Pursuant to the requirements of C.R.S. 24-4-103, notice of proposed rule-making is hereby given by the Secretary of State. A rule-making hearing will be held on August 2, 2001 at 10:00 A.M. in the Equity Office Conference Room, 1560 Broadway, Suite 1075, Denver, Colorado 80202, for the consideration of proposed amendments and additions to the Rules Covering and Regulating Bingo and Raffles.

Subject of the Proposed Rulemaking

The specific proposals to be considered are:

(1)(a) Addition of new sections to Rule 10, "Workers Shall Not Play", to set minimum ages for bingo occasion games managers and to clarify membership list and bingo worker badge and identification requirements for bingo-raffle license applicants and licensees, and

(b) Conforming amendments to the title of Rule 10;

(2)(a) Amendment of Section (3) of Rule 11, "Allowable Expense Amounts and Rental Agreements", to add a reference to the rental expenses that would be authorized by Rule 11.5, and

(b) Addition to Rule 11 of new sections to detail the disclosures necessary for rental agreements, to specify that payments from bingo-raffle to landlord licensees be by check, and to set standards for determining whether a rental charge is unreasonable;

(3) Addition of new Rule 11.5, "Promotions," to define and regulate the conduct of bingo-raffle promotions that involve the allotment of prizes by chance, to specify that rights to participate in such promotions must be offered free of charge and that only merchandise or other tangible products may be offered as prizes, to set the conditions under which bingo-raffle licensees and landlord licensees may offer promotions, to prohibit games managers from assisting with promotions held during bingo occasions, to prohibit payment by a landlord to members of a bingo-raffle licensee for assistance in the landlord's promotion(s), to specify that promotion prizes shall not be considered as part of the prize limits specified in the bingo-raffle law, and to establish disclosure requirements for promotions;

(4) Amendment of Sections 6 and 9 of Rule 17, "Pull Tab Operation," to detail the procedures and time periods for withdrawal from sale, retention, and return to the manufacturer of a defective pull tab deal or series;

(5) Amendment of Section 7 of Rule 21, "Fines", to increase from 10 to 20 days the time allowed for a licensee to file a request for a fine suspension or reduction;

(6) Addition of new Rule 18.5, "Financial Statements of Bingo-Raffle Licensees", to clarify games of chance reporting procedures and methods, specifically as to reporting of raffles and of expenses incurred in connection with bingo-raffle activities generally; and

(7) Addition of new Rule 23 to clarify the definition of an auxiliary organization or association for the purpose of identifying members who may assist with licensed games of chance activities pursuant to C.R.S . 12-9-107(1)(a).

Authority for the Proposed Rulemaking

These rules are proposed pursuant to the authority delegated to the Secretary of State in C.R.S. 12-9-103(1)(b) to "adopt, amend and repeal rules...governing the holding, operating and conducting of games of chance..."

Copies of the proposals may be obtained from the Office of the Secretary of State, 1560 Broadway, Suite 200, Denver, Colorado 80203, telephone (303) 894-2680 x 321. Copies will be distributed free of charge. Only one copy of the proposals per requesting party can be provided free, however. The proposed rules will also be available via the Internet on the Secretary of State website at www.sos.state.co.us.

The hearing will be held in accord with the provisions of C.R.S. 24-4-103. At the time and place stated in this notice, the Secretary of State will receive written or oral data, views and arguments from anyone interested in the proposed rules. Written submissions must be filed at or before the time set for commencement of the hearing in order to be considered. Oral testimony may be limited in order to allow the proceedings to go forward with reasonable promptness and efficiency.