Struck = removed from the bill ยท
added = the amendment's new text.
SecondHB1412_S_FIN.001 RegularSENATE SessionCOMMITTEE Seventy-thirdOF GeneralREFERENCE AssemblyREPORT STATE_______________________________ OFMay COLORADO9, ENGROSSED2022 ThisChair Versionof IncludesCommittee AllDate AmendmentsCommittee Adopted on SecondFinance Reading. in the House of Introduction LLS NO.
22-0314.01After Richardconsideration Sweetmanon x4333the HOUSEmerits, BILLthe 22-1412Committee HOUSErecommends SPONSORSHIPthe Garnettfollowing: and Van Winkle, Amabile, Roberts SENATE SPONSORSHIP Cooke, House Committees Senate Committees Business Affairs & Labor Finance Appropriations A BILL FOR AN ACT CONCERNINGTHECONTINUATIONOFTHEDIVISIONOFGAMINGINTHE DEPARTMENT OF REVENUE ,AND , IN CONNECTION THEREWITH , IMPLEMENTING THE RECOMMENDATIONS CONTAINED IN THE 2021 SUNSET REPORT BY THE DEPARTMENT OF REGULATORY AGENCIES .
BillHB22-1412 Summarybe (Note:amended as follows, and as so amended, be referred to the Committee on Appropriations with favorable recommendation:
ThisAmend summary applies to this bill as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill passes third reading in the house of introduction, a bill summary that applies to the reengrossed versionbill, ofpage this10, billline will20, bestrike available"Sections10,11,12,13, atand http://leg.colorado.gov/.)14" Sunset Process - House Business Affairs and Laborsubstitute i"Sections Committee.Thebillimplementstherecommendationsofthedepartment9, a10, 211, S12, Rand 213". O n 5 Shading denotes HOUSE amendment.
DoublePage underlining11, denotesline SENATE2, amendment.strike "sections 10, 11, 12, 13, and 14" and substitute "sections 9, 10, 11, 12, and 13".
H** 2*** a** Capital*** letters** or bold & italic numbers indicate new material to be added to existind statute.
Dashes through the words indicate deletions from existing statute.
e m A of regulatory agencies in its sunset review and report on the division of gaming (division) in the department of revenue.
Specifically:
! Sections 1 and 2 of the bill implement a portion of recommendation 1 of the report bycontinuing the division for 11 years, until 2033;
! Sections 1 and 3 implement a portion of recommendation by continuing the regulation of sports betting by the division for 5 years, until 2027;
! Section 4 implements recommendation 2 by allowing the Colorado limited gaming control commission to delegate licensing duties to the division;
! Sections 5 and 6 implement recommendation 3 by changing the minimum age for a casino employee from 21 years of age to 18 years of age;
! Sections 7 and 8 implement recommendation 4 by designating the department of revenue's hearings division to conduct hearings under the "Fantasy Contests Act";
! Section 9 implements recommendation 5 by repealing the requirement that internationally based internet sports betting personnel submit to a fingerprint-based criminal history record check;
and ! Sections 10 through 14 implement recommendation 6 by subjecting payments of sports bet winnings to the "Gambling Payment Intercept Act".
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1.
In Colorado Revised Statutes, 24-34-104, repeal (23)(a)(VII);
and add (34)(a)(II) as follows:
24-34-104.
General assembly review of regulatory agencies andfunctionsforrepeal,continuation,orreestablishment-legislative declaration-repeal.(23)(a) Thefollowingagencies,functions,orboth, are scheduled for repeal on September 1, 2022:
(VII) Thedivisionof gamingcreatedinpart2of article30of title 44;
-2- 1412 (34)(a) Thefollowingagencies,functions,orboth,arescheduled for repeal on September 1, 2033:
(II) TE DIVISION OF GAMING CREATED IN PAR2OF ARTICLE30 OF TITLE44.
SECTION2.
InColoradoRevisedStatutes,amend44-30-206as follows:
44-30-206.
Repeal of division - review of functions.
Unless continued by the general assemblThis part 2 is repealed, effective September1,2022,andthosepowers,duties,andfunctionsofthedirector specifiedinthispart2areabolished.Theprovisionsofsection24-34-104 (2)to(8)concerningawind-upperiod,ananalysisandevaluation,public hearings, and claims byor against an agencyapplyto the powers, duties, andfunctionsof thedirector of the divisionBER 1,2033.BEFORE THE REPEAL ,THE DIVISION OF GAMING IS SCHEDULED FOR REVIEW IN ACCORDANCE WITH SECTION 24-34-104.
SECTION 3.
InColoradoRevisedStatutes,amend44-30-507as follows:
44-30-507.
Delegation of licensing duties.
The commission, ITSDISCRETION,maydelegateLICENSINGDUTIESDESCRIBEDINTHISPART 5 to the division.
the authorityto issue permanent and temporarysupport andkeyemployeelicenses,butthecommissionshallreviewandapprove the issuance of all other licenses issued pursuant to this article 30.
SECTION 4.
In Colorado Revised Statutes, 44-30-103, amend (14) introductory portion as follows:
44-30-103.
Definitions.
As used in this article 30, unless the context otherwise requires:
-3- 1412 (14) "Gaming employee" means any person employed by an operator or retailer hosting gaming to work directly with the gaming portion of the operator's or retailer's business, who shall be twenty-one EIGHTEEN years of age or older and hold a support license.
Persons deemedtobegamingemployeesshall include:butshallnotbelimitedto:
SECTION 5.
InColoradoRevisedStatutes,amend44-30-811as follows:
44-30-811.
Persons conducting limited gaming.
(1) No A person under the age of twenty-one yearsEEN YEARS OF AGEshall NOT :
(a) Be employed as a gaming employee;
(b) Conduct, or assist in conducting, anylimited gaming activity;
and no such person shall (c) Manage or handle any of the proceeds from limited gaming.
SECTION 6.
In Colorado RevisedStatutes,44-30-1610,amend (2) as follows:
44-30-1610.
Grounds for discipline.
(2) If it appears to the director, based upon credible evidence as presented in a written complaint, that a person is operating or offering to operate a fantasy contestwithouthavingobtainedaregistrationorlicense,thedirectormay issue an order to cease and desist the activity.
The director shall set forth in the order the statutes and rules alleged to have been violated, the facts alleged to have constituted the violation, and the requirement that all unauthorized practices immediately cease.
Within ten days after service of theordertoceaseanddesistpursuant to this subsection (2), theperson may request a hearing on the question of whether acts or practices in violation of this part 16 have occurred.
The hearing shall be conducted -4- 1412 pursuant to section 24-4-105BY THE HEARINGS DIVISION OF THE DEPARTMENT IN ACCORDANCE WITH SECTION 44-30-1613.
SECTION 7.
In Colorado Revised Statutes, add 44-30-1613 as follows:
44-30-1613.
Hearings.
FOR THE PURPOSES OF THIS PART 16, ADMINISTRATIVE HEARINGS SHALL BE CONDUCTED BY THE HEARINGS DIVISION OF THE DEPARTMENT.
SECTION 8.
In Colorado RevisedStatutes,44-30-1504,amend (7)(a) as follows:
44-30-1504.
Disclosureofinformationbycorporateapplicants - license required - investigation - criminal history record check - rules-definition.(7)(a) Eachapplicantforasportsbettinglicense,with or as a supplement to the application, shall submit a set of fingerprints to the division;CEPT THAT AN APPLICANT WHOSE PRIMARY RESIDENCE IS LOCATED OUTSIDE OF THE UNITED STATES IS NOT REQUIRED TO SATISFY THIS REQUIREMENT UNLESS THE COMMISSION DETERMINES THAT THE APPLICANTISSOREQUIRED .Thedivisionshallforwardthefingerprintsto theColoradobureauofinvestigationforthepurposeofconductingastate and national fingerprint-based criminal history record check utilizing recordsof theColoradobureauof investigationandthefederalbureauof investigation.
Onlythe actual costs of the record check shall be borne by the applicant.
Nothing in this subsection (7) precludes the division from making further inquiries into the background of the applicant.
SECTION 9.
InColoradoRevisedStatutes,26-13-118.7,amend (2) as follows:
26-13-118.7.
Gambling winnings - interception - rules.
(2) Upon receipt from the registry operator of a payment and -5- 1412 accompanyinginformationpursuanttosection44-33-105(2)(b),thestate department,THROUGHTHECASINO ,SPORTSBETTINGOPERATOR INTERNET SPORTS BETTING OPERATOR ,RACETRACK , OR OFF-TRACK BETTING FACILITY,shallnotifytheobligatedparentinwritingthatthestateintends tooffsettheparent'schildsupportdebt,childsupportarrearages,orchild support costs against the parent's winnings from limited gaming, SPORTS BETTING, or from pari-mutuel wagering on horse or greyhound racing.
The notice shMUST 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.
InColoradoRevisedStatutes,44-30-1503,amend (2)(a)(IV) as follows:
44-30-1503.
Licenses - rules.
(2) (a) A license shall be revoked upon a finding that the licensee has:
(IV) EXCEPT AS REQUIRED BY SECTION44-30-1516, intentionally refused to pay a prizeSH WINNINGS in the licensee's possession to a person entitled to receive the prizeINNINGS under this part 15.
SECTION 11.
In ColoradoRevisedStatutes,add44-30-1516as follows:
44-30-1516.
Duties of licensees under the gambling payment intercept act.
BFORE MAKING A PAYMENT OF CASH WINNINGS ,A LICENSEESHALLCOMPLYWITHTHEREQUIREMENTSOFARTICLE 33OFTHIS TITLE44.
SECTION 12.
In Colorado RevisedStatutes,44-33-102,amend (1)(c) and (1)(f) as follows:
44-33-102.
Legislative declaration.
(1) The general assembly hereby finds and declares that:
-6- 1412 (c) Children are adversely affected when parents divert their financial support to limited gaming,RTS BETTING , and pari-mutuel wagering;
(f) Victims of crime and all the people of the state are adversely affected when criminal offenders divert restitution to limited gaming, SPORTS BETTING, and pari-mutuel wagering;
SECTION 13.
In Colorado RevisedStatutes,44-33-103,amend (1) and (3) as follows:
44-33-103.
Definitions.
As used in this article 33, unless the context otherwise requires:
(1) "Licensee" means a licensee as defined in section 44-32-102 (14), orn operator or retail gaming licensee under section 44-30-501 (1)(b) or (1)(c),INTERNET SPORTS BETTING OPERATOR AS DEFINED IN SECTION44-30-1501(5), OR A SPORTS BETTING OPERATOR AS DEFINED IN SECTION44-30-1501 (11).
(3) "Payment" means cash winnings from limited gaming,OM SPORTS BETTING, or from pari-mutuel wagering on horse or greyhound racingpayablebyalicenseeforwhichthelicenseeisrequiredtofileform W-2G, or a substantiallyequivalent form, with the United States internal revenue service.
SECTION14.
In Colorado RevisedStatutes,44-30-302,amend (1) introductory portion, (1)(u), and (1)(v);
and add (1)(w) as follows:
44-30-302.
Commission - powers and duties - rules.
(1) In addition to any other powers and duties set forth in this part 3, and notwithstanding the designation of the Colorado limited gaming control commission under section 44-30-201 as a type 2 transfENTITY, the commissionshallnonethelesshave HAS thefollowingpowersandduties:
-7- 1412 (u) To demand, at any time when business is being conducted, access to and inspection, examination, photocopying, and auditing of all papers, books, and records of applicants and licensees, on their premises or elsewhere as practicable and in the presence of the licensee or the licensee's agent, pertaining to the gross income produced by any establishment or activity licensed under this article 30;
to require verification of income and all other matters affecting the enforcement of the policies of the commission or any provision of this article 30;
and to impound or remove all papers, books, and records of applicants and licensees, without hearing, for inspection or examination;
and (v) To prescribe voluntary alternative methods for the making, filing, signing, subscribing, verifying, transmitting, receiving, or storing of returns or other documenAND (w) T O DETERMINE WHETHER PERSONS THAT ARE NOT LICENSED BY THE COMMISSION TO CONDUCT SPORTS BETTING OR LIMITED GAMING OPERATIONS ARE OFFERINGTOONE OR MORE MEMBERS OFTHE PUBLIC ,IN ANY CITY ,TOWN ,CITY AND COUNTY,OR COUNTY :
(I) UNLICENSED SPORTS BETTING OPERATIONS;
(II) UNLICENSED INTERNET SPORTS BETTING OPERATIONS;OR (III) UNLICENSED ESTABLISHMENTS THAT ALLOW THE USE OF EQUIPMENT OR DEVICES THAT QUALIFY AS SLOT MACHINES OR ARE USED TO PLAY ROULETTE OR CRAPS .
SECTION 15.
In Colorado Revised Statutes, add 44-30-837 as follows:
44-30-837.
Conducting gaming activities without a license.
(1) A PERSON SHALL NOT OFFER SPORTS BETTING OR ONE OR MORE GAMES , AUTHORIZED AS "LIMITED GAMING ",TO THE PUBLIC WITHOUT -8- 1412 POSSESSINGTHEREQUIREDLICENSEFROMTHECOMMISSIONTOCONDUCT :
(a) SPORTS BETTING OPERATIONS ;
(b) NTERNET SPORTS BETTING OPERATIONS ;OR (c) OPERATIONS USINGEQUIPMENT ORDEVICESTHAT QUALIFYAS SLOT MACHINES OR ARE USED TO PLAY ROULETTE OR CRAPS .
SECTION16.
In Colorado RevisedStatutes,44-30-809,amend (1), (3), and (4) as follows:
44-30-809.
Age of participants - penalties - applicability.
(1) (a) It is unlawful for anyperson WHO IS LESS THANtwenty-one years of age to (I) Linger in the gaming area of a casino;
(II) Sit on a chair or be present at agamingtable,slotmachine, or other area in which gaming is conducted;
or (III) participate,play,be allowed to play, place wagers, or collect winnings, whether personallyor throughan agent, in or fromanylimited gaming game or slot machines.
(b) Subsections (1)(a)(I) and (1)(a)(II) of this section shall not apply to a person employed bythe casino in which the person is present.
(c) Nothing in subsection (1)(a) of this section shall prevent any person under twenty-one years of age from passing through a casino to nongaming areas.
(3) (a) It is unlawful for anylicensee to permit anyperson who is less than twenty-one years of age to (I) Linger in the gaming area of a casino;
(II) Sitona chair or be present at a gaming table, slot machine, or other area in which gaming is conducted;
or (III) participate, play, place wagers, or collect winnings, whether -9- 1412 personally or through an agent, in or from any limited gaming game or slot machine.
(b) Subsections (3)(a)(I) and (3)(a)(II) of this section shall not applyto a person employed by the casino in which the person is present.
(c) Nothing in subsection (3)(a) of this section shall prevent any person under twenty-one years of age from passing through a casino to nongaming areas.
(4) Any person violating any of the provisions of this section commits a class 2 misdemeanor and shall be punished as provided in section 18-1.3-50IS SUBJECT TO THE FOLLOWING CIVIL AND CRIMINAL PENALTIES:
(a) FOR A FIRST OFFENSE, A CIVIL PENALTY OF FIVE HUNDRED DOLLARS ;
(b) FOR A SECOND OFFENSE,A CIVIL PENALTY OF ONE THOUSAND DOLLARS ;AND (c) OR A THIRD OR SUBSEQUENT OFFENSE ,THE PERSON SHALLBE CHARGED WITH A CLASS 2 MISDEMEANOR AND PUNISHED AS PROVIDED IN SECTION18-1.3-501.
SECTION 17.
Act subject to petition - effective date.
Sections10,11,12,13,and14ofthisacttakeeffectJuly1,2023,andthe remainder of this act takes effect at 12:01 a.m.
on the day following the expirationof the ninety-dayperiod afterfinaladjournmentof thegeneral assembly;exceptthat,ifareferendumpetitionisfiledpursuanttosection 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, 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 2022 and, in such case, will take effect -10- 1412 onthedateoftheofficialdeclarationof thevotethereonbythegovernor;
except that sections 10, 11, 12, 13, and 14 take effect July 1, 2023.
-11- 1412