TITLE: CONCERNING THE REGULATION OF GAMES OF CHANCE, AND, IN CONNECTION THEREWITH, CREATING A CHARITABLE GAMING BOARD IN THE DEPARTMENT OF STATE, CONTINUING LICENSING POWERS CONFERRED UPON THE SECRETARY OF STATE BY THE COLORADO CONSTITUTION, REDESIGNATING THE SECRETARY OF STATE AS THE ADMINISTRATIVE AND ENFORCEMENT AUTHORITY FOR BINGO AND OTHER GAMES OF CHANCE, AND MAKING AN APPROPRIATION.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund Cash Fund (Transfer in FY 1999-00)	Revenue from fines $1,205,108	Revenue from fines $1,210,108
State Expenditures Cash Fund	$1,210,108	$1,210,108
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None
Effective Date: Upon the Governor's signature
Appropriation Summary for FY 1999-2000: Secretary of State Cash Fund reduction of $1,205,208 and 10.0 FTE; Bingo-Raffle Fund appropriation of $1,210,108 and 10.0 FTE
Local Government Impact: None

The re-engrossed bill would extend the statutory and regulatory authority for licensing bingo and other games of chance through the Secretary of State until July 1, 2008 and retain the Secretary of State as the licensing authority rather than the newly established board. It would also create the seven member Colorado Charitable Gaming Board that would have the authority to:

• conduct a continuos study of the licensing, conduct, and operation of charitable gaming;

• advise, assist, and make recommendations to the Secretary of State concerning the regulation of charitable games.

The bill would also create the Bingo-Raffle Cash Fund for revenues from license fees. Fines collected for violations would be deposited in the state General Fund. Landlords, suppliers, or manufacturer licensees could train a licensee in the repair, operation, and maintenance of bingo-raffle equipment. Certain organizations could operate 158 games per year rather than the current maximum of 105 games and conduct more than one game at the same time at separate locations with a duplicate copy of a license. Equipment could be leased rather than owned by the licensee and the licensee would be allowed sell its used equipment to another licensee. The maximum single prize for bingo or lotto would increase from $250 to $500. Quarterly reports would be moved from the 15th of the month to the end of the month. Prize money won from a bingo game would be exempt from the requirement to report payments in excess of $300 to an individual.

The bill would require that revenues collected from the fines imposed by the Board be deposited into the General Fund. The amount of potential fine revenue has not been estimated.

The bill would transfer an estimated $1,205,108 in the Secretary of State Cash Fund to the Bingo-Raffle Cash Fund. License and administrative fees for approximately 1,804 entities would be established by the Board rather than set in statute. The fees that are established would cover the direct and indirect Board expenses and operating costs. The fee requirements are estimated to be $1,210,108 in FY 1999-00.

The bingo and raffle functions in the Secretary of State's office required an estimated 10.0 FTE and $1,205,208 in cash funds in FY 1998-99. These expenditures would be transferred to the Bingo-Raffle Cash Fund. In addition, the bill creates the Colorado Charitable Gaming Board and would allow a per diem which is limited to $700 per member. It is assumed that the seven member Board would meet 18 times per year at an annual cost of $4,900. The total cost of operating bingo is estimated to be $1,210,108 CF and 10.0 FTE.

Pursuant to Section 2-2-322, C.R.S., which requires legislative service agency review of legislative measures that include the creation or modification of any fee collected by a state agency, the following analysis is provided. The license fees set by the Colorado Charitable Gaming Board after the transfer of authority would impact approximately 1,574 bingo/raffle licensees, 62 landlord licensees, 15 manufacturer licensees, supplier licensees, supplier administration licensees, and supplier agent licensees.

This fiscal note implies that the Secretary of State Cash fund would be reduced by 10.0 FTE and $1,205,208 and the Secretary of State would require an appropriation from the Bingo-Raffle Cash Fund of 10.0 FTE and $1,210,108 in FY 1999-00 to implement this bill.