(1) In addition to any
other powers and duties set forth in this article 40, the commission has the
following powers and duties:
(a) To promulgate rules governing the establishment and operation of the
lottery as it deems necessary to carry out the purposes of this article 40. The
director shall prepare and submit to the commission written recommendations
concerning proposed rules for this purpose. Although the commission is a type 2 entity, as defined in section 24-1-105, the commission has full and exclusive
authority to promulgate rules related to the lottery without any approval by, or
delegation of authority from, the department.
(b) To conduct hearings upon complaints charging violations of this article
40 or rules promulgated pursuant to this article 40, other than any hearings
relating to the granting, suspension, revocation, or renewal of licenses for lottery
sales agents, and to conduct other hearings as may be provided by rules of the
commission;
(c) To carry on a continuous study and investigation of the lottery throughout
the state for the purpose of ascertaining any defects in this article 40 or in the rules
issued under this article 40 whereby any abuses in the administration and operation
of the lottery or any evasion of this article 40 or the rules may arise or be practiced,
for the purpose of formulating recommendations for changes in this article 40 and
the rules to prevent any abuses and evasions, to guard against the use of this
article 40 and the rules as a cloak for the carrying on of organized gambling and
crime, and to ensure that the law and rules shall be in the form and be so
administered as to serve the true purposes of this article 40;
(d) To report immediately to the governor, the attorney general, the speaker
of the house of representatives, the president of the senate, the minority leaders of
both houses, and any other state officers, as from time to time the commission
deems appropriate, any matters that it deems to require an immediate change in
the laws of this state in order to prevent abuses and evasions of this article 40 or
rules promulgated thereunder or to rectify undesirable conditions in connection
with the administration or operation of the lottery;
(e) To require any special reports from the director that it may consider
desirable;
(f) To authorize and issue revenue bonds pursuant to the provisions of
section 44-40-122;
(g) To annually set the amount of the performance bond required of persons
entering into contracts to provide materials, equipment, or supplies used in the
operation of the lottery or to design or install games or lotteries; and
(h) To investigate and participate in multistate agreements and to regulate
multistate lotteries. The director shall act as the commission's agent in the
investigations if the commission so directs.
(2) Except as provided in subsection (3) of this section, rules promulgated
pursuant to subsection (1) of this section must include:
(a) The types of lotteries to be conducted, but no lottery conducted under
this article 40 other than instant scratch games shall be based upon the game of
chance commonly known as bingo, nor shall any lottery be conducted that depends
upon the outcome of any athletic contest except races at state-licensed dog or
horse tracks if approved by the Colorado racing commission;
(b) The price of tickets or shares in the lottery;
(c) The numbers, sizes, and payment of the prizes on the winning tickets or
shares;
(d) The manner of selecting the winning tickets or shares. All drawings shall
be held in public and witnessed by an independent auditor employed by a certified
public accountant firm, and all drawing equipment used in the public drawings must
be examined prior to and after each public drawing by an independent auditor
employed by a certified public accountant firm.
(e) The frequency of the drawing or selection of winning tickets or shares,
without limitation;
(f) Without limit to number, the types of locations where tickets or shares
may be sold; except that the commission shall not promulgate any rule, issue any
order, or adopt any policy or interpretation before July 1, 2017, that authorizes or
permits the purchase of tickets, including instant scratch tickets, or shares by
means of the internet, telephone, computer, or any other electronic device or
equipment that the purchaser can access or use to purchase lottery tickets other
than by doing so personally at a licensed lottery sales agent's physical place of
business;
(g) The method to be used in selling tickets or shares;
(h) The manner and amount of compensation, if any, to be paid licensed sales
agents necessary to provide for the adequate availability of tickets or shares to
prospective buyers and for the convenience of the public;
(i) The manner in which lottery sales revenues are to be collected.
(3) (a) The commission shall promulgate rules pursuant to subsection (1) of
this section for the general administration of all instant scratch games. The rules
must include:
(I) The method to be used in selling instant scratch game tickets;
(II) The method of paying prizes on winning instant scratch game tickets; and
(III) The manner and amount of compensation, if any, to be paid to licensed
sales agents necessary to provide for the adequate availability of instant scratch
game tickets to prospective buyers and for the convenience of the public.
(b) (I) The commission shall establish and approve all instructions governing
instant scratch games. The instructions shall include, but shall not be limited to:
(A) The method for determining instant scratch game winners;
(B) The establishment of claim periods;
(C) The price of instant scratch game tickets;
(D) The numbers and sizes of prizes; and
(E) The method for selecting and validating winning instant scratch game
tickets.
(II) The commission shall publish all approved instructions governing instant
scratch games in a clearly identifiable section on the official website of the state
lottery. The published instructions shall be binding on purchasers and claimants of
instant scratch game tickets.
(III) The procedural rule-making requirements of section 24-4-103 shall not
apply to the commission's duties specified in this subsection (3)(b).