(1) (a) There is hereby
created, in the state treasury, the sports betting fund, referred to in this section as
the fund. The initial appropriation to the division for sports betting regulation and
all subsequent revenues of the division derived from sports betting activity and the
regulation of fantasy contest operators under part 16 of this article 30, including
license fees, fines and penalties, and collection of the sports betting tax, shall be
deposited into the fund. All expenses of the division related to sports betting and
fantasy contest regulation, including the expenses of investigation and prosecution
relating to sports betting and the regulation of fantasy contest operators, shall be
paid from the fund.
(b) All money paid into the fund is continuously appropriated for the
purposes of implementing this part 15 and part 16 of this article 30. Payment shall
be made upon proper presentation of a voucher prepared by the commission in
accordance with other statutes governing payments of liabilities incurred on behalf
of the state and shall not be conditioned on any appropriation by the general
assembly. Receipt of the payment constitutes spending authority by the division.
(2) For fiscal years commencing on or after July 1, 2024, from the money in
the sports betting fund, to the extent the unexpended and unencumbered balance
in the fund so permits, the state treasurer shall distribute an amount equal to all
revenue of the division annually derived from the regulation of sports betting and
fantasy contests, including license fees, fines, and penalties, and the first twenty-nine million dollars annually collected for payment of the sports betting tax as
follows:
(a) Repealed.
(b) First, pay all ongoing expenses related to administering this part 15
incurred by the commission, the department, the division, and any other state
agency from whom assistance related to the administration of this part 15 is
requested by the commission or the director, as determined in accordance with
rules of the commission. When making distributions from the fund as described in
this subsection (2), the state treasurer may withhold an amount reasonably
anticipated to be sufficient to pay the expenses until the next annual distribution.
(c) Second, transfer an amount equal to six percent of the full fiscal year
sports betting tax revenues, or six percent of twenty-nine million dollars, whichever
is less, to the wagering revenue recipients hold-harmless fund, referred to in this
section as the hold-harmless fund, which is created in the state treasury, from
which the state treasurer shall make disbursements as directed by the commission
as follows:
(I) The commission shall accept applications from the following persons and
entities for annual, lump-sum payments to offset any loss of revenue that they can
demonstrate, to the commission's satisfaction, is attributable to sports betting:
(A) The state historical fund created by section 9 (5)(b)(II) of article XVIII of
the state constitution;
(B) The colleges described in section 44-30-702 (4)(a);
(C) The cities of Central, Black Hawk, and Cripple Creek;
(D) The counties of Gilpin and Teller; and
(E) Any persons or entities who benefit from purse funds collected pursuant
to section 44-32-702 (1)(c) or 44-32-705.
(II) The commission shall establish, by rule, an annual schedule for the
acceptance of applications; the form and manner in which applications must be
made; its criteria for verifying the amount of each applicant's revenue loss
attributable to sports betting; and the date on which distributions from the hold-harmless fund are to be made.
(III) If, on the annual date of distribution, there is not sufficient money in the
hold-harmless fund to pay all verified losses, the commission shall direct the state
treasurer to reduce the amount of all claims by a uniform percentage so that
applicants receive a share of the money proportionate to their verified losses.
(IV) On December 31, 2023, and on December 31 of each year thereafter, the
state treasurer shall transfer any money credited to the hold-harmless fund and not
disbursed within two years after the date on which the money is credited to the
hold-harmless fund, as authorized by the commission, to the responsible gaming
grant program cash fund created in section 44-30-1702 (8).
(d) Repealed.
(e) Third, transfer all remaining unexpended and unencumbered money in
the fund that is subject to distribution pursuant to this subsection (2) to the water
plan implementation cash fund created in section 37-60-123.3.
(2.5) (a) For each fiscal year commencing on or after July 1, 2024, from the
money in the sports betting fund, to the extent the unexpended and unencumbered
balance in the fund so permits, the state treasurer shall distribute an amount equal
to all revenue collected for payment of the sports betting tax in excess of twenty-nine million dollars to the water plan implementation cash fund created in section
37-60-123.3.
(b) If a majority of the electors voting in the November 2024 election vote
No/Against on the ballot issue submitted to the voters pursuant to section 44-30-1517 (2), this subsection (2.5) is repealed, effective January 1, 2025.
(3) Nothing in this section permits compounding or accumulation of the
annual adjustment.
(4) Upon request, the state treasurer shall report to the director or the
commission the amount of money available in the fund. The director shall certify all
accounts and expenditures from the fund. The state treasurer shall pay upon
warrants drawn by the controller. The controller is authorized as directed to draw
warrants payable out of the fund upon vouchers properly certified.
(5) The state treasurer shall invest the money in the fund so long as the
money is timely available to pay the expenses of the division. Investments must be
those otherwise permitted by state law, and interest or any other return on the
investments shall be paid into the fund.
(6) The division shall be operated so that, after the initial state appropriation,
its administration of this part 15 and part 16 of this article 30 is financially self-sustaining.
(7) No claim for the payment of any expense of the division relating to
administering this part 15 or part 16 of this article 30 can be made unless it is
against the fund. No other money of the state shall be used or obligated to pay the
expenses of the division or commission related to sports betting or fantasy sports
activity.