Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues Cash Fund	$1,205,108	$1,205,108
State Expenditures Cash Fund	$1,205,108	$1,205,108
FTE Position Change	10.0 FTE	10.0 FTE
Other State Impact: None
Effective Date: September 30, 1999 unless a petition is filed
Appropriation Summary for FY 1999-2000: Secretary of State - $1,205,108 CF and 10.0 FTE (Included in SB99-215 Long Bill)
Local Government Impact: None

The bill would reenact provisions that would regulate bingo, raffles, and pull tabs that were allowed to sunset July 1, 1998, but are still enforced under rule and regulation for one year as the program winds down to end on July 1, 1999. Even though the law regulating bingo has already expired, Senate Bill 99-215, the Long Appropriations Bill, contains continuation funding to regulate bingo/raffle. This bill would provide continuation authority for the funding for FY 1999-00, which is considered an increase in expenditures. Therefore, the bill is assessed as having a state fiscal impact. New provisions were added concerning fraud, the prosecution of violators, immunity for volunteers, charitable television broadcasting station licenses, unfair trade practices, bingo-raffle supplier reporting requirements, and the telecast of games of chance. The licensing of manufacturers and suppliers would not be reenacted. Charitable television broadcasting stations would be licensed, regulated as other bingo licensees, and allowed to conduct bingo games. Suppliers would be required to file quarterly reports and bingo-raffle licensees would file annually.

Currently, the regulation of bingo/raffle is funded from license fees assessed bingo/raffle manufacturers, suppliers, manufacturer agents, supplier agents, and charitable organizations conducting bingo/raffle games. The Secretary of State also imposes an administrative fee on charitable organizations of 0.3 percent of gross receipts and on manufacturers and suppliers of 1.1 percent . There are 15 manufacturers, 26 manufacturer’s agents, 21 suppliers, 67 supplier agents, 52 landlords, and 1,505 bingo/raffle licensees that are licensed in Colorado. The table below compares the fees assessed each group and an estimate of the approximate revenue generated by each group based on the $1,205,108 program cost.

COMPARISON OF CURRENT AND PROPOSED FEES IN SB99-213
Revenue Source	Current Fees	Current Revenues	Revenue Source	Proposed Fees	Proposed Revenues
Charitable License	$62.5	$94,063	Charitable/TV License	$75.0	$112,875
Sup/Mfgr Administrative	1.1%	174,772	Supplier Only Admin	Assessed on supplies purchased	1,088,333
Sup/Mfgr License	$525.0	26,965	Sup/Mfgr License	$0.0	0
Charitable Admin	0.3%	859,650	Charitable Admin	0.0%	0
Sup/Mfgr Agent License	$125.0	14,606	Sup/Mfgr Agent License	$0.0	0
Annual LandlordLicense	$525.0	35,054	5 Year LandlordLicense	$75.0	3,900
TOTAL		$1,205,108	TOTAL		$1,205,108

The bill would eliminate licensing fees for bingo/raffle manufacturers, suppliers, and their agents and reduce revenues to the Secretary of State Cash Fund. It would also change the $525 landlord license from an annual license to a $75 five year license. However, the bill would authorize the licensing of charitable television broadcast bingo which may increase the number of bingo/raffle licensees authorized to conduct bingo/raffle. The impact to bingo/raffle license is not known, but it is estimated that any change would be minimal. The bill would allow the Secretary of State to adjust all bingo/raffle fees to equal the costs of administration. If the revenues change significantly, authorized fees would be adjusted to equal the costs of regulating bingo/raffle.

The licensing of manufacturers, suppliers, and their agents is a minimal cost to the Secretary of State. The bill would no longer require the licensing of bingo/raffle manufacturers, suppliers, and their agents. Not licensing manufacturers and suppliers is estimated to have a minimal reduction in the workload to the Secretary of State’s office. However, the bill would add television broadcast bingo licensees to the entities authorized to conduct bingo/raffle games and be licensed and regulated by the Secretary of State. It is estimated that adding television broadcast bingo licensees would increase the workload to the Secretary of State by a minimum amount. The changes in the licensing requirements created by this bill are estimated to have a minimal impact on the Secretary of State’s workload and would not necessitate a change from the current expenditures required to regulate bingo by the Secretary of State’s office.

The bingo and raffle functions in the Secretary of State's office currently require an estimated 10.0 FTE and $1,205,108 in cash funds in FY 1998-99. It is estimated that the continued regulation of bingo/raffle would require $1,205,108 Cash Funds and 10.0 FTE in FY 1999-00. The bill also creates an advisory board which would serve without compensation. No additional expenses would be required for the advisory board.

The provisions in the bill concerning fraud, the prosecution of violators, and unfair trade practices are estimated to be minimal from the current practices and would not significantly increase the workloads for the Department of Law and the Judicial Branch.

This fiscal note implies the Secretary of State would require 10.0 FTE and $1,205,108 in Secretary of State Cash Funds in FY 1999-00 to implement this bill (Included in SB99-215 Long Bill).

The current bingo/raffle regulation program is due to end its wind down period on July 1, 1999. The effective date of the bill would be after the current program expires and there would be a two month lapse where the Secretary of State could license bingo/raffle but not regulate or enforce bingo/raffle.