Colorado § 44-40-110 - Conflict of interest.

§ 44-40-110. Conflict of interest.

(1) Members of the commission and employees of the division are declared to be positions of public trust and, therefore, in order to ensure the confidence of the people of the state in the integrity of the division, its employees, and the commission, the following restrictions shall apply:

(a) No member of the commission or employee of the division, including the director, and no member of their immediate families, shall have any personal pecuniary interest in any lottery or in the sale of any lottery tickets or shares or in any corporation, association, or firm contracting with the state to supply gaming equipment or materials for use in the operation of the lottery or in any corporation, association, or firm licensed as a sales agent under this article 40. Employment by any political subdivision, or service on the governing body or on any board, agency, or commission of any political subdivision that is entitled to receive a portion of the proceeds of the lottery shall not constitute an interest prohibited by this section, except for the purposes of appointment to or service on the commission.

(b) No member of the commission or employee of the division, including the director, and no member of their immediate families, shall receive any gift, gratuity, employment, or other thing of value from any person, corporation, association, or firm that contracts with or that offers services, supplies, materials, or equipment used by the division in the normal course of its operations.

(c) No member of the commission or employee of the division, including the director, and no member of their immediate families, shall purchase any ticket for any lottery conducted under this article 40; except that lottery investigators may purchase lottery tickets when authorized to do so by the director for investigative purposes. No person described in this subsection (1)(c) shall be eligible to receive any prize awarded in such a lottery.

(d) No person, corporation, or firm that contracts with the division or that offers services, supplies, materials, or equipment used by the division in the normal course of its operations shall offer any gift, gratuity, employment, or other thing of value to any commission member, employee of the division, or members of their immediate families except as authorized by rules promulgated pursuant to subsection (1)(b) of this section.

(e) No member of the commission or employee of the division who terminates his or her relationship with the commission or the division shall, for a period of one year from the date of termination of membership on the commission or employment with the division, as applicable, accept employment with any lottery vendor or represent any lottery vendor before the division or the commission.

(f) The commission shall adopt by rule a code of ethics that shall be binding upon all of its members. Each member of the commission shall complete training at least once each year on the code and shall further certify on an annual basis that he or she is knowledgeable about the code and has no conflicts of interest proscribed by this section.

Source: L. 2018: Entire article added with relocations, (HB 18-1027), ch. 31, p. 349, § 2, effective October 1.

Editor's note: This section is similar to former § 24-35-209 as it existed prior to 2018.

ANNOTATION

Exhaustion of administrative remedies was not required by this section with respect to plaintiff's claims that lottery division and lottery commission knew that the last grand prize for a particular scratch game had been claimed, continued to sell tickets for the scratch game, did not inform potential ticket purchasers that the grand prize was no longer available, and continued to represent the availability of the grand prize. This language of the introductory portion to subsection (1) is general in nature and did not establish that plaintiff's claims, if true, would constitute lottery statute violations for which plaintiff could seek administrative remedies. Bazemore v. Colo. State Lottery Div., 64 P.3d 876 (Colo. App. 2002) (decided under former § 24-35-209).