEMENT AGENCIES FROM ENGAGING IN THE ACTIVITIES SET FORTH IN THIS PARAGRAPH (c) ON THEIR OWN INITIATIVE.

(d)  TO CONDUCT A CONTINUOUS STUDY AND INVESTIGATION OF CHARITABLE GAMING THROUGHOUT THE STATE FOR THE PURPOSE OF ASCERTAINING ANY DEFECTS IN THIS ARTICLE OR IN THE RULES PROMULGATED PURSUANT TO THIS ARTICLE OR IN ORDER TO DISCOVER ANY ABUSES IN THE ADMINISTRATION AND OPERATION OF THE DIVISION OR ANY VIOLATION OF THIS ARTICLE OR ANY RULE ADOPTED PURSUANT TO THIS ARTICLE;

(e)  TO FORMULATE AND RECOMMEND CHANGES TO THIS ARTICLE OR ANY RULE ADOPTED PURSUANT TO THIS ARTICLE FOR THE PURPOSE OF PREVENTING ABUSES AND VIOLATIONS OF THIS ARTICLE OR ANY OF THE RULES ADOPTED PURSUANT TO THIS ARTICLE; TO GUARD AGAINST THE USE OF THIS ARTICLE AND SUCH RULES AS A CLOAK FOR THE CONDUCTING OF ILLEGAL ACTIVITIES; AND TO ENSURE THAT THIS ARTICLE AND SUCH RULES SHALL BE IN SUCH FORM AND BE SO ADMINISTERED AS TO SERVE THE TRUE PURPOSE AND INTENT OF THIS ARTICLE;

(f)  TO REPORT IMMEDIATELY TO THE GOVERNOR, THE ATTORNEY GENERAL, THE SPEAKER OF THE HOUSE OF REPRESENTATIVES, THE PRESIDENT OF THE SENATE, THE MINORITY LEADERS OF BOTH HOUSES, AND SUCH OTHER STATE OFFICERS AS THE COMMISSION DEEMS APPROPRIATE CONCERNING ANY LAWS THAT IT DETERMINES REQUIRE IMMEDIATE AMENDMENT TO PREVENT ABUSES AND VIOLATIONS OF THIS ARTICLE OR ANY RULE ADOPTED PURSUANT TO THIS ARTICLE OR TO REMEDY UNDESIRABLE CONDITIONS IN CONNECTION WITH THE ADMINISTRATION OR OPERATION OF THE DIVISION OR ANY ACTIVITY RELATED TO CHARITABLE GAMING;

(g)  TO REQUIRE SUCH SPECIAL REPORTS FROM THE DIRECTOR AS IT CONSIDERS NECESSARY;

(h)  TO ISSUE TEMPORARY OR PERMANENT LANDLORD, MANUFACTURER, SUPPLIER, MANUFACTURER'S AGENT, OR SUPPLIER'S AGENT LICENSES AND GAMES MANAGER CERTIFICATIONS;

(i)  UPON COMPLAINT, OR UPON ITS OWN MOTION, TO LEVY FINES AND TO SUSPEND OR REVOKE LICENSES THAT THE COMMISSION OR THE LICENSING AUTHORITY HAS ISSUED. SUCH ACTIONS SHALL BE TAKEN IN COMPLIANCE WITH THE DUE PROCESS REQUIREMENTS OF SECTIONS 24­4­104 AND 24­4­105, C.R.S.

(j)  TO ESTABLISH FEES FOR SPECIFIC TYPES OF LICENSES USED IN, OR BY PERSONS PARTICIPATING IN, CHARITABLE GAMING, EXCEPT AS TO THOSE LICENSES ISSUED BY THE LICENSING AUTHORITY;

(k)  TO OBTAIN ALL INFORMATION FROM LICENSEES AND OTHER PERSONS AND AGENCIES THAT THE COMMISSION DEEMS NECESSARY OR DESIRABLE IN THE CONDUCT OF ITS BUSINESS;

(l)  TO ISSUE SUBPOENAS FOR THE APPEARANCE OR PRODUCTION OF PERSONS, RECORDS, AND THINGS IN CONNECTION WITH APPLICATIONS BEFORE THE COMMISSION OR IN CONNECTION WITH DISCIPLINARY OR CONTESTED CASES CONSIDERED BY THE COMMISSION;

(m)  TO APPLY FOR INJUNCTIVE OR DECLARATORY RELIEF TO ENFORCE THE PROVISIONS OF THIS ARTICLE AND ANY RULES ADOPTED PURSUANT TO THIS ARTICLE;

(n)  TO INSPECT AND EXAMINE OR CAUSE TO BE INSPECTED AND EXAMINED WITHOUT NOTICE ALL PREMISES WHEREIN CHARITABLE GAMING IS CONDUCTED OR EQUIPMENT USED IN CHARITABLE GAMING IS LOCATED, MANUFACTURED, SOLD, OR DISTRIBUTED, AND TO SUMMARILY SEIZE, REMOVE, AND IMPOUND, WITHOUT NOTICE OR HEARING, FROM SUCH PREMISES, ANY EQUIPMENT, SUPPLIES, BOOKS, OR RECORDS FOR THE PURPOSE OF EXAMINATION OR INSPECTION;

(o)  TO AUTHORIZE THE DIRECTOR TO ENTER INTO CONTRACTS WITH ANY GOVERNMENTAL ENTITY TO CARRY OUT ITS DUTIES WITHOUT COMPLIANCE WITH THE PROVISIONS OF THE "PROCUREMENT CODE", ARTICLES 101 TO 112 OF TITLE 24, C.R.S. SUCH CONTRACTS OR FORMAL AGREEMENTS, OR BOTH, ARE TO BE BASED ON PREESTABLISHED COMMISSION CRITERIA SPECIFYING MINIMUM LEVELS OF COOPERATION AND CONDITIONS FOR PAYMENT.

(p)  TO EXERCISE SUCH OTHER INCIDENTAL POWERS AS MAY BE NECESSARY TO ENSURE THE SAFE AND ORDERLY REGULATION OF CHARITABLE GAMING AND THE SECURE COLLECTION OF ALL FEES;

(q)  TO ESTABLISH INTERNAL CONTROL PROCEDURES FOR LICENSEES, INCLUDING, WITHOUT LIMITATION, ACCOUNTING PROCEDURES, AND REPORTING PROCEDURES;

(r)  TO ESTABLISH FEES FOR PERFORMING CRIMINAL BACKGROUND CHECKS ON ALL APPLICANTS FOR LICENSES AND ON ALL PERSONS WITH WHOM THE COMMISSION OR DIVISION MAY AGREE WITH OR CONTRACT WITH FOR THE PROVISION OF GOODS OR SERVICES, AS THE COMMISSION DEEMS APPROPRIATE;

(s)  TO ESTABLISH FEES FOR PERFORMING, OR HAVING PERFORMED, TESTS ON EQUIPMENT TO BE USED IN CHARITABLE GAMING;

(t)  TO DEMAND, AT ANY TIME WHEN BUSINESS IS BEING CONDUCTED, ACCESS TO AND INSPECTION, EXAMINATION, PHOTOCOPYING, AND AUDITING OF ALL PAPERS, BOOKS, AND RECORDS OF APPLICANTS AND LICENSEES, ON THEIR PREMISES OR ELSEWHERE AS PRACTICABLE AND IN THE PRESENCE OF THE LICENSEE OR THE LICENSEE'S AGENT, TO REQUIRE VERIFICATION OF INCOME, AND ALL OTHER MATTERS AFFECTING THE ENFORCEMENT OF THE POLICIES OF THE COMMISSION OR ANY PROVISION OF THIS ARTICLE; AND TO IMPOUND OR REMOVE ALL PAPERS, BOOKS, AND RECORDS OF APPLICANTS AND LICENSEES, WITHOUT HEARING, FOR INSPECTION OR EXAMINATION; AND

(u)  TO PRESCRIBE VOLUNTARY ALTERNATIVE METHODS FOR THE MAKING, FILING, SIGNING, SUBSCRIBING, VERIFYING, TRANSMITTING, RECEIVING, OR STORING OF REPORTS OR OTHER DOCUMENTS.

(2)  RULES ADOPTED PURSUANT TO SUBSECTION (1) OF THIS SECTION SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO, THE FOLLOWING:

(a)  THE TYPES OF CHARITABLE GAMING ACTIVITIES TO BE CONDUCTED AND THE RULES FOR THOSE ACTIVITIES;

(b)  THE REQUIREMENTS, QUALIFICATIONS, AND GROUNDS FOR THE ISSUANCE OF ALL TYPES OF PERMANENT AND TEMPORARY LICENSES ISSUED BY THE COMMISSION AND REQUIRED FOR THE CONDUCT OF CHARITABLE GAMING;

(c)  THE REQUIREMENTS, QUALIFICATIONS, AND GROUNDS FOR THE REVOCATION, SUSPENSION, AND SUMMARY SUSPENSION OF ALL LICENSES REQUIRED FOR THE CONDUCT OF CHARITABLE GAMING;

(d)  RESTRICTIONS UPON THE TIMES, PLACES, AND STRUCTURES WHERE CHARITABLE GAMING SHALL BE AUTHORIZED;

(e)  THE ONGOING OPERATION OF CHARITABLE GAMING ACTIVITIES;

(f)  THE SCOPE AND CONDITIONS FOR INVESTIGATIONS AND INSPECTIONS INTO THE CONDUCT OF CHARITABLE GAMING, THE BACKGROUND OF LICENSEES AND APPLICANTS FOR LICENSES ISSUED BY THE COMMISSION OR OF COMMISSION LICENSEES, THE PREMISES WHERE CHARITABLE GAMING IS AUTHORIZED, ALL PREMISES WHERE GAMING EQUIPMENT IS LOCATED, THE BOOKS AND RECORDS OF LICENSEES, AND THE SOURCES AND MAINTENANCE OF CHARITABLE GAMING EQUIPMENT;

(g)  ACTIVITIES THAT CONSTITUTE FRAUD, CHEATING, OR ILLEGAL ACTIVITIES;

(h)  THE SEIZURE, WITHOUT NOTICE OR HEARING, OF CHARITABLE GAMING EQUIPMENT, SUPPLIES, OR BOOKS AND RECORDS FOR THE PURPOSE OF EXAMINATION AND INSPECTION;

(i)  THE DISCLOSURE OF THE COMPLETE FINANCIAL INTERESTS OF APPLICANTS FOR LICENSES ISSUED BY THE COMMISSION OR OF COMMISSION LICENSEES;

(j)  THE GRANTING OF CERTAIN LICENSES WITH SPECIAL CONDITIONS OR FOR LIMITED PERIODS, OR BOTH;

(k)  THE ESTABLISHMENT OF PROCEDURES FOR DETERMINING SUITABILITY OR UNSUITABILITY OF PERSONS, ACTS, OR PRACTICES;

(l)  THE PAYMENT OF COSTS INCURRED BY THE COLORADO BUREAU OF INVESTIGATION AND ANY OTHER AGENCIES FOR INVESTIGATIONS OR CRIMINAL BACKGROUND CHECKS, WHICH SHALL BE PAID BY APPLICANTS FOR LICENSES ISSUED BY THE COMMISSION OR COMMISSION LICENSEES;

(m)  THE LEVYING OF FINES FOR VIOLATIONS OF THIS ARTICLE OR ANY RULE ADOPTED PURSUANT TO THIS ARTICLE;

(n)  THE AMOUNT OF FEES FOR ALL TYPES OF LICENSES, REGISTRATIONS, AND CERTIFICATIONS ISSUED BY THE COMMISSION;

(o)  THE CONDITIONS AND CIRCUMSTANCES THAT CONSTITUTE SUITABILITY OF PERSONS, LOCATIONS, AND EQUIPMENT FOR CHARITABLE GAMING;

(p)  THE TYPES AND SPECIFICATIONS OF ALL EQUIPMENT USED IN OR WITH CHARITABLE GAMING; AND

(q)  ALL OTHER PROVISIONS NECESSARY TO ACCOMPLISH THE PURPOSES OF THIS ARTICLE.

12­9­303.  Disqualification based on criminal history. MEMBERS OF THE COMMISSION AND EMPLOYEES OF THE DIVISION ARE DECLARED TO BE IN POSITIONS OF PUBLIC TRUST. IN ORDER TO ENSURE THE CONFIDENCE OF THE PEOPLE OF THE STATE IN THE INTEGRITY OF THE DIVISION, ITS EMPLOYEES, AND THE COMMISSION, NO MEMBER OF THE COMMISSION OR EMPLOYEE OF THE DIVISION, INCLUDING THE DIRECTOR, SHALL HAVE BEEN CONVICTED OF A FELONY OR ANY GAMBLING­RELATED OFFENSE, NOTWITHSTANDING THE PROVISIONS OF SECTION 24­5­101, C.R.S.

12­9­304.  Judicial review. ANY PERSON AGGRIEVED BY ANY FINAL ACTION OR ORDER OF THE COMMISSION AND AFFECTED THEREBY IS ENTITLED TO A REVIEW THEREOF BY THE COURT OF APPEALS BY APPROPRIATE PROCEEDINGS UNDER SECTION 24­4­106 (11), C.R.S.

SECTION 7.  12­9­107.5 (3) and (5), Colorado Revised Statutes, are amended to read:

12­9­107.5.  Persons permitted to manufacture and distribute games of chance equipment ­ reporting requirements. (3)  No individual shall act for or represent a manufacturer or supplier licensee with respect to an activity covered by such license unless such individual is the licensee's owner, officer, director, or ten percent or more shareholder of record with the secretary of state COMMISSION, or is the manufacturer's or supplier's licensed agent. No manufacturer or supplier licensee shall allow any person not authorized by this subsection (3) to represent it or serve as its agent with regard to any Colorado transaction.

(5)  Every manufacturer and supplier licensee shall file, upon forms prescribed by the licensing authority COMMISSION, quarterly reports on its licensed activities within Colorado. Such reports shall be accompanied by quarterly fees established by the secretary of state COMMISSION and deposited in the department of state BINGO­RAFFLE ENFORCEMENT cash fund and shall be filed in the office of the secretary of state WITH THE COMMISSION no later than April 15 30, July 15 31, October 15 31, and January 15 31 of each year licensed, and each report shall cover the preceding calendar quarter. Reports shall enumerate by quantity, purchaser, and price the pull tabs, bingo cards or sheets, and other games of chance equipment manufactured, conveyed, or distributed within Colorado or for use or distribution in Colorado and shall include the licensee's total sales of equipment as defined in section 12­9­102 (5) and the names and addresses of all Colorado suppliers or agents of the licensee and shall be signed and verified by the owner or the chief executive officer of the licensee. These quarterly reports shall not be public records as defined in section 24­72­202, C.R.S.

SECTION 8.  12­9­108 (1) and (7), Colorado Revised Statutes, are amended, and the said 12­9­108 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:

12­9­108.  Bingo­raffle licensee's statement of receipts ­ expenses ­ fee. (1) (a) (I)  On or before April 15 30, July 15 31, October 15 31, and January 15 31 of each year, every bingo­raffle licensee shall file with the licensing authority COMMISSION upon forms prescribed by the licensing authority COMMISSION a duly verified statement covering the preceding calendar quarter showing:

(A)  The amount of the gross receipts derived during said periods from games of chance;

(B)  The expenses incurred or paid and a brief description of the classification of such expenses;

(C)  The name and address of each person to whom has been paid three hundred dollars or more FOR ANY SINGLE EXPENDITURE OTHER THAN A PRIZE and the purpose of such expenditure;

(D)  THE NAME AND ADDRESS OF EACH PERSON TO WHOM HAS BEEN PAID A PRIZE HAVING A VALUE OF THREE HUNDRED DOLLARS OR MORE IN ANY GAME OF CHANCE;

(E)  The net proceeds derived from each such game of chance CONDUCTED BY OR ON BEHALF OF THE LICENSEE and the uses to which such net proceeds have been or are to be applied; and

(F)  THE SERIAL NUMBERS AND OTHER IDENTIFYING INFORMATION REGARDING GAMES OF CHANCE EQUIPMENT AND SUPPLIES PURCHASED DURING THE QUARTER.

(II)  It is the duty of each licensee to maintain and keep such books and records as may be necessary to substantiate the particulars of each such report.

(b)  Exempt organizations shall not be subject to the requirements of this subsection (1), except to the extent that they shall file with the state licensing authority COMMISSION statements showing the amount of the gross proceeds from their fund­raising drives and identifying all organizations receiving portions of such proceeds and the amounts received by each such organization.

(7)  Each licensee, at the time each financial report is submitted to the licensing authority COMMISSION, shall pay to the order of the licensing ENFORCEMENT authority the amount of administration expense provided in subsection (6) of this section.

(8)  UPON TERMINATION OF A LICENSE OF A BINGO­RAFFLE LICENSEE FOR FAILURE OF THE LICENSEE TO TIMELY AND SUFFICIENTLY RENEW SUCH LICENSE, THE LICENSEE SHALL FILE THE FOLLOWING WITH THE COMMISSION WITHIN THIRTY DAYS AFTER THE LICENSE RENEWAL DATE:

(a)  A VERIFIED STATEMENT COVERING THE PREVIOUS TWELVE MONTHS AND CONTAINING ALL INFORMATION REQUIRED TO BE INCLUDED IN THE QUARTERLY REPORTS DESCRIBED IN PARAGRAPH (a) OF SUBSECTION (1) OF THIS SECTION; AND

(b) (I)  THE LICENSEE'S PLAN FOR DISPOSAL OF ANY EQUIPMENT AND DISTRIBUTION OF ANY REMAINING NET PROCEEDS.

(II)  THE LICENSEE'S PLAN FOR DISPOSAL OF EQUIPMENT AND DISTRIBUTION OF PROCEEDS SHALL BE SUBJECT TO APPROVAL BY THE COMMISSION. EVERY SUCH PLAN SHALL SPECIFY THE CURRENT LOCATION OF ALL EQUIPMENT PROPOSED TO BE DISPOSED OF AND THE TIME AND PLACE OF ANY AUCTION OR PUBLIC SALE AT WHICH THE LICENSEE PROPOSES TO SELL SUCH EQUIPMENT. THE COMMISSION SHALL ADOPT RULES GOVERNING THE APPROVAL OF SUCH PLANS AND THE METHODS OF DISPOSING OF EQUIPMENT AND DISTRIBUTING PROCEEDS.

SECTION 9.  12­9­109, Colorado Revised Statutes, is amended to read:

12­9­109.  Examination of books and records. The licensing ENFORCEMENT 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 OF ANY SUCH LICENSEE WHOSE LICENSE HAS TERMINATED FOR ANY REASON, insofar as they may relate to any transactions connected with activities under the license OR TERMINATED LICENSE.

SECTION 10.  12­9­103 (1), (2), and (3), Colorado Revised Statutes, are amended, and the said 12­9­103 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:

12­9­103.  Licensing authority and enforcement 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 BINGO­RAFFLE licenses under this article AS SPECIFIED IN SUBSECTIONS (2) AND (3) OF SECTION 2 OF ARTICLE XVIII OF THE COLORADO CONSTITUTION; In addition, the licensing authority has the power and the responsibility, after investigation and hearing before an administrative law judge, to 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.

(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 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;

(c)  (Deleted by amendment, L. 93, p. 1265, 2, effective July 1, 1993.)

(d)  To keep records of all actions and transactions of the licensing authority;

(e)  To prepare and transmit annually, in the form and manner prescribed by the heads of the principal departments pursuant to the provisions of section 24­1­136, C.R.S., a report accounting to the governor for the efficient discharge of all responsibilities assigned by law or directive to the authority, and to issue publications of the authority intended for circulation in quantity outside the executive branch in accordance with the provisions of section 24­1­136, C.R.S.

(1.5) (a)  THE DIVISION OF CHARITABLE GAMING IN THE DEPARTMENT OF REGULATORY AGENCIES IS HEREBY DESIGNATED AS THE "ENFORCEMENT AUTHORITY" OF THIS ARTICLE. IN ADDITION TO ANY OTHER POWERS AND DUTIES CONFERRED BY LAW, THE ENFORCEMENT AUTHORITY IS HEREBY SPECIFICALLY AUTHORIZED TO ASSESS MONETARY FINES, NOT TO EXCEED FIVE HUNDRED DOLLARS PER VIOLATION FOR A BINGO­RAFFLE LICENSEE AND ONE THOUSAND DOLLARS PER VIOLATION FOR ANY OTHER LICENSEE, FOR VIOLATIONS OF THIS ARTICLE OR ANY RULES ADOPTED PURSUANT TO THIS ARTICLE. THE COMMISSION SHALL ADOPT RULES FOR THE IMPLEMENTATION OF THIS SUBSECTION (1.5) SETTING FORTH THE SPECIFIC TYPES OF VIOLATIONS FOR WHICH FINES WILL BE ASSESSED AND THE APPLICABLE FINE FOR EACH TYPE OF VIOLATION. ALL FINES ASSESSED PURSUANT TO THIS ARTICLE SHALL BE PAYABLE TO THE STATE TREASURER AND SHALL BE DEPOSITED IN THE GENERAL FUND OF THE STATE.

(b)  THE COMMISSION AND THE DIVISION, ACTING IN COOPERATION WITH AND UNDER THE POLICY DIRECTION OF THE COMMISSION, SHALL EXERCISE THE POLICE POWERS OF THE STATE OF COLORADO FOR THE PROTECTION OF THE HEALTH, PEACE, SAFETY, AND GENERAL WELFARE OF THE PEOPLE OF THE STATE, SHALL FOSTER HONESTY AND FAIR DEALING IN THE CHARITABLE GAMING INDUSTRY, AND SHALL FAIRLY AND CONSISTENTLY ENFORCE AND APPLY THE REQUIREMENTS OF THIS ARTICLE PURSUANT TO SECTION 2(6) OF ARTICLE XVIII OF THE COLORADO CONSTITUTION. EFFECTIVE JULY 1, 1998, ALL ENFORCEMENT POWERS FORMERLY VESTED IN THE LICENSING AUTHORITY ARE TRANSFERRED TO THE ENFORCEMENT AUTHORITY.

(2)  The licensing authority may suspend or revoke a license pursuant to the provisions of section 24­4­104, C.R.S. Hearings that are held for the purpose of determining whether a licensee's license should be revoked or suspended shall be conducted by an administrative law judge appointed pursuant to part 10 of article 30 of title 24, C.R.S., and shall be held in the manner and pursuant to the rules and procedures described in sections 24­4­104, 24­4­105, and 24­4­106, C.R.S. Hearings shall be held and concluded, in accordance with such rules, with reasonable dispatch and without unnecessary delay, and a decision shall be issued within ten days of such hearing.

(3) (a)  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 which may be imposed by the administrative law judge, may declare the violator ineligible to conduct a game of bingo and to apply for a license under said laws for a period not exceeding twelve months thereafter. 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.

(b)  The decision of the administrative law judge in suspending or revoking any license under this article shall be final and subject to review by the court of appeals, pursuant to the provisions of section 24­4­106 (11), C.R.S.

SECTION 11.  12­9­105 (2), Colorado Revised Statutes, is amended, and the said 12­9­105 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:

12­9­105.  Application for bingo­raffle license. (2) (a)  In each application there shall be designated active members of the applicant organization under whom the games of chance described in the application are to be held, operated, and conducted, and to the application shall be appended a statement executed by the applicant and by the members so designated that they will be responsible for the holding, operation, and conduct of such games of chance in accordance with the terms of the license and the provisions of this article. Each designated games manager shall have been an active member of the applicant for at least the six months immediately preceding his designation and must be certified by the licensing authority COMMISSION before assuming games management duties.

(b)  CERTIFICATION OF A GAMES MANAGER SHALL BE VALID FOR A PERIOD NOT TO EXCEED TWO YEARS. THE COMMISSION MAY SUSPEND OR REVOKE THE CERTIFICATION OF A GAMES MANAGER FOR A VIOLATION OF THIS ARTICLE OR OF ANY RULE ADOPTED PURSUANT TO THIS ARTICLE.

(4)  A PERSON WHOSE LICENSE OR CERTIFICATION HAS BEEN SUSPENDED, REVOKED, OR OTHERWISE RESTRICTED BY THE COMMISSION SHALL BE INELIGIBLE TO APPLY FOR ANY LICENSE TO CONDUCT CHARITABLE GAMING UNTIL THE TERMS OF SUCH SUSPENSION, REVOCATION, OR RESTRICTION HAVE BEEN FULFILLED.

SECTION 12.  12­9­107 (1), Colorado Revised Statutes, is 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 which 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 ENFORCEMENT AUTHORITY PURSUANT TO SECTION 12­9­107.2. SUCH APPROVAL SHALL NOT BE REQUIRED FOR ANY LAWFUL GAMES OF CHANCE THAT WERE CONDUCTED BEFORE THE EFFECTIVE DATE OF THIS SECTION, AS AMENDED, NOR FOR ICONS, SYMBOLS, LETTERS, NUMBERS, OR OTHER MARKINGS, DESIGNS, OR GRAPHICS USED TO IDENTIFY ANY LAWFUL GAME OF CHANCE CONDUCTED PRIOR TO, ON, OR AFTER SUCH DATE.

(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. IN THE CASE OF EQUIPMENT THAT IS LEASED, SUCH EQUIPMENT SHALL BE OWNED BY A SUPPLIER LICENSEE OR MANUFACTURER LICENSEE AND LEASED TO A BINGO­RAFFLE LICENSEE OR LANDLORD LICENSEE PURSUANT TO A STANDARD LEASE AGREEMENT PRESCRIBED BY THE COMMISSION.

SECTION 130  Article 9 of title 12, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

12­9­107.2.  Approval of games. NO LICENSEE SHALL OFFER, ADVERTISE, OR CONDUCT ANY GAME OF CHANCE WITHOUT PRIOR APPROVAL OF THE GAME BY THE ENFORCEMENT AUTHORITY. STANDARDS FOR APPROVAL SHALL BE PROMULGATED BY THE COMMISSION BY RULE. APPLICATIONS FOR APPROVAL SHALL BE SUBMITTED IN A FORM PRESCRIBED BY THE ENFORCEMENT AUTHORITY. AN APPLICATION SHALL BE ACTED UPON WITHIN THIRTY DAYS AFTER SUBMISSION.

SECTION 140  12­9­107.5 (2) and (4), Colorado Revised Statutes, are amended, and the said 12­9­107.5 is further 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, LEASE, 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 ENFORCEMENT AUTHORITY PURSUANT TO SECTION 12­9­107.2.

SECTION 150  12­9­104.5, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SUBSECTION to read:

12­9­104.5.  Landlord licensees ­ stipulations ­ record­keeping. (7)  EVERY LANDLORD LICENSEE SHALL MAINTAIN BOOKS AND RECORDS SHOWING:

(a)  THE NAME AND LICENSE NUMBER OF EACH BINGO­RAFFLE LICENSEE THAT CONDUCTED GAMES OF CHANCE IN A FACILITY OWNED BY THE LANDLORD LICENSEE;

(b)  THE DATE, TIME, AND SPONSORING BINGO­RAFFLE LICENSEE FOR EACH OCCASION ON WHICH GAMES OF CHANCE WERE CONDUCTED IN THE LANDLORD LICENSEE'S FACILITY;

(c)  THE AMOUNT OF RENT CHARGED FOR EACH OCCASION;

(d)  THE AMOUNT SPENT BY THE LANDLORD LICENSEE FOR ADVERTISING AND OTHER PROMOTIONAL ACTIVITIES IN CONNECTION WITH GAMES OF CHANCE, USE OF THE LANDLORD LICENSEE'S FACILITY FOR GAMES OF CHANCE, AND SALES OF GAMES OF CHANCE EQUIPMENT AND SUPPLIES;

(e)  THE AMOUNT CHARGED TO PLAYERS BY EACH BINGO­RAFFLE LICENSEE FOR BINGO PACKS; AND

(f)  THE AMOUNTS CHARGED TO EACH BINGO­RAFFLE LICENSEE BY THE LANDLORD LICENSEE FOR GAMES OF CHANCE EQUIPMENT AND SUPPLIES, OTHER THAN BINGO PACKS, SOLD FROM ON­SITE SUPPLY LOCKERS.

SECTION 160  12­9­107 (14), Colorado Revised Statutes, is amended to read:

12­9­107.  Persons permitted to conduct games of chance ­ premises ­ equipment ­ expenses. (14)  No prize greater, in amount or value, than two hundred fifty FIVE HUNDRED dollars shall be offered or given in any single game of bingo or lotto conducted under any such license, and the aggregate amount of all prizes offered or given in all games played on a single occasion shall not exceed fifteen hundred dollars.

SECTION 170  Article 9 of title 12, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:

12­9­103.5.  Cash funds ­ creation. (1) (a)  ALL FEES COLLECTED BY THE LICENSING AUTHORITY PURSUANT TO THIS ARTICLE SHALL BE TRANSMITTED TO THE STATE TREASURER, WHO SHALL CREDIT THE SAME TO THE BINGO­RAFFLE LICENSING CASH FUND, ALSO REFERRED TO IN THIS SUBSECTION (1) AS THE "FUND", WHICH FUND IS HEREBY CREATED IN THE STATE TREASURY. THE MONEYS IN THE FUND SHALL BE SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY FOR THE PURPOSES OF FINANCING THE LICENSING ACTIVITIES OF THE SECRETARY OF STATE AS SPECIFIED IN THIS ARTICLE. ANY UNEXPENDED BALANCE REMAINING IN SAID FUND AT THE END OF ANY FISCAL YEAR SHALL REMAIN IN THE FUND.

(b)  THERE SHALL BE NO COMMINGLING OF MONEYS BETWEEN THE FUND AND THE DEPARTMENT OF STATE CASH FUND CREATED IN SECTION 24­21­104 (3) (b), C.R.S.

(2)  ALL FEES COLLECTED BY THE ENFORCEMENT AUTHORITY PURSUANT TO THIS ARTICLE AND IN ACCORDANCE WITH RULES ADOPTED BY THE COMMISSION SHALL BE TRANSMITTED TO THE STATE TREASURER, WHO SHALL CREDIT THE SAME TO THE BINGO­RAFFLE ENFORCEMENT CASH FUND, ALSO REFERRED TO IN THIS SUBSECTION (2) AS THE "FUND",WHICH FUND IS HEREBY CREATED IN THE STATE TREASURY. THE MONEYS IN THE FUND SHALL BE SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY FOR THE PURPOSES OF FINANCING THE ENFORCEMENT ACTIVITIES OF THE DIVISION AS SPECIFIED IN THIS ARTICLE. ANY UNEXPENDED BALANCE REMAINING IN SAID FUND AT THE END OF ANY FISCAL YEAR SHALL REMAIN IN THE FUND.

(3)  FEES AUTHORIZED BY THIS ARTICLE SHALL BE ESTABLISHED BY THE LICENSING AUTHORITY AND THE COMMISSION, RESPECTIVELY, IN AMOUNTS SUFFICIENT TO ENSURE THAT THE TOTAL REVENUE GENERATED BY THE COLLECTION OF SUCH FEES APPROXIMATES THE DIRECT AND INDIRECT COSTS INCURRED BY THE RESPECTIVE AUTHORITIES IN CARRYING OUT THEIR DUTIES UNDER THIS ARTICLE. UPON COLLECTION, ALL SUCH FEES SHALL BE DEPOSITED IN THE CASH FUND OF THE AUTHORITY COLLECTING THE FEE.

SECTION 180  12­9­104 (2), Colorado Revised Statutes, is amended to read:

12­9­104.  Bingo­raffle license ­ fee. (2)  The bingo­raffle licenses provided by this article shall be issued by the licensing authority to applicants qualified under this article upon payment of a fee of sixty­two dollars and fifty cents ESTABLISHED AND COLLECTED BY THE LICENSING AUTHORITY IN ACCORDANCE WITH SECTION 12­9­103.5 (3). The Licenses shall expire at the end of the calendar year in which they were issued by the licensing authority and may be renewed by the licensing authority upon the filing of an application for renewal thereof provided by the licensing authority and the payment of the fee of sixty­two dollars and fifty cents ESTABLISHED for such renewal. No license granted under this article or any renewal thereof shall be transferable. The fees required to be paid for a new or renewal license shall be deposited in the department of state cash fund.

SECTION 190  The introductory portion to 12­9­105.3 (1), Colorado Revised Statutes, is amended, and the said 12­9­105.3 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:

12­9­105.3.  Application for landlord license ­ fee. (1)  Each applicant for a landlord license shall file with the licensing authority COMMISSION a written application, duly executed and verified, in the form presented by the licensing authority COMMISSION, which application shall include, but not be limited to, the following information:

(4)  THE ANNUAL FEE FOR EACH LANDLORD LICENSE SHALL BE DETERMINED BY THE COMMISSION PURSUANT TO SECTION 12­9­103.5 (3) AND DEPOSITED IN THE BINGO­RAFFLE ENFORCEMENT CASH FUND CREATED IN SECTION 12­9­103.5 (2).

SECTION 200  12­9­105.5 (3), Colorado Revised Statutes, is amended to read:

12­9­105.5.  Application for manufacturer license. (3)  Any bingo­raffle manufacturer, as defined in section 12­9­102, upon filing a true, complete, written, verified application in the form presented by the licensing authority COMMISSION, together with the fee for the license, is eligible for a manufacturer license. A manufacturer license shall be renewed annually, on or before March 31 of each year in which such licensee engages in or anticipates engaging in a licensed activity. A manufacturer license is nontransferable. The annual fee for each license shall be determined and collected BY THE COMMISSION pursuant to section 24­21­104 (3), C.R.S. The fee required to be paid for new and renewal licenses shall be deposited in the department of state cash fund created in said section 12­9­103.5 (3) AND DEPOSITED IN THE BINGO­RAFFLE ENFORCEMENT CASH FUND CREATED IN SECTION 12­9­103.5 (2).

SECTION 210  12­9­105.7 (3), Colorado Revised Statutes, is amended to read:

12­9­105.7.  Application for supplier license. (3)  Any bingo­raffle supplier, as defined in section 12­9­102, upon filing a true, complete, written, verified application in the form presented by the licensing authority COMMISSION, together with the fee for the license, is eligible for a supplier license. A supplier license shall be renewed annually, on or before March 31 of each year in which such licensee engages in or anticipates engaging in a licensed activity. A supplier license is nontransferable. The annual fee for each license shall be determined and collected BY THE COMMISSION pursuant to section 24­21­104 (3), C.R.S. The fee required to be paid for new and renewal licenses shall be deposited in the department of state cash fund created in said section 12­9­103.5 (3) AND DEPOSITED IN THE BINGO­RAFFLE ENFORCEMENT CASH FUND CREATED IN SECTION 12­9­103.5 (2).

SECTION 220  12­9­105.9 (3), Colorado Revised Statutes, is amended to read:

12­9­105.9.  Application for manufacturer's agent license or supplier's agent license. (3)  Any supplier's agent or manufacturer's agent as defined in section 12­9­102, upon filing a complete, written, verified application in the form presented by the licensing authority COMMISSION, together with the fee for the license, is eligible for a manufacturer's or supplier's agent license. A manufacturer's or supplier's agent license shall be renewed annually, on or before March 31 of each year in which such licensee engages in or anticipates engaging in a licensed activity. Neither a manufacturer's agent license nor a supplier's agent license is transferable. The annual fee for each license shall be determined and collected BY THE COMMISSION pursuant to section 24­21­104 (3), C.R.S. The fee required to be paid for new and renewal licenses shall be deposited in the department of state cash fund created in said section 12­9­103.5 (3) AND DEPOSITED IN THE BINGO­RAFFLE ENFORCEMENT CASH FUND CREATED IN SECTION 12­9­103.5 (2).

SECTION 230  12­9­106.5 (2), Colorado Revised Statutes, is amended to read:

12­9­106.5.  Form of landlord license ­ display ­ fee. (2)  A landlord license shall be issued to qualified applicants by the licensing authority COMMISSION upon payment of a fee and completion and approval of the landlord license application pursuant to section 12­9­105.3. Such license shall expire at the end of the calendar year in which it was issued by the licensing authority and may be renewed upon the filing and approval of an application for renewal provided by the licensing authority COMMISSION and the payment of a fee. No landlord license is transferable. The fees required to be paid for new and renewed licenses shall be established by the secretary of state and shall be deposited in the department of state cash fund created in section 24­21­104 (3), C.R.S. DETERMINED BY THE COMMISSION PURSUANT TO SECTION 12­9­103.5 (3) AND DEPOSITED IN THE BINGO­RAFFLE ENFORCEMENT CASH FUND CREATED IN SECTION 12­9­103.5 (2).

SECTION 240  12­9­108 (6), Colorado Revised Statutes, is amended to read:

12­9­108.  Bingo­raffle licensee's statement of receipts ­ expenses ­ fee. (6)  For the purposes enumerated in subsection (5) of this section, the following terms shall have the following meanings: "Goods, wares, and merchandise" means prizes, equipment as defined in section 12­9­102, and articles of a minor nature such as pencils, crayons, tickets, envelopes, paper clips, and coupons necessary to the conduct of games of chance; "services rendered" means repair to equipment, compensation to bookkeepers or accountants, not more than two in the aggregate, for services in preparing financial reports for a reasonable amount as determined by the secretary of state COMMISSION in rules and regulations for each occasion, rental of premises in a reasonable amount as determined by the secretary of state COMMISSION in rules and regulations for each occasion, except upon prior approval of a greater amount by the licensing ENFORCEMENT authority, a reasonable amount for janitorial service for each occasion as determined by the secretary of state COMMISSION in rules, and regulations and a reasonable amount for security expense based on established need as determined by the licensing authority COMMISSION. There shall be paid to the state licensing ENFORCEMENT authority an administrative fee upon the gross receipts of any game of chance held, operated, or conducted under the provisions of this article; except that the state licensing authority shall not charge an exempt organization SHALL NOT BE CHARGED more than twenty dollars per year. All administrative receipts and fees, including license fees, collected by the state under this article shall be deposited in the department of state cash fund created in section 24­21­104 (3), C.R.S. BINGO­RAFFLE ENFORCEMENT CASH FUND CREATED IN SECTION 12­9­103.5 (2).

SECTION 250  12­9­104.5 (6), Colorado Revised Statutes, is amended to read:

12­9­104.5.  Landlord licensees ­ stipulations. (6)  No landlord licensee or any employee or agent of a landlord licensee shall be a party responsible for or assisting with the conduct, management, or operation of any game of chance within Colorado; except that:

(a)  A landlord licensee which is also a bingo­raffle licensee may conduct such activities as its bingo­raffle license allows exclusively on its own behalf; AND

(b)  A LANDLORD LICENSEE MAY BE RESPONSIBLE FOR OR ASSIST WITH THE CONDUCT, MANAGEMENT, OR OPERATION OF A GAME OF CHANCE WITHIN COLORADO IF IT APPLIES FOR AND RECEIVES THE APPROVAL OF THE ENFORCEMENT AUTHORITY, SUBJECT TO SPECIFIC CRITERIA AND UNDER SPECIFIC CIRCUMSTANCES DEFINED BY THE COMMISSION BY RULE.

SECTION 260  12­9­107 (2) (a), (6), (11), (12), and (23), Colorado Revised Statutes, are amended to read:

12­9­107.  Persons permitted to conduct games of chance ­ premises ­ equipment ­ expenses. (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 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 COMMISSION, and the provisions of the license. He shall be present on the premises continuously during the games and for a period of at least thirty minutes after the last game.

(6)  The premises where any game of chance is being held, operated, or conducted, where it is intended that any game of chance be held, operated, or conducted, or where it is intended that any equipment be used, at all times, shall be open to inspection by the licensing ENFORCEMENT authority, its agents and employees, and by peace officers of any political subdivision of the state.

(11)  The net proceeds derived from the holding of games of chance must be devoted, within one year, to the lawful purposes of the organization permitted to conduct the same. Any organization desiring to hold the net proceeds of games of chance for a period longer than one year must apply to the licensing authority COMMISSION for special permission and, upon good cause shown, the authority COMMISSION may grant the request.

(12)  Any licensee which does not report, during any one­year period, net proceeds will be required to show cause before the licensing authority COMMISSION why its right to conduct games of chance should not be revoked.

(23)  The secretary of state COMMISSION shall not require an exempt organization to use raffles tickets in any particular form or displaying any particular information that would cause undue expense to the exempt organization and therefore interfere with the charitable fund­raising drive of such organization.

SECTION 270  Appropriation ­ adjustments to 1998 long bill. (1)  In addition to any other appropriation, there is hereby appropriated, to the department of regulatory agencies for allocation to the division of charitable gaming, for the fiscal year beginning July 1, 1998, the sum of ___ dollars ($ ) and ____ FTE, or so much thereof as may be necessary, for the implementation of this act. Of such sum, ___ dollars ($ ) shall be from the general fund and ____ dollars ($ ) shall be from cash funds exempt.

(2)  For the implementation of this act, appropriations made in the annual general appropriation act for the fiscal year beginning July 1, 1998, shall be adjusted as follows: The appropriation to the department of state, for bingo and raffle enforcement, is decreased by ___dollars ($   ) and ___ FTE, of which sum, ___ dollars ($ ) shall be from the general fund and ___dollars ($ ) shall be from cash funds exempt.

SECTION 280  Effective date. This act shall take effect July 1, 1998.

SECTION 290  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.