TITLE: CONCERNING THE USE OF A PORTION OF THE STATE'S SHARE OF LIMITED GAMING REVENUES TO ASSIST CITIES WHERE LIMITED GAMING IS PERMITTED WITH THE COSTS OF DETOXIFICATION CENTERS.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund Cash Fund	- $ 787,784 787,784	- $ 838,612 838,612
State Expenditures Cash Fund	$ 787,784	$ 838,612
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None.
Effective Date: July 1, 1999
Appropriation Summary for FY 1999-2000: Department of Revenue —$787,784 Cash Funds
Local Government Impact: None.Provides funding to communities in Gilpin and Teller counties to operate and maintain detoxification centers.

NOTE: The bill includes technical defects, one of which relates to the percentage share of moneys to be distributed to the Detoxification Services Fund. The fiscal note assumes that the amount to be distributed to the Detoxification Services Fund is 2.5 percent of the 50 percent General Fund share of the Limited Gaming Fund. Amendments have been prepared to address the bill's technical issues.

The bill establishes the Detoxification Services Fund for compensation to provide state funding to cities where limited gaming is permitted to maintain and operate detoxification centers, and specifies the basis upon which revenues in the fund are distributed to counties. Additionally, the bill transfers a percentage of the state's share of limited gaming revenues to the Detoxification Services Fund.

The bill's language is in conflict on whether the distribution amount for the Detoxification Services Fund is 2.5 percent of the 100 percent share of the Limited Gaming Fund or 2.5 percent of the 50 percent General Fund share. The following Ttable 1 provides an illustration on the distribution amount for the Detoxification Services at 2.5 percent of the 100 percent share of the Limited Gaming Fund or 2.5 percent of the 50 percent General Fund share of the Limited Gaming Fund.

TABLE 1	FY 1999-00	FY 2000-01
Gross Limited Gaming Fund Expenses (estimate) Escrow (estimate)	$ 73,713,491 9,163,523 1,527,254	$ 77,612,149 9,019,884 1,503,314
Net Limited Gaming Fund	$ 63,022,714	$ 67,088,951
2.5 % of Limited Gaming Fund for Detoxification Services Fund	$ 1,575,567	$ 1,677,224
2.5 % of 50 % General Fund Share of Limited Gaming Fund for Detoxification Services Fund	$ 787,784	$ 838,612

Under HB 99-1104, reduced revenue to the General Fund, from the Limited Gaming Fund, can be interpreted to be either $1,575,567 or $787,784 in FY 1999-00 (the fiscal note assumes the amount to be $787,784). This amount is transferred to the Detoxification Services Fund.

The fiscal note assumes that the Department of Revenue, Limited Gaming Division, Program Costs should receive an appropriation of $787,784 for FY 1999-00 from the Detoxification Services Fund. This amount would be allocated to "distributions to cities/counties". The current Long Appropriations Act (B 98-1401), includes an appropriation of $21,750,175 for Limited Gaming program costs. The current revenue/appropriation projections for the Limited Gaming Division, Program Costs for FY 1998-99, are included in Table 2 below to illustrate where moneys from the Limited Gaming Fund are distributed.

Table 2 Limited Gaming Division Program Costs Cost Components	Current Commission Appropriation/Revenue Projections for FY 1998-99 Limited Gaming Fund
Division of Gaming	$ 7,183,664
Other State Agencies CBI State Patrol Fire Safety Local Affairs	1,940,309 611,049 1,120,438 144,570 64,252
Distribution to Cities/Counties	14,495,224
TOTAL	$ 23,619,197

Current Practice. The extent of detoxification services currently provided by law enforcement agencies in Gilpin and Teller counties is limited to temporarily holding an intoxicated individual in county jail, or transporting that individual to a detoxification center located in another community. For 1997, the Gilpin County Sheriff and the Central City Police Department spent approximately $5,500 total on intoxicated individuals. No data is available for the City of Blackhawk or Teller County.

The fiscal note assumes that the Department of Revenue, Limited Gaming Division, Program Costs should receive an appropriation of $787,784 for FY 1999-00 from the Detoxification Services Fund.

Under current practice, the Department of Revenue, Limited Gaming Division, Program Costs, receives the appropriation for "distribution to cities/counties". The bill specifies that within 30 days of transferring moneys to the Detoxification Services Fund, the State Treasurer shall make distributions to the governing bodies of those cities where limited gaming is permitted. Given the technical issues in the bill, the fiscal note assumes the Department of Revenue should receive a cash funds appropriation for $787,784 for FY 1999-00.

The Department of Revenue and the Treasury Department have noted the following technical issues in the bill which are listed below. Amendments have been prepared to address these issues.

• The percentages cited in Section 12-47.1-701 (1) (c), C.R.S. refer to 100 percent of the entire net Limited Gaming Fund revenue available for distribution. The bill's language is in conflict on whether the distribution amount for the Detoxification Services Fund is 2.5 percent of the 100 percent share of the Limited Gaming Fund or 2.5 percent of the 50 percent General Fund share.

• Section 12-47.1-1701 (3) (b) of the bill requires the governing body of the recipient cities to submit an annual statement, on December 31^st, to the State Treasurer identifying how moneys were expended during the preceding fiscal year. This date may be problematic for the cities because their fiscal year is based on the calendar year. Additionally, the distribution of limited gaming revenues are handled through the Department of Local Affairs (DOLA). It may be more appropriate to have the reports required under (3) (b) and (3) (c) submitted to DOLA, not Treasury.

• Section 12-47.1-701 (3) (d) of the bill requires the recipient cities to return all unexpended monies received, and be credited to the Detoxification Services Fund. The bill is silent on the disposition of unexpended balances in the fund.

• Current statute — Section 12-47.1-701 (4) (b) (II), C.R.S., repeals (4) (b) (I) in its entirety on September 1, 2002. The bill does not include a repealer for the remaining new sections language.