Colorado 2024 2024 Regular Session

Colorado House Bill HB1326 Engrossed / Bill

Filed 04/24/2024

                    Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 24-0579.01 Alison Killen x4350
HOUSE BILL 24-1326
House Committees Senate Committees
State, Civic, Military, & Veterans Affairs
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING CONTINUATION UNDE R THE SUNSET LAW OF THE101
LICENSING OF CERTAIN GAME S OF CHANCE INCLUDING 
     102
BINGO, AND, IN CONNECTION THEREWITH, MAKING AN103
APPROPRIATION.104
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 State, Civic, Military, and Veterans
Affairs Committee. The bill implements the recommendations of the
sunset review and report on the licensing of bingo and other games of
HOUSE
Amended 2nd Reading
April 24, 2024
HOUSE SPONSORSHIP
Ricks and Brown, Epps
SENATE SPONSORSHIP
Smallwood and Zenzinger,
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. chance by:
! Retaining the secretary of state's constitutional authority
over the issuance of bingo-raffle licenses to qualified
charitable organizations, while transferring all remaining
licensing authority and all enforcement authority under the
"Bingo and Raffles Law" to the executive director of the
department of revenue (executive director), effective
January 1, 2025 (sections 2, 5, 7 through 17, 20 through
30, 34, 36, and 37); authorizing the executive director to
promulgate rules and assess fees in connection with the
executive director's duties (sections 5, 7 through 17, and
20 through 30); requiring the executive director to uphold
the secretary of state's decision to issue a bingo-raffle
license; requiring the secretary of state to uphold the
executive director's licensing and enforcement decisions
(section 5); and requiring the secretary of state and the
executive director to enter into memoranda of
understanding regarding their shared duties under the
"Bingo and Raffles Law" (section 5);
! Terminating the Colorado bingo-raffle advisory board
pursuant to the sunset law (sections 1, 4, 6, 18, 31 through
33, and 35);
! Modernizing the secretary of state's fining authority by
increasing the maximum fine to $250 per violation and
eliminating the provision for a fine in lieu of suspension or
revocation, for the period of time between the effective
date of the bill and the transfer of all enforcement authority
to the executive director, effective January 1, 2025 (section
4);
! Continuing the regulation of charitable gaming under the
"Bingo and Raffles Law" for 5 years, until 2029 (sections
33 through 36); and
! Making technical changes to the law (sections 2, 3, 8, 10,
12 through 16, 19, and 28).
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-21-602, amend2
(1)(a) and (6); repeal (5.5); and add (40.5) as follows:3
24-21-602. Definitions. As used in this part 6, unless the context4
otherwise requires:5
1326-2- (1)  "Bingo" means:1
(a)   A STRIP bingo strip card game; or2
(5.5) "Bingo strip card game" means a type of bingo that is played3
with a strip of up to five connected paper bingo cards, with each card4
containing a concealed grid of preprinted numbers ranging from one to5
seventy-five. The winner is the first player to match the numbers drawn6
on one or more bingo balls to the prearranged pattern of numbers on a7
card. The maximum prize for an individual card may not exceed one8
thousand dollars.9
(6) "Board" means the Colorado bingo-raffle advisory10
CHARITABLE GAMING board created in section 24-21-630.11
(40.5) "STRIP BINGO GAME" MEANS A TYPE OF BINGO THAT IS12
PLAYED WITH A PAPER STRIP CARD OF UP TO FIVE CONNECTED PAPER13
BINGO FACES, WITH EACH BINGO FACE CONTAINING A CONCEALED14
GROUPING OF PREPRINTED SYMBOLS, FREE SPACES, AND NUMBERS15
RANGING FROM ONE TO SEVENTY -FIVE.16
SECTION 2. In Colorado Revised Statutes, 24-21-604, repeal (4)17
as follows:18
24-21-604. Legislative declaration - consideration for tickets19
- conditions - rules. (4) A bingo-raffle licensee may, directly or through20
a third party, presell tickets to a charitable gaming event.21
SECTION 3. In Colorado Revised Statutes, 24-21-605, amend22
(1)(a)(II) and (1)(b) as follows:23
24-21-605.  Licensing and enforcement authority - powers -24
rules - duties - license suspension or revocation proceedings -25
definitions. (1) The secretary of state is hereby designated as the26
"licensing authority" of this part 6. As licensing authority, the secretary27
1326
-3- of state's powers and duties are as follows:1
(a) (II) In lieu of seeking a suspension or revocation of any license2
issued by the licensing authority, The licensing authority may impose a3
reasonable fine for any violation of this part 6 or any rule adopted4
pursuant to this part 6, not to exceed one hundred TWO HUNDRED FIFTY5
dollars per citation. The imposition of any such fine may be appealed to6
an administrative law judge. 7
(b)  To supervise the administration and enforcement of this part8
6 and in consultation with the board to adopt, amend, and repeal rules9
governing the holding, operating, and conducting of games of chance, the10
purchase of equipment, the establishment of a schedule of reasonable11
fines, not to exceed one hundred TWO HUNDRED FIFTY dollars per citation,12
for violation by licensees of this part 6 or of rules adopted pursuant to this13
part 6, to the end that games of chance shall be held, operated, and14
conducted only by licensees for the purposes and in conformity with the15
state constitution and the provisions of this part 6;16
SECTION 4. In Colorado Revised Statutes, 24-21-609, amend17
(2)(b) as follows:18
24-21-609. Application for bingo-raffle license. (2) (b) Each19
designated games manager must have been an active member of the20
applicant for at least the six months immediately preceding his or her THE21
MEMBER'S designation AS A GAMES MANAGER and shall be certified by the22
licensing authority pursuant to section 24-21-610 before assuming games23
management duties.24
SECTION 5. In Colorado Revised Statutes, 24-21-614, amend25
(1)(c) as follows:26
24-21-614. Application for manufacturer's agent license or27
1326
-4- supplier's agent license. (1) Each application for a manufacturer's agent1
license or supplier's agent license must include, but not be limited to, the2
following information:3
(c) A statement by the applicant that he or she THE APPLICANT has4
read, understands, and will comply with this part 6 as to manufacturer's5
and supplier's agents and the conditions of the agent's license;6
SECTION 6. In Colorado Revised Statutes, 24-21-617, amend7
(1); and add (16) as follows:8
24-21-617. General conduct games of chance - premises -9
equipment - expenses - rules. (1) A licensee shall not hold, operate, or10
conduct a game of bingo or lotto more often than as specified by the11
licensing authority by rule. after consultation with the board12
(16) A BINGO-RAFFLE LICENSEE MAY, DIRECTLY OR THROUGH A13
THIRD PARTY, PRESELL TICKETS TO A CHARITABLE GAMING EVENT .14
SECTION 7. In Colorado Revised Statutes, 24-21-618, amend15
(3)(d); and add (11) as follows:16
24-21-618. Conduct of bingo games. (3) (d)  An operator shall17
not reserve or allow to be reserved any bingo cards for use by players18
except braille cards or other cards for use by legally blind players. A19
person who is legally blind may use his or her personal braille cards when20
a licensed organization does not provide such cards. A licensed21
organization may inspect and reject any personal braille card. A person22
who is legally blind or an individual with a disability may use a braille23
card or hard card in place of a purchased disposable paper bingo card.24
(11) IN THE CONDUCT OF ANY STRIP BINGO GAME OR ANY25
OCCASION THAT INCLUDES A STRIP BINGO GAME :26
(a) A BINGO-RAFFLE LICENSEE MAY USE ANY STYLE OF STRIP BINGO27
1326
-5- GAME AUTHORIZED BY THIS PART 6 OR BY THE RULES ADOPTED PURSUANT1
TO THIS PART 6;2
(b) THE MAXIMUM PRIZE FOR A STRIP BINGO GAME MUST NOT3
EXCEED ONE THOUSAND DOLLARS ;4
(c)  BOTH STRIP BINGO GAMES AND TRADITIONAL BINGO GAMES5
MAY BE PLAYED DURING THE SAME OCCASION ; AND6
(d) THE TOTAL AMOUNT OF PRIZES AWARDED FOR ALL BINGO7
GAMES AT A SINGLE OCCASION MUST NOT EXCEED FIFTEEN THOUSAND8
DOLLARS.9
SECTION 8. In Colorado Revised Statutes, 24-21-622, amend10
(3)(a) as follows:11
24-21-622. Bingo-raffle licensee's statement of receipts -12
expenses - fee - definitions. (3) (a) All money collected or received from13
the sale of admission, extra regular cards, bingo strip cards, special game14
cards, sale of supplies, and all other receipts from the games of15
TRADITIONAL AND STRIP bingo GAMES, raffles, and pull tab games shall16
be deposited in a special checking or savings account, or both, of the17
licensee, which must contain only this money. If the licensee conducts18
progressive games of chance, the licensee may maintain one additional19
checking or savings account, which must contain only money received20
from the sale of progressive games. The licensee may withdraw money21
from these accounts only by consecutively numbered checks or22
withdrawal slips or by electronic transactions referenced by transaction23
number or date. A check or withdrawal slip must not be drawn to "cash"24
or a fictitious payee. The licensee shall maintain all of its books and25
records in accordance with generally accepted accounting principles.26
SECTION 9. In Colorado Revised Statutes, 24-21-630, amend27
1326
-6- (1), (2), (2)(a)(I), (2)(a)(V), (2)(a)(VI), (2)(b), (2)(d), (2)(e), (2)(f), (2)(g),1
(2)(h), and (2)(i); repeal (2)(a)(II) and (2)(a)(III); and add (2)(a)(VII),2
(2)(l), (2)(m), and (2)(n) as follows:3
24-21-630. Colorado charitable gaming board - creation.4
(1) There is hereby created, within the department of state, the Colorado5
bingo-raffle advisory CHARITABLE GAMING board.6
(2) The board consists of nine SEVEN members, all of whom must7
be citizens of the United States who have been residents of the state for8
at least the past five TWO years. A member must not have been convicted9
of a felony or gambling-related offense, notwithstanding section10
24-5-101. No more than five THREE of the nine SEVEN members may be11
members of the same political party; EXCEPT THAT THE POLITICAL PARTY12
AFFILIATION OF THE SECRETARY OF STATE'S DESIGNEE SHALL NOT BE13
CONSIDERED FOR PURPOSES OF DETERMINING COMPLIANCE WITH THIS14
REQUIREMENT. THE SECRETARY OF STATE'S DESIGNEE SHALL CONVENE15
THE BOARD'S FIRST MEETING AS SOON AS PRACTICABLE BUT NOT LATER16
THAN SIXTY DAYS AFTER A MAJORITY OF THE SEVEN BOARD MEMBERS ARE17
APPOINTED IN ACCORDANCE WITH THIS SECTION. At the first meeting of18
each fiscal year, a majority of the members must choose a chair and19
vice-chair of the board from the membership. Membership and operation20
of the board must additionally meet the following requirements:21
(a) (I) Three members of the board must be bona fide members of22
a bingo-raffle licensee that is classified as a religious organization, a23
charitable organization, a labor organization, an educational organization,24
A VETERANS' ORGANIZATION, A FRATERNAL ORGANIZATION, or a voluntary25
firefighter's organization; except that no more than one member shall be26
appointed from any one such classification;27
1326
-7- (II) One member of the board must be a bona fide member of a1
bingo-raffle licensee that is a veterans' organization;2
(III)  One member of the board must be a bona fide member of a3
bingo-raffle licensee that is a fraternal organization;4
(V) Two members ONE MEMBER of the board must be A landlord5
licensees LICENSEE; and6
(VI) One member of the board must be a registered elector of the7
state who is not employed by or an officer or director of a licensee, does8
not have a financial interest in any license, and does not have an active9
part in the conduct or management of games of chance by any10
bingo-raffle licensee; AND11
(VII) ONE MEMBER OF THE BOARD MUST BE THE SECRETARY OF12
STATE'S DESIGNEE.13
(b) (I) Of the five THE GOVERNOR SHALL APPOINT THE THREE14
members of the board who are categorized as bona fide members of a15
bingo-raffle licensee. two shall be appointed by the president of the16
senate, two shall be appointed by the speaker of the house of17
representatives, and one shall be appointed jointly by the president and18
the speaker.19
(II) Of the two members THE GOVERNOR SHALL APPOINT THE20
MEMBER of the board who are categorized as landlord licensees, one shall21
be appointed by the president of the senate and one shall be appointed by22
the speaker of the house of representatives IS A SUPPLIER LICENSEE AND23
THE MEMBER OF THE BOARD WHO IS A LANDLORD LICENSEE .24
(III) The president of the senate shall appoint the member of the25
board who is a supplier licensee. The speaker of the house THE26
SECRETARY OF STATE shall appoint the member of the board who is a27
1326
-8- registered elector AND THE MEMBER OF THE BOARD WHO IS THE1
SECRETARY OF STATE'S DESIGNEE.2
(d) Any vacancy on the board shall MUST be filled for the3
unexpired term in the same manner as the original appointment; EXCEPT4
THAT, IN THE EVENT OF AN EXTENDED VACANCY OF MORE THAN THREE5
MEETINGS OR THE FAILURE OF THE GOVERNOR TO APPOINT A NEW MEMBER6
WITHIN THREE MONTHS OF THE VACANCY, THE SECRETARY OF STATE MAY7
APPOINT A REPLACEMENT MEMBER. The member appointed to fill such8
vacancy shall be from the same category described in subsection (2)(a) of9
this section as the member vacating the position.10
(e) A member of the board having a direct personal or private11
interest in any matter before the board shall MUST disclose such fact on12
the board's record. A member MEMBERS may disqualify himself or herself13
THEMSELVES for any cause deemed by him or her THEM to be sufficient. 14
(f) The appointing officer shall terminate the term of any member15
of the board who misses more than two consecutive regular board16
meetings without good cause, or who no longer meets the requirements17
for membership imposed by this section. The member's successor shall18
MUST be appointed in the manner provided for appointments under this19
section.20
(g) Board members are entitled to receive as compensation for21
their services fifty SEVENTY-FIVE dollars for each day spent in the conduct22
of board business, not to exceed five hundred dollars per member per23
year, and are entitled to be reimbursed for necessary travel and other24
reasonable expenses incurred in the performance of their official duties.25
(h) Prior to commencing his or her A term of service, each person26
nominated to serve on the board, OTHER THAN THE SECRETARY OF STATE'S27
1326
-9- DESIGNEE, shall MUST file with the secretary of state a financial disclosure1
statement in the form required and prescribed by the licensing authority2
and as commonly used for other Colorado boards and commissions. Such3
statement shall MUST be renewed as of each January 1 during the4
member's term of office.5
(i)  The board shall hold at least two SIX meetings each year and6
such additional meetings as the members may deem necessary. In7
addition, special meetings may be called by the chair, any three board8
members, or the licensing authority if written notification of the meeting9
is delivered to each member at least seventy-two hours before the10
meeting. Notwithstanding section 24-6-402, in emergency situations in11
which a majority of the board certifies that exigencies of time require that12
the board meet without delay, the requirements of public notice and of13
seventy-two hours' actual advance written notice to members may be14
dispensed with, and board members as well as the public shall MUST15
receive such notice as is reasonable under the circumstances.16
(l) A MAJORITY OF THE BOARD CONSTITUTES A QUORUM, BUT THE17
CONCURRENCE OF A MAJORITY OF ALL MEMBERS IS REQUIRED FOR ANY18
FINAL ACTION OR DETERMINATION BY THE BOARD .19
(m) THE MEMBERS OF THE BOARD MAY INVITE ADDITIONAL20
INDIVIDUALS AND REPRESENTATIVES OF ENTITIES TO ATTEND WORKING21
GROUP MEETINGS AND PARTICIPATE IN SUCH MEETINGS AS NONVOTING22
MEMBERS OF THE BOARD.23
(n) THE SECRETARY OF STATE MAY EMPLOY STAFF TO ASSIST THE24
BOARD IN CARRYING OUT ITS DUTIES AND TO ENSURE THAT THE BOARD25
MAINTAINS ITS REGULAR MEETING SCHEDULE SET FORTH IN SUBSECTION26
(2)(i) OF THIS SECTION.27
1326
-10- SECTION 10. In Colorado Revised Statutes, repeal and reenact,1
with amendments, 24-21-631 as follows:2
24-21-631. Board - duties. (1) IN ADDITION TO ANY OTHER3
DUTIES SET FORTH IN THIS PART 6, THE BOARD SHALL:4
(a) CONDUCT A CONTINUOUS STUDY OF CHARITABLE GAMING5
THROUGHOUT THE STATE FOR THE PURPOSE OF IMPROVING CHARITABLE6
GAMING AND ASCERTAINING ANY DEFECTS IN THIS PART 6 OR IN THE RULES7
PROMULGATED PURSUANT TO THIS PART 6; AND8
(b)  COMMENCING ON AND AFTER JANUARY 1, 2025, AT THE9
DISCRETION OF THE BOARD, SUBMIT A REPORT TO THE GENERAL ASSEMBLY10
CONTAINING RECOMMENDATIONS FOR CHANGES TO THIS PART 6, WHICH11
REPORT SHALL BE SUBMITTED ON OR BEFORE OCTOBER 31, 2025, AND ON12
OR BEFORE OCTOBER 31 OF EACH YEAR THEREAFTER.13
(2) THE LICENSING AUTHORITY IS ENCOURAGED TO COLLABORATE14
WITH THE BOARD ON PROPOSALS DEVELOPED BY THE BOARD CONCERNING15
SUBJECTS INCLUDING BUT NOT LIMITED TO :16
(a) THE TYPES OF CHARITABLE GAMING ACTIVITIES TO BE17
CONDUCTED, THE EXISTING RULES AND POTENTIAL NEW RULES FOR THOSE18
ACTIVITIES, AND THE NUMBER OF OCCASIONS PER YEAR UPON WHICH A19
LICENSEE MAY HOLD, OPERATE, OR CONDUCT A GAME OF BINGO OR LOTTO;20
(b) THE TYPES OF CHARITABLE GAMING ACTIVITIES TO BE21
CONDUCTED IN THE FUTURE BASED UPON A CONTINUING REVIEW OF THE22
AVAILABLE STATE-OF-THE-ART EQUIPMENT IN COLORADO AND OTHER23
STATES AND THE POLICIES AND PROCEDURES APPROVED AND24
IMPLEMENTED BY OTHER STATES FOR THE CONDUCT OF CHARITABLE25
GAMING ACTIVITIES; AND26
(c) AN ANNUAL REVIEW OF AT LEAST TEN PERCENT OF ALL27
1326
-11- CHARITABLE GAMING RULES AND A COMPLETE REVIEW OF ALL1
CHARITABLE GAMING RULES EVERY FIVE YEARS .2
(3) THE BOARD SHALL OFFER ADVICE TO THE LICENSING3
AUTHORITY UPON SUBJECTS INCLUDING BUT NOT LIMITED TO :4
(a) THE REQUIREMENTS, QUALIFICATIONS, AND GROUNDS FOR THE5
ISSUANCE OF ALL TYPES OF PERMANENT AND TEMPORARY LICENSES6
REQUIRED FOR THE CONDUCT OF CHARITABLE GAMING ;7
(b) THE REQUIREMENTS, QUALIFICATIONS, AND GROUNDS FOR THE8
REVOCATION, SUSPENSION, AND SUMMARY SUSPENSION OF ALL LICENSES9
REQUIRED FOR THE CONDUCT OF CHARITABLE GAMING ;10
(c) ACTIVITIES THAT CONSTITUTE FRAUD, CHEATING, OR ILLEGAL11
ACTIVITIES;12
(d) THE GRANTING OF LICENSES WITH SPECIAL CONDITIONS OR FOR13
LIMITED PERIODS, OR BOTH;14
(e) THE ESTABLISHMENT OF A SCHEDULE OF REASONABLE FINES TO15
BE ASSESSED FOR VIOLATIONS OF THIS PART 6 OR ANY RULE ADOPTED16
PURSUANT TO THIS PART 6;17
(f) THE AMOUNT OF FEES FOR LICENSES ISSUED BY THE LICENSING18
AUTHORITY AND FOR THE PERFORMANCE OF ADMINISTRATIVE SERVICES19
PURSUANT TO THIS PART 6;20
(g) THE ESTABLISHMENT OF CRITERIA UNDER WHICH A PERSON21
MAY SERVE AS A GAMES MANAGER ;22
(h) THE CONTENT AND CONDUCT OF CLASSES OR TRAINING23
SEMINARS TO BENEFIT BINGO-RAFFLE CHARITABLE LICENSEES, OFFICERS,24
AND VOLUNTEERS TO BETTER ACCOUNT FOR FUNDS COLLECTED FROM25
GAMES OF CHANCE;26
(i) STANDARDIZED RULES, PROCEDURES, AND POLICIES TO CLARIFY27
1326
-12- AND SIMPLIFY THE AUDITING OF LICENSEES' RECORDS; AND1
(j) THE CONDITIONS FOR A LICENSEE'S PLAN FOR DISPOSAL OF ANY2
EQUIPMENT AND THE DISTRIBUTION OF ANY REMAINING NET PROCEEDS3
UPON TERMINATION OF A BINGO-RAFFLE LICENSE FOR THE LICENSEE'S4
FAILURE TO TIMELY OR SUFFICIENTLY RENEW SUCH LICENSE .5
SECTION 11. In Colorado Revised Statutes, amend 24-21-6326
as follows:7
24-21-632. Repeal of part - review of functions. This part 6 is8
repealed, effective September 1, 2024 SEPTEMBER 1, 2029. Before the9
repeal, the licensing functions of the licensing authority and the functions10
of the Colorado bingo-raffle advisory CHARITABLE GAMING board in the11
department of state are scheduled for review in accordance with section12
24-34-104.13
SECTION 12. In Colorado Revised Statutes, 24-34-104, repeal14
(25)(a)(XV) and (25)(a)(XVI); and add (30)(a)(IX) as follows:15
24-34-104. General assembly review of regulatory agencies16
and functions for repeal, continuation, or reestablishment - legislative17
declaration - repeal. (25) (a) The following agencies, functions, or both,18
are scheduled for repeal on September 1, 2024:19
(XV) The licensing of bingo and other games of chance through20
the secretary of state in accordance with part 6 of article 21 of this title21
24;22
(XVI) The Colorado bingo-raffle advisory board created in23
section 24-21-630;24
(30) (a) The following agencies, functions, or both, are scheduled25
for repeal on September 1, 2029:26
(IX) THE LICENSING OF BINGO AND OTHER GAMES OF CHANCE27
1326
-13- THROUGH THE SECRETARY OF STATE AND THE FUNCTIONS OF THE1
COLORADO CHARITABLE GAMING BOARD AS SPECIFIED IN PART 6 OF2
ARTICLE 21 OF THIS TITLE 24.3
SECTION 13. Appropriation. (1)  For the 2024-25 state fiscal4
year, $226,445 is appropriated to the department of state. This5
appropriation is from the department of state cash fund created in section6
24-21-104 (3)(b), C.R.S. To implement this act, the department may use7
this appropriation as follows:8
(a)  $173,185 for use by the business and licensing division for9
personal services, which amount is based on an assumption that the10
division will require an additional 3.0 FTE;11
(b) $44,240 for use by the business and licensing division for12
operating expenses; and13
(c) $9,020 for use by the information technology division for14
operating expenses.15
SECTION 14. Safety clause. The general assembly finds,16
determines, and declares that this act is necessary for the immediate17
preservation of the public peace, health, or safety or for appropriations for18
the support and maintenance of the departments of the state and state19
institutions.20
1326
-14-