Colorado 2023 2023 Regular Session

Colorado House Bill HB1041 Amended / Bill

Filed 05/04/2023

                    First Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 23-0250.01 Richard Sweetman x4333
HOUSE BILL 23-1041
House Committees Senate Committees
Business Affairs & Labor Business, Labor, & Technology
Finance Finance
Appropriations Appropriations
A BILL FOR AN ACT
C
ONCERNING A PROHIBITION AG AINST WAGERING ON RACES OF101
GREYHOUNDS THAT ARE SIMULCAST FROM OUT -OF-STATE102
TRACKS AT WHICH THE RACES ARE CONDUCTED .103
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
.)
Current law prohibits racing of greyhounds in Colorado; however,
it is legal to wager on greyhound races that are conducted at out-of-state
race tracks and simulcast for viewing in off-track betting venues in
Colorado. The bill makes it unlawful in Colorado to wager on any race of
greyhounds that is conducted at, and simulcast from, a track that is
SENATE
2nd Reading Unamended
May 4, 2023
HOUSE
3rd Reading Unamended
April 15, 2023
HOUSE
Amended 2nd Reading
April 14, 2023
HOUSE SPONSORSHIP
Duran and Lynch, Armagost, Bacon, Bird, Boesenecker, Brown, deGruy Kennedy,
Dickson, English, Epps, Frizell, Froelich, Gonzales-Gutierrez, Hamrick, Jodeh, Kipp,
Lindsay, Lindstedt, Mabrey, Martinez, McCormick, Michaelson Jenet, Parenti, Sirota, Soper,
Valdez, Velasco, Weinberg, Willford, Young
SENATE SPONSORSHIP
Ginal and Simpson, 
Shading denotes HOUSE amendment.  Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. outside of Colorado.
The bill also makes conforming amendments.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 44-32-102, amend2
(15), (18), and (22); and repeal (5) as follows:3
44-32-102.  Definitions - rules. As used in this article 32, unless4
the context otherwise requires:5
(5)  "Cross simulcasting" means the receipt of a simulcast race of6
greyhounds at an out-of-state host track by a simulcast facility that is7
located on the premises of a track that is licensed to race horses.8
(15)  "Out-of-state host track" means a track, located within a state9
other than Colorado, that is licensed or otherwise properly authorized10
under the laws of the state to conduct live races of horses or greyhounds11
and to broadcast the races as simulcast races and that broadcasts the12
simulcast races to an in-state simulcast facility.13
(18)  "Pari-mutuel wagering" means a form of wagering on the14
outcome of horse and greyhound races in which those who wager15
purchase tickets of various denominations on one or more horses or16
greyhounds from one or more pools and all like wagers from each race17
are pooled and the winning ticket holders are paid prizes from the pool in18
amounts proportional to the total receipts in the pool minus deductions19
authorized by statute.20
(22)  "Simulcast race" means a live, audio-visual broadcast 
THAT21
IS:22
(a)  Transmitted simultaneously with either:23
(I)  The performance of a live race of horses or greyhounds
 by an24
out-of-state host track; or25
1041-2- (II)  The performance of a live race of horses by an in-state host1
track; 
AND2
(b)  that is
 Received by a simulcast facility.3
SECTION 2. In Colorado Revised Statutes, 44-32-202, amend4
(4)(a)(I) as follows:5
44-32-202.  Director - qualifications - powers and duties - rules.6
(4)  If so directed by the commission, the director may, on behalf of this7
state:8
(a)  Negotiate, enter into, and participate in one or more interstate9
compacts that enable party states to act jointly and cooperatively to create10
more uniform, effective, and efficient practices, programs, and rules11
relating to:12
(I)  Live horse and greyhound racing; and13
SECTION 3. In Colorado Revised Statutes, amend 44-32-514 as14
follows:15
44-32-514.  Payments of winnings - intercept. Before making a16
payment of cash winnings from pari-mutuel wagering on horse or17
greyhound racing for which the licensee is required to file form W-2G,18
or a substantially equivalent form, with the United States internal revenue19
service, the licensee shall comply with the requirements of article 33 of20
this title 44.21
SECTION 4. In Colorado Revised Statutes, 44-32-602, amend22
(1) and (5); and repeal (2) and (4)(a) as follows:23
44-32-602.  Simulcast facilities and simulcast races - unlawful24
act - repeal. (1)  It is unlawful for any person to accept or place wagers25
on any simulcast race within the state of Colorado except under the26
provisions of this article 32. It is lawful to conduct pari-mutuel wagering27
1041
-3- on simulcast races of horses or greyhounds that are received by an in-state1
simulcast facility authorized and operated pursuant to this article 32.2
(2)  Cross simulcasting between an in-state host track or an3
out-of-state host track and an in-state simulcast facility, or between an4
in-state host track and an out-of-state simulcast facility, is permissible.5
(4) (a) (I)  An in-state simulcast facility may, subject to the6
commission's approval, receive the broadcast signal of greyhounds from7
an out-of-state host track and conduct pari-mutuel wagering on the signal8
through an in-state simulcast facility located on the premises of a class B9
track that has conducted, or is scheduled to conduct during the next10
twelve months, a live race meet of horses of at least the duration required11
for a class B track.12
(II)  The specified portions of the gross receipts from pari-mutuel13
wagers placed at an in-state simulcast facility on simulcast greyhound14
races being held on out-of-state host tracks from signals received through15
a class B track shall be distributed in accordance with section 44-32-70116
(2).17
(5)  An in-state simulcast facility having a written simulcast racing18
agreement with an in-state or out-of-state host track pursuant to section19
44-32-503 (2) may receive simulcast races, as specified in subsections (2)20
to (4) SUBSECTION (4)(b) of this section, on any day, including a day not21
within the race meet of the in-state simulcast facility that is also a track22
and a day on which no live race is conducted within the race meet of the23
in-state simulcast facility that is also a track.24
SECTION 5. In Colorado Revised Statutes, amend 44-32-604 as25
follows:26
44-32-604.  Greyhound racing prohibited. (1)  No live27
1041
-4- greyhound racing involving the betting or wagering on the speed or1
ability of the greyhounds racing shall be conducted in Colorado. The2
commission shall not accept or approve an application or request for race3
dates for live greyhound racing in Colorado.4
(2)  N
OTWITHSTANDING THE PROVISIONS OF THIS ARTICLE 32 OR5
ANY OTHER GENERAL OR SPECIFIC LAW TO THE CONTRARY , IT IS UNLAWFUL6
IN COLORADO TO WAGER ON ANY RACE OF GREYHOUNDS THAT IS7
CONDUCTED AT, AND SIMULCAST FROM, A TRACK THAT IS OUTSIDE OF8
C
OLORADO.9
SECTION 6. In Colorado Revised Statutes, 44-32-701, amend10
(2)(a), (2)(b), and (2)(c)(I); and repeal (1) as follows:11
44-32-701.  License fees and Colorado-bred horse race12
requirement - rules - repeal. (1)  Subject to section 44-32-702 (1), for
13
the privilege of conducting racing under a license issued under and of14
operating an in-state simulcast facility pursuant to this article 32, a15
licensee for the racing of greyhounds and an operator of an in-state16
simulcast facility that receives simulcast races of greyhounds shall pay to17
the department through the division four and one-half percent of the gross18
receipts derived from pari-mutuel wagering during any such race meet or19
placed on the simulcast races that are received through a live greyhound20
track.21
(2) (a) (I)  For the privilege of conducting racing under a license22
issued under, and of operating an in-state simulcast facility pursuant to,23
this article 32, a licensee for the racing of horses and an operator of an24
in-state simulcast facility that receives simulcast races of horses or25
greyhounds pursuant to section 44-32-602 (4)(a)(I) 44-32-602 (4)(b) shall26
pay to the department through the division three-fourths of one percent27
1041
-5- of the gross receipts of the pari-mutuel wagering at any race meet or1
placed on the simulcast races; except that a licensee for the racing of2
horses at a class B track race meet shall pay to the department through the3
division three-fourths of one percent of the gross receipts of the4
pari-mutuel wagering at any such race meet.5
(I.5) (A) NOTWITHSTANDING SECTION 44-32-706 (2), ON JANUARY6
1, 2025, OF THE MONEY THAT IS PAID TO THE DEPARTMENT BY LICENSEES7
PURSUANT TO SUBSECTION (2)(a)(I) OF THIS SECTION, THE DEPARTMENT8
SHALL TRANSFER TWENTY-FIVE THOUSAND DOLLARS TO THE FUND9
CREATED IN SUBSECTION (2)(a)(I.5)(B) OF THIS SECTION, AND ON JANUARY10
1, 2026, THE DEPARTMENT SHALL TRANSFER FIFTY THOUSAND DOLLARS TO11
THE FUND, IN ACCORDANCE WITH RULES PROMULGATED BY THE12
COMMISSION.13
(B) THE GREYHOUND WELFARE AND ADOPTION FUND, REFERRED14
TO IN THIS SUBSECTION (2)(a)(I.5) AS THE "FUND", IS HEREBY CREATED IN15
THE STATE TREASURY. THE FUND CONSISTS OF MONEY CREDITED TO THE16
FUND PURSUANT TO SUBSECTION (2)(a)(I.5)(A) OF THIS SECTION AND ANY17
OTHER MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR18
TRANSFER TO THE FUND. THE STATE TREASURER SHALL CREDIT ALL19
INTEREST AND INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF20
MONEY IN THE FUND TO THE FUND. ANY UNEXPENDED AND21
UNENCUMBERED MONEY REMAINING IN THE FUND AT THE END OF A FISCAL22
YEAR REMAINS IN THE FUND. SUBJECT TO ANNUAL APPROPRIATION BY THE23
GENERAL ASSEMBLY, THE DEPARTMENT MAY MAKE DISTRIBUTIONS OF24
MONEY FROM THE FUND TO GREYHOUND WELFARE AND ADOPTION25
ORGANIZATIONS IN ACCORDANCE WITH RULES OF THE COMMISSION. THE26
COMMISSION SHALL NOT CONDITION DISTRIBUTIONS FROM THE ACCOUNT27
1041
-6- ON WHETHER A GREYHOUNDS WELFARE AND ADOPTION ORGANIZATION1
SUPPORTS OR OPPOSES GREYHOUND RACING. THE STATE TREASURER2
SHALL TRANSFER ALL UNEXPENDED AND UNENCUMBERED MONEY IN THE3
FUND ON JULY 31, 2026, TO THE GENERAL FUND.4
(C)  THIS SUBSECTION (2)(a)(I.5) IS REPEALED, EFFECTIVE AUGUST5
1,
 2026.6
(II) (A)  Except as otherwise provided in subsection (2)(a)(II)(B)
7
of this section, In addition to the amount paid to the department through8
the division in subsection (2)(a)(I) of this section, a licensee for the racing9
of horses and an operator of an in-state simulcast facility that receives10
simulcast races of horses or greyhounds pursuant to section 44-32-60211
(4)(a)(I) 44-32-602 (4)(b) shall pay to Colorado state university for12
allocation to its school of veterinary medicine one-fourth of one percent13
of the gross receipts of all pari-mutuel wagering, except on win, place, or14
show, at the horse race meet or placed on the simulcast races, to be used15
for racing-related equine research. To receive research funding under this16
subsection (2)(a)(II), an institution or individual must describe and report17
to the commission on all projects upon completion.18
(B)  In the case of pari-mutuel wagers on greyhound simulcast19
signals received by a class B track, in lieu of the amounts otherwise20
payable to Colorado state university pursuant to subsection (2)(a)(II)(A)21
of this section, the licensee shall instead pay an equivalent amount into a22
trust account for distribution in accordance with rules of the commission23
under section 44-32-702 (1)(e)(I).24
(b)  In addition to any money to be paid pursuant to subsection25
(2)(a) of this section, a licensee for the racing of horses and an operator26
of an in-state simulcast facility that receives simulcast races of horses or27
1041
-7- greyhounds pursuant to section 44-32-602 (4)(a)(I) 44-32-602 (4)(b) shall1
pay to a trust account one-half of one percent of the gross receipts of2
pari-mutuel wagering on win, place, and show and one and one-half3
percent of the gross receipts from all other pari-mutuel wagering at any4
such race meet or placed on the simulcast races for the horse breeders'5
and owners' awards and supplemental purse fund established in section6
44-32-705.7
(c) (I)  The operator of a simulcast facility that receives simulcast8
races of horses or greyhounds pursuant to section 44-32-602 (4)(a)(I)9
44-32-602 (4)(b) shall retain five percent of the gross receipts of10
pari-mutuel wagering placed on the simulcast races at that facility, to be11
used to cover the particular expenses incurred in operating a simulcast12
facility.13
SECTION 7. In Colorado Revised Statutes, 44-32-702, amend14
(1)(b)(I), (1)(e)(I), (1)(h)(III), and (4) introductory portion; and repeal15
(1)(h)(II) and (1)(i) as follows:16
44-32-702.  Unlawful to wager - exception - excess - taxes -17
special provisions for simulcast races - rules. (1) (b) (I)  Except as18
otherwise provided in subsection (4) of this section, it is unlawful for a19
racing or simulcast facility licensee for the racing of greyhounds or horses20
to take more than the percentage of the gross receipts authorized by the21
commission pursuant to subsection (1)(b)(II) of this section of any22
pari-mutuel wagering on the races or simulcast races.23
(e) (I)  Each operator of an in-state simulcast facility that receives24
simulcast races of horses from either an in-state host track or an25
out-of-state host track or of greyhounds from an out-of-state host track,26
shall pay to purse funds for the racing of horses and to the in-state or27
1041
-8- out-of-state tracks and simulcast facilities described in the simulcast1
agreement filed with the commission, the percentages of the gross2
pari-mutuel wagering on the simulcast races, after deduction of a signal3
fee required by an out-of-state host track or an in-state host track, paid4
during the current year or a previous year, and the applicable amounts5
specified in subsection (2)(b) of this section and in sections 44-32-701 (1)6
and (2) 44-32-701 (2) and 44-32-705 (2), as specified in the simulcast7
agreement. In the case of pari-mutuel wagers on greyhound simulcast8
signals received by a class B track from an out-of-state host track, the9
operator shall deposit the amounts payable pursuant to section 44-32-70110
(2)(a)(II)(B) into a trust account for distribution, in accordance with rules11
of the commission, to greyhound welfare and adoption organizations.12
(h) (II)  The breakage at any greyhound race meet shall be retained13
by the licensee under whose license the greyhound race meet was held.14
(III)  Except as otherwise provided in subsection (1)(h)(IV) or (4)15
of this section, the breakage on any simulcast race of horses or16
greyhounds received by an in-state simulcast facility shall be retained by17
the operator of the in-state simulcast facility.18
(i)  An operator of an in-state simulcast facility shall retain the19
proceeds derived from all unclaimed pari-mutuel tickets for each20
simulcast race of greyhounds received for a race held at an out-of-state21
host track and, after a period of one year following the simulcast race, the22
proceeds revert and belong to the operator.23
(4)  Pursuant to a valid simulcasting agreement, an operator of an24
in-state simulcast facility that receives simulcast signals of horse or25
greyhound races held in another state may:26
SECTION 8. In Colorado Revised Statutes, 44-32-704, amend27
1041
-9- (1) and (2)(a) as follows:1
44-32-704.  Limitations on pari-mutuel wagering. (1)  Wagers2
on pari-mutuel horse or greyhound races conducted in or out of this state3
may only be placed ONLY upon the premises of a racetrack or an in-state4
simulcast facility licensed by the commission or the out-of-state racetrack5
or simulcast facility as authorized by the commission. No wagering or6
betting on the results of any of the races licensed under this article 327
shall be conducted outside a licensed or approved racetrack or simulcast8
facility.9
(2) (a)  No person or agent or employee of any person shall place,10
receive, offer, or agree to place or receive a wager on a pari-mutuel horse11
or greyhound race, conducted in or broadcast in this state, by messenger,12
telephone, telegraph, facsimile machine, or other electronic device;13
except that this subsection (2) shall not apply to associations or simulcast14
facilities licensed by the commission. Nothing in this section shall be15
construed to prohibit gambling as provided in section 18-10-102 (2)(d).16
SECTION 9. In Colorado Revised Statutes, 26-13-118.7, amend17
as it will become effective July 1, 2023, (2) as follows:18
26-13-118.7.  Gambling winnings - interception - rules.19
(2)  Upon receipt from the registry operator of a payment and20
accompanying information pursuant to section 44-33-105 (2)(b), the state21
department, through the casino, sports betting operator, internet sports22
betting operator, racetrack, or off-track betting facility, shall notify the23
obligated parent in writing that the state intends to offset the parent's child24
support debt, child support arrearages, or child support costs against the25
parent's winnings from limited gaming, from sports betting, or from26
pari-mutuel wagering on horse or greyhound racing. The notice must27
1041
-10- include information concerning the parent's right to object to the offset1
and to request an administrative review pursuant to the rules of the state2
board.3
SECTION 10. In Colorado Revised Statutes, 44-33-103, amend4
as it will become effective July 1, 2023, (3) as follows:5
44-33-103.  Definitions. As used in this article 33, unless the6
context otherwise requires:7
(3)  "Payment" means cash winnings from limited gaming, from8
sports betting, or from pari-mutuel wagering on horse or greyhound9
racing payable by a licensee for which the licensee is required to file form10
W-2G, or a substantially equivalent form, with the United States internal11
revenue service.12
SECTION 11. Act subject to petition - effective date -13
applicability. (1) This act takes effect October 1, 2024; except that, if a14
referendum petition is filed pursuant to section 1 (3) of article V of the15
state constitution against this act or an item, section, or part of this act16
within the ninety-day period after final adjournment of the general17
assembly, then the act, item, section, or part will not take effect unless18
approved by the people at the general election to be held in November19
2024 and, in such case, will take effect on the date of the official20
declaration of the vote thereon by the governor.21
(2) This act applies to conduct occurring on or after the applicable22
effective date of this act.         23
1041
-11-