Second Regular Session Seventy-third General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 22-0882.01 Richard Sweetman x4333 HOUSE BILL 22-1402 House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT C ONCERNING MEASURES TO PROMOTE RESPONSIBLE GAMING , AND, IN101 CONNECTION THEREWITH , CREATING THE RESPONSIBLE GAMING102 GRANT PROGRAM, ESTABLISHING FUNDING MECHANISMS TO103 SUPPORT THE GRANT PROGRAM, AND MAKING AN104 APPROPRIATION.105 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) Section 1 of the bill creates the responsible gaming grant program (grant program) in the department of revenue to promote responsible HOUSE 3rd Reading Unamended May 2, 2022 HOUSE Amended 2nd Reading April 29, 2022 HOUSE SPONSORSHIP Garnett, Amabile, Benavidez, Bernett, Bird, Duran, Esgar, Jodeh, Kipp, Lindsay, Lontine, McCluskie, McCormick, McLachlan, Michaelson Jenet, Mullica, Ricks, Snyder, Sullivan, Titone, Valdez A., Valdez D., Williams, Woodrow SENATE SPONSORSHIP Hansen, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. gaming in the state. The Colorado limited gaming control commission (gaming commission), in collaboration with the behavioral health administration, is required to administer the grant program and award grants to eligible applicants from money in the responsible gaming grant program cash fund (cash fund), which is also created in the bill. An "eligible applicant" means an agency of the state government, a local government, or, with certain exceptions, a nonprofit organization. The gaming commission, in collaboration with the behavioral health administration, is required to promulgate rules to implement the grant program. At a minimum, the rules must specify the time frames for applying for grants, the form of the grant program application, and the time frames for distributing grant money. To receive a grant, an eligible applicant must submit an application that includes the following information: ! The amount of grant money requested by the eligible applicant; ! How the eligible applicant will spend the grant money to address problem gaming or increase awareness of responsible gaming; ! Information concerning any current or past projects in which the eligible applicant has participated and that addressed responsible gaming or problem gaming; and ! Any other information required by rules promulgated by the gaming commission. In reviewing applications, the gaming commission, in collaboration with the behavioral health administration, is required to consider certain criteria, and grantees may use grant money only for the purposes for which the grant money is awarded. On or before September 1, 2023, and on or before September 1 each year thereafter, each grantee must submit a report to the gaming commission concerning the use of grant money. On or before December 1, 2023, and on or before December 1 each year thereafter for the duration of the grant program, the gaming commission must submit a summarized report to the legislative committees of reference. The grant program is repealed, effective September 1, 2032. Before the repeal, the grant program is scheduled for a sunset review by the department of regulatory agencies. Section 1 also requires the division of gaming (gaming division), on and after January 1, 2023, to operate a program to exclude certain individuals from all or certain gaming activities in the state. The gaming division must operate the exclusion program in accordance with rules promulgated by the gaming commission. Section 2 requires retail gaming licensees, sports betting operators, and internet sports betting operators (licensees) to annually submit a report to the director of the gaming division, which report describes the 1402 -2- efforts of the licensee in the preceding year to promote responsible gaming via advertising and other promotional methods and the licensee's plans concerning such promotional efforts in the current state fiscal year. Section 3 requires that on December 31, 2023, and on December 31 each year thereafter, any money credited to the wagering revenue recipients hold-harmless fund and not distributed within 2 years after being credited to the hold-harmless fund be transferred, as authorized by the gaming commission, to the cash fund. Section 4 requires that, for the 2022-23 state fiscal year and each state fiscal year thereafter, $2.5 million be transferred from the state share of the limited gaming fund to the cash fund. Section 5 requires the general assembly, for the 2022-23 state fiscal year, and for each state fiscal year thereafter, to appropriate $200,000 from the lottery fund to the state lottery division (division) to be expended by the division to pay for efforts to promote responsible gaming in the state. Section 6 limits the total amount of free bets that may be deducted on and after January 1, 2023, for the purpose of calculating the net sports betting proceeds of a sports betting operator or internet sports betting operator. Under current law, the Colorado lottery commission is required to promulgate rules that include the method for selling tickets or shares and the method to be used for selling instant scratch game tickets. Section 7 removes a requirement that such rules must require all such sales to be on a cash-only basis. Section 8 concerns the sunset repeal of the grant program, and section 9 excludes the cash fund from the statutory limitation on uncommitted reserves. Section 10 removes existing language concerning individuals who are required by the gaming commission to be excluded or ejected from any licensed gaming establishment, which language is rendered redundant by the bill's new exclusion language. Sections 11 and 12 make conforming amendments. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, add with amended2 and relocated provisions part 17 to article 30 of title 44 as follows:3 PART 174 MEASURES TO PROMOTE RESPONSIBLE GAMING5 44-30-1701. Definitions. A S USED IN THIS PART 17, UNLESS THE6 CONTEXT OTHERWISE REQUIRES :7 1402-3- (1) "BEHAVIORAL HEALTH ADMINISTRATION " MEANS THE1 BEHAVIORAL HEALTH ADMINISTRATION ESTABLISHED PURSUANT TO2 SECTION 27-60-203 (5)(a).3 (2) (a) "E LIGIBLE APPLICANT" MEANS:4 (I) A N AGENCY OF THE STATE GOVERNMENT ;5 (II) A LOCAL GOVERNMENT; AND6 (III) E XCEPT AS DESCRIBED IN SUBSECTION (2)(b) OF THIS SECTION,7 A NONPROFIT ORGANIZATION.8 (b) "E LIGIBLE APPLICANT" DOES NOT INCLUDE A NONPROFIT9 ORGANIZATION OR A PUBLIC OR PRIVATE NONPROFIT FOUNDATION THAT IS :10 (I) A FFILIATED WITH A PERSON LICENSED UNDER THIS ARTICLE 30;11 OR12 (II) F UNDAMENTALLY OPPOSED TO GAMING .13 (3) "F UND" MEANS THE RESPONSIBLE GAMING GRANT PROGRAM14 CASH FUND CREATED IN SECTION 44-30-1702 (8).15 (4) "G RANT PROGRAM" MEANS THE RESPONSIBLE GAMING GRANT16 PROGRAM CREATED IN SECTION 44-30-1702 (1).17 (5) "L OCAL GOVERNMENT" MEANS A CITY, A COUNTY, OR A CITY18 AND COUNTY.19 44-30-1702. Responsible gaming grant program - creation -20 rules - application process - cash fund created - repeal. (1) T HE21 RESPONSIBLE GAMING GRANT PROGRAM IS HEREBY CREATED IN THE22 DEPARTMENT TO PROMOTE RESPONS IBLE GAMING AND ADDRESS PROBLEM23 GAMING IN THE STATE.24 (2) (a) T HE COMMISSION, IN COLLABORATION WITH THE25 BEHAVIORAL HEALTH ADMINISTRATION , SHALL ADMINISTER THE GRANT26 PROGRAM AND SHALL AWARD GRANTS AS PROVIDED IN THIS SECTION .27 1402 -4- GRANTS SHALL BE PAID OUT OF THE FUND.1 (b) T HE COMMISSION MAY SEEK , ACCEPT, AND EXPEND GIFTS,2 GRANTS, AND DONATIONS FOR THE PURPOSES OF THE GRANT PROGRAM .3 A NY MONEY RECEIVED AS GIFTS , GRANTS, AND DONATIONS BY THE4 COMMISSION SHALL BE TRANSFERRED TO THE STATE TREASURER , WHO5 SHALL CREDIT THE MONEY TO THE FUND .6 (3) T HE COMMISSION, IN COLLABORATION WITH THE BEHAVIORAL7 HEALTH ADMINISTRATION , SHALL PROMULGATE SUCH RULES AS ARE8 REQUIRED IN THIS SECTION AND SUCH ADDITIONAL RULES AS MAY BE9 NECESSARY TO IMPLEMENT THE GRANT PROGRAM . AT A MINIMUM, THE10 RULES MUST SPECIFY THE TIME FRAMES FOR APPLYING FOR GRANTS , THE11 FORM OF THE GRANT PROGRAM APPLICATION , AND THE TIME FRAMES FOR12 DISTRIBUTING GRANT MONEY .13 (4) T O RECEIVE A GRANT, AN ELIGIBLE APPLICANT MUST SUBMIT14 AN APPLICATION TO THE COMMISSION IN ACCORDANCE WITH RULES15 PROMULGATED BY THE COMMISSION . AT A MINIMUM, THE APPLICATION16 MUST INCLUDE THE FOLLOWING INFORMATION :17 (a) T HE AMOUNT OF GRANT MONEY REQUESTED BY THE ELIGIBLE18 APPLICANT;19 (b) H OW THE ELIGIBLE APPLICANT WILL SPEND THE GRANT MONEY20 TO ADDRESS PROBLEM GAMING OR INCREASE AWARENESS OF RESPONSIBLE21 GAMING;22 (c) I NFORMATION CONCERNING ANY CURRENT OR PAST PROJECTS23 IN WHICH THE ELIGIBLE APPLICANT HAS PARTICIPATED AND THAT24 ADDRESSED RESPONSIBLE GAMING OR PROBLEM GAMING ; AND25 (d) A NY OTHER INFORMATION REQUIRED BY RULES PROMULGATED26 BY THE COMMISSION PURSUANT TO SUBSECTION (3) OF THIS SECTION.27 1402 -5- (5) THE COMMISSION SHALL REVIEW THE APPLICATIONS RECEIVED1 PURSUANT TO THIS SECTION. IN AWARDING GRANTS, THE COMMISSION, IN2 COLLABORATION WITH THE BEHAVIORAL HEALTH ADMINISTRATION , SHALL3 CONSIDER THE FOLLOWING CRITERIA :4 (a) T HE CURRENT NEEDS OF THE STATE RELATING TO RESPONSIBLE5 OR PROBLEM GAMING;6 (b) T HE OVERALL IMPACT THAT A PROPOSED GRANT MAY HAVE ON7 RESPONSIBLE OR PROBLEM GAMING ;8 (c) T HE AMOUNT OF MONEY AVAILABLE IN THE FUND ;9 (d) T HE AMOUNT OF GRANT MONEY REQUESTED BY EACH ELIGIBLE10 APPLICANT;11 (e) W HETHER THE ELIGIBLE APPLICANT INTENDS TO USE GRANT12 MONEY FOR ANY OF THE FOLLOWING PURPOSES :13 (I) P REVENTION OR EDUCATION SERVICES CONCERNING GAMBLING14 ADDICTION;15 (II) C ERTIFICATION OF GAMBLING ADDICTION COUNSELORS ;16 (III) P UBLIC AWARENESS OF SERVICES CONCERNING GAMBLING17 ADDICTION;18 (IV) T REATMENT OF GAMBLING ADDICTION DISORDERS ;19 (V) R ECOVERY SERVICES; OR20 (VI) D ATA REPORTING AND DATA SYSTEMS ; AND21 (f) A NY OTHER CRITERIA ESTABLISHED BY RULES PROMULGATED22 BY THE COMMISSION PURSUANT TO SUBSECTION (3) OF THIS SECTION.23 (6) G RANTEES SHALL USE GRANT MONEY ONLY FOR THE PURPOSES24 FOR WHICH THE GRANT MONEY IS AWARDED .25 (7) (a) O N OR BEFORE SEPTEMBER 1, 2023, AND ON OR BEFORE26 S EPTEMBER 1 EACH YEAR THEREAFTER THROUGH THE YEAR FOLLOWING27 1402 -6- THE YEAR AFTER WHICH A GRANTEE FULLY EXPENDS ITS GRANT MONEY ,1 EACH GRANTEE SHALL SUBMIT A REPORT TO THE COMMISSION . AT A2 MINIMUM, THE REPORT MUST INCLUDE THE FOLLOWING INFORMATION :3 (I) A N INDICATION OF WHETHER THE GRANTEE ACHIEVED THE4 OBJECTIVES THAT THE GRANTEE DESCRIBED IN ITS APPLICATION FOR A5 GRANT;6 (II) A N EVALUATION OF THE RESULTS OF THE GRANTEE 'S7 GRANT-FUNDED PROJECT;8 (III) A DESCRIPTION OF THE IMPACT OF THE GRANTEE 'S USE OF9 GRANT MONEY ON THE COMMUNITY WITH REGARD TO RESPONSIBLE OR10 PROBLEM GAMING;11 (IV) T HE TOTAL AMOUNT OF GRANT MONEY RECEIVED AND THE12 TOTAL AMOUNT OF GRANT MONEY EXPENDED BY THE GRANTEE ; AND13 (V) A NY OTHER INFORMATION THAT IS REQUIRED BY RULES14 PROMULGATED BY THE COMMISSION PURSUANT TO SUBSECTION (3) OF THIS15 SECTION.16 (b) O N OR BEFORE DECEMBER 1, 2023, AND ON OR BEFORE17 D ECEMBER 1 EACH YEAR THEREAFTER FOR THE DURATION OF THE GRANT18 PROGRAM, THE COMMISSION SHALL SUBMIT A SUMMARIZED REPORT TO19 THE PUBLIC AND BEHAVIORAL HEALTH AND HUMAN SERVICES COMMITTEE20 OF THE HOUSE OF REPRESENTATIVES AND THE HEALTH AND HUMAN21 SERVICES COMMITTEE OF THE SENATE , OR TO ANY SUCCESSOR22 COMMITTEES, AND TO THE BEHAVIORAL HEALTH ADMINISTRATION23 CONCERNING THE GRANT PROGRAM . AT A MINIMUM, THE REPORT MUST24 INCLUDE THE FOLLOWING INFORMATION :25 (I) T HE TOTAL NUMBER OF GRANTS , AND THE TOTAL AMOUNT OF26 GRANT MONEY, AWARDED BY THE GRANT PROGRAM IN THE PRECEDING27 1402 -7- STATE FISCAL YEAR;1 (II) T HE IDENTITY OF EACH GRANTEE AND THE TOTAL AMOUNT OF2 GRANT MONEY AWARDED TO EACH GRANTEE IN THE PRECEDING STATE3 FISCAL YEAR;4 (III) T HE INFORMATION REPORTED BY EACH GRANTEE PURSUANT5 TO SUBSECTIONS (7)(a)(II) AND (7)(a)(III) OF THIS SECTION; AND6 (IV) F INANCIAL STATEMENTS CONCERNING THE STATUS OF , AND7 ACTIVITIES CONCERNING, THE FUND.8 (c) N OTWITHSTANDING SECTION 24-1-136 (11)(a)(I), THE9 REPORTING REQUIREMENT SET FORTH IN SUBSECTION (7)(b) OF THIS10 SECTION CONTINUES UNTIL THE GRANT PROGRAM REPEALS PURSUANT TO11 SUBSECTION (9) OF THIS SECTION.12 (8) (a) T HE RESPONSIBLE GAMING GRANT PROGRAM CASH FUND IS13 HEREBY CREATED IN THE STATE TREASURY . THE FUND CONSISTS OF:14 (I) M ONEY TRANSFERRED TO THE FUND FROM THE WAGERING15 REVENUE RECIPIENTS HOLD -HARMLESS FUND PURSUANT TO SECTION16 44-30-1509 (2)(c)(IV);17 (II) M ONEY TRANSFERRED TO THE FUND FROM THE LIMITED18 GAMING FUND PURSUANT TO SECTION 44-30-701 (2)(a)(VI.5);19 (III) A NY GIFTS, GRANTS, AND DONATIONS RECEIVED PURS UANT20 TO SUBSECTION (2)(b) OF THIS SECTION; AND21 (IV) A NY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY22 APPROPRIATE OR TRANSFER TO THE FUND .23 (b) T HE STATE TREASURER SHALL CREDIT ALL INTEREST AND24 INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE25 FUND TO THE FUND. ANY MONEY REMAINING IN THE FUND AT THE END OF26 A FISCAL YEAR REMAINS IN THE FUND.27 1402 -8- (c) MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE1 DEPARTMENT FOR USE BY THE COMMISSION FOR THE PURPOSES DESCRIBED2 IN THIS SECTION. ANY MONEY THAT IS AWARDED AS A GRANT TO ANY3 STATE AGENCY IS FURTHER CONTINUOUSLY APPROPRIATED TO THE STATE4 AGENCY FOR USE BY THE STATE AGENCY CONSISTENT WITH THIS SECTION .5 (d) T HE COMMISSION MAY EXPEND MONEY FROM THE FUND TO PAY6 THE DIRECT AND INDIRECT ADMINISTRATIVE EXPENSES INCURRED BY THE7 COMMISSION IN ADMINISTERING THE GRANT PROGRAM ; EXCEPT THAT THE8 TOTAL AMOUNT OF MONEY EXPENDED BY THE COMMISSION PURSUANT TO9 THIS SUBSECTION (8)(d) IN A STATE FISCAL YEAR MAY NOT EXCEED FIVE10 PERCENT OF THE TOTAL AMOUNT OF GRANT MONEY AWARDED BY THE11 COMMISSION IN THAT STATE FISCAL YEAR .12 (e) O N AUGUST 31, 2032, THE STATE TREASURER SHALL TRANSFER13 ALL UNEXPENDED AND UNENCUMBERED MONEY IN THE FUND ON THAT14 DATE TO THE GENERAL FUND.15 (9) T HIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2032.16 B EFORE THE REPEAL, THE GRANT PROGRAM IS SCHEDULED FOR REVIEW IN17 ACCORDANCE WITH SECTION 24-34-104.18 44-30-1703. Exclusion of certain individuals from19 participation in gaming activities - duties of division - mechanism for20 self-exclusion - confidential records - rules. (1) (a) O N AND AFTER21 J ANUARY 1, 2023, THE DIVISION SHALL OPERATE A PROGRAM TO :22 (I) E XCLUDE THE FOLLOWING INDIVIDUALS FROM PARTICIPATION23 IN GAMING ACTIVITIES IN THE STATE:24 (A) I NDIVIDUALS WHO HAVE VOLUNTARILY REQUESTED TO BE25 EXCLUDED PURSUANT TO SUBSECTION (2)(a) OF THIS SECTION; AND26 (B) I NDIVIDUALS WHO ARE REQUIRED BY THE COMMISSION TO BE27 1402 -9- EXCLUDED OR EJECTED FROM ANY LICENSED GAMING ESTABLISHMENT1 PURSUANT TO SUBSECTION (3) OR (4) OF THIS SECTION; AND2 (II) E XCLUDE FROM CERTAIN SPO RTS BETTING INDIVIDUALS WHO3 ARE PROHIBITED FROM PLACING WAGERS ON CERTAIN SPORTING EVENTS4 PURSUANT TO SECTION 44-30-1502.5 (b) T HE DIVISION SHALL OPERATE THE PROGRAM IN ACCORDANCE6 WITH RULES PROMULGATED BY THE COMMISSION PURSUANT TO THIS7 SECTION.8 (2) (a) T HE DIVISION SHALL INCLUDE IN THE PROGRAM DESCRIBED9 IN SUBSECTION (1) OF THIS SECTION MECHANISMS BY WHICH INDIVIDUALS10 MAY REQUEST TO BE EXCLUDED FROM PARTICIPATION IN GAMING11 ACTIVITIES IN THE STATE, AS DESCRIBED IN SUBSECTION (1)(a)(I)(A) OF12 THIS SECTION. THE MECHANISMS MUST INCLUDE THE RECEIPT OF SUCH13 REQUESTS BY THE DIVISION IN WRITTEN, ELECTRONIC, AND TELEPHONIC14 FORM.15 (b) N OTWITHSTANDING ANY OTHER PROVISION OF LAW , THE16 PERSONAL IDENTIFYING INFORMATION OF THE FOLLOWING INDIVIDUALS IS17 CONFIDENTIAL AND IS NOT SUBJECT TO THE REQUIREMENTS OF THE18 "C OLORADO OPEN RECORDS ACT", PART 2 OF ARTICLE 72 OF TITLE 24:19 (I) I NDIVIDUALS WHO REQUEST TO BE EXCLUDED FROM20 PARTICIPATION IN GAMING ACTIVITIES IN THE STATE PURSUANT TO21 SUBSECTION (2)(a) OF THIS SECTION; AND22 (II) INDIVIDUALS WHO ARE PROHIBITED FROM PLACING WAGERS ON23 CERTAIN SPORTING EVENTS PURSUANT TO SECTION 44-30-1502 AND ARE24 THEREFORE EXCLUDED FROM CERTAIN SPORTS BETTING PURSUANT TO25 SUBSECTION (1)(a)(II) OF THIS SECTION.26 (3) [Formerly 44-30-1001 (2)] The commission may SHALL by27 1402 -10- rule provide for the establishment of a list of persons who are to be1 excluded or ejected from any licensed gaming establishment, including2 any person whose presence in the establishment is determined to pose a3 threat to the interest of the state of Colorado or to licensed gaming. or4 both. In making the determination for exclusion, the commission may5 consider any of the following:6 (a) Prior conviction of a felony, a misdemeanor involving moral7 turpitude, or a violation of the gaming laws OR GAMING RULES of any8 OTHER state, the United States or any of its possessions or territories,9 including OR AN Indian tribes TRIBE;10 (b) A violation, AN attempt to violate, or A conspiracy to violate11 the provisions of this article 30 relating to:12 (I) The failure to disclose an interest in a gaming establishment for13 which the person must obtain a license or TO make disclosures to the14 commission; or15 (II) Intentional evasion of fees or taxes;16 (III) A reputation that would adversely affect public confidence17 and trust that the gaming industry is free from criminal or corruptive18 influences;19 (IV) Prior exclusion or ejection FROM A GAMING ESTABLISHMENT20 under the LAWS OR gaming rules of any other state, the United States OR21 any of its possessions or territories, or an Indian tribe; that regulates 22 gaming; OR23 (V) Career or professional offenders or associates of career or24 professional offenders and any others as defined by rule of the25 commission.26 (c) [Formerly 44-30-1001 (3)] If the name and description of any27 1402 -11- person is placed on the exclusion list OF PERSONS TO BE EXCLUDED OR1 EJECTED DESCRIBED IN THIS SUBSECTION (3), the commission shall serve2 notice of that action upon the person by at least one of the following3 means:4 (a) By personal service,5 (b) by certified mail to the last-known address of the person, or6 (c) by publication in one or more official newspapers in Teller and7 Gilpin counties IN Colorado. A person placed upon the exclusion AND8 EJECTION list may contest that action by filing a written protest with the9 commission, and the COMMISSION SHALL HEAR THE protest shall be heard 10 by the commission as a contested case.11 (d) [Formerly 44-30-1001 (4)] The commission may impose12 sanctions upon any licensee in accordance with the provisions of this13 article 30 if the licensee KNOWINGLY fails to exclude or eject from the14 licensed premises any person placed by the commission on the list of15 persons to be excluded or ejected from licensed gaming establishments16 PURSUANT TO THIS SUBSECTION (3), which sanctions may include but not 17 be limited to, suspension, revocation, limitation, modification, denial, or18 restriction of any license.19 (4) [Formerly 44-30-1002] (a) The commission, by rule, and20 notwithstanding the provisions of section 44-30-1001 SUBSECTION (3) OF21 THIS SECTION, may list persons to be excluded or ejected from any22 licensed gaming establishment effective October 1, 1991, if the23 commission finds that listing the persons on an emergency basis is24 necessary to avoid danger to the public safety and if the public confidence25 and trust would be maintained only if the persons were ARE listed on such26 an emergency basis.27 1402 -12- (b) Notwithstanding the provisions of section 24-4-103 (6), the1 listing of persons A PERSON to be excluded or ejected pursuant to this2 section SUBSECTION (4) expires one year after the adoption of the list,3 unless the provisions of section 44-30-1001 SUBSECTION (3) OF THIS4 SECTION are followed for permanent listing.5 (c) With respect to the finding of danger to public safety, the6 commission shall consider whether the persons have A PERSON HAS been7 listed on the list of persons TO BE excluded or ejected under the laws and8 gaming rules of the states of Nevada, New Jersey, OR South Dakota and 9 OR any other states; the United States OR its territories or possessions; or10 any AN Indian tribe. regulating gaming.11 (d) Any rule adopted pursuant to this section SUBSECTION (4) shall12 be followed within thirty days after the emergency listing by the13 procedures set forth in section 44-30-1001 SUBSECTION (3) OF THIS14 SECTION. A listing pursuant to this section SUBSECTION (4) must be15 vacated upon the conclusion of the rule-making proceeding initiated16 under section 44-30-1001 SUBSECTION (3) OF THIS SECTION if a17 determination is made by the commission DETERMINES that a person18 should not have been placed on the list of persons to be excluded or19 ejected.20 (5) O N OR BEFORE NOVEMBER 1, 2022, THE COMMISSION SHALL21 PROMULGATE RULES FOR THE OPERATION OF THE PROGRAM DESCRIBED IN22 SUBSECTIONS (1) AND (2) OF THIS SECTION. THE RULES MUST INCLUDE THE23 ESTABLISHMENT OF A LIST OF INDIVIDUALS TO BE EXCLUDED OR EJECTED24 FROM ALL GAMING ACTIVITIES IN THE STATE PURSUANT TO SUBSECTION25 (1)(a) OF THIS SECTION, WHICH LIST IS ACCESSIBLE TO ALL LICENSED26 GAMING OPERATORS , INCLUDING SPORTS BETTING OPERATORS AND27 1402 -13- INTERNET SPORTS BETTING OPERATORS .1 SECTION 2. In Colorado Revised Statutes, add 44-30-531 as2 follows:3 44-30-531. Responsible gaming - advertising and promotional4 efforts - reports of certain licensees required - confidential records.5 (1) O N OR BEFORE OCTOBER 1, 2023, AND ON OR BEFORE OCTOBER 16 EACH YEAR THEREAFTER, THE FOLLOWING LICENSEES SHALL SUBMIT TO7 THE DIRECTOR A REPORT THAT DESCRIBES THE EFFORTS OF THE LICENSEE8 IN THE PRECEDING STATE FISCAL YEAR TO PROMOTE RESPONSIBLE GAMING9 IN THE STATE VIA ADVERTISING AND OTHER PROMOTIONAL METHODS AND10 THE LICENSEE'S PLANS CONCERNING SUCH PROMOTIONAL EFFORTS IN THE11 CURRENT STATE FISCAL YEAR:12 (a) R ETAIL LICENSEES, AS DESCRIBED IN SECTION 44-30-501 (1)(c);13 (b) S PORTS BETTING OPERATORS , AS DEFINED IN SECTION14 44-30-1501 (11); AND15 (c) I NTERNET SPORTS BETTING OPERATORS , AS DEFINED IN SECTION16 44-30-1501 (5).17 (2) N OTWITHSTANDING ANY OTHER PROVISION OF LAW , A REPORT18 SUBMITTED TO THE DIRECTOR PURSUANT TO SUBSECTION (1) OF THIS19 SECTION IS CONFIDENTIAL AND IS NOT SUBJECT TO THE REQUIREMENTS OF20 THE "COLORADO OPEN RECORDS ACT", PART 2 OF ARTICLE 72 OF TITLE21 24.22 SECTION 3. In Colorado Revised Statutes, 44-30-1509, amend23 (2)(d) and (2)(e); and add (2)(c)(IV) as follows:24 44-30-1509. Sports betting fund - wagering revenue recipients25 hold-harmless fund - creation - rules - definitions - repeal. (2) From26 the money in the sports betting fund, to the extent the unexpended and27 1402 -14- unencumbered balance in the fund so permits, the state treasurer shall: 1 (c) Third, transfer an amount equal to six percent of the full fiscal2 year sports betting tax revenues to the wagering revenue recipients3 hold-harmless fund, referred to in this section as the "hold-harmless4 fund", which is hereby created in the state treasury, from which the state5 treasurer shall make disbursements as directed by the commission as6 follows:7 (IV) O N DECEMBER 31, 2023, AND ON DECEMBER 31 OF EACH8 YEAR THEREAFTER, THE STATE TREASURER SHALL TRANSFER ANY MONEY9 CREDITED TO THE HOLD-HARMLESS FUND AND NOT DISBURSED WITHIN10 TWO YEARS AFTER THE DATE ON WHICH THE MONEY IS CREDITED TO THE11 HOLD-HARMLESS FUND, AS AUTHORIZED BY THE COMMISSION , TO THE12 RESPONSIBLE GAMING GRANT PROGRAM CASH FUND CREATED IN SECTION13 44-30-1702 (8).14 (d) (I) Fourth, transfer one hundred thirty thousand dollars15 annually to the office of behavioral health in the department of human16 services, to be used as follows:17 (I) (A) Thirty thousand dollars for the operation of a crisis hotline18 for gamblers by Rocky Mountain Crisis Partners or its successor19 organization; and20 (II) (B) One hundred thousand dollars for prevention, education,21 treatment, and workforce development by, and including the payment of22 salaries of, counselors certified in the treatment of gambling disorders.23 (II) T HIS SUBSECTION (2)(d) IS REPEALED, EFFECTIVE DECEMBER24 31, 2023.25 (e) (I) Fifth FOURTH, transfer all remaining unexpended and26 unencumbered money in the fund to the water plan implementation cash27 1402 -15- fund created in section 37-60-123.3.1 SECTION 4. In Colorado Revised Statutes, 44-30-701, amend2 (2)(a)(VI) and (2)(a)(VII); and add (2)(a)(VI.5) as follows:3 44-30-701. Limited gaming fund - created - repeal.4 (2) (a) Except as provided in subsection (2)(b) or (2)(c) of this section,5 at the end of the 2012-13 state fiscal year and at the end of each state6 fiscal year thereafter, the state treasurer shall transfer the state share as7 follows:8 (VI) Five hundred thousand dollars to the Colorado office of film,9 television, and media operational account cash fund created in section10 24-48.5-116, for the operation of the Colorado office of film, television,11 and media, for the performance-based incentive for film production in12 Colorado as specified in section 24-48.5-116, and for the Colorado office13 of film, television, and media loan guarantee program as specified in14 section 24-48.5-115; and15 (VI.5) F OR THE 2022-23 STATE FISCAL YEAR AND EACH STATE16 FISCAL YEAR THEREAFTER , TWO MILLION FIVE HUNDRED THOUSAND17 DOLLARS TO THE RESPONSIBLE GAMING GRANT PROGRAM CASH FUND18 CREATED IN SECTION 44-30-1702 (8); AND19 (VII) Any amount of the state share that exceeds the transfers20 specified in subsections (2)(a)(I) to (2)(a)(VI) (2)(a)(VI.5) of this section21 shall be transferred to the general fund.22 SECTION 5. In Colorado Revised Statutes, 44-40-111, add (1.5)23 as follows:24 44-40-111. Lottery fund - creation - definitions. (1.5) F OR THE25 2022-23 STATE FISCAL YEAR, AND FOR EACH STATE FISCAL YEAR26 THEREAFTER, THE GENERAL ASSEMBLY SHALL APPROPRIATE TWO27 1402 -16- HUNDRED THOUSAND DOLLARS FROM THE LOTTERY FUND TO THE DIVISION1 TO COVER EXPENSES RELATING TO THE DIVISION 'S EFFORTS TO PROMOTE2 RESPONSIBLE GAMING IN THE STATE.3 SECTION 6. In Colorado Revised Statutes, 44-30-1501, amend4 (7) as follows:5 44-30-1501. Definitions - rules - repeal. Definitions applicable6 to this part 15 also appear in section 44-30-103 and article 1 of this title7 44. As used in this part 15, unless the context otherwise requires:8 (7) (a) "Net sports betting proceeds" means the total amount of all9 bets placed by players in a sports betting operation or internet sports10 betting operation, excluding free bets, less all payments to players, LESS11 FREE BETS AS DESCRIBED IN SUBSECTIONS (7)(b) AND (7)(c) OF THIS12 SECTION, and less all excise taxes paid pursuant to federal law. Payments13 to players include all payments of cash premiums, merchandise, or any14 other thing of value.15 (b) (I) U NTIL JANUARY 1, 2023, WHEN DETERMINING THE FREE16 BETS DEDUCTION USED FOR CALCULATING "NET SPORTS BETTING17 PROCEEDS" EACH MONTH, AS DESCRIBED IN SUBSECTION (7)(a) OF THIS18 SECTION, A SPORTS BETTING OPERATOR OR INTERNET SPORTS B ETTING19 OPERATOR MAY:20 (A) INCLUDE ALL FREE BETS PLACED BY PLAYERS WITH THE SPORTS21 BETTING OPERATOR OR INTERNET SPORTS BETTING OPERATOR ; AND22 (B) CARRY FORWARD ANY UNUSED FREE BET CREDITS23 ACCUMULATED ON OR BEFORE NOVEMBER 30, 2022.24 (II) T HIS SUBSECTION (7)(b) IS REPEALED, EFFECTIVE JULY 1, 2023.25 (c) (I) O N AND AFTER JANUARY 1, 2023, WHEN DETERMINING THE26 FREE BETS DEDUCTION USED FOR CALCULATING "NET SPORTS BETTING27 1402 -17- PROCEEDS" EACH MONTH, AS DESCRIBED IN SUBSECTION (7)(a) OF THIS1 SECTION, A SPORTS BETTING OPERATOR OR INTERNET SPORTS BETTING2 OPERATOR SHALL INCLUDE ONLY A PORTION OF THE TOTAL FREE BETS3 PLACED BY PLAYERS WITH THE SPORTS BETTING OPERATOR OR INTERNET4 SPORTS BETTING OPERATOR, AS FOLLOWS:5 (A) O N AND AFTER JANUARY 1, 2023, THROUGH JUNE 30, 2024, NO6 MORE THAN TWO AND ONE-HALF PERCENT OF THE TOTAL AMOUNT OF ALL7 BETS PLACED BY PLAYERS WITH THAT SPORTS BETTING OPERATOR OR8 INTERNET SPORTS BETTING OPERATOR EACH MONTH ;9 (B) O N AND AFTER JULY 1, 2024, THROUGH JUNE 30, 2025, NO10 MORE THAN TWO AND ONE -FOURTH PERCENT OF THE TOTAL AMOUNT OF11 ALL BETS PLACED BY PLAYERS WITH THAT SPORTS BETTING OPERATOR OR12 INTERNET SPORTS BETTING OPERATOR EACH MONTH ;13 (C) O N AND AFTER JULY 1, 2025, THROUGH JUNE 30, 2026, NO14 MORE THAN TWO PERCENT OF THE TOTAL AMOUNT OF ALL BETS PLACED BY15 PLAYERS WITH THAT SPORTS BETTING OPERATOR OR INTERNET SPORTS16 BETTING OPERATOR EACH MONTH ; AND17 (D) O N AND AFTER JULY 1, 2026, NO MORE THAN ONE AND18 THREE-QUARTERS PERCENT OF THE TOTAL AMOUNT OF ALL BETS PLACED19 BY PLAYERS WITH THAT SPORTS BETTING OPERATOR OR INTERNET SPORTS20 BETTING OPERATOR EACH MONTH .21 (II) FOR THE PURPOSES OF SUBSECTION (7)(c)(I) OF THIS SECTION,22 A SPORTS BETTING OPERATOR OR INTERNET SPORTS BETTING OPERATOR23 SHALL NOT:24 (A) C ARRY OVER TO THE NEXT MONTH ANY FREE BETS PLACED IN25 EXCESS OF THE DEDUCTION ALLOWED FOR ANY MONTH ; OR26 (B) C ARRY FORWARD ANY UNUSED FREE BET CREDITS27 1402 -18- ACCUMULATED BEFORE JANUARY 1, 2023.1 SECTION 7. In Colorado Revised Statutes, 44-40-109, amend2 (2) introductory portion, (2)(g), (3)(a) introductory portion, and (3)(a)(I)3 as follows:4 44-40-109. Commission - powers and duties - rules. (2) Except5 as provided in subsection (3) of this section, rules promulgated pursuant6 to subsection (1) of this section shall MUST include: but shall not be7 limited to, the following:8 (g) The method to be used in selling tickets or shares; but all sales9 shall be on a cash-only basis;10 (3) (a) The commission shall promulgate rules pursuant to11 subsection (1) of this section for the general administration of all instant12 scratch games. The rules shall MUST include: but shall not be limited to:13 (I) The method to be used in selling instant scratch game tickets;14 but all sales shall be on a cash-only basis;15 SECTION 8. In Colorado Revised Statutes, 24-34-104, add16 (33)(a)(III) as follows:17 24-34-104. General assembly review of regulatory agencies18 and functions for repeal, continuation, or reestablishment - legislative19 declaration - repeal. (33) (a) The following agencies, functions, or both,20 are scheduled for repeal on September 1, 2032:21 (III) T HE RESPONSIBLE GAMING GRANT PROGRAM CREATED IN22 SECTION 44-30-1702.23 SECTION 9. In Colorado Revised Statutes, 24-75-402, add24 (5)(vv) as follows:25 24-75-402. Cash funds - limit on uncommitted reserves -26 reduction in the amount of fees - exclusions. (5) Notwithstanding any27 1402 -19- provision of this section to the contrary, the following cash funds are1 excluded from the limitations specified in this section:2 (vv) T HE RESPONSIBLE GAMING GRANT PROGRAM CASH FUND3 CREATED IN SECTION 44-30-1702 (8).4 SECTION 10. Repeal of relocated provisions. In Colorado5 Revised Statutes, repeal part 10 of article 30 of title 44.6 SECTION 11. In Colorado Revised Statutes, 18-20-112, amend7 (1) and (2) as follows:8 18-20-112. Unlawful entry by excluded and ejected persons.9 (1) It is unlawful for any person whose name is on the list promulgated10 by the Colorado limited gaming control commission pursuant to section 11 44-30-1001 or 44-30-1002 SECTION 44-30-1703 (3) OR (4) to enter the12 licensed premises of a limited gaming licensee.13 (2) It is unlawful for any person whose name is on the list14 promulgated by the Colorado limited gaming control commission15 pursuant to section 44-30-1001 or 44-30-1002 SECTION 44-30-1703 (3) OR16 (4) to have any personal pecuniary interest, direct or indirect, in any17 limited gaming licensee, licensed premises, establishment, or business18 involved in or with limited gaming or in the shares in any corporation,19 association, or firm licensed pursuant to article 30 of title 44.20 SECTION 12. In Colorado Revised Statutes, 44-30-827, amend21 (1) and (2) as follows:22 44-30-827. Unlawful entry by excluded and ejected persons.23 (1) It is unlawful for any person whose name is on the list promulgated24 by the commission pursuant to section 44-30-1001 or 44-30-100225 SECTION 44-30-1703 (3) OR (4) to enter the licensed premises of a limited26 gaming licensee.27 1402 -20- (2) It is unlawful for any person whose name is on the list1 promulgated by the commission pursuant to section 44-30-1001 or2 44-30-1002 SECTION 44-30-1703 (3) OR (4) to have any personal3 pecuniary interest, direct or indirect, in any limited gaming licensee,4 licensed premises, establishment, or business involved in or with limited5 gaming or in the shares in any corporation, association, or firm licensed6 pursuant to this article 30.7 SECTION 13. Appropriation. For the 2022-23 state fiscal year,8 $200,000 is appropriated to the department of revenue for use by the9 lottery division. This appropriation is from the lottery fund created in10 section 44-40-111 (1), C.R.S. To implement this act, the division may use11 this appropriation for marketing and communications.12 SECTION 14. Act subject to petition - effective date.13 (1) Except as otherwise provided in subsection (2) of this section, this act14 takes effect at 12:01 a.m. on the day following the expiration of the15 ninety-day period after final adjournment of the general assembly; except16 that, if a referendum petition is filed pursuant to section 1 (3) of article V17 of the state constitution against this act or an item, section, or part of this18 act within such period, then the act, item, section, or part will not take19 effect unless approved by the people at the general election to be held in20 November 2022 and, in such case, will take effect on the date of the21 official declaration of the vote thereon by the governor.22 (2) Section 44-30-1509 (2)(e), Colorado Revised Statutes, as23 amended in section 3 of this act, takes effect January 1, 2024. 24 1402 -21-