Colorado § 44-30-1301 - Definitions - local government limited gaming impact fund - rules - report - legislative declaration.

§ 44-30-1301. Definitions - local government limited gaming impact fund - rules - report - legislative declaration.

(1) (a) There is hereby created in the state treasury the local government limited gaming impact fund, and within the fund, there is created the limited gaming impact account and the gambling addiction account. The fund consists of money transferred to the fund pursuant to section 44-30-701 (2)(a)(III) and money appropriated to the fund by the general assembly. Of the money in the fund, ninety-eight percent shall be allocated to the limited gaming impact account and two percent shall be allocated to the gambling addiction account. Money in the limited gaming impact account shall be used to provide financial assistance to eligible local government entities for documented negative gaming impacts and to award grants for the provision of gambling addiction counseling, including prevention and education, to Colorado residents.

(b) As used in this part 13, unless the context otherwise requires:

(I) "Documented negative gaming impacts" means the documented expenses, costs, and other negative impacts that are incurred directly and are explicitly identifiable as a result of limited gaming permitted in the counties of Gilpin and Teller and on Indian lands. "Documented negative gaming impacts" includes the provision of gambling addiction counseling, including prevention and education, to Colorado residents.

(II) "Eligible local governmental entity" means the following local governmental entities:

(A) The counties of Boulder, Clear Creek, Grand, Jefferson, El Paso, Fremont, Park, Douglas, Gilpin, Teller, La Plata, Montezuma, and Archuleta;

(B) Any municipality located within the boundaries of any county set forth in subsection (1)(b)(II)(A) of this section, except the city of Central, the city of Black Hawk, and the city of Cripple Creek, and except that neither the city of Woodland Park nor the city of Victor are eligible local governmental entities prior to July 1, 2002; and

(C) Any special district providing emergency services within the boundaries of any county set forth in subsection (1)(b)(II)(A) of this section.

(III) "Fund" means the local government limited gaming impact fund created in this section.

(IV) "Negative impacts" means impacts that harm, damage, hurt, interfere with, or undermine the eligible local governmental entity, and include, but are not limited to:

(A) Increased infrastructure costs to service the licensed gaming establishment; for example, road repair and utilities;

(B) Increased service costs to service the licensed gaming establishment; for example, police services, fire services, and public transportation;

(C) Decreased number of new businesses and revenue in businesses cannibalized by gaming at a licensed gaming establishment; for example, charitable gaming through bingo or scratch tickets, horse racing and associated horse breeding and training, and a wide range of other possible entertainment industries;

(D) Decreased property values in areas proximate to a licensed gaming establishment;

(E) Increased rates of gambling addiction, increased indices associated with gambling addiction, and increased costs of addressing the following issues: Increased rates of personal bankruptcy; increased rates of divorce, separation, and restraining orders; increased rates of child neglect and abuse; increased rates of mental health problems, self-harm, and suicide; increased rates of crime due to gambling addiction; decreased work productivity; increased treatment and prevention costs to treat problem gambling; and increased prevention costs to prevent problem gambling;

(F) Increased rates of crime, policing, incarceration, and probation services facilitated by the presence of a licensed gaming establishment, including additional alcohol-related crime, money laundering, passing counterfeit, and attracting clientele with antisocial tendencies;

(G) Decreased employment in industries cannibalized by a licensed gaming establishment;

(H) Increased traffic and traffic crashes;

(I) Increased noise; and

(J) Increased socioeconomic inequality, as gambling tends to be regressive.

(V) "Property values" means the sum of the actual value of all property, including the actual value of all tax-exempt property, as of December 31 of the prior year.

(2) (a) (I) After considering the recommendations of the local government limited gaming impact advisory committee created in section 44-30-1302, the money from the limited gaming impact account shall be distributed at the authority of the executive director of the department of local affairs to eligible local governmental entities upon their application for grants to finance planning, construction, and maintenance of public facilities and the provision of public services related to the documented negative gaming impacts; except that the grants must be prioritized:

(A) For eligible local governmental entities that are counties with lower property values compared to the property values of all counties that are eligible local governmental entities; or prioritized for eligible local governmental entities located in counties with lower property values compared to the property values of all counties that are eligible local governmental entities. If an eligible local governmental entity has a jurisdictional boundary that includes more than one county, then the prioritization for that eligible local governmental entity is established based on the county in which the eligible local governmental entity's administrative offices are located.

(B) Based on a methodological approach that incorporates a weighted decision matrix which includes community and impact scoring.

(II) At the end of any fiscal year, all unexpended and unencumbered money in the limited gaming impact account shall remain available for expenditure in any subsequent fiscal year without further appropriation by the general assembly.

(b) and (c) Repealed.

(3) Repealed.

(4) Notwithstanding any other provision of this section, money accruing to the fund on and after July 1, 2019, and any previously transferred unencumbered money in the fund on July 1, 2020, shall be transferred to the general fund. Transfers to the fund shall resume as otherwise provided in this section for any state fiscal year commencing on or after July 1, 2021.

(5) The general assembly hereby finds and declares that:

(a) Grants to eligible local governmental entities from the local government limited gaming impact fund provide very valuable money to those communities, particularly in times of economic distress;

(b) The grants should only be awarded for explicitly identifiable and well-documented negative impacts resulting from limited gaming permitted in the counties of Gilpin and Teller and on Indian lands;

(c) Negative impacts are those impacts that harm, damage, hurt, interfere with, or undermine the eligible local governmental entity; and

(d) The grant awards should be distributed based on the relative need of the county or town, as evidenced by the prioritization requirements set forth in subsection (2)(a)(I) of this section.

Source: L. 2018: (1) amended, (SB 18-191), ch. 291, p. 1794, § 2, effective May 29; entire article added with relocations, (SB 18-034), ch. 14, p. 229, § 2, effective October 1. L. 2020: (1) and (4) amended, (HB 20-1399), ch. 214, p. 1032, § 2, effective June 30. L. 2021: (1), (2)(a), and (2)(b)(I) amended, (2)(c) and (3) repealed, and (5) added, (HB 21-1132), ch. 176, p. 960, § 1, effective May 24. L. 2022: (2)(b)(I) and IP(2)(b)(II) amended, (HB 22-1278), ch. 222, p. 1582, § 209, effective July 1; (2)(b)(I) amended, (HB 22-1278), ch. 222, p. 1595, § 240, effective July 1, 2024. L. 2026: (1)(b)(IV)(H) amended, (HB 26-1237), ch. 117, p. 497, § 95, effective August 12.

Editor's note: (1) This section is similar to former § 12-47.1-1601 as it existed prior to 2018.

(2) Subsection (1) of this section was numbered as § 12-47.1-1601 (1)(a) in SB 18-191. That provision was harmonized with and relocated to this section as this section appears in SB 18-034, resulting in the relettering of the provisions in subsection (1) to conform to statutory format.

(3) (a) For the amendments in section 209 of HB 22-1278 in effect from July 1, 2022, to September 1, 2022, see chapter 222, Session Laws of Colorado 2022. (L. 2022, p. 1582.)

(b) Section 240 of HB 22-1278 amended subsection (2)(b)(II), effective July 1, 2024, but those amendments did not take effect due to the repeal of subsection (2)(b), effective September 1, 2022.

(c) Subsection (2)(b)(III) provided for the repeal of subsection (2)(b), effective September 1, 2022. (See L. 2018, p. 229.)