Meeting details

Date: April 17, 2013

Location: Secretary of State’s Office, Blue Spruce Conference Room, 1700 Broadway, Denver, CO

Members present: Dan Gincig, Beau Williams, Tom Bednark, Rick Johnson

Members absent: Vera Craven

Secretary of State officials present: Mike Hardin, Greg Lestikow, Shannon Bee, Brian Gryth, Lisa Marty, Larry Runn, D.J. Davis

Meeting was called to order at 10:05 A.M. 

The Pledge of Allegiance was conducted along with a moment of silence for the Boston Marathon tragedy.

A motion was made by Tom Bednark to approve the February 20, 2013, meeting minutes as presented.  The motion was seconded by Chairman Gincig and approved by unanimous vote of the Board.

Potential Board members

Rick Johnson was introduced as the new member of the Board.  He is a member of the Longmont Moose #1548.

Pending new board members include Perry Jultak and Donny Glassburn.
Mr. Jultak and Mr. Glassburn’s applications are awaiting signature by the appropriate appointing authority in the legislature.

Mike Hardin from the Secretary of State’s office introduced the Business and Licensing Deputy Director, D.J. Williams and Larry Runn, the new Lead Investigator for charitable and bingo compliance and investigations.  These individuals and their positions will improve project management and help grow the Non Profit Section of the Licensing Division.

Runge presentation

Mike Hardin introduced Jon Runge of Runge Consulting Group, L.L.C.  Mr. Runge was commissioned to perform a study on the Colorado bingo market for the Secretary of State’s office.  Mr. Runge has 30 plus years in marketing, working 20 of those years with Coors and 10 with American Waterworks.  Mr. Runge presented the findings from his 4 ½ month study of bingo which included surveys and interviews with licensees, landlords, players, non-players, suppliers, other states regulating bingo and halls.

Mr. Runge’s presentation was recorded and will be available on the Secretary of State’s website along with the PDF of the PowerPoint.

After Mr. Runge’s presentation there were questions including:

Mr. Rick Cody Games Manager for American Legion #161 – wanted to know how the responses related to the number of licensees.  The results were consistent with the number of licensees.

Others were interested in Mr. Runge’s ideas for next steps.  Mr. Runge has provided the Secretary of State’s office with his recommendations which are being reviewed by the Secretary of State’s office for any possible constitutional and statutory changes, potential resource changes and impacts on everyone.  Greg Lestikow is working on this comprehensive plan.

Legislative issues

There was discussion about a committee hearing today (4-19-2013) regarding legislation to allow for electronic-only games and increase the number of games per occasion.  The casinos are interested in the outcome of this bill because the definition of the electronic devices in the bill could be considered class 3 devices.  Class 3 devices are considered slot machines and would then be unconstitutional within the realm of bingo.

Mike Hardin addressed his concerns with regard to holes in the bill especially as they relate to rural organizations, the gaming commission, and the electronic device definition. Brian Gryth, attorney for the Secretary of State’s office, discussed the office’s concerns about the definition and his concern that the Secretary of State or a licensed group could be sued by the gaming commission because of the ambiguity in the definition.

During the Bingo Advisory Board meeting the 1:30 hearing on proposed legislation was reported to be laid over for further discussion.  At this point it was decided that it would be in the best interest of everyone to have more communication and to work together to provide a more comprehensive bill to present to the legislature. 

Corky Kyle, Executive Director of the Colorado Charitable Bingo Association will find out when the hearing has been rescheduled and in the meantime, Greg Lestikow will set up a meeting with the Board and Mr. Kyle to discuss aspects of a more comprehensive bill.

Keeping with the legislative discussion the progressive raffle bill was addressed.  The progressive raffle bill has passed the House, is at its second reading in the Senate and will then be sent to the Governor to sign.  The Secretary of State worked on the fiscal note and with Representative Singer who backed the bill. 

Marc Rosen representing several licensees at Winners Bingo addressed the issue of remuneration as several of his players want to “tip” volunteers and have to be discouraged because of the law regarding remuneration.   Rich Schwartz of the Colorado Springs Children’s Chorale indicated that if any of their volunteers are offered tips, they advise the individual to instead make it as a donation to the organization as a whole.

Mr. Rosen was advised that the Secretary of State would look into tipping and how the law affects this procedure.  The Secretary of State’s office will respond at the next meeting.

Chairman Gincig mentioned the earlier Runge study and the ability of the Secretary of State to consider pooling fees for advertising.  Mike Hardin mentioned it would be in the best interest of everyone to make sure bingo has a good product before it starts to advertise.  This would include best practices and other possible changes suggested by Mr. Runge.

The next board meeting was scheduled for July 10, 2013.

Upon the Motion of Beau Williams and the second of Tom Bednark, the meeting was adjourned.

"To-do" items

• SOS: research tipping and report at next board meeting
• SOS: set meeting with board and Mr. Kyle regarding HB13-1260

Closing

The next meeting of the Board will be July 10, 2013.