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Second Regular Session

Sixty-first General Assembly

LLS NO. 98­0900.01D DHG SENATE BILL 98­197

STATE OF COLORADO

BY SENATORS Bishop, Johnson, Ament, Dennis, Hopper, Martinez, Matsunaka, Reeves, Rizzuto, Tebedo, and Wattenberg;

also REPRESENTATIVES Young and Anderson.

BUSINESS AFFAIRS & LABOR

A BILL FOR AN ACT

CONCERNING REGULATION OF GAMES OF CHANCE BY CONTINUING LICENSING POWERS CONFERRED UPON THE SECRETARY OF STATE BY THE COLORADO CONSTITUTION AND REASSIGNING ENFORCEMENT POWERS TO THE DEPARTMENT OF REVENUE.

Bill Summary

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

Continues the function of licensing of bingo and other games of chance through the secretary of state for another 5 years, until July 1, 2003.

Moves the responsibility for enforcement of laws relating to bingo and games of chance from the department of state to the division of racing events in the department of revenue while retaining the secretary of state as the "licensing authority" as required by section 2(2) of article XVIII of the state constitution. Specifies that individual employees of the division of racing events shall be assigned duties relating to charitable gaming or racing, but not both simultaneously.

Creates the Colorado charitable gaming 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.

Provides civil and criminal penalties, including the administrative assessment of monetary fines, for violation of the statutes governing bingo­raffle games and games of chance or of rules adopted pursuant to those statutes. Gives the enforcement authority the power to suspend or revoke the certification of a games manager for violation of the applicable statutes and rules. Prohibits a person from acting as a games manager for more than 2 organizations except under commission rules raising the limit to a greater number, not to exceed 5.

Directs the commission to adopt rules allowing for licensure of student fraternities and sororities and of organizations, otherwise qualified, that have changed their names for legitimate reasons.

Allows a bingo­raffle licensee to conduct 158 games of chance per year, up from the current limit of 105. Increases the maximum single prize for bingo or lotto to $500 from the current level of $250. Allows certain organizations to conduct more than one game of chance simultaneously at separate locations, displaying a duplicate copy of their license at the off­site location.

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.

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

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.

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


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

SECTION 1.  12­9­102 (6), Colorado Revised Statutes, is amended, and the said 12­9­102 is further 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 COMMISSION CREATED IN SECTION 12­9­201.

(2.8)  "DIRECTOR" MEANS THE DIRECTOR OF THE DIVISION OF RACING EVENTS IN THE DEPARTMENT OF REVENUE.

(4.5)  "ENFORCEMENT AUTHORITY" MEANS THE DIVISION OF RACING EVENTS IN THE DEPARTMENT OF REVENUE CREATED IN SECTION 12­60­201. THE ENFORCEMENT AUTHORITY IS ALSO REFERRED TO IN THIS ARTICLE AS THE "DIVISION".

(6)  "Fraternal organization" means any organization within this state, except INCLUDING college and high school fraternities, not for pecuniary profit, which is a branch, lodge, or chapter of a national or state organization and exists for the common business, brotherhood, or other interests of its members and which has so existed for five years prior to making application for a license under this article. "Fraternal organization" also includes a graduate or alumni division or branch of a college fraternity, which division or branch holds a charter issued by the state of Colorado and which THAT meets all other criteria set forth in this subsection (6). As used in this subsection (6), "fraternity" includes a sorority.

(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 RACING EVENTS IN THE DEPARTMENT OF REVENUE 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 ENFORCEMENT FUNCTIONS OF THE DIVISION OF RACING EVENTS IN THE DEPARTMENT OF REVENUE WITH REGARD TO BINGO AND OTHER GAMES OF CHANCE IN ACCORDANCE WITH ARTICLE 9 OF TITLE 12, C.R.S.

(c)  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.

(d)  THE CHARITABLE GAMING COMMISSION, CREATED IN SECTION 12­9­201, C.R.S.

SECTION 5.  24­1­117 (4) (a) (VI ), Colorado Revised Statutes, is amended to read:

24­1­117.  Department of revenue ­ creation. (4) (a)  The department of revenue shall consist of the following divisions:

(VI)  Division of racing events, including the Colorado racing commission AND THE COLORADO CHARITABLE GAMING COMMISSION;

SECTION 6.  Repeal.  12­60­202 (2), Colorado Revised Statutes, is repealed as follows:

12­60­202.  Director ­ qualifications ­ powers and duties. (2)  The director shall devote his or her entire time and attention to the duties of the office and shall not be engaged in any other profession or occupation.

SECTION 7.  12­60­202 (3), Colorado Revised Statutes, is amended BY THE ADDITION OF THE FOLLOWING NEW PARAGRAPHS to read:

12­60­202.  Director ­ qualifications ­ powers and duties. (3)  The director, as administrative head of the division, shall direct and supervise all administrative and technical activities of the division. In addition to the duties imposed upon the director elsewhere in this article, it shall be the director's duty:

(j)  TO CARRY OUT ENFORCEMENT FUNCTIONS WITH REGARD TO BINGO AND OTHER GAMES OF CHANCE, AS AUTHORIZED BY SECTION 2 OF ARTICLE XVIII OF THE STATE CONSTITUTION, IN ACCORDANCE WITH ARTICLE 9 OF THIS TITLE.

(k)  TO SUPERVISE AND ADMINISTER THE OPERATION OF CHARITABLE GAMING IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 9 OF THIS TITLE AND THE RULES OF THE COLORADO CHARITABLE GAMING COMMISSION.

SECTION 8.  12­60­203 (1), Colorado Revised Statutes, is amended, and the said 12­60­203 is further amended BY THE ADDITION OF A NEW SUBSECTION, to read:

12­60­203.  Investigators ­ peace officers. (1) (a)  All investigators of the division of racing events and their supervisors, including the director and the executive director, shall for purposes of enforcement of this article be considered a peace officer, level II, as defined in section 18­1­901 (3) (l) (III), C.R.S.

(b)  INVESTIGATORS EMPLOYED BY THE DIVISION FOR THE PURPOSE OF INVESTIGATING CHARITABLE GAMING VIOLATIONS SHALL DEVOTE THEIR TIME EXCLUSIVELY TO SUCH PURPOSES AND SHALL NOT SIMULTANEOUSLY BE EMPLOYED, WHETHER FULL­TIME OR PART­TIME, IN THE INVESTIGATION OF PARI­MUTUEL RACING VIOLATIONS.

(1.5) (a)  THE DIVISION SHALL MAKE INVESTIGATIONS AND SHALL REQUEST THE COMMISSION OR THE DISTRICT ATTORNEY OF ANY DISTRICT, AS APPROPRIATE, TO PROSECUTE, ON BEHALF OF AND IN THE NAME OF THE DIVISION, SUITS AND PROCEEDINGS FOR ANY OF THE PURPOSES NECESSARY AND PROPER FOR CARRYING OUT THE FUNCTIONS OF THE DIVISION.

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

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

PART 2

COLORADO CHARITABLE GAMING

COMMISSION

12­9­201.  Colorado charitable gaming commission ­ creation ­ repeal of part. (1)  THERE IS HEREBY CREATED, WITHIN THE DIVISION OF RACING EVENTS IN THE DEPARTMENT OF REVENUE, THE COLORADO CHARITABLE GAMING COMMISSION.

(2)  THE COMMISSION SHALL CONSIST OF FIVE MEMBERS, ALL OF WHOM SHALL BE CITIZENS OF THE UNITED STATES WHO HAVE BEEN RESIDENTS OF THE STATE FOR AT LEAST 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 THREE OF THE FIVE MEMBERS SHALL BE MEMBERS OF THE SAME POLITICAL PARTY. 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) (I)  ONE MEMBER OF THE COMMISSION SHALL HAVE HAD AT LEAST FIVE YEARS' LAW ENFORCEMENT EXPERIENCE AS A PEACE OFFICER; 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; ONE MEMBER SHALL BE A BONA FIDE MEMBER OF A BINGO­RAFFLE LICENSEE ; ONE MEMBER SHALL BE A SUPPLIER LICENSEE OR 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.

(II)  ANY MEMBER OF THE COMMISSION HAVING A DIRECT PERSONAL OR PRIVATE INTEREST IN ANY MATTER BEFORE THE COMMISSION SHALL DISCLOSE SUCH FACT ON THE COMMISSION'S RECORD AND SHALL NOT VOTE ON SUCH MATTER.

(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 2 IS REPEALED, EFFECTIVE JULY 1, 2003.

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

12­9­202.  Commission ­ powers and duties. (1)  IN ADDITION TO ANY OTHER POWERS AND DUTIES SET FORTH IN THIS PART 2, 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 AND TO REGULATE THE CHARITABLE GAMING INDUSTRY FOR THE PROTECTION OF THE PUBLIC. 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 REVENUE, MAY EMPLOY ADMINISTRATIVE LAW JUDGES OR HEARING OFFICERS 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 REVENUE 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 AND INVESTIGATIONS 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;

(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 REASONABLE TIME, 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

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

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

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

(k)  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;

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

(m) THE AMOUNT OF FEES FOR ALL TYPES OF LICENSES, REGISTRATIONS, AND CERTIFICATIONS ISSUED BY THE COMMISSION AND FOR THE PERFORMANCE OF ADMINISTRATIVE SERVICES PURSUANT TO THIS ARTICLE;

(n)  THE ESTABLISHMENT OF PROCEDURES FOR ADMINISTRATIVE APPEALS TO THE COMMISSION FROM DECISIONS OF THE LICENSING AUTHORITY OR THE ENFORCEMENT AUTHORITY;

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

(p)  STANDARDS FOR THE APPROVAL OF GAMES OF CHANCE PURSUANT TO SECTION 12­9­107.2;

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

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

12­9­203.  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.

12­9­204. Delegation of authority to division. THE COMMISSION MAY DELEGATE TO THE DIVISION THE AUTHORITY TO ISSUE LICENSES, REGISTRATIONS, AND CERTIFICATIONS THAT THE COMMISSION IS AUTHORIZED TO ISSUE UNDER THIS ARTICLE, AND, IF IT CHOOSES TO DELEGATE SUCH AUTHORITY, SHALL PROMULGATE RULES CONTAINING STANDARDS FOR SUCH DELEGATION.

12­9­205.  Records ­ confidentiality ­ exceptions. (1)  INFORMATION AND RECORDS OF THE COMMISSION ENUMERATED BY THIS SECTION ARE CONFIDENTIAL AND MAY NOT BE DISCLOSED EXCEPT PURSUANT TO A COURT ORDER. NO PERSON MAY, BY SUBPOENA, DISCOVERY, OR STATUTORY AUTHORITY, OBTAIN SUCH INFORMATION OR RECORDS. INFORMATION AND RECORDS CONSIDERED CONFIDENTIAL INCLUDE:

(a)  TAX RETURNS OF INDIVIDUAL LICENSEES;

(b)  CREDIT REPORTS AND SECURITY REPORTS AND PROCEDURES OF APPLICANTS FOR LICENSES AND OTHER PERSONS SEEKING OR DOING BUSINESS WITH THE COMMISSION;

(c)  AUDIT WORK PAPERS, WORKSHEETS, AND AUDITING PROCEDURES USED BY THE COMMISSION, ITS AGENTS, OR EMPLOYEES; AND

(d)  INVESTIGATIVE REPORTS CONCERNING VIOLATIONS OF LAW OR CONCERNING THE BACKGROUNDS OF LICENSEES, APPLICANTS, OR OTHER PERSONS PREPARED BY DIVISION INVESTIGATORS OR INVESTIGATORS FROM OTHER AGENCIES WORKING WITH THE COMMISSION AND ANY WORK PAPERS RELATED TO SUCH REPORTS; EXCEPT THAT THE COMMISSION MAY, IN ITS SOLE DISCRETION, DISCLOSE SO MUCH OF SAID REPORTS OR WORK PAPERS AS IT DEEMS NECESSARY AND PRUDENT.

(2)  THIS SECTION DOES NOT APPLY TO REQUESTS FOR SUCH INFORMATION OR RECORDS FROM THE GOVERNOR, ATTORNEY GENERAL, STATE AUDITOR, ANY OF THE RESPECTIVE DISTRICT ATTORNEYS OF THIS STATE, OR ANY FEDERAL OR STATE LAW ENFORCEMENT AGENCY, OR FOR THE USE OF SUCH INFORMATION OR RECORDS BY THE EXECUTIVE DIRECTOR, DIRECTOR, OR COMMISSION FOR OFFICIAL PURPOSES, OR BY EMPLOYEES OF THE DIVISION OF RACING EVENTS OR THE DEPARTMENT OF REVENUE IN THE PERFORMANCE OF THEIR AUTHORIZED AND OFFICIAL DUTIES.

(3)  THIS SECTION MAY NOT BE CONSTRUED TO MAKE CONFIDENTIAL THE AGGREGATE TAX COLLECTIONS DURING ANY REPORTING PERIOD, THE NAMES AND BUSINESSES OF LICENSEES, OR FIGURES SHOWING THE AGGREGATE AMOUNT OF MONEY BET DURING ANY REPORTING PERIOD.

(4) (a)  ANY PERSON WHO DISCLOSES CONFIDENTIAL RECORDS OR INFORMATION IN VIOLATION OF THE PROVISIONS OF THIS SECTION COMMITS A CLASS 1 MISDEMEANOR AND SHALL BE PUNISHED AS PROVIDED IN SECTION 18­1­106, C.R.S. ANY CRIMINAL PROSECUTION PURSUANT TO THE PROVISIONS OF THIS SECTION MUST BE BROUGHT WITHIN FIVE YEARS FROM THE DATE THE VIOLATION OCCURRED.

(b)  IF THE PERSON WHO VIOLATES THIS SECTION IS AN OFFICER OR EMPLOYEE OF THE STATE, IN ADDITION TO ANY OTHER PENALTIES OR SANCTIONS, SUCH PERSON SHALL BE SUBJECT TO DISMISSAL IF THE PROCEDURES IN SECTION 24­50­125, C.R.S., ARE FOLLOWED.

(c)  IF THE PERSON VIOLATING SUCH PROVISIONS IS A PRESENT EMPLOYEE OR OFFICER OF THE STATE WHO OBTAINED THE CONFIDENTIAL RECORDS OR INFORMATION DURING SUCH EMPLOYMENT, THEN IN ANY CIVIL ACTION, THE SUBJECT OF WHICH INCLUDES THE RELEASE OF SUCH CONFIDENTIAL RECORDS OR INFORMATION, SUCH PERSON SHALL BE LIABLE FOR TREBLE DAMAGES TO ANY INJURED PARTY.

(d)  IF THE PERSON VIOLATING SUCH PROVISIONS IS A FORMER EMPLOYEE OR OFFICER OF THE STATE WHO OBTAINED THE CONFIDENTIAL RECORDS OR INFORMATION DURING SUCH EMPLOYMENT, AND IF SUCH PERSON EXECUTED A WRITTEN STATEMENT WITH THE STATE AGREEING TO BE HELD TO THE CONFIDENTIALITY STANDARDS EXPRESSED IN THIS SUBSECTION (4), THEN IN ANY CIVIL ACTION, THE SUBJECT OF WHICH INCLUDES THE RELEASE OF SUCH RECORDS OR INFORMATION AFTER LEAVING STATE EMPLOYMENT, THE FORMER EMPLOYEE OR OFFICER SHALL BE LIABLE FOR TREBLE DAMAGES TO ANY INJURED PARTY.

12­9­206.  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.

PART 3

ENFORCEMENT AND PENALTIES

12­9­301.  Criminal penalties. (1)  EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED IN THIS ARTICLE, ANY PERSON WHO COMMITS ANY ACT PROHIBITED BY THIS ARTICLE OTHER THAN ONE WHICH ALSO CONSTITUTES A CRIME UNDER THE "COLORADO CRIMINAL CODE", TITLE 18, C.R.S., COMMITS A CLASS 2 MISDEMEANOR AND SHALL BE PUNISHED AS PROVIDED IN SECTION 18­1­106, C.R.S.

(2)  ANY PERSON WHO VIOLATES ANY RULE OF THE COMMISSION PROMULGATED UNDER THE AUTHORITY GRANTED IN THIS ARTICLE, OTHER THAN THOSE RULE VIOLATIONS WHICH ALSO CONSTITUTE CRIMES UNDER THE "COLORADO CRIMINAL CODE", TITLE 18, C.R.S., COMMITS A CLASS 2 PETTY OFFENSE AND, UPON CONVICTION THEREOF, SHALL BE PUNISHED BY A FINE OF NOT MORE THAN ONE HUNDRED DOLLARS.

(3)  THE PENALTIES SET FORTH IN THIS SECTION ARE CUMULATIVE AND DO NOT PRECLUDE THE IMPOSITION OF CIVIL OR ADMINISTRATIVE PENALTIES, SANCTIONS, ACTIONS AGAINST LICENSES, REGISTRATIONS, OR CERTIFICATIONS, OR ANY OTHER PENALTIES OTHERWISE AUTHORIZED.

12­9­302.  Cancellation of license, registration, or certification. IN CASE OF A WILLFUL VIOLATION OF THIS ARTICLE BY A PERSON HOLDING A LICENSE, REGISTRATION, OR CERTIFICATION, THE COMMISSION, UPON CONVICTION OF THE OFFENDER, MAY CANCEL THE OFFENDER'S LICENSE, REGISTRATION, OR CERTIFICATION, AND SUCH CANCELLATION SHALL OPERATE AS A FORFEITURE OF ALL RIGHTS AND PRIVILEGES GRANTED BY THE COMMISSION AND OF ALL SUMS OF MONEY PAID TO THE DEPARTMENT OF REVENUE THROUGH THE DIVISION BY THE OFFENDER, AND THE ACTION OF THE COMMISSION IN THIS RESPECT SHALL BE FINAL.

12­9­303.  Exclusion from licensed premises. THE COMMISSION OR THE DIVISION MAY EXCLUDE FROM ANY AND ALL LICENSED PREMISES ANY PERSON WHO HAS BEEN CONVICTED OF A FELONY UNDER THE LAWS OF THIS OR ANY OTHER STATE OR OF THE UNITED STATES, SUBJECT TO THE PROVISIONS OF SECTION 24­5­101, C.R.S. ANY PERSON SO EXCLUDED BY THE COMMISSION OR THE DIVISION HAS A RIGHT TO A HEARING BEFORE THE COMMISSION AS TO THE BASIS OF SUCH EXCLUSION, SUBJECT TO THE PROVISIONS OF SECTION 24­4­104, C.R.S. NO SUCH PERSON SHALL ENTER OR REMAIN UPON PREMISES OWNED BY ANY LICENSEE CONDUCTING A GAME OF CHANCE UNDER THE JURISDICTION OF THE COMMISSION, AND ALL SUCH PERSONS, UPON DISCOVERY OR RECOGNITION, SHALL BE FORTHWITH EXCLUDED OR EJECTED FROM SUCH PREMISES. ANY PERSON SO EJECTED OR EXCLUDED FROM THE PREMISES OF ANY LICENSEE SHALL BE DENIED ADMISSION TO ITS PREMISES AND THE PREMISES OF ALL OTHER LICENSEES OF THE COMMISSION UNTIL PERMISSION FOR ENTERING HAS THEREAFTER BEEN OBTAINED FROM THE COMMISSION. THE COMMISSION MAY ALSO EXCLUDE ANY PERSON FROM SUCH LICENSED PREMISES WHO WILLFULLY VIOLATES ANY OF THE PROVISIONS OF THIS ARTICLE OR ANY RULE ISSUED BY THE COMMISSION.

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 RACING EVENTS IN THE DEPARTMENT OF REVENUE 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 BY ANY 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.  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 12.  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. The ESTABLISHED AND COLLECTED BY THE LICENSING AUTHORITY IN ACCORDANCE WITH SECTION 12­9­103.5 (3). 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 13.  12­9­104.5 (5) and (6), Colorado Revised Statutes, are amended, and the said 12­9­104.5 is further amended BY THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS, to read:

12­9­104.5.  Landlord licensees ­ stipulations. (5)  No activity or business other than licensed games of chance may be conducted in a commercial bingo facility during the time allocated to the bingo­raffle licensee with the exception of:

(a) The sale of food and beverages at OPERATION OF a concession stand separated from the playing area by walls, partitions, or counters AND FROM WHICH FOOD, BEVERAGES, AND RETAIL MERCHANDISE MAY BE SOLD AND EITHER USED OR CONSUMED AT SUCH CONCESSION STAND OR DELIVERED TO PLAYERS ELSEWHERE ON THE PREMISES; and

(b) Such activities as are conducted in rooms other than those included in the licensee's rental and those in which games of chance are held.

(6)  EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (7) OF THIS SECTION, 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 THAT 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.

(7)  NOTWITHSTANDING SUBSECTION (6) OF THIS SECTION:

(a)  A PERSON WHO IS AN EMPLOYEE OF A LANDLORD LICENSEE AND WHO IS ALSO A MEMBER OF A BINGO­RAFFLE LICENSEE MAY ASSIST IN THE CONDUCT, MANAGEMENT, OR OPERATION OF A GAME OF CHANCE DURING A BINGO­RAFFLE OCCASION HELD BY SUCH BINGO­RAFFLE LICENSEE AT THE LANDLORD LICENSEE'S PREMISES WHEN NOT SO EMPLOYED BY THE LANDLORD LICENSEE DURING SUCH OCCASION; AND

(b)  A LANDLORD LICENSEE MAY ASSIST AND TRAIN A BINGO­RAFFLE LICENSEE IN THE REPAIR, OPERATION, AND MAINTENANCE OF BINGO­RAFFLE EQUIPMENT, SUBJECT TO SPECIFIC CRITERIA DEFINED BY THE COMMISSION BY RULE.

(8)  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; AND

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

SECTION 14.  12­9­105 (2), Colorado Revised Statutes, is amended, and the said 12­9­105 is further amended BY THE ADDITION OF THE FOLLOWING NEW SUBSECTIONS, 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 OR HER designation and must be certified by the licensing authority COMMISSION before assuming games management duties.

(b)  NO GAMES MANAGER SHALL SERVE AS SUCH FOR MORE THAN TWO ORGANIZATIONS SIMULTANEOUSLY; EXCEPT THAT THE COMMISSION MAY ADOPT RULES DEFINING THE CIRCUMSTANCES UNDER WHICH A PERSON MAY SERVE AS GAMES MANAGER FOR MORE THAN TWO, BUT IN NO EVENT MORE THAN FIVE, ORGANIZATIONS WITHIN A SPECIFIED PERIOD OF TIME.

(c)  CERTIFICATION OF A GAMES MANAGER SHALL BE VALID FOR A PERIOD ESTABLISHED BY THE COMMISSION BY RULE. 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.

(5)  THE COMMISSION SHALL ADOPT RULES ALLOWING THE ISSUANCE OF BINGO­RAFFLE LICENSES UNDER THE FOLLOWING CIRCUMSTANCES, SUBJECT TO REASONABLE LIMITATIONS AND SAFEGUARDS:

(a)  THE CIRCUMSTANCE IN WHICH A BONA FIDE ORGANIZATION OTHERWISE QUALIFIED UNDER ARTICLE XVIII, SECTION 2 (2) OF THE COLORADO CONSTITUTION HAS CHANGED ITS NAME FOR REASONS OTHER THAN THE AVOIDANCE OF ANY RESTRICTION IMPOSED BY THIS ARTICLE;

(b)  THE CIRCUMSTANCE IN WHICH A FRATERNITY, SORORITY, OR OTHER BONA FIDE FRATERNAL ORGANIZATION SERVING STUDENTS AT INSTITUTIONS OF HIGHER EDUCATION AND OTHERWISE QUALIFIED UNDER ARTICLE XVIII, SECTION 2 (2) OF THE COLORADO CONSTITUTION SEEKS TO CONDUCT GAMES OF CHANCE FOR THE BENEFIT OF ITS MEMBERS.

SECTION 15.  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 160  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 170  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 180  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 190  12­9­106, Colorado Revised Statutes, is amended to read:

12­9­106.  Form of bingo­raffle licenses ­ display. (1)  Each bingo­raffle license shall contain a statement of the name and address of the licensee and the place where such bingo or lotto games or the drawing of the raffles is to be held. Any such license issued for an exempt organization shall provide for the inclusion of the place or places where drawings are to be held. Each bingo­raffle license issued for the conduct of any such games of chance shall be conspicuously displayed at the place where the same is to be conducted or the drawings held at all times during the conduct thereof. An exempt organization may comply with the requirements of this section by providing written notice of such a license to all employees of a participating private business or government agency holding a fund­raising drive which includes a drawing on behalf of such organization. Such notice shall state that the exempt organization shall make such license available for public inspection during reasonable business hours and shall specify where such license shall be maintained for inspection.

(2)  NOTWITHSTANDING SUBSECTION (1) OF THIS SECTION, A BINGO­RAFFLE LICENSEE CONDUCTING A PULL TAB GAME FOR THE BENEFIT OF ITS MEMBERS AND GUESTS ON PREMISES THAT ARE EITHER OWNED BY THE LICENSEE OR LEASED BY THE LICENSEE FOR PURPOSES OTHER THAN THE CONDUCT OF A BINGO OCCASION MAY DISPLAY A COPY OF ITS LICENSE ON SUCH PREMISES DURING ANY TIME THE LICENSEE IS ALSO CONDUCTING A RAFFLE OR A BINGO OCCASION AT A SEPARATE LOCATION.

SECTION 200  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 210  12­9­107 (1), (2) (a), (6), (7), (11), (12), (14), and (23), Colorado Revised Statutes, are amended to read:

12­9­107.  Persons permitted to conduct games of chance ­ premises ­ equipment ­ expenses ­ audits. (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 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 ONLY TO A BINGO­RAFFLE LICENSEE OR 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 THE MEMBER 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 THE MEMBER IN CHARGE 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.

(7)  No licensee may hold, operate, or conduct a game of bingo or lotto more often than on one hundred five FIFTY­EIGHT occasions in any calendar year.

(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 THAT 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.

(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 ONE THOUSAND FIVE hundred dollars.

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

12­9­107.2.  Approval of games. (1)  EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (2) OF THIS SECTION, NO LICENSEE SHALL OFFER, ADVERTISE, OR CONDUCT ANY GAME OF CHANCE WITHOUT PRIOR APPROVAL OF THE GAME BY THE ENFORCEMENT AUTHORITY.

(2) (a)  APPROVAL UNDER THIS SECTION SHALL NOT BE REQUIRED FOR ANY LAWFUL GAME OF CHANCE THAT WAS CONDUCTED BEFORE JULY 1, 1998.

(b)  THIS SECTION SHALL NOT BE CONSTRUED TO REQUIRE ADVANCE APPROVAL FOR EVERY VARIATION OF A BASIC GAME. THE COMMISSION MAY BY RULE DEFINE WHAT CONSTITUTES A BASIC GAME, BUT THE BASIC GAME SHALL NOT BE DEEMED TO HAVE CHANGED SOLELY ON THE BASIS OF CHANGES IN ANY ONE OF THE FOLLOWING:

(I)  THE COLOR OF GAME PIECES OR BINGO CARDS;

(II)  THE SIZE, SHAPE, OR MATERIAL USED IN GAME PIECES OR BINGO CARDS;

(III)  THE DECORATIONS OR GRAPHIC IMAGES, OTHER THAN LETTERS OR NUMBERS DETERMINING THE OUTCOME OF THE GAME, THAT ARE PRINTED ON GAME PIECES OR BINGO CARDS;

(IV)  OTHER PURELY AESTHETIC FEATURES OF GAME PIECES, BINGO CARDS, OR OTHER EQUIPMENT, SO LONG AS SUCH FEATURES DO NOT AFFECT THE METHOD OF PLAY, THE OUTCOME OF THE GAME, OR THE ODDS OF WINNING; OR

(V)  THE RELATIVE AMOUNTS PAYABLE FOR WINNING OR SCORING A PREDETERMINED NUMBER OF POINTS, SO LONG AS THE NUMBER OF PERSONS ENTITLED TO RECEIVE SUCH AMOUNTS DOES NOT CHANGE.

(3)  APPLICATIONS FOR APPROVAL SHALL BE SUBMITTED IN A FORM SATISFACTORY TO THE ENFORCEMENT AUTHORITY. AN APPLICATION SHALL BE ACTED UPON WITHIN THIRTY DAYS AFTER SUBMISSION AND, IF THE APPLICATION IS NOT ACTED UPON WITHIN SUCH THIRTY­DAY PERIOD, THE GAME SHALL BE DEEMED APPROVED.

SECTION 230  12­9­107.5 (2), (3), (4), and (5), Colorado Revised Statutes, are amended 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.

(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.

(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)  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; AND

(b)  A BINGO­RAFFLE LICENSEE MAY SELL ANY OR ALL OF ITS USED EQUIPMENT TO ANOTHER BINGO­RAFFLE LICENSEE.

(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 240  12­9­108 (1), (6), 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; AND

(D)  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

(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.

(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).

(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 250  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 260  Appropriation ­ adjustments to 1998 long bill. (1)  In addition to any other appropriation, there is hereby appropriated, to the department of revenue, for allocation to the division of racing events, 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.

(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 270  Effective date. This act shall take effect July 1, 1998.

SECTION 280  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.