* transfer the licensing of games of chance, such as bingo and raffles, from the Department of State to the Department of Revenue; and

* allow the state legislature to change the department of oversight and the requirement that an organization exist for five years with a dues-paying membership to qualify for a license.

Summary and Analysis

Colorado law allows certain nonprofit organizations to use bingo and raffles to raise money for charity. Bingo and raffles are games in which prizes are won based on randomly picked numbers. Since 1958, the Department of State has regulated these games by issuing licenses, collecting fees, conducting inspections, addressing complaints, and imposing penalties. Currently, organizations must have been in existence for five years with a dues-paying membership to qualify for a license.

Amendment P allows the state legislature to choose a state agency to regulate bingo and raffles. The legislature may also change the requirement that an organization must have operated for five years with a dues-paying membership to qualify for a license. During the 2010 session, the state legislature passed a bill selecting the Department of Revenue to regulate bingo and raffles if Amendment P is adopted.

The Department of Revenue currently regulates casino gambling, licenses casinos and casino employees, conducts compliance audits, and approves casino gambling devices. The department also operates the Colorado Lottery.

Estimate of Fiscal Impact

Under Amendment P, the state will have estimated one-time costs of $116,000 in budget year 2010-11 to move regulation of bingo and raffles to the Department of Revenue. The department requires computer software and other items to bring bingo and raffle licensing into its current gaming operations. These costs will be paid with existing revenue from bingo and raffle licenses.