Colorado Amendment C, Charitable Bingo and Raffles Amendment (2020)

From Ballotpedia
Jump to: navigation, search
Colorado Amendment C
Flag of Colorado.png
Election date
November 3, 2020
Topic
Gambling
Status
Defeatedd Defeated
Type
Constitutional amendment
Origin
State legislature


Colorado Amendment C, the Charitable Bingo and Raffles Amendment, was on the ballot in Colorado as a legislatively referred constitutional amendment on November 3, 2020. It was defeated.

A "yes" vote supported amending the state constitution to lower the number of years an organization must have existed before obtaining a charitable gaming license from five years to three years and to allow charitable organizations to hire managers and operators of gaming activities so long as they are not paid more than the minimum wage.

A "no" vote opposed changing constitutional requirements for charitable gaming activities, thereby continuing to require that organizations must have existed for five years prior to obtaining a charitable gaming license and require those who operate charitable gaming activities to be unpaid volunteers of the organization.


Supermajority requirement: A 55 percent supermajority vote was required for the approval of Amendment C.

Election results

Colorado Amendment C

Result Votes Percentage
Yes 1,586,973 52.35%

Defeated No

1,444,553 47.65%
Results are officially certified.
Source


Overview

What is charitable gaming?

See also: Background

This constitutional amendment was designed to change certain laws related to charitable gaming in Colorado. Charitable gaming is defined as bingo, pull-tab games, and raffles that are operated by charitable organizations. Charitable organization is defined as "any organization, not for pecuniary profit, that is operated for the relief of poverty, distress, or other condition of public concern" within Colorado. Other qualified organizations that may conduct charitable gaming include chartered branches, lodges, or chapters of national or state organizations, and religious, charitable, labor, fraternal, educational, voluntary firefighters', or veterans' organizations. All net proceeds of charitable gaming must be used exclusively for lawful purposes of the organizations conducting the games. In its annual report for 2018, the National Association of Fundraising Ticket Manufacturers (NAFTM) found that licensed charitable gaming organizations in Colorado had raised $27.27 million in net proceeds from charitable gaming.[1][2] Colorado Measure 4 of 1958, a citizen initiative, amended the constitution to legalize charitable gaming (lotto, bingo, and raffles) by charitable organizations. The measure was approved in a vote of 51% in favor to 49% against.

What would this measure have changed about charitable gaming in Colorado?

See also: Text of measure and ballot language

The amendment would have required charitable organizations to have existed for three years before obtaining a charitable gaming license instead of the existing constitutional requirement of five years. The amendment would have allowed charitable organizations to hire managers and operators of gaming activities so long as they are not paid more than the minimum wage. As of 2020, the constitution required those who operate charitable gaming activities to be a member of the organization working as an unpaid volunteer.[3]

According to an analysis by the Legislative Council Staff, approval of the measure was expected to increase state revenue by $5,200 per year in FY 2020-21 and FY 2021-22 assuming a 5% increase in the number of bingo-raffle licenses. Approval of the measure was expected to increase state expenditures by $82,720 in FY 2020-21 and $37,404 in FY 2021-22 due to increased costs associated with implementing the new law.[4]

How did this amendment get on the ballot?

See also: Path to the ballot

The amendment was introduced as House Concurrent Resolution 20-1001 on June 1, 2020. The measure's prime sponsors were Representatives Jonathan Singer (D) and James Wilson (R) and Senators Jim Smallwood (R) and Nancy Todd (D). It was passed in the House on June 10, 2020, in a vote of 63-1 and in the Senate on June 15, 2020, in a vote of 28-5.

Text of measure

Ballot title

The ballot title for Amendment C was as follows:

Shall there be an amendment to the Colorado constitution concerning the conduct of charitable gaming activities, and, in connection therewith, allowing bingo-raffle licensees to hire managers and operators of games and reducing the required period of a charitable organization's continuous existence before obtaining a charitable gaming license?[5]

Summary and analysis

The summary and analysis provided for this measure in the 2020 State Ballot Information Booklet are available on page 15 at this link.

Fiscal impact statement

The fiscal impact statement was as follows:[6]

State revenue. Beginning in state budget year 2020-21, Amendment C will increase

state revenue by about $5,000 per year as a result of additional application and renewal fees for bingo-raffle licenses, based on an assumption of approximately 50 new applicants paying the current fee of $100. The measure may also increase state revenue from the administrative fee assessed on the charitable gaming proceeds received by bingo-raffle license holders. The administrative fees from new licensees help offset the increased state spending.

State spending. Amendment C increases state spending by about $83,000 in state budget year 2020-21, and by about $37,500 per state budget year in future years. This spending is required to process additional bingo-raffle licenses, conduct additional compliance investigations, and make changes to the computer system and reporting tools used for bingo-raffle licensing.[5]

Constitutional changes

See also: Article XVIII, Colorado Constitution

The measure would have amended Section 2 of Article XVIII of the state constitution. The following underlined text would have been added and struck-through text would have been deleted: Note: Use your mouse to scroll over the below text to see the full text.

Section 2. Lotteries prohibited - exceptions. (1) The general assembly shall have no power to authorize lotteries for any purpose; except that the conducting of such games of chance as provided in subsections (2) to (4) of this section shall be lawful on and after January 1, 1959, and the conducting of state­supervised lotteries pursuant to subsection (7) of this section shall be lawful on and after January 1, 1981.

(2) No game of chance pursuant to this subsection (2) and subsections (3) and (4) of this section shall be conducted by any person, firm, or organization, unless a license as provided for in this subsection (2) has been issued to the firm or organization conducting such games of chance. The secretary of state shall, upon application therefor on such forms as shall be prescribed by the secretary of state and upon the payment of an annual fee as determined by the general assembly, issue a license for the conducting of such games of chance to any bona fide chartered branch or lodge or chapter of a national or state organization or to any bona fide religious, charitable, labor, fraternal, educational, voluntary firemen's or veterans' organization which that operates without profit to its members and which that is registered with the Secretary of State and has been in existence continuously for a period of five three years immediately prior to the making of said its application for such license or, on and after January 1, 2024, for such different period as the General Assembly may establish pursuant to subsection (5) of this section and has had during the entire five-year period of its existence a dues-paying membership engaged in carrying out the objects of said corporation or organization, such license to expire at the end of each calendar year in which it was issued.

(3) The license issued by the secretary of state shall authorize and permit the licensee to conduct games of chance, restricted to the selling of rights to participate and the awarding of prizes in the specific kind of game of chance commonly known as bingo or lotto, in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random and in the specific game of chance commonly known as raffles, conducted by the drawing of prizes or by the allotment of prizes by chance.

(4) Such games of chance shall be subject to the following restrictions:

(a) The entire net proceeds of any game shall be exclusively devoted to the lawful purposes of organizations permitted to conduct such games.
(b) No person except a bona fide member of any organization may participate in the management or operation of any such game.
(c) No person may receive any remuneration or profit in excess of the applicable minimum wage for participating in the management or operation of any such game.[5]

Readability score

See also: Ballot measure readability scores, 2020
Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The Colorado State Legislature wrote the ballot language for this measure.


The FKGL for the ballot title is grade level 29, and the FRE is -31. The word count for the ballot title is 48, and the estimated reading time is 12 seconds.


Support

Yesonclogo.png

The Colorado Charitable Bingo Association led the campaign in support of Amendment C.[7]

Legislative sponsors

The measure's prime sponsors were Representatives Jonathan Singer (D) and James Wilson (R) and Senators Jim Smallwood (R) and Nancy Todd (D).

Supporters

Organizations

  • Colorado Charitable Bingo Association
  • Progress Now Colorado


Arguments

  • Corky Kyle, executive vice president of the Colorado Charitable Bingo Association: "There’s been tremendous change in the acceptance of gaming in Colorado. I mean, we’ve got horse-racing, we’ve got off-track betting, we’ve got sports betting and we have casinos... That has caused some real harm for nonprofits. ... [Amendment C] will allow us to reinvent bingo so that we can meet the changing demands of the players. Things have changed, and we need to change with it."

Official arguments

  • Official Blue Book argument: "Bingo-raffle games are an opportunity for nonprofit organizations to raise funds for their programs. Allowing nonprofit organizations to compensate workers reduces the burden on nonprofits to provide volunteers to operate the games. Expanding licenses to newer nonprofit organizations removes a barrier and provides them with additional fundraising opportunities. By increasing access to bingo-raffle fundraising, this measure may help increase funding for nonprofit organizations."


Opposition

Official arguments

  • Official Blue Book argument: "Professionalizing bingo-raffle operations undermines their charitable fundraising purpose. Paying workers increases overhead to operate games, potentially reducing the amount of money nonprofit organizations are able to raise and dedicate to their core mission. By removing the requirement that workers be volunteers and expanding the number of nonprofits that participate, bingo-raffle games become more like for-profit gambling than charitable fundraising."


Campaign finance

See also: Campaign finance requirements for Colorado ballot measures

The Colorado Charitable Bingo Association registered to support Amendment C but did not report campaign finance activity.[8]

Media editorials

See also: 2020 ballot measure media endorsements

Support

  • Journal-Advocate Editorial Board and Fort Morgan Times Editorial Board: "Amendment C would allow NPOs to compensate those running the fundraiser with meals, payment or other compensation up to the minimum wage. Opponents claim that paying workers increases overhead, thus diminishing the fundraising ability of the event. We would argue that, in fact, it opens more opportunities for NPOs to sponsor games of chance as fundraisers and have them run in a more professional manner. The 'increased overhead' would be more than offset by greater fundraising opportunity for each event."
  • Steamboat Pilot & Today Editorial Board: "We recommend a 'yes' on Amendment C. We see little downside to this measure, which would benefit charities."
  • Durango Herald Editorial Board: "When someone suggests going through the overwritten Colorado constitution to lighten it up, dropping bingo and raffle rules is a good example why. Yes on Amendment C."
  • Vail Daily Editorial Board: "If you’re unsure what charitable gaming is: Think bingo, pull-tab games or raffles that are run by charitable organizations, including some in Eagle County, to raise funds for noble causes. This amendment just makes it easier for nonprofits looking to do good — from chartered branches, lodges, or chapters of national or state organizations, and religious, charitable, labor, fraternal, educational, voluntary firefighters’, or veterans’ organizations — to raise money through these kinds of games."
  • Boulder Weekly Editorial Board: "There’s no downside to this — more charities can raise more funds and more people get paid for their work. Vote yes."


Opposition

  • Colorado Springs Indy Editorial Board: "This measure would allow for-profit companies to organize nonskilled gambling games of chance for nonprofits. Professionalizing bingo and raffle operations undermines their charitable fundraising purpose. By removing the requirement that workers be volunteers and expanding the number of nonprofits that can and will market games of chance, bingo and raffle games become more like for-profit gambling than charitable fundraising. Vote No on Amendment C."


Background

Charitable gaming legalization in Colorado (1958)

Colorado Measure 4 of 1958, a citizen initiative, amended the constitution to legalize charitable gaming (lotto, bingo, and raffles) by charitable organizations. The measure was approved in a vote of 51% in favor to 49% against.

Charitable gaming in other states

According to Lets Gamble USA, every state allows charitable gaming except Hawaii, South Carolina, Tennessee, and Utah. According to the National Association of Fundraising Ticket Manufacturers 2018 annual report, the top ten states with the highest net proceeds from charitable gaming were as follows:[1][9]

  • Minnesota ($83.16 million);
  • Indiana ($68.43 million);
  • Michigan ($60.83 million);
  • Kentucky ($49.84 million);
  • New York ($39.77 million);
  • Alaska ($35.22 million);
  • Texas ($32.94 million);
  • Virginia ($27.69 million);
  • Colorado ($27.27 million); and
  • Washington ($26.05 million).

The 2018 annual report may be found here.

Referred amendments on the ballot in Colorado, 1999-2019

From 1999 through 2019, the state legislature referred 29 constitutional amendments to the ballot. Voters approved 15 and rejected 14 of the referred amendments. All of the amendments were referred to the ballot for elections during even-numbered election years. The average number of amendments appearing on even-year ballots was between 2 and 3. The approval rate of referred amendments at the ballot box was 51.72 percent during the 20-year period from 1996 through 2016. The rejection rate was 48.28 percent.

Legislatively-referred constitutional amendments, 1999-2019
Total number Approved Percent approved Defeated Percent defeated Annual average Annual median Annual minimum Annual maximum
49 31 63.27% 18 36.73% 2.88 3 0 6

Path to the ballot

See also: Amending the Colorado Constitution

To put a legislatively referred constitutional amendment before voters, a two-thirds (66.67%) vote is required in both the Colorado State Senate and the Colorado House of Representatives.

The amendment was introduced in the House as House Concurrent Resolution 20-1001 on June 1, 2020. The measure's prime sponsors were Representatives Jonathan Singer (D) and James Wilson (R) and Senators Jim Smallwood (R) and Nancy Todd (D). It was passed in the House on June 10, 2020, in a vote of 63-1 with one Representative excused. The measure was passed in the Senate on June 15, 2020, in a vote of 28-5 with two Senators excused.[3]

Vote in the Colorado House of Representatives
June 10, 2020
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 44  Approveda
YesNoNot voting
Total6311
Total percent96.92%1.54%1.54%
Democrat4100
Republican2211

Vote in the Colorado State Senate
June 15, 2020
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 24  Approveda
YesNoNot voting
Total2852
Total percent80.00%14.3%5.7%
Democrat1450
Republican1402

How to cast a vote

See also: Voting in Colorado

Click "Show" to learn more about voter registration, identification requirements, and poll times in Colorado.

See also

External links

Footnotes

  1. 1.0 1.1 National Association of Fundraising Ticket Manufacturers, "Links to rules and regulations," accessed July 14, 2020
  2. Colorado Secretary of State, "C.R.S. Title 24 Government - State, Article 21 Secretary of state - Department of State, Part 6 Bingo and raffles law," accessed July 14, 2020
  3. 3.0 3.1 Colorado State Legislature, "House Concurrent Resolution 20-1001," accessed June 11, 2020
  4. Colorado State Legislature, "House Bill 2020-1001 fiscal impact statement," accessed July 9, 2020
  5. 5.0 5.1 5.2 5.3 Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source. Cite error: Invalid <ref> tag; name "quotedisclaimer" defined multiple times with different content Cite error: Invalid <ref> tag; name "quotedisclaimer" defined multiple times with different content
  6. Colorado State Legislature, "2020 Blue Book," accessed September 21, 2020
  7. Colorado Charitable Bingo Association, "Amendment C," accessed October 20, 2020
  8. Colorado TRACER, "COLORADO CHARITABLE BINGO ASSOCIATION," accessed October 20, 2020
  9. Lets Gamble USA, "State-by-State Gambling Laws," accessed August 10, 2020
  10. Colorado Secretary of State, "Mail-in Ballots FAQs," accessed July 16, 2024
  11. Colorado Revised Statutes, "1-7-101," accessed July 16, 2024
  12. 12.0 12.1 Colorado Secretary of State, "Voter Registration FAQs," accessed July 16, 2024
  13. Colorado Secretary of State, "Go Vote Colorado," accessed July 15, 2024
  14. Colorado Secretary of State, "Acceptable Forms of Identification," accessed July 17, 2024