Colorado 2023 Regular Session

Colorado House Bill HB1041 Latest Draft

Bill / Enrolled Version Filed 05/17/2023

                            HOUSE BILL 23-1041
BY REPRESENTATIVE(S) 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;
also SENATOR(S) Ginal and Simpson, Bridges, Cutter, Moreno, Priola.
C
ONCERNING A PROHIBITION AGAINST WAGERING ON RACES OF
GREYHOUNDS THAT ARE SIMULCAST FROM OUT
-OF-STATE TRACKS AT
WHICH THE RACES ARE CONDUCTED
.
 
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 44-32-102, amend
(15), (18), and (22); and repeal (5) as follows:
44-32-102.  Definitions - rules. As used in this article 32, unless the
context otherwise requires:
(5)  "Cross simulcasting" means the receipt of a simulcast race of
greyhounds at an out-of-state host track by a simulcast facility that is
located on the premises of a track that is licensed to race horses.
NOTE:  This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (15)  "Out-of-state host track" means a track, located within a state
other than Colorado, that is licensed or otherwise properly authorized under
the laws of the state to conduct live races of horses or greyhounds
 and to
broadcast the races as simulcast races and that broadcasts the simulcast
races to an in-state simulcast facility.
(18)  "Pari-mutuel wagering" means a form of wagering on the
outcome of horse and greyhound
 races in which those who wager purchase
tickets of various denominations on one or more horses or greyhounds from
one or more pools and all like wagers from each race are pooled and the
winning ticket holders are paid prizes from the pool in amounts proportional
to the total receipts in the pool minus deductions authorized by statute.
(22)  "Simulcast race" means a live, audio-visual broadcast 
THAT IS:
(a)  Transmitted simultaneously with either:
(I)  The performance of a live race of horses or greyhounds
 by an
out-of-state host track; or
(II)  The performance of a live race of horses by an in-state host
track; 
AND
(b)  that is
 Received by a simulcast facility.
SECTION 2. In Colorado Revised Statutes, 44-32-202, amend
(4)(a)(I) as follows:
44-32-202.  Director - qualifications - powers and duties - rules.
(4)  If so directed by the commission, the director may, on behalf of this
state:
(a)  Negotiate, enter into, and participate in one or more interstate
compacts that enable party states to act jointly and cooperatively to create
more uniform, effective, and efficient practices, programs, and rules
relating to:
(I)  Live horse and greyhound
 racing; and
PAGE 2-HOUSE BILL 23-1041 SECTION 3. In Colorado Revised Statutes, amend 44-32-514 as
follows:
44-32-514.  Payments of winnings - intercept. Before making a
payment of cash winnings from pari-mutuel wagering on horse or
greyhound racing for which the licensee is required to file form W-2G, or
a substantially equivalent form, with the United States internal revenue
service, the licensee shall comply with the requirements of article 33 of this
title 44.
SECTION 4. In Colorado Revised Statutes, 44-32-602, amend (1)
and (5); and repeal (2) and (4)(a) as follows:
44-32-602.  Simulcast facilities and simulcast races - unlawful act
- repeal. (1)  It is unlawful for any person to accept or place wagers on any
simulcast race within the state of Colorado except under the provisions of
this article 32. It is lawful to conduct pari-mutuel wagering on simulcast
races of horses or greyhounds
 that are received by an in-state simulcast
facility authorized and operated pursuant to this article 32.
(2)  Cross simulcasting between an in-state host track or an
out-of-state host track and an in-state simulcast facility, or between an
in-state host track and an out-of-state simulcast facility, is permissible.
(4) (a) (I)  An in-state simulcast facility may, subject to the
commission's approval, receive the broadcast signal of greyhounds from an
out-of-state host track and conduct pari-mutuel wagering on the signal
through an in-state simulcast facility located on the premises of a class B
track that has conducted, or is scheduled to conduct during the next twelve
months, a live race meet of horses of at least the duration required for a
class B track.
(II)  The specified portions of the gross receipts from pari-mutuel
wagers placed at an in-state simulcast facility on simulcast greyhound races
being held on out-of-state host tracks from signals received through a class
B track shall be distributed in accordance with section 44-32-701 (2).
(5)  An in-state simulcast facility having a written simulcast racing
agreement with an in-state or out-of-state host track pursuant to section
44-32-503 (2) may receive simulcast races, as specified in subsections (2)
PAGE 3-HOUSE BILL 23-1041 to (4) SUBSECTION (4)(b) of this section, on any day, including a day not
within the race meet of the in-state simulcast facility that is also a track and
a day on which no live race is conducted within the race meet of the in-state
simulcast facility that is also a track.
SECTION 5. In Colorado Revised Statutes, amend 44-32-604 as
follows:
44-32-604.  Greyhound racing prohibited. (1)  No live greyhound
racing involving the betting or wagering on the speed or ability of the
greyhounds racing shall be conducted in Colorado. The commission shall
not accept or approve an application or request for race dates for live
greyhound racing in Colorado.
(2)  N
OTWITHSTANDING THE PROVISIONS OF THIS ARTICLE 32 OR ANY
OTHER GENERAL OR SPECIFIC LAW TO THE CONTRARY
, IT IS UNLAWFUL IN
COLORADO TO WAGER ON ANY RACE OF GREYHOUNDS THAT IS CONDUCTED
AT
, AND SIMULCAST FROM, A TRACK THAT IS OUTSIDE OF COLORADO.
SECTION 6. In Colorado Revised Statutes, 44-32-701, amend
(2)(a), (2)(b), and (2)(c)(I); and repeal (1) as follows:
44-32-701.  License fees and Colorado-bred horse race
requirement - rules - repeal. (1)  Subject to section 44-32-702 (1), for the
privilege of conducting racing under a license issued under and of operating
an in-state simulcast facility pursuant to this article 32, a licensee for the
racing of greyhounds and an operator of an in-state simulcast facility that
receives simulcast races of greyhounds shall pay to the department through
the division four and one-half percent of the gross receipts derived from
pari-mutuel wagering during any such race meet or placed on the simulcast
races that are received through a live greyhound track.
(2) (a) (I)  For the privilege of conducting racing under a license
issued under, and of operating an in-state simulcast facility pursuant to, this
article 32, a licensee for the racing of horses and an operator of an in-state
simulcast facility that receives simulcast races of horses or greyhounds
pursuant to section 44-32-602 (4)(a)(I) 44-32-602 (4)(b) shall pay to the
department through the division three-fourths of one percent of the gross
receipts of the pari-mutuel wagering at any race meet or placed on the
simulcast races; except that a licensee for the racing of horses at a class B
PAGE 4-HOUSE BILL 23-1041 track race meet shall pay to the department through the division
three-fourths of one percent of the gross receipts of the pari-mutuel
wagering at any such race meet.
(I.5) (A)  N
OTWITHSTANDING SECTION 44-32-706 (2), ON JANUARY
1, 2025, OF THE MONEY THAT IS PAID TO THE DEPARTMENT BY LICENSEES
PURSUANT TO SUBSECTION
 (2)(a)(I) OF THIS SECTION, THE DEPARTMENT
SHALL TRANSFER TWENTY
-FIVE THOUSAND DOLLARS TO THE FUND CREATED
IN SUBSECTION
 (2)(a)(I.5)(B) OF THIS SECTION, AND ON JANUARY 1, 2026,
THE DEPARTMENT SHALL TRANSFER FIFTY THOUSAND DOLLARS TO THE FUND ,
IN ACCORDANCE WITH RULES PROMULGATED BY THE COMMISSION .
(B)  T
HE GREYHOUND WELFARE AND ADOPTION FUND , REFERRED TO
IN THIS SUBSECTION
 (2)(a)(I.5) AS THE "FUND", IS HEREBY CREATED IN THE
STATE TREASURY
. THE FUND CONSISTS OF MONEY CREDITED TO THE FUND
PURSUANT TO SUBSECTION
 (2)(a)(I.5)(A) OF THIS SECTION AND ANY OTHER
MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO
THE FUND
. THE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME
DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE FUND TO
THE FUND
. ANY UNEXPENDED AND UNENCUMBERED MONEY REMAINING IN
THE FUND AT THE END OF A FISCAL YEAR REMAINS IN THE FUND
. SUBJECT TO
ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY
, THE DEPARTMENT
MAY MAKE DISTRIBUTIONS OF MONEY FROM THE FUND TO GREYHOUND
WELFARE AND ADOPTION ORGANIZATIONS IN ACCORDANCE WITH RULES OF
THE COMMISSION
. THE COMMISSION SHALL NOT CONDITION DISTRIBUTIONS
FROM THE ACCOUNT ON WHETHER A GREYHOUND WELFARE AND ADOPTION
ORGANIZATION SUPPORTS OR OPPOSES GREYHOUND RACING
. THE STATE
TREASURER SHALL TRANSFER ALL UNEXPENDED AND UNENCUMBERED
MONEY IN THE FUND ON 
JULY 31, 2026, TO THE GENERAL FUND.
(C)  T
HIS SUBSECTION (2)(a)(I.5) IS REPEALED, EFFECTIVE AUGUST
1, 2026.
(II) (A)  Except as otherwise provided in subsection (2)(a)(II)(B) of
this section, In addition to the amount paid to the department through the
division in subsection (2)(a)(I) of this section, a licensee for the racing of
horses and an operator of an in-state simulcast facility that receives
simulcast races of horses or greyhounds
 pursuant to section 44-32-602
(4)(a)(I) 44-32-602 (4)(b) shall pay to Colorado state university for
allocation to its school of veterinary medicine one-fourth of one percent of
PAGE 5-HOUSE BILL 23-1041 the gross receipts of all pari-mutuel wagering, except on win, place, or
show, at the horse race meet or placed on the simulcast races, to be used for
racing-related equine research. To receive research funding under this
subsection (2)(a)(II), an institution or individual must describe and report
to the commission on all projects upon completion.
(B)  In the case of pari-mutuel wagers on greyhound simulcast
signals received by a class B track, in lieu of the amounts otherwise payable
to Colorado state university pursuant to subsection (2)(a)(II)(A) of this
section, the licensee shall instead pay an equivalent amount into a trust
account for distribution in accordance with rules of the commission under
section 44-32-702 (1)(e)(I).
(b)  In addition to any money to be paid pursuant to subsection (2)(a)
of this section, a licensee for the racing of horses and an operator of an
in-state simulcast facility that receives simulcast races of horses or
greyhounds pursuant to section 44-32-602 (4)(a)(I) 44-32-602 (4)(b) shall
pay to a trust account one-half of one percent of the gross receipts of
pari-mutuel wagering on win, place, and show and one and one-half percent
of the gross receipts from all other pari-mutuel wagering at any such race
meet or placed on the simulcast races for the horse breeders' and owners'
awards and supplemental purse fund established in section 44-32-705.
(c) (I)  The operator of a simulcast facility that receives simulcast
races of horses or greyhounds
 pursuant to section 44-32-602 (4)(a)(I)
44-32-602 (4)(b) shall retain five percent of the gross receipts of	pari-mutuel wagering placed on the simulcast races at that facility, to be	used to cover the particular expenses incurred in operating a simulcast	facility.
SECTION 7. In Colorado Revised Statutes, 44-32-702, amend
(1)(b)(I), (1)(e)(I), (1)(h)(III), and (4) introductory portion; and repeal
(1)(h)(II) and (1)(i) as follows:
44-32-702.  Unlawful to wager - exception - excess - taxes -
special provisions for simulcast races - rules. (1) (b) (I)  Except as
otherwise provided in subsection (4) of this section, it is unlawful for a
racing or simulcast facility licensee for the racing of greyhounds or
 horses
to take more than the percentage of the gross receipts authorized by the
commission pursuant to subsection (1)(b)(II) of this section of any
PAGE 6-HOUSE BILL 23-1041 pari-mutuel wagering on the races or simulcast races.
(e) (I)  Each operator of an in-state simulcast facility that receives
simulcast races of horses from either an in-state host track or an out-of-state
host track or of greyhounds from an out-of-state host track,
 shall pay to
purse funds for the racing of horses and to the in-state or out-of-state tracks
and simulcast facilities described in the simulcast agreement filed with the
commission, the percentages of the gross pari-mutuel wagering on the
simulcast races, after deduction of a signal fee required by an out-of-state
host track or an in-state host track, paid during the current year or a
previous year, and the applicable amounts specified in subsection (2)(b) of
this section and in sections 44-32-701 (1) and (2)
 44-32-701 (2) and
44-32-705 (2), as specified in the simulcast agreement. In the case of
pari-mutuel wagers on greyhound simulcast signals received by a class B
track from an out-of-state host track, the operator shall deposit the amounts
payable pursuant to section 44-32-701 (2)(a)(II)(B) into a trust account for
distribution, in accordance with rules of the commission, to greyhound
welfare and adoption organizations.
(h) (II)  The breakage at any greyhound race meet shall be retained
by the licensee under whose license the greyhound race meet was held.
(III)  Except as otherwise provided in subsection (1)(h)(IV) or (4) of
this section, the breakage on any simulcast race of horses or greyhounds
received by an in-state simulcast facility shall be retained by the operator of	the in-state simulcast facility.
(i)  An operator of an in-state simulcast facility shall retain the
proceeds derived from all unclaimed pari-mutuel tickets for each simulcast
race of greyhounds received for a race held at an out-of-state host track and,
after a period of one year following the simulcast race, the proceeds revert
and belong to the operator.
(4)  Pursuant to a valid simulcasting agreement, an operator of an
in-state simulcast facility that receives simulcast signals of horse or
greyhound races held in another state may:
SECTION 8. In Colorado Revised Statutes, 44-32-704, amend (1)
and (2)(a) as follows:
PAGE 7-HOUSE BILL 23-1041 44-32-704.  Limitations on pari-mutuel wagering. (1)  Wagers on
pari-mutuel horse or greyhound races conducted in or out of this state may
only be placed ONLY upon the premises of a racetrack or an in-state
simulcast facility licensed by the commission or the out-of-state racetrack
or simulcast facility as authorized by the commission. No wagering or
betting on the results of any of the races licensed under this article 32 shall
be conducted outside a licensed or approved racetrack or simulcast facility.
(2) (a)  No person or agent or employee of any person shall place,
receive, offer, or agree to place or receive a wager on a pari-mutuel horse
or greyhound
 race, conducted in or broadcast in this state, by messenger,
telephone, telegraph, facsimile machine, or other electronic device; except
that this subsection (2) shall not apply to associations or simulcast facilities
licensed by the commission. Nothing in this section shall be construed to
prohibit gambling as provided in section 18-10-102 (2)(d).
SECTION 9. In Colorado Revised Statutes, 26-13-118.7, amend
as it will become effective July 1, 2023, (2) as follows:
26-13-118.7.  Gambling winnings - interception - rules. (2)  Upon
receipt from the registry operator of a payment and accompanying
information pursuant to section 44-33-105 (2)(b), the state department,
through the casino, sports betting operator, internet sports betting operator,
racetrack, or off-track betting facility, shall notify the obligated parent in
writing that the state intends to offset the parent's child support debt, child
support arrearages, or child support costs against the parent's winnings from
limited gaming, from sports betting, or from pari-mutuel wagering on horse
or greyhound
 racing. The notice must include information concerning the
parent's right to object to the offset and to request an administrative review
pursuant to the rules of the state board.
SECTION 10. In Colorado Revised Statutes, 44-33-103, amend as
it will become effective July 1, 2023, (3) as follows:
44-33-103.  Definitions. As used in this article 33, unless the context
otherwise requires:
(3)  "Payment" means cash winnings from limited gaming, from
sports betting, or from pari-mutuel wagering on horse or greyhound
 racing
payable by a licensee for which the licensee is required to file form W-2G,
PAGE 8-HOUSE BILL 23-1041 or a substantially equivalent form, with the United States internal revenue
service.
SECTION 11. Act subject to petition - effective date -
applicability. (1)  This act takes effect October 1, 2024; except that, if a
referendum petition is filed pursuant to section 1 (3) of article V of the state
constitution against this act or an item, section, or part of this act within the
ninety-day period after final adjournment of the general assembly, then the
act, item, section, or part will not take effect unless approved by the people
at the general election to be held in November 2024 and, in such case, will
take effect on the date of the official declaration of the vote thereon by the
governor.
PAGE 9-HOUSE BILL 23-1041 (2)  This act applies to conduct occurring on or after the applicable
effective date of this act.
____________________________ ____________________________
Julie McCluskie	Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________  ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
            APPROVED________________________________________
                                                        (Date and Time)
                              _________________________________________
                             Jared S. Polis
                             GOVERNOR OF THE STATE OF COLORADO
PAGE 10-HOUSE BILL 23-1041