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March 20, 2024 HB 24-1326
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0579
Rep. Ricks; Brown
Sen. Smallwood; Zenzinger
Date:
Bill Status:
Fiscal Analyst:
March 20, 2024
House State Affairs
Matt Bishop | 303-866-4796
matt.bishop@coleg.gov
Bill Topic: BINGO-RAFFLE LICENSING SUNSET REVIEW
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☒ TABOR Refund
☐ Local Government
☐ Statutory Public Entity
Sunset bill. This bill continues bingo-raffle licensing through September 1, 2029,
which is scheduled to repeal on September 1, 2024, and moves the regulatory
functions of the program to the Department of Revenue. State fiscal impacts include
both revenue and expenditures impacts from changes to the program under the bill,
as well as partial continuation of the program's current revenue and expenditures.
Appropriation
Summary:
For FY 2024-25, the bill requires net appropriations of $293,053 to multiple state
agencies.
Fiscal Note
Status:
The fiscal note reflects the introduced bill.
Table 1
State Fiscal Impacts Under HB 24- 1326
1
New and Continuing Impacts
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue Dept. of Revenue Cash Fund $760,000 $760,000
Dept. of State Cash Fund ($760,000) $90,000
Total Revenue $0 $850,000
Expenditures Dept. of Revenue Cash Fund $102,805 $146,417
Dept. of State Cash Fund $190,248 ($165,595)
Centrally Appropriated $2,953 ($14,007)
Total Expenditures $296,006 ($33,185)
Total FTE 0.1 FTE (1.0 FTE)
Other Budget Impacts TABOR Refund - $850,000
1
Table 1 shows the combined impacts of both extending the regulation of bingo and raffle and the shift in
responsibilities under the program from the Department of State to the Department of Revenue. See Table 2 for
more details of these impacts. Page 2
March 20, 2024 HB 24-1326
Summary of Legislation
Under current law, the bingo-raffle organizations are licensed by the Department of State (DOS).
Beginning January 1, 2025 the bill moves the core regulatory functions of regulating bingo-raffle
organizations to the Department of Revenue (DOR) and creates the Department of Revenue
Cash Fund to support this function. The Department of State will continue to issue licenses to
charitable organizations, as required by the Colorado Constitution. DOR may promulgate rules
and assess fees in connection with its regulatory duties. These regulatory functions are
continued for five years, until September 1, 2029.
Additionally, the bill repeals the Bingo-Raffle Advisory Board; increases the maximum fine an
organization may pay for license violations; and prohibits the department from issuing a fine in
lieu of suspending or revoking a license.
Background
The sunset review for the Bingo and Raffles Licensing and the Bingo-Raffle Advisory Board is
available online here.
Continuing Program Impacts
Currently, DOS has cash fund revenue of about $850,000 per year and costs of about $300,000
and 4.0 FTE to license and regulate bingo and raffle. Under the bill, about $90,000 in revenue
and expenditures and 1.0 FTE will continue in DOS to issue licenses to qualified charitable
organizations. Because this is a constitutionally required function of DOS, this revenue and
expenditure will continue for the program starting in FY 2024-25, with the total amount of
continuing revenue subject to the state TABOR limit. A portion of the remaining costs in DOS
will shift to DOR under the bill to regulate the operations of bingo and raffle licensees. This shift,
as well as other changes in costs under the bill, are discussed in the State Revenue and State
Expenditures sections below.
State Revenue
While the bill is not expected to have a net impact on state revenue, transferring these
regulatory functions will decrease revenue to the DOS Cash Fund by an estimated $760,000 per
year and increase revenue to the new DOR Cash Fund by the same amount. Because the bill
decreases state expenditures on net, DOR may reduce license fees so that its revenue reflects its
expenditures in the long run. Due to variety of fees that support the program, the impact on
specific license types cannot be estimated.
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March 20, 2024 HB 24-1326
State Expenditures
On net, the bill increases state expenditures in FY 2024-25 by about $300,000 and decreases
state expenditures by about $33,000 in FY 2025-26 and ongoing. These expenditures, which are
paid from the Department of Revenue Cash Fund and the Department of State Cash Fund are
shown in Table 2 and detailed below.
Table 2
Expenditures Under HB 24-1326
FY 2024-25 FY 2025-26
Department of Revenue
Personal Services $74,457 $136,927
Operating Expenses $1,408 $2,560
Capital Outlay Costs $20,010 -
Vehicle Costs $6,930 $6,930
Centrally Appropriated Costs
1
$19,763 $36,078
FTE – Personal Services 1.1 FTE 2.0 FTE
DOR Subtotal $122,568 $182,495
Department of State
Personal Services ($55,782) ($163,675)
Operating Expenses ($1,280) ($1,920)
Capital Outlay Costs $6,670 -
Computer Programming $240,640 -
Centrally Appropriated Costs
1
($16,810) ($50,085)
FTE – New Personal Services 0.5 FTE -
FTE – Existing Personal Services (1.5 FTE) (3.0 FTE)
CDOS Subtotal $173,439 ($215,680)
Total $296,006 ($33,185)
Total FTE 0.1 FTE (1.0 FTE)
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of Revenue. The DOR requires staff to perform bingo-raffle licensing and
regulatory activities.
Staff. Beginning January 2025, the DOR requires 1.5 FTE compliance investigator and 0.5 FTE
administrative assistant to manage licensing activities, complaints, investigations, inspections
and audits. Standard operating and capital outlay costs are included for this staff. Page 4
March 20, 2024 HB 24-1326
Additional expenditures. The DOR will also have costs related to computer programming,
which will depend on the system capabilities and the memorandum of understanding
between it and the Department of State. These costs have not yet been estimated.
Department of State. The DOS will have a one-time increase in expenditures to transfer
program functions to the DOR, and an ongoing staff reduction beginning mid-FY 2024-25.
One-time staff and computer programming. In FY 2024-25 only, the DOS requires a
0.5 FTE administrator to work with computer programmers to modify the filing system,
update all bingo-raffle resources, oversee rulemaking, and create the memorandum of
understanding with DOR. Computer programming costs are estimated to require
1,880 hours at $128 per hour.
Staff reduction. Currently, the bingo-raffle program is supported by 4.0 FTE. As discussed in
the Continuing Program Impacts section above, only 1.0 FTE is required to perform the
department’s constitutional requirements. The reduction of the remaining 3.0 FTE equates to
a reduction in expenditures of about $215,000 per year, which is prorated for a half-year
impact in FY 2024-25.
Bingo-Raffle Advisory Board repeal. While board members are eligible for travel
reimbursement, no regular compensation has been provided in recent years. No change in
appropriations required.
Centrally appropriated costs. Pursuant to a Joint Budget Committee policy, certain costs
associated with this bill are addressed through the annual budget process and centrally
appropriated in the Long Bill or supplemental appropriations bills, rather than in this bill. These
costs, which include employee insurance and supplemental employee retirement payments, are
shown in Table 2.
Other Budget Impacts
TABOR refunds. By continuing the bingo-raffle program, the bill is expected to continue the
amount of state revenue required to be refunded to taxpayers by the amounts shown in the
State Revenue section above. This estimate assumes the December 2023 LCS revenue forecast.
Because TABOR refunds are paid from the General Fund, increased cash fund revenue will
reduce the amount of General Fund available to spend or save.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
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March 20, 2024 HB 24-1326
State Appropriations
For FY 2024-25, the bill requires the following appropriations:
$102,805 from the Department of Revenue Cash Fund to the Department of Revenue and
1.1 FTE; and
$190,248 from the Department of State Cash Fund to the Department of State and a net
reduction of 1.0 FTE.
Departmental Difference
The DOS has unmet staffing needs in other programs within its Business and Licensing Division,
specifically in charity registrations and charitable solicitor licensing/enforcement, for which it
assumes the displaced staffing from the enforcement side of the Bingo-Raffle Division will be
reassigned at a cost of approximately $215,000 per year including centrally appropriated costs.
Fiscal note policy is to assess the direct impact of the bill and since affected bingo-raffle
functions are no longer required by the bill, the fiscal note shows a corresponding decrease in
staffing. The General Assembly, at its discretion, may choose to allow this staff to continue in
DOS or otherwise appropriated additional resources for charity registrations and charitable
solicitor licensing/enforcement, whether through this bill or through the annual budget process.
State and Local Government Contacts
Law Personnel Revenue
Secretary of State
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 the General Assembly website.