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 January 30, 2003, at 10:00 A.M. in the Conference Room of the Office of the Secretary of State, 1560 Broadway, Suite 200, Denver, Colorado 80202, for the consideration of an amendment to Rule 13 (9) (d) of the Rules Covering and Regulating Bingo and Raffles.

Subject of the Proposed Rule-Making

Rule 13 (9) (d) permits the use of concealed face bingo cards for a progressive jackpot bingo game. It was promulgated pursuant to the provisions of HB 02-1302, specifically Section 11, which amended C.R.S. 12-9-107 to allow Colorado bingo-raffle licensees to conduct progressive bingo games.

Progressive bingo is entirely new to Colorado, and relatively new to many of the other jurisdictions that permit it. Furthermore, there is no consistent agreement among those jurisdictions on the advantages (or drawbacks) associated with the use of concealed face cards for progressive games. There is even disagreement within the Colorado bingo-raffle industry, as revealed during the hearings on these rules, about the costs and benefits that may result from the use of concealed face games for progressive bingo.

For these reasons, a "trial period" for the conduct of concealed face progressives was written into Rule 13 (9) (d). It was adopted with a repeal clause, as follows:

(d) A concealed face game may be offered as a progressive jackpot game, provided that it is conducted in compliance with this Rule 13 and all additional applicable requirements of the bingo-raffle law and rules. This subsection (d) is repealed effective March 31, 2003.

The repeal clause is the subject of this rule-making. The rule-making is proposed specifically to consider whether or not, in light of the additional experience with concealed face progressives accumulated since the initial adoption of Rule 13 (9) (d), the repeal clause should be removed.

Authority for the Proposed Rulemaking

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

Copies of Rule 13 may be obtained from the Office of the Secretary of State, 1560 Broadway, Suite 200, Denver, Colorado 80202. Copies will be distributed free of charge, but only one free copy per requesting party can be provided. Rule 13 is also available via the Internet on the Secretary of State web site 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 this matter. 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 as necessary to allow the proceedings to go forward with reasonable promptness and efficiency.