LCO No. 1555 1 of 103
General Assembly Raised Bill No. 5190
February Session, 2020
LCO No. 1555
Referred to Committee on PUBLIC SAFETY AND SECURITY
Introduced by:
(PS)
AN ACT ESTABLISHING A COMMISSION ON GAMI NG.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective January 1, 2021) (a) (1) There is established 1
a Commission on Gaming, which shall be under the direction and 2
supervision of three commission members appointed by the Governor 3
in accordance with the provisions of section 4-1a of the general statutes 4
and with the advice and consent of either house of the General 5
Assembly. Each member of the commission shall have experience with 6
one or more of the following: (A) Legal and policy issues related to 7
gaming, (B) gaming regulatory administration, (C) gaming industry 8
management, (D) criminal investigations and law enforcement, or (E) 9
corporate finance and securities. 10
(2) The Governor shall designate a member to serve as chairperson of 11
the commission. The chairperson shall preside at all meetings. Two 12
members shall constitute a quorum. The vote of a majority of the 13
members shall be required for action of the commission. 14
(3) The salary of each appointed member shall be established by the 15 Raised Bill No. 5190
LCO No. 1555 2 of 103
Department of Administrative Services. 16
(b) The Commission on Gaming shall constitute a successor agency, 17
in accordance with the provisions of sections 4-38d and 4-39 of the 18
general statutes, to the Department of Consumer Protection with respect 19
to all functions, powers and duties of the department transferred to the 20
commission under this section, sections 7-169d, 7-169h, 7-169i, 7-178, 12-21
557b to 12-578bb, inclusive, 12-579, 12-584, 12-585, 12-586f, 12-586g and 22
12-800 to 12-834, inclusive, subsection (b) of section 17a-713, sections 23
21a-1, 22-410, 22-412, 29-7c and 29-18c, subsection (a) of section 30-20, 24
subsection (e) of section 30-22a, subdivision (1) of subsection (b) of 25
section 30-39, section 30-59a, subsection (c) of section 31-51y and section 26
53-278g of the general statutes, as amended by this act. The Commission 27
on Gaming may implement policies and procedures consistent with the 28
provisions of this section, sections 7-169d, 7-169h, 7-169i, 7-178, 12-557b 29
to 12-578bb, inclusive, 12-579, 12-584, 12-585, 12-586f, 12-586g and 12-30
800 to 12-834, inclusive, subsection (b) of section 17a-713, sections 21a-1, 31
22-410, 22-412, 29-7c and 29-18c, subsection (a) of section 30-20, 32
subsection (e) of section 30-22a, subdivision (1) of subsection (b) of 33
section 30-39, section 30-59a, subsection (c) of section 31-51y and section 34
53-278g of the general statutes, as amended by this act, while in the 35
process of adopting the policy or procedure in regulation form, 36
provided notice of intention to adopt regulations is posted on the 37
eRegulations System not later than twenty days after implementation. 38
Any such policy or procedure shall be valid until the time final 39
regulations are effective. 40
(c) The Commission on Gaming shall be responsible for: (1) The 41
implementation and administration of provisions of the general statutes 42
governing gaming; (2) the licensing and oversight of individuals and 43
business organizations conducting gaming activities pursuant to 44
chapter 226 of the general states; (3) analysis of the market for gaming 45
activities in the state and promotion of gaming in the state; and (4) 46
making recommendations for legislation to implement a strategic plan 47
for gaming in the state. 48 Raised Bill No. 5190
LCO No. 1555 3 of 103
(d) The Governor shall appoint, in accordance with the provisions of 49
sections 4-5 to 4-8, inclusive, of the general statutes, as amended by this 50
act, an executive director to supervise the daily operations of the 51
commission. The executive director shall have professional experience 52
in gaming regulatory administration or gaming industry management. 53
The salary of the executive director shall be established by the 54
Department of Administrative Services. 55
(e) The commission shall consult with the Department of Consumer 56
Protection regarding the department's powers and duties transferred to 57
the commission under this section, sections 7-169d, 7-169h, 7-169i, 7-178, 58
12-577b to 12-578bb, inclusive, 12-579, 12-584, 12-585, 12-586f, 12-586g 59
and 12-800 to 12-834, inclusive, subsection (b) of section 17a-713, 60
sections 21a-1, 22-410, 22-412, 29-7c and 29-18c, subsection (a) of section 61
30-20, subsection (e) of section 30-22a, subdivision (1) of subsection (b) 62
of section 30-39, section 30-59a, subsection (c) of section 31-51y and 63
section 53-278g of the general statutes, as amended by this act. 64
(f) The Legislative Commissioners' Office shall, in codifying the 65
provisions of this section, sections 7-169d, 7-169h, 7-169i, 7-178, 12-557b 66
to 12-578bb, inclusive, 12-579, 12-584, 12-585, 12-586f, 12-586g and 12-67
800 to 12-834, inclusive, subsection (b) of section 17a-713, sections 21a-1, 68
22-410, 22-412, 29-7c and 29-18c, subsection (a) of section 30-20, 69
subsection (e) of section 30-22a, subdivision (1) of subsection (b) of 70
section 30-39, section 30-59a, subsection (c) of section 31-51y and section 71
53-278g of the general statutes, as amended by this act, make such 72
technical, grammatical and punctuation changes as are necessary to 73
carry out the purposes of this section. 74
Sec. 2. Section 4-5 of the 2020 supplement to the general statutes is 75
repealed and the following is substituted in lieu thereof (Effective January 76
1, 2021): 77
As used in sections 4-6, 4-7 and 4-8, the term "department head" 78
means Secretary of the Office of Policy and Management, Commissioner 79
of Administrative Services, Commissioner of Revenue Services, 80 Raised Bill No. 5190
LCO No. 1555 4 of 103
Banking Commissioner, Commissioner of Children and Families, 81
Commissioner of Consumer Protection, Commissioner of Correction, 82
Commissioner of Economic and Community Development, State Board 83
of Education, Commissioner of Emergency Services and Public 84
Protection, Commissioner of Energy and Environmental Protection, 85
Commissioner of Agriculture, Commissioner of Public Health, 86
Insurance Commissioner, Labor Commissioner, Commissioner of 87
Mental Health and Addiction Services, Commissioner of Social Services, 88
Commissioner of Developmental Services, Commissioner of Motor 89
Vehicles, Commissioner of Transportation, Commissioner of Veterans 90
Affairs, Commissioner of Housing, Commissioner of Aging and 91
Disability Services, the Commissioner of Early Childhood, the executive 92
director of the Office of Military Affairs, the executive director of the 93
Office of Health Strategy, [and] the executive director of the Technical 94
Education and Career System, and the executive director of the 95
Commission on Gaming. As used in sections 4-6 and 4-7, "department 96
head" also means the Commissioner of Education. 97
Sec. 3. Section 4-5 of the 2020 supplement to the general statutes, as 98
amended by section 6 of public act 17-237, section 279 of public act 17-2 99
of the June special session, section 20 of public act 18-182 and section 283 100
of public act 19-117, is repealed and the following is substituted in lieu 101
thereof (Effective July 1, 2022): 102
As used in sections 4-6, 4-7 and 4-8, the term "department head" 103
means Secretary of the Office of Policy and Management, Commissioner 104
of Administrative Services, Commissioner of Revenue Services, 105
Banking Commissioner, Commissioner of Children and Families, 106
Commissioner of Consumer Protection, Commissioner of Correction, 107
Commissioner of Economic and Community Development, State Board 108
of Education, Commissioner of Emergency Services and Public 109
Protection, Commissioner of Energy and Environmental Protection, 110
Commissioner of Agriculture, Commissioner of Public Health, 111
Insurance Commissioner, Labor Commissioner, Commissioner of 112
Mental Health and Addiction Services, Commissioner of Social Services, 113
Commissioner of Developmental Services, Commissioner of Motor 114 Raised Bill No. 5190
LCO No. 1555 5 of 103
Vehicles, Commissioner of Transportation, Commissioner of Veterans 115
Affairs, Commissioner of Housing, Commissioner of Rehabilitation 116
Services, the Commissioner of Early Childhood, the executive director 117
of the Office of Military Affairs, [and] the executive director of the 118
Technical Education and Career System, and the executive director of 119
the Commission on Gaming. As used in sections 4-6 and 4-7, 120
"department head" also means the Commissioner of Education. 121
Sec. 4. Section 4-38c of the 2020 supplement to the general statutes is 122
repealed and the following is substituted in lieu thereof (Effective January 123
1, 2021): 124
There shall be within the executive branch of state government the 125
following departments: Office of Policy and Management, Department 126
of Administrative Services, Department of Aging and Disability 127
Services, Department of Revenue Services, Department of Banking, 128
Department of Agriculture, Department of Children and Families, 129
Department of Consumer Protection, Department of Correction, 130
Department of Economic and Community Development, State Board of 131
Education, Department of Emergency Services and Public Protection, 132
Department of Energy and Environmental Protection, Department of 133
Public Health, Board of Regents for Higher Education, Insurance 134
Department, Labor Department, Department of Mental Health and 135
Addiction Services, Department of Developmental Services, 136
Department of Social Services, Department of Rehabilitation Services, 137
Department of Transportation, Department of Mo tor Vehicles, 138
Department of Veterans Affairs, [and] the Technical Education and 139
Career System, and the Commission on Gaming. 140
Sec. 5. Section 4-38c of the 2020 supplement to the general statutes, as 141
amended by section 7 of public act 17-237, section 287 of public act 17-2 142
of the June special session, section 21 of public act 18-182 and section 284 143
of public act 19-117, is repealed and the following is substituted in lieu 144
thereof (Effective July 1, 2022): 145
There shall be within the executive branch of state government the 146 Raised Bill No. 5190
LCO No. 1555 6 of 103
following departments: Office of Policy and Management, Department 147
of Administrative Services, Department of Revenue Services, 148
Department of Banking, Department of Agriculture, Department of 149
Children and Families, Department of Consumer Pro tection, 150
Department of Correction, Department of Economic and Community 151
Development, State Board of Education, Department of Emergency 152
Services and Public Protection, Department of Energy and 153
Environmental Protection, Department of Public Health, Board of 154
Regents for Higher Education, Insurance Department, Labor 155
Department, Department of Mental Health and Addiction Services, 156
Department of Developmental Services, Department of Social Services, 157
Department of Transportation, Department of Motor Vehicles, 158
Department of Veterans Affairs, [and] the Technical Education and 159
Career System, and the Commission on Gaming. 160
Sec. 6. Section 7-169d of the general statutes is repealed and the 161
following is substituted in lieu thereof (Effective January 1, 2021): 162
(a) For the purposes of this section, (1) "bingo game" has the same 163
meaning as provided in section 7-169, and (2) "bingo products" means 164
bingo ball equipment, bingo cards or bingo paper. 165
(b) Each group or organization authorized to operate or conduct a 166
bingo game or series of bingo games pursuant to sections 7-169 to 7-167
169c, inclusive, shall use bingo products that are (1) owned in full by 168
such group or organization, (2) used without compensation by such 169
group or organization, or (3) rented or purchased from a bingo product 170
manufacturer or equipment dealer who is registered with the 171
[Commissioner of Consumer Protection] Commission on Gaming in 172
accordance with subsection (c) of this section. 173
(c) Each applicant for registration as a bingo product manufacturer 174
or equipment dealer shall apply to the [Commissioner of Consumer 175
Protection] Commission on Gaming on such forms as the 176
[commissioner] commission prescribes. The application shall be 177
accompanied by an annual fee of two thousand five hundred dollars 178 Raised Bill No. 5190
LCO No. 1555 7 of 103
payable to the State Treasurer. Each applicant for an initial registration 179
shall submit to state and national criminal history records checks 180
conducted in accordance with section 29-17a before such registration is 181
issued. 182
(d) No registered bingo product manufacturer or equipment dealer 183
shall rent or sell any type of bingo product that has not been approved 184
by the [Commissioner of Consumer Protection] Commission on 185
Gaming. 186
(e) The [Commissioner of Consumer Protection] Commission on 187
Gaming may revoke for cause any registration issued pursuant to 188
subsection (c) of this section. 189
(f) The [Commissioner of Consumer Protection] Commission on 190
Gaming may adopt regulations, in accordance with chapter 54, to 191
implement the provisions of this section. 192
Sec. 7. Section 7-169h of the general statutes is repealed and the 193
following is substituted in lieu thereof (Effective January 1, 2021): 194
(a) For the purposes of this section and section 7-169i, as amended by 195
this act: 196
[(1) "Commissioner" means the Commissioner of Consumer 197
Protection; 198
(2) "Department" means the Department of Consumer Protection;] 199
(1) "Commission" means the Commission on Gaming; 200
[(3)] (2) "Sealed ticket" means a card with tabs which, when pulled, 201
expose pictures of various objects, symbols or numbers and which 202
entitles the holder of the ticket to receive a prize if the combination of 203
objects, symbols or numbers pictured matches what is determined to be 204
a winning combination; 205
[(4)] (3) "Distributor" means a person who is a resident of this state 206 Raised Bill No. 5190
LCO No. 1555 8 of 103
and is registered with the [department] commission to provide services 207
related to the sale and distribution of sealed tickets to any organization 208
permitted to sell sealed tickets by the [department] commission; and 209
[(5)] (4) "Manufacturer" means a person who is registered with the 210
[department] commission and who manufactures or assembles sealed 211
tickets from raw materials, supplies or subparts. 212
(b) No person shall sell, offer for sale or distribute a sealed ticket who 213
has not applied for and received a permit from the [department] 214
commission to sell sealed tickets. 215
(c) No organization permitted to sell sealed tickets in this state shall 216
purchase sealed tickets from anyone other than a distributor. 217
(d) A distributor shall not purchase sealed tickets for sale or use in 218
this state from any person except a manufacturer. A distributor shall 219
have a physical office in this state and such office shall be subject to 220
inspection by the [commissioner or the commissioner's duly designated 221
agent] members and staff of the commission during normal business 222
hours. No organization or group or any person affiliated with an 223
organization or group permitted to sell sealed tickets under this section 224
shall be permitted to be a distributor. 225
(e) A manufacturer shall not sell sealed tickets to any person in this 226
state except a distributor. 227
(f) All sealed tickets purchased by a distributor for sale or use in this 228
state shall be stored or warehoused in this state prior to their sale to any 229
organization permitted to sell sealed tickets. 230
(g) All sealed tickets sold in this state shall meet the standards on 231
pull-tabs adopted by the North American Gaming Regulators 232
Association. 233
(h) The [department] commission may issue a permit to sell sealed 234
tickets to any organization or group specified in section 7-172. 235 Raised Bill No. 5190
LCO No. 1555 9 of 103
(i) On and after July 1, 2011, the [department] commission may sell 236
any sealed tickets [it has] that the Department of Consumer Protection 237
had in its possession as of [said date] July 1, 2011, provided [it does] the 238
commission and department do not purchase any new sealed tickets 239
after [said date] July 1, 2011. Permittees shall purchase such sealed 240
tickets from the [department] commission at a cost which is equal to ten 241
per cent of their resale value, until the [department's] commission's 242
supply of sealed tickets has been fully depleted. After the [department's] 243
supply of sealed tickets has been fully depleted, permittees shall 244
purchase such sealed tickets from a distributor at a cost which is equal 245
to ten per cent of their resale value. Each such distributor shall remit 246
thirty per cent of its gross revenue derived from such purchase fees to 247
the State Treasurer on a quarterly basis. 248
(j) Each applicant for registration as a manufacturer or distributor 249
shall apply to the [commissioner] commission on such forms as the 250
[commissioner] commission prescribes. A distributor's application shall 251
be accompanied by an annual fee of two thousand five hundred dollars, 252
payable to the State Treasurer, and a manufacturer's application shall be 253
accompanied by an annual fee of five thousand dollars, payable to the 254
State Treasurer. Each applicant for an initial manufacturer or distributor 255
registration shall submit to state and national criminal history records 256
checks conducted in accordance with section 29-17a before such 257
registration is issued. 258
(k) Notwithstanding the provisions of subsection (b) of section 53-259
278b and subsection (d) of section 53-278c, sealed tickets may be sold, 260
offered for sale, displayed or open to public view only (1) during the 261
course of a bingo game conducted in accordance with the provisions of 262
section 7-169 and only at the location at which such bingo game is 263
conducted, (2) on the premises of any such organization or group 264
specified in subdivision (2) of subsection (h) of this section, (3) during 265
the conduct of a bazaar under the provisions of sections 7-170 to 7-186, 266
inclusive, as amended by this act, or (4) in conjunction with any social 267
function or event sponsored or conducted by any such organization 268
specified in subdivision (4) of subsection (h) of this section. Subject to 269 Raised Bill No. 5190
LCO No. 1555 10 of 103
the provisions of section 7-169i, as amended by this act, permittees may 270
utilize a mechanical or electronic ticket dispensing machine approved 271
by the [department] commission to sell sealed tickets. Sealed tickets 272
shall not be sold to any person less than eighteen years of age. All 273
proceeds from the sale of tickets shall be used for a charitable purpose, 274
as defined in section 21a-190a. 275
(l) The fee for a permit to sell sealed tickets (1) issued to an 276
organization authorized to conduct bingo under a "Class A" or "Class C" 277
permit or to an organization specified in subdivision (4) of subsection 278
(h) of this section in conjunction with any social function or event 279
sponsored or conducted by such organization shall be fifty dollars, (2) 280
issued to an organization which holds a club permit or nonprofit club 281
permit under the provisions of chapter 545 shall be seventy-five dollars, 282
and (3) issued to an organization authorized to conduct bingo under a 283
"Class B" permit or an organization which holds a permit to operate a 284
bazaar shall be five dollars per day. 285
(m) The [commissioner] commission shall adopt regulations in 286
accordance with the provisions of chapter 54 to carry out the purposes 287
of this section including, but not limited to, regulations concerning (1) 288
qualifications of a charitable organization, (2) the price at which the 289
charitable organization shall resell tickets, (3) information required on 290
the ticket, including, but not limited to, the price per ticket, (4) the 291
percentage retained by the organization as profit, which shall be at least 292
ten per cent of the resale value of tickets sold, (5) the percentage of the 293
resale value of tickets to be awarded as prizes, which shall be at least 294
forty-five per cent, (6) apportionment of revenues received by the 295
[department] commission from the sale of tickets, and (7) investigations 296
of any charitable organization seeking a permit. 297
(n) (1) Whenever it appears to the [commissioner] commission after 298
an investigation that any person is violating or is about to violate any 299
provision of this section or [administrative] regulations issued pursuant 300
[thereto] to this section, the [commissioner] commission may, [in his or 301
her discretion,] to protect the public welfare, order that any permit 302 Raised Bill No. 5190
LCO No. 1555 11 of 103
issued pursuant to this section be immediately suspended or revoked 303
and that the person cease and desist from the actions constituting such 304
violation or which would constitute such violation. After such an order 305
is issued, the person named [therein] in the order may, within fourteen 306
days after receipt of the order, file a written request for a hearing. Such 307
hearing shall be held in accordance with the provisions of chapter 54. 308
(2) Whenever the [commissioner] commission finds as the result of 309
an investigation that any person has violated any provision of this 310
section or [administrative] regulations issued pursuant [thereto] to this 311
section or made any false statement in any application for a permit or in 312
any report required by the [commissioner] commission, the 313
[commissioner] commission may send a notice to such person by 314
certified mail, return receipt requested. Any such notice shall include 315
(A) a reference to the section or regulation alleged to have been violated 316
or the application or report in which an alleged false statement was 317
made, (B) a short and plain statement of the matter asserted or charged, 318
(C) the fact that any permit issued pursuant to this section may be 319
suspended or revoked for such violation or false statement and the 320
maximum penalty that may be imposed for such violation or false 321
statement, and (D) the time and place for the hearing. Such hearing shall 322
be fixed for a date not earlier than fourteen days after the notice is 323
mailed. 324
(3) The [commissioner] commission shall hold a hearing upon the 325
charges made unless such person fails to appear at the hearing. Such 326
hearing shall be held in accordance with the provisions of chapter 54. If 327
such person fails to appear at the hearing or if, after the hearing, the 328
[commissioner] commission finds that such person committed such a 329
violation or made such a false statement, the [commissioner] 330
commission may [, in his or her discretion,] suspend or revoke such 331
permit and order that a civil penalty of not more than five hundred 332
dollars be imposed upon such person for such violation or false 333
statement. The [commissioner] commission shall send a copy of any 334
order issued pursuant to this subdivision by certified mail, return 335
receipt requested, to any person named in such order. Any person 336 Raised Bill No. 5190
LCO No. 1555 12 of 103
aggrieved by a decision of the [commissioner] commission under this 337
subdivision shall have a right of appeal pursuant to section 4-183. 338
(4) Whenever the [commissioner] commission revokes a permit 339
issued pursuant to this section, [he or she] the commission shall not 340
issue any permit to such permittee for one year after the date of such 341
revocation. 342
Sec. 8. Section 7-169i of the general statutes is repealed and the 343
following is substituted in lieu thereof (Effective January 1, 2021): 344
(a) No permittee pursuant to section 7-169h, as amended by this act, 345
may use a mechanical or electronic ticket dispensing machine to sell 346
sealed tickets unless such machine is owned in full by the permittee or 347
is rented or purchased from a manufacturer or dealer who is registered 348
with the [Department of Consumer Protection] commission. 349
(b) Each applicant for registration as a manufacturer or dealer in 350
sealed ticket dispensing machines shall apply to the [commissioner] 351
commission on such forms as the [commissioner] commission 352
prescribes. The application for manufacturer shall be accompanied by 353
an annual fee of one thousand two hundred fifty dollars payable to the 354
State Treasurer. The application for dealer shall be accompanied by an 355
annual fee of six hundred twenty-five dollars payable to the State 356
Treasurer. Each applicant for initial registration shall submit to state and 357
national criminal history records checks conducted in accordance with 358
section 29-17a before such registration is issued. 359
(c) The [Department of Consumer Protection] commission may 360
revoke for cause any registration issued in accordance with subsection 361
(a) of this section. 362
(d) The [commissioner] commission may adopt regulations, in 363
accordance with chapter 54, to implement the provisions of this section. 364
Sec. 9. Section 7-178 of the general statutes is repealed and the 365
following is substituted in lieu thereof (Effective January 1, 2021): 366 Raised Bill No. 5190
LCO No. 1555 13 of 103
(a) No bazaar or raffle shall be conducted with any equipment except 367
such as is owned absolutely or used without payment of any 368
compensation therefor by the permittee or as is rented from a dealer in 369
such equipment who (1) has a principal place of business in this state, 370
and (2) is registered with the [Commissioner of Consumer Protection] 371
Commission on Gaming in such manner and on such form as [he] the 372
commission may prescribe, which form shall be accompanied by an 373
annual fee of three hundred seventy-five dollars payable to the 374
Treasurer of the state of Connecticut. No item of expense shall be 375
incurred or paid in connection with the holding, operating or 376
conducting of any bazaar or raffle pursuant to any permit issued under 377
sections 7-170 to 7-186, inclusive, as amended by this act, except such as 378
are bona fide items of reasonable amount for goods, wares and 379
merchandise furnished or services rendered, which are reasonably 380
necessary to be purchased or furnished for the holding, operating or 381
conducting thereof, and no commission, salary, compensation, reward 382
or recompense [whatever] whatsoever shall be paid or given, directly or 383
indirectly, to any person holding, operating or conducting, or assisting 384
in the holding, operation or conduct of, any such bazaar or raffle. Each 385
raffle ticket shall have printed thereon the time, date and place of the 386
raffle, the three most valuable prizes to be awarded and the total 387
number of prizes to be awarded as specified on the form prescribed in 388
section 7-173. In addition to any other information required under this 389
section to be printed on a raffle ticket, each ticket for a raffle authorized 390
pursuant to a "Class No. 7" permit shall have printed thereon the time, 391
date and place of each raffle drawing. 392
(b) Notwithstanding the provisions of subsection (a) of this section, a 393
permittee may rent equipment from a dealer who does not have a 394
principal place of business in this state if an in-state dealer is 395
unavailable, provided such out-of-state dealer is registered with [said 396
commissioner] the commission pursuant to [the provisions of said] 397
subsection (a) of this section. 398
Sec. 10. Section 12-3a of the 2020 supplement to the general statutes 399
is repealed and the following is substituted in lieu thereof (Effective 400 Raised Bill No. 5190
LCO No. 1555 14 of 103
January 1, 2021): 401
(a) There is created a Penalty Review Committee, which shall consist 402
of the State Comptroller or an employee of the office of the State 403
Comptroller designated by said Comptroller, the Secretary of the Office 404
of Policy and Management or an employee of the Office of Policy and 405
Management designated by said secretary and the Commissioner of 406
Revenue Services or an employee of the Department of Revenue 407
Services designated by said commissioner. Said committee shall meet 408
monthly or as often as necessary to approve any waiver of penalty in 409
excess of five thousand dollars, which the Commissioner of Revenue 410
Services is authorized to waive in accordance with this title, or which 411
the [Commissioner of Consumer Protection] Commission on Gaming is 412
authorized to waive in accordance with chapter 226. A majority vote of 413
the committee shall be required for approval of such waiver. 414
(b) An itemized statement of all waivers approved under this section 415
shall be available to the public for inspection by any person. 416
(c) The Penalty Review Committee created pursuant to subsection (a) 417
of this section shall adopt regulations, in accordance with chapter 54, 418
establishing guidelines for the waiver of any penalty in accordance with 419
this section. 420
(d) Any person aggrieved by the action of the Penalty Review 421
Committee may, not later than thirty days after notice of such action is 422
delivered or mailed to such person, appeal therefrom to the superior 423
court for the judicial district of New Britain, which shall be accompanied 424
by a citation to the members of said committee to appear before said 425
court. Such citation shall be signed by the same authority, and such 426
appeal shall be returnable at the same time and served and returned in 427
the same manner as is required in case of a summons in a civil action. 428
The authority issuing the citation shall take from the appellant a bond 429
or recognizance to the state of Connecticut with surety to prosecute the 430
appeal to effect and to comply with the orders and decrees of the court 431
in the premises. Such appeals shall be preferred cases, to be heard, 432 Raised Bill No. 5190
LCO No. 1555 15 of 103
unless cause appears to the contrary, at the first session, by the court or 433
by a committee appointed by it. Said court may grant such relief as may 434
be equitable. If the appeal is without probable cause, the court may tax 435
double or triple costs, as the case demands; and, upon all such appeals 436
which may be denied, costs may be taxed against the appellant at the 437
discretion of the court, but no costs shall be taxed against the state. 438
Sec. 11. Section 12-557b of the general statutes is repealed and the 439
following is substituted in lieu thereof (Effective January 1, 2021): 440
As used in this chapter, sections 12-578a to 12-578e, inclusive, as 441
amended by this act, 12-579, as amended by this act, and 12-580, chapter 442
226b, and section 53-278g, as amended by this act, unless the context 443
otherwise requires: 444
[(1) "Commissioner" means the Commissioner of Consumer 445
Protection; 446
(2) "Department" means the Department of Consumer Protection;] 447
(1) "Commission" means the Commission on Gaming; 448
[(3)] (2) "Business organization" means a partnership, incorporated or 449
unincorporated association, firm, corporation, trust or other form of 450
business or legal entity, other than a financial institution regulated by a 451
state or federal agency which is not exercising control over an 452
association licensee, but does not mean a governmental or sovereign 453
entity; 454
[(4)] (3) "Control" means the power to exercise authority over or direct 455
the management and policies of a person or business organization; 456
[(5)] (4) "Casino gaming facility" means any casino gaming facility 457
authorized by any provision of the general statutes or a public or special 458
act to conduct authorized games on its premises, but does not include 459
any casino gaming facility located on Indian lands pursuant to the 460
Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2701 et seq.; 461 Raised Bill No. 5190
LCO No. 1555 16 of 103
[(6)] (5) "Authorized game" means any game of chance specifically 462
authorized to be conducted at a casino gaming facility by any provision 463
of the general statutes or a public or special act; and 464
[(7)] (6) "Gross gaming revenue" means the total of all sums actually 465
received by a casino gaming facility from gaming operations less the 466
total of all sums paid as winnings to patrons of the casino gaming 467
facility, provided the total of all sums paid as winnings to such patrons 468
shall not include the cash equivalent value of any merchandise or thing 469
of value included in a jackpot or payout, and provided further the 470
issuance to or wagering by such patrons of any promotional gaming 471
credit shall not be included in the total of all sums actually received by 472
a casino gaming facility for the purposes of determining gross gaming 473
revenue. 474
Sec. 12. Section 12-559 of the general statutes is repealed and the 475
following is substituted in lieu thereof (Effective January 1, 2021): 476
The [commissioner] commission may employ stewards for 477
thoroughbred racing, judges for harness racing, greyhound racing and 478
jai alai, and veterinarians who shall be exempt from classified service, 479
and may employ, subject to the provisions of chapter 67, such other 480
employees as may be necessary to carry out the provisions of this 481
chapter. The [commissioner] commission shall require such persons to 482
submit to state and national criminal history records checks before being 483
employed. The criminal history records checks required pursuant to this 484
section shall be conducted in accordance with section 29-17a. All 485
persons employed pursuant to this section, with the exception of any 486
steward, judge or veterinarian, shall be residents of the state at the time 487
of and during the full term of their employment. 488
Sec. 13. Section 12-560 of the general statutes is repealed and the 489
following is substituted in lieu thereof (Effective January 1, 2021): 490
The [commissioner] commission may, if [he] the executive director of 491
the commission determines that it is necessary, require any of the 492
[department's] commission's employees to give bond in such amount as 493 Raised Bill No. 5190
LCO No. 1555 17 of 103
the [commissioner] executive director may determine. Every such bond 494
when duly executed and approved shall be filed in the office of the 495
Secretary of the State. The cost of any such bond so given [as aforesaid] 496
shall be part of the necessary expenses of the [department] commission. 497
Sec. 14. Section 12-561 of the general statutes is repealed and the 498
following is substituted in lieu thereof (Effective January 1, 2021): 499
No [commissioner or] commission member, executive director of the 500
commission, unit head or employee of the [department] commission 501
shall directly or indirectly, individually or as a member of a partnership 502
or as a shareholder of a corporation, have any interest whatsoever in 503
dealing in any lottery, racing, fronton, betting enterprise or casino 504
gaming facility or in the ownership or leasing of any property or 505
premises used by or for any lottery, racing, fronton, betting enterprise 506
or casino gaming facility. No [commissioner or] commission member, 507
executive director or unit head shall, directly or indirectly, wager at any 508
off-track betting facility, race track or fronton authorized under this 509
chapter, purchase lottery tickets issued under this chapter or play, 510
directly or indirectly, any authorized game conducted at a casino 511
gaming facility. The [commissioner] commission may adopt regulations 512
in accordance with the provisions of chapter 54 to prohibit any 513
employee of the [department] commission from engaging, directly or 514
indirectly, in any form of legalized gambling activity in which such 515
employee is involved because of his or her employment with the 516
[department] commission. For purposes of this section, "unit head" 517
means a managerial employee with direct oversight of a legalized 518
gambling activity. 519
Sec. 15. Section 12-562 of the general statutes is repealed and the 520
following is substituted in lieu thereof (Effective January 1, 2021): 521
(a) Except as provided in subsection (b) of this section, the 522
[commissioner] commission shall have power to enforce the provisions 523
of this chapter and chapter 226b, and shall adopt all necessary 524
regulations for that purpose and for carrying out, enforcing and 525 Raised Bill No. 5190
LCO No. 1555 18 of 103
preventing violation of any of the provisions of this chapter, for the 526
inspection of licensed premises, enterprises or casino gaming facilities, 527
for insuring proper, safe and orderly conduct of licensed premises, 528
enterprises or casino gaming facilities and for protecting the public 529
against fraud or overcharge. The [commissioner] commission shall have 530
power generally to do whatever is reasonably necessary for the carrying 531
out of the intent of this chapter; and may call upon other administrative 532
departments of the state government and of municipal governments for 533
such information and assistance as [he or she] the commission deems 534
necessary to the performance of [his or her] the commission's duties. The 535
[commissioner] commission shall set racing and jai alai meeting dates, 536
except that the [commissioner] commission may delegate to designated 537
staff the authority for setting make-up performance dates. The 538
[commissioner] commission shall, as far as practicable, avoid conflicts 539
in the dates assigned for racing or the exhibition of the game of jai alai 540
in the state. 541
(b) The special [policemen] police officers in the [Department of 542
Consumer Protection] commission and the legalized gambling 543
investigative unit in the Division of State Police within the Department 544
of Emergency Services and Public Protection shall be responsible for the 545
criminal enforcement of the provisions of sections 7-169 to 7-186, 546
inclusive, as amended by this act, this chapter and chapters 226b and 547
229a. [They] The special police officers shall have the powers and duties 548
specified in section 29-7c, as amended by this act. 549
Sec. 16. Section 12-563 of the general statutes is repealed and the 550
following is substituted in lieu thereof (Effective January 1, 2021): 551
All regulations of the [department] commission shall be adopted [in 552
the manner provided] in accordance with chapter 54. The 553
[commissioner] commission shall, at least annually, on or before 554
December thirty-first of each year, either (1) publish in convenient 555
pamphlet form all regulations then in force and shall furnish copies of 556
such pamphlets to such persons who desire such pamphlets, or (2) post 557
such regulations on the [department's] commission's Internet web site. 558 Raised Bill No. 5190
LCO No. 1555 19 of 103
Sec. 17. Section 12-563a of the general statutes is repealed and the 559
following is substituted in lieu thereof (Effective January 1, 2021): 560
The [Commissioner of Consumer Protection] commission shall, 561
within available resources, prepare and distribute informational 562
materials designed to inform the public of the programs available for 563
the prevention, treatment and rehabilitation of compulsive gamblers in 564
this state. The [commissioner] commission shall require any casino 565
gaming facility and any person or business organization which is 566
licensed to sell lottery tickets, operate an off-track betting system or 567
conduct wagering on racing events or jai alai games, to display such 568
informational materials at the casino gaming facility and each licensed 569
premise, respectively. 570
Sec. 18. Section 12-564 of the general statutes is repealed and the 571
following is substituted in lieu thereof (Effective January 1, 2021): 572
(a) The [commissioner] commission shall make an annual report in 573
writing to the Governor as provided in section 4-60 and shall make such 574
additional reports as the Governor may from time to time reasonably 575
request. The annual report shall include a statement of the receipts and 576
disbursements of the [department] commission, a statement of the costs 577
of administering the [department] commission, a summary of its 578
activities, and any additional information and recommendations which 579
the [commissioner] commission may deem of value or which the 580
Governor may request. 581
(b) The [commissioner] commission shall conduct studies concerning 582
the effect of legalized gambling on the citizens of this state including, 583
but not limited to, studies to determine the types of gambling activity 584
engaged in by the public and the desirability of expanding, maintaining 585
or reducing the amount of legalized gambling permitted in this state. 586
Such studies shall be conducted as often as the [commissioner] 587
commission deems necessary, except that no studies shall be conducted 588
before the fiscal year ending June 30, 2009, and thereafter studies shall 589
be conducted at least once every ten years. The joint standing 590 Raised Bill No. 5190
LCO No. 1555 20 of 103
[committees] committee of the General Assembly having cognizance of 591
matters relating to [legalized gambling] public safety and security shall 592
[each] receive a report concerning each study [carried out] conducted, 593
stating the findings of the study and the costs of conducting the study. 594
Sec. 19. Section 12-564a of the general statutes is repealed and the 595
following is substituted in lieu thereof (Effective January 1, 2021): 596
The [Commissioner of Consumer Protection] commission shall 597
submit a report to the Commissioner of Emergency Services and Public 598
Protection and the joint standing committee of the General Assembly 599
having cognizance of matters relating to [legalized gambling] public 600
safety and security, not later than the fifteenth business day of each 601
month, which report shall set forth a detailed statement of (1) any 602
investigations conducted by the [Department of Consumer Protection] 603
commission in the previous month, and (2) such arrest data as the 604
Commissioner of Emergency Services and Public Protection or the 605
committee may require, including, but not limited to, the number of 606
arrests made by the special [policemen] police officers in the security 607
unit of the [Department of Consumer Protection] commission. 608
Sec. 20. Section 12-565 of the general statutes is repealed and the 609
following is substituted in lieu thereof (Effective January 1, 2021): 610
The [commissioner] commission may conduct any inquiry, 611
investigation or hearing necessary to carry out the provisions of this 612
chapter. The [commissioner] commission shall have power to 613
administer oaths and take testimony under oath concerning the matter 614
of inquiry or investigation. At any hearing ordered, the [commissioner] 615
commission or an agent authorized by law to issue such process may 616
subpoena witnesses and require the production of records, papers and 617
documents pertinent to such inquiry. No witness under subpoena 618
issued under the provisions of this section shall be excused from 619
testifying or from producing records, papers or documents on the 620
ground that such testimony or the production of such records or other 621
documentary evidence would tend to incriminate him, but such 622 Raised Bill No. 5190
LCO No. 1555 21 of 103
evidence or the records or papers so produced shall not be used in any 623
criminal proceeding against him. If any person disobeys such process 624
or, having appeared in obedience thereto, refuses to answer any 625
pertinent question put to him or to produce any records and papers 626
pursuant thereto, the [commissioner] commission may apply to the 627
superior court for the judicial district of Hartford or for the judicial 628
district wherein the person resides or wherein the business has been 629
conducted, or to any judge of said court if the same is not in session, 630
setting forth such disobedience to process or refusal to answer. Said 631
court or such judge shall cite such person to appear before said court or 632
such judge to answer such question or to produce such records and 633
papers and, upon his refusal to do so, shall commit such person to a 634
community correctional center until he testifies, but not for a longer 635
period than sixty days. Notwithstanding the serving of the term of such 636
commitment by any person, the [commissioner] commission may 637
proceed with such inquiry and examination as if the witness had not 638
previously been called upon to testify. Officers who serve subpoenas 639
issued by the [commissioner] commission or under [his] the 640
commission's authority and witnesses attending hearings conducted 641
under this section shall receive the same fees and compensation as 642
officers and witnesses in the courts of this state to be paid on vouchers 643
of the [department] commission on order of the Comptroller. The 644
[commissioner] commission may delegate the powers granted to [him] 645
it under this section. 646
Sec. 21. Section 12-565a of the general statutes is repealed and the 647
following is substituted in lieu thereof (Effective January 1, 2021): 648
The [Commissioner of Consumer Protection] commission shall adopt 649
regulations, in accordance with the provisions of chapter 54, to regulate 650
wagering on sporting events to the extent permitted by state and federal 651
law. 652
Sec. 22. Section 12-566 of the general statutes is repealed and the 653
following is substituted in lieu thereof (Effective January 1, 2021): 654 Raised Bill No. 5190
LCO No. 1555 22 of 103
The [commissioner] commission shall provide books in which shall 655
be kept a true, faithful and correct record of all of the [department's] 656
commission's proceedings, which books shall be open to the public as 657
provided in section 1-210. 658
Sec. 23. Section 12-568a of the general statutes is repealed and the 659
following is substituted in lieu thereof (Effective January 1, 2021): 660
The [Department of Consumer Protection] commission shall adopt 661
regulations, in accordance with chapter 54, for the purpose of [assuring] 662
ensuring the integrity of the state lottery, concerning the regulation of 663
the state lottery under the operation and management of the 664
Connecticut Lottery Corporation. Such regulations shall include 665
provisions governing: (1) The licensing of employees of the Connecticut 666
Lottery Corporation and any person or business organization awarded 667
the primary contract by said corporation to provide facilities, 668
components, goods or services which are necessary for the operation of 669
the activities authorized by chapter 229a; (2) the approval of procedures 670
of the corporation; (3) the time period for complying with the 671
regulations governing said approval of procedures; (4) offerings of 672
lottery games; (5) minimum prize payouts and payments; (6) regulation 673
of lottery sales agents including qualifications for licensure and license 674
suspension and revocation; (7) assurance of the integrity of the state 675
lottery including the computer gaming system, computer internal 676
control and system testing; and (8) limitations on advertising and 677
marketing content to assure public information as to the odds of 678
winning the lottery and the prohibition of sales of tickets to minors. 679
Sec. 24. Section 12-569 of the general statutes is repealed and the 680
following is substituted in lieu thereof (Effective January 1, 2021): 681
(a) If the president of the Connecticut Lottery Corporation 682
determines that any lottery sales agent has breached such agent's 683
fiduciary responsibility to the corporation in that the account of such 684
lottery sales agent with respect to moneys received from the sale of 685
lottery tickets has become delinquent in accordance with regulations 686 Raised Bill No. 5190
LCO No. 1555 23 of 103
adopted as provided in section 12-568a, as amended by this act, the 687
president shall notify the [commissioner] commission of the breach of 688
fiduciary duty and the [commissioner] commission shall impose a 689
delinquency assessment upon such account equal to ten per cent of the 690
amount due or ten dollars, whichever amount is greater, plus interest at 691
the rate of one and one-half per cent of such amount for each month or 692
fraction of a month from the date such amount is due to the date of 693
payment. Subject to the provisions of section 12-3a, as amended by this 694
act, the [commissioner] commission may waive all or part of the 695
penalties provided under this subsection when it is proven to the 696
[commissioner's] commission's satisfaction that the failure to pay such 697
moneys to the state within the time allowed was due to reasonable cause 698
and was not intentional or due to neglect. Any such delinquent lottery 699
sales agent shall be notified of such delinquency assessment and shall 700
be afforded an opportunity to contest the validity and amount of such 701
assessment [before the commissioner who may conduct such hearing] 702
at a commission hearing. Upon request of the president of the 703
Connecticut Lottery Corporation, the [commissioner] commission may 704
prepare and sign a warrant directed to any state marshal, constable or 705
any collection agent employed by the Connecticut Lottery Corporation 706
for distraint upon any property of such delinquent lottery sales agent 707
within the state, whether personal or real property. An itemized bill 708
shall be attached to the warrant certified by the [commissioner] 709
commission as a true statement of the amount due from such lottery 710
sales agent. Such warrant shall have the same force and effect as an 711
execution issued in accordance with chapter 906. Such warrant shall be 712
levied on any real, personal, tangible or intangible property of such 713
agent and sale made pursuant to such warrant in the same manner and 714
with the same force and effect as a levy and sale pursuant to an 715
execution. 716
(b) The [commissioner] commission shall adopt regulations in 717
accordance with chapter 54 to carry out the purposes of this section. 718
Sec. 25. Section 12-571 of the 2020 supplement to the general statutes 719
is repealed and the following is substituted in lieu thereof (Effective 720 Raised Bill No. 5190
LCO No. 1555 24 of 103
January 1, 2021): 721
(a) The [Commissioner of Consumer Protection] commission shall 722
enter into negotiations with a person or business organization for the 723
award of a contract of sale of the off-track betting system including, but 724
not limited to, the assets and liabilities of the system and the right to 725
operate the system. Such contract of sale shall authorize the purchaser 726
of the system to establish and conduct a system of off-track betting on 727
races held within or without the state pursuant to the provisions of this 728
chapter. All proceeds derived from such sale shall be deposited as 729
provided in section 39 of public act 93-332. Until the effective date of 730
transfer of ownership of the off-track betting system, the [commissioner] 731
commission shall establish and conduct systems of off-track betting on 732
races held within or without the state pursuant to the provisions of this 733
chapter. 734
(b) It is hereby declared that off-track betting on races conducted 735
under the administration or regulatory authority of the [department] 736
commission in the manner and subject to the conditions of this chapter 737
shall be lawful notwithstanding the provisions of any other law, 738
general, special or municipal, including any law prohibiting or 739
restricting lotteries, bookmaking or any other kind of gambling, it being 740
the purpose of this chapter to derive from such betting, as authorized 741
by this chapter, a reasonable revenue for the support of state 742
government and to prevent and curb unlawful bookmaking and illegal 743
betting on races. 744
(c) Until the effective date of transfer of ownership of the off-track 745
betting system, the [commissioner] commission shall adopt rules and 746
regulations, consistent with this chapter, establishing and governing the 747
permitted method or methods of operation of the system of off-track 748
betting. 749
(d) For the purposes of this section, the effective date of transfer of 750
ownership of the off-track betting system was June 30, 1993. 751
Sec. 26. Section 12-571a of the general statutes is repealed and the 752 Raised Bill No. 5190
LCO No. 1555 25 of 103
following is substituted in lieu thereof (Effective January 1, 2021): 753
(a) The [Department of Consumer Protection] commission shall not 754
operate or authorize the operation of more than twenty-four off-track 755
betting branch facilities, except that the [department] commission may 756
operate or authorize the operation of any off-track betting branch 757
facility approved prior to December 31, 1986, by the legislative body of 758
a municipality in accordance with subsection (a) of section 12-572, as 759
amended by this act. Any facility approved prior to December 31, 1986, 760
shall be included within the twenty-four facilities authorized by this 761
subsection. 762
(b) The twenty-four off-track betting branch facilities authorized by 763
subsection (a) of this section may include facilities which have screens 764
for the simulcasting of off-track betting race programs or jai alai games 765
and other amenities including, but not limited to, restaurants and 766
concessions, and, on and after October 1, 2012, shall be located in the 767
town and city of New Haven, the town of Windsor Locks, the town of 768
East Haven, the town and city of Norwalk, the town and city of 769
Hartford, the town and city of New Britain, the town and city of Bristol, 770
the town and city of Torrington, the town and city of Waterbury, the 771
town and city of Milford, the town and city of New London, the town 772
of Manchester, the town of Windham, the town of Putnam, the town 773
and city of Bridgeport and nine additional locations. The location of 774
each such facility and the addition of simulcasting capability to any 775
existing off-track betting branch facility that did not previously have 776
such capability (1) shall be approved by the [commissioner] 777
commission, and (2) shall be subject to the prior approval of the 778
legislative body of the town in which such facility is located or is 779
proposed to be located. The [department] commission shall report 780
annually to the joint standing committee of the General Assembly 781
having cognizance of matters relating to [legalized gambling] public 782
safety and security on the status of the establishment or improvement 783
of the off-track betting branch facility pursuant to this subsection. 784
Sec. 27. Section 12-572 of the general statutes is repealed and the 785 Raised Bill No. 5190
LCO No. 1555 26 of 103
following is substituted in lieu thereof (Effective January 1, 2021): 786
(a) The [commissioner] commission may establish or authorize the 787
establishment of such off-track betting facilities throughout the state for 788
the purpose of receiving moneys wagered on the results of races or jai 789
alai games as [he shall deem] the commission determines will serve the 790
convenience of the public and provide maximum economy and 791
efficiency of operation, provided the establishment of such a facility in 792
any municipality for the purpose of receiving moneys on the results of 793
races or jai alai games shall be subject to the approval of the legislative 794
body of such municipality which shall be given only after a public 795
hearing on the same. Until the effective date of transfer of ownership of 796
the off-track betting system, moneys received at such facilities shall be 797
deposited in a betting fund from which daily payments, in such amount 798
as the [commissioner] commission deems suitable, shall be made. If an 799
operator of an off-track betting facility intends to conduct wagering on 800
dog racing events or jai alai games, such operator (1) shall conduct 801
wagering on dog racing events or jai alai games conducted by any 802
association licensee which offers such racing events or games for off-803
track betting, provided such operator obtains the written consent of 804
such licensee, and (2) may conduct wagering on out-of-state dog racing 805
events or jai alai games when no such association licensee is conducting 806
such racing events or games, provided such operator has complied with 807
the provisions of subdivision (1) of this subsection. No operator of an 808
off-track betting facility shall conduct wagering on any dog racing event 809
or jai alai game if such racing event or game is conducted within forty 810
miles of such facility unless such operator has obtained the written 811
consent of the licensee conducting such racing event or game. 812
(b) The [commissioner] commission may contract with any person or 813
business organization to provide such facilities, components, goods or 814
services as may be necessary for the effective operation of an off-track 815
betting system. Compensation for such facilities, components, goods or 816
services shall be deducted from the moneys retained pursuant to 817
subsections (c) and (d) of this section in such amount as the 818
[commissioner] commission shall determine. 819 Raised Bill No. 5190
LCO No. 1555 27 of 103
(c) The [department] commission or any person or business 820
organization operating an off-track betting system shall distribute all 821
sums deposited in a pari-mutuel pool, to the holders of winning tickets 822
therein, less seventeen per cent of the total deposits of such pool plus 823
the breakage to the dime of the amount so retained, except as provided 824
in subsection (d) of this section. 825
(d) (1) If the multiple forms of wagering known as daily double, 826
exacta and quinella are permitted, the [department] commission or any 827
person or business organization operating the off-track betting system 828
shall distribute all sums deposited in the pari-mutuel pool for any such 829
event to the holders of winning tickets therein, less nineteen per cent of 830
the total deposits in such pool plus the breakage to the dime. 831
(2) If multiple forms of wagering on three or more animals are 832
permitted, the [department] commission or such person or business 833
organization operating an off-track betting system shall retain twenty-834
four and one-half per cent of the total sums deposited in the pool for 835
such event, plus the breakage to the dime. 836
(e) The [department] commission or any person or business 837
organization operating an off-track betting system and conducting 838
wagering on racing events or jai alai games held in this state and 839
licensed under the provisions of this chapter shall distribute all sums 840
deposited in a pari-mutuel pool to the holders of winning tickets 841
therein, less the same percentage of the total deposits of such pool 842
applicable to such racing events or jai alai games plus the breakage to 843
the dime of the amount retained by each licensee conducting the racing 844
events or jai alai games. 845
(f) Any person or business organization which has entered into a 846
contract with the state, acting through the [commissioner] commission 847
under the provisions of subsection (b) of this section, except a contract 848
with an individual for personal services, may, in the event of any 849
disputed claims under such contract, bring an action against the state to 850
the superior court for the judicial district of Hartford for the purpose of 851 Raised Bill No. 5190
LCO No. 1555 28 of 103
having such claims determined, provided notice of the general nature 852
of such claims [shall have] has been given in writing to the [department] 853
commission not later than one year after the termination of such 854
contract. No action shall be brought under this section later than three 855
years from the date of termination of the contract. Such action shall be 856
tried to the court without a jury. Damages recoverable in such action 857
shall not include any amount attributable to anticipated profits but shall 858
be limited to the recovery of actual damages sustained arising out of 859
such contract. All legal defenses except governmental immunity shall 860
be reserved to the state. 861
(g) The [department] commission or any person or business 862
organization operating an off-track betting system may combine wagers 863
placed within such off-track betting system with similar wagering pools 864
at the facility where a racing program is being conducted, regardless of 865
whether such facility is located within or without the state. Such pari-866
mutuel wagers shall be combined in such form and manner as the 867
[commissioner] commission may determine to be in the best interests of 868
the off-track betting system established pursuant to the provisions of 869
section 12-571, as amended by this act. Notwithstanding the provisions 870
of subsection (c) or (d) of this section, the [department] commission or 871
any person or business organization operating an off-track betting 872
system and conducting wagering on racing events held without this 873
state [,] may distribute to the holders of winning tickets who have 874
placed wagers in said combined pools such sums as may be deposited 875
in said combined pari-mutuel pools, less the same percentage of the total 876
deposits of such combined pools as is established at the facility where 877
such racing program is conducted plus the breakage to the dime, as shall 878
be determined by the [commissioner] commission. 879
Sec. 28. Section 12-573 of the general statutes is repealed and the 880
following is substituted in lieu thereof (Effective January 1, 2021): 881
Until the effective date of transfer of ownership of the off-track 882
betting system, and from time to time thereafter the [commissioner] 883
commission shall estimate, and certify to the Comptroller, that portion 884 Raised Bill No. 5190
LCO No. 1555 29 of 103
of the balance in the betting fund which is in excess of the current needs 885
of the [department] commission for the payment of prizes and for the 886
payment of compensation under section 12-572, as amended by this act. 887
Upon receipt of any such certification, the amount so certified shall be 888
transferred from the betting fund to the General Fund. 889
Sec. 29. Section 12-573a of the general statutes is repealed and the 890
following is substituted in lieu thereof (Effective January 1, 2021): 891
The [department] commission may authorize the operation of 892
frontons in the state for exhibition of the Spanish ball game called jai alai 893
or pelota. The operation of all frontons shall be under the supervision of 894
the [department] commission. 895
Sec. 30. Section 12-574 of the general statutes is repealed and the 896
following is substituted in lieu thereof (Effective January 1, 2021): 897
(a) No person or business organization may conduct a meeting at 898
which racing or the exhibition of jai alai is permitted for any stake, purse 899
or reward or operate the off-track betting system unless such person or 900
business organization is licensed as an association licensee by the 901
[commissioner] commission. Any such licensee authorized to conduct a 902
meeting or operate the off-track betting system shall indemnify and save 903
harmless the state of Connecticut against any and all actions, claims, and 904
demands of whatever kind or nature which the state may sustain or 905
incur by reason or in consequence of issuing such license. 906
(b) No person or business organization may operate any concession 907
at any meeting at which racing or the exhibition of jai alai is permitted 908
or any concession which is allied to an off-track betting facility unless 909
such person or business organization is licensed as a concessionaire 910
licensee by the [commissioner] commission. 911
(c) No person or business organization awarded the primary contract 912
by an association licensee to provide facilities, components, goods or 913
services which are necessary for the operation of the activities 914
authorized by the provisions of section 12-572, as amended by this act, 915 Raised Bill No. 5190
LCO No. 1555 30 of 103
may do so unless such person or business organization is licensed as a 916
vendor licensee by the [commissioner] commission. 917
(d) No person or business organization may provide totalizator 918
equipment and services to any association licensee for the operation of 919
a pari-mutuel system unless such person or business organization is 920
licensed as a totalizator licensee by the [commissioner] commission. 921
(e) No business organization, other than a shareholder in a publicly 922
traded corporation, may exercise control in or over an association, a 923
concessionaire, a vendor or a totalizator licensee unless such business 924
organization is licensed as an affiliate licensee by the [commissioner] 925
commission. The [commissioner] commission shall issue affiliate 926
licenses to qualified business organizations. 927
(f) No person may participate in this state in any activity permitted 928
under this chapter as an employee of an association, concessionaire, 929
vendor, totalizator or affiliate licensee unless such person is licensed as 930
an occupational licensee by the [commissioner] commission. Whether 931
located in or out of this state, no officer, director, partner, trustee or 932
owner of a business organization which obtains a license in accordance 933
with this section may continue in such capacity unless such officer, 934
director, partner, trustee or owner is licensed as an occupational licensee 935
by the [commissioner] commission. An occupational license shall also 936
be obtained by any shareholder, key executive, agent or other person 937
connected with any association, concessionaire, vendor, totalizator or 938
affiliate licensee, who in the judgment of the [commissioner] 939
commission will exercise control in or over any such licensee. Such 940
person shall apply for a license not later than thirty days after the 941
[commissioner] commission requests [him] such person, in writing, to 942
do so. The [commissioner] commission shall complete [his] an 943
investigation of an applicant for an occupational license and notify such 944
applicant of [his] the commission's decision to approve or deny the 945
application within one year after its receipt, or, if the [commissioner] 946
commission determines good cause exists for extending such period of 947
investigation and gives the applicant a reasonable opportunity for a 948 Raised Bill No. 5190
LCO No. 1555 31 of 103
hearing, by the date prescribed by the [commissioner] commission. 949
(g) In determining whether to grant a license, the [commissioner] 950
commission may require the applicant to submit information as to: 951
Financial standing and credit; moral character; criminal record, if any; 952
previous employment; corporate, partnership or association affiliations; 953
ownership of personal assets; and such other information as it [or he] 954
deems pertinent to the issuance of such license. 955
(h) The [commissioner] commission may reject for good cause an 956
application for a license. Any license granted under the provisions of 957
this chapter is a revocable privilege and no licensee shall be deemed to 958
have acquired any vested rights based on the issuance of such license. 959
The [commissioner, the deputy commissioner, the executive assistant] 960
commission members, executive director, any unit head or any assistant 961
unit head authorized by the [commissioner] commission may suspend 962
or revoke for good cause any license issued by the [commissioner] 963
commission after a hearing held in accordance with chapter 54. If any 964
affiliate licensee fails to comply with the provisions of this chapter, the 965
[commissioner] commission, after a hearing held in accordance with 966
chapter 54, may revoke or suspend the license of any one or more of the 967
following related licensees: Concessionaire, vendor or totalizator, and 968
may fine any one or more of such licensees in an amount not to exceed 969
two thousand five hundred dollars. In addition, if any affiliate licensee 970
fails to comply with the provisions of this chapter, the [commissioner] 971
commission, after a hearing held in accordance with chapter 54, may 972
revoke or suspend the license of the related association licensee, [and 973
may] fine the related association licensee in an amount not to exceed 974
seventy-five thousand dollars, or both. If any license is suspended or 975
revoked, the [commissioner] commission shall state the reasons for such 976
suspension or revocation and cause an entry of such reasons to be made 977
on the record books of the [department] commission. Any licensee 978
whose license is suspended or revoked, or any applicant aggrieved by 979
the action of the [commissioner] commission concerning an application 980
for a license, may appeal pursuant to section 4-183. 981 Raised Bill No. 5190
LCO No. 1555 32 of 103
(i) The [commissioner] commission shall adopt regulations 982
governing the operation of the off-track betting system and facilities, 983
tracks, stables, kennels and frontons, including the regulation of betting 984
in connection therewith, to insure the integrity and security of the 985
conduct of meetings and the broadcast of racing events held pursuant 986
to this chapter. Such regulations shall include provision for the 987
imposition of fines and suspension of licenses for violations thereof. 988
Prior to the adoption of any regulations concerning the treatment of 989
animals at any dog race track, the [commissioner] commission shall 990
notify the National Greyhound Association of the contents of such 991
regulations and of its right to request a hearing pursuant to chapter 54. 992
The [commissioner] commission shall have the authority to impose a 993
fine of up to (1) seventy-five thousand dollars for any violation of such 994
regulations by a licensee authorized to conduct a meeting or operate the 995
off-track betting system under this section; (2) five thousand dollars for 996
any violation of such regulations by a business organization licensed as 997
an affiliate licensee authorized to exercise control over an association; 998
and (3) two thousand five hundred dollars for any such violation by any 999
other licensee licensed by the [commissioner] commission. The stewards 1000
or judges of a meeting acting in accordance with such regulations shall 1001
have the authority to impose a fine of up to five hundred dollars for any 1002
such violation by such licensee, and the players' manager of a jai alai 1003
exhibition acting in accordance with such regulations shall have the 1004
authority to recommend to the judges that a fine should be considered 1005
for a player who may have violated such regulations. The 1006
[commissioner] commission may delegate to the stewards and judges of 1007
a meeting the power to suspend the license of any occupational licensee 1008
employed in this state by an association licensee for a period not to 1009
exceed sixty days for any violation of such regulations. If any license is 1010
suspended, such stewards and judges of a meeting shall state the 1011
reasons therefor in writing. All fines imposed pursuant to this section 1012
shall be paid over to the General Fund upon receipt by the [department] 1013
commission. Any person or business organization fined or suspended 1014
pursuant to this section shall have a right of appeal to the 1015
[commissioner] commission for a hearing that shall be conducted 1016 Raised Bill No. 5190
LCO No. 1555 33 of 103
pursuant to chapter 54. Any person or business organization aggrieved 1017
by a decision of the [commissioner] commission following such a 1018
hearing shall have a right of appeal pursuant to section 4-183. 1019
(j) The [commissioner] commission shall have the power to require 1020
that the books and records of any licensee, other than an occupational 1021
licensee, shall be maintained in any manner [which he may deem] that 1022
the commission deems best, and that any financial or other statements 1023
based on such books and records shall be prepared in accordance with 1024
generally accepted accounting principles in such form as [he] the 1025
commission shall prescribe. The [commissioner or his] commission or a 1026
commission designee shall also be authorized to visit, to investigate and 1027
to place expert accountants and such other persons as [he] the 1028
commission may deem necessary, in the offices, tracks, frontons, off-1029
track betting facilities or places of business of any such licensee, for the 1030
purpose of satisfying [himself or herself] the commission that the 1031
[department's] commission's regulations are strictly complied with. 1032
(k) The [commissioner] commission may at any time for good cause 1033
require the removal of any employee or official employed by any 1034
licensee hereunder. 1035
(l) The [commissioner] commission may, on [his or her own] the 1036
commission's motion or upon application, exempt any person or 1037
business organization from the licensing requirements of this chapter or 1038
some or all of the disclosure requirements of chapter 226b, provided the 1039
applicant does not exercise control in or over an integral part of any 1040
activity which is authorized under this chapter. The burden of proving 1041
that an exemption should be granted rests solely with the applicant. The 1042
[commissioner] commission may limit or condition the terms of an 1043
exemption and such determination shall be final. 1044
(m) Any person aiding or abetting in the operation of an off-track 1045
betting system or the conduct of any meeting within this state at which 1046
racing or the exhibition of the game of jai alai shall be permitted for any 1047
stake, purse or reward, except in accordance with a license duly issued 1048 Raised Bill No. 5190
LCO No. 1555 34 of 103
and unsuspended or unrevoked by the [commissioner] commission, 1049
shall be guilty of a class A misdemeanor. 1050
(n) The majority of the membership of the board of directors of any 1051
corporation licensed to operate the off-track betting system or to hold or 1052
conduct any meeting within the state of Connecticut at which racing or 1053
the exhibition of the game of jai alai shall be permitted for any stake, 1054
purse or reward, shall be residents of the state of Connecticut. 1055
(o) Any license granted under this section, other than an association 1056
license authorizing the licensee to conduct a meeting or operate the off-1057
track betting system, as described in subsection (a) of this section, or an 1058
affiliate license authorizing the licensee to exercise control in or over an 1059
association licensee, as described in subsection (e) of this section, shall 1060
be effective for not more than one year from the date of issuance. Initial 1061
application for and renewal of any license shall be in such form and 1062
manner as the [commissioner] commission shall prescribe by regulation. 1063
(p) Any person or business organization issued a license to conduct 1064
dog racing shall establish a pet adoption program for the proper 1065
housing and care of retired greyhounds and shall provide financial 1066
support for such program and any facility operated to implement such 1067
program. 1068
(q) Any person or business organization issued a license to conduct 1069
dog racing pursuant to subsection (c) of section 12-574c, as amended by 1070
this act, shall employ persons who, at the time of employment, are 1071
recipients of assistance under the state-administered general assistance 1072
program, state supplement program, medical assistance program, 1073
temporary family assistance program or supplemental nutrition 1074
assistance program to fill not less than twenty per cent of the positions 1075
created by the conversion of a jai alai fronton to a dog race track if such 1076
persons have been trained for such employment by public or publicly 1077
funded agencies in coordination with such licensee. 1078
(r) Any person or business organization issued a license to conduct 1079
dog racing pursuant to subsection (c) of section 12-574c, as amended by 1080 Raised Bill No. 5190
LCO No. 1555 35 of 103
this act, shall provide an on-site child care center, as described in section 1081
19a-77, for use by employees of the dog race track. Such licensee shall 1082
employ persons who, at the time of employment, are recipients of aid 1083
under chapter 302 or 308 to fill not less than fifty per cent of the positions 1084
at such child care center if such persons have been trained for such 1085
employment by public or publicly funded agencies in coordination with 1086
such licensee. 1087
(s) Notwithstanding any other provisions of this chapter to the 1088
contrary, any person or business organization issued a license to 1089
conduct dog racing may operate on a year-round basis and may conduct 1090
such number of performances as it may elect, provided the total number 1091
of such performances does not exceed five hundred eighty 1092
performances in any calendar year. 1093
Sec. 31. Section 12-574a of the general statutes is repealed and the 1094
following is substituted in lieu thereof (Effective January 1, 2021): 1095
(a) Whenever a person or business organization files an application 1096
with the [department] commission for a license to conduct an activity 1097
regulated by section 12-574, as amended by this act, exclusive of renewal 1098
license applications, the [department] commission shall forward within 1099
five days to the town clerk of the town within which such activity is 1100
proposed to be carried on a statement specifying the prospective 1101
applicant, the proposed activity, the site on which such activity is 1102
proposed to be conducted and the fact that an application has been filed 1103
with the [department] commission. Within ten days after such statement 1104
has been filed, such town clerk shall cause notice of such filing to be 1105
published in a newspaper having a circulation in the town [wherein] in 1106
which the activity is to be conducted. The question of the approval of 1107
the conducting of such activity shall be submitted to the electors of such 1108
town at a special election called for the purpose to be held not less than 1109
thirty nor more than sixty days after such publication, in conformity 1110
with the provisions of section 9-369, or at a regular town election if such 1111
election is to be held more than sixty but not more than one hundred 1112
twenty days after such publication, such question shall be so submitted 1113 Raised Bill No. 5190
LCO No. 1555 36 of 103
and the vote shall be taken in the manner prescribed by said section 9-1114
369. The town clerk shall notify the [department] commission of the 1115
results of such election. The disapproval of the conducting of such 1116
activity by a majority of those voting on the question shall be a bar to 1117
the granting of a license to such applicant to conduct such activity at 1118
such location. All costs incurred by a municipality in connection with 1119
such referendum shall be paid to [said] the municipality by the person 1120
or business organization filing such application for such license. The 1121
provisions of this subsection shall not apply to any licensee authorized 1122
to operate the off-track betting system with respect to any off-track 1123
betting facility approved prior to June 25, 1993. 1124
(b) No licensee may conduct any racing or jai alai event on any 1125
Sunday without the prior approval of the legislative body of the town 1126
in which the event is scheduled to take place. 1127
(c) No licensee authorized to operate the off-track betting system may 1128
conduct any off-track pari-mutuel wagering on any racing program on 1129
any Sunday without the prior approval of the legislative body of the 1130
town in which such off-track betting facility is located. 1131
(d) Notwithstanding the provisions of subsection (a) of this section, 1132
the prior approval of the legislative body only of the town shall be 1133
required [in the event the department] if the commission issues a license 1134
pursuant to subsection (c) of section 12-574c, as amended by this act. 1135
Sec. 32. Section 12-574c of the general statutes is repealed and the 1136
following is substituted in lieu thereof (Effective January 1, 2021): 1137
(a) The [Department of Consumer Protection] commission shall not 1138
issue a license authorizing any person, firm, corporation or association 1139
to conduct horse racing, dog racing or jai alai events. 1140
(b) Notwithstanding the provisions of subsection (a) of this section, 1141
the [department] commission may renew any license issued prior to 1142
May 23, 1979, or issue such a license to a currently operating facility. 1143 Raised Bill No. 5190
LCO No. 1555 37 of 103
(c) Notwithstanding the provisions of subsection (a) of this section, 1144
the [department] commission may, on or after July 5, 1991, issue one 1145
additional license authorizing a person or business organization to 1146
conduct dog racing to a person or business organization holding a 1147
license to conduct jai alai events or to the successor of such business 1148
organization upon the surrender of the license to conduct jai alai events. 1149
(d) No licensee [shall] may move any horse race track, dog race track 1150
or jai alai fronton to any municipality other than the municipality in 1151
which such facility was located on July 5, 1991. 1152
Sec. 33. Section 12-574d of the general statutes is repealed and the 1153
following is substituted in lieu thereof (Effective January 1, 2021): 1154
(a) The [Commissioner of Consumer Protection] commission may 1155
order the random collection and testing of urine specimens from racing 1156
dogs following a race or at any time during a meet conducted by any 1157
licensee authorized to conduct dog racing events under the pari-mutuel 1158
system. If the [commissioner] commission determines from such 1159
random testing that the integrity of dog racing events may be 1160
compromised, the [commissioner] commission may order the conduct 1161
of more frequent testing at one or more dog race tracks for such period 1162
of time as the [commissioner] commission deems necessary or 1163
advisable. The [commissioner] commission shall determine the 1164
laboratory responsible for the conduct of such testing and the amount 1165
of the fee for such test which shall be based upon the actual cost of such 1166
test and which shall be payable on a basis determined by the 1167
[commissioner] commission. Each such licensee shall pay such fee 1168
directly to such laboratory with respect to racing dogs at its dog race 1169
track. 1170
(b) The [commissioner] commission shall adopt regulations, in 1171
accordance with the provisions of chapter 54, to implement the 1172
provisions of subsection (a) of this section. The [commissioner] 1173
commission may implement policies and procedures necessary to carry 1174
out the provisions of subsection (a) of this section while in the process 1175 Raised Bill No. 5190
LCO No. 1555 38 of 103
of adopting regulations, provided the [commissioner] commission 1176
prints notice of intent to adopt the regulations in the Connecticut Law 1177
Journal within twenty days after implementation. Such policies and 1178
procedures shall be valid until the time final regulations are effective. 1179
Sec. 34. Section 12-575 of the general statutes is repealed and the 1180
following is substituted in lieu thereof (Effective January 1, 2021): 1181
(a) The [department] commission may permit at racing events, 1182
exhibitions of the game of jai alai licensed under the provisions of this 1183
chapter or at off-track betting facilities, betting under a pari-mutuel 1184
system, so called, including standard pari-mutuel, daily double, exacta, 1185
quinella, trifecta, superfecta, twin trifecta, pick four and pick six betting, 1186
and such other forms of multiple betting as the [department] 1187
commission may determine. 1188
(b) The pari-mutuel system, so called, shall not be used or permitted 1189
at any location other than the race track at which the racing event is 1190
licensed to be conducted or the fronton at which the game of jai alai is 1191
licensed to be played or at an off-track betting facility operated by the 1192
[department] commission or by a licensee authorized to operate the off-1193
track betting system. A computerized electronic totalizator system, 1194
approved by the [commissioner] commission, shall be used to conduct 1195
pari-mutuel wagering at each racing or jai alai event. A computerized 1196
electronic totalizator system approved by the [commissioner] 1197
commission and, where authorized by subsection (b) of section 12-571a, 1198
as amended by this act, and approved by the [commissioner] 1199
commission, a simulcast system shall be used to conduct pari-mutuel 1200
wagering and simulcasting of off-track betting race programs at off-1201
track betting facilities. The [commissioner] commission may require any 1202
licensee to submit information concerning the daily operation of such 1203
totalizator or simulcast system which [he] the commission deems 1204
necessary for the effective administration of this chapter, including 1205
records of all wagering transactions, in such form and manner as [he] 1206
the commission shall prescribe. 1207 Raised Bill No. 5190
LCO No. 1555 39 of 103
(c) (1) Except as provided in subdivision (2) of this subsection, each 1208
licensee conducting horse racing events under the pari-mutuel system 1209
shall distribute all sums deposited in any pari-mutuel program to the 1210
holders of winning tickets therein, less seventeen per cent of the total 1211
deposits plus the breakage to the dime of the amount so retained; each 1212
licensee conducting jai alai events shall distribute all sums deposited in 1213
any pari-mutuel program to the holders of winning tickets therein, less 1214
a maximum of eighteen per cent of the deposits in the win, place or show 1215
pools and less a maximum of twenty-three per cent of the deposits in all 1216
other pools plus the breakage to the dime of the amount so retained; 1217
each licensee conducting dog racing events shall distribute all sums 1218
deposited in any pari-mutuel program to the holders of winning tickets 1219
therein, less a maximum of nineteen per cent of the deposits in the win, 1220
place or show pools and less a maximum of twenty-seven per cent of 1221
the deposits in all other pools plus the breakage to the dime of the 1222
amount so retained, or, shall distribute all sums deposited in all of its 1223
pari-mutuel programs conducted on any day to the holders of winning 1224
tickets therein less twenty per cent of the total deposits plus the 1225
breakage to the dime of the amount so retained, provided on and after 1226
July 1, 1992, each licensee conducting dog racing events on July 5, 1991, 1227
shall allocate four per cent of all sums deposited in any pari-mutuel 1228
program to purses, one-quarter of one per cent to capital expenditures 1229
for alterations, additions, replacement changes, improvements or major 1230
repairs to or upon the property owned or leased by any such licensee 1231
and used for such racing events, and one-quarter of one per cent to 1232
promotional marketing, to reduce the costs of admission, programs, 1233
parking and concessions and to offer entertainment and giveaways. 1234
Each licensee conducting dog racing events shall, on an annual basis, 1235
submit to the [department] commission certified financial statements 1236
verifying the use of such allocations for purses, capital improvements 1237
and promotional marketing. 1238
(2) Each licensee conducting racing or jai alai events may carry over 1239
all or a portion of the sums deposited in any pari-mutuel program, less 1240
the amount retained as herein provided, in the twin trifecta, pick four or 1241 Raised Bill No. 5190
LCO No. 1555 40 of 103
pick six pari-mutuel pool to another pool, including a pool in a 1242
succeeding performance. 1243
(d) Each licensee conducting horse racing events under the pari-1244
mutuel system shall pay to the state, and there is hereby imposed: (1) A 1245
tax on the total money wagered in the pari-mutuel pool on each and 1246
every day the licensee conducts racing events, pursuant to the following 1247
schedule: 1248
T1 Total Wagered Tax
T2 0 to $100,001 3.25% on the entire pool
T3 $100,001 to $200,001 3.75% on the entire pool
T4 $200,001 to $300,001 4.25% on the entire pool
T5 $300,001 to $400,001 4.75% on the entire pool
T6 $400,001 to $500,001 5.25% on the entire pool
T7 $500,001 to $600,001 5.75% on the entire pool
T8 $600,001 to $700,001 6.25% on the entire pool
T9 $700,001 to $800,001 6.75% on the entire pool
T10 $800,001 to $900,001 7.25% on the entire pool
T11 $900,001 to $1,000,001 7.75% on the entire pool
T12 $1,000,001 and over 8.75% on the entire pool
and (2) a tax equal to one-half of the breakage to the dime resulting from 1249
such wagering. The [commissioner] commission shall by regulation 1250
adopted in accordance with the provisions of chapter 54 designate the 1251
percentage of the difference between the seventeen per cent specified in 1252
subsection (c) of this section and the tax specified in this subsection, 1253
which shall be allocated as prize or purse money for the horses racing at 1254
each facility. 1255
(e) Each licensee conducting dog racing events under the pari-mutuel 1256
system shall pay to the state, and there is hereby imposed: (1) (A) A tax 1257
at the rate of two per cent on the total money wagered in the pari-mutuel 1258
pool on each and every day the licensee conducts racing events or (B) 1259
on or after July 1, 1993, in the case of any licensee licensed prior to July 1260
5, 1991, (i) a tax at the rate of two per cent on any amount up to and 1261 Raised Bill No. 5190
LCO No. 1555 41 of 103
including fifty million dollars of the total money wagered in the pari-1262
mutuel pool in any state fiscal year during which a licensee licensed 1263
prior to July 5, 1991, conducts racing events, (ii) a tax at the rate of three 1264
per cent on any amount in excess of fifty million dollars and up to and 1265
including eighty million dollars of the total money wagered in the pari-1266
mutuel pool in any state fiscal year during which a licensee licensed 1267
prior to July 5, 1991, conducts racing events, and (iii) a tax at the rate of 1268
four per cent on any amount in excess of eighty million dollars of the 1269
total money wagered in the pari-mutuel pool in any state fiscal year 1270
during which a licensee licensed prior to July 5, 1991, conducts racing 1271
events, and (2) a tax equal to one-half of the breakage to the dime 1272
resulting from such wagering. 1273
(f) Each licensee operating a fronton at which the game of jai alai is 1274
licensed to be played under the pari-mutuel system shall pay to the state 1275
and there is hereby imposed: (1) (A) A tax at the rate of two per cent on 1276
any amount up to and including fifty million dollars of the total money 1277
wagered on such games, (B) a tax at the rate of three per cent of any 1278
amount in excess of fifty million dollars and up to and including eighty 1279
million dollars of the total money wagered on such games, and (C) a tax 1280
at the rate of four per cent on any amount in excess of eighty million 1281
dollars of the total money wagered on such games, and (2) a tax equal 1282
to one-half of the breakage to the dime resulting from such wagering. 1283
(g) The licensee authorized to operate the system of off-track betting 1284
under the pari-mutuel system shall pay to the state and there is hereby 1285
imposed: (1) A tax at the rate of three and one-half per cent on the total 1286
money wagered in the pari-mutuel pool on each and every day the 1287
licensee broadcasts racing events, and (2) a tax equal to one-half of the 1288
breakage to the dime resulting from such wagering. 1289
(h) The [commissioner] commission shall assess and collect the taxes 1290
imposed by this chapter under such regulations as [he] the commission 1291
may prescribe, in accordance with the provisions of chapter 54. All taxes 1292
hereby imposed shall be due and payable by the close of the next 1293
banking day after each day's racing or jai alai exhibition. If any such tax 1294 Raised Bill No. 5190
LCO No. 1555 42 of 103
is not paid when due, the [commissioner] commission shall impose a 1295
delinquency assessment upon the licensee in the amount of ten per cent 1296
of such tax or ten dollars, whichever amount is greater, plus interest at 1297
the rate of one and one-half per cent of the unpaid principal of such tax 1298
for each month or fraction of a month from the date such tax is due to 1299
the date of payment. Subject to the provisions of section 12-3a, as 1300
amended by this act, the [commissioner] commission may waive all or 1301
part of the penalties provided under this subsection when it is proven 1302
to [his] the commission's satisfaction that the failure to pay such tax 1303
within the time required was due to reasonable cause and was not 1304
intentional or due to neglect. Failure to pay any such delinquent tax 1305
upon demand may be considered by the [commissioner] commission as 1306
cause for revocation of license. 1307
(i) The [commissioner] commission shall devise a system of 1308
accounting and shall supervise betting at such track, fronton or off-track 1309
betting facility in such manner that the rights of the state are protected 1310
and shall collect all fees and licenses under such regulations as [he] the 1311
commission shall prescribe, in accordance with the provisions of 1312
chapter 54. 1313
(j) The amount of unclaimed moneys, as determined by the 1314
[commissioner] commission, held by any licensee other than by 1315
licensees authorized to operate a jai alai fronton, dog race track or the 1316
off-track betting system on account of outstanding and uncashed 1317
winning tickets, shall be due and payable to the [commissioner] 1318
commission, for deposit in the General Fund of the state, at the 1319
expiration of one year after the close of the meeting during which such 1320
tickets were issued. If any such unclaimed moneys are not paid when 1321
due, the [commissioner] commission shall impose a delinquency 1322
assessment upon the licensee in the amount of ten per cent of such 1323
moneys or ten dollars, whichever amount is greater, plus interest at the 1324
rate of one and one-half per cent of the unpaid principal of such moneys 1325
for each month or fraction of a month from the date such moneys are 1326
due to the date of payment. Subject to the provisions of section 12-3a, as 1327
amended by this act, the [commissioner] commission may waive all or 1328 Raised Bill No. 5190
LCO No. 1555 43 of 103
part of the penalties provided under this subsection when it is proven 1329
to [his] the commission's satisfaction that the failure to pay such moneys 1330
to the state within the time required was due to reasonable cause and 1331
was not intentional or due to neglect. 1332
(k) The [commissioner] commission may authorize [deputies] 1333
commission employees and the Commissioner of Revenue Services or 1334
his or her agents are authorized to enter upon the premises at any racing 1335
event, jai alai exhibition or off-track betting race event for the purpose 1336
of inspecting books and records, supervising and examining cashiers, 1337
ticket sellers, pool sellers and other persons handling money at said 1338
event and such other supervision as may be necessary for the 1339
maintenance of order at such event. 1340
(l) (1) The [commissioner] commission shall pay each municipality in 1341
which a horse race track is located, one-quarter of one per cent of the 1342
total money wagered on horse racing events at such race track, except 1343
that the [commissioner] commission shall pay each such municipality 1344
having a population in excess of fifty thousand one per cent of the total 1345
money wagered at such horse racing events in such municipality. The 1346
[commissioner] commission shall pay each municipality in which a jai 1347
alai fronton or dog race track is located one-half of one per cent of the 1348
total money wagered on jai alai games or dog racing events at such 1349
fronton or dog race track, except that the [commissioner] commission 1350
shall pay each such municipality having a population in excess of fifty 1351
thousand one per cent of the total money wagered on jai alai games or 1352
dog racing events at such fronton or dog race track located in such 1353
municipality. The [commissioner] commission shall pay each 1354
municipality in which an off-track betting facility is located one and 1355
three-fifths per cent of the total money wagered in such facility less 1356
amounts paid as refunds or for cancellations. The [commissioner] 1357
commission shall pay to both the city of New Haven and the town of 1358
Windsor Locks an additional one-half of one per cent of the total money 1359
wagered less any amount paid as a refund or a cancellation in any 1360
facility equipped with screens for simulcasting after October 1, 1997, 1361
located within a fifteen-mile radius of facilities in New Haven and 1362 Raised Bill No. 5190
LCO No. 1555 44 of 103
Windsor Locks. Payment shall be made not less than four times a year 1363
and not more than twelve times a year as determined by the 1364
[commissioner] commission, and shall be made from the tax imposed 1365
pursuant to subsection (d) of this section for horse racing, subsection (e) 1366
of this section for dog racing, subsection (f) of this section for jai alai 1367
games and subsection (g) of this section for off-track betting. 1368
(2) If, for any calendar year after the surrender of a license to conduct 1369
jai alai events by any person or business organization pursuant to 1370
subsection (c) of section 12-574c, as amended by this act, and prior to the 1371
opening of any dog race track by such person or business organization, 1372
any other person or business organization licensed to conduct jai alai 1373
events is authorized to conduct a number of performances greater than 1374
the number authorized for such licensee in the previous calendar year, 1375
the [commissioner] commission shall pay the municipality in which the 1376
jai alai fronton for which such license was surrendered was located, 1377
rather than the municipality in which the jai alai fronton conducting the 1378
increased performances is located, one-half of one per cent of the total 1379
money wagered on jai alai games for such increased performances at the 1380
fronton which conducted the additional performances, except that the 1381
[commissioner] commission shall pay each such municipality having a 1382
population in excess of fifty thousand one per cent of the total money 1383
wagered on jai alai games for such increased performances at such 1384
fronton. 1385
(3) During any state fiscal year ending on or after June 30, 1993, the 1386
[commissioner] commission shall pay each municipality in which a dog 1387
race track was operating prior to July 5, 1991, one per cent of the total 1388
money wagered on dog racing events at such dog race track. 1389
(4) During the state fiscal year ending June 30, 2001, each 1390
municipality in which a dog race track was operating prior to July 5, 1391
1991, shall pay the Northeast Connecticut Economic Alliance, Inc. two-1392
tenths of one per cent of the total money wagered on dog racing events 1393
at any dog race track operating prior to July 5, 1991. 1394 Raised Bill No. 5190
LCO No. 1555 45 of 103
(5) In the event a licensee incurs a loss from the operation of a pari-1395
mutuel facility, as determined by the [commissioner] commission, the 1396
legislative body of the city or town in which such facility is located may 1397
direct the [commissioner] commission to credit or rebate all or a part of 1398
the revenue otherwise due to the municipality back to the facility. In no 1399
[case] event shall such credit and such reimbursement exceed the 1400
amount of the licensee's loss, and in no fiscal year shall these provisions 1401
affect the total fees paid to the state by the authorized operator of the 1402
off-track betting system on its off-track betting activities. 1403
Sec. 35. Section 12-575c of the general statutes is repealed and the 1404
following is substituted in lieu thereof (Effective January 1, 2021): 1405
(a) The [commissioner] commission may require all pari-mutuel 1406
betting conducted at any facility conducting betting under a pari-1407
mutuel system within the state which is based on the results of any event 1408
which occurs at any place other than the facility conducting such 1409
betting, whether such place is within or without the state, to be 1410
combined into a single, state-wide pool for each such event, or for any 1411
of them, as the [commissioner] commission may determine. 1412
(b) The [commissioner] commission may permit all pari-mutuel 1413
betting conducted at any facility conducting betting under a pari-1414
mutuel system within the state which is based on the results of any event 1415
which occurs at such facility, to be combined with the betting on such 1416
event at another facility where pari-mutuel betting is conducted, 1417
whether such facility is within or without the state, as a single pool for 1418
each event. 1419
Sec. 36. Section 12-576 of the general statutes is repealed and the 1420
following is substituted in lieu thereof (Effective January 1, 2021): 1421
(a) Any person who knowingly permits any minor to wager in any 1422
gambling activity authorized under this chapter and any minor who 1423
places a wager in any gambling activity authorized under this chapter 1424
shall be guilty of a class A misdemeanor. 1425 Raised Bill No. 5190
LCO No. 1555 46 of 103
(b) Any person who knowingly permits a minor to be present in any 1426
room, office, building or establishment when off-track betting 1427
authorized under this chapter takes place, or at any racetrack or fronton 1428
when any meeting authorized under this chapter takes place, shall be 1429
fined not more than twenty-five dollars. No minor shall be present in 1430
any room, office, building or establishment when off-track betting 1431
authorized under this chapter takes place, or at any racetrack or fronton 1432
when any meeting authorized under this chapter takes place. Any 1433
minor sixteen years of age or over present in any room, office, building 1434
or establishment when off-track betting authorized under this chapter 1435
takes place, or at any racetrack or fronton when any meeting authorized 1436
under this chapter takes place, shall be fined not more than twenty-five 1437
dollars. Any licensee authorized to conduct a meeting for the purpose 1438
of jai alai or racing shall be fined not more than fifty dollars if any minor 1439
is found at such facility in violation of this subsection. 1440
(c) Notwithstanding any provision of subsection (a) or (b) of this 1441
section, the [commissioner] commission may issue a license to a minor 1442
sixteen years of age or older, under the provisions of section 12-578, as 1443
amended by this act, and the regulations adopted thereunder, provided 1444
written permission from a parent or legal guardian of such minor is filed 1445
with the [department] commission. 1446
(d) The [commissioner] commission shall not pay any claim for 1447
winnings when such claim is made by, or on behalf of, a minor who has 1448
wagered in any gambling activity authorized under this chapter. 1449
Nothing in this subsection shall prohibit an adult from making a wager 1450
on behalf of a minor, provided the money for such wager is not 1451
provided by the minor from funds under such minor's control. 1452
(e) Nothing in this section shall be construed to prohibit any minor 1453
from entering onto a parking area at any building or establishment 1454
described in subsection (b) of this section for the purpose of attending 1455
an event at which gambling activities do not occur. 1456
Sec. 37. Section 12-577 of the general statutes is repealed and the 1457 Raised Bill No. 5190
LCO No. 1555 47 of 103
following is substituted in lieu thereof (Effective January 1, 2021): 1458
The [commissioner] commission shall annually cause to be made by 1459
some competent person or persons [in] within the [department] 1460
commission a thorough audit of the books and records of each 1461
association licensee under this chapter and each casino gaming facility 1462
and the [commissioner] commission may, from time to time, cause to be 1463
made by some competent person [in] within the [department] 1464
commission a thorough audit of the books and records of any other 1465
person or business organization licensed under this chapter. All such 1466
audit records shall be kept on file in the [commissioner's] commission's 1467
office at all times. Each licensee and casino gaming facility shall permit 1468
access to its books and records for the purpose of having such audit 1469
made, and shall produce, upon written order of the [commissioner] 1470
commission, any documents and information required for such 1471
purpose. 1472
Sec. 38. Section 12-578 of the general statutes is repealed and the 1473
following is substituted in lieu thereof (Effective January 1, 2021): 1474
(a) The [commissioner] commission shall adopt regulations, in 1475
accordance with the provisions of chapter 54, governing registration 1476
and the issuance and annual renewal of licenses and payment of annual 1477
nonrefundable application fees for the same in accordance with the 1478
following schedule: 1479
(1) Registration: (A) Stable name, one hundred dollars; (B) 1480
partnership name, one hundred dollars; (C) colors, twenty dollars; (D) 1481
kennel name, one hundred dollars. 1482
(2) Licenses: (A) Owner, one hundred dollars; (B) trainer, one 1483
hundred dollars; (C) assistant trainer, one hundred dollars; (D) jockey, 1484
forty dollars; (E) jockey agent, for each jockey, one hundred dollars; (F) 1485
stable employees, including exercise boy, groom, stable foreman, hot 1486
walker, outrider, twenty dollars; (G) veterinarian, one hundred dollars; 1487
(H) jockey apprentice, forty dollars; (I) driver, one hundred dollars; (J) 1488
valet, twenty dollars; (K) blacksmith, twenty dollars; (L) plater, twenty 1489 Raised Bill No. 5190
LCO No. 1555 48 of 103
dollars; (M) concessionaire, for each concession, two hundred fifty 1490
dollars; (N) concessionaire affiliate, for each concession of the 1491
concessionaire, two hundred fifty dollars; (O) concession employees, 1492
twenty dollars; (P) jai alai players, one hundred dollars; (Q) officials and 1493
supervisors, one hundred dollars; (R) pari-mutuel employees, forty 1494
dollars; (S) other personnel engaged in activities regulated under this 1495
chapter, twenty dollars; (T) vendor, for each contract, two hundred fifty 1496
dollars; (U) totalizator, for each contract, two hundred fifty dollars; (V) 1497
vendor and totalizator affiliates, for each contract of the vendor or 1498
totalizator, two hundred fifty dollars; (W) gaming employee, forty 1499
dollars; (X) nongaming vendor, two hundred fifty dollars; (Y) gaming 1500
services, five hundred dollars; and (Z) gaming affiliate, two hundred 1501
fifty dollars. For the purposes of this subdivision, "concessionaire 1502
affiliate" means a business organization, other than a shareholder in a 1503
publicly traded corporation, that may exercise control in or over a 1504
concessionaire; and "concessionaire" means any individual or business 1505
organization granted the right to operate an activity at a dog race track 1506
or off-track betting facility for the purpose of making a profit that 1507
receives or, in the exercise of reasonable business judgment, can be 1508
expected to receive more than twenty-five thousand dollars or twenty-1509
five per cent of its gross annual receipts from such activity at such track 1510
or facility. 1511
(b) The [commissioner] commission shall require each applicant for a 1512
license under subdivision (2) of subsection (a) of this section to submit 1513
to state and national criminal history records checks before such license 1514
is issued. The criminal history records checks required pursuant to this 1515
subsection shall be conducted in accordance with section 29-17a. 1516
Sec. 39. Section 12-578a of the general statutes is repealed and the 1517
following is substituted in lieu thereof (Effective January 1, 2021): 1518
(a) Not later than twelve months after the date any authorization of a 1519
casino gaming facility by any provision of the general statutes or a 1520
public or special act is effective, the [commissioner] commission shall 1521
adopt regulations, in accordance with the provisions of chapter 54, for 1522 Raised Bill No. 5190
LCO No. 1555 49 of 103
the administration of casino gaming facilities. Such regulations shall 1523
include provisions to protect the public interest in the integrity of 1524
gaming operations and reduce the dangers of unsuitable, unfair or 1525
illegal practices, methods and activities in the conduct of gaming. Such 1526
regulations shall include, but need not be limited to: 1527
(1) Minimum accounting standards for a casino gaming facility; 1528
(2) Minimum security procedures including the video monitoring of 1529
casino gaming facilities; 1530
(3) Approved hours of operation for gaming and nongaming 1531
activities at casino gaming facilities; 1532
(4) Procedures governing the manufacture, sale, lease and 1533
distribution of gaming devices and equipment for use in casino gaming 1534
facilities; 1535
(5) Procedures for the recovery of winnings by patrons of casino 1536
gaming facilities; 1537
(6) Procedures governing how gross gaming revenue is calculated 1538
and reported by a casino gaming facility; 1539
(7) Requirements for regular auditing of the financial statements of a 1540
casino gaming facility; 1541
(8) Procedures to be followed by any casino gaming facility for cash 1542
transactions; 1543
(9) Procedures regarding the maintenance of lists of persons banned 1544
from any casino gaming facility and security measures to enforce such 1545
bans; 1546
(10) Standards for the provision of complimentary goods and services 1547
to casino gaming facility patrons; 1548
(11) Minimum standards of training for persons employed in a casino 1549
gaming facility; 1550 Raised Bill No. 5190
LCO No. 1555 50 of 103
(12) Procedures governing the submission of standards of operation 1551
and management of gaming operations by casino gaming facilities to 1552
the [commissioner] commission; and 1553
(13) Requirements for information and reports from casino gaming 1554
facilities to enable effective auditing of casino gaming operations. 1555
(b) Until such regulations are adopted and in effect, a casino gaming 1556
facility may operate pursuant to its standards of operation and 1557
management, provided such standards are approved by the 1558
[commissioner] commission pursuant to section 12-578b, as amended by 1559
this act. 1560
Sec. 40. Section 12-578b of the general statutes is repealed and the 1561
following is substituted in lieu thereof (Effective January 1, 2021): 1562
(a) Each casino gaming facility shall submit to the [commissioner] 1563
commission a description of its standards of operation and management 1564
of all gaming operations. The description shall include: (1) Accounting 1565
controls to be used in casino gaming operations; (2) job descriptions for 1566
all positions involved in casino gaming operations; (3) procedures for 1567
the security of chips, cash and other cash equivalents used in authorized 1568
games; (4) procedures for the safety and security of patrons of the casino 1569
gaming facility; (5) procedures and rules governing the conduct of any 1570
authorized games conducted at the casino gaming facility; (6) a 1571
certification by the attorney of the casino gaming facility that the 1572
submitted standards of operation and management conform to state law 1573
and regulations governing casino gaming operations; (7) a certification 1574
by the chief financial officer of the casino gaming facility or an 1575
independent auditor that the submitted standards of operation and 1576
management provide adequate and effective controls, establish a 1577
consistent overall system of procedures and administrative and 1578
accounting controls and conform to generally accepted accounting 1579
principles; and (8) any other standards required by the [commissioner] 1580
commission. 1581
(b) The [commissioner] commission shall approve or reject a 1582 Raised Bill No. 5190
LCO No. 1555 51 of 103
submission of standards of operation and management required under 1583
subsection (a) of this section not later than sixty days after the date on 1584
which the [commissioner] commission received such standards. If the 1585
[commissioner] commission fails to approve or reject a submission of 1586
standards of operation and management not later than sixty days after 1587
the date on which the [commissioner] commission received such 1588
standards of operation and management, such standards of operation 1589
and management shall be deemed approved. No casino gaming facility 1590
may commence casino gaming operations unless such standards of 1591
operation and management are approved by the [commissioner] 1592
commission or deemed approved. 1593
(c) No casino gaming facility shall revise any standards of operation 1594
and management that have been approved by the [commissioner] 1595
commission or deemed approved pursuant to subsection (b) of this 1596
section unless the revision has been approved by the [commissioner] 1597
commission. If the [commissioner] commission fails to approve or reject 1598
a submitted revision not later than sixty days after the date on which the 1599
[commissioner] commission received such revision, such revision shall 1600
be deemed approved. 1601
(d) A casino gaming facility aggrieved by an action of the 1602
[commissioner] commission under the provisions of this section may 1603
request a hearing before the [commissioner] commission. The 1604
[commissioner] commission shall hold such hearing in accordance with 1605
the provisions of chapter 54. 1606
(e) The [commissioner] commission shall periodically review a casino 1607
gaming facility's compliance with state law and regulations governing 1608
casino gaming facilities. 1609
Sec. 41. Section 12-578c of the general statutes is repealed and the 1610
following is substituted in lieu thereof (Effective January 1, 2021): 1611
(a) No person may commence or continue employment on the 1612
gaming floor or in a gaming-related position in a casino gaming facility 1613
unless such person holds a gaming employee license issued by the 1614 Raised Bill No. 5190
LCO No. 1555 52 of 103
[commissioner] commission pursuant to this section. 1615
(b) No person or business organization may provide more than 1616
twenty-five thousand dollars of nongaming goods or services per year 1617
in a casino gaming facility unless such person or business organization 1618
holds a nongaming vendor license issued by the [commissioner] 1619
commission pursuant to this section. 1620
(c) No person or business organization may provide gaming services 1621
or gaming equipment to a casino gaming facility unless such person or 1622
business organization holds a gaming services license issued by the 1623
[commissioner] commission pursuant to this section. 1624
(d) No business organization, other than a shareholder in a publicly 1625
traded corporation, may exercise control in or over a licensee licensed 1626
pursuant to this section unless such business organization holds a 1627
gaming affiliate license issued by the [commissioner] commission 1628
pursuant to this section. 1629
(e) Each applicant for a license issued pursuant to this section shall 1630
submit a completed application on forms prescribed by the 1631
[commissioner] commission. Such application forms may require the 1632
applicant to submit information as to: (1) Financial standing and credit; 1633
(2) moral character; (3) criminal record, if any; (4) previous employment; 1634
(5) corporate, partnership or association affiliations; (6) ownership of 1635
personal assets; and (7) any other information as the [commissioner] 1636
commission deems pertinent to the issuance of such license. 1637
(f) The [commissioner] commission shall, as soon as practicable after 1638
the receipt of a completed license application, grant or deny the license 1639
application. Any license issued by the [commissioner] commission 1640
pursuant to this section shall be effective for not more than one year 1641
from the date of issuance. Applications for renewal of any such license 1642
shall be on such form as prescribed by the [commissioner] commission. 1643
Any holder of a license issued pursuant to this section who submits an 1644
application to renew such license may continue to be employed by a 1645
casino gaming facility or provide services to a casino gaming facility 1646 Raised Bill No. 5190
LCO No. 1555 53 of 103
until the [commissioner] commission denies such renewal application. 1647
(g) The [commissioner] commission may issue a temporary license at 1648
the request of any person who has submitted an application for a license 1649
under this section. The [commissioner] commission shall require such 1650
applicant to submit to state and national criminal history records checks 1651
before receiving a temporary license. The criminal history records 1652
checks shall be conducted in accordance with section 29-17a. A 1653
temporary license shall expire when the [commissioner] commission 1654
grants or denies the pending application for a license under this section. 1655
(h) The [commissioner] commission may investigate any person or 1656
business organization that holds a license pursuant to this section at any 1657
time and may suspend or revoke such license for good cause after a 1658
hearing held in accordance with the provisions of chapter 54. Any 1659
person or business organization whose license is suspended or revoked, 1660
or any applicant aggrieved by the action of the [commissioner] 1661
commission concerning an application for a license or renewal 1662
application, may appeal pursuant to section 4-183. 1663
Sec. 42. Section 12-578d of the general statutes is repealed and the 1664
following is substituted in lieu thereof (Effective January 1, 2021): 1665
(a) For the purposes of this section, "alcoholic liquor" has the same 1666
meaning as provided in section 30-1. 1667
(b) Except as provided in subsection (c) of this section, no person 1668
under the minimum age for the purchase of alcoholic liquor under the 1669
provisions of chapter 545 shall be admitted onto the gaming floor of any 1670
casino gaming facility nor be permitted to participate in any authorized 1671
games. 1672
(c) A person eighteen years of age or older but under the minimum 1673
age for the purchase of alcoholic liquor may be employed in a casino 1674
gaming facility, provided such person is licensed by the [commissioner] 1675
commission pursuant to section 12-578c, as amended by this act, and 1676
such employment does not involve handling or serving alcoholic liquor. 1677 Raised Bill No. 5190
LCO No. 1555 54 of 103
Sec. 43. Section 12-578e of the general statutes is repealed and the 1678
following is substituted in lieu thereof (Effective January 1, 2021): 1679
(a) Commencing in any fiscal year that a casino gaming facility is 1680
authorized by any provision of the general statutes to conduct 1681
authorized games, and on or before September thirtieth in each fiscal 1682
year thereafter, the [commissioner] commission shall: (1) Estimate, after 1683
consultation with each casino gaming facility, the reasonable and 1684
necessary costs that will be incurred by the [department] commission in 1685
the next fiscal year to regulate casino gaming facilities under chapters 1686
226 and 545; and (2) assess each casino gaming facility its share of such 1687
estimated costs pro rata according to its annualized share of the gross 1688
gaming revenue of all casino gaming facilities in the prior fiscal year, if 1689
any. The estimated costs shall not exceed the estimate of expenditure 1690
requirements transmitted by the [commissioner] commission pursuant 1691
to section 4-77. The assessment for any fiscal year shall be: (A) Reduced 1692
pro rata by the amount of any surplus from the assessment of the prior 1693
fiscal year, which shall be maintained in accordance with subsection (d) 1694
of this section, or (B) increased pro rata by the amount of any deficit 1695
from the assessment of the prior fiscal year. 1696
(b) Each casino gaming facility shall pay to the [commissioner] 1697
commission the amount assessed to such casino gaming facility not later 1698
than the date specified by the [commissioner] commission for payment, 1699
provided such date is not less than thirty days from the date of such 1700
assessment. The [commissioner] commission shall remit to the 1701
Treasurer all funds received pursuant to this section. 1702
(c) (1) There is established a fund to be known as the "State Gaming 1703
Regulatory Fund". The fund shall contain any moneys required or 1704
permitted to be deposited in the fund and shall be held by the Treasurer 1705
separate and apart from all other moneys, funds and accounts. 1706
Investment earnings credited to the assets of said fund shall become part 1707
of the assets of said fund. Any balance remaining in said fund at the end 1708
of any fiscal year shall be carried forward in said fund for the fiscal year 1709
next succeeding. Moneys in the fund shall be expended by the Treasurer 1710 Raised Bill No. 5190
LCO No. 1555 55 of 103
for the purposes of paying the costs incurred by the [department] 1711
commission to regulate casino gaming facilities. 1712
(2) The Treasurer shall deposit all funds received pursuant to 1713
subsection (b) of this section in the State Gaming Regulatory Fund. 1714
(d) On or before September thirtieth, annually, the Comptroller shall 1715
calculate the actual reasonable and necessary costs incurred by the 1716
[department] commission to regulate casino gaming facilities during the 1717
prior fiscal year. The Comptroller shall include as part of such 1718
calculation any actual reasonable and necessary costs incurred by the 1719
Department of Consumer Protection to regulate casino gaming facilities 1720
prior to January 1, 2021. The Treasurer shall set aside within the State 1721
Gaming Regulatory Fund amounts received in excess of such actual 1722
costs. Such excess amounts shall be considered a surplus for the 1723
purposes of subsection (a) of this section. 1724
(e) Any casino gaming facility aggrieved by an assessment under the 1725
provisions of this section may request a hearing before the 1726
[commissioner] commission not later than thirty days after such 1727
assessment. The [commissioner] commission shall hold such hearing in 1728
accordance with the provisions of chapter 54 not later than thirty days 1729
after receiving such request. 1730
Sec. 44. Section 12-578f of the general statutes is repealed and the 1731
following is substituted in lieu thereof (Effective January 1, 2021): 1732
(a) For the purposes of this section and section 12-578g: 1733
(1) "Authorized games" means any game of chance, including, but not 1734
limited to, blackjack, poker, dice, money-wheels, roulette, baccarat, 1735
chuck-a-luck, pan game, over and under, horse race game, acey-deucy, 1736
beat the dealer, bouncing ball, video facsimile game and any other game 1737
of chance authorized by the [Commissioner of Consumer Protection] 1738
commission; 1739
(2) "Mashantucket Pequot memorandum of understanding" means 1740 Raised Bill No. 5190
LCO No. 1555 56 of 103
the memorandum of understanding entered into by and between the 1741
state and the Mashantucket Pequot Tribe on January 13, 1993, as 1742
amended on April 30, 1993; 1743
(3) "Mashantucket Pequot procedures" means the Final 1744
Mashantucket Pequot Gaming Procedures prescribed by the Secretary 1745
of the United States Department of the Interior pursuant to Section 1746
2710(d)(7)(B)(vii) of Title 25 of the United States Code and published in 1747
56 Federal Register 24996 (May 31, 1991); 1748
(4) "MMCT Venture, LLC" means a limited liability company 1749
described in subsection (d) of this section; 1750
(5) "Mohegan compact" means the Tribal-State Compact entered into 1751
by and between the state and the Mohegan Tribe of Indians of 1752
Connecticut on May 17, 1994; and 1753
(6) "Mohegan memorandum of understanding" means the 1754
memorandum of understanding entered into by and between the state 1755
and the Mohegan Tribe of Indians of Connecticut on May 17, 1994. 1756
(b) MMCT Venture, LLC, is authorized to conduct authorized games 1757
at a casino gaming facility at 171 Bridge Street, East Windsor, 1758
Connecticut. 1759
(c) Such authorization shall not be effective unless the following 1760
conditions have been met: 1761
(1) (A) The Governor enters into amendments to the Mashantucket 1762
Pequot procedures and to the Mashantucket Pequot memorandum of 1763
understanding with the Mashantucket Pequot Tribe and amendments 1764
to the Mohegan compact and to the Mohegan memoran dum of 1765
understanding with the Mohegan Tribe of Indians of Connecticut 1766
concerning the operation of a casino gaming facility in the state. 1767
(B) The amendments to the Mashantucket Pequot procedures and the 1768
Mohegan compact shall include a provision that the authorization of 1769
MMCT Venture, LLC, to conduct authorized games in the state does not 1770 Raised Bill No. 5190
LCO No. 1555 57 of 103
terminate the moratorium against the operation of video facsimile 1771
games by the Mashantucket Pequot Tribe and Mohegan Tribe of Indians 1772
of Connecticut on each tribe's reservation. 1773
(C) The amendments to each tribe's memorandum of understanding 1774
shall include a provision that the authorization of MMCT Venture, LLC, 1775
to conduct authorized games in the state does not relieve each tribe from 1776
each tribe's obligation to contribute a percentage of the gross operating 1777
revenues of video facsimile games to the state as provided in each tribe's 1778
memorandum of understanding. 1779
(2) The amendments to the Mashantucket Pequot procedures, the 1780
Mashantucket Pequot memorandum of understanding, the Mohegan 1781
compact and the Mohegan memorandum of understanding are 1782
approved or deemed approved by the Secretary of the United States 1783
Department of the Interior pursuant to the federal Indian Gaming 1784
Regulatory Act, P.L. 100-497, 25 USC 2701 et seq., and its implementing 1785
regulations. If such approval is overturned by a court in a final 1786
judgment, which is not appealable, the authorization provided under 1787
this section shall cease to be effective. 1788
(3) The amendments to the Mashantucket Pequot procedures and to 1789
the Mohegan compact are approved by the General Assembly pursuant 1790
to section 3-6c. 1791
(4) The amendments to the Mashantucket Pequot memorandum of 1792
understanding and to the Mohegan memorandum of understanding are 1793
approved by the General Assembly pursuant to the process described 1794
in section 3-6c. 1795
(5) The governing bodies of the Mashantucket Pequot Tribe and 1796
Mohegan Tribe of Indians of Connecticut enact resolutions providing: 1797
(A) That if MMCT Venture, LLC, fails to pay any fees or taxes due the 1798
state, the tribes, as the members of MMCT Venture, LLC, waive the 1799
possible defense of sovereign immunity with respect to any action or 1800
claim by the state against the tribes as the members of MMCT Venture, 1801
LLC, to the extent such action or claim is permitted to be brought against 1802 Raised Bill No. 5190
LCO No. 1555 58 of 103
a member of a limited liability company under state law to collect any 1803
fees or taxes, while preserving any other defenses available to the tribes, 1804
and (B) that the venue for such action or claim shall be in the judicial 1805
district of Hartford. 1806
(d) Such authorization shall apply to MMCT Venture, LLC, provided: 1807
(1) MMCT Venture, LLC, is a limited liability company jointly and 1808
exclusively owned by the Mashantucket Pequot Tribe and the Mohegan 1809
Tribe of Indians of Connecticut; (2) no other person or business 1810
organization holds an equity interest in MMCT Venture, LLC; and (3) 1811
each tribe holds at least a twenty-five per cent equity interest in MMCT 1812
Venture, LLC. If MMCT Venture, LLC, ceases to be a limited liability 1813
company jointly and exclusively owned by the Mashantucket Pequot 1814
Tribe and the Mohegan Tribe of Indians of Connecticut in which each 1815
tribe holds at least a twenty-five per cent equity interest, such 1816
authorization shall be void. 1817
Sec. 45. Section 12-578aa of the general statutes is repealed and the 1818
following is substituted in lieu thereof (Effective January 1, 2021): 1819
(a) For the purposes of this section: 1820
(1) "Entry fee" means the amount of cash or cash equivalent that is 1821
required to be paid by a fantasy contest player to a fantasy contest 1822
operator to participate in a fantasy contest; 1823
(2) "Fantasy contest" means any online fantasy or simulated game or 1824
contest with an entry fee in which: (A) The value of all prizes and 1825
awards offered to winning fantasy contest players is established and 1826
made known to the players in advance of the game or contest; (B) all 1827
winning outcomes reflect the knowledge and skill of the players and are 1828
determined predominantly by accumulated statistical results of the 1829
performance of individuals, including athletes in the case of sporting 1830
events; and (C) no winning outcome is based on the score, point spread 1831
or any performance of any single actual team or combination of teams 1832
or solely on any single performance of an individual athlete or player in 1833
any single actual sporting event. Fantasy contests shall not include 1834 Raised Bill No. 5190
LCO No. 1555 59 of 103
lottery games; 1835
(3) "Fantasy contest operator" means a person or entity that operates 1836
a fantasy contest and offers such fantasy contest to members of the 1837
general public in the state; 1838
(4) "Fantasy contest player" means a person who participates in a 1839
fantasy contest offered by a fantasy contest operator; 1840
(5) "Gross receipts" means the amount equal to the total of all entry 1841
fees that a fantasy contest operator collects from all fantasy contest 1842
players, less the total of all sums paid out as prizes to all fantasy contest 1843
players, multiplied by the location percentage; 1844
(6) "Location percentage" means the percentage rounded to the 1845
nearest tenth of a per cent of the total of entry fees collected from fantasy 1846
contest players located in the state, divided by the total of entry fees 1847
collected from all fantasy contest players; 1848
(7) "Mashantucket Pequot memorandum of understanding" means 1849
the memorandum of understanding entered into by and between the 1850
state and the Mashantucket Pequot Tribe on January 13, 1993, as 1851
amended on April 30, 1993; 1852
(8) "Mashantucket Pequot procedures" means the Final 1853
Mashantucket Pequot Gaming Procedures prescribed by the Secretary 1854
of the United States Department of the Interior pursuant to Section 1855
2710(d)(7)(B)(vii) of Title 25 of the United States Code and published in 1856
56 Federal Register 24996 (May 31, 1991); 1857
(9) "Mohegan compact" means the Tribal-State Compact entered into 1858
by and between the state and the Mohegan Tribe of Indians of 1859
Connecticut on May 17, 1994; and 1860
(10) "Mohegan memorandum of understanding" means the 1861
memorandum of understanding entered into by and between the state 1862
and the Mohegan Tribe of Indians of Connecticut on May 17, 1994. 1863 Raised Bill No. 5190
LCO No. 1555 60 of 103
(b) The provisions of this section shall not be effective unless the 1864
following conditions have been met: 1865
(1) The Governor enters into amendments to the Mashantucket 1866
Pequot procedures and to the Mashantucket Pequot memorandum of 1867
understanding with the Mashantucket Pequot Tribe and amendments 1868
to the Mohegan compact and to the Mohegan memorandum of 1869
understanding with the Mohegan Tribe of Indians of Connecticut 1870
concerning the authorization of fantasy contests in the state. 1871
(2) The amendments to the Mashantucket Pequot procedures and the 1872
Mohegan compact shall include a provision that the authorization of 1873
fantasy contests in the state does not terminate the moratorium against 1874
the operation of video facsimile games by the Mashantucket Pequot 1875
Tribe and Mohegan Tribe of Indians of Connecticut on each tribe's 1876
reservation. 1877
(3) The amendments to each tribe's memorandum of understanding 1878
shall include a provision that the authorization of fantasy contests in the 1879
state does not relieve each tribe from each tribe's obligation to contribute 1880
a percentage of the gross operating revenues of video facsimile games 1881
to the state as provided in each tribe's memorandum of understanding. 1882
(4) The amendments to the Mashantucket Pequot procedures, the 1883
Mashantucket Pequot memorandum of understanding, the Mohegan 1884
compact and the Mohegan memorandum of understanding are 1885
approved or deemed approved by the Secretary of the United States 1886
Department of the Interior pursuant to the federal Indian Gaming 1887
Regulatory Act, P.L. 100-497, 25 USC 2701 et seq., and its implementing 1888
regulations. If such approval is overturned by a court in a final 1889
judgment, which is not appealable, the authorization provided under 1890
this section shall cease to be effective. 1891
(5) The amendments to the Mashantucket Pequot procedures and to 1892
the Mohegan compact are approved by the General Assembly pursuant 1893
to section 3-6c. 1894 Raised Bill No. 5190
LCO No. 1555 61 of 103
(6) The amendments to the Mashantucket Pequot memorandum of 1895
understanding and to the Mohegan memorandum of understanding are 1896
approved by the General Assembly pursuant to the process described 1897
in section 3-6c. 1898
(c) Not later than July 1, 2018, the [Commissioner of Consumer 1899
Protection] commission shall adopt regulations, in accordance with the 1900
provisions of chapter 54, regarding the operation of, participation in and 1901
advertisement of fantasy contest in the state. Such regulations shall 1902
protect fantasy contest players who pay an entry fee to play fantasy 1903
contests from unfair or deceptive acts or practices. Such regulations 1904
shall include, but need not be limited to: (1) A prohibition on fantasy 1905
contest operators allowing persons under the age of eighteen to 1906
participate in a fantasy contest offered by such operators; (2) protections 1907
for fantasy contest players' funds on deposit with fantasy contest 1908
operators; (3) requirements regarding truthful advertising by fantasy 1909
contest operators; (4) procedures to ensure the integrity of fantasy 1910
contests offered by fantasy contest operators; (5) procedures to ensure 1911
that fantasy contest operators provide fantasy contest players with: (A) 1912
Information regarding responsible playing and places to seek assistance 1913
for addictive or compulsive behavior, and (B) protections against 1914
compulsive behavior; and (6) reporting requirements and procedures to 1915
demonstrate eligibility for a reduction of the initial registration fee and 1916
annual registration renewal fee pursuant to subsection (d) of this 1917
section. 1918
(d) (1) Not later than sixty days after the adoption of regulations 1919
pursuant to subsection (c) of this section, and thereafter, each fantasy 1920
contest operator that operates fantasy contests in the state shall register 1921
annually with the [Commissioner of Consumer Protection] commission 1922
on a form prescribed by the [commissioner] commission. Each fantasy 1923
contest operator shall submit an initial registration fee of fifteen 1924
thousand dollars and an annual registration renewal fee of fifteen 1925
thousand dollars, except that the [commissioner] commission shall 1926
reduce the initial registration fee and annual registration fee so that such 1927
fees do not exceed ten per cent of the gross receipts of such operator for 1928 Raised Bill No. 5190
LCO No. 1555 62 of 103
the registration period. 1929
(2) To demonstrate the eligibility of a fantasy contest operator for a 1930
reduction of the initial registration fee or annual registration renewal fee 1931
pursuant to subdivision (1) of this subsection, the fantasy contest 1932
operator shall provide to the [commissioner] commission, in a manner 1933
prescribed by the [commissioner] commission, an estimation of the 1934
gross receipts such operator expects to receive in the upcoming 1935
registration period. Prior to renewing a registration where such operator 1936
paid a reduced registration fee for the previous registration period, or 1937
after a registration period where such operator should have paid a 1938
reduced fee for the previous registration period, such operator shall 1939
submit to the [commissioner] commission, in a manner prescribed by 1940
the [commissioner] commission, the actual amount of gross receipts 1941
received by such operator in the previous registration period. The 1942
[commissioner] commission shall calculate the difference, if any, 1943
between the estimated gross receipts and the actual gross receipts and 1944
determine if the registration fee previously paid by such operator was 1945
the correct amount. If such operator paid an amount in excess of the 1946
amount determined to be the correct amount of the registration fee, the 1947
[commissioner] commission shall refund such operator accordingly or 1948
credit such amount against the registration fee for the upcoming 1949
registration period, provided such operator renews his or her 1950
registration. If such operator did not pay the amount determined to be 1951
the correct amount of the registration fee, such operator shall pay to the 1952
[commissioner] commission the difference between the correct amount 1953
and the registration fee previously paid. 1954
(e) Any person who violates any provision of this section or any 1955
regulation adopted pursuant to subsection (c) of this section shall be 1956
fined not more than one thousand dollars for each violation. 1957
Sec. 46. Section 12-579 of the general statutes is repealed and the 1958
following is substituted in lieu thereof (Effective January 1, 2021): 1959
Any municipality may, by ordinance, impose a tax of ten per cent of 1960 Raised Bill No. 5190
LCO No. 1555 63 of 103
the admission charge, as defined in subsection (3) of section 12-540, to 1961
any place licensed by the [Department of Consumer Protection] 1962
Commission on Gaming and containing a pari-mutuel system therein or 1963
to any off-track betting facility. The tax shall be imposed upon the 1964
person making such charge and reimbursement for the tax shall be 1965
collected by such person from the purchaser. Such reimbursement, 1966
termed "tax", shall be paid by the purchaser to the person making the 1967
admission charge. Such tax, when added to the admission charge, shall 1968
be a debt from the purchaser to the person making such charge and shall 1969
be recoverable at law. 1970
Sec. 47. Section 12-584 of the general statutes is repealed and the 1971
following is substituted in lieu thereof (Effective January 1, 2021): 1972
(a) Each licensee of the [department] Commission on Gaming, other 1973
than an occupational licensee, shall file, on or before April fifteenth of 1974
each year, with the [department] commission: (1) Certified financial 1975
statements for the prior calendar year or fiscal year, prepared in 1976
accordance with generally accepted accounting principles; (2) the names 1977
and addresses of every shareholder, person or business organization 1978
having a financial, property, leasehold, ownership or beneficial interest 1979
in such licensee; (3) (A) the names and addresses of every person or 1980
business organization which provides contractual services, equipment 1981
or property related to any of the activities authorized under chapter 226, 1982
and (B) the nature of such services rendered and equipment or property 1983
provided; and (4) copies of all state and federal tax returns filed by such 1984
licensee for the next preceding calendar year or taxable year, except that 1985
if any state or federal tax return has not been filed with the state or 1986
federal government on or before said date, such licensee may file such 1987
return with the [department] commission at the same time he or it files 1988
such return with the state or federal government. 1989
(b) The [commissioner] commission may require any person, 1990
business organization or shareholder disclosed under the provisions of 1991
subdivision (2) of subsection (a) of this section to file on or before April 1992
fifteenth of each year, with the [department] commission: (1) A 1993 Raised Bill No. 5190
LCO No. 1555 64 of 103
statement of financial position to be submitted under oath on forms 1994
provided by the [department] commission; (2) a statement of interest in 1995
any other gambling activity, within or without the state of Connecticut; 1996
and (3) copies of state and federal tax returns filed by such person, 1997
business organization or shareholder for the next preceding calendar 1998
year or taxable year, except that if any state or federal tax return has not 1999
been filed with the state or federal government on or before said date, 2000
such person, business organization or shareholder may file such return 2001
with the [department] commission at the same time he or it files such 2002
return with the state or federal government. The [commissioner] 2003
commission shall not require such filing more than once a year, except 2004
that the [commissioner] commission may require additional filings or 2005
additional information to ensure the integrity of legalized gambling. All 2006
information gathered by the [department] commission under this 2007
chapter and section 12-562, as amended by this act, may be transmitted 2008
by the [department] commission to any agency or department of the 2009
state and shall be made available for public dissemination or inspection, 2010
except that any state or federal tax returns gathered by the [department] 2011
commission pursuant to this section shall only be open to inspection by 2012
the [department] commission, its staff and such other state agencies or 2013
departments which require return information to perform their official 2014
duties. 2015
(c) Failure by any licensee to comply with the requirements of this 2016
section shall constitute grounds for the [commissioner] commission: (1) 2017
To suspend or revoke such license; (2) to impose a fine of not more than 2018
two thousand five hundred dollars or, if the licensee is licensed to 2019
conduct a meeting or operate an off-track betting system under 2020
subsection (a) of section 12-575, as amended by this act, to impose a fine 2021
of not more than seventy-five thousand dollars; (3) to rescind the 2022
applicable contract; or (4) to impose any combination of such penalties. 2023
(d) Failure by any person, business organization or shareholder 2024
identified in subsection (b) of this section to comply with the 2025
requirements of this section shall constitute grounds for the 2026
[commissioner] commission: (1) To suspend or revoke such license; (2) 2027 Raised Bill No. 5190
LCO No. 1555 65 of 103
to impose a fine of not more than two thousand five hundred dollars on 2028
such licensee or, if the licensee is licensed to conduct a meeting or 2029
operate an off-track betting system under subsection (a) of section 12-2030
575, as amended by this act, a fine of not more than seventy-five 2031
thousand dollars on such licensee; or (3) to impose any combination of 2032
such penalties. In the case of a shareholder who fails to comply with the 2033
requirements of this section, the [department] commission shall notify 2034
the shareholder and the licensee which issued the shares of such failure. 2035
Upon receipt of such notice the shareholder shall immediately offer such 2036
shares to the licensee for purchase. The licensee shall purchase the 2037
shares not later than sixty days after they are so offered. Each licensee 2038
shall adopt appropriate amendments or additions to any existing 2039
corporate bylaws to permit compliance with this section. 2040
(e) Any licensee aggrieved by an action of the [commissioner] 2041
commission under this section shall have a right of appeal pursuant to 2042
section 4-183. 2043
Sec. 48. Section 12-585 of the general statutes is repealed and the 2044
following is substituted in lieu thereof (Effective January 1, 2021): 2045
(a) All reasonable expenses incurred by or on behalf of the 2046
[department] Commission on Gaming for any investigation of a person 2047
or business organization in connection with an initial application or 2048
contract, the application for transfer of ownership in whole or in part of 2049
an existing licensed facility, the assignment of an existing contract, or 2050
the addition of or change in any member of a board of directors, officer, 2051
shareholder or bondholder of any such person or business organization, 2052
shall be paid to the [department] commission by the person or business 2053
organization under investigation. All funds received by the 2054
[department] commission under the provisions of this subsection shall 2055
be paid into the General Fund. 2056
(b) Each such person or business organization shall be billed for such 2057
expenses on a quarterly basis or at the conclusion of the investigation, 2058
as determined by the [commissioner] commission. Failure on the part of 2059 Raised Bill No. 5190
LCO No. 1555 66 of 103
the person or business organization to remit payment within fifteen 2060
days after receipt of an invoice from the [department] commission shall 2061
constitute grounds to refuse to grant approval of the request of the 2062
person or business organization for which such investigation was 2063
undertaken, or in the case of a licensee, failure to remit payment within 2064
fifteen days shall, in addition, constitute grounds for the [commissioner] 2065
commission: (1) To suspend or revoke such license; (2) to impose a fine 2066
of not more than two thousand five hundred dollars or, if the licensee is 2067
licensed to conduct a meeting or operate an off-track betting system 2068
under subsection (a) of section 12-575, as amended by this act, a fine of 2069
not more than seventy-five thousand dollars; (3) to rescind the 2070
applicable contract; or (4) to impose any combination of such penalties. 2071
Sec. 49. Section 12-586f of the 2020 supplement to the general statutes 2072
is repealed and the following is substituted in lieu thereof (Effective 2073
January 1, 2021): 2074
(a) For the purposes of this section, "tribe" means the Mashantucket 2075
Pequot Tribe and "compact" means the Tribal-State Compact between 2076
the tribe and the state of Connecticut, as incorporated and amended in 2077
the Final Mashantucket Pequot Gaming Procedures prescribed by the 2078
Secretary of the United States Department of the Interior pursuant to 2079
Section 2710(d)(7)(B)(vii) of Title 25 of the United States Code and 2080
published in 56 Federal Register 24996 (May 31, 1991). 2081
(b) The expenses of administering the provisions of the compact shall 2082
be financed as provided in this section. Assessments for regulatory costs 2083
incurred by any state agency which are subject to reimbursement by the 2084
tribe in accordance with the provisions of the compact shall be made by 2085
the Commissioner of Revenue Services in accordance with the 2086
provisions of the compact, including provisions respecting adjustment 2087
of excess assessments. Any underassessment for a prior fiscal year may 2088
be included in a subsequent assessment but shall be specified as such. 2089
Payments made by the tribe in accordance with the provisions of the 2090
compact shall be deposited in the General Fund and shall be credited to 2091
the appropriation for the state agency incurring such costs. 2092 Raised Bill No. 5190
LCO No. 1555 67 of 103
(c) Assessments for law enforcement costs incurred by any state 2093
agency which are subject to reimbursement by the tribe in accordance 2094
with the provisions of the compact shall be made by the Commissioner 2095
of Emergency Services and Public Protection in accordance with the 2096
provisions of the compact, including provisions respecting adjustment 2097
of excess assessments. Any underassessment for a prior fiscal year may 2098
be included in a subsequent assessment but shall be specified as such. 2099
Payments made by the tribe in accordance with the provisions of the 2100
compact shall be deposited in the General Fund and shall be credited to 2101
the appropriation for the state agency incurring such costs. 2102
(d) If the tribe is aggrieved due to any assessment levied pursuant to 2103
such compact and this section or by any failure to adjust an excess 2104
assessment in accordance with the provisions of the compact and this 2105
section, it may, not later than thirty days after the time provided for the 2106
payment of such assessment, appeal therefrom in accordance with the 2107
terms of the compact, to the superior court for the judicial district of 2108
Hartford, which appeal shall be accompanied by a citation to the 2109
[Commissioner of Consumer Protection] Commission on Gaming to 2110
appear before said court. Such citation shall be signed by the same 2111
authority, and such appeal shall be returnable at the same time and 2112
served and returned in the same manner as is required in case of a 2113
summons in a civil action. Proceedings in such matter shall be 2114
conducted in the same manner as provided for in section 38a-52. 2115
(e) The [Commissioner of Consumer Protection] Commission on 2116
Gaming shall require each applicant for a casino gaming employee 2117
license, casino gaming service license or casino gaming equipment 2118
license to submit to state and national criminal history records checks 2119
before such license is issued. The criminal history records checks 2120
required pursuant to this subsection shall be conducted in accordance 2121
with section 29-17a. 2122
Sec. 50. Section 12-586g of the 2020 supplement to the general statutes 2123
is repealed and the following is substituted in lieu thereof (Effective 2124
January 1, 2021): 2125 Raised Bill No. 5190
LCO No. 1555 68 of 103
(a) For the purposes of this section, "tribe" means the Mohegan Tribe 2126
of Indians of Connecticut and "compact" means the Tribal-State 2127
Compact between the tribe and the state of Connecticut, dated May 17, 2128
1994. 2129
(b) The expenses of administering the provisions of the compact shall 2130
be financed as provided in this section. Assessments for regulatory costs 2131
incurred by any state agency which are subject to reimbursement by the 2132
tribe in accordance with the provisions of the compact shall be made by 2133
the Commissioner of Revenue Services in accordance with the 2134
provisions of the compact, including provisions respecting adjustment 2135
of excess assessments. Any underassessment for a prior fiscal year may 2136
be included in a subsequent assessment but shall be specified as such. 2137
Payments made by the tribe in accordance with the provisions of the 2138
compact shall be deposited in the General Fund and shall be credited to 2139
the appropriation for the state agency incurring such costs. 2140
(c) Assessments for law enforcement costs incurred by any state 2141
agency which are subject to reimbursement by the tribe in accordance 2142
with the provisions of the compact shall be made by the Commissioner 2143
of Emergency Services and Public Protection in accordance with the 2144
provisions of the compact, including provisions respecting adjustment 2145
of excess assessments. Any underassessment for a prior fiscal year may 2146
be included in a subsequent assessment but shall be specified as such. 2147
Payments made by the tribe in accordance with the provisions of the 2148
compact shall be deposited in the General Fund and shall be credited to 2149
the appropriation for the state agency incurring such costs. 2150
(d) If the tribe is aggrieved due to any assessment levied pursuant to 2151
such compact and this section or by any failure to adjust an excess 2152
assessment in accordance with the provisions of the compact and this 2153
section, it may, not later than thirty days after the time provided for the 2154
payment of such assessment, appeal therefrom in accordance with the 2155
terms of the compact, to the superior court for the judicial district of 2156
New Britain, which appeal shall be accompanied by a citation to the 2157
[Commissioner of Consumer Protection] Commission on Gaming to 2158 Raised Bill No. 5190
LCO No. 1555 69 of 103
appear before said court. Such citation shall be signed by the same 2159
authority, and such appeal shall be returnable at the same time and 2160
served and returned in the same manner as is required in case of a 2161
summons in a civil action. Proceedings in such matter shall be 2162
conducted in the same manner as provided for in section 38a-52. 2163
(e) The [Commissioner of Consumer Protection] Commission on 2164
Gaming shall require each applicant for a casino gaming employee 2165
license, casino gaming service license or casino gaming equipment 2166
license to submit to state and national criminal history records checks 2167
before such license is issued. The criminal history records checks 2168
required pursuant to this subsection shall be conducted in accordance 2169
with section 29-17a. 2170
Sec. 51. Section 12-802 of the general statutes is repealed and the 2171
following is substituted in lieu thereof (Effective January 1, 2021): 2172
(a) There is created a body politic and corporate, constituting a public 2173
instrumentality and political subdivision of the state created for the 2174
performance of an essential governmental revenue-raising function, 2175
which shall be named the Connecticut Lottery Corporation, and which 2176
may exercise the functions, powers and duties set forth in sections 12-2177
563a, as amended by this act, and 12-800 to 12-818, inclusive, as 2178
amended by this act, to implement the purposes set forth in said 2179
sections, which are public purposes for which public funds may be 2180
expended. The Connecticut Lottery Corporation shall not be construed 2181
to be a department, institution or agency of the state with respect to 2182
budgeting, procurement or personnel requirements, except as provided 2183
in sections 1-120, 1-121, 1-125, 12-563, as amended by this act, 12-563a, 2184
as amended by this act, 12-564, as amended by this act, 12-566, as 2185
amended by this act, 12-568a, as amended by this act, and 12-569, as 2186
amended by this act, subsection (c) of section 12-574, as amended by this 2187
act, and sections 12-800 to 12-818, inclusive, as amended by this act. 2188
(b) [(1) The] Prior to January 1, 2021, the corporation shall be 2189
governed by a board of thirteen directors. [The Governor, with the 2190 Raised Bill No. 5190
LCO No. 1555 70 of 103
advice and consent of the General Assembly, shall appoint five directors 2191
who have skill, knowledge and experience in the fields of management, 2192
finance or operations in the private sector. Two directors shall be the 2193
State Treasurer and the Secretary of the Office of Policy and 2194
Management, both of whom shall serve ex officio and shall have all of 2195
the powers and privileges of a member of the board of directors. Each 2196
ex-officio director may designate his or her deputy or any member of 2197
his or her staff to represent him or her at meetings of the corporation 2198
with full power to act and vote on his or her behalf. Each director 2199
appointed by the Governor shall serve at the pleasure of the Governor, 2200
but no longer than the term of office of the Governor or until the 2201
director's successor is appointed and qualified, whichever term is 2202
longer. The Governor shall fill any vacancy for the unexpired term of a 2203
director appointed by the Governor. The procedures of section 4-7 shall 2204
apply to the confirmation of the Governor's appointments by both 2205
houses of the General Assembly. 2206
(2) Six directors shall be appointed as follows: One by the president 2207
pro tempore of the Senate, one by the majority leader of the Senate, one 2208
by the minority leader of the Senate, one by the speaker of the House of 2209
Representatives, one by the majority leader of the House of 2210
Representatives and one by the minority leader of the House of 2211
Representatives. Each director appointed by a member of the General 2212
Assembly shall serve in accordance with the provisions of section 4-1a. 2213
The appropriate legislative appointing authority shall fill any vacancy 2214
for the unexpired term of a director appointed by such authority. 2215
(3) Any appointed director shall be eligible for reappointment. The 2216
Commissioner of Consumer Protection shall not serve as a director. Any 2217
director may be removed by order of the Superior Court upon 2218
application of the Attorney General for misfeasance, malfeasance or 2219
wilful neglect of duty. Such actions shall be tried to the court without a 2220
jury and shall be privileged in assignment for hearing. If the court, after 2221
hearing, finds there is clear and convincing evidence of such 2222
misfeasance, malfeasance or wilful neglect of duty it shall order the 2223
removal of such director. Any director so removed shall not be 2224 Raised Bill No. 5190
LCO No. 1555 71 of 103
reappointed to the board. 2225
(c) The chairperson of the board shall be appointed by the Governor 2226
from among the members of the board. The directors shall annually elect 2227
one of their number as vice chairperson. The board may elect such other 2228
officers of the board as it deems proper. Directors shall receive no 2229
compensation for the performance of their duties under sections 12-563a 2230
and 12-800 to 12-818, inclusive, but shall be reimbursed for necessary 2231
expenses incurred in the performance of their duties. 2232
(d) Meetings of the corporation shall be held at such times as shall be 2233
specified in the bylaws adopted by the corporation and at such other 2234
time or times as the chairperson deems necessary.] On and after January 2235
1, 2021, the corporation shall be governed by the Commission on 2236
Gaming established in section 1 of this act. 2237
(c) The corporation shall, within the first ninety days of the transfer 2238
to the corporation of the lottery, pursuant to section 12-808, as amended 2239
by this act, and on a fiscal quarterly basis thereafter, report on its 2240
operations for the preceding fiscal quarter to the Governor and the joint 2241
standing committees of the General Assembly having cognizance of 2242
matters relating to finance, revenue and bonding, and public safety. The 2243
report shall include a summary of the activities of the corporation, a 2244
statement of operations and, if necessary, recommendations for 2245
legislation to promote the purposes of the corporation. The accounts of 2246
the corporation shall be subject to audit by the state Auditors of Public 2247
Accounts. The corporation shall have independent certified public 2248
accountants audit its books and accounts at least once each fiscal year. 2249
The books, records and financial statements of the corporation shall be 2250
prepared in accordance with generally accepted accounting principles. 2251
[(e)] (d) The Connecticut Lottery Corporation shall be a successor 2252
employer to the state and shall recognize existing bargaining units and 2253
collective bargaining agreements existing at the time of transfer of the 2254
lottery to the corporation. The employees of the corporation shall be 2255
considered state employees under the provisions of sections 5-270 to 5-2256 Raised Bill No. 5190
LCO No. 1555 72 of 103
280, inclusive. The corporation shall not be required to comply with 2257
personnel policies and procedures of the Department of Administrative 2258
Services and the Office of Policy and Management with regard to 2259
approval for the creation of new positions, the number of such positions, 2260
the decision to fill such positions or the time for filling such positions. 2261
The corporation, not the executive branch, shall have the power to 2262
determine whether an individual is qualified to fill a vacancy at the 2263
corporation. Nonmanagerial employees of the corporation shall be 2264
members of the classified service. Managerial employees shall be 2265
exempt from the classified service. The corporation shall have the ability 2266
to determine the qualifications and set the terms and conditions of 2267
employment of managerial employees including the establishment of 2268
incentive plans. 2269
[(f)] (e) (1) The corporation may create one or more new 2270
classifications of entrepreneurial sales employees as determined by the 2271
[board of directors] commission. Such classifications shall not be 2272
deemed comparable to other classifications in state service. 2273
(2) Upon the expiration of the collective bargaining agreement 2274
covering transferred sales employees, all terms and conditions of 2275
employment in a new entrepreneurial sales classification shall be subject 2276
to collective bargaining as part of the negotiation of a common successor 2277
agreement. 2278
[(g)] (f) The executive branch shall negotiate on behalf of the 2279
corporation for employees of the corporation covered by collective 2280
bargaining and represent the corporation in all other collective 2281
bargaining matters. The corporation shall be entitled to have a 2282
representative present at all such bargaining. 2283
[(h)] (g) In any interest arbitration regarding employees of the 2284
corporation, the arbitrator shall take into account as a factor, in addition 2285
to those factors specified in section 5-276a, the purposes of sections 1-2286
120, 1-121, 1-125, 12-563, as amended by this act, 12-563a, as amended 2287
by this act, 12-564, 12-566, as amended by this act, 12-568a, as amended 2288 Raised Bill No. 5190
LCO No. 1555 73 of 103
by this act, and 12-569, as amended by this act, subsection (c) of section 2289
12-574, as amended by this act, and sections 12-800 to 12-818, inclusive, 2290
as amended by this act, the entrepreneurial mission of the corporation 2291
and the necessity to provide flexibility and innovation to facilitate the 2292
success of the Connecticut Lottery Corporation in the marketplace. In 2293
any arbitration regarding any classification of entrepreneurial sales 2294
employees, the arbitrator shall include a term awarding incentive 2295
compensation for such employees for the purpose of motivating 2296
employees to maximize lottery sales. 2297
[(i)] (h) The officers and all other employees of the corporation shall 2298
be state employees for the purposes of group welfare benefits and 2299
retirement, including, but not limited to, those provided under chapter 2300
66 and sections 5-257 and 5-259. The corporation shall reimburse the 2301
appropriate state agencies for all costs incurred by such designation. 2302
Sec. 52. Section 12-802a of the general statutes is repealed and the 2303
following is substituted in lieu thereof (Effective January 1, 2021): 2304
No person shall be employed by the Connecticut Lottery Corporation 2305
until such person has obtained an occupational license issued by the 2306
[Commissioner of Consumer Protection] Commission on Gaming in 2307
accordance with regulations adopted under section 12-568a, as 2308
amended by this act. 2309
Sec. 53. Section 12-804 of the general statutes is repealed and the 2310
following is substituted in lieu thereof (Effective January 1, 2021): 2311
(a) [The] (1) Prior to January 1, 2021, the powers of the corporation 2312
shall be vested in and exercised by the board of directors. 2313
Notwithstanding subsection (a) of section 1-121, until the appointment 2314
of five directors, a majority of the ex-officio directors then in office or 2315
their deputy or member of their staff designated to represent them as a 2316
member may take such action, including, without limitation, the 2317
adoption of interim bylaws, and approval of the transfer of lottery 2318
operations contemplated under section 12-808, as amended by this act, 2319
as is necessary to organize the corporation. From and after the five or 2320 Raised Bill No. 5190
LCO No. 1555 74 of 103
more directors, including ex-officio directors, have been seated a 2321
majority of the directors of the board then seated shall constitute a 2322
quorum. The affirmative vote of a majority of the directors present at a 2323
meeting of the board at which a quorum is present shall be necessary 2324
and sufficient for any action taken by the board. No vacancy in the 2325
membership of the board shall impair the right of a quorum to exercise 2326
all the rights and perform all the duties of the board. Any action taken 2327
by the board may be authorized by resolution at any regular or special 2328
meeting and shall take effect immediately unless otherwise provided in 2329
the resolution. Following the initial seating of five or more directors, the 2330
board shall have the power, from time to time, to ratify, adopt, amend 2331
and repeal bylaws for the conduct of its affairs. Notice of any regular 2332
meeting shall be given to directors as set forth in the bylaws of the 2333
corporation. 2334
(2) The terms of board members shall end on December 31, 2020, and 2335
the board shall cease its existence on said date. On and after January 1, 2336
2021, the Commission on Gaming established in section 1 of this act shall 2337
assume the functions previously performed by the board. 2338
(b) [The board may delegate to three or more of the directors powers 2339
and duties as it deems proper.] The [board] commission shall establish 2340
such committees, subcommittees or other entities as it deems necessary 2341
to further the purposes of the corporation including, but not limited to, 2342
an executive committee and a finance committee. 2343
Sec. 54. Section 12-805 of the general statutes is repealed and the 2344
following is substituted in lieu thereof (Effective January 1, 2021): 2345
(a) The [board] Commission on Gaming shall appoint officers of the 2346
corporation, which shall include a president, a secretary, and such other 2347
officers as the [board] commission may approve. Such officers shall not 2348
be members of the [board] commission, shall serve at the pleasure of the 2349
[board] commission and shall receive such compensation as shall be 2350
determined by the [board] commission. The president and secretary 2351
shall not be the same person. The president shall be the chief executive 2352 Raised Bill No. 5190
LCO No. 1555 75 of 103
officer of the corporation. The president shall have the general charge, 2353
supervision and control of the operation and management of business 2354
and affairs of the corporation subject to the direction of the [board of 2355
directors] commission. The president shall have such other powers and 2356
duties as are generally incident to the office of the president and as may 2357
be assigned by the [board of directors] commission. The president shall 2358
not be a state employee. The president shall attend all meetings of the 2359
[board] commission related to the business of the corporation. The 2360
secretary shall keep a true, faithful and correct record of all proceedings 2361
and maintain and be custodian of all books, documents and papers filed 2362
with the corporation and of the book of minutes of the corporation and 2363
of its official seal. The secretary may cause copies to be made of all 2364
minutes and other records and documents of the corporation and may 2365
give certificates under the official seal of the corporation to the effect 2366
that such copies are true copies, and all persons dealing with the 2367
corporation may rely upon such certificates. The president or [his] the 2368
president's designee may serve as a member of such other boards or 2369
committees as may be necessary or desirable to carry out the purposes 2370
of the corporation. 2371
(b) The president shall take all such action as to the operation and 2372
management of the corporation as [he] the president in [his] the 2373
president's discretion deems advisable in order to enhance the monetary 2374
value of the corporation and the lottery. 2375
Sec. 55. Section 12-806 of the 2020 supplement to the general statutes 2376
is repealed and the following is substituted in lieu thereof (Effective 2377
January 1, 2021): 2378
(a) The purposes of the corporation shall be to: (1) Operate and 2379
manage the lottery in an entrepreneurial and business-like manner free 2380
from the budgetary and other constraints that affect state agencies; (2) 2381
provide continuing and increased revenue to the people of the state 2382
through the lottery by being responsive to market forces and acting 2383
generally as a corporation engaged in entrepreneurial pursuits; (3) pay 2384
to the trustee of the Connecticut Teachers' Retirement Fund Bonds 2385 Raised Bill No. 5190
LCO No. 1555 76 of 103
Special Capital Reserve Fund, established in section 10-183vv, the 2386
amounts, if any, required pursuant to subsection (c) of section 12-812; 2387
and (4) ensure that the lottery continues to be operated with integrity 2388
and for the public good. 2389
(b) The corporation shall have the following powers: 2390
(1) To receive as transferee from the state of Connecticut all of the 2391
tangible and intangible assets constituting the lottery including the 2392
exclusive right to operate the lottery as the exclusive lottery of the state 2393
and, subject to subsection (b) of section 12-808, as amended by this act, 2394
to assume and discharge all of the agreements, covenants and 2395
obligations of the [Department of Consumer Protection] Commission on 2396
Gaming entered into which constitute a part of the operation and 2397
management of the lottery; 2398
(2) To operate and manage the lottery consistent with the provisions 2399
of sections 1-120, 1-121, 1-125, 12-563, as amended by this act, 12-563a, 2400
as amended by this act, 12-564, as amended by this act, 12-566, as 2401
amended by this act, 12-568a, as amended by this act, and 12-569, as 2402
amended by this act, subsection (c) of section 12-574, as amended by this 2403
act, and sections 12-800 to 12-818, inclusive, as amended by this act, and 2404
as specifically provided in section 12-812, as amended by this act; 2405
(3) To have perpetual succession as a body corporate and to adopt 2406
bylaws, policies and procedures for the operation of its affairs and 2407
conduct of its businesses; 2408
(4) To introduce new lottery games, modify existing lottery games, 2409
utilize existing and new technologies, determine distribution channels 2410
for the sale of lottery tickets, introduce keno pursuant to signed 2411
agreements with the Mashantucket Pequot Tribe and the Mohegan 2412
Tribe of Indians of Connecticut, in accordance with section 12-806c, and, 2413
to the extent specifically authorized by regulations adopted by the 2414
[Department of Consumer Protection] Commission on Gaming 2415
pursuant to chapter 54, introduce instant ticket vending machines, 2416
kiosks and automated wagering systems or machines, with all such 2417 Raised Bill No. 5190
LCO No. 1555 77 of 103
rights being subject to regulatory oversight by the [Department of 2418
Consumer Protection] commission, except that the corporation shall not 2419
offer any interactive on-line lottery games, including on-line video 2420
lottery games for promotional purposes; 2421
(5) To establish an annual budget of revenues and expenditures, 2422
along with reasonable reserves for working capital, capital 2423
expenditures, debt retirement and other anticipated expenditures, in a 2424
manner and at levels considered by the [board of directors] commission 2425
as appropriate and prudent; 2426
(6) To adopt such administrative and operating procedures which the 2427
[board of directors] commission deems appropriate; 2428
(7) To enter into agreements with one or more states or territories of 2429
the United States for the promotion and operation of joint lottery games 2430
and to continue to participate in any joint lottery game in which the 2431
corporation participates on July 1, 2003, regardless of whether any 2432
government-authorized lottery operated outside of the United States 2433
participates in such game; 2434
(8) Subject to the provisions of section 12-815, as amended by this act, 2435
to enter into agreements with vendors with respect to the operation and 2436
management of the lottery, including operation of lottery terminals, 2437
management services, printing of lottery tickets, management expertise, 2438
marketing expertise, advertising or such other goods or services as the 2439
[board of directors] commission deems necessary and appropriate; 2440
(9) To purchase or lease operating equipment, including, but not 2441
limited to, computer gaming and automated wagering systems and to 2442
employ agents or employees to operate such systems; 2443
(10) To retain unclaimed prize funds as additional revenue for the 2444
state, or to use unclaimed prize funds to increase sales, or to return to 2445
participants unclaimed prize funds in a manner designed to increase 2446
sales; 2447 Raised Bill No. 5190
LCO No. 1555 78 of 103
(11) To establish prize reserve accounts as the [board of directors] 2448
commission deems appropriate; 2449
(12) To pay lottery prizes as awarded under section 12-812, as 2450
amended by this act, to purchase annuities to fund such prizes, and to 2451
assure that all annuities from which payments to winners of lottery 2452
prizes are made are invested in instruments issued by agencies of the 2453
United States government and backed by the full faith and credit of the 2454
United States, or are issued by insurance companies licensed to do 2455
business in the state, provided the issuer has been determined by the 2456
[Department of Consumer Protection] Commission on Gaming to be 2457
financially stable and meets the minimum investment rating as 2458
determined by the [department] commission; 2459
(13) To pay the Office of Policy and Management to reimburse the 2460
Department of Consumer Protection and Commission on Gaming for 2461
the reasonable and necessary costs arising from the department's and 2462
the commission's regulatory oversight of the corporation, in accordance 2463
with the assessment made pursuant to section 12-806b, as amended by 2464
this act, including costs arising directly or indirectly from the licensing 2465
of lottery agents, performance of state police background investigations, 2466
and the implementation of subsection (b) of section 12-562, as amended 2467
by this act, and sections 12-563a, as amended by this act, 12-568a, as 2468
amended by this act, 12-569, as amended by this act, 12-570, 12-570a and 2469
12-800 to 12-818, inclusive, as amended by this act; 2470
(14) In the event that the operation or management of the corporation 2471
becomes subject to the federal gaming occupation tax, to pay such tax 2472
on behalf of lottery sales agents and to assist agents subject thereto; 2473
(15) To determine the commissions payable to lottery sales agents, 2474
provided any agent's commission shall not average less than four per 2475
cent of such agent's lottery sales; 2476
(16) To invest in, acquire, lease, purchase, own, manage, hold and 2477
dispose of real property and lease, convey or deal in or enter into 2478
agreements with respect to such property on any terms necessary or 2479 Raised Bill No. 5190
LCO No. 1555 79 of 103
incidental to carrying out the purposes of sections 12-563a, as amended 2480
by this act, and 12-800 to 12-818, inclusive, as amended by this act, 2481
provided such transactions shall not be subject to approval, review or 2482
regulation pursuant to title 4b or any other statute by any state agency, 2483
except that real property transactions shall be subject to review by the 2484
State Properties Review Board; 2485
(17) To borrow money for the purpose of obtaining working capital; 2486
(18) To hold patents, copyrights, trademarks, marketing rights, 2487
licenses or any other evidence of protection or exclusivity issued under 2488
the laws of the United States or any state; 2489
(19) To employ such assistants, agents and other employees as may 2490
be necessary or desirable to carry out its purposes in accordance with 2491
sections 12-563a, as amended by this act, and 12-800 to 12-818, inclusive, 2492
as amended by this act, to fix their compensation and, subject to the 2493
provisions of subsections [(e) and (f)] (d) and (e) of section 12-802, as 2494
amended by this act, establish all necessary and appropriate personnel 2495
practices and policies; to engage consultants, accountants, attorneys and 2496
financial and other independent professionals as may be necessary or 2497
desirable to assist the corporation in performing its purposes in 2498
accordance with sections 12-563a, as amended by this act, and 12-800 to 2499
12-818, inclusive, as amended by this act; 2500
(20) To make and enter into all contracts and agreements necessary 2501
or incidental to the performance of its duties and the execution of its 2502
powers under sections 12-563a, as amended by this act, and 12-800 to 2503
12-818, inclusive, as amended by this act; 2504
(21) In its own name, to sue and be sued, plead and be impleaded, 2505
adopt a seal and alter the same at pleasure; 2506
(22) Subject to the approval of the board and to the requirement to 2507
remit excess lottery funds to the General Fund as set forth in section 12-2508
812, as amended by this act, to invest any funds not needed for 2509
immediate use or disbursement, including any funds held in approved 2510 Raised Bill No. 5190
LCO No. 1555 80 of 103
reserve accounts, in investments permitted by sections 3-20 and 3-27a 2511
for the proceeds of state bonds; 2512
(23) To procure insurance against any loss in connection with its 2513
property and other assets in such amounts and from such insurers as it 2514
deems desirable; 2515
(24) To the extent permitted under any contract with other persons to 2516
which the corporation is a party, to consent to any termination, 2517
modification, forgiveness or other change of any term of any contractual 2518
right, payment, royalty, contract or agreement of any kind; 2519
(25) To acquire, lease, purchase, own, manage, hold and dispose of 2520
personal property, and lease, convey or deal in or enter into agreements 2521
with respect to such property on any terms necessary or incidental to 2522
the carrying out of these purposes; 2523
(26) To account for and audit funds of the corporation; 2524
(27) To pay or provide for payment from operating revenues all 2525
expenses, costs and obligations incurred by the corporation in the 2526
exercise of the powers of the corporation under sections 12-563a, as 2527
amended by this act, and 12-800 to 12-818, inclusive, as amended by this 2528
act; and 2529
(28) To exercise any powers necessary to carry out the purposes of 2530
sections 12-563a, as amended by this act, and 12-800 to 12-818, inclusive, 2531
as amended by this act. 2532
Sec. 56. Section 12-806a of the general statutes is repealed and the 2533
following is substituted in lieu thereof (Effective January 1, 2021): 2534
As used in this section, "procedure" has the same meaning as 2535
"procedure", as defined in subdivision (2) of section 1-120. The 2536
[Department of Consumer Protection] Commission on Gaming shall, for 2537
the purposes of section 12-568a, as amended by this act, subsection (c) 2538
of section 12-574, as amended by this act, sections 12-802a, as amended 2539
by this act, and 12-815a, as amended by this act, and this section, 2540 Raised Bill No. 5190
LCO No. 1555 81 of 103
regulate the activities of the Connecticut Lottery Corporation to assure 2541
the integrity of the state lottery. In addition to the requirements of the 2542
provisions of chapter 12 and notwithstanding the provisions of section 2543
12-806, as amended by this act, the Connecticut Lottery Corporation 2544
shall, prior to implementing any procedure designed to assure the 2545
integrity of the state lottery, obtain the written approval of the 2546
[Commissioner of Consumer Protection] Commission on Gaming in 2547
accordance with regulations adopted under section 12-568a, as 2548
amended by this act. 2549
Sec. 57. Section 12-806b of the general statutes is repealed and the 2550
following is substituted in lieu thereof (Effective January 1, 2021): 2551
(a) (1) Commencing July 1, 2011, and annually thereafter until July 1, 2552
2020, the Office of Policy and Management shall assess the Connecticut 2553
Lottery Corporation in an amount sufficient to compensate the 2554
Department of Consumer Protection for the reasonable and necessary 2555
costs incurred by the department for the regulatory activities specified 2556
in subdivision (13) of subsection (b) of section 12-806, as amended by 2557
this act, for the preceding fiscal year ending June thirtieth. 2558
(2) On July 1, 2021, the Office of Policy and Management shall assess 2559
the Connecticut Lottery Corporation in an amount sufficient to 2560
compensate the Department of Consumer Protection and Commission 2561
on Gaming for the reasonable and necessary costs incurred by the 2562
department and commission for the regulatory activities specified in 2563
subdivision (13) of subsection (b) of section 12-806, as amended by this 2564
act, for the preceding fiscal year ending June thirtieth. 2565
(3) Commencing July 1, 2022, and annually thereafter, the Office of 2566
Policy and Management shall assess the Connecticut Lottery 2567
Corporation in an amount sufficient to compensate the Commission on 2568
Gaming for the reasonable and necessary costs incurred by the 2569
commission for the regulatory activities specified in subdivision (13) of 2570
subsection (b) of section 12-806, as amended by this act, for the 2571
preceding fiscal year ending June thirtieth. 2572 Raised Bill No. 5190
LCO No. 1555 82 of 103
(b) For the assessment year ending June 30, 2012, the Office of Policy 2573
and Management shall, on or before August 1, 2012, submit the total of 2574
the assessment made in accordance with subsection (a) of this section, 2575
together with a proposed assessment for the succeeding fiscal year 2576
based on the preceding fiscal year cost, to the Connecticut Lottery 2577
Corporation. The assessment for the preceding fiscal year shall be 2578
determined not later than September 15, 2011, after receiving any 2579
objections to the proposed assessments and making such changes or 2580
adjustments as the Secretary of the Office of Policy and Management 2581
determines to be warranted. The corporation shall pay the total 2582
assessment in quarterly payments to the Office of Policy and 2583
Management, with the first payment commencing on October 1, 2011, 2584
and with the remaining payments to be made on January 1, 2012, April 2585
1, 2012, and June 1, 2012. The office shall deposit any such payment in 2586
the lottery assessment account established under subsection (d) of this 2587
section. 2588
(c) For the assessment year ending June 30, 2013, and each assessment 2589
year thereafter, the Office of Policy and Management shall, on or before 2590
May first of each year, submit the total of the assessment made in 2591
accordance with subsection (a) of this section, together with a proposed 2592
assessment for the succeeding fiscal year based on the preceding fiscal 2593
year cost, to the Connecticut Lottery Corporation. The assessment for 2594
the preceding fiscal year shall be determined not later than June 2595
fifteenth of each year, after receiving any objections to the proposed 2596
assessments and making such changes or adjustments as the Secretary 2597
of the Office of Policy and Management determines to be warranted. 2598
The corporation shall pay the total assessment in quarterly payments to 2599
the Office of Policy and Management, with the first payment 2600
commencing on July first of each year, and with the remaining 2601
payments to be made on October first, January first and April first 2602
annually. The office shall deposit any such payment in the lottery 2603
assessment account established under subsection (d) of this section. 2604
(d) (1) There is established an account to be known as the "lottery 2605
assessment account" which shall be a separate, nonlapsing account 2606 Raised Bill No. 5190
LCO No. 1555 83 of 103
within the General Fund. The account shall contain any moneys 2607
required by law to be deposited in the account. Moneys in the account 2608
shall be expended by the [Department of Consumer Protection] 2609
Commission on Gaming. 2610
(2) The Office of Policy and Management shall transfer to the 2611
Department of Consumer Protection any portion of a payment that is 2612
received by the office under an assessment for the reasonable and 2613
necessary costs incurred by the department for regulatory activities 2614
related to the Connecticut Lottery Corporation prior to January 1, 2021. 2615
(e) Notwithstanding any provision of this section, the final quarterly 2616
payment for the assessment for the fiscal year ending June 30, 2011, shall 2617
be paid on July 1, 2011. 2618
Sec. 58. Section 12-807 of the general statutes is repealed and the 2619
following is substituted in lieu thereof (Effective January 1, 2021): 2620
(a) The corporation shall: 2621
(1) Comply with all laws, rules and regulations of the United States 2622
and the state of Connecticut; 2623
(2) Comply with regulations, adopted by the [Department of 2624
Consumer Protection] Commission on Gaming in accordance with 2625
chapter 54. [;] 2626
(b) The corporation shall not: 2627
(1) Sell, transfer, assign, deliver, license, grant or otherwise alienate 2628
any portion or aspect of the lottery or lottery operations, but may sell 2629
real or personal property, provided any revenue from such sale shall be 2630
remitted to the state; 2631
(2) Take any action with respect to the introduction or modification 2632
of lottery games which would cause a violation of any compact or any 2633
memorandum of understanding or agreement from time to time in force 2634
between the state and the Mashantucket Pequot Tribal Nation or the 2635 Raised Bill No. 5190
LCO No. 1555 84 of 103
Mohegan Tribe of Montville, Connecticut, or any future compact or 2636
agreement with a federally recognized tribe. 2637
Sec. 59. Section 12-808 of the general statutes is repealed and the 2638
following is substituted in lieu thereof (Effective January 1, 2021): 2639
(a) As soon as practicable after July 1, 1996, and the organization of 2640
the corporation, the corporation shall enter into such agreements as the 2641
board shall authorize in order to effect the transfer, assignment and 2642
delivery to the corporation from the state of all the tangible and 2643
intangible assets constituting the lottery, including the exclusive right to 2644
operate the lottery, and, subject to subsection (b) of this section, to effect 2645
the assignment to and assumption by the corporation of all agreements, 2646
covenants and obligations of the [Department of Consumer Protection] 2647
Commission on Gaming and other agencies of the state relating to the 2648
operation and management of the lottery. Such agreements may contain 2649
such other provisions as the board deems necessary or appropriate for 2650
the continued operation of the lottery by the corporation pursuant to 2651
sections 12-563a, as amended by this act, and 12-800 to 12-818, inclusive, 2652
as amended by this act. 2653
(b) The state shall transfer to the corporation ownership of all 2654
annuities it purchased for payment of lottery prizes and shall not be 2655
liable for any lottery awards. In addition, the state shall not be liable for 2656
any obligations of the lottery arising prior to the date of transfer as 2657
described in subsection (a) of this section, including those arising in the 2658
ordinary course of business under existing contracts specifically 2659
assumed by the corporation. The [Department of Consumer Protection] 2660
Commission on Gaming shall assign to the corporation any annuity for 2661
payment of any lottery award arising on or before the date of such 2662
transfer. Unless otherwise agreed to in writing with the [department] 2663
commission, the corporation shall be solely responsible for the payment 2664
of all lottery prizes and the purchase of all annuities to provide revenue 2665
for such payment. 2666
(c) The corporation shall request and obtain all approvals, consents 2667 Raised Bill No. 5190
LCO No. 1555 85 of 103
and rulings of and from all state and federal governmental agencies 2668
necessary or in order to effect the transactions contemplated by this 2669
section. 2670
Sec. 60. Section 12-809 of the general statutes is repealed and the 2671
following is substituted in lieu thereof (Effective January 1, 2021): 2672
[Each director and the] The president shall execute a surety bond in 2673
the penal sum of fifty thousand dollars. The [chairman of the board] 2674
Commission on Gaming may [execute] authorize the corporation to 2675
execute a blanket position surety bond, or arrange for separate surety 2676
bonds, covering [each director,] the president and the employees of the 2677
corporation at amounts determined by the [board] commission, but in 2678
no event less than the sum of fifty thousand dollars per person. Each 2679
surety bond shall be conditioned upon the faithful performance of the 2680
duties of the office or offices covered, be executed by a surety company 2681
authorized to transact business in this state as surety, be approved by 2682
the Attorney General and be filed in the office of the Secretary of the 2683
State. The cost of each such bond shall be paid by the corporation. 2684
Sec. 61. Section 12-811 of the general statutes is repealed and the 2685
following is substituted in lieu thereof (Effective January 1, 2021): 2686
(a) The president and all [directors,] officers and employees of the 2687
corporation shall be state employees for purposes of sections 1-79 to 1-2688
89, inclusive. 2689
(b) No [director,] member of the Commission on Gaming or officer or 2690
employee of the corporation shall, directly or indirectly, participate in, 2691
or share in the winnings from, a game conducted pursuant to sections 2692
12-563a, as amended by this act, and 12-800 to 12-818, inclusive, as 2693
amended by this act. 2694
Sec. 62. Section 12-812 of the 2020 supplement to the general statutes 2695
is repealed and the following is substituted in lieu thereof (Effective 2696
January 1, 2021): 2697 Raised Bill No. 5190
LCO No. 1555 86 of 103
(a) The president of the corporation, subject to the direction of the 2698
[board] Commission on Gaming , shall conduct daily, weekly, 2699
multistate, special instant or other lottery games and shall determine the 2700
number of times a lottery shall be held each year, the form and price of 2701
the tickets and the aggregate amount of prizes, which shall not be less 2702
than forty-five per cent of the sales unless required by the terms of any 2703
agreement entered into for the conduct of multistate lottery games. The 2704
proceeds of the sale of tickets shall be deposited in the lottery fund of 2705
the corporation from which prizes shall be paid, upon vouchers signed 2706
by the president, or by either of two persons designated and authorized 2707
by [him] the president, in such numbers and amounts as the president 2708
determines. The corporation may limit its liability in games with fixed 2709
payouts and may cause a cessation of sales of tickets of certain 2710
designation when such liability limit has been reached. 2711
(b) The president, subject to the direction of the [board] commission, 2712
may enter into agreements for the sale of product advertising on lottery 2713
tickets, play slips and other lottery media. 2714
(c) On a weekly basis, the president shall estimate, and certify to the 2715
State Treasurer, that portion of the balance in the lottery fund which 2716
exceeds the current needs of the corporation for the payment of prizes, 2717
the payment of current operating expenses and funding of approved 2718
reserves of the corporation. The corporation shall transfer the amount 2719
so certified from the lottery fund of the corporation to the General Fund 2720
upon notification of receipt of such certification by the Treasurer, except 2721
that if the amount on deposit in the Connecticut Teachers' Retirement 2722
Fund Bonds Special Capital Reserve Fund, established in section 10-2723
183vv, is less than the required minimum capital reserve, as defined in 2724
subsection (b) of said section, the corporation shall pay such amount so 2725
certified to the trustee of the fund for deposit in the fund. If the 2726
corporation transfers any moneys to the General Fund at any time when 2727
the amount on deposit in said capital reserve fund is less than the 2728
required minimum capital reserve, the amount of such transfer shall be 2729
deemed appropriated from the General Fund to the Connecticut 2730
Teachers' Retirement Fund Bonds Special Capital Reserve Fund. 2731 Raised Bill No. 5190
LCO No. 1555 87 of 103
Sec. 63. Subsection (a) of section 12-813 of the general statutes is 2732
repealed and the following is substituted in lieu thereof (Effective January 2733
1, 2021): 2734
(a) The corporation may sell lottery tickets at any location in the state 2735
determined by the president which, in the opinion of the president, will 2736
best enhance lottery revenues, except that no license shall be issued by 2737
the [Department of Consumer Protection] Commission on Gaming to 2738
any person to engage in business exclusively as a lottery sales agent. 2739
Subject to the provisions of subdivision (15) of subsection (b) of section 2740
12-806, as amended by this act, the president may authorize 2741
compensation to such agents in such manner and amounts and subject 2742
to such limitations as he may determine if he finds such compensation 2743
is necessary to assure adequate availability of lottery tickets, provided, 2744
if such agent is a lessee of state property and [his] the agent's rental fee 2745
is based upon the gross receipts of [his] the agent's business conducted 2746
thereon, all receipts from the sale of such lottery tickets shall be excluded 2747
from such gross receipts for rental purposes. The president may 2748
suspend for cause any licensed agent, subject to a final determination 2749
through a hearing provided by the [Department of Consumer 2750
Protection] Commission on Gaming. 2751
Sec. 64. Subsection (a) of section 12-815 of the general statutes is 2752
repealed and the following is substituted in lieu thereof (Effective January 2753
1, 2021): 2754
(a) The corporation shall establish and adopt specific policies, rules 2755
and procedures on purchasing and contracting. Such policies, rules and 2756
procedures or amendments thereto shall be approved by a two-thirds 2757
vote of the entire board. Notwithstanding any other provision of law to 2758
the contrary, the corporation may enter into management, consulting 2759
and other agreements for the provision of goods, services and 2760
professional advisors necessary or useful in connection with the 2761
operation and management of the lottery (1) pursuant to a process of 2762
open or competitive bidding, provided (A) the corporation shall first 2763
determine the format, content and scope of any agreement for any 2764 Raised Bill No. 5190
LCO No. 1555 88 of 103
procurement of goods or services, the conditions under which bidding 2765
will take place and the schedule and stipulations for contract award, and 2766
(B) the corporation may select the contractor deemed to have submitted 2767
the most favorable bid, considering price and other factors, when, in the 2768
judgment of the corporation, such award is in the best interests of the 2769
corporation, or (2) if the corporation, in its discretion, determines that, 2770
due to the nature of the agreement to be contracted for or procured, 2771
open or public bidding is either impracticable or not in the best interests 2772
of the corporation, by negotiation with such prospective providers as 2773
the corporation may determine. The terms and conditions of agreements 2774
and the fees or other compensation to be paid to such persons shall be 2775
determined by the corporation. The agreements entered into by the 2776
corporation in accordance with the provisions of this section shall not 2777
be subject to the approval of any state department, office or agency, 2778
except as provided in regulations adopted by the [Department of 2779
Consumer Protection] Commission on Gaming. Nothing in this section 2780
shall be deemed to restrict the discretion of the corporation to utilize its 2781
own staff and workforce for the performance of any of its assigned 2782
responsibilities and functions whenever, in the discretion of the 2783
corporation, it becomes necessary, convenient or desirable to do so. 2784
Copies of all agreements of the corporation shall be maintained by the 2785
corporation at its offices as public records, subject to said exemption. 2786
Sec. 65. Section 12-815a of the general statutes is repealed and the 2787
following is substituted in lieu thereof (Effective January 1, 2021): 2788
(a) The [Commissioner of Consumer Protection] Commission on 2789
Gaming shall issue vendor, affiliate and occupational licenses in 2790
accordance with the provisions of this section. 2791
(b) No person or business organization awarded a primary contract 2792
by the Connecticut Lottery Corporation to provide facilities, 2793
components, goods or services that are necessary for and directly related 2794
to the secure operation of the activities of said corporation shall do so 2795
unless such person or business organization is issued a vendor license 2796
by the [Commissioner of Consumer Protection] Commission on 2797 Raised Bill No. 5190
LCO No. 1555 89 of 103
Gaming. For the purposes of this subsection, "primary contract" means 2798
a contract to provide facilities, components, goods or services to said 2799
corporation by a person or business organization (1) that provides any 2800
lottery game or any online wagering system related facilities, 2801
components, goods or services and that receives or, in the exercise of 2802
reasonable business judgment, can be expected to receive more than 2803
seventy-five thousand dollars or twenty-five per cent of its gross annual 2804
sales from said corporation, or (2) that has access to the facilities of said 2805
corporation and provides services in such facilities without supervision 2806
by said corporation. Each applicant for a vendor license shall pay a 2807
nonrefundable application fee of two hundred fifty dollars. 2808
(c) No person or business organization, other than a shareholder in a 2809
publicly traded corporation, may be a subcontractor for the provision of 2810
facilities, components, goods or services that are necessary for and 2811
directly related to the secure operation of the activities of the 2812
Connecticut Lottery Corporation, or may exercise control in or over a 2813
vendor licensee unless such person or business organization is licensed 2814
as an affiliate licensee by the [commissioner] commission. Each 2815
applicant for an affiliate license shall pay a nonrefundable application 2816
fee of two hundred fifty dollars. 2817
(d) (1) Each employee of a vendor or affiliate licensee who has access 2818
to the facilities of the Connecticut Lottery Corporation and provides 2819
services in such facilities without supervision by said corporation or 2820
performs duties directly related to the activities of said corporation shall 2821
obtain an occupational license. 2822
(2) Each officer, director, partner, trustee or owner of a business 2823
organization licensed as a vendor or affiliate licensee and any 2824
shareholder, executive, agent or other person connected with any 2825
vendor or affiliate licensee who, in the judgment of the [commissioner] 2826
commission, will exercise control in or over any such licensee shall 2827
obtain an occupational license. 2828
(3) Each employee of the Connecticut Lottery Corporation shall 2829 Raised Bill No. 5190
LCO No. 1555 90 of 103
obtain an occupational license. 2830
(e) The [commissioner] commission shall issue occupational licenses 2831
in the following classes: (1) Class I for persons specified in subdivision 2832
(1) of subsection (d) of this section; (2) Class II for persons specified in 2833
subdivision (2) of subsection (d) of this section; (3) Class III for persons 2834
specified in subdivision (3) of subsection (d) of this section who, in the 2835
judgment of the [commissioner] commission, will not exercise authority 2836
over or direct the management and policies of the Connecticut Lottery 2837
Corporation; and (4) Class IV for persons specified in subdivision (3) of 2838
subsection (d) of this section who, in the judgment of the [commissioner] 2839
commission, will exercise authority over or direct the management and 2840
policies of the Connecticut Lottery Corporation. Each applicant for a 2841
Class I or III occupational license shall pay a nonrefundable application 2842
fee of twenty dollars. Each applicant for a Class II or IV occupational 2843
license shall pay a nonrefundable application fee of one hundred 2844
dollars. The nonrefundable application fee shall accompany the 2845
application for each such occupational license. 2846
(f) In determining whether to grant a vendor, affiliate or occupational 2847
license to any such person or business organization, the [commissioner] 2848
commission may require an applicant to provide information as to such 2849
applicant's: (1) Financial standing and credit; (2) moral character; (3) 2850
criminal record, if any; (4) previous employment; (5) corporate, 2851
partnership or association affiliations; (6) ownership of personal assets; 2852
and (7) such other information as the [commissioner] commission 2853
deems pertinent to the issuance of such license, provided the submission 2854
of such other information will assure the integrity of the state lottery. 2855
The [commissioner] commission shall require each applicant for a 2856
vendor, affiliate or occupational license to submit to state and national 2857
criminal history records checks and may require each such applicant to 2858
submit to an international criminal history records check before such 2859
license is issued. The state and national criminal history records checks 2860
required pursuant to this subsection shall be conducted in accordance 2861
with section 29-17a. The [commissioner] commission shall issue a 2862
vendor, affiliate or occupational license, as the case may be, to each 2863 Raised Bill No. 5190
LCO No. 1555 91 of 103
applicant who satisfies the requirements of this subsection and who is 2864
deemed qualified by the [commissioner] commission. The 2865
[commissioner] commission may reject for good cause an application for 2866
a vendor, affiliate or occupational license. 2867
(g) Each vendor, affiliate or Class I or II occupational license shall be 2868
effective for not more than one year from the date of issuance. Each 2869
Class III or IV occupational license shall remain in effect throughout the 2870
term of employment of any such employee holding such a license. The 2871
[commissioner] commission may require each employee issued a Class 2872
IV occupational license to submit information as to such employee's 2873
financial standing and credit annually. Initial application for and 2874
renewal of any such license shall be in such form and manner as the 2875
[commissioner] commission shall prescribe. 2876
(h) (1) The [commissioner] commission may suspend or revoke for 2877
good cause a vendor, affiliate or occupational license after a hearing 2878
held before the [commissioner] commission in accordance with chapter 2879
54. The [commissioner] commission may order summary suspension of 2880
any such license in accordance with subsection (c) of section 4-182. 2881
(2) Any such applicant aggrieved by the action of the [commissioner] 2882
commission concerning an application for a license, or any person or 2883
business organization whose license is suspended or revoked, may 2884
appeal pursuant to section 4-183. 2885
(3) The [commissioner] commission may impose a civil penalty on 2886
any licensee for a violation of any provision of this chapter or any 2887
regulation adopted under section 12-568a, as amended by this act, in an 2888
amount not to exceed two thousand five hundred dollars after a hearing 2889
held in accordance with chapter 54. 2890
(i) The [commissioner] commission may require that the books and 2891
records of any vendor or affiliate licensee be maintained in any manner 2892
which the [commissioner] commission may deem best, and that any 2893
financial or other statements based on such books and records be 2894
prepared in accordance with generally accepted accounting principles 2895 Raised Bill No. 5190
LCO No. 1555 92 of 103
in such form as the [commissioner] commission shall prescribe. The 2896
[commissioner or a designee] commission may visit, investigate and 2897
place expert accountants and such other persons as deemed necessary 2898
in the offices or places of business of any such licensee for the purpose 2899
of satisfying [himself or herself] the commission that such licensee is in 2900
compliance with the commission's regulations. [of the department.] 2901
(j) For the purposes of this section, (1) "business organization" means 2902
a partnership, incorporated or unincorporated association, firm, 2903
corporation, trust or other form of business or legal entity; (2) "control" 2904
means the power to exercise authority over or direct the management 2905
and policies of a licensee; and (3) "person" means any individual. 2906
(k) The [Commissioner of Consumer Protection] commission may 2907
adopt such regulations, in accordance with chapter 54, as are necessary 2908
to implement the provisions of this section. 2909
Sec. 66. Subsection (b) of section 17a-713 of the general statutes is 2910
repealed and the following is substituted in lieu thereof (Effective January 2911
1, 2021): 2912
(b) The program established by subsection (a) of this section shall be 2913
funded by: [imposition of:] (1) [A] Imposition of a fee of one hundred 2914
thirty-five dollars on each association license, for each performance of 2915
jai alai or dog racing conducted under the provisions of chapter 226, 2916
provided no such licensee shall contribute more than forty-five 2917
thousand dollars in any one year; (2) imposition of a fee of twenty-five 2918
dollars for each teletheater performance on each operator of a teletheater 2919
facility; [and] (3) the amount received from the Connecticut Lottery 2920
Corporation pursuant to section 12-818; and (4) a transfer of two per cent 2921
of the revenue the state obtains from any form of gaming newly enacted 2922
or authorized in the state on or after January 1, 2021. The [Commissioner 2923
of Consumer Protection] Commission on Gaming shall collect the fee 2924
from each association licensee or such operator on a monthly basis. The 2925
receipts shall be deposited in the General Fund and credited to a 2926
separate, nonlapsing chronic gamblers treatment and rehabilitation 2927 Raised Bill No. 5190
LCO No. 1555 93 of 103
account which shall be established by the Comptroller. All moneys in 2928
the account are deemed to be appropriated and shall be expended for 2929
the purposes established in subsection (a) of this section. 2930
Sec. 67. Section 21a-1 of the general statutes is repealed and the 2931
following is substituted in lieu thereof (Effective January 1, 2021): 2932
(a) There shall be a Department of Consumer Protection which shall 2933
be under the direction and supervision of a Commissioner of Consumer 2934
Protection, who shall be appointed by the Governor in accordance with 2935
the provisions of sections 4-5 to 4-8, inclusive. 2936
(b) The Department of Consumer Protection shall constitute a 2937
successor agency, in accordance with the provisions of sections 4-38d 2938
and 4-39, to the Department of Public Safety with respect to all 2939
functions, powers and duties of the Department of Public Safety under 2940
chapter 532. Where any order or regulation of said departments conflict, 2941
the Commissioner of Consumer Protection may implement policies and 2942
procedures consistent with the provisions of chapter 532 while in the 2943
process of adopting the policy or procedure in regulation form, 2944
provided notice of intention to adopt regulations is printed in the 2945
Connecticut Law Journal within twenty days of implementation. The 2946
policy or procedure shall be valid until the time final regulations are 2947
effective. 2948
[(c) The Department of Consumer Protection shall constitute a 2949
successor agency to the Division of Special Revenue in accordance with 2950
the provisions of sections 4-38d and 4-39. Where any order or regulation 2951
of said division and department conflict, the Commissioner of 2952
Consumer Protection may implement policies and procedures 2953
consistent with chapters 98, 226, 438a, 529, 545, 557 and 946, while in the 2954
process of adopting the policy or procedure in regulation form, 2955
provided notice of intention to adopt regulations is printed in the 2956
Connecticut Law Journal within twenty days of implementation. Any 2957
such policy or procedure shall be valid until the time final regulations 2958
are effective. 2959 Raised Bill No. 5190
LCO No. 1555 94 of 103
(d) The Department of Consumer Protection shall constitute a 2960
successor agency to the Gaming Policy Board in accordance with the 2961
provisions of sections 4-38d and 4-39. Where any order or regulation of 2962
said board and department conflict, the Commissioner of Consumer 2963
Protection may implement policies and procedures consistent with 2964
chapters 98, 226 and 545 while in the process of adopting the policy or 2965
procedure in regulation form, provided notice of intention to adopt 2966
regulations is printed in the Connecticut Law Journal within twenty 2967
days of implementation. Any such policy or procedure shall be valid 2968
until the time final regulations are effective.] 2969
Sec. 68. Section 22-410 of the general statutes is repealed and the 2970
following is substituted in lieu thereof (Effective January 1, 2021): 2971
The Department of Agriculture and the [Department of Consumer 2972
Protection] Commission on Gaming, within the limitations of funds 2973
available, may offer cash awards to the breeders of Connecticut-bred 2974
horses which officially finish in first place in horse races conducted in 2975
this state where pari-mutuel betting is permitted and to those which 2976
finish first, second or third in horse races where pari-mutuel betting is 2977
permitted and the total purse is twenty thousand dollars or more, and 2978
to owners at the time of service of the stallions which sired such horses. 2979
Such awards shall be paid from the Connecticut Breeders' Fund to be 2980
administered by the [departments] department and commission. Said 2981
fund shall consist of revenues derived from pari-mutuel betting in such 2982
races in the state, both on and off-track, consisting of twenty-five per 2983
cent of the tax derived from the breakage of the state's share of the tax 2984
derived from such races, pursuant to subdivision (2) of subsection (d) of 2985
section 12-575, as amended by this act, with a limit set for the fund not 2986
to exceed fifty thousand dollars in any fiscal year. 2987
Sec. 69. Section 22-412 of the general statutes is repealed and the 2988
following is substituted in lieu thereof (Effective January 1, 2021): 2989
The Department of Agriculture and the [Department of Consumer 2990
Protection] Commission on Gaming shall use part of said fund for 2991 Raised Bill No. 5190
LCO No. 1555 95 of 103
programs to promote the equine industry in the state of Connecticut, 2992
such as equine activities, facilities and research. The Department of 2993
Agriculture and the [Department of Consumer Protection] Commission 2994
on Gaming may adopt regulations, in accordance with the provisions of 2995
chapter 54, to carry out the purposes of this section and sections 22-410, 2996
as amended by this act, and 22-411. 2997
Sec. 70. Section 29-7c of the general statutes is repealed and the 2998
following is substituted in lieu thereof (Effective January 1, 2021): 2999
There is established a unit in the Division of State Police within the 3000
Department of Emergency Services and Public Protection to be known 3001
as the legalized gambling investigative unit. The unit, in conjunction 3002
with the special [policemen] police officers in the [Department of 3003
Consumer Protection] Commission on Gaming, shall be responsible for 3004
(1) the criminal enforcement of the provisions of sections 7-169 to 7-186, 3005
inclusive, as amended by this act, and chapters 226, 226b and 229a, as 3006
amended by this act, and (2) the investigation, detection of and 3007
assistance in the prosecution of any criminal matter or alleged violation 3008
of criminal law with respect to legalized gambling, provided the 3009
legalized gambling investigative unit shall be the primary criminal 3010
enforcement agency. Nothing in this section shall limit the powers 3011
granted to persons appointed to act as special [policemen] police officers 3012
in accordance with the provisions of section 29-18c, as amended by this 3013
act. 3014
Sec. 71. Section 29-18c of the general statutes is repealed and the 3015
following is substituted in lieu thereof (Effective January 1, 2021): 3016
The Commissioner of Emergency Services and Public Protection may 3017
appoint not more than four persons employed as investigators in the 3018
security unit of the [Department of Consumer Protection] Commission 3019
on Gaming, upon the nomination of the [Commissioner of Consumer 3020
Protection] commission, to act as special [policemen] police officers in 3021
said unit. Such appointees shall serve at the pleasure of the 3022
Commissioner of Emergency Services and Public Protection. During 3023 Raised Bill No. 5190
LCO No. 1555 96 of 103
such tenure, they shall have all the powers conferred on state 3024
[policemen] police officers while investigating or making arrests for any 3025
offense arising from the operation of any off-track betting system or the 3026
conduct of any lottery game. Such special [policemen] police officers 3027
shall be certified under the provisions of sections 7-294a to 7-294e, 3028
inclusive. 3029
Sec. 72. Subsection (a) of section 30-20 of the general statutes is 3030
repealed and the following is substituted in lieu thereof (Effective January 3031
1, 2021): 3032
(a) A package store permit shall allow the retail sale of alcoholic 3033
liquor not to be consumed on the premises, such sales to be made only 3034
in sealed bottles or other containers. The holder of a package store 3035
permit may, in accordance with regulations adopted by the Department 3036
of Consumer Protection pursuant to the provisions of chapter 54, offer 3037
free samples of alcoholic liquor for tasting on the premises, conduct fee-3038
based wine education and tasting classes and demonstrations and 3039
conduct tastings or demonstrations provided by a permittee or backer 3040
of a package store for a nominal charge to charitable nonprofit 3041
organizations. Any offering, tasting, wine education and tasting class or 3042
demonstration held on permit premises shall be conducted only during 3043
the hours a package store is permitted to sell alcoholic liquor under 3044
section 30-91. No tasting of wine on the premises shall be offered from 3045
more than ten uncorked bottles at any one time. No store operating 3046
under a package store permit shall sell any commodity other than 3047
alcoholic liquor except that, notwithstanding any other provision of law, 3048
such store may sell (1) cigarettes and cigars, (2) publications, (3) bar 3049
utensils, which shall include, but need not be limited to, corkscrews, 3050
beverage strainers, stirrers or other similar items used to consume or 3051
related to the consumption of alcoholic liquor, (4) gift packages of 3052
alcoholic liquor shipped into the state by a manufacturer or out-of-state 3053
shipper, which may include a nonalcoholic item in the gift package that 3054
may be any item, except food or tobacco products, provided the dollar 3055
value of the nonalcoholic items does not exceed the dollar value of the 3056
alcoholic items of the package, (5) complementary fresh fruits used in 3057 Raised Bill No. 5190
LCO No. 1555 97 of 103
the preparation of mixed alcoholic beverages, (6) cheese or crackers, or 3058
both, (7) olives, (8) nonalcoholic beverages, (9) concentrates used in the 3059
preparation of mixed alcoholic beverages, (10) beer and wine-making 3060
kits and products related to beer and wine-making kits, (11) ice in any 3061
form, (12) articles of clothing imprinted with advertising related to the 3062
alcoholic liquor industry, (13) gift baskets or other containers of 3063
alcoholic liquor, (14) multiple packages of alcoholic liquors, as defined 3064
in subdivision (3) of section 30-1, provided in all such cases the 3065
minimum retail selling price for such alcoholic liquor shall apply, (15) 3066
lottery tickets authorized by the [Department of Consumer Protection] 3067
Commission on Gaming, if licensed as an agent to sell such tickets by 3068
said department, and (16) gift baskets containing only containers of 3069
alcoholic liquor and commodities authorized for sale under 3070
subdivisions (1) to (15), inclusive, of this subsection. A package store 3071
permit shall also allow the taking and transmitting of orders for delivery 3072
of such merchandise in other states. Notwithstanding any other 3073
provision of law, a package store permit shall allow the participation in 3074
any lottery ticket promotion or giveaway sponsored by the [Department 3075
of Consumer Protection] Commission on Gaming. The annual fee for a 3076
package store permit shall be five hundred thirty-five dollars. 3077
Sec. 73. Subsection (e) of section 30-22a of the 2020 supplement to the 3078
general statutes, as amended by section 22 of public act 19-24, is 3079
repealed and the following is substituted in lieu thereof (Effective January 3080
1, 2021): 3081
(e) For purposes of compliance with this section, "cafe" shall include 3082
all of the land and buildings in which the principal business conducted 3083
is racing or jai alai exhibitions, with pari-mutuel betting licensed by the 3084
[Department of Consumer Protection] Commission on Gaming. 3085
Sec. 74. Subdivision (1) of subsection (b) of section 30-39 of the general 3086
statutes is repealed and the following is substituted in lieu thereof 3087
(Effective January 1, 2021): 3088
(b) (1) Any person desiring a liquor permit or a renewal of such a 3089 Raised Bill No. 5190
LCO No. 1555 98 of 103
permit shall make a sworn application therefor to the Department of 3090
Consumer Protection upon forms to be furnished by the department, 3091
showing the name and address of the applicant and of the applicant's 3092
backer, if any, the location of the club or place of business which is to be 3093
operated under such permit and a financial statement setting forth all 3094
elements and details of any business transactions connected with the 3095
application. Such application shall include a detailed description of the 3096
type of live entertainment that is to be provided. A club or place of 3097
business shall be exempt from providing such detailed description if the 3098
club or place of business (A) was issued a liquor permit prior to October 3099
1, 1993, and (B) has not altered the type of entertainment provided. The 3100
application shall also indicate any crimes of which the applicant or the 3101
applicant's backer may have been convicted. Applicants shall submit 3102
documents sufficient to establish that state and local building, fire and 3103
zoning requirements and local ordinances concerning hours and days 3104
of sale will be met, except that local building and zoning requirements 3105
and local ordinances concerning hours and days of sale shall not apply 3106
to any class of airport permit. The State Fire Marshal or the marshal's 3107
certified designee shall be responsible for approving compliance with 3108
the State Fire Code at Bradley International Airport. Any person 3109
desiring a permit provided for in section 30-33b, as amended by this act, 3110
shall file a copy of such person's license with such application if such 3111
license was issued by the [Department of Consumer Protection] 3112
Commission on Gaming. The department may, at its discretion, conduct 3113
an investigation to determine whether a permit shall be issued to an 3114
applicant. 3115
Sec. 75. Section 30-59a of the general statutes is repealed and the 3116
following is substituted in lieu thereof (Effective January 1, 2021): 3117
(a) The Department of Consumer Protection may suspend any permit 3118
issued under this chapter if the permittee has had a license suspended 3119
or revoked by the department until such license has been restored to 3120
such person. 3121
(b) The department may, upon notice from the Commission on 3122 Raised Bill No. 5190
LCO No. 1555 99 of 103
Gaming of the name and address of any person who has had a license 3123
suspended or revoked by the commission, suspend any permit issued 3124
under this chapter until such license has been restored to such person. 3125
The department shall notify the commission of the name and address of 3126
any permittee whose permit has been suspended or revoked. 3127
Sec. 76. Subsection (c) of section 31-51y of the general statutes is 3128
repealed and the following is substituted in lieu thereof (Effective January 3129
1, 2021): 3130
(c) Nothing in sections 31-51t to 31-51aa, inclusive, as amended by 3131
this act, shall restrict or prevent a urinalysis drug test program 3132
conducted under the supervision of the [Department of Consumer 3133
Protection] Commission on Gaming relative to jai alai players, jai alai 3134
court judges, jockeys, harness drivers or stewards participating in 3135
activities upon which pari-mutuel wagering is authorized under 3136
chapter 226. 3137
Sec. 77. Section 53-278g of the general statutes is repealed and the 3138
following is substituted in lieu thereof (Effective January 1, 2021): 3139
(a) Nothing in sections 53-278a to 53-278f, inclusive, shall be 3140
construed to prohibit the publication of an advertisement of, or the 3141
operation of, or participation in, a state lottery, pari-mutuel betting at 3142
race tracks licensed by the state, off-track betting conducted by the state 3143
or a licensee authorized to operate the off-track betting system, 3144
authorized games at a casino gaming facility, a promotional drawing for 3145
a prize or prizes, conducted for advertising purposes by any person, 3146
firm or corporation other than a retail grocer or retail grocery chain, 3147
wherein members of the general public may participate without making 3148
any purchase or otherwise paying or risking credit, money, or any other 3149
tangible thing of value or a sweepstakes conducted pursuant to sections 3150
42-295 to 42-301, inclusive. 3151
(b) The Mashantucket Pequot tribe and the Mohegan Tribe of Indians 3152
of Connecticut, or their agents, may use and possess at any location 3153
within the state, solely for the purpose of training individuals in skills 3154 Raised Bill No. 5190
LCO No. 1555 100 of 103
required for employment by the tribe or testing a gambling device, any 3155
gambling device which the tribes are authorized to utilize on their 3156
reservations pursuant to the federal Indian Gaming Regulatory Act; 3157
provided no money or other thing of value shall be paid to any person 3158
as a result of the operation of such gambling device in the course of such 3159
training or testing at locations outside of the reservation of the tribe. Any 3160
person receiving such training or testing such device may use any such 3161
device in the course of such training or testing. Whenever either of said 3162
tribes intends to use and possess at any location within the state any 3163
such gambling device for the purpose of testing such device, the tribe 3164
shall give prior notice of such testing to the [Department of Consumer 3165
Protection] Commission on Gaming. 3166
(c) Any casino gaming facility, or its agents, may use and possess at 3167
any location within the state, solely for the purpose of training 3168
individuals in skills required for employment by the casino gaming 3169
facility or testing a gambling device, any gambling device which the 3170
casino gaming facility may use for conducting authorized games at the 3171
casino gaming facility, provided no money or other thing of value shall 3172
be paid to any person as a result of the operation of such gambling 3173
device in the course of such training or testing at locations outside of the 3174
casino gaming facility. Any person receiving such training or testing 3175
such device may use any such device in the course of such training or 3176
testing. Whenever a casino gaming facility intends to use and possess at 3177
any location within the state any such gambling device for the purpose 3178
of testing such device, the casino gambling facility shall give prior notice 3179
of such testing to the [Department of Consumer Protection] Commission 3180
on Gaming. 3181
Sec. 78. Sections 12-570b and 21a-1b of the general statutes are 3182
repealed. (Effective January 1, 2021) 3183
This act shall take effect as follows and shall amend the following
sections:
Section 1 January 1, 2021 New section
Sec. 2 January 1, 2021 4-5 Raised Bill No. 5190
LCO No. 1555 101 of 103
Sec. 3 July 1, 2022 4-5
Sec. 4 January 1, 2021 4-38c
Sec. 5 July 1, 2022 4-38c
Sec. 6 January 1, 2021 7-169d
Sec. 7 January 1, 2021 7-169h
Sec. 8 January 1, 2021 7-169i
Sec. 9 January 1, 2021 7-178
Sec. 10 January 1, 2021 12-3a
Sec. 11 January 1, 2021 12-557b
Sec. 12 January 1, 2021 12-559
Sec. 13 January 1, 2021 12-560
Sec. 14 January 1, 2021 12-561
Sec. 15 January 1, 2021 12-562
Sec. 16 January 1, 2021 12-563
Sec. 17 January 1, 2021 12-563a
Sec. 18 January 1, 2021 12-564
Sec. 19 January 1, 2021 12-564a
Sec. 20 January 1, 2021 12-565
Sec. 21 January 1, 2021 12-565a
Sec. 22 January 1, 2021 12-566
Sec. 23 January 1, 2021 12-568a
Sec. 24 January 1, 2021 12-569
Sec. 25 January 1, 2021 12-571
Sec. 26 January 1, 2021 12-571a
Sec. 27 January 1, 2021 12-572
Sec. 28 January 1, 2021 12-573
Sec. 29 January 1, 2021 12-573a
Sec. 30 January 1, 2021 12-574
Sec. 31 January 1, 2021 12-574a
Sec. 32 January 1, 2021 12-574c
Sec. 33 January 1, 2021 12-574d
Sec. 34 January 1, 2021 12-575
Sec. 35 January 1, 2021 12-575c
Sec. 36 January 1, 2021 12-576
Sec. 37 January 1, 2021 12-577
Sec. 38 January 1, 2021 12-578
Sec. 39 January 1, 2021 12-578a
Sec. 40 January 1, 2021 12-578b
Sec. 41 January 1, 2021 12-578c
Sec. 42 January 1, 2021 12-578d
Sec. 43 January 1, 2021 12-578e Raised Bill No. 5190
LCO No. 1555 102 of 103
Sec. 44 January 1, 2021 12-578f
Sec. 45 January 1, 2021 12-578aa
Sec. 46 January 1, 2021 12-579
Sec. 47 January 1, 2021 12-584
Sec. 48 January 1, 2021 12-585
Sec. 49 January 1, 2021 12-586f
Sec. 50 January 1, 2021 12-586g
Sec. 51 January 1, 2021 12-802
Sec. 52 January 1, 2021 12-802a
Sec. 53 January 1, 2021 12-804
Sec. 54 January 1, 2021 12-805
Sec. 55 January 1, 2021 12-806
Sec. 56 January 1, 2021 12-806a
Sec. 57 January 1, 2021 12-806b
Sec. 58 January 1, 2021 12-807
Sec. 59 January 1, 2021 12-808
Sec. 60 January 1, 2021 12-809
Sec. 61 January 1, 2021 12-811
Sec. 62 January 1, 2021 12-812
Sec. 63 January 1, 2021 12-813(a)
Sec. 64 January 1, 2021 12-815(a)
Sec. 65 January 1, 2021 12-815a
Sec. 66 January 1, 2021 17a-713(b)
Sec. 67 January 1, 2021 21a-1
Sec. 68 January 1, 2021 22-410
Sec. 69 January 1, 2021 22-412
Sec. 70 January 1, 2021 29-7c
Sec. 71 January 1, 2021 29-18c
Sec. 72 January 1, 2021 30-20(a)
Sec. 73 January 1, 2021 30-22a(e)
Sec. 74 January 1, 2021 30-39(b)(1)
Sec. 75 January 1, 2021 30-59a
Sec. 76 January 1, 2021 31-51y(c)
Sec. 77 January 1, 2021 53-278g
Sec. 78 January 1, 2021 Repealer section
Statement of Purpose:
To establish a Commission on Gaming and transfer oversight of
gambling in this state from the Department of Consumer Protection to
the commission. Raised Bill No. 5190
LCO No. 1555 103 of 103
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]