Colorado Legislative Council Staff



Drafting Number:

Prime Sponsor(s):

LLS 99-0274

Sen. Chlouber

Rep. Young


Bill Status:

Fiscal Analyst:

January 8, 1999

Senate Agr.

Harry Zeid (303-866-4753)



Fiscal Impact Summary

FY 1999/2000

FY 2000/2001

State Revenues

General Fund



State Expenditures

General Fund



FTE Position Change

0.0 FTE

0.0 FTE

Other State Impact: TABOR Impact

Effective Date: Upon signature of the Governor

Appropriation Summary for FY 1999-2000: None

Local Government Impact: None

Summary of Legislation

            This bill makes several statutory changes affecting the Division of Racing Events in the Department of Revenue. Specifically, the bill:


               allows the division director to hold outside employment, subject to conflict of interest prohibitions;

               eliminates the current requirement for "random" testing of racing animals;

               allows non-racing events to be held at a racetrack upon prior notice to the Colorado Racing Commission;

               provides for summary suspension of racing licenses in animal abuse situations;

               eliminates the advisory committee overseeing distributions from the Horse Breeders' and Owners' Awards and Supplemental Purse Fund; and

               changes the payment schedule for taxes on racing proceeds from daily to monthly.

            The bill does not affect state expenditures, however, the delay in the tax payment schedule will result in lost interest earnings to the General Fund. Therefore, the bill is assessed as having state fiscal impact. The bill will become effective upon signature of the Governor.

State Revenues

            Under current law, taxes on racing proceeds are paid to the Department of Revenue on the business day following the day of each performance. The bill would change the payment schedule from daily to the tenth business day of the month immediately following the month in which each performance took place. This delay in the payment schedule will result in lost General Fund interest earnings on the daily deposits.

            The tax collected from horse and greyhound races was $7.1 million in FY 1997-98. Based on the average delay in the deposit of racing receipts and an average interest rate on state investments of 5.5 percent, it is estimated that General Fund interest earnings will decrease by $26,736 annually as a result of the bill.

State Expenditures

            State expenditures will be unaffected by the bill.

State Appropriations

            The fiscal note implies that no new spending authority or appropriations are required to implement the provisions of the bill.

Departments Contacted