First Regular Session Seventy-fourth General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted 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 3rd Reading Unamended May 5, 2023 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, Bridges, Cutter, Moreno, Priola 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-