8 Colo. Code Regs. § 1505-2-15
Current through Register Vol. 47, No. 22, November 25, 2024
Rule 8 CCR 1505-2-15 - Fines15.1 General. The schedule of fines provided in this rule applies to any violation of the Bingo and Raffles Law or rules for which the Secretary of State elects to impose an administrative fine.15.2 Class 1 violations. A Class 1 violation is a willful act that is specifically prohibited by statute or rule and does, may, or is intended to result directly in the profit or enrichment of the violator or any person associated with the violator. 15.2.1 The fine for a Class 1 violation is $175.15.2.2 Class 1 violations include, but are not limited to:(a) Employing a device, scheme, or artifice to defraud or deceive in connection with any charitable gaming activity;(b) Engaging in an act, practice, or conduct that constitutes fraud or deceit, including any intentional misstatement of fact, in charitable gaming operations;(c) Transferring any license issued in accordance with the Colorado Bingo and Raffles Law;(d) Authorizing or permitting any person other than active member of a licensee to assist in the management or operation of games of chance;(e) Conducting more than 220 bingo occasions in one calendar year under color of a single bingo-raffle license;(f) Possessing, using, selling, offering for sale or putting into play any computerized or electro-mechanical facsimile of a pull tab game, any pull tab game not purchased from a licensed supplier and accompanied by a complete supplier's invoice; any pull tab game that is marked, altered, tampered with, commingled or known to be defective; any pull tab game in any unlicensed premises, other than the licensee's own premises; or any pull tab game that does not conform to the definitions and requirements of the Bingo and Raffles Law;(g) Permitting any person under the age of eighteen to purchase the opportunity to participate in a game of chance;(h) Allowing any person other than a licensee's owner, officer, director, member, shareholder of more than 10% of the licensee's ownership interests, or licensed agent to represent a supplier, manufacturer or landlord licensee with regard to any Colorado transaction;(i) Buying, selling, receiving, furnishing, or distributing games of chance equipment to any person in Colorado other than a licensee, a supplier licensee and its licensed agents, or a manufacturer licensee;(j) Filing any falsified and/or materially misleading renewal application or quarterly financial statement;(k) Authorizing, permitting, or receiving any remuneration or inurement for participating in the management or operation of a licensed game of chance; and(l) Requiring, inducing or coercing a licensee to enter into any agreement contrary to the Bingo and Raffles Law, or to purchase supplies or equipment from a particular supplier as a condition of conducting games of chance at a commercial bingo facility.15.3 Class 2 violations. A Class 2 violation is a willful act that is specifically prohibited by statute or rule and is not intended to and does not directly result in the profit or enrichment of the violator. 15.3.1 The fine for a Class 2 violation is $125.15.3.2 Class 2 violations include:(a) Using bingo or pull tab equipment that is not owned or leased by a landlord licensee or owned or leased by a licensee;(b) Paying other than reasonable, bona fide, lawful expenses in connection with the conduct of licensed games of chance, purchasing games of chance prizes or equipment at prices exceeding reasonable and usual amounts, or other use of games of chance proceeds for other than the lawful purposes of the licensee;(c) Converting into or redeeming for cash any bingo merchandise prizes;(d) Offering or giving any alcoholic beverage as a prize in a licensed game of chance;(e) Giving, receiving, authorizing, or permitting the assistance in the conduct of games of chance of any person disqualified or prohibited by statute or rule from rendering such assistance;(f) Offering or giving any bingo door prizes or jackpot prizes exceeding the statutory maximum amounts set for prizes;(g) Reserving or setting aside bingo cards or pull tabs for use by players, except as authorized in section 24-21-618(3)(d), C.R.S., or, except as authorized by these rules, reserving or allowing to be reserved any seat or playing space for use by players;(h) Drawing a check on a bingo-raffle account payable to "cash" or to a fictitious payee;(i) Authorizing or allowing the play of bingo by a person not present on the premises where the game is conducted, or the play of any game of chance on credit, or without collecting the consideration required in full and in advance; and(j) Engaging in any act, practice or conduct described as a Class 1 violation in Rule 15.2, or that would otherwise be a Class 1 violation, when the act or conduct is not intended to and does not directly result in the profit, inurement or remuneration of the violator. 15.4 Class 3 violations. A Class 3 violation is one that occurs when a licensee omits, fails or neglects to comply with a requirement set forth in the statutes or rules, but that does not involve the affirmative performance of an act specifically prohibited by statute or rule. Class 3 violations are deemed negligent rather than willful, unless a specific violation is repeated within a two-year period or the facts of the violation show that the violator knowingly and deliberately failed or refused to comply with a requirement or standard set by statute or rule.15.4.1 The fine for a Class 3 violation is $50 unless the violation is repeated or knowing and deliberate, in which case the fine is $75.15.4.2 Class 3 violations include, but are not limited to: (a) Neglecting to display a license or other document at a time and place where display is required;(b) Failing to file with the Secretary of State any quarterly report, administrative fee, or rental or other document at the time required for the filling, or omitting required information on such a filing;(c) Failing to keep or furnish required records in connection with any licensed activity;(d) Omitting any required procedure in the conduct of bingo-raffle activities;(e) Failing to designate an officer responsible for the use of games of chance proceeds;(f) Neglecting to have a certified games manager present continuously during the conduct of any raffle or bingo occasion and for thirty minutes after the last game in an occasion;(g) Failing to have games of chance premises or equipment open or available for inspection by the Secretary of State or police officers;(h) Failing to deposit or maintain all games of chance receipts in a special segregated checking or savings account of the licensee, or to withdraw any funds expended from such account by means of consecutively numbered checks or withdrawal slips signed by an officer or officers of the licensee and showing the payee and a description of reason for the payment for which the check or withdrawal slip is made, or by electronic funds transfer;(i) Failing to submit the required administrative fee, or a portion thereof, at the time of filing a required quarterly financial report;(j) Neglecting to give required notice of the termination of a rental agreement or the cancellation of a bingo occasion; and(k) Omitting required information from a raffle ticket, if the ticket has been offered for sale or sold without the approval of the Secretary of State.15.5 Citations 15.5.1 Issuance. The Secretary of State will issue all citations in writing, signed and dated by the authorized agent of the Secretary of State and will identify the licensee cited; the facts and/or conduct constituting the violation; the specific rule or statutory provision violated; and the fine assessed in accordance with this rule and the Bingo and Raffles Law.15.5.2 Delivery. Citations may be delivered to the cited licensee, to the attention of its games manager, games managers, officer or officers on record in the files of the Secretary of State, either personally or by first class mail.15.5.3 Suspension or reduction of fine. The Secretary of State, for good cause shown, may suspend or reduce any fine imposed in accordance with this rule. Requests for fine suspensions or reductions must be in writing, must be received by the Secretary of State within 20 days of the date of the citation, and must state and document with particularity the facts, circumstances and arguments supporting the request.15.5.4 Referral to law enforcement. Irrespective of whether a citation was issued, the Secretary of State reserves the right to refer any violation to a law enforcement agency.15.6 Hearings, payment of fines, and collections15.6.1 Request for hearing. In accordance with section 24-21-605(1)(a)(II), C.R.S., a licensee may request a hearing before an administrative law judge to appeal the imposition of a fine. The Secretary of State must receive a written request for a hearing within 20 days of the date that the Secretary of State denied a fine suspension or reduction request.15.6.2 Payment of fines (a) If a licensee does not request a fine suspension, fine reduction, or hearing before an administrative law judge, then the licensee must pay within 20 days of the date of the citation imposing the fine.(b) If the Secretary of State denies a fine suspension request or grants a reduction request, then the licensee must pay the fine or reduced fine within 20 days of the date of the notice of denial or reduction.(c) If an administrative law judge denies an appeal of a fine, then the licensee must pay the appealed fine within 20 days of the date of the issuance of the administrative law judge's order.(d) A licensee must pay fines by check or money order, payable to the Colorado Secretary of State.15.6.3 [Repealed eff. 11/01/2021]Colorado Register, Vol 37, No. 14. July 25, 2014, effective 8/14/201440 CR 17, September 10, 2017, effective 9/30/201744 CR 19, October 10, 2021, effective 11/1/202146 CR 05, March 10, 2023, effective 3/31/202347 CR 18, September 25, 2024, effective 10/15/2024