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April 21, 2022 SB 22-216
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 22-0960
Sen. Hansen; Zenzinger
Rep. Herod; McCluskie
Date:
Bill Status:
Fiscal Analyst:
April 21, 2022
Senate Appropriations
David Hansen | 303-866-2633
David.Hansen@state.co.us
Bill Topic: REALLOCATION OF LIMITED GAMING REVENUES
Summary of
Fiscal Impact:
☐ State Revenue
☒ State Expenditure
☒ State Transfer
☒ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill modifies the allocation of gaming tax revenues between the Limited Gaming
and Extended Gaming Funds. The bill increases state expenditures, includes a state
transfer, and impacts local government revenue.
Appropriation
Summary:
For FY 2022-23, the bill requires an appropriation of $2.3 million to the Department of
Higher Education.
Fiscal Note
Status:
The fiscal note reflects the introduced bill, which is recommended by the Joint Budget
Committee.
Table 1
State Fiscal Impacts Under SB 22-216
Current Year FY
2021-22
Budget Year
FY 2022-23
Out Year
FY 2023-24
Revenue - - -
Expenditures Cash Funds - $2.3 million -
Transfers General Fund ($3.0 million) - -
Cash Funds $3.0 million - -
Total Transfer $0
Other Budget Impacts TABOR Refund ($24.4 million) ($24.6 million) ($24.9 million)
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April 21, 2022 SB 22-216
Summary of Legislation
The bill reallocates gaming tax revenues between limited and extended gaming following
House Bill 20-1400 that fixed allocations in response to the steep decrease in gaming tax revenue
following the onset of the pandemic. The bill resets the base for limited gaming revenue to
$113,973,012 for FY 2021-22, equal to limited gaming revenue in FY 2018-19 adjusted upwards by
about 3 percent each subsequent year. Further, the bill establishes a mechanism to temporarily modify
the allocation between limited and extended gaming tax revenue following future years where there
is a significant decrease in gaming tax revenues.
The bill also resets the base portion of the state share of limited gaming tax revenues deposited in the
Local Government Limited Gaming Impact Fund, after transfers were suspended for two years under
House Bill 20-1399. For FY 2021-22, the base is reset at $5,689,938.
Transfers and appropriations. The bill creates the State Historical Society Strategic Initiatives Fund
and transfers $3.0 million into the fund from the General Fund. Money from the fund may be spent
by the State Historical Society for programs and activities that strengthen its financial position and its
impact on the people of the state. Lastly, the bill includes an appropriation of $2.3 million to the
Department of Higher Education for use by History Colorado.
Background
Distribution of gaming revenues. Gaming revenues are distributed based on a formula in both the
Colorado Constitution and state law. The allocation of limited gaming revenue, which was first
approved by voters in 1990, is distributed as follows:
50 percent to the General Fund, which is further distributed to several programs specified in
statute;
10 percent to gaming cities;
12 percent to gaming counties; and
28 percent to the State Historical Fund, of which 20 percent is allocated to gaming cities and 80
percent is allocated to History Colorado.
Amendments 50 and 77, approved by voters in 2008 and 2020 respectively, extended allowable hours,
bets, and games in Colorado casinos. Revenue generated from extended gaming is exempt from
TABOR. Following the adoption of Amendment 50, legislation clarified in statute how the division
of funds between original limited gaming and extended gaming would be calculated. Based on
statute, funds distributed to limited gaming recipients are generally capped at 3.0 percent growth each
year. Revenue from extended gaming is distributed as follows:
78 percent to community colleges; and
22 percent to gaming cities and counties.
Table 2 shows the forecasted allocation of gaming tax revenues under current law based on the
March 2022 Legislative Council Staff Forecast.
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April 21, 2022 SB 22-216
Table 2
Gaming Tax Revenue
Estimate
FY 2021-22
Estimate
FY 2022-23
Estimate
FY 2023-24
Limited Gaming (Subject to TABOR) $138.3 million $140.0 million $141.8 million
Extended Gaming (TABOR Exempt) $22.6 million $22.9 million $23.2 million
Total $161.0 million $162.9 million $165.0 million
Source: Legislative Council Staff March 2022 Forecast.
House Bill 20-1400. Following the steep decline in gaming tax revenues in 2020 due to casino closures
and the pandemic-induced recession, House Bill 20-1400 was enacted. The bill temporarily modified
how gaming revenue was allocated between limited gaming recipients and extended gaming
recipients beginning in FY 2020-21 and continuing until gaming revenues returned to FY 2018-19
levels, a level that is forecasted to be exceeded in the current fiscal year. The bill fixed the allocation
based on the relative percentages in which each group of recipients shared in the decrease in
distributions that occurred between FY 2018-19 and FY 2019-20.
House Bill 20-1399. The bill suspended the annual transfers from the Limited Gaming Fund in
FY 2019-20 and FY 2020-21 to the following funds:
Colorado Travel and Tourism Promotion Fund;
Advanced Industries Acceleration Cash Fund;
Local Government Limited Gaming Impact Fund;
Innovative Higher Education Research Fund;
Creative Industries Cash Fund; and
Colorado Office of Film, Television, and Media Operational Account Cash Fund.
History Colorado State Historical Fund. The State Historical Fund provides grants for preservation
projects across the state including planning, preservation, restoration, rehabilitation, archaeological
assessments and research, designation of historic places, and training and education programs. The
fund was created in 2008 to hold money associated with construction of the new state history museum.
The fund receives a share of limited gaming revenue pursuant to the state constitution and detailed
above.
State Transfers
The bill includes a one-time transfer of $3.0 million from the General Fund to the State Historical
Society Strategic Initiatives Fund in FY 2021-22.
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April 21, 2022 SB 22-216
State Expenditures
The bill increases state expenditures in History Colorado, and modifies the allocation of gaming
revenues, as discussed below.
History Colorado. The bill increases state expenditures in History Colorado in the Department of
Higher Education by $2.3 million in FY 2022-23 from the State Historical Society Strategic Initiatives
Fund and the State Historical Fund. Expenditures are shown in Table 2 and detailed below.
Table 3
Expenditures Under SB 22-216
FY 2022-23 FY 2023-24
Department of Higher Education
History Colorado
Financial programs and activities $1,500,000 -
Central administration $150,000 -
Collections and curatorial services $160,000 -
History Colorado Center $70,000 -
Statewide programming $345,000 -
Office of Archaeology and Historic Preservation $75,000
Total Cost $2,300,000 -
Gaming revenue allocations. The bill modifies how gaming revenue is allocated between limited
gaming recipients and extended gaming recipients, beginning in FY 2021-22. As a result, $24.2 million
will shift from limited gaming recipients to extended gaming recipients, but total gaming revenue
collected and expended will not change as a result of the bill. Estimated changes in distributions from
current law are shown below in Table 3 and are based on the Legislative Council Staff March 2022
forecast.
Table 4
Changes to Gaming Distribution Under SB 22-216
FY 2021-22 FY 2022-23 FY 2023-24
Distribution Type
Limited Gaming ($24.2 million) ($24.8 million) ($25.0 million)
State Historical Fund ($6.3 million) ($6.5 million) ($6.6 million)
Gaming Counties ($2.7 million) ($2.8 million) ($2.8 million)
Gaming Cities ($2.3 million) ($2.3 million) ($2.3 million)
General Fund ($3.8 million) ($4.3 million) ($4.5 million)
Economic Development Programs
1
($7.1 million) ($6.9 million) ($6.8 million)
Administrative Expenses ($1.9 million) ($2.0 million) ($1.9 million)
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April 21, 2022 SB 22-216
Table 4
Changes to Gaming Distribution Under SB 22-216 (Cont.)
FY 2021-22 FY 2022-23 FY 2023-24
Extended Gaming $24.2 million $24.8 million $25.0 million
Community Colleges $17.4 million $17.8 million $18.1 million
Gaming Counties and Cities $4.9 million $5.0 million $5.1 million
Administrative Expenses $1.9 million $2.0 million $1.9 million
Net Change in Gaming Distributions $0 $0 $0
1
Includes the Colorado Travel and Tourism Promotion Fund, Advanced Industries Acceleration Cash Fund, Local
Government Limited Gaming Impact Fund, Innovative Higher Education Research Fund, Creative Industries Fund,
Colorado Office of Film, Television, and Media Operational Account Fund.
Totals may not add due to rounding.
Other Budget Impacts
TABOR refunds. The bill is expected to decrease the amount of state revenue required to be refunded
to taxpayers by $24.4 million for FY 2021-22, $24.6 million for FY 2022-23, and $24.9 million for
FY 2023-24. This estimate assumes the March 2022 LCS revenue forecast. A forecast of state revenue
subject to TABOR is not available beyond FY 2023-24. Because TABOR refunds are paid from the
General Fund, decreased cash fund revenue subject to TABOR will increase the amount of General
Fund available to spend or save.
Local Government
Changing the distribution of gaming revenues impacts the allocation to the gaming communities, as
shown in Table 4 beginning in FY 2021-22.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
In FY 2022-23, the bill includes the following appropriations to the Department of Higher Education
for use by History Colorado:
$1.5 million from the State Historical Society Strategic Initiatives Fund; and
$800,000 from the State Historical Fund.
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April 21, 2022 SB 22-216
State and Local Government Contacts
Counties Higher Education History Colorado
Information Technology Local Affairs Municipalities
OEDIT Personnel Revenue
Treasury
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit: leg.colorado.gov/fiscalnotes.