Researcher: GM Page 1 3/18/21
OLR Bill Analysis
HB 6394
AN ACT CONCERNING INTEREST ON LOTTERY SALES AGENT
DELINQUENCY ASSESSMENTS.
SUMMARY
This bill requires that the interest charged on lottery sales agents’
(i.e., licensed lottery ticket retailers’) delinquency assessments be
calculated using simple rather than compound interest, which is the
current practice (see BACKGROUND) . By law, delinquency
assessments are equal to 10% of the amount due or $10, whichever is
greater, plus interest at a rate of 1.5% per month or part of a month
that elapses between the due date and payment date.
For delinquency assessments outstanding on June 30, 2021, the bill
allows sales agents to request a hardship waiver from the Department
of Consumer Protection (DCP) commissioner to reduce what is owed,
by recalculating the interest owed using simple interest. Sales agents
can apply beginning July 1, 2021.
EFFECTIVE DATE: July 1, 2021
BACKGROUND
Current Practice Regarding Interest Charged
A May 5, 2010, declaratory ruling interpreting CGS § 12-569 issued
by the executive director for the former Division of Special Revenue
held that the statute supports imposing delinquency assessments using
compound interest calculations. (PA 11-51 eliminated the division and
transferred its responsibilities to DCP.) DCP currently uses compound
interest calculations on delinquency assessments.
Delinquency Assessments
By law, lottery sales agents are delinquent when they fail to remit
money due from their lottery ticket sales by the settlement dates 2021HB-06394-R000084-BA.DOCX
Researcher: GM Page 2 3/18/21
established by the Connecticut Lottery Corporation (CLC). The CLC
president is responsible for making delinquency determinations and
notifying the DCP commissioner, who in turn must impose the
delinquency assessments (CGS § 12-569; Conn. Agencies Regs. §§ 12-
568a-1 and -13).
COMMITTEE ACTION
Public Safety and Security Committee
Joint Favorable
Yea 23 Nay 0 (03/04/2021)