LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331-R01- HB.docx 1 of 31 General Assembly Substitute Bill No. 7331 January Session, 2019 AN ACT CONCERNING SP ORTS WAGERING IN THE STATE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective July 1, 2019) (a) As used in this section 1 and sections 2 to 6, inclusive, of this act, unless the context otherwise 2 requires: 3 (1) "Casino gaming facility" has the same meaning as provided in 4 section 12-557b of the general statutes; 5 (2) "Commissioner" means the Commissioner of Consumer 6 Protection; 7 (3) "Department" means the Department of Consumer Protection; 8 (4) "Electronic sports wagering platform" or "platform" means the 9 combination of hardware, software and data networks used to 10 manage, administer, offer or control sports wagering over the Internet, 11 including through an Internet web site or a mobile device; 12 (5) "Licensed sports wagering operator" means an operator licensed 13 by the commissioner to conduct sports wagering in person or sports 14 wagering on a platform; 15 (6) "Mashantucket Pequot memorandum of understanding" means 16 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 2 of 31 the memorandum of understanding entered into by and between the 17 state and the Mashantucket Pequot Tribe on January 13, 1993, as 18 amended from time to time; 19 (7) "Mashantucket Pequot procedures" means the Final 20 Mashantucket Pequot Gaming Procedures prescribed by the Secretary 21 of the United States Department of the Interior pursuant to 25 USC 22 2710(d)(7)(B)(vii) and published in 56 Federal Register 24996 (May 31, 23 1991), as amended from time to time; 24 (8) "Minor" means an individual who is under twenty-one years of 25 age; 26 (9) "Mohegan compact" means the Tribal-State Compact entered 27 into by and between the state and the Mohegan Tribe of Indians of 28 Connecticut on May 17, 1994, as amended from time to time; 29 (10) "Mohegan memorandum of understanding" means the 30 memorandum of understanding entered into by and between the state 31 and the Mohegan Tribe of Indians of Connecticut on May 17, 1994, as 32 amended from time to time; 33 (11) "Operator eligible to conduct sports wagering in person" means 34 a person or business organization operating the off-track betting 35 system, a limited liability company operating a casino gaming facility 36 that offers sports wagering and the Connecticut Lottery Corporation; 37 (12) "Operator eligible to conduct sports wagering on a platform" 38 means a limited liability company operating a casino gaming facility 39 that offers sports wagering, the Connecticut Lottery Corporation and 40 any other individual or business organization applying to the 41 commissioner for a license pursuant to section 4 of this act; 42 (13) "Sports bettor" means an individual who is not a minor and is 43 physically present in this state when placing a sports wager with a 44 licensed sports wagering operator; 45 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 3 of 31 (14) "Sporting event" means (A) any sporting or athletic event at 46 which two or more persons participate and receive compensation in 47 excess of actual expenses for such participation in such sporting or 48 athletic event, or (B) any sporting or athletic event sponsored by an 49 intercollegiate athletic program of an institution of higher education. 50 "Sporting event" does not include horse racing, any sporting or athletic 51 event that involves a university or college of the state system of public 52 higher education, as described in section 10a-1 of the general statutes, 53 or an independent institution of higher education, as defined in section 54 10a-173 of the general statutes, or any sporting or athletic event 55 sponsored by a minor league or high school; 56 (15) "Sports governing body" means the organization that prescribes 57 final rules and enforces codes of conduct with respect to a sporting 58 event and participants in the sporting event; 59 (16) "Sports wagering" means risking or accepting any money, 60 credit, deposit or other thing of value for gain contingent in whole or 61 in part on (A) a sporting event or a portion or portions of a sporting 62 event, or (B) the individual performance statistics of an athlete or 63 athletes in a sporting event or a combination of sporting events. 64 "Sports wagering" does not include the payment of an entry fee to play 65 fantasy contests, as defined in section 12-578aa of the general statutes; 66 (17) "Sports wagering in person" means sports wagering using any 67 system or method of wagering requiring a sports bettor to be 68 physically present at a facility in this state; 69 (18) "Sports wagering on a platform" means sports wagering using 70 any system or method of wagering over the Internet, including 71 through an Internet web site or a mobile device, that does not require a 72 sports bettor to be physically present at a facility in this state that 73 conducts sports wagering in person; 74 (19) "Sports wagering gross revenue" means the amount equal to the 75 total amount of all wagers placed on sporting events not excluded 76 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 4 of 31 from sports wagering that a licensed sports wagering operator collects 77 from all sports bettors, less the total amount of all sums paid out as 78 winnings to sports bettors, except that the cash equivalent value of any 79 merchandise or thing of value awarded as a prize shall not be included 80 in the sums paid out as winnings; and 81 (20) "Sports wagering vendor" means a person or business 82 organization that develops or maintains an electronic sports wagering 83 platform on behalf of a licensed operator eligible to conduct sports 84 wagering on a platform. 85 Sec. 2. (NEW) (Effective July 1, 2019) (a) The provisions of this 86 section, sections 1 and 3 to 6, inclusive, and 15 and 20 of this act, and 87 sections 12-561, 12-577, 12-578f, 12-801, 12-806, 12-810, 12-811, 12-812, 88 12-816, 17a-713 and 53-278a of the general statutes, as amended by this 89 act, shall not be effective unless the following conditions have been 90 met: 91 (1) On or after the effective date of this section, the Governor enters 92 into new tribal-state compacts with the Mashantucket Pequot Tribe 93 and the Mohegan Tribe of Indians of Connecticut pursuant to the 94 federal Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2710(d)(3) 95 concerning the authorization of sports wagering that: (A) Allows each 96 tribe to offer sports wagering on Indian lands and through an 97 electronic sports wagering platform, (B) provides that the 98 authorization of sports wagering in person and through an electronic 99 sports wagering platform in this state does not relieve each tribe from 100 the tribe's obligation to contribute a percentage of the gross operating 101 revenues of video facsimile games to the state as provided in the 102 Mashantucket Pequot memorandum of understanding and the 103 Mohegan memorandum of understanding, as the case may be, and (C) 104 provides that the authorization of sports wagering in person and 105 through an electronic sports wagering platform in this state does not 106 terminate the moratoria on the operation of video facsimile games by 107 the tribes pursuant to section 15(a) of the Mashantucket Pequot 108 procedures and section 15(a) of the Mohegan compact. 109 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 5 of 31 (2) The new tribal-state compacts are approved or deemed 110 approved by the Secretary of the United States Department of the 111 Interior pursuant to the federal Indian Gaming Regulatory Act, P.L. 112 100-497, 25 USC 2701 et seq., and its implementing regulations. If such 113 approval is overturned by a court in a final judgment, which is not 114 appealable, the authorization for sports wagering provided under this 115 section shall cease to be effective. 116 (3) The new tribal-state compacts are approved by the General 117 Assembly pursuant to section 3-6c of the general statutes. 118 (b) On and after July 1, 2019, the commissioner may issue licenses to 119 operate sports wagering in person, licenses to operate sports wagering 120 on a platform, and sports wagering vendor licenses, as applicable, in 121 accordance with sections 3 and 4 of this act. 122 Sec. 3. (NEW) (Effective July 1, 2019) (a) No person may conduct 123 sports wagering in person in this state unless the person is an operator 124 eligible to conduct sports wagering in person and such operator has 125 obtained a license from the commissioner pursuant to this section. 126 (b) (1) Each applicant for a license pursuant to this section shall 127 submit a completed application on forms prescribed by the 128 commissioner. Such application may require the applicant to submit 129 any information the commissioner deems pertinent to the issuance of 130 such license. Each applicant, except the Connecticut Lottery 131 Corporation, shall submit to state and national criminal history records 132 checks, conducted in accordance with section 29-17a of the general 133 statutes, before such license is issued. 134 (2) Each applicant for a license to operate sports wagering in person 135 shall submit with its application a nonrefundable application fee of 136 one hundred thousand dollars. Except as provided in subsection (c) of 137 this section, each such license shall expire biennially on the 138 anniversary date of the issuance of such license unless renewed in 139 accordance with this section. The nonrefundable application fee for 140 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 6 of 31 such renewal shall be one hundred thousand dollars. Upon the 141 issuance or renewal of a license, the licensee shall pay a licensing fee of 142 seven hundred fifty thousand dollars to the commissioner. The 143 Connecticut Lottery Corporation shall be exempt from the application 144 fee, renewal application fee and licensing fee for a license to operate 145 sports wagering in person. 146 (3) If licensed pursuant to this section, (A) a person or business 147 organization operating the off-track betting system may conduct sports 148 wagering in person at any of the system facilities authorized for off-149 track betting under section 12-571a of the general statutes, and (B) the 150 Connecticut Lottery Corporation may conduct sports wagering in 151 person at no more than four high tier claim centers, as designated by 152 the corporation. 153 (4) Applications for renewal of any such license shall be on such 154 form as prescribed by the commissioner. 155 (c) (1) The commissioner shall, as soon as practicable after the 156 receipt of a completed license or renewal application, grant or deny the 157 license or renewal application. Any holder of a license issued pursuant 158 to this section who submits an application to renew such license prior 159 to the expiration of such license may continue to perform the activities 160 authorized by such license until the commissioner approves or denies 161 such renewal application. 162 (2) Failure by any operator eligible to conduct sports wagering in 163 person that holds a license pursuant to this section or any off-track 164 betting facility or high tier claim center to comply with the 165 requirements of this section and any regulations adopted pursuant to 166 section 5 of this act shall constitute grounds for the commissioner to 167 investigate such licensee or facility. A violation of the provisions of 168 section 4 of this act by an operator eligible to conduct sports wagering 169 in person that is licensed pursuant to this section and section 4 of this 170 act shall constitute grounds for an investigation. After a hearing held 171 in accordance with the provisions of chapter 54 of the general statutes, 172 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 7 of 31 the commissioner may suspend or revoke such license for good cause 173 or suspend operations at such facility and impose a civil penalty of not 174 more than two hundred fifty thousand dollars. Any licensee whose 175 license is suspended or revoked or who is fined, any facility whose 176 sports wagering in person operations are suspended or that is fined, or 177 any applicant aggrieved by the action of the commissioner concerning 178 an application for a license or renewal application, may appeal in 179 accordance with the provisions of chapter 54 of the general statutes. 180 Sec. 4. (NEW) (Effective July 1, 2019) (a) No person may conduct 181 sports wagering on a platform unless the person is an operator eligible 182 to conduct sports wagering on a platform and such operator has 183 obtained a license pursuant to this section. 184 (b) (1) A limited liability company operating a casino gaming 185 facility that offers sports wagering and the Connecticut Lottery 186 Corporation may submit an application for a license pursuant to this 187 section. Such application may require the submission of information 188 listed in subdivisions (2) to (7), inclusive, of subsection (d) of this 189 section, and any information the commissioner deems pertinent to the 190 issuance of such license. Such license shall expire biennially on the 191 anniversary date of the issuance of such license unless renewed in 192 accordance with subsection (j) of this section. 193 (2) Each applicant, except the Connecticut Lottery Corporation, shall 194 submit to state and national criminal history records checks, conducted 195 in accordance with section 29-17a of the general statutes, and submit a 196 nonrefundable application fee of one hundred thousand dollars, before 197 such license is issued. Upon the issuance or renewal of a license, the 198 licensee, except the Connecticut Lottery Corporation, shall pay a 199 licensing fee of seven hundred fifty thousand dollars to the 200 commissioner. 201 (c) Not later than sixty days after the conditions specified in section 202 2 of this act have been met, the commissioner shall develop and issue a 203 request for proposals to qualify individuals or businesses for up to 204 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 8 of 31 three additional licenses to develop, manage, operate and maintain 205 sports wagering on a platform in this state. 206 (d) The request for proposals shall require a responder to: 207 (1) Specify the amount the responder is willing to pay to obtain a 208 license, which shall be no less than seven hundred fifty thousand 209 dollars; 210 (2) Specify the number of employees and physical office locations 211 the respondent has or will have in this state to ensure the proper 212 operation of sports wagering on a platform; 213 (3) Describe the electronic sports wagering platform to be used; 214 (4) Describe the types and numbers of sporting events the responder 215 will offer for sports wagering in this state; 216 (5) Provide a market analysis detailing the impact on and benefits to 217 the state if the responder receives a license, including projected 218 revenue to the state; 219 (6) Provide information and documentation to demonstrate that the 220 responder has sufficient business ability, experience and financial 221 stability to develop, manage, operate and maintain sports wagering on 222 an electronic platform in this state; 223 (7) Describe the methods used to ensure the integrity of the platform 224 and security controls to be used regarding the (A) sports data acquired 225 to determine the results of sports wagers, (B) sports bettor data, and 226 (C) sports bettor verification of age and presence in the state; 227 (8) Provide a responsible gaming plan associated with the operation 228 of sports wagering; and 229 (9) Provide any other information the commissioner deems 230 necessary to evaluate the qualifications of the responder. 231 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 9 of 31 (e) Each proposal shall be submitted not later than thirty days after 232 the date the commissioner issues the request for proposals pursuant to 233 subsection (c) of this section. Each proposal shall be accompanied by a 234 fee of one hundred thousand dollars, which shall be refundable if the 235 responder is (1) not selected by the commissioner to receive a license, 236 and (2) waives the right to challenge the commissioner's decision. 237 (f) The commissioner shall develop selection criteria and a scoring 238 method to evaluate responses to the request for proposals. Of those 239 deemed qualified under the selection criteria and scoring method, the 240 commissioner shall rank the responders based on the licensing fee each 241 offered to pay in the responder's proposal, from highest to lowest. The 242 commissioner shall issue a license to the qualified responder who 243 offered to pay the highest licensing fee. The licensing fee paid by the 244 first qualified responder accepting a license from the commissioner 245 shall establish the licensing fee that the commissioner shall offer to 246 additional qualified responders. The commissioner shall issue 247 additional licenses using the ranked list of qualified responders, 248 issuing the first such license to the highest ranked responder and 249 proceeding through the list, from highest to lowest, until the 250 commissioner has issued not more than two additional licenses. The 251 commissioner shall not issue more than three licenses under this 252 process and shall not issue a license for a fee of less than seven 253 hundred fifty thousand dollars. 254 (g) A license issued pursuant to subsection (f) of this section shall 255 expire two years after issuance, but the commissioner may extend a 256 license for an additional two years upon renegotiation of the licensing 257 fee established through the process described under subsection (f) of 258 this section. 259 (h) The commissioner may initiate additional requests for proposals 260 to issue licenses pursuant to this section if the commissioner does not 261 issue three licenses pursuant to subsection (e) of this section or a 262 license expires pursuant to subsection (g) of this section. If the 263 commissioner does not issue or renew a license to a limited liability 264 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 10 of 31 company operating a casino gaming facility that offers sports wagering 265 or the Connecticut Lottery Corporation, the commissioner may initiate 266 a request for proposal to issue a license in place of the license or 267 licenses not issued or renewed. 268 (i) (1) No person or business organization may develop an electronic 269 sports wagering platform on behalf of a licensed operator eligible to 270 conduct sports wagering on a platform unless such person or business 271 organization holds a sports wagering vendor license issued by the 272 commissioner pursuant to this subsection. 273 (2) Each applicant for a sports wagering vendor license shall submit 274 with its application a nonrefundable application fee of one hundred 275 thousand dollars. Except as provided in subsection (j) of this section, 276 each such license shall expire biennially on the anniversary date of the 277 issuance of such license unless renewed in accordance with this 278 section. The nonrefundable application fee for such renewal shall be 279 one hundred thousand dollars. Upon the issuance or renewal of a 280 license, the licensee shall pay a licensing fee of three hundred thousand 281 dollars to the commissioner. 282 (3) Applications for renewal of any such license shall be on such 283 form as prescribed by the commissioner. 284 (j) (1) The commissioner shall, as soon as practicable after the receipt 285 of a completed license or renewal application, grant or deny the license 286 or renewal application. Any holder of a license issued pursuant to this 287 section who submits an application to renew such license prior to the 288 expiration of such license may continue to perform the activities 289 authorized by such license until the commissioner approves or denies 290 such renewal application. 291 (2) Failure by any operator eligible to conduct sports wagering on a 292 platform that holds a license pursuant to this section to comply with 293 the provisions of this section and any regulations adopted pursuant to 294 section 5 of this act shall constitute grounds for the commissioner to 295 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 11 of 31 investigate such licensee. A violation of the provisions of section 3 of 296 this act by an operator eligible to conduct sports wagering on a 297 platform that is licensed pursuant to section 3 of this act and this 298 section shall constitute grounds for an investigation. After a hearing 299 held in accordance with the provisions of chapter 54 of the general 300 statutes, the commissioner may suspend or revoke such license for 301 good cause and impose a civil penalty of not more than two hundred 302 fifty thousand dollars. Any licensee whose license is suspended or 303 revoked or who is fined or any applicant aggrieved by the action of the 304 commissioner concerning an application for a license or renewal 305 application, may appeal in accordance with the provisions of chapter 306 54 of the general statutes. 307 Sec. 5. (NEW) (Effective July 1, 2019) (a) Each licensed sports 308 wagering operator shall: 309 (1) Verify that a sports bettor is at least twenty-one years of age; 310 (2) Allow any individual to exclude himself or herself from placing 311 sports wagers or limit the amount of money such individual may use 312 to place sports wagers with an operator, and, on and after the date the 313 operator is notified by such individual of such exclusion or limit, shall 314 take reasonable steps to prevent such individual from placing sports 315 wagers or exceeding such limit, as the case may be; 316 (3) Enter into an agreement with a provider of sporting event data 317 that meets or exceeds the minimum qualifications set forth in 318 regulations adopted by the commissioner pursuant to subsection (i) of 319 this section; 320 (4) Report any suspicion of abnormal betting activity to the 321 commissioner for immediate investigation by the commissioner; 322 (5) Maintain the security of wagering data, sports bettor data and 323 other confidential information to prevent unauthorized access to and 324 dissemination of such data and information; and 325 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 12 of 31 (6) Share records in real time, at the account level and in 326 pseudonymous form, to the department with respect to sports wagers 327 placed with such operator. 328 (b) (1) No individual who is a licensed sports wagering operator or 329 sports wagering vendor, an officer, director, owner or employee of a 330 sports wagering operator or sports wagering vendor, and no family 331 member of such individual who resides in the same household as such 332 individual, shall place any wager with a licensed sports wagering 333 operator. 334 (2) No athlete, coach, referee, team owner, employee of a sports 335 governing body, employee of a sports governing body's member 336 teams, or personnel of any bargaining unit of a sports governing 337 body's athletes or referees, shall place any wager on any sporting event 338 overseen by such governing body. In determining which individuals 339 are prohibited from placing a wager under this subdivision, a licensed 340 sports wagering operator shall use publicly available information and 341 any lists provided by the relevant sports governing body to the 342 commissioner. 343 (3) No individual with access to nonpublic, confidential information 344 that could affect the outcome of a sporting event shall place any wager 345 on such sporting event with any licensed sports wagering operator. 346 (4) No individual shall place any sports wager pursuant to this 347 section as an agent or a proxy for another individual. 348 (5) Each licensed sports wagering operator shall take reasonable 349 steps to prevent the conduct prohibited under subdivisions (1) to (4), 350 inclusive, of this subsection and shall immediately notify the 351 commissioner if such operator believes such conduct has occurred. 352 (6) A licensed sports wagering operator and a licensed sports 353 wagering vendor shall not disclose or sell any sports bettor's 354 information. Records that directly or indirectly identify a sports bettor 355 shall be kept confidential and shall not be disclosed. 356 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 13 of 31 (7) No prizes shall be paid to any individual who is restricted from 357 placing sports wagers pursuant to this subsection. Any such prize shall 358 be deposited into the sports wagering account established in section 6 359 of this act. 360 (c) Except as provided in section 12-816 of the general statutes, as 361 amended by this act, a tax is imposed on sports wagering gross 362 revenue earned by a licensed sports wagering operator at the rate of 363 ten per cent. The Commissioner of Revenue Services shall assess and 364 collect such tax as the commissioner may prescribe by regulations 365 adopted in accordance with the provisions of chapter 54 of the general 366 statutes. The commissioner shall deposit the tax collected pursuant to 367 this section in the sports wagering account established by section 6 of 368 this act. Such tax shall be due and payable each Tuesday of the week. If 369 any such tax is not paid when due, the commissioner shall impose a 370 delinquency assessment upon the licensed sports wagering operator in 371 the amount of ten per cent of such tax or ten dollars, whichever 372 amount is greater, plus interest at the rate of one and one-half per cent 373 of the unpaid principal of such tax for each month or fraction of a 374 month from the date such tax is due to the date of payment. Subject to 375 the provisions of section 12-3a of the general statutes, the 376 commissioner may waive all or part of the penalties provided under 377 this subsection when it is proven to the commissioner's satisfaction 378 that the failure to pay such tax within the time required was due to 379 reasonable cause and was not intentional or due to neglect. Failure to 380 pay any such delinquent tax upon demand may be considered by the 381 Commissioner of Consumer Protection as cause for revocation of a 382 license to operate sports wagering. 383 (d) The amount of unclaimed moneys, as determined by the 384 Commissioner of Consumer Protection, held by a licensed sports 385 wagering operator on account of outstanding and uncashed winning 386 sports wagering tickets, shall be due and payable to the commissioner 387 at the expiration of six months after the date of the sporting event 388 during which such tickets were issued. If any such unclaimed moneys 389 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 14 of 31 are not paid when due, the commissioner shall impose a delinquency 390 assessment upon the licensed sports wagering operator in the amount 391 of ten per cent of such money or ten dollars, whichever amount is 392 greater, plus interest at the rate of one and one-half per cent of the 393 unpaid principal of such moneys for each month or fraction of a month 394 from the date such moneys are due to the date of payment. Subject to 395 the provisions of section 12-3a of the general statutes, the 396 commissioner may waive all or part of the penalties provided under 397 this subsection when it is proven to the commissioner's satisfaction 398 that the failure to pay such moneys within the time required was due 399 to reasonable cause and was not intentional or due to neglect. 400 (e) The commissioner or the commissioner's designee may authorize 401 deputies to enter upon the premises of a licensed sports wagering 402 operator's place of business for the purposes of inspecting books and 403 records, and supervising and examining cashiers, ticket sellers and 404 other persons handling money on behalf of such operator. 405 (f) A sports governing body may request that the commissioner 406 restrict, limit or exclude wagering on a sporting event or events by 407 providing notice in such form and manner as the commissioner 408 prescribes. 409 (g) (1) Each licensed sports wagering operator that offers sports 410 wagering shall immediately report to the commissioner any 411 information relating to (A) criminal or disciplinary proceedings 412 commenced against such operator or an employee of such operator in 413 connection with its operations, (B) abnormal betting activity or 414 patterns that may indicate a concern with the integrity of a sporting 415 event, (C) any potential breach of the relevant sports governing body's 416 internal rules or codes of conduct pertaining to sports wagering, (D) 417 any other conduct that corrupts the betting outcome of a sporting 418 event for purposes of financial gain, including match-fixing, and (E) 419 suspicious or illegal wagering activities, including the use of funds 420 derived from illegal activity to place a wager, the placing of a wager to 421 conceal funds derived from illegal activity, the use of an agent or a 422 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 15 of 31 proxy to place a wager or the use of false identification to place a 423 wager. 424 (2) Such operator shall also immediately report to the relevant 425 sports governing body any information relating to conduct described 426 under subparagraphs (B) to (D), inclusive, of subdivision (1) of this 427 subsection. 428 (h) If the commissioner finds, after a hearing conducted pursuant to 429 chapter 54 of the general statutes, that any individual or entity 430 knowingly violated any provision of this section or any regulation 431 adopted pursuant to subsection (i) of this section, the commissioner 432 shall assess such individual or entity a civil penalty of not more than 433 fifty thousand dollars for each violation, not to exceed two hundred 434 fifty thousand dollars for multiple violations arising out of the same 435 transaction or occurrence. 436 (i) The commissioner shall adopt regulations, in accordance with the 437 provisions of chapter 54 of the general statutes, to implement the 438 provisions of this section and sections 3 and 4 of this act. Such 439 regulations shall include provisions to protect the public interest in the 440 integrity of sports wagering and reduce the dangers of unsuitable, 441 unfair or illegal practices, methods and activities in the conduct of 442 sports wagering. Such regulations shall include, but need not be 443 limited to, provisions regarding: (1) The types of sporting events upon 444 which sports wagers may be placed or accepted; (2) the minimum 445 amount of cash reserves to be maintained by licensed sports wagering 446 operators; (3) the acceptance of wagers on a series of sports events; (4) 447 the maximum wagers which may be accepted by a licensed sports 448 wagering operator from any one sports bettor on any one sports event; 449 (5) the type of wagering tickets which shall be used; (6) the method of 450 issuing tickets; (7) minimum accounting standards for a licensed sports 451 wagering operator; (8) the types of records which shall be maintained 452 by a licensed sports wagering operator and available for inspection 453 upon the request of the commissioner; (9) requirements for 454 information and reports from a licensed sports wagering operator to 455 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 16 of 31 enable effective auditing of sports wagering operations; (10) 456 requirements for establishing and funding a sports wagering account; 457 (11) minimum qualifications for a provider of sporting events data; 458 and (12) requirements for any advertisement for sports betting to 459 ensure such advertisement (A) does not target minors, problem 460 gamblers or other vulnerable individuals, (B) includes information 461 about gambling addiction or Internet web site links to resources 462 related to gambling addiction, and (C) is not false, misleading or 463 deceptive to a reasonable consumer. 464 Sec. 6. (NEW) (Effective July 1, 2019) (a) There is established an 465 account to be known as the "sports wagering account" which shall be a 466 separate, nonlapsing account within the General Fund. Any amounts 467 received by the commissioner pursuant to sections 3 to 5, inclusive, of 468 this act shall be deposited in the sports wagering account. The account 469 shall contain any other moneys required by law to be deposited in the 470 account. 471 (b) Moneys in the account shall be expended by the commissioner 472 for the purposes of compensating the department for the reasonable 473 and necessary costs incurred by the department for the regulatory and 474 licensing activities specified in sections 1 to 5, inclusive, of this act. On 475 and after the first full fiscal year that the commissioner finds money 476 has been deposited in the sports wagering account, the commissioner 477 shall contribute two per cent of the moneys deposited in the account 478 during the previous fiscal year to the program for treatment and 479 rehabilitation of compulsive gamblers established pursuant to section 480 17a-713 of the general statutes. At the end of each fiscal year, the 481 commissioner shall transfer any money in excess of such reasonable 482 and necessary costs and such contribution to the General Fund. 483 (c) The commissioner may establish receivables for the expenses to 484 be incurred by the department prior to moneys being deposited in the 485 sports wagering account. Such receivables shall not exceed nine 486 hundred thousand dollars. 487 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 17 of 31 Sec. 7. Section 12-577 of the general statutes is repealed and the 488 following is substituted in lieu thereof (Effective July 1, 2019): 489 The commissioner shall annually cause to be made by some 490 competent person or persons in the department a thorough audit of 491 the books and records of each association licensee under this chapter, 492 [and] each casino gaming facility and each licensed sports wagering 493 operator, as defined in section 1 of this act, and the commissioner may, 494 from time to time, cause to be made by some competent person in the 495 department a thorough audit of the books and records of any other 496 person or business organization licensed under this chapter. All such 497 audit records shall be kept on file in the commissioner's office at all 498 times. Each licensee and casino gaming facility shall permit access to 499 its books and records for the purpose of having such audit made, and 500 shall produce, upon written order of the commissioner, any documents 501 and information required for such purpose. 502 Sec. 8. Subsection (b) of section 12-811 of the general statutes is 503 repealed and the following is substituted in lieu thereof (Effective July 504 1, 2019): 505 (b) No director, officer or employee of the corporation shall, directly 506 or indirectly, participate in, or share in the winnings from, (1) a game 507 conducted pursuant to sections 12-563a and 12-800 to 12-818, inclusive, 508 or (2) sports wagering, if the corporation conducts sports wagering 509 pursuant to section 3 or 4 of this act. 510 Sec. 9. Section 12-812 of the general statutes is repealed and the 511 following is substituted in lieu thereof (Effective July 1, 2019): 512 (a) The president of the corporation, subject to the direction of the 513 board, shall conduct daily, weekly, multistate, special instant or other 514 lottery games and shall determine the number of times a lottery shall 515 be held each year, the form and price of the tickets and the aggregate 516 amount of prizes, which shall not be less than forty-five per cent of the 517 sales unless required by the terms of any agreement entered into for 518 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 18 of 31 the conduct of multistate lottery games. The proceeds of the sale of 519 tickets shall be deposited in the lottery fund of the corporation from 520 which prizes shall be paid, upon vouchers signed by the president, or 521 by either of two persons designated and authorized by him, in such 522 numbers and amounts as the president determines. The corporation 523 may limit its liability in games with fixed payouts and may cause a 524 cessation of sales of tickets of certain designation when such liability 525 limit has been reached. If licensed to conduct sports wagering 526 pursuant to section 3 or 4 of this act, the president shall deposit the 527 proceeds of sales related to sports wagering, as defined in section 1 of 528 this act, in the lottery fund, from which prizes shall be paid. 529 (b) The president, subject to the direction of the board, may enter 530 into agreements for the sale of product advertising on lottery tickets, 531 play slips and other lottery media. 532 (c) On a weekly basis, the president shall estimate, and certify to the 533 State Treasurer, that portion of the balance in the lottery fund which 534 exceeds the current needs of the corporation for the payment of prizes, 535 the payment of current operating expenses and funding of approved 536 reserves of the corporation, [. The] and that portion of the balance that 537 is attributable to the proceeds of sports wagering, as defined in section 538 1 of this act. Upon notification of receipt of such certification by the 539 Treasurer, the corporation shall transfer the amount so certified from 540 the lottery fund of the corporation to the General Fund, [upon 541 notification of receipt of such certification by the Treasurer] except that 542 the corporation shall transfer the amount attributable to the proceeds 543 of sports wagering to the sports wagering account established in 544 section 6 of this act. 545 Sec. 10. Subdivision (2) of section 53-278a of the general statutes is 546 repealed and the following is substituted in lieu thereof (Effective July 547 1, 2019): 548 (2) "Gambling" means risking any money, credit, deposit or other 549 thing of value for gain contingent in whole or in part upon lot, chance 550 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 19 of 31 or the operation of a gambling device, including the playing of a casino 551 gambling game such as blackjack, poker, craps, roulette or a slot 552 machine, but does not include: Legal contests of skill, speed, strength 553 or endurance in which awards are made only to entrants or the owners 554 of entries; legal business transactions which are valid under the law of 555 contracts; activity legal under the provisions of sections 7-169 to 7-186, 556 inclusive; any lottery or contest conducted by or under the authority of 557 any state of the United States, Commonwealth of Puerto Rico or any 558 possession or territory of the United States; and other acts or 559 transactions expressly authorized by law on or after October 1, 1973. 560 Fantasy contests, as defined in section 12-578aa, shall not be 561 considered gambling, provided the conditions set forth in subsection 562 (b) of section 12-578aa have been met and the operator of such contests 563 is registered pursuant to subdivision (1) of subsection (d) of section 12-564 578aa. Sports wagering, as defined in section 1 of this act, shall not be 565 considered gambling if the conditions set forth in section 2 of this act 566 have been met and the sports wagering is conducted by a licensed 567 sports wagering operator, as defined in section 1 of this act; 568 Sec. 11. Subdivision (4) of section 53-278a of the general statutes is 569 repealed and the following is substituted in lieu thereof (Effective July 570 1, 2019): 571 (4) "Gambling device" means any device or mechanism by the 572 operation of which a right to money, credits, deposits or other things 573 of value may be created, as the result of the operation of an element of 574 chance; any device or mechanism which, when operated for a 575 consideration, does not return the same value or thing of value for the 576 same consideration upon each operation thereof; any devic e, 577 mechanism, furniture or fixture designed primarily for use in 578 connection with professional gambling; and any subassembly or 579 essential part designed or intended for use in connection with any 580 such device, mechanism, furniture, fixture, construction or installation, 581 provided an immediate and unrecorded right of replay mechanically 582 conferred on players of pinball machines and similar amusement 583 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 20 of 31 devices shall be presumed to be without value. "Gambling device" 584 does not include a crane game machine or device or a redemption 585 machine. A device or equipment used to play fantasy contests, as 586 defined in section 12-578aa, shall not be considered a gambling device, 587 provided the conditions set forth in subsection (b) of section 12-578aa 588 have been met. A device or equipment used to participate in sports 589 wagering, as defined in subsection (a) of section 1 of this act, shall not 590 be considered a gambling device if the conditions set forth in section 2 591 of this act have been met; 592 Sec. 12. Section 12-561 of the general statutes is repealed and the 593 following is substituted in lieu thereof (Effective July 1, 2019): 594 No commissioner or unit head or employee of the department shall 595 directly or indirectly, individually or as a member of a partnership or 596 as a shareholder of a corporation, have any interest whatsoever in 597 dealing in any lottery, racing, fronton, betting enterprise or casino 598 gaming facility or in the ownership or leasing of any property or 599 premises used by or for any lottery, racing, fronton, betting enterprise 600 or casino gaming facility. No commissioner or unit head shall, directly 601 or indirectly, wager at any off-track betting facility, race track or 602 fronton authorized under this chapter, purchase lottery tickets issued 603 under this chapter, [or] play, directly or indirectly, any authorized 604 game conducted at a casino gaming facility or place a sports wager 605 with a licensed sports wagering operator, as defined in section 1 of this 606 act. The commissioner may adopt regulations in accordance with the 607 provisions of chapter 54 to prohibit any employee of the department 608 from engaging, directly or indirectly, in any form of legalized 609 gambling activity in which such employee is involved because of his or 610 her employment with the department. For purposes of this section, 611 "unit head" means a managerial employee with direct oversight of a 612 legalized gambling activity. 613 Sec. 13. Section 12-810 of the general statutes is repealed and the 614 following is substituted in lieu thereof (Effective July 1, 2019): 615 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 21 of 31 (a) The Freedom of Information Act, as defined in section 1-200, 616 shall apply to all actions, meetings and records of the corporation, 617 except (1) where otherwise limited by subsection (c) of this section as 618 to new lottery games and serial numbers of unclaimed lottery tickets, 619 [and] (2) with respect to financial, credit and proprietary information 620 submitted by any person to the corporation in connection with any 621 proposal to provide goods, services or professional advice to the 622 corporation as provided in section 12-815, and (3) as provided in 623 subsection (d) of this section. 624 (b) The records of proceedings as provided in subsection (a) of 625 section 12-805 shall be subject to disclosure pursuant to the provisions 626 of subsection (a) of section 1-210. 627 (c) Any new lottery game and the procedures for such game, until 628 the game is publicly announced by the corporation, and any serial 629 number of an unclaimed lottery ticket shall not be deemed public 630 records, as defined in section 1-200, and shall not be available to the 631 public under the provisions of section 1-210. The president shall 632 submit a fiscal note prepared by the corporation with respect to the 633 procedures for a new lottery game to the joint standing committees of 634 the General Assembly having cognizance of matters relating to finance, 635 revenue, bonding and public safety after approval of such game by the 636 board. 637 (d) The name and any personally identifying information of a 638 person who is participating in or has participated in the corporation's 639 sports wagering voluntary self-exclusion process established in 640 subsection (a) of section 5 of this act shall not be deemed public 641 records, as defined in section 1-200, and shall not be available to the 642 public under the provisions of section 1-210. The president may 643 disclose the name and any records of such person if such person claims 644 a winning from placing a sports wager. 645 Sec. 14. Subdivision (1) of subsection (a) of section 12-578f of the 646 general statutes is repealed and the following is substituted in lieu 647 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 22 of 31 thereof (Effective July 1, 2019): 648 (1) "Authorized games" means any game of chance, including, but 649 not limited to, blackjack, poker, dice, money-wheels, roulette, baccarat, 650 chuck-a-luck, pan game, over and under, horse race game, acey-deucy, 651 beat the dealer, bouncing ball, video facsimile game and any other 652 game of chance authorized by the Commissioner of Consumer 653 Protection. "Authorized games" does not include sports wagering, as 654 defined in subsection (a) of section 1 of this act; 655 Sec. 15. (NEW) (Effective July 1, 2019) (a) The Commissioner of 656 Economic and Community Development shall seek partnerships with 657 professional sports leagues and governing bodies to promote sports 658 activities and economic development in this state. The commissioner 659 shall contact representatives of Major League Baseball, the Professional 660 Golfers' Association, the Ladies Professional Golf Association, the 661 National Basketball Association, the National Hockey League, the 662 National Football League, Major League Soccer, the National Women's 663 Soccer League and any other professional sports league or governing 664 body the commissioner identifies. The commissioner may consult with 665 members of the General Assembly, business leaders, municipal leaders 666 and other interested stakeholders in developing partnerships with 667 professional sports leagues or governing bodies. The commissioner 668 shall set a goal of scheduling at least three major league professional 669 sports events in the state each year, at locations that reflect the 670 geographic and demographic diversity of the state. 671 (b) Not later than July 1, 2020, and annually thereafter, the 672 commissioner shall submit a report, in accordance with the provisions 673 of section 11-4a of the general statutes, to the joint standing committees 674 of the General Assembly having cognizance of matters relating to 675 public safety and security and commerce concerning the 676 commissioner's activities during the preceding year in developing 677 partnerships with professional sports leagues and governing bodies 678 and scheduling events in the state. 679 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 23 of 31 Sec. 16. Section 12-816 of the general statutes is repealed and the 680 following is substituted in lieu thereof (Effective July 1, 2019): 681 The exercise of the powers granted by sections 1-120, 1-121, 1-125, 682 12-563, 12-563a, 12-564, 12-566, 12-568a and 12-569, subsection (c) of 683 section 12-574, [and] sections 12-800 to 12-818, inclusive, and sections 3 684 and 4 of this act, if the corporation is a licensed sports wagering 685 operator, constitute the performance of an essential governmental 686 function and all operations of the corporation shall be free from any 687 form of federal or state taxation. In addition, except pursuant to any 688 federal requirements, the corporation shall not be required to pay any 689 taxes or assessments upon or in respect to sales of lottery tickets, or 690 any property or moneys of the corporation, levied by the state or any 691 political subdivision or municipal taxing authority. The corporation 692 and its assets, property and revenues shall at all times be free from 693 taxation of every kind by the state and by the municipalities and all 694 other political subdivisions or special districts having taxing powers in 695 the state. 696 Sec. 17. Section 12-801 of the general statutes is repealed and the 697 following is substituted in lieu thereof (Effective July 1, 2019): 698 As used in section 12-563a and sections 12-800 to 12-818, inclusive, 699 the following terms shall have the following meanings unless the 700 context clearly indicates another meaning: 701 (1) "Board" or "board of directors" means the board of directors of 702 the corporation; 703 (2) "Corporation" means the Connecticut Lottery Corporation as 704 created under section 12-802; 705 (3) "Division" means the former Division of Special Revenue in the 706 Department of Revenue Services; 707 (4) "Lottery" means (A) the Connecticut state lottery conducted prior 708 to the transfer authorized under section 12-808 by the Division of 709 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 24 of 31 Special Revenue, (B) after such transfer, the Connecticut state lottery 710 conducted by the corporation pursuant to sections 12-563a and 12-800 711 to 12-818, inclusive, (C) the state lottery referred to in subsection (a) of 712 section 53-278g, and (D) keno conducted by the corporation pursuant 713 to section 12-806c; 714 (5) "Keno" means a lottery game in which a subset of numbers are 715 drawn from a larger field of numbers by a central computer system 716 using an approved random number generator, wheel system device or 717 other drawing device. "Keno" does not include a game operated on a 718 video facsimile machine; 719 (6) "Lottery fund" means a fund or funds established by, and under 720 the management and control of, the corporation, into which all lottery 721 revenues of the corporation, and all revenues of sports wagering if the 722 corporation is licensed to conduct sports wagering pursuant to section 723 3 or 4 of this act, are deposited, from which all payments and expenses 724 of the corporation are paid and from which transfers to the General 725 Fund and sports wagering account are made pursuant to section 12-726 812, as amended by this act; and 727 (7) "Operating revenue" means total revenue received from lottery 728 sales less all cancelled sales and amounts paid as prizes but before 729 payment or provision for payment of any other expenses. 730 Sec. 18. Section 12-806 of the general statutes is repealed and the 731 following is substituted in lieu thereof (Effective July 1, 2019): 732 (a) The purposes of the corporation shall be to: (1) Operate and 733 manage the lottery in an entrepreneurial and business-like manner free 734 from the budgetary and other constraints that affect state agencies; (2) 735 provide continuing and increased revenue to the people of the state 736 through the lottery by being responsive to market forces and acting 737 generally as a corporation engaged in entrepreneurial pursuits; and (3) 738 ensure that the lottery continues to be operated with integrity and for 739 the public good. 740 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 25 of 31 (b) The corporation shall have the following powers: 741 (1) To receive as transferee from the state of Connecticut all of the 742 tangible and intangible assets constituting the lottery including the 743 exclusive right to operate the lottery as the exclusive lottery of the state 744 and, subject to subsection (b) of section 12-808, to assume and 745 discharge all of the agreements, covenants and obligations of the 746 Department of Consumer Protection entered into which constitute a 747 part of the operation and management of the lottery; 748 (2) To operate and manage the lottery consistent with the provisions 749 of sections 1-120, 1-121, 1-125, 12-563, 12-563a, 12-564, 12-566, 12-568a 750 and 12-569, subsection (c) of section 12-574 and sections 12-800 to 12-751 818, inclusive, and as specifically provided in section 12-812; 752 (3) To have perpetual succession as a body corporate and to adopt 753 bylaws, policies and procedures for the operation of its affairs and 754 conduct of its businesses; 755 (4) To introduce new lottery games, modify existing lottery games, 756 utilize existing and new technologies, determine distribution channels 757 for the sale of lottery tickets, introduce keno pursuant to signed 758 agreements with the Mashantucket Pequot Tribe and the Mohegan 759 Tribe of Indians of Connecticut, in accordance with section 12-806c, 760 and, to the extent specifically authorized by regulations adopted by the 761 Department of Consumer Protection pursuant to chapter 54, introduce 762 instant ticket vending machines, kiosks and automated wagering 763 systems or machines, with all such rights being subject to regulatory 764 oversight by the Department of Consumer Protection, except that the 765 corporation shall not offer any interactive on-line lottery games, 766 including on-line video lottery games for promotional purposes; 767 (5) To establish an annual budget of revenues and expenditures, 768 along with reasonable reserves for work ing capital, capital 769 expenditures, debt retirement and other anticipated expenditures, in a 770 manner and at levels considered by the board of directors as 771 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 26 of 31 appropriate and prudent; 772 (6) To adopt such administrative and operating procedures which 773 the board of directors deems appropriate; 774 (7) To enter into agreements with one or more states or territories of 775 the United States for the promotion and operation of joint lottery 776 games and to continue to participate in any joint lottery game in which 777 the corporation participates on July 1, 2003, regardless of whether any 778 government-authorized lottery operated outside of the United States 779 participates in such game; 780 (8) Subject to the provisions of section 12-815, to enter into 781 agreements with vendors with respect to the operation and 782 management of the lottery, including operation of lottery terminals, 783 management services, printing of lottery tickets, management 784 expertise, marketing expertise, advertising or such other goods or 785 services as the board of directors deems necessary and appropriate; 786 (9) To purchase or lease operating equipment, including, but not 787 limited to, computer gaming and automated wagering systems and to 788 employ agents or employees to operate such systems; 789 (10) To retain unclaimed prize funds as additional revenue for the 790 state, or to use unclaimed prize funds to increase sales, or to return to 791 participants unclaimed prize funds in a manner designed to increase 792 sales; 793 (11) To establish prize reserve accounts as the board of directors 794 deems appropriate; 795 (12) To pay lottery prizes as awarded under section 12-812, as 796 amended by this act, to purchase annuities to fund such prizes, and to 797 assure that all annuities from which payments to winners of lottery 798 prizes are made are invested in instruments issued by agencies of the 799 United States government and backed by the full faith and credit of the 800 United States, or are issued by insurance companies licensed to do 801 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 27 of 31 business in the state, provided the issuer has been determined by the 802 Department of Consumer Protection to be financially stable and meets 803 the minimum investment rating as determined by the department; 804 (13) To pay the Office of Policy and Management to reimburse the 805 Department of Consumer Protection for the reasonable and necessary 806 costs arising from the department's regulatory oversight of the 807 corporation, in accordance with the assessment made pursuant to 808 section 12-806b, including costs arising directly or indirectly from the 809 licensing of lottery agents, performance of state police background 810 investigations, and the implementation of subsection (b) of section 12-811 562 and sections 12-563a, 12-568a, 12-569, 12-570, 12-570a and 12-800 to 812 12-818, inclusive; 813 (14) In the event that the operation or management of the 814 corporation becomes subject to the federal gaming occupation tax, to 815 pay such tax on behalf of lottery sales agents and to assist agents 816 subject thereto; 817 (15) To determine the commissions payable to lottery sales agents, 818 provided any agent's commission shall not average less than four per 819 cent of such agent's lottery sales; 820 (16) To invest in, acquire, lease, purchase, own, manage, hold and 821 dispose of real property and lease, convey or deal in or enter into 822 agreements with respect to such property on any terms necessary or 823 incidental to carrying out the purposes of sections 12-563a and 12-800 824 to 12-818, inclusive, provided such transactions shall not be subject to 825 approval, review or regulation pursuant to title 4b or any other statute 826 by any state agency, except that real property transactions shall be 827 subject to review by the State Properties Review Board; 828 (17) To borrow money for the purpose of obtaining working capital; 829 (18) To hold patents, copyrights, trademarks, marketing rights, 830 licenses or any other evidence of protection or exclusivity issued under 831 the laws of the United States or any state; 832 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 28 of 31 (19) To employ such assistants, agents and other employees as may 833 be necessary or desirable to carry out its purposes in accordance with 834 sections 12-563a and 12-800 to 12-818, inclusive, to fix their 835 compensation and, subject to the provisions of subsections (e) and (f) 836 of section 12-802, establish all necessary and appropriate personnel 837 practices and policies; to engage consultants, accountants, attorneys 838 and financial and other independent professionals as may be necessary 839 or desirable to assist the corporation in performing its purposes in 840 accordance with sections 12-563a and 12-800 to 12-818, inclusive; 841 (20) To make and enter into all contracts and agreements necessary 842 or incidental to the performance of its duties and the execution of its 843 powers under sections 12-563a and 12-800 to 12-818, inclusive; 844 (21) In its own name, to sue and be sued, plead and be impleaded, 845 adopt a seal and alter the same at pleasure; 846 (22) Subject to the approval of the board and to the requirement to 847 remit excess lottery funds to the General Fund as set forth in section 848 12-812, as amended by this act, to invest any funds not needed for 849 immediate use or disbursement, including any funds held in approved 850 reserve accounts, in investments permitted by sections 3-20 and 3-27a 851 for the proceeds of state bonds; 852 (23) To procure insurance against any loss in connection with its 853 property and other assets in such amounts and from such insurers as it 854 deems desirable; 855 (24) To the extent permitted under any contract with other persons 856 to which the corporation is a party, to consent to any termination, 857 modification, forgiveness or other change of any term of any 858 contractual right, payment, royalty, contract or agreement of any kind; 859 (25) To acquire, lease, purchase, own, manage, hold and dispose of 860 personal property, and lease, convey or deal in or enter into 861 agreements with respect to such property on any terms necessary or 862 incidental to the carrying out of these purposes; 863 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 29 of 31 (26) To account for and audit funds of the corporation; 864 (27) To pay or provide for payment from operating revenues all 865 expenses, costs and obligations incurred by the corporation in the 866 exercise of the powers of the corporation under sections 12-563a and 867 12-800 to 12-818, inclusive; [and] 868 (28) To exercise any powers necessary to carry out the purposes of 869 sections 12-563a and 12-800 to 12-818, inclusive; [.] and 870 (29) To operate sports wagering in person, if licensed pursuant to 871 section 3 of this act, and to operate sports wagering on a platform, if 872 licensed pursuant to section 4 of this act. 873 Sec. 19. Section 17a-713 of the general statutes is repealed and the 874 following is substituted in lieu thereof (Effective July 1, 2019): 875 (a) The Department of Mental Health and Addiction Services shall 876 establish a program for the treatment and rehabilitation of compulsive 877 gamblers in the state. The program shall provide prevention, treatment 878 and rehabilitation services for chronic gamblers. The department may 879 enter into agreements with subregional planning and action councils 880 and nonprofit organizations to assist in providing these services, 881 provided not less than twenty-five per cent of the amount received 882 pursuant to section 12-818 annually shall be set aside for contracts with 883 subregional planning and action councils established pursuant to 884 section 17a-671 and nonprofit organizations and not less than five per 885 cent of the amount received pursuant to section 12-818 annually shall 886 be set aside for a contract with the Connecticut Council on Problem 887 Gambling. The department may impose a reasonable fee, on a sliding 888 scale, on those participants who can afford to pay for any such 889 services. The department shall implement such program when the 890 account established under subsection (b) of this section is sufficient to 891 meet initial operating expenses. As used in this section, "chronic 892 gambler" means a person who is chronically and progressively 893 preoccupied with gambling and the urge to gamble, and with 894 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 30 of 31 gambling behavior that compromises, disrupts or damages personal, 895 family or vocational pursuits. 896 (b) The program established by subsection (a) of this section shall be 897 funded by: [imposition of:] (1) [A] Imposition of a fee of one hundred 898 thirty-five dollars on each association license, for each performance of 899 jai alai or dog racing conducted under the provisions of chapter 226, 900 provided no such licensee shall contribute more than forty-five 901 thousand dollars in any one year; (2) imposition of a fee of twenty-five 902 dollars for each teletheater performance on each operator of a 903 teletheater facility; [and] (3) the amount received from the Connecticut 904 Lottery Corporation pursuant to section 12-818; and (4) the amount 905 received from the sports wagering account pursuant to section 6 of this 906 act. The Commissioner of Consumer Protection shall collect the fee 907 from each association licensee or such operator on a monthly basis. 908 The receipts shall be deposited in the General Fund and credited to a 909 separate, nonlapsing chronic gamblers treatment and rehabilitation 910 account which shall be established by the Comptroller. All moneys in 911 the account are deemed to be appropriated and shall be expended for 912 the purposes established in subsection (a) of this section. 913 (c) The department shall adopt regulations in accordance with the 914 provisions of chapter 54 to carry out the purposes of this section. 915 Sec. 20. Section 12-565a of the general statutes is repealed. (Effective 916 July 1, 2019) 917 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2019 New section Sec. 2 July 1, 2019 New section Sec. 3 July 1, 2019 New section Sec. 4 July 1, 2019 New section Sec. 5 July 1, 2019 New section Sec. 6 July 1, 2019 New section Sec. 7 July 1, 2019 12-577 Substitute Bill No. 7331 LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07331- R01-HB.docx } 31 of 31 Sec. 8 July 1, 2019 12-811(b) Sec. 9 July 1, 2019 12-812 Sec. 10 July 1, 2019 53-278a(2) Sec. 11 July 1, 2019 53-278a(4) Sec. 12 July 1, 2019 12-561 Sec. 13 July 1, 2019 12-810 Sec. 14 July 1, 2019 12-578f(a)(1) Sec. 15 July 1, 2019 New section Sec. 16 July 1, 2019 12-816 Sec. 17 July 1, 2019 12-801 Sec. 18 July 1, 2019 12-806 Sec. 19 July 1, 2019 17a-713 Sec. 20 July 1, 2019 Repealer section Statement of Legislative Commissioners: In Section 2(a), internal and statutory references were changed for accuracy; in Section 4(g), an internal reference was changed for accuracy. PS Joint Favorable Subst.