6EB0F26DE31FEA5287258AFC004F34C8 Hearing Summary

PUBLIC
BILL SUMMARY For HB24-1227

JOINT COMMITTEE COMMITTEE ON LEGAL SERVICES
Date Apr 11, 2024
Location Old State Library

HB24-1227 - Referred to the Committee of the Whole - Consent Calendar

08:25:20 AM

Representative Winter
joined the meeting in person rather than online.

08:25:50 AM

Vice-chair Gardner
and Senator Gonzales, prime sponsors, asked Brita Darling, Senior Attorney
with the Office of Legislative Legal Services (OLLS) to present House Bill
24-1227, the Annual Rule Review bill, concerning implementation of the
of the committee's recommendations in connection with legislative review
of state agencies' rules. The committee sat as the Senate committee of
reference for the bill.

08:31:00 AM

Representative Soper
offered amendment L.002 and had the amendment distributed to the committee
members.

08:31:20 AM

Nicholas Green, representing
Underdog Sports as General Counsel, testified in support of L.002. Mr.
Green responded to committee members' questions regarding the fantasy sports
contest rule, the impact of not adopting this amendment, their engagement
with the Ute Mountain Ute Tribe and the Southern Ute Tribe, addressing
this issue via legislation rather than Rule Review, average entry fee for
fantasy contests, and if these contests are subject to the ten percent
tax adopted by the voters in 2019 in Proposition DD.

08:48:04 AM

Vice-chair Gardner called the next witness to testify. Joshua Diamond, representing PrizePicks as Outside Counsel, and Shane Saum, Director of Governmental Relations and Regulatory Compliance for PrizePicks, testified in support of L.002. Both witnesses answered committee members' questions regarding Colorado's unique regulation of fantasy sports, the difference between player versus player games and player versus house games, average entry fee for a contest, whether PrizePicks pays the ten percent tax that Colorado imposes on sports wagering, contributions to the problem gaming fund, addressing this issue through legislation rather than the Rule Review process, and the history of the company's licensure for these contests.

09:02:32 AM

Senator Hansen asked
to
hear testimony from the Department of Revenue regarding L.002.

09:02:40 AM

Jimmy Reed, Legislative
Director for the Department of Revenue, testified in opposition to L.002,
citing that the fantasy contest act has fewer consumer protections than
the sports betting act, including lower age restriction, lack of responsible
gaming initiative, and they are not subject to the same ten percent tax
as sports betting, as voted on by the people of Colorado. Mr. Reed answered
members' questions regarding the change in licensure for sports contests,
the percentage of tax and annual amount of tax the fantasy contest companies
pay, and the differences between the statue and the rule.

09:10:53 AM

Representative Soper
provided closing remarks in support of amendment L.002, and Senator Gonzales
and Representative Mabrey objected to the amendment.

09:15:08 AM	Motion	Adopt amendment L.002
	Moved	Soper
	Seconded

	Daugherty	No
	Gonzales	No
	Hansen	No
	Mabrey	No
	Roberts	No
	Soper	Yes
	Van Winkle	Yes
	Winter T.	Yes
	Gardner	Yes
	Joseph	No
		YES: 4 NO: 6 EXC: 0 ABS: 0 FINAL ACTION: FAIL

09:16:18 AM	Motion	Refer House Bill 24-1227 to the Committee of the Whole and with a recommendation that it be placed on the consent calendar.
	Moved	Gonzales
	Seconded

	Daugherty	Yes
	Gonzales	Yes
	Hansen	Yes
	Mabrey	Yes
	Roberts	Yes
	Soper	Yes
	Van Winkle	Yes
	Winter T.	Yes
	Gardner	Yes
	Joseph	Yes
	Final	YES: 10 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

HB24-1227 - Referred to the Committee of the Whole - Consent Calendar

Colorado General Assembly