Local Government Limited Gaming Impact Fund

Limited gaming - state share - local government limited gaming impact fund - increase in transfer - definition of documented gaming impacts - use of gambling addiction account - appropriation. The Colorado constitution authorizes limited gaming in specific geographic areas of the state. There is a tax imposed on limited gaming, the rate of which is set by the Colorado limited gaming control commission, but the constitution provides that the rate may not exceed 40% of the adjusted gross proceeds. The proceeds of the tax are credited to the limited gaming fund where the expenses of the commission are first paid and then the money is distributed 50% to the state share, 28% to the state historical fund, 12% to Gilpin and Teller counties, and 10% to the cities of Central, Black Hawk, and Cripple Creek.

The state share is transferred for various items, with the remainder being credited to the general fund, including $5 million to the local government limited gaming impact fund. Of this fund, 98% is allocated to the limited gaming impact account and 2% is allocated to the gambling addiction account. This fund is administered by the department of local affairs and is used for grants to eligible local governmental entities for documented gaming impacts.

The act annually increases the amount of money credited to the limited gaming impact fund by an amount equal to the growth of the state share from the previous fiscal year, plus an amount equal to the projected direct and indirect costs to administer the local government limited gaming impact grant program.

The act also specifies that "documented gaming impacts" includes the provision of gambling addiction counseling, including prevention and education, to Colorado residents.

Of the 2% allocated to the gambling addiction account, for the 2018-19 and 2019-20 state fiscal years, $100,000 is appropriated in each fiscal year as follows:

• $50,000 to the department of local affairs to study and establish in policies and procedures what constitutes the "documented expenses, costs, and other impacts incurred directly as a result of limited gaming"; and
• $50,000 to the department of human services to develop a plan for a successful gambling addiction program.
  (Note: This summary applies to this bill as enacted.)