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General Assembly Raised Bill No. 5320
February Session, 2020
LCO No. 2114
Referred to Committee on PUBLIC SAFETY AND SECURITY
Introduced by:
(PS)
AN ACT CONCERNING OP ERATION OF THE LOTTE RY BY THE
DEPARTMENT OF CONSUM ER PROTECTION.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective January 1, 2021) (a) The Department of 1
Consumer Protection shall constitute a successor agency, in accordance 2
with the provisions of sections 4-38d and 4-39 of the general statutes, to 3
the Connecticut Lottery Corporation, as if the corporation were an 4
agency, with respect to all functions, powers and duties of the 5
corporation transferred to the department under this section, 6
subdivision (12) of section 1-79, sections 1-120, 1-121 and 1-125, 7
subsection (d) of section 4-66k, subsection (f) of section 5-263b, sections 8
10-183vv, 12-568a and 12-569, subsection (g) of section 12-707, 9
subsection (b) of section 12-711, sections 12-801, 12-803, 12-806, 12-806c, 10
12-806d, 12-807, 12-808, 12-810 and 12-812, subsection (a) of section 12-11
813, sections 12-814, 12-815a, 12-817, 12-818, 12-829, sections 12-831 to 12
12-834, inclusive, subsection (b) of section 17a-713, subsection (c) of 13
section 52-362d and section 52-367c of the general statutes, as amended 14
by this act. 15 Raised Bill No. 5320
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(b) (1) The department shall transfer employee classifications of the 16
corporation to classifications in state service. The department shall 17
recognize collective bargaining agreements existing between 18
corporation employees and the corporation on December 31, 2020. 19
(2) The lottery fund, as defined in subparagraph (A) of subdivision 20
(6) of section 12-801 of the general statutes, as amended by this act, of 21
the Connecticut Lottery Corporation, and all moneys contained in it, on 22
December 31, 2020, shall become the lottery fund, as defined in 23
subparagraph (B) of subdivision (6) of section 12-801 of the general 24
statutes, as amended by this act, of the department on January 1, 2021. 25
(c) The Legislative Commissioners' Office shall, in codifying the 26
provisions of this section, subdivision (12) of section 1-79, sections 1-120, 27
1-121 and 1-125, subsection (d) of section 4-66k, subsection (f) of section 28
5-263b, sections 10-183vv, 12-568a and 12-569, subsection (g) of section 29
12-707, subsection (b) of section 12-711, sections 12-801, 12-803, 12-806, 30
12-806c, 12-806d, 12-807, 12-808, 12-810 and 12-812, subsection (a) of 31
section 12-813, sections 12-814, 12-815a, 12-817, 12-818, 12-829, sections 32
12-831 to 12-834, inclusive, subsection (b) of section 17a-713, subsection 33
(c) of section 52-362d, and section 52-367c of the general statutes, as 34
amended by this act, make such technical, grammatical and punctuation 35
changes as are necessary to carry out the purposes of this section. 36
Sec. 2. Section 12-801 of the 2020 supplement to the general statutes 37
is repealed and the following is substituted in lieu thereof (Effective 38
January 1, 2021): 39
As used in section 12-563a and sections [12-800] 12-801 to 12-818, 40
inclusive, as amended by this act, the following terms shall have the 41
following meanings unless the context clearly indicates another 42
meaning: 43
[(1) "Board" or "board of directors" means the board of directors of 44
the corporation; 45
(2) "Corporation" means the Connecticut Lottery Corporation as 46 Raised Bill No. 5320
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created under section 12-802;] 47
(1) "Commissioner" means the Commissioner of Consumer 48
Protection; 49
(2) "Department" means the Department of Consumer Protection; 50
(3) "Division" means the former Division of Special Revenue in the 51
Department of Revenue Services; 52
(4) "Lottery" means (A) the Connecticut state lottery conducted prior 53
to the transfer authorized under section 12-808, as amended by this act, 54
by the Division of Special Revenue, (B) after such transfer and prior to 55
January 1, 2021, the Connecticut state lottery conducted by the 56
[corporation pursuant to sections 12-563a and 12-800 to 12-818, 57
inclusive, (C)] Connecticut Lottery Corporation, (C) the Connecticut 58
state lottery conducted by the department on and after January 1, 2021, 59
(D) the state lottery referred to in subsection (a) of section 53-278g, and 60
[(D)] (E) keno conducted by the [corporation] department pursuant to 61
section 12-806c, as amended by this act; 62
(5) "Keno" means a lottery game in which a subset of numbers are 63
drawn from a larger field of numbers by a central computer system 64
using an approved random number generator, wheel system device or 65
other drawing device. "Keno" does not include a game operated on a 66
video facsimile machine; 67
(6) "Lottery fund" means (A) prior to January 1, 2021, a fund or funds 68
established by, and under the management and control of, the 69
[corporation] Connecticut Lottery Corporation, into which all lottery 70
revenues of the corporation are deposited, from which all payments and 71
expenses of the corporation are paid and from which transfers to the 72
General Fund or the Connecticut Teachers' Retirement Fund Bonds 73
Special Capital Reserve Fund, established in section 10-183vv, as 74
amended by this act, are made pursuant to section 12-812, as amended 75
by this act, and (B) on and after January 1, 2021, the fund or funds 76
described in subparagraph (A) of this subdivision transferred pursuant 77 Raised Bill No. 5320
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to section 1 of this act to the department on termination of the 78
corporation under section 12-803, as amended by this act, which are 79
under the management and control of the department, (i) into which all 80
lottery revenues of the department are deposited, (ii) from which all 81
payments and expenses of the department related to the operation of 82
the lottery are paid, and (iii) from which transfers to the General Fund 83
or the Connecticut Teachers' Retirement Fund Bonds Special Capital 84
Reserve Fund, established in section 10-183vv, as amended by this act, 85
are made pursuant to section 12-812, as amended by this act; and 86
(7) "Operating revenue" means total revenue received from lottery 87
sales less all cancelled sales and amounts paid as prizes but before 88
payment or provision for payment of any other expenses. 89
Sec. 3. Section 12-803 of the general statutes is repealed and the 90
following is substituted in lieu thereof (Effective January 1, 2021): 91
[The corporation shall have perpetual succession. Such succession 92
shall continue until the existence of the corporation is terminated by 93
law] The Connecticut Lottery Corporation shall terminate and cease to 94
exist and all of its functions are transferred to the department on January 95
1, 2021, provided no such termination shall affect any outstanding 96
contractual obligation of the corporation and the state shall succeed to 97
the obligations of the corporation under any such contract. Upon 98
termination of the corporation, its rights and properties shall pass to and 99
be vested in the state. 100
Sec. 4. Section 12-806 of the 2020 supplement to the general statutes 101
is repealed and the following is substituted in lieu thereof (Effective 102
January 1, 2021): 103
(a) The [purposes of the corporation shall be to] department shall: (1) 104
Operate and manage the lottery in an entrepreneurial and business-like 105
manner; [free from the budgetary and other constraints that affect state 106
agencies;] (2) provide continuing and increased revenue to the people 107
of the state through the lottery by being responsive to market forces; 108
[and acting generally as a corporation engaged in entrepreneurial 109 Raised Bill No. 5320
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pursuits;] (3) pay to the trustee of the Connecticut Teachers' Retirement 110
Fund Bonds Special Capital Reserve Fund, established in section 10-111
183vv, as amended by this act, the amounts, if any, required pursuant 112
to subsection (c) of section 12-812, as amended by this act; and (4) ensure 113
that the lottery continues to be operated with integrity and for the public 114
good. 115
(b) The [corporation] department shall have the following powers: 116
(1) To [receive as transferee from the state of Connecticut all of the 117
tangible and intangible assets constituting the lottery including the 118
exclusive right to] operate the lottery as the exclusive lottery of the state; 119
[and, subject to subsection (b) of section 12-808, to assume and discharge 120
all of the agreements, covenants and obligations of the Department of 121
Consumer Protection entered into which constitute a part of the 122
operation and management of the lottery;] 123
(2) To operate and manage the lottery consistent with the provisions 124
of sections [1-120, 1-121, 1-125,] 12-563, 12-563a, 12-564, 12-566, 12-568a, 125
as amended by this act, and 12-569, as amended by this act, subsection 126
(c) of section 12-574, as amended by this act, and sections [12-800] 12-127
801 to 12-818, inclusive, as amended by this act, and as specifically 128
provided in section 12-812, as amended by this act; 129
[(3) To have perpetual succession as a body corporate and to adopt 130
bylaws, policies and procedures for the operation of its affairs and 131
conduct of its businesses;] 132
[(4)] (3) To introduce new lottery games, modify existing lottery 133
games, utilize existing and new technologies, determine distribution 134
channels for the sale of lottery tickets, introduce keno pursuant to signed 135
agreements with the Mashantucket Pequot Tribe and the Mohegan 136
Tribe of Indians of Connecticut, in accordance with section 12-806c, as 137
amended by this act, and [, to the extent specifically authorized by 138
regulations adopted by the Department of Consumer Protection 139
pursuant to chapter 54,] introduce instant ticket vending machines, 140
kiosks and automated wagering systems or machines, [with all such 141 Raised Bill No. 5320
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rights being subject to regulatory oversight by the Department of 142
Consumer Protection,] except that the [corporation] department shall 143
not offer any interactive on-line lottery games, including on-line video 144
lottery games for promotional purposes; 145
[(5) To establish an annual budget of revenues and expenditures, 146
along with reasonable reserves for working capital, capital 147
expenditures, debt retirement and other anticipated expenditures, in a 148
manner and at levels considered by the board of directors as appropriate 149
and prudent;] 150
[(6)] (4) To adopt [such administrative and operating procedures 151
which the board of directors] regulations, in accordance with chapter 54, 152
to implement the provisions of section 12-801 to 12-818, inclusive, as 153
amended by this act, as the commissioner deems appropriate; 154
[(7)] (5) To enter into agreements with one or more states or territories 155
of the United States for the promotion and operation of joint lottery 156
games and to continue to participate in any joint lottery game in which 157
the [corporation participates] Connecticut Lottery Corporation 158
participated on July 1, 2003, regardless of whether any government-159
authorized lottery operated outside of the United States participates in 160
such game; 161
[(8) Subject to the provisions of section 12-815, to] (6) To enter into 162
agreements with vendors with respect to the operation and 163
management of the lottery, including operation of lottery terminals, 164
management services, printing of lottery tickets, management expertise, 165
marketing expertise, advertising or such other goods or services as the 166
[board of directors] commissioner deems necessary and appropriate; 167
[(9)] (7) To purchase or lease operating equipment, including, but not 168
limited to, computer gaming and automated wagering systems and to 169
employ agents or employees to operate such systems; 170
[(10)] (8) To retain unclaimed prize funds as additional revenue for 171
the state, or to use unclaimed prize funds to increase sales, or to return 172 Raised Bill No. 5320
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to participants unclaimed prize funds in a manner designed to increase 173
sales; 174
[(11)] (9) To establish prize reserve accounts as the [board of 175
directors] commissioner deems appropriate; 176
[(12)] (10) To pay lottery prizes as awarded under section 12-812, as 177
amended by this act, to purchase annuities to fund such prizes, and to 178
assure that all annuities from which payments to winners of lottery 179
prizes are made are invested in instruments issued by agencies of the 180
United States government and backed by the full faith and credit of the 181
United States, or are issued by insurance companies licensed to do 182
business in the state, provided the issuer has been determined by the 183
[Department of Consumer Protection] commissioner to be financially 184
stable and meets the minimum investment rating as determined by the 185
[department] commissioner; 186
[(13) To pay the Office of Policy and Management to reimburse the 187
Department of Consumer Protection for the reasonable and necessary 188
costs arising from the department's regulatory oversight of the 189
corporation, in accordance with the assessment made pursuant to 190
section 12-806b, including costs arising directly or indirectly from the 191
licensing of lottery agents, performance of state police background 192
investigations, and the implementation of subsection (b) of section 12-193
562 and sections 12-563a, 12-568a, 12-569, 12-570, 12-570a and 12-800 to 194
12-818, inclusive; 195
(14) In the event that the operation or management of the corporation 196
becomes subject to the federal gaming occupation tax, to pay such tax 197
on behalf of lottery sales agents and to assist agents subject thereto;] 198
[(15)] (11) To determine the commissions payable to lottery sales 199
agents, provided any agent's commission shall not average less than 200
four per cent of such agent's lottery sales; 201
[(16) To invest in, acquire, lease, purchase, own, manage, hold and 202
dispose of real property and lease, convey or deal in or enter into 203 Raised Bill No. 5320
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agreements with respect to such property on any terms necessary or 204
incidental to carrying out the purposes of sections 12-563a and 12-800 to 205
12-818, inclusive, provided such transactions shall not be subject to 206
approval, review or regulation pursuant to title 4b or any other statute 207
by any state agency, except that real property transactions shall be 208
subject to review by the State Properties Review Board; 209
(17) To borrow money for the purpose of obtaining working capital;] 210
[(18)] (12) To hold patents, copyrights, trademarks, marketing rights, 211
licenses or any other evidence of protection or exclusivity issued under 212
the laws of the United States or any state; 213
[(19)] (13) To employ such assistants, agents and other employees as 214
may be necessary or desirable to carry out its purposes in accordance 215
with sections 12-563a and 12-800 to 12-818, inclusive, as amended by this 216
act, to fix their compensation and [, subject to the provisions of 217
subsections (e) and (f) of section 12-802,] establish all necessary and 218
appropriate personnel practices and policies; to engage consultants, 219
accountants, attorneys and financial and other independent 220
professionals as may be necessary or desirable to assist the [corporation] 221
department in performing its purposes in accordance with sections 12-222
563a and [12-800] 12-801 to 12-818, inclusive, as amended by this act; 223
[(20)] (14) To make and enter into all contracts and agreements 224
necessary or incidental to the performance of its duties and the 225
execution of its powers under sections 12-563a, as amended by this act, 226
and [12-800] 12-801 to 12-818, inclusive, as amended by this act; 227
[(21) In its own name, to sue and be sued, plead and be impleaded, 228
adopt a seal and alter the same at pleasure; 229
(22) Subject to the approval of the board and to the requirement to 230
remit excess lottery funds to the General Fund as set forth in section 12-231
812, to invest any funds not needed for immediate use or disbursement, 232
including any funds held in approved reserve accounts, in investments 233
permitted by sections 3-20 and 3-27a for the proceeds of state bonds; 234 Raised Bill No. 5320
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(23) To procure insurance against any loss in connection with its 235
property and other assets in such amounts and from such insurers as it 236
deems desirable; 237
(24) To the extent permitted under any contract with other persons to 238
which the corporation is a party, to consent to any termination, 239
modification, forgiveness or other change of any term of any contractual 240
right, payment, royalty, contract or agreement of any kind; 241
(25) To acquire, lease, purchase, own, manage, hold and dispose of 242
personal property, and lease, convey or deal in or enter into agreements 243
with respect to such property on any terms necessary or incidental to 244
the carrying out of these purposes; 245
(26) To account for and audit funds of the corporation; 246
(27) To pay or provide for payment from operating revenues all 247
expenses, costs and obligations incurred by the corporation in the 248
exercise of the powers of the corporation under sections 12-563a and 12-249
800 to 12-818, inclusive;] and 250
[(28)] (15) To exercise any powers necessary to carry out the purposes 251
of sections 12-563a and [12-800] 12-801 to 12-818, inclusive, as amended 252
by this act. 253
Sec. 5. Section 12-806c of the general statutes is repealed and the 254
following is substituted in lieu thereof (Effective January 1, 2021): 255
Notwithstanding the provisions of section 3-6c, the Secretary of the 256
Office of Policy and Management, on behalf of the state of Connecticut, 257
may enter into separate agreements with the Mashantucket Pequot 258
Tribe and the Mohegan Tribe of Indians of Connecticut concerning the 259
operation of keno by the Connecticut Lottery Corporation prior to 260
January 1, 2021, and the department on and after January 1, 2021, in the 261
state of Connecticut. Any such agreement shall provide that the state of 262
Connecticut shall distribute to each tribe a sum not to exceed a twelve 263
and one-half per cent share of the gross operating revenue received by 264 Raised Bill No. 5320
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the state from the operation of keno. The corporation or department, as 265
the case may be, may not operate keno until such separate agreements 266
are effective. For the purposes of this section, "gross operating revenues" 267
means the total amounts wagered, less amounts paid out as prizes. 268
Sec. 6. Section 12-806d of the general statutes is repealed and the 269
following is substituted in lieu thereof (Effective January 1, 2021): 270
The [Connecticut Lottery Corporation] department shall exclusively 271
operate and manage the sale of lottery games in the state of Connecticut 272
except on the reservations of the Mashantucket Pequot Tribe and the 273
Mohegan Tribe of Indians of Connecticut. 274
Sec. 7. Section 12-807 of the general statutes is repealed and the 275
following is substituted in lieu thereof (Effective January 1, 2021): 276
[(a) The corporation shall: 277
(1) Comply with all laws, rules and regulations of the United States 278
and the state of Connecticut; 279
(2) Comply with regulations, adopted by the Department of 280
Consumer Protection in accordance with chapter 54; 281
(b) The corporation shall not: 282
(1) Sell, transfer, assign, deliver, license, grant or otherwise alienate 283
any portion or aspect of the lottery or lottery operations, but may sell 284
real or personal property, provided any revenue from such sale shall be 285
remitted to the state; 286
(2) Take] 287
The department shall not take any action with respect to the 288
introduction or modification of lottery games which would cause a 289
violation of any compact or any memorandum of understanding or 290
agreement from time to time in force between the state and the 291
Mashantucket Pequot Tribal Nation or the Mohegan Tribe of Montville, 292 Raised Bill No. 5320
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Connecticut, or any future compact or agreement with a federally 293
recognized tribe. 294
Sec. 8. Section 12-808 of the general statutes is repealed and the 295
following is substituted in lieu thereof (Effective January 1, 2021): 296
[(a) As soon as practicable after July 1, 1996, and the organization of 297
the corporation, the corporation shall enter into such agreements as the 298
board shall authorize in order to effect the transfer, assignment and 299
delivery to the corporation from the state of all the tangible and 300
intangible assets constituting the lottery, including the exclusive right to 301
operate the lottery, and, subject to subsection (b) of this section, to effect 302
the assignment to and assumption by the corporation of all agreements, 303
covenants and obligations of the Department of Consumer Protection 304
and other agencies of the state relating to the operation and 305
management of the lottery. Such agreements may contain such other 306
provisions as the board deems necessary or appropriate for the 307
continued operation of the lottery by the corporation pursuant to 308
sections 12-563a and 12-800 to 12-818, inclusive. 309
(b) The state shall transfer to the corporation ownership of all 310
annuities it purchased for payment of lottery prizes and shall not be 311
liable for any lottery awards. In addition, the state shall not be liable for 312
any obligations of the lottery arising prior to the date of transfer as 313
described in subsection (a) of this section, including those arising in the 314
ordinary course of business under existing contracts specifically 315
assumed by the corporation. The Department of Consumer Protection 316
shall assign to the corporation any annuity for payment of any lottery 317
award arising on or before the date of such transfer. Unless otherwise 318
agreed to in writing with the department, the corporation shall be solely 319
responsible for the payment of all lottery prizes and the purchase of all 320
annuities to provide revenue for such payment. 321
(c) The corporation shall request and obtain all approvals, consents 322
and rulings of and from all state and federal governmental agencies 323
necessary or in order to effect the transactions contemplated by this 324 Raised Bill No. 5320
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section.] 325
On January 1, 2021, the department shall become the owner of all 326
annuities held by the Connecticut Lottery Corporation on December 31, 327
2020, for payment of lottery prizes. The corporation shall not be liable 328
for any lottery awards, or any obligations of the lottery arising prior to 329
January 1, 2021, including those arising in the ordinary course of 330
business under existing contracts specifically assumed by the 331
department. The department shall be assigned any annuity for payment 332
of any lottery award arising on or before January 1, 2021. The 333
department shall be solely responsible for the payment of all lottery 334
prizes and the purchase of all annuities to provide revenue for such 335
payment. 336
Sec. 9. Section 12-810 of the general statutes is repealed and the 337
following is substituted in lieu thereof (Effective January 1, 2021): 338
(a) The Freedom of Information Act, as defined in section 1-200, shall 339
not apply [to all actions, meetings and records of the corporation, except 340
(1) where otherwise limited by] (1) as provided in subsection [(c)] (b) of 341
this section as to new lottery games and serial numbers of unclaimed 342
lottery tickets, and (2) with respect to financial, credit and proprietary 343
information submitted by any person to the [corporation] Department 344
of Consumer Protection in connection with any proposal to provide 345
goods, services or professional advice. [to the corporation as provided 346
in section 12-815.] 347
[(b) The records of proceedings as provided in subsection (a) of 348
section 12-805 shall be subject to disclosure pursuant to the provisions 349
of subsection (a) of section 1-210.] 350
[(c)] (b) Any new lottery game and the procedures for such game, 351
until the game is publicly announced by the [corporation] department, 352
and any serial number of an unclaimed lottery ticket shall not be 353
deemed public records, as defined in section 1-200, and shall not be 354
available to the public under the provisions of section 1-210. [The 355
president shall submit a fiscal note prepared by the corporation with 356 Raised Bill No. 5320
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respect to the procedures for a new lottery game to the joint standing 357
committees of the General Assembly having cognizance of matters 358
relating to finance, revenue, bonding and public safety after approval of 359
such game by the board.] 360
Sec. 10. Section 12-812 of the 2020 supplement to the general statutes 361
is repealed and the following is substituted in lieu thereof (Effective 362
January 1, 2021): 363
(a) The [president of the corporation, subject to the direction of the 364
board,] commissioner shall conduct daily, weekly, multistate, special 365
instant or other lottery games and shall determine the number of times 366
a lottery shall be held each year, the form and price of the tickets and 367
the aggregate amount of prizes, which shall not be less than forty-five 368
per cent of the sales unless required by the terms of any agreement 369
entered into for the conduct of multistate lottery games. The proceeds 370
of the sale of tickets shall be deposited in the lottery fund [of the 371
corporation] from which prizes shall be paid, upon vouchers signed by 372
the [president] commissioner, or by either of two persons designated 373
and authorized by [him] the commissioner, in such numbers and 374
amounts as the [president] commissioner determines. The [corporation] 375
department may limit its liability in games with fixed payouts and may 376
cause a cessation of sales of tickets of certain designation when such 377
liability limit has been reached. 378
(b) The [president, subject to the direction of the board,] 379
commissioner may enter into agreements for the sale of product 380
advertising on lottery tickets, play slips and other lottery media. 381
(c) On a weekly basis, the [president] commissioner shall estimate [, 382
and certify to the State Treasurer,] that portion of the balance in the 383
lottery fund which exceeds the current needs of the [corporation] 384
department for the payment of prizes, the payment of current operating 385
expenses and funding of approved reserves of the [corporation] 386
department. The [corporation] department shall transfer the amount so 387
[certified] estimated from the lottery fund of the [corporation] 388 Raised Bill No. 5320
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department to the General Fund, [upon notification of receipt of such 389
certification by the Treasurer,] except that if the amount on deposit in 390
the Connecticut Teachers' Retirement Fund Bonds Special Capital 391
Reserve Fund, established in section 10-183vv, as amended by this act, 392
is less than the required minimum capital reserve, as defined in 393
subsection (b) of said section, the [corporation] department shall pay 394
such amount so [certified] estimated to the trustee of the fund for 395
deposit in the fund. If the [corporation] department transfers any 396
moneys to the General Fund at any time when the amount on deposit in 397
said capital reserve fund is less than the required minimum capital 398
reserve, the amount of such transfer shall be deemed appropriated from 399
the General Fund to the Connecticut Teachers' Retirement Fund Bonds 400
Special Capital Reserve Fund. 401
Sec. 11. Subsection (a) of section 12-813 of the general statutes is 402
repealed and the following is substituted in lieu thereof (Effective January 403
1, 2021): 404
(a) The [corporation] department may sell lottery tickets at any 405
location in the state determined by the [president] commissioner which, 406
in the opinion of the [president] commissioner, will best enhance lottery 407
revenues, except that no license shall be issued by the [Department of 408
Consumer Protection] department to any person to engage in business 409
exclusively as a lottery sales agent. Subject to the provisions of 410
subdivision [(15)] (11) of subsection (b) of section 12-806, as amended by 411
this act, the [president] commissioner may authorize compensation to 412
such agents in such manner and amounts and subject to such limitations 413
as [he] the commissioner may determine if [he] the commissioner finds 414
such compensation is necessary to assure adequate availability of lottery 415
tickets, provided, if such agent is a lessee of state property and [his] the 416
agent's rental fee is based upon the gross receipts of [his] the agent's 417
business conducted thereon, all receipts from the sale of such lottery 418
tickets shall be excluded from such gross receipts for rental purposes. 419
The [president] commissioner may suspend for cause any licensed 420
agent, subject to a final determination through a hearing. [provided by 421
the Department of Consumer Protection.] 422 Raised Bill No. 5320
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Sec. 12. Section 12-814 of the general statutes is repealed and the 423
following is substituted in lieu thereof (Effective January 1, 2021): 424
(a) In each advertisement intended to promote the purchase of lottery 425
tickets issued for games authorized under sections 12-563a and [12-800] 426
12-801 to 12-818, inclusive, as amended by this act, the [corporation] 427
department shall include a prominent and clear statement of the average 428
chances of winning per lottery ticket. 429
(b) The provisions of subsection (a) of this section shall apply only to 430
(1) advertisements in newspapers, magazines, brochures and on posters 431
and (2) television and radio advertisements thirty seconds or longer for 432
one game. 433
(c) [On or before October 1, 1999, the corporation shall implement a 434
code of] The department shall adopt regulations, in accordance with 435
chapter 54, to establish standards for all advertisements and other 436
activities intended to promote the purchase of lottery tickets for games 437
authorized pursuant to this chapter. The [code of] standards shall 438
include the requirement that no advertisement or promotion shall 439
denigrate the character or conduct of nonlottery players or praise the 440
character or conduct of lottery players. 441
Sec. 13. Section 12-815a of the general statutes is repealed and the 442
following is substituted in lieu thereof (Effective January 1, 2021): 443
(a) The Commissioner of Consumer Protection shall issue vendor, 444
affiliate and occupational licenses in accordance with the provisions of 445
this section. 446
(b) No person or business organization awarded a primary contract 447
by the [Connecticut Lottery Corporation] department to provide 448
facilities, components, goods or services that are necessary for and 449
directly related to the secure operation of the lottery activities of [said 450
corporation] the department shall do so unless such person or business 451
organization is issued a vendor license by the Commissioner of 452
Consumer Protection. For the purposes of this subsection, "primary 453 Raised Bill No. 5320
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contract" means a contract to provide facilities, components, goods or 454
services to [said corporation] the department by a person or business 455
organization (1) that provides any lottery game or any online wagering 456
system related facilities, components, goods or services and that 457
receives or, in the exercise of reasonable business judgment, can be 458
expected to receive more than seventy-five thousand dollars or twenty-459
five per cent of its gross annual sales from said corporation, or (2) that 460
has access to the facilities of [said corporation] the department where 461
lottery activities occur and provides services in such facilities without 462
supervision by [said corporation] the department. Each applicant for a 463
vendor license shall pay a nonrefundable application fee of two 464
hundred fifty dollars. 465
(c) No person or business organization, other than a shareholder in a 466
publicly traded corporation, may be a subcontractor for the provision of 467
facilities, components, goods or services that are necessary for and 468
directly related to the secure operation of the lottery activities of the 469
[Connecticut Lottery Corporation] department, or may exercise control 470
in or over a vendor licensee unless such person or business organization 471
is licensed as an affiliate licensee by the commissioner. Each applicant 472
for an affiliate license shall pay a nonrefundable application fee of two 473
hundred fifty dollars. 474
(d) (1) Each employee of a vendor or affiliate licensee who has access 475
to the facilities of the [Connecticut Lottery Corporation] department 476
where lottery activities occur and provides services in such facilities 477
without supervision by [said corporation] the department or performs 478
duties directly related to the lottery activities of [said corporation] the 479
department shall obtain an occupational license. 480
(2) Each officer, director, partner, trustee or owner of a business 481
organization licensed as a vendor or affiliate licensee and any 482
shareholder, executive, agent or other person connected with any 483
vendor or affiliate licensee who, in the judgment of the commissioner, 484
will exercise control in or over any such licensee shall obtain an 485
occupational license. 486 Raised Bill No. 5320
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[(3) Each employee of the Connecticut Lottery Corporation shall 487
obtain an occupational license.] 488
(e) The commissioner shall issue occupational licenses in the 489
following classes: (1) Class I for persons specified in subdivision (1) of 490
subsection (d) of this section; and (2) Class II for persons specified in 491
subdivision (2) of subsection (d) of this section. [; (3) Class III for persons 492
specified in subdivision (3) of subsection (d) of this section who, in the 493
judgment of the commissioner, will not exercise authority over or direct 494
the management and policies of the Connecticut Lottery Corporation; 495
and (4) Class IV for persons specified in subdivision (3) of subsection (d) 496
of this section who, in the judgment of the commissioner, will exercise 497
authority over or direct the management and policies of the Connecticut 498
Lottery Corporation.] Each applicant for a Class I [or III] occupational 499
license shall pay a nonrefundable application fee of twenty dollars. Each 500
applicant for a Class II [or IV] occupational license shall pay a 501
nonrefundable application fee of one hundred dollars. The 502
nonrefundable application fee shall accompany the application for each 503
such occupational license. 504
(f) In determining whether to grant a vendor, affiliate or occupational 505
license to any such person or business organization, the commissioner 506
may require an applicant to provide information as to such applicant's: 507
(1) Financial standing and credit; (2) moral character; (3) criminal record, 508
if any; (4) previous employment; (5) corporate, partnership or 509
association affiliations; (6) ownership of personal assets; and (7) such 510
other information as the commissioner deems pertinent to the issuance 511
of such license, provided the submission of such other information will 512
assure the integrity of the state lottery. The commissioner shall require 513
each applicant for a vendor, affiliate or occupational license to submit to 514
state and national criminal history records checks and may require each 515
such applicant to submit to an international criminal history records 516
check before such license is issued. The state and national criminal 517
history records checks required pursuant to this subsection shall be 518
conducted in accordance with section 29-17a. The commissioner shall 519
issue a vendor, affiliate or occupational license, as the case may be, to 520 Raised Bill No. 5320
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each applicant who satisfies the requirements of this subsection and 521
who is deemed qualified by the commissioner. The commissioner may 522
reject for good cause an application for a vendor, affiliate or 523
occupational license. 524
(g) Each vendor, affiliate or Class I or II occupational license shall be 525
effective for not more than one year from the date of issuance. [Each 526
Class III or IV occupational license shall remain in effect throughout the 527
term of employment of any such employee holding such a license. The 528
commissioner may require each employee issued a Class IV 529
occupational license to submit information as to such employee's 530
financial standing and credit annually.] Initial application for and 531
renewal of any such license shall be in such form and manner as the 532
commissioner shall prescribe. 533
(h) (1) The commissioner may suspend or revoke for good cause a 534
vendor, affiliate or occupational license after a hearing held before the 535
commissioner in accordance with chapter 54. The commissioner may 536
order summary suspension of any such license in accordance with 537
subsection (c) of section 4-182. 538
(2) Any such applicant aggrieved by the action of the commissioner 539
concerning an application for a license, or any person or business 540
organization whose license is suspended or revoked, may appeal 541
pursuant to section 4-183. 542
(3) The commissioner may impose a civil penalty on any licensee for 543
a violation of any provision of this chapter or any regulation adopted 544
under section 12-568a, as amended by this act, in an amount not to 545
exceed two thousand five hundred dollars after a hearing held in 546
accordance with chapter 54. 547
(i) The commissioner may require that the books and records of any 548
vendor or affiliate licensee be maintained in any manner which the 549
commissioner may deem best, and that any financial or other statements 550
based on such books and records be prepared in accordance with 551
generally accepted accounting principles in such form as the 552 Raised Bill No. 5320
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commissioner shall prescribe. The commissioner or a designee may 553
visit, investigate and place expert accountants and such other persons 554
as deemed necessary in the offices or places of business of any such 555
licensee for the purpose of satisfying [himself or herself] the 556
commissioner that such licensee is in compliance with the regulations of 557
the department. 558
(j) For the purposes of this section, (1) "business organization" means 559
a partnership, incorporated or unincorporated association, firm, 560
corporation, trust or other form of business or legal entity; (2) "control" 561
means the power to exercise authority over or direct the management 562
and policies of a licensee; and (3) "person" means any individual. 563
(k) The Commissioner of Consumer Protection may adopt such 564
regulations, in accordance with chapter 54, as are necessary to 565
implement the provisions of this section. 566
Sec. 14. Section 12-817 of the general statutes is repealed and the 567
following is substituted in lieu thereof (Effective January 1, 2021): 568
(a) The Superior Court shall have jurisdiction to enter judgment 569
against the [corporation] Connecticut Lottery Corporation founded 570
upon any express contract between the corporation and any person or 571
party thereto for the provision of goods, services or professional advice 572
to the corporation or the lottery. 573
(b) Any action brought under subsection (a) of this section shall be 574
brought in the superior court for the judicial district of Hartford. The 575
jurisdiction conferred upon the Superior Court by this section includes 576
any set-off, claim or demand whatsoever on the part of the corporation 577
against any plaintiff commencing an action under this section. Such 578
action shall be tried to the court without a jury. All legal defenses, except 579
governmental immunity, shall be reserved to the corporation. Any 580
action brought under this section shall be privileged in respect to 581
assignment for trial upon matters of either party. Nothing in this section 582
shall be construed to authorize any action against the state of 583
Connecticut or to abrogate any defense available to the state of 584 Raised Bill No. 5320
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Connecticut, including governmental immunity. 585
(c) This section shall apply to all actions commenced prior to January 586
1, 2021, and the department shall be substituted as a party on and after 587
January 1, 2021, pursuant to subsection (c) of section 4-38d. 588
Sec. 15. Section 12-818 of the general statutes is repealed and the 589
following is substituted in lieu thereof (Effective January 1, 2021): 590
[For each of the fiscal years ending June 30, 2010, and June 30, 2011, 591
the Connecticut Lottery Corporation shall transfer one million nine 592
hundred thousand dollars of the revenue received from the sale of 593
lottery tickets to the chronic gamblers treatment rehabilitation account 594
created pursuant to section 17a-713. For the fiscal years ending June 30, 595
2012, to June 30, 2013, inclusive, the Connecticut Lottery Corporation 596
shall transfer one million nine hundred thousand dollars of the revenue 597
received from the sale of lottery tickets to the chronic gamblers 598
treatment rehabilitation account created pursuant to section 17a-713.] 599
For the fiscal [year] years ending June 30, 2014, [and each fiscal year 600
thereafter,] to June 30, 2020, inclusive, the Connecticut Lottery 601
Corporation shall transfer two million three hundred thousand dollars 602
of the revenue received from the sale of lottery tickets to the chronic 603
gamblers treatment rehabilitation account created pursuant to section 604
17a-713. For the fiscal years ending June 30, 2021, and each fiscal year 605
thereafter, the Department of Consumer Protection shall transfer two 606
million three hundred thousand dollars of the revenue received from 607
the sale of lottery tickets to the chronic gamblers treatment rehabilitation 608
account created pursuant to section 17a-713, as amended by this act. 609
Sec. 16. Section 12-829 of the general statutes is repealed and the 610
following is substituted in lieu thereof (Effective January 1, 2021): 611
(a) (1) On or after January 1, 2012, but prior to July 1, 2018, when any 612
person redeems a winning lottery ticket worth five thousand dollars or 613
more at the central office of the Connecticut Lottery Corporation, the 614
Connecticut Lottery Corporation shall check the name and other 615
identifying information of such person against a list of taxpayers who 616 Raised Bill No. 5320
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are delinquent, supplied by the Commissioner of Revenue Services. 617
(2) On or after July 1, 2018, and prior to January 1, 2021, when any 618
person redeems a winning lottery ticket worth two thousand dollars or 619
more at the central office of the Connecticut Lottery Corporation, the 620
Connecticut Lottery Corporation shall check the name and other 621
identifying information of such person against a list of taxpayers who 622
are delinquent, supplied by the Commissioner of Revenue Services. 623
(3) On and after January 1, 2021, when any person redeems a winning 624
lottery ticket worth two thousand dollars or more at the central office of 625
the Department of Consumer Protection, the department shall check the 626
name and other identifying information of such person against a list of 627
taxpayers who are delinquent supplied by the Commissioner of 628
Revenue Services. 629
(b) Notwithstanding the provisions of section 12-15, the 630
Commissioner of Revenue Services may disclose to the [president of the 631
Connecticut Lottery Corporation] Commissioner of Consumer 632
Protection: (1) The name and such other information as may be 633
necessary to identify a person from whom taxes, including penalties and 634
interest related thereto, are due to the state and unpaid when: (A) A 635
period in excess of thirty days has elapsed following the date on which 636
such taxes were due, and (B) such taxes are not the subject of a timely 637
filed administrative appeal to said commissioner or of a timely filed 638
appeal pending before any court of competent jurisdiction, and (2) the 639
amount of such taxes, penalties and interest that are due from such 640
person. 641
(c) In the event that the person redeeming a lottery ticket described 642
in subsection (a) of this section is on the list described in said subsection 643
(a), the [Connecticut Lottery Corporation] Commissioner of Consumer 644
Protection shall, subsequent to any deductions made pursuant to 645
subsection (c) of section 52-362d, as amended by this act, if applicable, 646
deduct and withhold from the lottery prize payment payable to such 647
person under the provisions of chapter 226 or this chapter, the amount 648 Raised Bill No. 5320
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of such taxes, penalties and interest identified by said commissioner 649
pursuant to subsection (b) of this section. 650
(d) The [president of the Connecticut Lottery Corporation] 651
Commissioner of Consumer Protection shall promptly notify the 652
Commissioner of Revenue Services of any amount deducted and 653
withheld under the provisions of this section and shall pay over such 654
amount to the Commissioner of Revenue Services in accordance with 655
said commissioner's instructions. 656
[(e) For the purposes of this section, the Connecticut Lottery 657
Corporation and its officers and employees shall be treated as officers 658
and employees of the state, and the provisions of subsections (a), (e), (f), 659
(g) and (h) of section 12-15 shall apply to the officers and employees of 660
the Connecticut Lottery Corporation.] 661
Sec. 17. Section 12-831 of the general statutes is repealed and the 662
following is substituted in lieu thereof (Effective January 1, 2021): 663
(a) Except as provided in section 12-833, as amended by this act, no 664
assignment of a lottery prize, in whole or in part, including an 665
assignment of a lottery prize to be used as collateral to secure a loan 666
pursuant to title 42a, shall be valid unless it is executed pursuant to and 667
approved in accordance with this section. Any such assignment shall 668
entitle the assignee to receive, to the extent assigned, the lottery prize to 669
which the assignor would be entitled. Such assignment shall be in 670
writing and executed by the assignor. Such assignment shall be 671
accompanied by an affidavit, signed and sworn to by the assignor before 672
a proper authority, stating that the assignor (1) is of sound mind and not 673
acting under duress, (2) has been advised by independent legal counsel 674
and has received independent financial and tax advice concerning the 675
assignment, (3) understands that he will not receive lottery prize 676
payments or portions thereof for the time period assigned, (4) has 677
received a disclosure statement as provided in subsection (b) of this 678
section, (5) at the time of the execution of the assignment, was informed 679
in writing by the assignee that the assignor had the right to cancel the 680 Raised Bill No. 5320
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assignment no later than three business days following the date on 681
which the assignment was signed, (6) will have no outstanding or 682
unsatisfied judgments against him when the assignment transaction is 683
closed and is not subject to any court order or judgment regarding 684
delinquent child support or alimony obligations, and (7) releases the 685
[Connecticut Lottery Corporation] Department of Consumer Protection 686
and its [directors, officers and] employees from any further liability to 687
the assignor upon payment of any lottery prize pursuant to an 688
assignment made in accordance with this section. 689
(b) The assignee shall provide to the assignor a one-page written 690
disclosure statement in at least ten-point bold type setting forth (1) the 691
payments being assigned, by amount and payment dates, (2) the 692
purchase price being paid for the assignment of such lottery prize, (3) 693
the rate of discount to present value, assuming daily compounding and 694
funding on the date of assignment, and (4) the amount, if any, of 695
origination or closing fees that will be charged to the assignor. With 696
regard to the assignment of a lottery prize to be used as collateral to 697
secure a loan, the one-page written disclosure statement required by this 698
subsection shall also include (A) the amount of the loan, (B) the interest 699
rate to be charged, (C) the interest rate to be charged in case of default, 700
and (D) any penalties to be charged upon early repayment of the loan. 701
(c) Upon payment of an entry fee of seventy-five dollars, the assignee 702
shall submit the assignment to the superior court for the judicial district 703
in which the assignor resides or where the [Connecticut Lottery 704
Corporation] Department of Consumer Protection is located for review 705
and approval by the court. If, upon review of the assignment and 706
accompanying affidavit, the court determines that the requirements of 707
subsection (a) of this section have been met, the court shall approve the 708
assignment. 709
Sec. 18. Section 12-832 of the general statutes is repealed and the 710
following is substituted in lieu thereof (Effective January 1, 2021): 711
(a) Not later than twenty days after receipt of a certified copy of a 712 Raised Bill No. 5320
LCO No. 2114 24 of 47
court order required under subsection (c) of section 12-831, as amended 713
by this act, the [Connecticut Lottery Corporation] Department of 714
Consumer Protection shall issue written confirmation to the assignor 715
and the assignee recognizing the assignment. 716
(b) Any assignee of a lottery prize, by acceptance of the lottery prize 717
in accordance with sections 12-830 to 12-834, inclusive, as amended by 718
this act, agrees to be bound by the general statutes, regulations and all 719
duly enacted rules of the [Connecticut Lottery Corporation] Department 720
of Consumer Protection. All further assignments of lottery prizes shall 721
be subject to the same restrictions and requirements as the initial 722
assignment. 723
Sec. 19. Section 12-833 of the general statutes is repealed and the 724
following is substituted in lieu thereof (Effective January 1, 2021): 725
No person may assign a lottery prize if (1) such person is liable for 726
support under the provisions of section 52-362d, as amended by this act, 727
(2) such person is liable for any debt owed to the state under section 4a-728
12, (3) such person who does not assign any prize payments would be 729
subject to an immediate income tax liability for the value of the entire 730
prize rather than annual income tax liability for each installment when 731
paid, as determined by a technical rule letter, revenue ruling or other 732
public ruling of the Internal Revenue Service or the Department of 733
Revenue Services, (4) a court of competent jurisdiction issues a 734
published decision that such person who does not assign any prize 735
payments would be subject to an immediate income tax liability for the 736
value of the entire prize rather than annual income tax liability for each 737
installment when paid, (5) the [Connecticut Lottery Corporation] 738
Department of Consumer Protection receives such letter or ruling from 739
the Internal Revenue Service or the Department of Revenue Services or 740
a published decision of a court of competent jurisdiction and the 741
corporation files such letter, ruling or decision with the Secretary of the 742
State or (6) the assignor's lottery payments are subject to any lien, 743
judgment, offset, levy, attachment, execution, garnishment or court 744
ordered payment. 745 Raised Bill No. 5320
LCO No. 2114 25 of 47
Sec. 20. Section 12-834 of the general statutes is repealed and the 746
following is substituted in lieu thereof (Effective January 1, 2021): 747
(a) The [Connecticut Lottery Corporation] Department of Consumer 748
Protection may establish a reasonable fee for any administrative 749
expenses associated with assignments made pursuant to section 12-831, 750
as amended by this act, including the cost to the [Connecticut Lottery 751
Corporation] department of any processing fee that may be imposed by 752
a private annuity provider. The amount of the fee shall reflect the direct 753
and indirect costs of processing the assignments by [said corporation] 754
the department. 755
(b) The [Connecticut Lottery Corporation] Department of Consumer 756
Protection and its [directors, officers and] employees shall be discharged 757
of all further liability to the assignor upon payment of any lottery prize 758
pursuant to an assignment made in accordance with section 12-831, as 759
amended by this act. 760
Sec. 21. Subdivision (12) of section 1-79 of the 2020 supplement to the 761
general statutes is repealed and the following is substituted in lieu 762
thereof (Effective January 1, 2021): 763
(12) "Quasi-public agency" means Connecticut Innovations, 764
Incorporated, the Connecticut Health and Education Facilities 765
Authority, the Connecticut Higher Education Supplemental Loan 766
Authority, the Connecticut Student Loan Foundation, the Connecticut 767
Housing Finance Authority, the State Housing Authority, the Materials 768
Innovation and Recycling Authority, the Capital Region Development 769
Authority, [the Connecticut Lottery Corporation,] the Connecticut 770
Airport Authority, the Connecticut Health Insurance Exchange, the 771
Connecticut Green Bank, the Connecticut Retirement Security 772
Authority, the Connecticut Port Authority, the Connecticut Municipal 773
Redevelopment Authority and the State Education Resource Center. 774
Sec. 22. Section 1-120 of the 2020 supplement to the general statutes 775
is repealed and the following is substituted in lieu thereof (Effective 776
January 1, 2021): 777 Raised Bill No. 5320
LCO No. 2114 26 of 47
As used in sections 1-120 to 1-123, inclusive: 778
(1) "Quasi-public agency" means Connecticut Innovations, 779
Incorporated, the Connecticut Health and Educational Facilities 780
Authority, the Connecticut Higher Education Supplemental Loan 781
Authority, the Connecticut Student Loan Foundation, the Connecticut 782
Housing Finance Authority, the Connecticut Housing Authority, the 783
Materials Innovation and Recycling Authority, the Capital Region 784
Development Authority, [the Connecticut Lottery Corporation,] the 785
Connecticut Airport Authority, the Connecticut Health Insurance 786
Exchange, the Connecticut Green Bank, the Connecticut Retirement 787
Security Authority, the Connecticut Port Authority, the Connecticut 788
Municipal Redevelopment Authority, the State Education Resource 789
Center and the Paid Family and Medical Leave Insurance Authority. 790
(2) "Procedure" means each statement, by a quasi-public agency, of 791
general applicability, without regard to its designation, that 792
implements, interprets or prescribes law or policy, or describes the 793
organization or procedure of any such agency. The term includes the 794
amendment or repeal of a prior regulation, but does not include, unless 795
otherwise provided by any provision of the general statutes, (A) 796
statements concerning only the internal management of any agency and 797
not affecting procedures available to the public, and (B) intra-agency 798
memoranda. 799
(3) "Proposed procedure" means a proposal by a quasi-public agency 800
under the provisions of section 1-121, as amended by this act, for a new 801
procedure or for a change in, addition to or repeal of an existing 802
procedure. 803
Sec. 23. Section 1-121 of the general statutes is repealed and the 804
following is substituted in lieu thereof (Effective January 1, 2021): 805
(a) A quasi-public agency, before adopting a proposed procedure, 806
shall give at least thirty days' notice by publication in the Connecticut 807
Law Journal of its intended action. The notice shall include (1) either a 808
statement of the terms or of the substance of the proposed procedure or 809 Raised Bill No. 5320
LCO No. 2114 27 of 47
a description sufficiently detailed so as to apprise persons likely to be 810
affected of the issues and subjects involved in the proposed procedure, 811
(2) a statement of the purposes for which the procedure is proposed, and 812
(3) when, where and how interested persons may present their views on 813
the proposed procedure. A quasi-public agency may only adopt a 814
proposed procedure by a two-thirds vote of the full membership of the 815
board of directors of the quasi-public agency. 816
(b) If a quasi-public agency finds that an imminent peril to the public 817
health, safety or welfare requires adoption of a proposed procedure 818
upon fewer than thirty days' notice, states in writing its reasons for such 819
finding and the agency's board of directors, by a three-fourths vote of 820
the statutory membership, approves the finding in writing, the agency 821
may proceed, without prior notice or hearing or upon any abbreviated 822
notice and hearing that it finds practicable, to adopt an emergency 823
proposed procedure not later than ten days, excluding Saturdays, 824
Sundays and holidays, prior to the proposed effective date of the 825
proposed procedure. An approved emergency procedure may be 826
effective for a period of not more than one hundred twenty days and 827
renewable once for a period of not more than sixty days. If the necessary 828
steps to adopt a permanent procedure, including publication of notice 829
of intent to adopt, are not completed prior to the expiration date of an 830
emergency procedure, the emergency procedure shall cease to be 831
effective on that date. 832
[(c) The provisions of subsections (a) and (b) of this section shall not 833
apply to the Connecticut Lottery Corporation, established pursuant to 834
section 12-802, prior to July 1, 1997.] 835
Sec. 24. Section 1-125 of the 2020 supplement to the general statutes 836
is repealed and the following is substituted in lieu thereof (Effective 837
January 1, 2021): 838
The directors, officers and employees of Connecticut Innovations, 839
Incorporated, the Connecticut Higher Education Supplemental Loan 840
Authority, the Connecticut Student Loan Foundation, the Connecticut 841 Raised Bill No. 5320
LCO No. 2114 28 of 47
Housing Finance Authority, the Connecticut Housing Authority, the 842
Materials Innovation and Recycling Authority, including ad hoc 843
members of the Materials Innovation and Recycling Authority, the 844
Connecticut Health and Educational Facilities Authority, the Capital 845
Region Development Authority, the Connecticut Airport Authority, 846
[the Connecticut Lottery Corporation,] the Connecticut Health 847
Insurance Exchange, the Connecticut Green Bank, the Connecticut 848
Retirement Security Authority, the Connecticut Port Authority, the 849
Connecticut Municipal Redevelopment Authority, the State Education 850
Resource Center and the Paid Family and Medical Leave Insurance 851
Authority and any person executing the bonds or notes of the agency 852
shall not be liable personally on such bonds or notes or be subject to any 853
personal liability or accountability by reason of the issuance thereof, nor 854
shall any director or employee of the agency, including ad hoc members 855
of the Materials Innovation and Recycling Authority, be personally 856
liable for damage or injury, not wanton, reckless, wilful or malicious, 857
caused in the performance of his or her duties and within the scope of 858
his or her employment or appointment as such director, officer or 859
employee, including ad hoc members of the Materials Innovation and 860
Recycling Authority. The agency shall protect, save harmless and 861
indemnify its directors, officers or employees, including ad hoc 862
members of the Materials Innovation and Recycling Authority, from 863
financial loss and expense, including legal fees and costs, if any, arising 864
out of any claim, demand, suit or judgment by reason of alleged 865
negligence or alleged deprivation of any person's civil rights or any 866
other act or omission resulting in damage or injury, if the director, 867
officer or employee, including ad hoc members of the Materials 868
Innovation and Recycling Authority, is found to have been acting in the 869
discharge of his or her duties or within the scope of his or her 870
employment and such act or omission is found not to have been wanton, 871
reckless, wilful or malicious. 872
Sec. 25. Subsection (d) of section 4-66k of the 2020 supplement to the 873
general statutes is repealed and the following is substituted in lieu 874
thereof (Effective January 1, 2021): 875 Raised Bill No. 5320
LCO No. 2114 29 of 47
(d) There is established a regionalization subaccount within the 876
regional planning incentive account. If the [Connecticut Lottery 877
Corporation] Department of Consumer Protection offers online its 878
existing lottery draw games through the corporation's Internet web site, 879
online service or mobile application, the revenue from such online 880
offering that exceeds an amount equivalent to the costs of the debt-free 881
community college program under section 10a-174 shall be deposited in 882
the subaccount, or, if such online offering is not established, the amount 883
provided under subsection (b) of section 364 of public act 19-117* for 884
regionalization initiatives shall be deposited in the subaccount. Moneys 885
in the subaccount shall be expended only for the purposes 886
recommended by the task force established under section 4-66s. 887
Sec. 26. Subsection (f) of section 5-263b of the 2020 supplement to the 888
general statutes is repealed and the following is substituted in lieu 889
thereof (Effective January 1, 2021): 890
(f) Any suggestion that involves the following shall not be eligible for 891
an award under this section: (1) Deferred maintenance or replacement 892
of essential equipment and supplies; (2) individual employee 893
compensation or position classification; (3) personal grievances or 894
complaints; (4) suggestions that require a change to or that conflict with, 895
federal or state law; (5) suggestions already submitted by another 896
employee; (6) matters resulting from an agency audit, study, survey, 897
review or research; (7) suggestions that involve correcting a condition 898
that exists because established procedures are not being followed; (8) 899
suggestions that constitute opinions only, and which cannot be 900
supported by demonstrating a better idea, and the need for same; (9) 901
suggestions concerning any matter subject to collective bargaining; (10) 902
suggestions circumventing competitive procurement procedures 903
provided by state law or policy; (11) suggestions which recommend or 904
require formal studies, surveys, investigation or similar research 905
activity to establish the benefits of a suggestion referred to; (12) 906
suggestions which are hypothetical, vague, based on inconclusive 907
justification or deal with generalities; (13) suggestions concerning the 908
structure of lottery games conducted by the [Connecticut Lottery 909 Raised Bill No. 5320
LCO No. 2114 30 of 47
Corporation] Department of Consumer Protection, including, but not 910
limited to, game design, prize patterns, draw dates and draw frequency; 911
(14) any suggestion made by the agency suggestion coordinator or 912
agency or department head; (15) suggestions concerning a practice that 913
is an alleged gross waste of funds that the suggesting employee 914
participated in committing; and (16) any suggestion resulting in less 915
than ten thousand dollars in estimated savings to the agency. 916
Sec. 27. Section 10-183vv of the 2020 supplement to the general 917
statutes is repealed and the following is substituted in lieu thereof 918
(Effective January 1, 2021): 919
(a) There is established the Connecticut Teachers' Retirement Fund 920
Bonds Special Capital Reserve Fund, which shall contain any moneys 921
required by law to be deposited in the fund, including, but not limited 922
to, deposits from the [Connecticut Lottery Corporation] Department of 923
Consumer Protection in accordance with section 12-812, as amended by 924
this act. The purpose of the fund shall be to provide, and it is determined 925
that such fund does provide, adequate provision for the protection of 926
the holders of bonds of the state issued pursuant to section 10-183qq and 927
any bonds refunding such bonds. The fund shall secure the payment of 928
the principal of and interest on such bonds and shall be held in trust for 929
the benefit of the holders of the bonds secured thereby, separate and 930
apart from other funds of the state. During any period when any bonds 931
secured by the fund remain outstanding, amounts on deposit in the 932
fund shall not be commingled with other state funds and the state shall 933
have no claim to or against, or interest in, the fund, except as hereinafter 934
provided. Amounts in such fund shall be deposited in a separate 935
account or accounts in a trust company or bank having the powers of a 936
trust company within the state, which shall serve as the trustee of the 937
fund. The Treasurer shall enter into an agreement with such trust 938
company or bank in accordance with the provisions of this section, 939
sections 10-183b, 10-183z, 10-183ww, 12-801, as amended by this act, 12-940
806, as amended by this act, and 12-812, as amended by this act, and 941
section 90 of public act 19-117. 942 Raised Bill No. 5320
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(b) The moneys held in the Connecticut Teachers' Retirement Fund 943
Bonds Special Capital Reserve Fund, except as provided in this section, 944
shall be pledged to payment on bonds secured by the fund and shall be 945
used solely for the payment of the principal of bonds secured by the 946
fund as such bonds become due by reason of maturity or sinking fund 947
redemption, the purchase of such bonds, the payment of interest on such 948
bonds and the payment of any redemption premium required to be paid 949
when such bonds are redeemed prior to maturity. In the event the state 950
has not otherwise timely made available moneys to pay principal or 951
interest due on such bonds, the Treasurer shall direct the trustee of the 952
fund to transfer from the fund to the paying agent for such bonds the 953
amount necessary to timely pay such principal or interest then due. 954
Except for the payment of the principal of bonds secured by the fund as 955
such bonds become due and the payment of interest on such bonds, no 956
moneys shall be withdrawn from the fund in such amount as would 957
reduce the amount on deposit in the fund to less than the required 958
minimum capital reserve. The pledge made by the state pursuant to this 959
section shall be valid and binding from the time when the pledge is 960
made. The lien of such pledge shall be valid and binding as against all 961
parties having claims of any kind in tort, contract or otherwise against 962
the state, irrespective of whether the parties have notice of the claims. 963
Notwithstanding any provision of the Uniform Commercial Code, no 964
instrument by which such pledge is created need be recorded or filed. 965
Any moneys so pledged and later received by the state shall be subject 966
immediately to the lien of the pledge without any physical delivery 967
thereof or further act and such lien shall have priority over all other 968
liens. For the purpose of evaluation of such fund, obligations acquired 969
as an investment shall be valued at market. For purposes of this section, 970
"required minimum capital reserve" means the maximum amount of 971
principal and interest becoming due on bonds of the state issued 972
pursuant to section 10-183qq, and any bonds refunding such bonds then 973
outstanding, by reason of maturity or a required sinking fund 974
installment in any succeeding fiscal year. 975
(c) The amounts payable from the [Connecticut Lottery Corporation] 976 Raised Bill No. 5320
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Department of Consumer Protection into such fund as provided in 977
section 12-812, as amended by this act, shall be sufficient for the 978
payment of the principal of and interest on the bonds secured by the 979
Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve 980
Fund when due, whether at maturity or by mandatory sinking fund 981
installments. 982
(d) The Treasurer shall certify to the Governor, the Teachers' 983
Retirement Board and the [president of the Connecticut Lottery 984
Corporation] Department of Consumer Protection the amount on 985
deposit in the Connecticut Teachers' Retirement Fund Bonds Special 986
Capital Reserve Fund when such amount first equals or exceeds the 987
required minimum capital reserve. Whenever the amount on deposit in 988
the fund is in excess of the required minimum capital reserve, the 989
Treasurer may direct the trustee for the fund to remit to the Treasurer 990
for deposit into the General Fund any amount in excess of the required 991
minimum capital reserve. 992
(e) The Connecticut Teachers' Retirement Fund Bonds Special Capital 993
Reserve Fund shall terminate and, upon direction of the Treasurer, any 994
moneys remaining therein shall be transferred to the Budget Reserve 995
Fund, established in section 4-30a: (1) Upon payment in full of the 996
principal and interest on all bonds secured by the fund; (2) if there has 997
been deposited in an irrevocable trust for the benefit of the holders of 998
the bonds secured by the fund either (A) moneys in an amount that shall 999
be sufficient to pay, when due, the principal of and interest on such 1000
bonds, and any redemption premium required to be paid when such 1001
bonds are redeemed prior to maturity, or (B) noncallable and 1002
nonprepayable direct obligations of, or obligations the timely payment 1003
of principal of and interest on which are unconditionally guaranteed by, 1004
the United States of America, the principal of and the interest on which 1005
when due, without reinvestment, will provide moneys that together 1006
with the moneys, if any, deposited with the trustee at the same time, 1007
shall be sufficient to pay when due the principal of and interest on such 1008
bonds, and any redemption premium required to be paid when such 1009
bonds are redeemed prior to maturity; (3) if the amount of the annual 1010 Raised Bill No. 5320
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required contribution to the fund for the Connecticut teachers' 1011
retirement system is determined in accordance with the provisions of 1012
subsection (b) of section 10-183l and section 10-183z, as such sections 1013
were in effect on April 30, 2008; or (4) if the Teachers' Retirement Board 1014
fails to approve the credited interest percentage for member accounts 1015
and return assumption in accordance with subsection (a) of section 10-1016
183ww. 1017
(f) Pending the use or application of amounts in the fund, moneys in 1018
the fund may be invested and reinvested at the direction of the 1019
Treasurer in such obligations, securities and investments as are set forth 1020
in subsection (f) of section 3-20 and in participation certificates in the 1021
Short Term Investment Fund created under section 3-27a. 1022
(g) The state pledges to the holders of the bonds of the state issued 1023
pursuant to section 10-183qq, and any bonds refunding such bonds, that 1024
the state shall not limit or alter the rights of such holders under this 1025
section or reduce the transfer or deposit of moneys into the fund 1026
pursuant to section 10-183ww or section 12-812, as amended by this act, 1027
until all such bonds are fully paid or until provision for the payment of 1028
such bonds has been made as provided in subdivision (2) of subsection 1029
(e) of this section, provided nothing contained in this section shall 1030
preclude such limitation, alteration or reduction if adequate provision 1031
is made by law for the protection of the holders of such bonds. 1032
Sec. 28. Section 12-568a of the general statutes is repealed and the 1033
following is substituted in lieu thereof (Effective January 1, 2021): 1034
The Department of Consumer Protection shall adopt regulations, in 1035
accordance with chapter 54, for the purpose of assuring the integrity of 1036
the state lottery. [, concerning the regulation of the state lottery under 1037
the operation and management of the Connecticut Lottery Corporation.] 1038
Such regulations shall include: (1) The licensing of [employees of the 1039
Connecticut Lottery Corporation and] any person or business 1040
organization awarded the primary contract by [said corporation] the 1041
department to provide facilities, components, goods or services which 1042 Raised Bill No. 5320
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are necessary for the operation of the activities authorized by chapter 1043
229a; [(2) the approval of procedures of the corporation; (3) the time 1044
period for complying with the regulations governing said approval of 1045
procedures; (4)] (2) offerings of lottery games; [(5)] (3) minimum prize 1046
payouts and payments; [(6)] (4) regulation of lottery sales agents 1047
including qualifications for licensure and license suspension and 1048
revocation; [(7)] (5) assurance of the integrity of the state lottery 1049
including the computer gaming system, computer internal control and 1050
system testing; and [(8)] (6) limitations on advertising and marketing 1051
content to assure public information as to the odds of winning the 1052
lottery and the prohibition of sales of tickets to minors. 1053
Sec. 29. Section 12-569 of the general statutes is repealed and the 1054
following is substituted in lieu thereof (Effective January 1, 2021): 1055
(a) If the [president of the Connecticut Lottery Corporation] 1056
Commissioner of Consumer Protection determines that any lottery sales 1057
agent has breached such agent's fiduciary responsibility to the 1058
[corporation] department in that the account of such lottery sales agent 1059
with respect to moneys received from the sale of lottery tickets has 1060
become delinquent in accordance with regulations adopted as provided 1061
in section 12-568a, as amended by this act, [the president shall notify the 1062
commissioner of the breach of fiduciary duty and] the commissioner 1063
shall impose a delinquency assessment upon such account equal to ten 1064
per cent of the amount due or ten dollars, whichever amount is greater, 1065
plus interest at the rate of one and one-half per cent of such amount for 1066
each month or fraction of a month from the date such amount is due to 1067
the date of payment. Subject to the provisions of section 12-3a, the 1068
commissioner may waive all or part of the penalties provided under this 1069
subsection when it is proven to the commissioner's satisfaction that the 1070
failure to pay such moneys to the state within the time allowed was due 1071
to reasonable cause and was not intentional or due to neglect. Any such 1072
delinquent lottery sales agent shall be notified of such delinquency 1073
assessment and shall be afforded an opportunity to contest the validity 1074
and amount of such assessment before the commissioner who may 1075
conduct such hearing. [Upon request of the president of the Connecticut 1076 Raised Bill No. 5320
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Lottery Corporation, the] The commissioner may prepare and sign a 1077
warrant directed to any state marshal, constable or any collection agent 1078
employed by the [Connecticut Lottery Corporation] department for 1079
distraint upon any property of such delinquent lottery sales agent 1080
within the state, whether personal or real property. An itemized bill 1081
shall be attached to the warrant certified by the commissioner as a true 1082
statement of the amount due from such lottery sales agent. Such warrant 1083
shall have the same force and effect as an execution issued in accordance 1084
with chapter 906. Such warrant shall be levied on any real, personal, 1085
tangible or intangible property of such agent and sale made pursuant to 1086
such warrant in the same manner and with the same force and effect as 1087
a levy and sale pursuant to an execution. 1088
(b) The commissioner shall adopt regulations in accordance with 1089
chapter 54 to carry out the purposes of this section. 1090
Sec. 30. Subsection (g) of section 12-707 of the general statutes is 1091
repealed and the following is substituted in lieu thereof (Effective January 1092
1, 2021): 1093
(g) As used in this section and sections 12-705 and 12-706: 1094
(1) "Employer" means an employer, as defined in Section 3401 of the 1095
Internal Revenue Code; 1096
(2) "Payer" means a person making a payment of nonpayroll amounts 1097
to one or more payees; 1098
(3) "Payee" means a person receiving a payment of nonpayroll 1099
amounts from a payer; 1100
(4) "Nonpayroll amounts" includes (A) gambling winnings, other 1101
than Connecticut lottery winnings, that are paid to a resident, or to a 1102
person receiving payment on behalf of a resident, and that are subject to 1103
federal income tax withholding; (B) Connecticut lottery winnings that 1104
are required to be reported by the [Connecticut Lottery Corporation] 1105
Department of Consumer Protection to the Internal Revenue Service, 1106 Raised Bill No. 5320
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whether or not subject to federal income tax withholding, whether paid 1107
to a resident, nonresident or a part-year resident, and whether paid to 1108
an individual, trust or estate; (C) pension and annuity distributions, for 1109
which the payer is required to deduct and withhold tax under this 1110
chapter; (D) military retired pay, where the payee is a resident 1111
individual and has requested that tax be deducted and withheld under 1112
this chapter; (E) unemployment compensation, where the recipient has 1113
requested that tax be deducted and withheld under this chapter; and (F) 1114
payments made to an athlete or entertainer, where the payments are not 1115
wages for federal income tax withholding purposes and where the 1116
commissioner requires the payer to deduct and withhold tax under this 1117
chapter; 1118
(5) "Reported liability" means, in the case of an employer, the liability 1119
for the tax required to be deducted and withheld under this chapter, as 1120
shown on the employer's withholding tax returns for the four quarterly 1121
periods within the twelve-month look-back period, and, in the case of a 1122
payer, the liability for the tax required to be deducted and withheld 1123
under this chapter, as shown on the payer's withholding tax return for 1124
the look-back calendar year; 1125
(6) "Twelve-month look-back period" means the twelve-month 1126
period that ended on the June thirtieth next preceding the calendar year 1127
for which the annual determination for an employer is made by the 1128
commissioner; 1129
(7) "Look-back calendar year" means the calendar year preceding by 1130
two years the calendar year for which the annual determination for a 1131
payer is made by the commissioner; 1132
(8) "Seasonal employer" means an employer that regularly in the 1133
same one or more quarterly periods of each calendar year pays no wages 1134
to employees; 1135
(9) "Household employee" means an employee whose services of a 1136
household nature in or about a private home of an employer constitute 1137
domestic service in a private home of the employer, as the phrase is used 1138 Raised Bill No. 5320
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in Section 3121(a)(7) of the Internal Revenue Code or in regulations 1139
adopted thereunder; 1140
(10) "Household employer" means an employer of a household 1141
employee; 1142
(11) "Weekly period" means the seven-day period beginning on a 1143
Saturday and ending on the following Friday; and 1144
(12) "Quarterly period" means the period of three full months 1145
beginning on the first day of January, April, July or October. 1146
Sec. 31. Subsection (b) of section 12-711 of the general statutes is 1147
repealed and the following is substituted in lieu thereof (Effective January 1148
1, 2021): 1149
(b) (1) Items of income, gain, loss and deduction derived from or 1150
connected with sources within this state shall be those items attributable 1151
to: (A) The ownership or disposition of any interest in real property in 1152
this state or tangible personal property in this state, as determined 1153
pursuant to subdivision (6) of this subsection; (B) a business, trade, 1154
profession or occupation carried on in this state; (C) in the case of a 1155
shareholder of an S corporation, the ownership of shares issued by such 1156
corporation, to the extent determined under section 12-712; or (D) 1157
winnings from a wager placed in a lottery conducted by the 1158
[Connecticut Lottery Corporation] Department of Consumer Protection, 1159
if the proceeds from such wager are required, under the Internal 1160
Revenue Code or regulations adopted thereunder, to be reported by the 1161
[Connecticut Lottery Corporation] Department of Consumer Protection 1162
to the Internal Revenue Service. 1163
(2) (A) Before, on and after December 29, 2015, income from a 1164
business, trade, profession or occupation carried on in this state 1165
includes, but is not limited to, compensation paid to a nonresident 1166
natural person for rendering personal services as an employee in this 1167
state. For taxable years commencing on or after January 1, 2016, 1168
compensation for personal services rendered in this state by such 1169 Raised Bill No. 5320
LCO No. 2114 38 of 47
nonresident employee who is present in this state for not more than 1170
fifteen days during a taxable year shall not constitute income derived 1171
from sources within this state. If a nonresident employee is present in 1172
this state for more than fifteen days during a taxable year, all 1173
compensation the employee receives for the rendering of all personal 1174
services in this state during the taxable year shall constitute income 1175
derived from sources within this state during the taxable year. 1176
(B) For purposes of determining whether a nonresident employee is 1177
"present in this state" under subparagraph (A) of this subdivision, 1178
presence in this state for any part of a day constitutes being present in 1179
this state for that entire day unless such presence is solely for the 1180
purpose of transit through this state. The provisions of this 1181
subparagraph shall not apply to subsection (c) of this section or to any 1182
other provision of law unless expressly provided. 1183
(C) For purposes of determining the compensation derived from or 1184
connected with sources within this state, a nonresident natural person 1185
shall include income from days worked outside this state for such 1186
person's convenience if such person's state of domicile uses a similar 1187
test. 1188
(D) The provisions of this subdivision shall not apply to sources of 1189
income from a business, trade, profession, or occupation carried on in 1190
this state other than compensation for personal services rendered by a 1191
nonresident employee, and shall not apply to sources of income derived 1192
by an athlete, entertainer or performing artist, including, but not limited 1193
to, a member of an athletic team. 1194
(3) Income from intangible personal property, including annuities, 1195
dividends, interest and gains from the disposition of intangible personal 1196
property, shall constitute income derived from sources within this state 1197
only to the extent that such income is from (A) property employed in a 1198
business, trade, profession or occupation carried on in this state, or (B) 1199
winnings from a wager placed in a lottery conducted by the 1200
[Connecticut Lottery Corporation] Department of Consumer Protection, 1201 Raised Bill No. 5320
LCO No. 2114 39 of 47
if the proceeds from such wager are required, under the Internal 1202
Revenue Code or regulations adopted thereunder, to be reported by the 1203
[Connecticut Lottery Corporation] Department of Consumer Protection 1204
to the Internal Revenue Service. 1205
(4) Deductions with respect to capital losses and net operating losses 1206
shall be based solely on income, gain, loss and deduction derived from 1207
or connected with sources within this state, under regulations adopted 1208
by the commissioner, but otherwise shall be determined in the same 1209
manner as the corresponding federal deductions. 1210
(5) Income directly or indirectly derived by an athlete, entertainer or 1211
performing artist, including, but not limited to, a member of an athletic 1212
team, from closed-circuit and cable television transmissions of an event, 1213
other than events occurring on a regularly scheduled basis, taking place 1214
within this state as a result of the rendition of services by such athlete, 1215
entertainer or performing artist shall constitute income derived from or 1216
connected with sources within this state only to the extent that such 1217
transmissions were received or exhibited within this state. 1218
(6) For purposes of subparagraph (A) of subdivision (1) of this 1219
subsection, "real property in this state" includes an interest in an entity, 1220
and "entity" means a partnership, limited liability company or S 1221
corporation that owns, directly or indirectly, real property that is located 1222
within this state and has a fair market value that equals or exceeds fifty 1223
per cent of all the assets of the entity on the date of sale or disposition 1224
by a nonresident natural person of such person's interest in the entity. 1225
Only those assets that the entity owned, directly or indirectly, for at least 1226
two years prior to the date of the sale or disposition of the person's 1227
interest in the entity shall be used in determining the fair market value 1228
of all the assets of the entity on the date of such sale or disposition. The 1229
gain or loss derived from Connecticut sources from such person's sale 1230
or disposition of an interest in such entity is the total gain or loss for 1231
federal income tax purposes from such sale or disposition multiplied by 1232
a fraction, the numerator of which is the fair market value of all real 1233
property located in this state owned, directly or indirectly, by the entity 1234 Raised Bill No. 5320
LCO No. 2114 40 of 47
on the date of such sale or disposition, and the denominator of which is 1235
the fair market value of all the assets of the entity on the date of such 1236
sale or disposition. 1237
Sec. 32. Section 15-120mm of the general statutes is repealed and the 1238
following is substituted in lieu thereof (Effective July 1, 2020): 1239
(a) The authority shall be a successor employer to the state and shall 1240
recognize existing bargaining units and collective bargaining 1241
agreements existing at the time of transfer of Bradley and the general 1242
aviation airports to the authority. The employees of the authority shall 1243
be considered state employees under the provisions of sections 5-270 to 1244
5-280, inclusive. Managerial employees and other employees not 1245
covered by a collective bargaining agreement shall be exempt from the 1246
classified service. With regard to unclassified positions, the authority 1247
shall not be required to comply with personnel policies and procedures 1248
of the Department of Administrative Services and the Office of Policy 1249
and Management with regard to approval for the creation of new 1250
positions, the number of such positions, the decision to fill such 1251
positions or the time for filling such positions. The authority, not the 1252
executive branch, shall have the power to determine whether an 1253
individual is qualified to fill an unclassified position at the authority. 1254
Employees of the authority covered by a collective bargaining 1255
agreement shall be members of the classified service. The authority shall 1256
establish classifications and determine the qualifications and set the 1257
terms and conditions of employment of employees not covered by a 1258
collective bargaining agreement, including the establishment of 1259
compensation and incentive plans. 1260
(b) Existing aviation employees, as defined in section 15-120oo, in 1261
collective bargaining units shall be transferred with their position to the 1262
authority, if, as and when the authority shall have been ceded the 1263
powers of the commissioner to perform the functions performed by 1264
such employees. If the authority elects to employ a smaller number of 1265
persons in such positions at the authority than the number of existing 1266
aviation employees in collective bargaining units, the opportunity to 1267 Raised Bill No. 5320
LCO No. 2114 41 of 47
transfer to the authority shall be offered on the basis of seniority as 1268
defined by statute or collective bargaining agreement. Employees who 1269
are offered the opportunity to transfer to the authority may decline to 1270
do so. Any person who is covered by a collective bargaining agreement 1271
as an employee of the Department of Transportation who accepts 1272
employment with the authority shall transfer with his or her position 1273
and shall remain in the same bargaining unit of which he or she was a 1274
member as an employee of the Department of Transportation. 1275
(c) No employee covered by a collective bargaining agreement as an 1276
employee of the Department of Transportation shall be laid off as a 1277
result of the creation of the authority. Each bargaining unit employee of 1278
the Department of Transportation who does not transfer to the authority 1279
and who, by virtue of sections 15-101l to 15-101n, inclusive, is no longer 1280
employed by the Department of Transportation shall be retained by said 1281
department or assigned with his or her position to another state agency 1282
in accordance with the provisions of the State Employees Bargaining 1283
Agent Coalition agreement. Such opportunities shall be offered in the 1284
order of seniority. Seniority shall be defined in the same way as cases of 1285
transfer under the appropriate collective bargaining agreements. Such 1286
assignments shall be made only with the approval of the Office of Policy 1287
and Management and shall be reported at the end of the fiscal year to 1288
the Finance Advisory Committee. Employees may choose to be laid off 1289
in lieu of accepting any such assignment. In such case, they shall be 1290
entitled to all collective bargaining rights under their respective 1291
collective bargaining agreements including the State Employees 1292
Bargaining Agent Coalition. Sections 1-120, as amended by this act, 1-1293
121, as amended by this act, 1-125, as amended by this act, 12-563, 12-1294
563a, 12-564, 12-566, 12-567, 12-568a, as amended by this act, and 12-569, 1295
as amended by this act, and subsection (c) of section 12-574 [and sections 1296
12-800 to 12-818, inclusive,] shall in no way affect the collective 1297
bargaining rights of employees of the Department of Transportation. 1298
(d) (1) In addition to positions transferred to the authority under 1299
subsection (b) of this section, the authority may create one or more new 1300
classifications of employees as determined by the board of directors. 1301 Raised Bill No. 5320
LCO No. 2114 42 of 47
Such classifications shall not be deemed comparable to other 1302
classifications in state service and shall be exempt from classified 1303
service. 1304
(2) On and after July 1, 2011, the authority may hire employees into 1305
new unclassified positions without regard to any collective bargaining 1306
agreement then in effect and may set the initial terms and conditions of 1307
employment for all employees in new unclassified positions. 1308
(e) The executive branch shall be authorized and empowered to 1309
negotiate on behalf of the authority for employees of the authority 1310
covered by collective bargaining and represent the authority in all other 1311
collective bargaining matters. The authority shall be entitled to have a 1312
representative present at all such bargaining. 1313
(f) In any interest arbitration regarding employees of the authority, 1314
the arbitrator shall take into account as a factor, in addition to those 1315
factors specified in section 5-276a, the purposes of sections 1-120, as 1316
amended by this act, 1-121, as amended by this act, 1-125, as amended 1317
by this act, 12-563, 12-563a, 12-564, 12-566, 12-567, 12-568a, as amended 1318
by this act, and 12-569 [,] and subsection (c) of section 12-574 [and 1319
sections 12-800 to 12-818, inclusive,] the entrepreneurial mission of the 1320
authority and the necessity to provide flexibility and innovation to 1321
facilitate the success of the authority in the marketplace. 1322
(g) The officers and all other employees of the authority shall be state 1323
employees for the purposes of group welfare benefits and retirement, 1324
including, but not limited to, those provided under chapter 66 and 1325
sections 5-257 and 5-259. The authority shall reimburse the appropriate 1326
state agencies for all costs incurred by such designation. 1327
(h) The executive director, as described in subsection (d) of section 1328
15-120bb, may, at the discretion of the authority and at the one-time 1329
irrevocable option of the executive director, be exempted from the 1330
provision of subsection (g) of this section for the purposes of retirement 1331
under chapter 66 or group welfare benefits under sections 5-257 and 5-1332
259. If the executive director elects either or both such options, as 1333 Raised Bill No. 5320
LCO No. 2114 43 of 47
approved by the authority, the executive director's participation in the 1334
retirement or group benefits plan, as applicable, shall be suspended 1335
during the period of such election while the executive director is an 1336
employee of the authority. The authority may develop and implement 1337
retirement plans and group welfare benefits for the executive director. 1338
Such plans shall not be subject to supervision, oversight or approval by 1339
the State Employees Retirement Commission under chapter 66 or the 1340
Comptroller, Attorney General or Insurance Commissioner under 1341
chapter 67, provided any such retirement plan shall be considered a 1342
Connecticut retirement plan for purposes of subsection (d) of section 5-1343
160. The authority shall pay all costs, fees, contributions and other 1344
expenses incurred as a result of any such retirement plan or group 1345
welfare benefit. 1346
Sec. 33. Section 21a-1b of the general statutes is repealed and the 1347
following is substituted in lieu thereof (Effective July 1, 2020): 1348
(a) (1) Wherever the term "executive director of the Division of 1349
Special Revenue" is used in the following general statutes, the term 1350
"Commissioner of Consumer Protection" shall be substituted in lieu 1351
thereof, (2) wherever the term "executive director" is used in the 1352
following general statutes, the term "commissioner" shall be substituted 1353
in lieu thereof, and (3) wherever the term "division" is used in the 1354
following general statutes, the term "department" shall be substituted in 1355
lieu thereof: 7-173, 7-174, 7-177a, 7-178, 7-180 to 7-183, inclusive, 12-560, 1356
12-561, 12-563, 12-563a, 12-564, 12-564a, 12-565, 12-566, 12-567, 12-568a, 1357
as amended by this act, 12-571, 12-571a, 12-572, 12-573, 12-574, 12-575, 1358
12-573a, 12-574a, 12-574c, 2-574d, 12-576, 12-578, 12-584, 12-585, [12-1359
802a,] 12-806, as amended by this act, [12-806a,] 12-807, as amended by 1360
this act, 12-808, as amended by this act, 12-813, as amended by this act, 1361
[12-815,] 12-815a, as amended by this act, 17a-713, as amended by this 1362
act, 29-18c, 30-20 and 53-278g. 1363
(b) Wherever the term "executive director of the Division of Special 1364
Revenue" is used in the general statutes or in any special or public act of 1365
2011, the term "Commissioner of Consumer Protection" shall be 1366 Raised Bill No. 5320
LCO No. 2114 44 of 47
substituted in lieu thereof. Wherever the term "Division of Special 1367
Revenue" is used in the general statutes or any public or special act of 1368
2011, the term "Department of Consumer Protection" shall be 1369
substituted in lieu thereof. 1370
(c) The Legislative Commissioners' Office shall, in codifying the 1371
provisions of this section, make such technical, grammatical and 1372
punctuation changes as are necessary to carry out the purposes of this 1373
section. 1374
Sec. 34. Subsection (b) of section 17a-713 of the general statutes is 1375
repealed and the following is substituted in lieu thereof (Effective January 1376
1, 2021): 1377
(b) The program established by subsection (a) of this section shall be 1378
funded by: [imposition of:] (1) [A] Imposition of a fee of one hundred 1379
thirty-five dollars on each association license, for each performance of 1380
jai alai or dog racing conducted under the provisions of chapter 226, 1381
provided no such licensee shall contribute more than forty-five 1382
thousand dollars in any one year; (2) imposition of a fee of twenty-five 1383
dollars for each teletheater performance on each operator of a teletheater 1384
facility; and (3) the amount received from the Connecticut Lottery 1385
Corporation or the Department of Consumer Protection pursuant to 1386
section 12-818, as amended by this act. The Commissioner of Consumer 1387
Protection shall collect the fee from each association licensee or such 1388
operator on a monthly basis. The receipts shall be deposited in the 1389
General Fund and credited to a separate, nonlapsing chronic gamblers 1390
treatment and rehabilitation account which shall be established by the 1391
Comptroller. All moneys in the account are deemed to be appropriated 1392
and shall be expended for the purposes established in subsection (a) of 1393
this section. 1394
Sec. 35. Subsection (c) of section 52-362d of the general statutes is 1395
repealed and the following is substituted in lieu thereof (Effective January 1396
1, 2021): 1397
(c) When any person redeems a winning lottery ticket worth five 1398 Raised Bill No. 5320
LCO No. 2114 45 of 47
thousand dollars or more at the central office of the [Connecticut Lottery 1399
Corporation] Department of Consumer Protection, the [Connecticut 1400
Lottery Corporation] Department of Consumer Protection shall check 1401
the name and other identifying information of such person against a list 1402
of obligors supplied by the Commissioner of Social Services. If such 1403
person is included on the list of obligors, the [Connecticut Lottery 1404
Corporation] Department of Consumer Protection shall request 1405
confirmation from the Commissioner of Social Services that such person 1406
is in fact an obligor, and upon notification by the Commissioner of Social 1407
Services that money is due from any such person as a result of a claim 1408
for support which has been assigned to the state pursuant to section 17b-1409
77, or is to be paid to the state acting by and through the IV-D agency, 1410
the [Connecticut Lottery Corporation] Department of Consumer 1411
Protection shall withhold from any lottery winnings payable to such 1412
person under the provisions of chapter 226 or chapter 229a the amount 1413
of such claim for support owed to an individual for any portion of 1414
support which has not been assigned to the state and then the amount 1415
of such claim for support owed to the state, provided the [Connecticut 1416
Lottery Corporation] Department of Consumer Protection shall notify 1417
such person that (1) lottery winnings have been withheld as a result of 1418
the amount due for such support, and (2) such person has the right to a 1419
hearing before a hearing officer designated by the Commissioner of 1420
Social Services if such person contests the amount of the alleged claim 1421
for support. The [Connecticut Lottery Corporation] Department of 1422
Consumer Protection shall pay any such person in accordance with any 1423
decisions of the hearing officer or the court upon appeal of the hearing 1424
officer's decision. 1425
Sec. 36. Section 52-367c of the general statutes is repealed and the 1426
following is substituted in lieu thereof (Effective January 1, 2021): 1427
(a) Notwithstanding any other provision of the general statutes, on 1428
application of a judgment creditor or his attorney, stating that a 1429
judgment remains unsatisfied and the amount due thereon, and subject 1430
to the expiration of any stay of enforcement and expiration of any right 1431
of appeal, the clerk of the court in which the money judgment was 1432 Raised Bill No. 5320
LCO No. 2114 46 of 47
rendered shall issue an execution against any winnings of the judgment 1433
debtor pursuant to chapter 226 or 229a, as the case may be. The 1434
execution shall be directed to (1) the State Comptroller who shall 1435
withhold any order of the State Treasurer, or (2) the [president of the 1436
Connecticut Lottery Corporation] Department of Consumer Protection, 1437
as the case may be, for payment due from winnings pursuant to chapter 1438
226 or 229a to such judgment debtor until the judgment is satisfied. 1439
(b) The [Connecticut Lottery Corporation] Department of Consumer 1440
Protection may establish a reasonable fee for any administrative 1441
expenses associated with executions made pursuant to subsection (a) of 1442
this section, including the cost to the [Connecticut Lottery Corporation] 1443
Department of Consumer Protection of any fee that may be imposed by 1444
the clerk of the court. The amount of the fee shall reflect the direct and 1445
indirect costs of processing the executions by said corporation. 1446
Sec. 37. Sections 12-570b, 12-800, 12-802, 12-802a, 12-804, 12-805, 12-1447
806a, 12-806b, 12-809, 12-811, 12-815 and 12-816 of the general statutes 1448
are repealed. (Effective January 1, 2021) 1449
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 12-801
Sec. 3 January 1, 2021 12-803
Sec. 4 January 1, 2021 12-806
Sec. 5 January 1, 2021 12-806c
Sec. 6 January 1, 2021 12-806d
Sec. 7 January 1, 2021 12-807
Sec. 8 January 1, 2021 12-808
Sec. 9 January 1, 2021 12-810
Sec. 10 January 1, 2021 12-812
Sec. 11 January 1, 2021 12-813(a)
Sec. 12 January 1, 2021 12-814
Sec. 13 January 1, 2021 12-815a
Sec. 14 January 1, 2021 12-817
Sec. 15 January 1, 2021 12-818
Sec. 16 January 1, 2021 12-829 Raised Bill No. 5320
LCO No. 2114 47 of 47
Sec. 17 January 1, 2021 12-831
Sec. 18 January 1, 2021 12-832
Sec. 19 January 1, 2021 12-833
Sec. 20 January 1, 2021 12-834
Sec. 21 January 1, 2021 1-79(12)
Sec. 22 January 1, 2021 1-120
Sec. 23 January 1, 2021 1-121
Sec. 24 January 1, 2021 1-125
Sec. 25 January 1, 2021 4-66k(d)
Sec. 26 January 1, 2021 5-263b(f)
Sec. 27 January 1, 2021 10-183vv
Sec. 28 January 1, 2021 12-568a
Sec. 29 January 1, 2021 12-569
Sec. 30 January 1, 2021 12-707(g)
Sec. 31 January 1, 2021 12-711(b)
Sec. 32 July 1, 2020 15-120mm
Sec. 33 July 1, 2020 21a-1b
Sec. 34 January 1, 2021 17a-713(b)
Sec. 35 January 1, 2021 52-362d(c)
Sec. 36 January 1, 2021 52-367c
Sec. 37 January 1, 2021 Repealer section
Statement of Purpose:
To terminate the Connecticut Lottery Corporation and transfer
responsibility for operating the lottery to the Department of Consumer
Protection.
[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.]