New Rule 24 and Amended Rule 12
Rules Covering and Regulating Bingo and Raffles

Pursuant to C.R.S. 12-9-103, and the rulemaking provisions of the State Administrative Procedure Act, C.R.S. 24-4-103, I, Donetta Davidson, Colorado Secretary of State and bingo-raffle licensing authority, do hereby adopt and give NOTICE of the temporary and permanent adoption this 1st day of October, 2001, of rules to implement House Bill 01-1154, "Concerning the use of electronic bingo devices", specifically new Rule 24 and amendments to Rule 12 of the Rules Covering and Regulating Bingo and Raffles.

Donetta Davidson
Secretary of State

signed
by William A. Hobbs
Deputy Secretary of State

Statement of Justification and Reasons for the Adoption of Temporary Rules

New Rule 24 and Amended Rule 12

Rules Covering and Regulating Bingo and Raffles

This statement is required by and fulfills the requirements of subsection (6) of C.R.S. 24-4-103, "Rule-making – procedure." The rules to which this statement pertains are those to implement House Bill 01-1154, "Concerning the use of electronic bingo devices", specifically new Rule 24 and amendments to Rule 12 of the Rules Regulating Bingo and Raffles.

The Secretary of State is required by C.R.S. 12-9-103 (1) (b) to supervise the administration and enforcement of the Colorado Bingo and Raffles Law and to "adopt, amend and repeal rules and regulations…to the end that games of chance shall be held, operated, and conducted only for the purposes and in conformity with the state constitution and the provisions of this article."

House Bill 01-1154, which takes effect October 1, 2001, adds new provisions to article 9 of title 12 for the purposes of legalizing and regulating the use of electronic bingo player aid devices and computer systems. Prior to the effective date of this legislation, the Secretary of State had no rules in place on this topic and no authority to promulgate such rules; before that date, the statute did not authorize the use of electronic devices to aid the play of bingo.

Rules are necessary for the efficient and effective implementation of the new legislation. To ensure uniform application of and compliance with the provisions of HB 01-1154, and to prevent confusion and misunderstandings in this new area of charitable gaming law, it is essential that that the implementing rules take effect on the same date as the legislation does.

For these reasons, the Secretary of State finds that compliance with the full requirements of C.R.S. 24-4-103 would be contrary to the public interest in this case, and additionally finds that immediate adoption of these rules is imperatively necessary to comply with state law, as well as for the public welfare.

Statement of Basis, Purpose and Specific Statutory Authority

OFFICE OF THE SECRETARY OF STATE
New Rule 24 and Amended Rule 12
Covering and Regulating Bingo and Raffles

Basis and Purpose

These rules are based on the Bingo and Raffles Law, article 9 of title 12 Colorado Revised Statues, specifically on the amendments and additions thereto embodied in HB 01-1154, "Concerning the Use of Electronic Bingo Devises" (enacted March 23, 2001); information obtained from bingo-raffle, supplier/manufacturers, and landlord licensees; and the recommendations of the Bingo-Raffle Advisory Board, made pursuant to the provisions of C.R.S. 12-9-202. It is the general purpose of these rules to clarify and detail the regulatory requirements to which they relate, in order to make such requirements easier to access, understand, and follow. The specific purposes of the individual rule amendments and additions are as follows:

New Rule 24 defines the procedures required to license an electronic device, ruling procedures, and the requirements and conditions that must be met for device distribution and compliance in areas of record keeping, electronic device limitations and requirements, data accessibility by the licensing and authority, and control of the system by the licensee;

The Rule 12 amendment adds a clarification as to the posting of prices separately for the electronic device and the paper which is played on that device.

 Specific Statutory Authority

These rules are promulgated in accord with the Colorado Administrative Procedure Act, specifically C.R.S. 24-4-103, and pursuant to the specific statutory authority granted to the Secretary of State by the Colorado Bingo and Raffles Law at C.R.S. 12-9-103(1), "Licensing authority – powers – duties."