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April 12, 2024 HB 24-1326
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated April 8, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0579
Rep. Ricks; Brown
Sen. Smallwood; Zenzinger
Date:
Bill Status:
Fiscal Analyst:
April 12, 2024
House Appropriations
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. State fiscal impacts include state
revenue and expenditures impacts from changes to the program under the bill, as well
as continuation of the program's current revenue and expenditures.
Appropriation
Summary:
For FY 2024-25, the bill requires an appropriation of $226,445 to the Department of
State.
Fiscal Note
Status:
The revised fiscal note reflects the introduced bill, as amended by the House State,
Civic, Military, and Veterans Affairs Committee and the House Finance Committee.
Table 1
State Fiscal Impacts Under HB 24-1326
1
New Impacts
Budget Year
FY 2024-25
Out Year
FY 2025-26
Revenue Cash Funds - -
Expenditures Cash Funds $277,422 $275,070
New FTE 3.0 FTE 3.2 FTE
Other Budget Impacts TABOR Refund - -
Continuing Impacts
Revenue Cash Funds - $760,000
Expenditures Cash Funds - $230,000
Continuing FTE - 3.0 FTE
Other Budget Impacts TABOR Refund - $760,000
1
Table 1 shows both the new impacts resulting from changes to the program under the bill and the continuing
impacts from extending the program beyond its current repeal date. Other than certain constitutionally required
activities in the Department of State, which will continue with or without this bill, the continuing program impacts
shown above will end if the bill is not passed and the program is allowed to repeal. Page 2
April 12, 2024 HB 24-1326
Summary of Legislation
The bill continues the regulation of bingo and other games of chance by the Secretary of State
(CDOS) for five years, until September 1, 2029. It also modifies regulatory activities and
operations of the Colorado Bingo-Raffle Advisory Board, including:
regulating strip bingo, which is a type of bingo played with a strip card of up to
five connected bingo faces;
increasing the maximum total prizes per bingo event from $2,000 to $15,000;
increasing the maximum fine imposed for violations from $100 to $250;
permitting licensees to presell tickets to a charitable gaming event; and
modifying the makeup, duties, and name of the board (Colorado Charitable Gaming Board).
Background
The sunset review for the Bingo and Raffles Licensing and the Bingo-Raffle Advisory Board is
available online here.
Continuing Program Impacts
Currently, CDOS has cash fund revenue of about $850,000 per year and costs of about $320,000
and 4.0 FTE to license and regulate bingo and raffle. If this bill is enacted, current revenue and
expenditures will continue for the program starting in FY 2025-26. This continuing revenue is
subject to the state TABOR limits. If this bill is not enacted, the program will end on
September 1, 2025, following a wind-down period, and state revenue and expenditures will
decrease starting in FY 2025-26 by the amounts shown in Table 1. Because some of these
functions are constitutionally required, the fiscal note estimates that revenue and expenditures
of about $90,000 and 1.0 FTE will continue even if the bill is not enacted. The changes to the
program that drive additional revenue and costs are discussed in the State Revenue and State
Expenditures sections below.
State Revenue
Beginning in FY 2024-25, the bill may increase state revenue from application fees and from
fines.
Application fees. If CDOS increases the prize amount that licensees may offer during a single
bingo occasion, it may increase the number of applicants for a bingo-raffle license. For
informational purposes, the existing application fee for a bingo-raffle license is $100 and the
existing application fee for a games manager is $20. Application fee revenue is subject to
TABOR.
Fines. The bill may increase state revenue due to higher fines imposed for violations committed
by the charitable gaming industry. The fiscal note assumes high compliance, and that any
change in revenue will be minimal. Fines are subject to TABOR. Page 3
April 12, 2024 HB 24-1326
State Expenditures
The bill increases state expenditures in CDOS by about $280,000 per year beginning in
FY 2024-25, paid from the Department of State Cash Fund. Expenditures are shown in Table 2
and detailed below.
Table 2
Expenditures Under HB 24-1326
FY 2024-25 FY 2025-26
Department of State
Personal Services $173,185 $186,978
Operating Expenses $3,840 $4,096
Capital Outlay Costs $20,010 -
Board Expenses $16,100 $16,100
Investigation-Related Costs $10,350 $10,350
Centrally Appropriated Costs
1
$50,977 $54,586
Total Cost $277,422 $275,070
Total FTE 3.0 FTE 3.2 FTE
1
Centrally appropriated costs are not included in the bill's appropriation.
Department of State. The bill increases expenditures to update rules, process applications,
conduct investigations, and to reinstate the board.
Staff. The bill increases workload to update rules in FY 2024-25 only, and to process new
applications, prepare reports for the General Assembly, and conduct additional
investigations of licensees on an ongoing basis. Investigation activities are expected to
ramp-up over time, depending on the growth of the licensed community. Standard
operating and capital outlay costs are included.
Board expenses. Board expenses include board member compensation as described in the
bill and reimbursement for costs incurred during board functions.
Investigation-related costs. Consistent with the sunset report, CDOS will ramp up
investigation activities. Additional investigations costs include mileage, hotel, and per diem
for on-site investigations.
Governor's Office. Workload will minimally increase for the Governor’s Office of Boards and
Commissions to make the required appointment under the bill. This work can be accomplished
within existing appropriations.
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April 12, 2024 HB 24-1326
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 March 2024 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.
State Appropriations
For FY 2024-25, the bill requires an appropriation of $226,445 from the Department of State
Cash Fund to the Department of State, and 3.0 FTE.
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.