Colorado Code § 44-40-120

Division subject to termination - annual financial audits of the division
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(1) (a) Unless continued or reestablished by the general assembly acting by bill, the division
shall terminate on July 1, 2049.
(b) (I) The state auditor shall conduct annual financial audits of the division.
(II) At least once every five years, and more frequently in the state auditor's discretion,
the state auditor shall conduct an analysis and evaluation of the performance of the division and
shall submit a written report, together with any supporting materials as may be requested, to the
general assembly. The first report shall be completed by January 1, 2004.
(c) In conducting the analysis and evaluation required by subsection (1)(b)(II) of this
section, the state auditor shall take into consideration, but not be limited to considering, the
following factors:
(I) The amount of revenue generated by the lottery for its beneficiaries as specified in
article XXVII of the state constitution;
(II) The administrative and other expense of lottery dollar collections as compared to
revenue derived;
(III) An evaluation of the contracts, and compliance with the contracts, of lottery
equipment contractors and licensed sales agents;
(IV) Whether there has been an increase in organized crime related to gambling within
the state;
(V) A report on the results of the analysis prepared by the division on the socioeconomic
profile of persons who play the lottery, including information comparing the results of past
analyses to assess the movement of persons from various categories;
(VI) Whether the commission encourages public participation in its decisions rather than
participation only by the people whom it regulates;
(VII) An evaluation of the effectiveness and efficiency of the division's complaint,
investigation, and disciplinary procedures;
(VIII) Whether the division performs its statutory duties efficiently and effectively;
(IX) Whether administrative or statutory changes are necessary to improve the operation
of the lottery in the best interests of the state's citizens;
(X) Any other matters of concern about the operation and functioning of the lottery; and
(XI) A report on any gifts and gratuities received by members of the commission and
employees of the division.
(2) Prior to any revision of the division's functions, a committee of reference in each
house of the general assembly shall hold a public hearing thereon to consider the report provided
by the state auditor, as required by subsection (1)(b)(II) of this section. The hearing shall include
the factors set forth in subsection (1)(c) of this section.

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