Pursuant to C.R.S. 12-9-103 and the rule-making provisions of the State Administrative Procedures 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 adoption this 28th day of June 2002, effective this date, of an amendment to Rule 16 of the Rules Regulating Bingo and Raffles, which amendment removes the repeal language from section 13) of Rule 16.

Donetta Davidson
Secretary of State

signed
William A. Hobbs
Deputy Secretary of State

Statement of Basis, Purpose, and Specific Statutory Authority

Rules Regulating Bingo and Raffles
Rule 16
"Pull Tab Operation"

Amendment Removing Repeal Clause from Section 13) of Rule 16

Basis and Purpose

This amendment is based on the Bingo and Raffle Law, article 9 of title 12 Colorado Revised Statutes, specifically the provisions defining and regulating pull tab activities, as those provisions are modified by sections 1 and 11 of House Bill 02-1321, "Concerning the Regulation of Games of Chance by the Secretary of State. . ."

It is the purpose of this amendment to conform Rule 16 to the terms of newly enacted HB 02-1321. Sections 1 and 11 of the legislation amend C.R.S. 12-9-102 and 12-9-107 to provide for the distribution, use, and play of "last sale" pull tabs in Colorado. Section 13) of Rule 16 also provides for the use of "last sale" pull tabs in Colorado. Section 13) was repealed early in 2001, however, when it came to the attention of the Secretary of State that "last sale" pull tabs were no longer statutorily permissible after a 1999 amendment to the games of chance definitions at C. R. S. 12-9-102.

The repeal of section 13) was to take effect on January 1, 2002. The effective date of the repeal was extended to July 1, 2002, however, to allow the 2002 General Assembly time to amend the pull tab definition again if the prohibition of "last sale" pull tabs turned out to be, as many interested parties felt it was, an unintended consequence of the earlier amendment to that definition. The relevant amendments were made by HB 02-1321, as cited above, so the repeal language now must be removed from section 13).

Specific Statutory Authority

This rule is promulgated in accord with the Colorado Administrative Procedures Act, C.R.S. 24-4-103, "Rule-making procedure," and pursuant to the specific rule-making 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."

Office of the Secretary of State

Rules Regulating Bingo and Raffles
Rule 16
"Pull Tab Operation"

Amendment Removing Repeal Clause from Section 13) of Rule 16

13) A bingo-raffle licensee may sell or pay in full any pull tab deal which offers a prize for the "Last Sale" in the deal if the bingo-raffle licensee:

a. Completes the forms required by the Secretary of State for each such "Last Sale" pull tab prize paid, and retains the same for four months after the end of the quarter in which the prize was paid.

b. Verifies the identification of the winner of the "last Sale" pull tab prize, regardless of amount, including such person's name, address, and driver's license number or Colorado identification number. No "Last Sale" prize may be paid without such verified information. This section 13) is repealed. Effective July 1, 2002.

Statement of Findings and Reasons for Temporary Adoption

Office of the Secretary of State

Rules Regulating Bingo and Raffles
Rule 16
"Pull Tab Operation"

Amendment Removing Repeal Clause from Section 13) of Rule 16

The Secretary of State finds that immediate adoption and prompt effectiveness of this amendment are imperatively necessary to comply with law, and that compliance with the full requirements of section 24-4-103 C.R.S. would therefore be contrary to the public interest, for the following reasons.

Pursuant to the above cited statute, a permanent rule cannot take effect sooner than "twenty days after publication of the rule as finally adopted" (24-4-103 (5) C.R.S.), but a temporary rule can become effective upon adoption (24-4-103 (6) C.R.S.). This amendment must therefore be both temporary and permanent because its purpose is to remove a repeal clause before its July 1, 2002, effective date. Immediate (as well as permanent) removal of the clause is necessary because it conflicts with the provisions of House Bill 02-1321, enacted during the 2002 legislative session and signed by the Governor on June 7, 2002.

This possible conflict was anticipated at the time of promulgation of the repeal clause, and it was given a delayed effective date on that account (see Statement of Basis and Purpose). Even with the delayed date, however, there was insufficient time after the enactment of HB 1321 to have a permanent amendment promulgated, published, and in effect by July 1. A temporary repeal is necessary to bridge the gap created by the notice and post-adoption waiting periods mandated by C.R.S. 24-4-103 (5) for permanent rule-making.