Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 22-0314.01 Richard Sweetman x4333
HOUSE BILL 22-1412
House Committees Senate Committees
Business Affairs & Labor Finance
Finance Appropriations
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE CONTINUATION OF TH E DIVISION OF GAMING IN THE101
DEPARTMENT OF REVENUE , AND, IN CONNECTION THEREWITH ,102
IMPLEMENTING THE RECOMMENDAT IONS CONTAINED IN THE103
2021
SUNSET REPORT BY THE DEPARTMENT OF REGULATORY104
AGENCIES.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/
.)
Sunset Process - House Business Affairs and Labor
Committee. The bill implements the recommendations of the department
SENATE
Amended 2nd Reading
May 9, 2022
HOUSE
3rd Reading Unamended
May 6, 2022
HOUSE
Amended 2nd Reading
May 5, 2022
HOUSE SPONSORSHIP
Garnett and Van Winkle, Amabile, Roberts, Snyder, Williams
SENATE SPONSORSHIP
Cooke,
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. of regulatory agencies in its sunset review and report on the division of
gaming (division) in the department of revenue. Specifically:
! Sections 1 and 2 of the bill implement a portion of
recommendation 1 of the report by continuing the division
for 11 years, until 2033;
! Sections 1 and 3 implement a portion of recommendation
1 by continuing the regulation of sports betting by the
division for 5 years, until 2027;
! Section 4 implements recommendation 2 by allowing the
Colorado limited gaming control commission to delegate
licensing duties to the division;
! Sections 5 and 6 implement recommendation 3 by
changing the minimum age for a casino employee from 21
years of age to 18 years of age;
! Sections 7 and 8 implement recommendation 4 by
designating the department of revenue's hearings division
to conduct hearings under the "Fantasy Contests Act";
! Section 9 implements recommendation 5 by repealing the
requirement that internationally based internet sports
betting personnel submit to a fingerprint-based criminal
history record check; and
! Sections 10 through 14 implement recommendation 6 by
subjecting payments of sports bet winnings to the
"Gambling Payment Intercept Act".
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-34-104, repeal2
(23)(a)(VII); and add
(34)(a)(II) as follows:3
24-34-104. General assembly review of regulatory agencies4
and functions for repeal, continuation, or reestablishment - legislative5
declaration - repeal. (23) (a) The following agencies, functions, or both,6
are scheduled for repeal on September 1, 2022:7
(VII) The division of gaming created in part 2 of article 30 of title8
44;9
10
11
1412-2- (34) (a) The following agencies, functions, or both, are scheduled1
for repeal on September 1, 2033:2
(II) T
HE DIVISION OF GAMING CREATED IN PART 2 OF ARTICLE 303
OF TITLE 44.4
SECTION 2. In Colorado Revised Statutes, amend 44-30-206 as5
follows:6
44-30-206. Repeal of division - review of functions. Unless
7
continued by the general assembly, This part 2 is repealed, effective8
September 1, 2022, and those powers, duties, and functions of the director9
specified in this part 2 are abolished. The provisions of section 24-34-10410
(2) to (8) concerning a wind-up period, an analysis and evaluation, public11
hearings, and claims by or against an agency apply to the powers, duties,12
and functions of the director of the division SEPTEMBER 1, 2033. BEFORE13
THE REPEAL, THE DIVISION OF GAMING IS SCHEDULED FOR REVIEW IN14
ACCORDANCE WITH SECTION 24-34-104.15
16
SECTION 3. In Colorado Revised Statutes, amend 44-30-507 as17
follows:18
44-30-507. Delegation of licensing duties. The commission,
AT19
ITS DISCRETION, may delegate LICENSING DUTIES DESCRIBED IN THIS PART20
5 to the division. the authority to issue permanent and temporary support
21
and key employee licenses, but the commission shall review and approve22
the issuance of all other licenses issued pursuant to this article 30.23
SECTION 4. In Colorado Revised Statutes, 44-30-103, amend24
(14) introductory portion as follows:25
44-30-103. Definitions. As used in this article 30, unless the26
context otherwise requires:27
1412
-3- (14) "Gaming employee" means any person employed by an1
operator or retailer hosting gaming to work directly with the gaming2
portion of the operator's or retailer's business, who shall be twenty-one3
EIGHTEEN years of age or older and hold a support license. Persons4
deemed to be gaming employees shall include: but shall not be limited to:5
SECTION 5. In Colorado Revised Statutes, amend 44-30-811 as6
follows:7
44-30-811. Persons conducting limited gaming. (1) No A8
person under the age of twenty-one years EIGHTEEN YEARS OF AGE shall9
NOT:10
(a) Be employed as a gaming employee;11
(b) Conduct, or assist in conducting, any limited gaming activity;12
and no such person shall OR13
(c) Manage or handle any of the proceeds from limited gaming.14
SECTION 6. In Colorado Revised Statutes, 44-30-1610, amend15
(2) as follows:16
44-30-1610. Grounds for discipline. (2) If it appears to the17
director, based upon credible evidence as presented in a written18
complaint, that a person is operating or offering to operate a fantasy19
contest without having obtained a registration or license, the director may20
issue an order to cease and desist the activity. The director shall set forth21
in the order the statutes and rules alleged to have been violated, the facts22
alleged to have constituted the violation, and the requirement that all23
unauthorized practices immediately cease. Within ten days after service24
of the order to cease and desist pursuant to this subsection (2), the person25
may request a hearing on the question of whether acts or practices in26
violation of this part 16 have occurred. The hearing shall be conducted27
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-4- pursuant to section 24-4-105 BY THE HEARINGS DIVISION OF THE1
DEPARTMENT IN ACCORDANCE WITH SECTION 44-30-1613.2
SECTION 7. In Colorado Revised Statutes, add 44-30-1613 as3
follows:4
44-30-1613. Hearings. F
OR THE PURPOSES OF THIS PART 16,5
ADMINISTRATIVE HEARINGS SHALL BE CONDUCTED BY THE HEARINGS6
DIVISION OF THE DEPARTMENT.7
SECTION
8. In Colorado Revised Statutes, 44-30-1504, amend8
(7)(a) as follows:9
44-30-1504. Disclosure of information by corporate applicants10
- license required - investigation - criminal history record check -11
rules - definition. (7) (a) Each applicant for a sports betting license, with12
or as a supplement to the application, shall submit a set of fingerprints to13
the division;
EXCEPT THAT AN APPLICANT WHOSE PRIMARY RESIDENCE IS14
LOCATED OUTSIDE OF THE UNITED STATES IS NOT REQUIRED TO SATISFY15
THIS REQUIREMENT UNLESS THE COMMISSION DETERMINES THAT THE16
APPLICANT IS SO REQUIRED. The division shall forward the fingerprints to17
the Colorado bureau of investigation for the purpose of conducting a state18
and national fingerprint-based criminal history record check utilizing19
records of the Colorado bureau of investigation and the federal bureau of20
investigation. Only the actual costs of the record check shall be borne by21
the applicant. Nothing in this subsection (7) precludes the division from22
making further inquiries into the background of the applicant.23
SECTION
9. In Colorado Revised Statutes, 26-13-118.7, amend24
(2) as follows:25
26-13-118.7. Gambling winnings - interception - rules.26
(2) Upon receipt from the registry operator of a payment and27
1412
-5- accompanying information pursuant to section 44-33-105 (2)(b), the state1
department, THROUGH THE CASINO, SPORTS BETTING OPERATOR, INTERNET2
SPORTS BETTING OPERATOR, RACETRACK, OR OFF-TRACK BETTING3
FACILITY, shall notify the obligated parent in writing that the state intends4
to offset the parent's child support debt, child support arrearages, or child5
support costs against the parent's winnings from limited gaming,
FROM6
SPORTS BETTING, or from pari-mutuel wagering on horse or greyhound7
racing. The notice shall
MUST include information on CONCERNING the8
parent's right to object to the offset and to request an administrative9
review pursuant to the rules of the state board.10
SECTION 10. In Colorado Revised Statutes, 44-30-1503, amend11
(2)(a)(IV) as follows:12
44-30-1503. Licenses - rules. (2) (a) A license shall be revoked13
upon a finding that the licensee has:14
(IV) E
XCEPT AS REQUIRED BY SECTION 44-30-1516, intentionally15
refused to pay a prize
CASH WINNINGS in the licensee's possession to a16
person entitled to receive the prize CASH WINNINGS under this part 15.17
SECTION 11. In Colorado Revised Statutes, add 44-30-1516 as18
follows:19
44-30-1516. Duties of licensees under the gambling payment20
intercept act. B
EFORE MAKING A PAYMENT OF CASH WINNINGS , A21
LICENSEE SHALL COMPLY WITH THE REQUIREMENTS OF ARTICLE 33 OF THIS22
TITLE 44.23
SECTION
12. In Colorado Revised Statutes, 44-33-102, amend24
(1)(c) and (1)(f) as follows:25
44-33-102. Legislative declaration. (1) The general assembly26
hereby finds and declares that:27
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-6- (c) Children are adversely affected when parents divert their1
financial support to limited gaming,
SPORTS BETTING, and pari-mutuel2
wagering;3
(f) Victims of crime and all the people of the state are adversely4
affected when criminal offenders divert restitution to limited gaming,5
SPORTS BETTING, and pari-mutuel wagering;6
SECTION
13. In Colorado Revised Statutes, 44-33-103, amend7
(1) and (3) as follows:8
44-33-103. Definitions. As used in this article 33, unless the9
context otherwise requires:10
(1) "Licensee" means a licensee as defined in section 44-32-10211
(14), or an operator or retail gaming licensee under section 44-30-50112
(1)(b) or (1)(c),
AN INTERNET SPORTS BETTING OPERATOR AS DEFINED IN13
SECTION 44-30-1501 (5), OR A SPORTS BETTING OPERATOR AS DEFINED IN14
SECTION 44-30-1501 (11).15
(3) "Payment" means cash winnings from limited gaming,
FROM16
SPORTS BETTING, or from pari-mutuel wagering on horse or greyhound17
racing payable by a licensee for which the licensee is required to file form18
W-2G, or a substantially equivalent form, with the United States internal19
revenue service.20
SECTION 14. In Colorado Revised Statutes, 44-30-302, amend21
(1) introductory portion, (1)(u), and (1)(v); and add (1)(w) as follows:22
44-30-302. Commission - powers and duties - rules. (1) In23
addition to any other powers and duties set forth in this part 3, and24
notwithstanding the designation of the Colorado limited gaming control25
commission under section 44-30-201 as a type 2 transfer ENTITY, the26
commission shall nonetheless have HAS the following powers and duties:27
1412
-7- (u) To demand, at any time when business is being conducted,1
access to and inspection, examination, photocopying, and auditing of all2
papers, books, and records of applicants and licensees, on their premises3
or elsewhere as practicable and in the presence of the licensee or the4
licensee's agent, pertaining to the gross income produced by any5
establishment or activity licensed under this article 30; to require6
verification of income and all other matters affecting the enforcement of7
the policies of the commission or any provision of this article 30; and to8
impound or remove all papers, books, and records of applicants and9
licensees, without hearing, for inspection or examination; and10
(v) To prescribe voluntary alternative methods for the making,11
filing, signing, subscribing, verifying, transmitting, receiving, or storing12
of returns or other documents; AND13
(w) TO DETERMINE WHETHER PERSONS THAT ARE NOT LICENSED14
BY THE COMMISSION TO CONDUCT SPORTS BETTING OR LIMITED GAMING15
OPERATIONS ARE OFFERING TO ONE OR MORE MEMBERS OF THE PUBLIC, IN16
ANY CITY, TOWN, CITY AND COUNTY, OR COUNTY:17
(I) UNLICENSED SPORTS BETTING OPERATIONS ;18
(II) UNLICENSED INTERNET SPORTS BETTING OPERATIONS ; OR19
(III) UNLICENSED ESTABLISHMENTS THAT ALLOW THE USE OF20
EQUIPMENT OR DEVICES THAT QUALIFY AS SLOT MACHINES OR ARE USED21
TO PLAY ROULETTE OR CRAPS.22
SECTION 15. In Colorado Revised Statutes, add 44-30-837 as23
follows:24
44-30-837. Conducting gaming activities without a license.25
(1) A PERSON SHALL NOT OFFER SPORTS BETTING OR ONE OR MORE26
GAMES, AUTHORIZED AS "LIMITED GAMING", TO THE PUBLIC WITHOUT27
1412
-8- POSSESSING THE REQUIRED LICENSE FROM THE COMMISSION TO CONDUCT:1
(a) SPORTS BETTING OPERATIONS;2
(b) INTERNET SPORTS BETTING OPERATIONS ; OR 3
(c) OPERATIONS USING EQUIPMENT OR DEVICES THAT QUALIFY AS4
SLOT MACHINES OR ARE USED TO PLAY ROULETTE OR CRAPS .5
SECTION 16. In Colorado Revised Statutes, 44-30-809, amend6
(1), (3), and (4) as follows:7
44-30-809. Age of participants - penalties - applicability.8
(1) (a) It is unlawful for any person under WHO IS LESS THAN twenty-one9
years of age to10
(I) Linger in the gaming area of a casino;11
(II) Sit on a chair or be present at a gaming table, slot machine, or12
other area in which gaming is conducted; or13
(III) participate, play, be allowed to play, place wagers, or collect14
winnings, whether personally or through an agent, in or from any limited15
gaming game or slot machines.16
(b) Subsections (1)(a)(I) and (1)(a)(II) of this section shall not17
apply to a person employed by the casino in which the person is present.18
(c) Nothing in subsection (1)(a) of this section shall prevent any19
person under twenty-one years of age from passing through a casino to20
nongaming areas.21
(3) (a) It is unlawful for any licensee to permit any person who is22
less than twenty-one years of age to23
(I) Linger in the gaming area of a casino;24
(II) Sit on a chair or be present at a gaming table, slot machine, or25
other area in which gaming is conducted; or26
(III) participate, play, place wagers, or collect winnings, whether27
1412
-9- personally or through an agent, in or from any limited gaming game or1
slot machine.2
(b) Subsections (3)(a)(I) and (3)(a)(II) of this section shall not3
apply to a person employed by the casino in which the person is present.4
(c) Nothing in subsection (3)(a) of this section shall prevent any5
person under twenty-one years of age from passing through a casino to6
nongaming areas.7
(4) Any person violating any of the provisions of this section8
commits a class 2 misdemeanor and shall be punished as provided in9
section 18-1.3-501. IS SUBJECT TO THE FOLLOWING CIVIL AND CRIMINAL10
PENALTIES:11
(a) FOR A FIRST OFFENSE, A CIVIL PENALTY OF FIVE HUNDRED12
DOLLARS;13
(b) FOR A SECOND OFFENSE, A CIVIL PENALTY OF ONE THOUSAND14
DOLLARS; AND15
(c) FOR A THIRD OR SUBSEQUENT OFFENSE, THE PERSON SHALL BE16
CHARGED WITH A CLASS 2 MISDEMEANOR AND PUNISHED AS PROVIDED IN17
SECTION 18-1.3-501.18
SECTION 17. Act subject to petition - effective date.19
Sections 9, 10, 11, 12, and 13 of this act take effect July 1, 2023, and the20
remainder of this act takes effect at 12:01 a.m. on the day following the21
expiration of the ninety-day period after final adjournment of the general22
assembly; except that, if a referendum petition is filed pursuant to section23
1 (3) of article V of the state constitution against this act or an item,24
section, or part of this act within such period, then the act, item, section,25
or part will not take effect unless approved by the people at the general26
1412
-10- election to be held in November 2022 and, in such case, will take effect1
on the date of the official declaration of the vote thereon by the governor;2
except that sections 9, 10, 11, 12, and 13 take effect July 1, 2023.3
1412
-11-