LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570-R02- SB.docx 1 of 56 General Assembly Substitute Bill No. 570 January Session, 2021 AN ACT AUTHORIZING A TRIBAL RESORT-CASINO IN BRIDGEPORT, SPORTS W AGERING, ONLINE CASINO GAMING AND ONLINE LOTTERY. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (NEW) (Effective July 1, 2021) For the purposes of this 1 section and sections 2 to 13, inclusive, of this act: 2 (1) "Electronic wagering platform" means the combination of 3 hardware, software and data networks used to manage, administer, 4 offer or control sports wagering or commercial casino gaming over the 5 Internet, including through an Internet web site or a mobile device; 6 (2) "E-sports" means electronic sports and competitive video games 7 played as a game of skill; 8 (3) "Fantasy contest" has the same meaning as provided in section 12-9 578aa of the general statutes; 10 (4) "Gross gaming revenue from keno" means the total of all sums 11 actually received by the Connecticut Lottery Corporation from 12 operating keno both through lottery sales agents and through the 13 corporation's Internet web site, online service or mobile application less 14 the total of all sums paid as winnings to patrons and any federal excise 15 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 2 of 56 tax applicable to such sums received, provided (A) the total of all sums 16 paid as winnings to such patrons shall not include the cash equivalent 17 value of any merchandise or thing of value included in a jackpot or 18 payout, and (B) coupons or credits that are issued to patrons as part of 19 a promotional program and actually played by the patrons shall not be 20 included in the calculation of gross gaming revenue, provided if the 21 aggregate amount of such coupons and credits played during a calendar 22 month (i) exceeds twenty-five per cent of the total amount of gross 23 gaming revenue for that month, for any month during the first year of 24 the operation of keno pursuant to section 4 of this act, (ii) exceeds twenty 25 per cent of the total amount of gross gaming revenue for that month, for 26 any month during the second year of the operation of keno pursuant to 27 section 4 of this act, or (iii) exceeds fifteen per cent of the total amount 28 of gross gaming revenue for that month, for any month during the third 29 or succeeding year of the operation of keno pursuant to section 4 of this 30 act, then twenty-five per cent of the applicable excess face amount of 31 coupons or credits used in such calendar month shall be included in the 32 calculation of gross gaming revenue; 33 (5) "Gross gaming revenue from online casino gaming" means the 34 total of all sums actually received by an operator of online casino 35 gaming less the total of all sums paid as winnings to patrons of the 36 operator of online casino gaming and any federal excise tax applicable 37 to such sums received, provided (A) the total of all sums paid as 38 winnings to such patrons shall not include the cash equivalent value of 39 any merchandise or thing of value included in a jackpot or payout, and 40 (B) coupons or credits that are issued to patrons as part of a promotional 41 program and actually played by the patrons shall not be included in the 42 calculation of gross gaming revenue, provided if the aggregate amount 43 of such coupons and credits played during a calendar month (i) exceeds 44 twenty-five per cent of the total amount of gross gaming revenue for 45 that month, for any month during the first year of the operation of online 46 casino gaming, (ii) exceeds twenty per cent of the total amount of gross 47 gaming revenue for that month, for any month during the second year 48 of the operation of online casino gaming, or (iii) exceeds fifteen per cent 49 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 3 of 56 of the total amount of gross gaming revenue for that month, for any 50 month during the third or succeeding year of the operation of online 51 casino gaming, then twenty-five per cent of the applicable excess face 52 amount of coupons or credits used in such calendar month shall be 53 included in the calculation of gross gaming revenue; 54 (6) "Gross gaming revenue from sports wagering" means the total of 55 all sums actually received by an operator of sports wagering less the 56 total of all sums paid as winnings to patrons of the operator of sports 57 wagering and any federal excise tax applicable to such sums received, 58 provided (A) the total of all sums paid as winnings to such patrons shall 59 not include the cash equivalent value of any merchandise or thing of 60 value included in a jackpot or payout, and (B) coupons or credits that 61 are issued to patrons as part of a promotional program and actually 62 played by the patrons shall not be included in the calculation of gross 63 gaming revenue, provided if the aggregate amount of such coupons and 64 credits played during a calendar month (i) exceeds twenty-five per cent 65 of the total amount of gross gaming revenue for that month, for any 66 month during the first year of the operation of sports wagering, (ii) 67 exceeds twenty per cent of the total amount of gross gaming revenue for 68 that month, for any month during the second year of the operation of 69 sports wagering, or (iii) exceeds fifteen per cent of the total amount of 70 gross gaming revenue for that month, for any month during the third or 71 succeeding year of the operation of sports wagering, then twenty-five 72 per cent of the applicable excess face amount of coupons or credits used 73 in such calendar month shall be included in the calculation of gross 74 gaming revenue; 75 (7) "Indian lands" has the same meaning as provided in the Indian 76 Gaming Regulatory Act, 25 USC 2703; 77 (8) "Keno" has the same meaning as provided in section 12-801 of the 78 general statutes, as amended by this act; 79 (9) "Lottery draw game" means any game in which one or more 80 numbers, letters or symbols are randomly drawn at predetermined 81 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 4 of 56 times, from a range of numbers, letters or symbols, and prizes are paid 82 to players possessing winning plays, as set forth in each game's official 83 game rules. "Lottery draw game" does not include keno; 84 (10) "Mashantucket Pequot memorandum of understanding" means 85 the memorandum of understanding entered into by and between the 86 state and the Mashantucket Pequot Tribe on January 13, 1993, as 87 amended from time to time; 88 (11) "Mashantucket Pequot procedures" means the Final 89 Mashantucket Pequot Gaming Procedures prescribed by the Secretary 90 of the United States Department of the Interior pursuant to 25 USC 91 2710(d)(7)(B)(vii) and published in 56 Federal Register 24996 (May 31, 92 1991), as amended from time to time; 93 (12) "Mohegan compact" means the Tribal-State Compact entered 94 into by and between the state and the Mohegan Tribe of Indians of 95 Connecticut on May 17, 1994, as amended from time to time; 96 (13) "Mohegan memorandum of understanding" means the 97 memorandum of understanding entered into by and between the state 98 and the Mohegan Tribe of Indians of Connecticut on May 17, 1994, as 99 amended from time to time; 100 (14) "Online casino gaming" means (A) slots, blackjack, craps, 101 roulette, baccarat, poker and video poker, bingo, live dealer and other 102 peer-to-peer games, and any variations of them, and (B) any games 103 authorized by the Department of Consumer Protection, conducted over 104 the Internet, including through an Internet web site or a mobile device, 105 through an electronic wagering platform that does not require a bettor 106 to be physically present at a facility; 107 (15) "Online sports wagering" means sports wagering conducted over 108 the Internet, including through an Internet web site or a mobile device, 109 through an electronic wagering platform that does not require a sports 110 bettor to be physically present at a facility that conducts retail sports 111 wagering; 112 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 5 of 56 (16) "Retail sports wagering" means sports wagering using any 113 system or method of wagering requiring a sports bettor to be physically 114 present at a facility in this state; 115 (17) "Skin" means the branded or cobranded name and logo on the 116 interface of an Internet web site or a mobile application that bettors use 117 to access an electronic wagering platform for online casino gaming or 118 online sports wagering; 119 (18) "Sporting event" means any (A) sporting or athletic event at 120 which two or more persons participate and receive compensation in 121 excess of actual expenses for such participation in such sporting or 122 athletic event, (B) sporting or athletic event sponsored by an 123 intercollegiate athletic program of an institution of higher education, or 124 (C) e-sports. "Sporting event" does not include horse racing or a sporting 125 or athletic event sponsored by a minor league; and 126 (19) "Sports wagering" means risking or accepting any money, credit, 127 deposit or other thing of value for gain contingent in whole or in part, 128 (A) by any system or method of wagering, including, but not limited to, 129 in person or over the Internet through an Internet web site or a mobile 130 device, and (B) based on (i) a sporting event or a portion or portions of 131 a sporting event, including future or propositional events during such 132 an event, or (ii) the individual performance statistics of an athlete or 133 athletes in a sporting event or a combination of sporting events. "Sports 134 wagering" does not include the payment of an entry fee to play fantasy 135 contests, or an entry fee to participate in e-sports. 136 Sec. 2. (NEW) (Effective July 1, 2021) (a) The Governor may enter into 137 amendments to the Mashantucket Pequot procedures and to the 138 Mashantucket Pequot memorandum of understanding with the 139 Mashantucket Pequot Tribe and amendments to the Mohegan compact 140 and to the Mohegan memorandum of understanding with the Mohegan 141 Tribe of Indians of Connecticut, or new compacts with the 142 Mashantucket Pequot Tribe or the Mohegan Tribe of Indians of 143 Connecticut, or both, to: 144 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 6 of 56 (1) Permit the Mashantucket Pequot Tribe and Mohegan Tribe of 145 Indians of Connecticut to conduct (A) retail sports wagering on Indian 146 lands, (B) online sports wagering, provided an individual may only 147 place a sports wager through such online sports wagering if the 148 individual is physically present on Indian lands when placing the 149 wager, and (C) fantasy contests on Indian lands; 150 (2) Provide that any new compact or amendment to the 151 Mashantucket Pequot procedures and the Mohegan compact shall not 152 terminate the moratorium against the operation of video facsimile 153 games by the Mashantucket Pequot Tribe and the Mohegan Tribe of 154 Indians of Connecticut on each tribe's reservation, and include 155 provisions in any new compact or amendment to each tribe's 156 memorandum of understanding that the new compact or amendment 157 does not relieve each tribe from each tribe's obligation to contribute a 158 percentage of the gross operating revenues of video facsimile games to 159 the state as provided in each tribe's memorandum of understanding, if 160 state law at any time authorizes: 161 (A) The Mashantucket Pequot Tribe and the Mohegan Tribe of 162 Indians of Connecticut to each operate outside of Indian lands (i) one 163 skin for online sports wagering; (ii) one skin for online casino gaming; 164 and (iii) fantasy contests; 165 (B) The Connecticut Lottery Corporation to operate (i) retail sports 166 wagering at up to fifteen facilities throughout the state, any number of 167 which may be located at facilities specified in section 12-571a of the 168 general statutes and operated by the person or business organization 169 licensed to operate the off-track betting system pursuant to chapter 226 170 of the general statutes, provided no facility shall be located within 171 twenty-five miles of Indian lands; (ii) one skin for online sports 172 wagering outside of Indian lands, provided such skin is not operated or 173 co-branded with a tribal or commercial casino owner or operator, and 174 does not promote or market retail commercial casino gaming of any 175 kind; (iii) a program to sell lottery tickets for lottery draw games 176 through the corporation's Internet web site, online service or mobile 177 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 7 of 56 application, provided lottery drawings occur regularly and not more 178 frequently than once every four minutes; and (iv) keno both through 179 lottery sales agents and through the corporation's Internet web site, 180 online service or mobile application, provided drawings occur not more 181 frequently than once every three minutes and the state makes payments 182 to the Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of 183 Connecticut each in the amount of twelve and one-half per cent of the 184 gross gaming revenue from keno; and 185 (C) A person or entity to be licensed to operate fantasy contests 186 outside of Indian lands. 187 (3) Provide that any amendment or new compact entered into 188 pursuant to this section, except a provision of such an amendment or 189 new compact entered into pursuant to subparagraph (B)(iii) of 190 subdivision (2) of this subsection or related to keno through lottery sales 191 agents and entered into pursuant to subparagraph (B)(iv) of subdivision 192 (2) of this subsection, shall be valid for an initial term of ten years and 193 an optional five-year renewal term, provided any such renewal term 194 shall only be effective if mutually consented to and exercised by the 195 Governor and both the Mashantucket Pequot Tribe and the Mohegan 196 Tribe of Indians of Connecticut; 197 (4) Provide that the authority of either the Mashantucket Pequot 198 Tribe or the Mohegan Tribe of Indians of Connecticut to conduct online 199 sports wagering, online casino gaming and fantasy contests outside of 200 Indian lands shall cease if the tribe operates E-bingo machines for 201 purposes of class II gaming under the Indian Gaming Regulatory Act, 202 25 USC 2701, et seq., at a casino on Indian lands in this state at any time 203 during the ten-year initial term of the amendments or new compacts, as 204 described in subdivision (3) of this subsection, provided such cessation 205 of authority for either tribe shall not affect the authorization of the other 206 tribe or the Connecticut Lottery Corporation to conduct activities 207 authorized pursuant to this subsection; and 208 (5) Provide that the amendments or new compacts entered into 209 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 8 of 56 pursuant to this section, except a provision of such an amendment or 210 new compact entered into pursuant to subparagraph (B)(iii) of 211 subdivision (2) of this subsection or related to keno through lottery sales 212 agents and entered into pursuant to subparagraph (B)(iv) of subdivision 213 (2) of this subsection, shall cease to be effective if: 214 (A) Any provision of an amendment or new compact entered into 215 pursuant to this section, other than a provision of such an amendment 216 or new compact entered into pursuant to subparagraph (B)(iii) of 217 subdivision (2) of this subsection or related to keno through lottery sales 218 agents and entered into pursuant to subparagraph (B)(iv) of subdivision 219 (2) of this subsection, is held invalid by a court of competent jurisdiction 220 in a final judgment which is not appealable; 221 (B) Any provision of sections 1 to 13, inclusive, 19 or 20 of this act, 222 except for those provisions regarding keno through lottery sales agents 223 and the sale of lottery tickets for lottery draw games through the 224 corporation's Internet web site, online service or mobile application, is 225 held invalid by a court of competent jurisdiction in a final judgment 226 which is not appealable; or 227 (C) Any amendment made to the provisions of the general statutes 228 pursuant to this act, except for those regarding keno through lottery 229 sales agents and the sale of lottery tickets for lottery draw games 230 through the corporation's Internet web site, online service or mobile 231 application, is held invalid by a court of competent jurisdiction in a final 232 judgment which is not appealable. 233 (b) Notwithstanding the provisions of section 3-6c of the general 234 statutes, each amendment or new compact, or renewal thereof, entered 235 into by the Governor with the Mashantucket Pequot Tribe or Mohegan 236 Tribe of Indians of Connecticut pursuant to subsection (a) of this section 237 shall be considered approved by the General Assembly under section 3-238 6c of the general statutes upon the Governor entering into such an 239 agreement or new compact, or renewal thereof, without any further 240 action required by the General Assembly. 241 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 9 of 56 (c) Any amendments or new compacts entered into pursuant to this 242 section shall be effective and final upon approval by the Secretary of the 243 United States Department of Interior in accordance with federal law. If 244 such approval is overturned by a court of competent jurisdiction in a 245 final judgment, which is not appealable, the provisions of sections 1 to 246 13, inclusive, 19 and 20 of this act, and the amendment made to the 247 provisions of the general statutes pursuant to this act, shall cease to be 248 effective. 249 Sec. 3. (NEW) (Effective July 1, 2021) (a) The Commissioner of 250 Consumer Protection may issue licenses permitting the Mashantucket 251 Pequot Tribe to operate one skin for online sports wagering within the 252 state and one skin for online casino gaming within the state, provided: 253 (1) Amendments to the Mashantucket Pequot procedures and to the 254 Mashantucket Pequot memorandum of understanding or a new 255 compact with the Mashantucket Pequot Tribe, pursuant to section 2 of 256 this act, are effective; 257 (2) Regulations adopted by the commissioner pursuant to section 7 of 258 this act are effective; and 259 (3) Online sports wagering and online casino gaming is operated 260 pursuant to the provisions of sections 6 to 10, inclusive, of this act. 261 (b) The Commissioner of Consumer Protection may issue licenses 262 permitting the Mohegan Tribe of Indians of Connecticut to operate one 263 skin for online sports wagering within the state and one skin for online 264 casino gaming within the state, provided: 265 (1) Amendments to the Mohegan compact and to the Mohegan 266 memorandum of understanding, or a new compact with the Mohegan 267 Tribe of Indians of Connecticut, pursuant to section 2 of this act, are 268 effective; 269 (2) Regulations adopted by the commissioner pursuant to section 7 of 270 this act are effective; and 271 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 10 of 56 (3) Online sports wagering and online casino gaming are operated 272 pursuant to the provisions of sections 6 to 10, inclusive, of this act. 273 (c) Any license issued pursuant to subsection (a) or (b) of this section 274 shall expire (1) upon the expiration of any new compact or amendment, 275 or renewal thereof, entered into pursuant to section 2 of this act, or (2) if 276 the tribe holding such license operates E-bingo machines for purposes 277 of class II gaming under the Indian Gaming Regulatory Act, 25 USC 278 2701, et seq., at a casino on Indian lands in this state at any time during 279 the ten-year initial term of any amendment or new compact, as 280 described in subdivision (3) of subsection (a) of section 2 of this act. 281 (d) The Mashantucket Pequot Tribe or the Mohegan Tribe of Indians 282 of Connecticut may enter into an agreement with a person or entity for 283 the provision of services for a skin authorized pursuant to this section. 284 Sec. 4. (NEW) (Effective July 1, 2021) (a) If amendments to the 285 Mashantucket Pequot procedures and to the Mashantucket Pequot 286 memorandum of understanding with the Mashantucket Pequot Tribe 287 and amendments to the Mohegan compact and to the Mohegan 288 memorandum of understanding with the Mohegan Tribe of Indians of 289 Connecticut, or new compacts with the Mashantucket Pequot Tribe, 290 Mohegan Tribe of Indians of Connecticut, or both, pursuant to section 2 291 of this act, are effective, the Connecticut Lottery Corporation may 292 operate: 293 (1) Retail sports wagering pursuant to sections 6 to 8, inclusive, of this 294 act, at not more than fifteen facilities located throughout the state, 295 provided (A) no such facility shall be located within twenty-five miles 296 of Indian lands, (B) the corporation may develop new facilities in the 297 cities of Bridgeport and Hartford, and (C) any number of such fifteen 298 facilities may be located at facilities authorized pursuant to section 12-299 571a of the general statutes and operated by the person or business 300 organization licensed to operate the off-track betting system pursuant 301 to chapter 226 of the general statutes, under an operating agreement 302 with such person or business organization; 303 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 11 of 56 (2) One skin for online sports wagering pursuant to sections 6 to 8, 304 inclusive, of this act; 305 (3) Keno through lottery sales agents of such corporation and through 306 the corporation's Internet web site, online service or mobile application, 307 provided: 308 (A) Any electronic platform or combination of hardware, software 309 and data networks used to manage, administer, offer or control keno 310 over the Internet, including through an Internet web site or a mobile 311 device, shall, at a minimum, be developed to: (i) Verify that an 312 individual with a keno account is eighteen years of age or older and is 313 located in the state, (ii) provide a mechanism to prevent the 314 unauthorized use of a keno account, and (iii) maintain the security of 315 data and other confidential information; 316 (B) Drawings may occur not more frequently than once every three 317 minutes; and 318 (C) The state shall make payments to the Mashantucket Pequot Tribe 319 and the Mohegan Tribe of Indians of Connecticut each in the amount of 320 twelve and one-half per cent of the gross gaming revenue from keno; 321 and 322 (4) A program to sell lottery tickets for lottery draw games through 323 the corporation's Internet web site, online service or mobile application, 324 provided: 325 (A) Lottery draw games for which tickets are sold through the 326 program occur regularly and not more frequently than once every four 327 minutes; 328 (B) The corporation submits to the Commissioner of Consumer 329 Protection official game rules for each lottery draw game the 330 corporation seeks to offer through the program, and the corporation 331 may not offer a lottery draw game through the program until the 332 commissioner approves, in writing, the official rules for such game; 333 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 12 of 56 (C) The corporation verifies that a person who establishes an online 334 lottery account to purchase a lottery ticket through such program is 335 eighteen years of age or older and is located in the state; 336 (D) Any transaction to sell lottery tickets shall be initiated and 337 received within the state; 338 (E) The program (i) allows a person to establish an online lottery 339 account and use a credit card, debit card or verified bank account to 340 purchase lottery tickets through such account, (ii) limits a person with 341 an online lottery account to the use of only one debit card or credit card, 342 and (iii) provides that any money in an online lottery account belongs 343 solely to the owner of the account and may be withdrawn by the owner; 344 (F) The corporation establishes a voluntary self-exclusion process to 345 allow a person to exclude himself or herself from establishing an online 346 lottery account or purchasing a lottery ticket through such program; 347 (G) At least every five years, the program is subject to an independent 348 review for responsible play as assessed by industry standards; 349 (H) The program provides responsible gambling and problem 350 gambling information; 351 (I) The corporation limits the amount of money a person may (i) 352 deposit into an online lottery account, and (ii) spend per day through 353 such program; and 354 (J) The results of lottery draw game drawings are displayed on the 355 corporation's Internet web site, online service or mobile application, 356 provided the lottery draw game drawings may not take place on the 357 corporation's Internet web site, online service or mobile application. 358 (b) The Connecticut Lottery Corporation shall not conduct any of the 359 activities authorized by subsection (a) of this section until regulations 360 concerning such activity are adopted and effective pursuant to section 7 361 of this act. 362 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 13 of 56 (c) After establishing a program to sell lottery tickets for lottery draw 363 games through the corporation's Internet web site, online service or 364 mobile application pursuant to subsection (a) of this section, the 365 corporation: (1) May implement initiatives to promote the purchase of 366 lottery tickets through lottery sales agents; (2) may implement initiatives 367 to promote the purchase of both online lottery draw games and the 368 purchase of lottery tickets through lottery sales agents; and (3) shall 369 conduct a public awareness campaign to educate the public regarding 370 responsible gambling and to inform the public of the programs available 371 for the prevention, treatment and rehabilitation of compulsive gamblers 372 in the state. 373 (d) The authority of the Connecticut Lottery Corporation to conduct 374 retail sports wagering pursuant to subdivision (1) of subsection (a) of 375 this section and online sports wagering pursuant to subdivision (2) of 376 subsection (a) of this section shall expire upon the expiration of any new 377 compact or amendment, or renewal thereof, entered into pursuant to 378 section 2 of this act. 379 Sec. 5. (NEW) (Effective July 1, 2021) (a) If the Connecticut Lottery 380 Corporation is authorized to conduct retail sports wagering pursuant to 381 section 4 of this act, said corporation may enter into one or more 382 agreements with a person or business organization licensed to operate 383 the off-track betting system pursuant to chapter 226 of the general 384 statutes to operate retail sports wagering at any of the system facilities 385 authorized for off-track betting under section 12-571a of the general 386 statutes, provided the total number of facilities that may conduct retail 387 sports wagering, whether operated directly by the corporation or by 388 such person or business organization, shall not exceed fifteen. 389 (b) If a person or business organization licensed to operate the off-390 track betting system pursuant to chapter 226 of the general statutes 391 operates retail sports wagering under an agreement under subsection 392 (a) of this section, such retail sports wagering shall be conducted 393 pursuant to sections 6 to 8, inclusive, of this act. 394 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 14 of 56 (c) Any agreement to conduct retail sports wagering pursuant to 395 subsection (a) of this section shall expire upon the expiration of any new 396 compact or amendment, or renewal thereof, entered into pursuant to 397 section 2 of this act. 398 Sec. 6. (NEW) (Effective July 1, 2021) (a) An individual may only place 399 a sports wager on a sporting event through retail sports wagering or 400 online sports wagering conducted outside of Indian lands or place a 401 wager through online casino gaming conducted outside of Indian lands, 402 if the wagering is authorized pursuant to sections 3 to 5, inclusive, of 403 this act, and the individual (1) has attained the age of twenty-one, and 404 (2) is physically present in the state when placing the wager. 405 (b) Any electronic wagering platform used for conducting online 406 sports wagering or online casino gaming shall be developed to: (1) 407 Verify that an individual with a wagering account is twenty-one years 408 of age or older and is physically present in the state when placing a 409 wager, (2) provide a mechanism to prevent the unauthorized use of a 410 wagering account, and (3) maintain the security of wagering data and 411 other confidential information. 412 Sec. 7. (NEW) (Effective July 1, 2021) The Commissioner of Consumer 413 Protection shall adopt regulations, in accordance with the provisions of 414 chapter 54 of the general statutes, and to the extent not prohibited by 415 federal law or any gaming agreement or procedure entered into 416 pursuant to the Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 417 2701 et seq., to implement the provisions of sections 3 to 6, inclusive, of 418 this act. Such regulations shall address the operation of, participation in 419 and advertisement of, sports wagering, online casino gaming, keno and 420 sales of lottery tickets for lottery draw games through an Internet web 421 site, online service or mobile application, designation of additional 422 games that may be permitted as online casino gaming and any other 423 provisions to protect the public interest in the integrity of gaming. 424 Sec. 8. (NEW) (Effective July 1, 2021) (a) The Mashantucket Pequot 425 Tribe and the Mohegan Tribe of Indians of Connecticut shall each pay 426 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 15 of 56 to the state for deposit in the General Fund: (1) Thirteen and three-427 quarters per cent of the gross gaming revenue from sports wagering, for 428 online sports wagering authorized under section 3 of this act and 429 conducted outside of Indian lands, provided ten per cent of such 430 payments, or twenty million dollars, whichever is less, shall be 431 transferred from the General Fund each fiscal year to the state-wide 432 tourism marketing account, established pursuant to section 10-395a of 433 the general statutes; and (2) (A) eighteen per cent of the gross gaming 434 revenue from online casino gaming, for online casino gaming 435 authorized under section 3 of this act and conducted outside of Indian 436 lands, and occurring during the first five years of operation of such 437 gaming, or (B) twenty per cent of the gross gaming revenue from online 438 casino gaming, for online casino gaming authorized under section 3 of 439 this act conducted outside of Indian lands, and occurring during the 440 sixth and any succeeding year of operation of such gaming. Each tribe 441 shall make such payment not later than thirty days after the date that 442 operation of online sports wagering and online casino gaming 443 commences under section 3 of this act, and on a monthly basis thereafter 444 while such online sports wagering or online casino gaming is 445 conducted. 446 (b) The Connecticut Lottery Corporation shall pay to the state for 447 deposit in the General Fund, thirteen and three-quarters per cent of the 448 gross gaming revenue from sports wagering, as a result of conducting 449 retail sports wagering and online sports wagering, authorized under 450 section 4 of this act. The corporation shall make such payment not later 451 than thirty days after the date that operation of retail sports wagering 452 and online sports wagering commences under section 4 of this act, and 453 on a monthly basis thereafter while such retail sports wagering and 454 online sports wagering is conducted. 455 (c) A person or business organization licensed to operate the off-track 456 betting system pursuant to chapter 226 of the general statutes operating 457 retail sports wagering at any of the system facilities authorized for off-458 track betting under section 12-571a of the general statutes pursuant to 459 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 16 of 56 an agreement with the Connecticut Lottery Corporation, shall pay to the 460 state for deposit in the General Fund, thirteen and three-quarters per 461 cent of the gross gaming revenue from sports wagering, from the retail 462 sports wagering authorized under section 5 of this act. Such person or 463 business organization shall make such payment not later than thirty 464 days after the date that operation of retail sports wagering commences 465 under section 5 of this act, and on a monthly basis thereafter while such 466 retail sports wagering is conducted. 467 Sec. 9. (NEW) (Effective July 1, 2021) (a) (1) At the commencement of 468 any fiscal year that online sports wagering or online casino gaming is 469 conducted pursuant to section 3 of this act outside of Indian lands and 470 on or before September thirtieth in each fiscal year thereafter, the 471 Commissioner of Consumer Protection shall estimate and assess, after 472 consultation with the Mashantucket Pequot Tribe and the Mohegan 473 Tribe of Indians of Connecticut, the reasonable and necessary costs that 474 will be incurred by the department in the next fiscal year to regulate the 475 operation of such wagering or gaming under sections 3, 6 and 7 of this 476 act by each tribe. 477 (2) At the commencement of any fiscal year that a person or business 478 organization licensed to operate the off-track betting system pursuant 479 to chapter 226 of the general statutes operates retail sports wagering 480 pursuant to section 5 of this act and on or before September thirtieth in 481 each fiscal year thereafter, the Commissioner of Consumer Protection 482 shall estimate and assess, after consultation with such person or 483 business organization, the reasonable and necessary costs that will be 484 incurred by the department in the next fiscal year to regulate the 485 operation of such wagering under sections 5 to 7, inclusive, of this act 486 by such person or organization. 487 (3) The estimated costs under subdivision (1) or (2) of this subsection 488 shall not exceed the estimate of expenditure requirements transmitted 489 by the commissioner pursuant to section 4-77 of the general statutes. The 490 assessment for any fiscal year shall be: (A) Reduced pro rata by the 491 amount of any surplus from the assessment of the prior fiscal year, 492 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 17 of 56 which shall be maintained in accordance with subsection (d) of this 493 section, or (B) increased pro rata by the amount of any deficit from the 494 assessment of the prior fiscal year. 495 (b) The Mashantucket Pequot Tribe, the Mohegan Tribe of Indians of 496 Connecticut and a person or business organization licensed to operate 497 the off-track betting system pursuant to chapter 226 of the general 498 statutes shall each pay to the commissioner the amount assessed to such 499 tribe or person or organization pursuant to subsection (a) of this section 500 not later than the date specified by the commissioner for payment, 501 provided such date is not less than thirty days from the date of such 502 assessment. The commissioner shall remit to the State Treasurer all 503 funds received pursuant to this section. 504 (c) (1) There is established a fund to be known as the "State Sports 505 Wagering and Online Gaming Regulatory Fund". The fund shall contain 506 any moneys required or permitted to be deposited in the fund and shall 507 be held by the Treasurer separate and apart from all other moneys, 508 funds and accounts. Any balance remaining in said fund at the end of 509 any fiscal year shall be carried forward in said fund for the fiscal year 510 next succeeding. Moneys in the fund shall be expended by the Treasurer 511 for the purposes of paying the costs incurred by the department to 512 regulate sports wagering and online casino gaming. 513 (2) The Treasurer shall deposit all funds received pursuant to 514 subsection (b) of this section in the State Sports Wagering and Online 515 Gaming Regulatory Fund. 516 (d) On or before September thirtieth, annually, the Comptroller shall 517 calculate the actual reasonable and necessary costs incurred by the 518 department to regulate retail sports wagering, online sports wagering 519 or online casino gaming during the prior fiscal year. The Treasurer shall 520 set aside amounts received pursuant to subsection (b) of this section in 521 excess of such actual costs. Such excess amounts shall be considered a 522 surplus for the purposes of subsection (a) of this section. 523 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 18 of 56 (e) If the Mashantucket Pequot Tribe, the Mohegan Tribe of Indians 524 of Connecticut or the person or business organization licensed to 525 operate the off-track betting system pursuant to chapter 226 of the 526 general statutes is aggrieved by an assessment under the provisions of 527 this section, the tribe or person or business organization may request a 528 hearing before the commissioner not later than thirty days after such 529 assessment. The commissioner shall hold such hearing, in accordance 530 with the provisions of chapter 54 of the general statutes, not later than 531 thirty days after receiving such request. 532 Sec. 10. (NEW) (Effective July 1, 2021) (a) Any payment to the state 533 made by the Mashantucket Pequot Tribe under section 8 of this act 534 during the five-year period commencing on the date that said tribe 535 began operating online sports wagering and online casino gaming 536 pursuant to section 3 of this act shall count toward the calculation of the 537 "minimum contribution" for such tribe pursuant to the Mashantucket 538 Pequot memorandum of understanding. 539 (b) Any payment to the state made by the Mohegan Tribe of Indians 540 of Connecticut under section 8 of this act during the five-year period 541 commencing on the date that said tribe began operating online sports 542 wagering and online casino gaming pursuant to section 3 of this act shall 543 count toward the calculation of the "minimum contribution" for such 544 tribe pursuant to the Mohegan memorandum of understanding. 545 Sec. 11. (NEW) (Effective July 1, 2021) Any equipment, including the 546 electronic wagering platform, that supports online casino gaming or 547 online sports wagering shall be located in a facility in the city of 548 Bridgeport, unless such equipment is located on Indian lands. Any 549 personnel necessary to support such equipment shall be assigned to 550 such facility. 551 Sec. 12. (NEW) (Effective July 1, 2021) (a) Neither the Mashantucket 552 Pequot Tribe nor the Mohegan Tribe of Indians of Connecticut may 553 allow a third-party vendor to operate a skin for online sports wagering 554 or online casino gaming on behalf of the tribe unless: 555 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 19 of 56 (1) The tribe seeking to allow such operation files a request, 556 documenting the terms of the agreement between the tribe and the 557 third-party vendor regarding such operation, with the clerks of the 558 House of Representatives and the Senate, and 559 (2) The General Assembly approves such request pursuant to 560 subsection (b) of this section. 561 (b) The General Assembly may approve a request under subsection 562 (a) of this section, in whole, by a majority vote of each house or may 563 reject such request, in whole, by a majority vote of either house. If 564 rejected, the request shall not be valid and shall not be implemented. 565 The request shall be deemed rejected if the General Assembly fails to 566 vote to approve or reject the request (1) prior to the adjournment of the 567 regular session of the General Assembly during which such request is 568 filed, (2) prior to the adjournment of the regular session of the General 569 Assembly first following the date on which such request is filed if the 570 General Assembly is not in regular session on such date, or (3) prior to 571 the adjournment of a special session convened before the next regular 572 session of the General Assembly for the purpose of considering such 573 request if the General Assembly is not in regular session on the date on 574 which such request is filed, provided, if the request is filed less than 575 thirty days before the end of a regular session, the General Assembly 576 may vote to approve or reject the request (A) within thirty days after the 577 first day of a special session convened before the next regular session of 578 the General Assembly for the purpose of considering such request, or 579 (B) within thirty days after the first day of the next regular session of the 580 General Assembly. 581 Sec. 13. (Effective July 1, 2021) MMCT Venture, LLC, as defined in 582 section 12-578f of the general statutes, as amended by this act, may issue 583 a request for proposals to the city of Bridgeport regarding the 584 establishment of a casino gaming facility in the city. The request shall 585 include, but need not be limited to, a description of the needs of MMCT 586 Venture, LLC, for the purpose of establishing and carrying on the 587 business of a casino gaming facility. The city of Bridgeport may respond 588 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 20 of 56 to such request and may enter into a development agreement with 589 MMCT Venture, LLC, regarding the establishment of a casino gaming 590 facility in the city. 591 Sec. 14. Section 12-586f of the general statutes is repealed and the 592 following is substituted in lieu thereof (Effective July 1, 2021): 593 (a) For the purposes of this section, "tribe" means the Mashantucket 594 Pequot Tribe and "compact" means the Tribal-State Compact between 595 the tribe and the state of Connecticut, as incorporated and amended in 596 the Final Mashantucket Pequot Gaming Procedures prescribed by the 597 Secretary of the United States Department of the Interior pursuant to 598 Section 2710(d)(7)(B)(vii) of Title 25 of the United States Code and 599 published in 56 Federal Register 24996 (May 31, 1991), as amended from 600 time to time. 601 (b) The expenses of administering the provisions of the compact shall 602 be financed as provided in this section. Assessments for regulatory costs 603 incurred by any state agency which are subject to reimbursement by the 604 tribe in accordance with the provisions of the compact shall be made by 605 the Commissioner of Revenue Services in accordance with the 606 provisions of the compact, including provisions respecting adjustment 607 of excess assessments. Any underassessment for a prior fiscal year may 608 be included in a subsequent assessment but shall be specified as such. 609 Payments made by the tribe in accordance with the provisions of the 610 compact shall be deposited in the General Fund and shall be credited to 611 the appropriation for the state agency incurring such costs. 612 (c) Assessments for law enforcement costs incurred by any state 613 agency which are subject to reimbursement by the tribe in accordance 614 with the provisions of the compact shall be made by the Commissioner 615 of Emergency Services and Public Protection in accordance with the 616 provisions of the compact, including provisions respecting adjustment 617 of excess assessments. Any underassessment for a prior fiscal year may 618 be included in a subsequent assessment but shall be specified as such. 619 Payments made by the tribe in accordance with the provisions of the 620 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 21 of 56 compact shall be deposited in the General Fund and shall be credited to 621 the appropriation for the state agency incurring such costs. 622 (d) If the tribe is aggrieved due to any assessment levied pursuant to 623 such compact and this section or by any failure to adjust an excess 624 assessment in accordance with the provisions of the compact and this 625 section, it may, not later than thirty days after the time provided for the 626 payment of such assessment, appeal therefrom in accordance with the 627 terms of the compact, to the superior court for the judicial district of 628 Hartford, which appeal shall be accompanied by a citation to the 629 Commissioner of Consumer Protection to appear before said court. Such 630 citation shall be signed by the same authority, and such appeal shall be 631 returnable at the same time and served and returned in the same 632 manner as is required in case of a summons in a civil action. Proceedings 633 in such matter shall be conducted in the same manner as provided for 634 in section 38a-52. 635 (e) The Commissioner of Consumer Protection shall require each 636 applicant for a casino gaming employee license, casino gaming service 637 license or casino gaming equipment license to submit to state and 638 national criminal history records checks before such license is issued. 639 The criminal history records checks required pursuant to this subsection 640 shall be conducted in accordance with section 29-17a. 641 Sec. 15. Section 12-586g of the general statutes is repealed and the 642 following is substituted in lieu thereof (Effective July 1, 2021): 643 (a) For the purposes of this section, "tribe" means the Mohegan Tribe 644 of Indians of Connecticut and "compact" means the Tribal-State 645 Compact between the tribe and the state of Connecticut, dated May 17, 646 1994, as amended from time to time. 647 (b) The expenses of administering the provisions of the compact shall 648 be financed as provided in this section. Assessments for regulatory costs 649 incurred by any state agency which are subject to reimbursement by the 650 tribe in accordance with the provisions of the compact shall be made by 651 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 22 of 56 the Commissioner of Revenue Services in accordance with the 652 provisions of the compact, including provisions respecting adjustment 653 of excess assessments. Any underassessment for a prior fiscal year may 654 be included in a subsequent assessment but shall be specified as such. 655 Payments made by the tribe in accordance with the provisions of the 656 compact shall be deposited in the General Fund and shall be credited to 657 the appropriation for the state agency incurring such costs. 658 (c) Assessments for law enforcement costs incurred by any state 659 agency which are subject to reimbursement by the tribe in accordance 660 with the provisions of the compact shall be made by the Commissioner 661 of Emergency Services and Public Protection in accordance with the 662 provisions of the compact, including provisions respecting adjustment 663 of excess assessments. Any underassessment for a prior fiscal year may 664 be included in a subsequent assessment but shall be specified as such. 665 Payments made by the tribe in accordance with the provisions of the 666 compact shall be deposited in the General Fund and shall be credited to 667 the appropriation for the state agency incurring such costs. 668 (d) If the tribe is aggrieved due to any assessment levied pursuant to 669 such compact and this section or by any failure to adjust an excess 670 assessment in accordance with the provisions of the compact and this 671 section, it may, not later than thirty days after the time provided for the 672 payment of such assessment, appeal therefrom in accordance with the 673 terms of the compact, to the superior court for the judicial district of 674 New Britain, which appeal shall be accompanied by a citation to the 675 Commissioner of Consumer Protection to appear before said court. Such 676 citation shall be signed by the same authority, and such appeal shall be 677 returnable at the same time and served and returned in the same 678 manner as is required in case of a summons in a civil action. Proceedings 679 in such matter shall be conducted in the same manner as provided for 680 in section 38a-52. 681 (e) The Commissioner of Consumer Protection shall require each 682 applicant for a casino gaming employee license, casino gaming service 683 license or casino gaming equipment license to submit to state and 684 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 23 of 56 national criminal history records checks before such license is issued. 685 The criminal history records checks required pursuant to this subsection 686 shall be conducted in accordance with section 29-17a. 687 Sec. 16. Section 12-578aa of the general statutes is repealed and the 688 following is substituted in lieu thereof (Effective July 1, 2021): 689 (a) For the purposes of this section: 690 (1) "Entry fee" means the amount of cash or cash equivalent that is 691 required to be paid by a fantasy contest player to a fantasy contest 692 operator to participate in a fantasy contest; 693 (2) "Fantasy contest" means any online fantasy or simulated game or 694 contest with an entry fee in which: (A) The value of all prizes and 695 awards offered to winning fantasy contest players is established and 696 made known to the players in advance of the game or contest; (B) all 697 winning outcomes reflect the knowledge and skill of the players and are 698 determined predominantly by accumulated statistical results of the 699 performance of individuals, including athletes in the case of sporting 700 events; and (C) no winning outcome is based on the score, point spread 701 or any performance of any single actual team or combination of teams 702 or solely on any single performance of an individual athlete or player in 703 any single actual sporting event. Fantasy contests [shall] do not include 704 lottery games; 705 (3) "Fantasy contest operator" means a person or entity that [operates] 706 is licensed to operate a fantasy contest and offers such fantasy contest to 707 members of the general public in the state; 708 (4) "Fantasy contest player" means a person who participates in a 709 fantasy contest offered by a fantasy contest operator; 710 (5) "Gross receipts" means the amount equal to the total of all entry 711 fees that a fantasy contest operator collects from all fantasy contest 712 players, less the total of all sums paid out as prizes to all fantasy contest 713 players, multiplied by the location percentage; and 714 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 24 of 56 (6) "Location percentage" means the percentage rounded to the 715 nearest tenth of a per cent of the total of entry fees collected from fantasy 716 contest players located in the state, divided by the total of entry fees 717 collected from all fantasy contest players. [;] 718 [(7) "Mashantucket Pequot memorandum of understanding" means 719 the memorandum of understanding entered into by and between the 720 state and the Mashantucket Pequot Tribe on January 13, 1993, as 721 amended on April 30, 1993; 722 (8) "Mashantucket Pequot procedures" mea ns the Final 723 Mashantucket Pequot Gaming Procedures prescribed by the Secretary 724 of the United States Department of the Interior pursuant to Section 725 2710(d)(7)(B)(vii) of Title 25 of the United States Code and published in 726 56 Federal Register 24996 (May 31, 1991); 727 (9) "Mohegan compact" means the Tribal-State Compact entered into 728 by and between the state and the Mohegan Tribe of Indians of 729 Connecticut on May 17, 1994; and 730 (10) "Mohegan memorandum of understanding" means the 731 memorandum of understanding entered into by and between the state 732 and the Mohegan Tribe of Indians of Connecticut on May 17, 1994. 733 (b) The provisions of this section shall not be effective unless the 734 following conditions have been met: 735 (1) The Governor enters into amendments to the Mashantucket 736 Pequot procedures and to the Mashantucket Pequot memorandum of 737 understanding with the Mashantucket Pequot Tribe and amendments 738 to the Mohegan compact and to the Mohegan memorandum of 739 understanding with the Mohegan Tribe of Indians of Connecticut 740 concerning the authorization of fantasy contests in the state. 741 (2) The amendments to the Mashantucket Pequot procedures and the 742 Mohegan compact shall include a provision that the authorization of 743 fantasy contests in the state does not terminate the moratorium against 744 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 25 of 56 the operation of video facsimile games by the Mashantucket Pequot 745 Tribe and Mohegan Tribe of Indians of Connecticut on each tribe's 746 reservation. 747 (3) The amendments to each tribe's memorandum of understanding 748 shall include a provision that the authorization of fantasy contests in the 749 state does not relieve each tribe from each tribe's obligation to contribute 750 a percentage of the gross operating revenues of video facsimile games 751 to the state as provided in each tribe's memorandum of understanding. 752 (4) The amendments to the Mashantucket Pequot procedures, the 753 Mashantucket Pequot memorandum of understanding, the Mohegan 754 compact and the Mohegan memorandum of understanding are 755 approved or deemed approved by the Secretary of the United States 756 Department of the Interior pursuant to the federal Indian Gaming 757 Regulatory Act, P.L. 100-497, 25 USC 2701 et seq., and its implementing 758 regulations. If such approval is overturned by a court in a final 759 judgment, which is not appealable, the authorization provided under 760 this section shall cease to be effective. 761 (5) The amendments to the Mashantucket Pequot procedures and to 762 the Mohegan compact are approved by the General Assembly pursuant 763 to section 3-6c. 764 (6) The amendments to the Mashantucket Pequot memorandum of 765 understanding and to the Mohegan memorandum of understanding are 766 approved by the General Assembly pursuant to the process described 767 in section 3-6c.] 768 (b) The Commissioner of Consumer Protection may issue licenses 769 permitting the operation of fantasy contests outside of Indian lands, 770 provided: 771 (1) Amendments to the Mashantucket Pequot procedures and to the 772 Mashantucket Pequot memorandum of understanding with the 773 Mashantucket Pequot Tribe and amendments to the Mohegan compact 774 and to the Mohegan memorandum of understanding with the Mohegan 775 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 26 of 56 Tribe of Indians of Connecticut, or new compacts with the 776 Mashantucket Pequot Tribe, Mohegan Tribe of Indians of Connecticut 777 or both, or renewals thereof, pursuant to section 2 of this act, are 778 effective; and 779 (2) Fantasy contests are conducted pursuant to the provisions of this 780 section. 781 (c) (1) If the Mashantucket Pequot Tribe or Mohegan Tribe of Indians 782 of Connecticut holds a license pursuant to subsection (b) of this section, 783 such tribe's license shall expire if the tribe operates E-bingo machines 784 for purposes of class II gaming under the Indian Gaming Regulatory 785 Act, 25 USC 2701, et seq., at a casino on Indian lands in this state at any 786 time during the ten-year initial term of any new amendment or new 787 compact, as described in subdivision (3) of subsection (a) of section 2 of 788 this act. 789 (2) All licenses issued pursuant to subsection (b) of this section shall 790 expire upon the expiration of any new compact or amendment, or 791 renewal thereof, entered into pursuant to section 2 of this act. 792 [(c)] (d) Not later than [July 1, 2018] January 1, 2022, the 793 Commissioner of Consumer Protection shall adopt regulations, in 794 accordance with the provisions of chapter 54, regarding the licensing, 795 operation of, participation in and advertisement of fantasy [contest] 796 contests in the state. Such regulations shall protect fantasy contest 797 players who pay an entry fee to play fantasy contests from unfair or 798 deceptive acts or practices. Such regulations shall include, but need not 799 be limited to: (1) A prohibition on fantasy contest operators allowing 800 persons under the age of eighteen to participate in a fantasy contest 801 offered by such operators; (2) protections for fantasy contest players' 802 funds on deposit with fantasy contest operators; (3) requirements 803 regarding truthful advertising by fantasy contest operators; (4) 804 procedures to ensure the integrity of fantasy contests offered by fantasy 805 contest operators; (5) procedures to ensure that fantasy contest 806 operators provide fantasy contest players with: (A) Information 807 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 27 of 56 regarding responsible playing and places to seek assistance for 808 addictive or compulsive behavior, and (B) protections against 809 compulsive behavior; and (6) reporting requirements and procedures to 810 demonstrate eligibility for a reduction of the initial [registration] 811 licensing fee and annual [registration] licensing renewal fee pursuant to 812 subsection [(d)] (e) of this section. 813 [(d)] (e) (1) [Not later than sixty days after the adoption of regulations 814 pursuant to subsection (c) of this section, and thereafter, each fantasy 815 contest operator that operates fantasy contests in the state shall register 816 annually with the Commissioner of Consumer Protection on a form 817 prescribed by the commissioner.] Each fantasy contest operator shall 818 [submit] pay an initial [registration] licensing fee of fifteen thousand 819 dollars and an annual [registration] licensing renewal fee of fifteen 820 thousand dollars, except that the commissioner shall reduce the initial 821 [registration fee] and annual [registration] licensing fee so that such fees 822 do not exceed ten per cent of the gross receipts of such operator for the 823 [registration] licensing period. 824 (2) To demonstrate the eligibility of a fantasy contest operator for a 825 reduction of the initial [registration fee] or annual [registration] renewal 826 fee pursuant to subdivision (1) of this subsection, the fantasy contest 827 operator shall provide to the commissioner, in a manner prescribed by 828 the commissioner, an estimation of the gross receipts such operator 829 expects to receive [in] during the upcoming [registration] licensing 830 period. Prior to renewing a [registration] license where such operator 831 paid a reduced [registration] licensing fee for the previous [registration] 832 licensing period, or after a [registration] licensing period where such 833 operator should have paid a reduced fee for the previous [registration] 834 licensing period, such operator shall submit to the commissioner, in a 835 manner prescribed by the commissioner, the actual amount of gross 836 receipts received by such operator [in] during the previous [registration] 837 licensing period. The commissioner shall calculate the difference, if any, 838 between the estimated gross receipts and the actual gross receipts and 839 determine if the [registration] licensing fee previously paid by such 840 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 28 of 56 operator was the correct amount. If such operator paid an amount in 841 excess of the amount determined to be the correct amount of the 842 [registration] licensing fee, the commissioner shall refund such operator 843 accordingly or credit such amount against the [registration] licensing fee 844 for the upcoming [registration] licensing period, provided such operator 845 renews his or her [registration] license. If such operator did not pay the 846 amount determined to be the correct amount of the [registration] 847 licensing fee, such operator shall pay to the commissioner the difference 848 between the correct amount and the [registration] licensing fee 849 previously paid. 850 [(e)] (f) Any person who violates any provision of this section or any 851 regulation adopted pursuant to subsection [(c)] (d) of this section shall 852 be fined not more than one thousand dollars for each violation. 853 Sec. 17. Section 12-578f of the general statutes is repealed and the 854 following is substituted in lieu thereof (Effective July 1, 2021): 855 (a) For the purposes of this section and section 12-578g: 856 (1) "Authorized games" means any game of chance, including, but not 857 limited to, blackjack, poker, dice, money-wheels, roulette, baccarat, 858 chuck-a-luck, pan game, over and under, horse race game, acey-deucy, 859 beat the dealer, bouncing ball, video facsimile game and any other game 860 of chance authorized by the Commissioner of Consumer Protection. 861 "Authorized games" does not include sports wagering, as defined in 862 section 1 of this act; 863 (2) "Mashantucket Pequot memorandum of understanding" means 864 the memorandum of understanding entered into by and between the 865 state and the Mashantucket Pequot Tribe on January 13, 1993, as 866 amended on April 30, 1993; 867 (3) "Mashantucket Pequot procedures" means the Final 868 Mashantucket Pequot Gaming Procedures prescribed by the Secretary 869 of the United States Department of the Interior pursuant to Section 870 2710(d)(7)(B)(vii) of Title 25 of the United States Code and published in 871 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 29 of 56 56 Federal Register 24996 (May 31, 1991); 872 (4) "MMCT Venture, LLC" means a limited liability company 873 described in subsection (d) of this section; 874 (5) "Mohegan compact" means the Tribal-State Compact entered into 875 by and between the state and the Mohegan Tribe of Indians of 876 Connecticut on May 17, 1994; and 877 (6) "Mohegan memorandum of understanding" means the 878 memorandum of understanding entered into by and between the state 879 and the Mohegan Tribe of Indians of Connecticut on May 17, 1994. 880 (b) MMCT Venture, LLC, is authorized to conduct authorized games 881 (1) at a casino gaming facility at 171 Bridge Street, East Windsor, 882 Connecticut, and (2) at a casino gaming facility in the city of Bridgeport, 883 established under a development agreement pursuant to section 13 of 884 this act. 885 (c) Such authorization shall not be effective unless the following 886 conditions have been met: 887 (1) (A) The Governor enters into amendments to the Mashantucket 888 Pequot procedures and to the Mashantucket Pequot memorandum of 889 understanding with the Mashantucket Pequot Tribe and amendments 890 to the Mohegan compact and to the Mohegan memorandum of 891 understanding with the Mohegan Tribe of Indians of Connecticut 892 concerning the operation of a casino gaming facility in the state. 893 (B) The amendments to the Mashantucket Pequot procedures and the 894 Mohegan compact shall include a provision that the authorization of 895 MMCT Venture, LLC, to conduct authorized games in the state does not 896 terminate the moratorium against the operation of video facsimile 897 games by the Mashantucket Pequot Tribe and Mohegan Tribe of Indians 898 of Connecticut on each tribe's reservation. 899 (C) The amendments to each tribe's memorandum of understanding 900 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 30 of 56 shall include a provision that the authorization of MMCT Venture, LLC, 901 to conduct authorized games in the state does not relieve each tribe from 902 each tribe's obligation to contribute a percentage of the gross operating 903 revenues of video facsimile games to the state as provided in each tribe's 904 memorandum of understanding. 905 (2) The amendments to the Mashantucket Pequot procedures, the 906 Mashantucket Pequot memorandum of understanding, the Mohegan 907 compact and the Mohegan memorandum of understanding are 908 approved or deemed approved by the Secretary of the United States 909 Department of the Interior pursuant to the federal Indian Gaming 910 Regulatory Act, P.L. 100-497, 25 USC 2701 et seq., and its implementing 911 regulations. If such approval is overturned by a court in a final 912 judgment, which is not appealable, the authorization provided under 913 this section shall cease to be effective. 914 (3) The amendments to the Mashantucket Pequot procedures and to 915 the Mohegan compact are approved by the General Assembly pursuant 916 to section 3-6c. 917 (4) The amendments to the Mashantucket Pequot memorandum of 918 understanding and to the Mohegan memorandum of understanding are 919 approved by the General Assembly pursuant to the process described 920 in section 3-6c. 921 (5) The governing bodies of the Mashantucket Pequot Tribe and 922 Mohegan Tribe of Indians of Connecticut enact resolutions providing: 923 (A) That if MMCT Venture, LLC, fails to pay any fees or taxes due the 924 state, the tribes, as the members of MMCT Venture, LLC, waive the 925 possible defense of sovereign immunity with respect to any action or 926 claim by the state against the tribes as the members of MMCT Venture, 927 LLC, to the extent such action or claim is permitted to be brought against 928 a member of a limited liability company under state law to collect any 929 fees or taxes, while preserving any other defenses available to the tribes, 930 and (B) that the venue for such action or claim shall be in the judicial 931 district of Hartford. 932 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 31 of 56 (d) Such authorization shall apply to MMCT Venture, LLC, provided: 933 (1) MMCT Venture, LLC, is a limited liability company jointly and 934 exclusively owned by the Mashantucket Pequot Tribe and the Mohegan 935 Tribe of Indians of Connecticut; (2) no other person or business 936 organization holds an equity interest in MMCT Venture, LLC; and (3) 937 each tribe holds at least a twenty-five per cent equity interest in MMCT 938 Venture, LLC. If MMCT Venture, LLC, ceases to be a limited liability 939 company jointly and exclusively owned by the Mashantucket Pequot 940 Tribe and the Mohegan Tribe of Indians of Connecticut in which each 941 tribe holds at least a twenty-five per cent equity interest, such 942 authorization shall be void. 943 (e) Notwithstanding the provisions of subsections (b) and (c) of this 944 section, the authorization to conduct authorized games at a casino 945 gaming facility at 171 Bridge Street, East Windsor, Connecticut shall not 946 be effective during the ten-year initial term that amendments to the 947 Mashantucket Pequot procedures and to the Mashantucket Pequot 948 memorandum of understanding with the Mashantucket Pequot Tribe 949 and amendments to the Mohegan compact and to the Mohegan 950 memorandum of understanding with the Mohegan Tribe of Indians of 951 Connecticut, or new compacts with the Mashantucket Pequot Tribe or 952 the Mohegan Tribe of Indians of Connecticut, or both entered into 953 pursuant to section 2 of this act are effective, as described in subdivision 954 (3) of subsection (b) of section 2 of this act. 955 Sec. 18. Section 12-806c of the general statutes is repealed and the 956 following is substituted in lieu thereof (Effective July 1, 2021): 957 (a) Notwithstanding the provisions of section 3-6c, the Secretary of 958 the Office of Policy and Management, on behalf of the state of 959 Connecticut, may enter into separate agreements with the 960 Mashantucket Pequot Tribe and the Mohegan Tribe of Indians of 961 Connecticut concerning the operation of keno by the Connecticut 962 Lottery Corporation in the state of Connecticut. Any such agreement 963 shall provide that the state of Connecticut shall distribute to each tribe 964 a sum not to exceed a twelve and one-half per cent share of the gross 965 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 32 of 56 operating revenue received by the state from the operation of keno. The 966 corporation may not operate keno until such separate agreements are 967 effective. For the purposes of this section, "gross operating revenues" 968 means the total amounts wagered, less amounts paid out as prizes. 969 (b) The provisions of this section shall cease to be effective once 970 amendments to the Mashantucket Pequot procedures and to the 971 Mashantucket Pequot memorandum of understanding with the 972 Mashantucket Pequot Tribe and amendments to the Mohegan compact 973 and to the Mohegan memorandum of understanding with the Mohegan 974 Tribe of Indians of Connecticut, or new compacts with the 975 Mashantucket Pequot Tribe, Mohegan Tribe of Indians of Connecticut, 976 or both, governing the operation of keno by the Connecticut Lottery 977 Corporation, pursuant to section 2 of this act, are effective. 978 Sec. 19. (NEW) (Effective July 1, 2021) The Connecticut Lottery 979 Corporation shall establish a fund into which all revenue of the program 980 to sell lottery tickets for lottery draw games through the corporation's 981 Internet web site, online service or mobile application, established 982 pursuant to this section 4 of this act, shall be deposited, from which all 983 payments and expenses of the corporation for such program shall be 984 paid and from which transfers to the debt-free community college 985 account, established in section 20 of this act, shall be made pursuant to 986 subsection (d) of section 12-812 of the general statutes, as amended by 987 this act. 988 Sec. 20. (NEW) (Effective from passage) (a) There is established an 989 account to be known as the "debt-free community college account" 990 which shall be a separate, nonlapsing account within the General Fund. 991 The account shall contain any moneys required by law to be deposited 992 in the account, including, but not limited to, deposits from the 993 Connecticut Lottery Corporation in accordance with subsection (d) of 994 section 12-812 of the general statutes, as amended by this act. Moneys in 995 the account shall be expended by the Board of Regents for Higher 996 Education for the purposes of the debt-free community college program 997 established pursuant to section 10a-174 of the general statutes. 998 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 33 of 56 (b) Not later than thirty days after the initial offering of lottery tickets 999 for lottery draw games through the Connecticut Lottery Corporation's 1000 Internet web site, online service or mobile application pursuant to 1001 section 4 of this act, and on January first annually thereafter, the 1002 president of said corporation shall estimate and report to the Board of 1003 Regents for Higher Education the anticipated amount of the deposit 1004 required pursuant to subsection (d) of section 12-812 of the general 1005 statutes, as amended by this act, or the anticipated net revenue from 1006 such online offering during the current and next fiscal year. 1007 Sec. 21. Section 12-801 of the general statutes is repealed and the 1008 following is substituted in lieu thereof (Effective July 1, 2021): 1009 As used in section 12-563a, as amended by this act, and sections 12-1010 800 to 12-818, inclusive, the following terms [shall] have the following 1011 meanings unless the context clearly indicates another meaning: 1012 (1) "Board" or "board of directors" means the board of directors of the 1013 corporation; 1014 (2) "Corporation" means the Connecticut Lottery Corporation as 1015 created under section 12-802; 1016 (3) "Division" means the former Division of Special Revenue in the 1017 Department of Revenue Services; 1018 (4) "Lottery" means (A) the Connecticut state lottery conducted prior 1019 to the transfer authorized under section 12-808 by the Division of Special 1020 Revenue, (B) after such transfer, the Connecticut state lottery conducted 1021 by the corporation pursuant to sections 12-563a, as amended by this act, 1022 and 12-800 to 12-818, inclusive, and section 4 of this act, (C) the state 1023 lottery referred to in subsection (a) of section 53-278g, and (D) keno 1024 conducted by the corporation pursuant to section 12-806c, as amended 1025 by this act, or section 4 of this act; 1026 (5) "Keno" means a lottery game in which a subset of numbers are 1027 drawn from a larger field of numbers by a central computer system 1028 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 34 of 56 using an approved random number generator, wheel system device or 1029 other drawing device; [. "Keno" does not include a game operated on a 1030 video facsimile machine;] 1031 (6) "Lottery fund" means a fund or funds established by, and under 1032 the management and control of, the corporation, into which all lottery 1033 revenues of the corporation are deposited, from which all payments and 1034 expenses of the corporation are paid and from which transfers to the 1035 General Fund or the Connecticut Teachers' Retirement Fund Bonds 1036 Special Capital Reserve Fund, established in section 10-183vv, are made 1037 pursuant to section 12-812, as amended by this act, but "lottery fund" 1038 does not include the fund, as provided in section 19 of this act, for the 1039 revenues and payments from the program to sell lottery tickets for 1040 lottery draw games through the corporation's Internet web site, online 1041 service or mobile application established pursuant to section 4 of this 1042 act; [and] 1043 (7) "Online sports wagering" has the same meaning as provided in 1044 section 1 of this act; 1045 [(7)] (8) "Operating revenue" means total revenue received from 1046 lottery sales less all cancelled sales and amounts paid as prizes but 1047 before payment or provision for payment of any other expenses; 1048 (9) "Retail sports wagering" has the same meaning as provided in 1049 section 1 of this act; and 1050 (10) "Skin" has the same meaning as provided in section 1 of this act. 1051 Sec. 22. Section 12-806 of the general statutes is repealed and the 1052 following is substituted in lieu thereof (Effective July 1, 2021): 1053 (a) The purposes of the corporation shall be to: (1) Operate and 1054 manage the lottery, and operate and manage retail sports wagering and 1055 online sports wagering if authorized to do so pursuant to section 4 of 1056 this act, in an entrepreneurial and business-like manner free from the 1057 budgetary and other constraints that affect state agencies; (2) provide 1058 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 35 of 56 continuing and increased revenue to the people of the state through the 1059 lottery, and retail sports wagering and online sports wagering if 1060 authorized to operate such wagering pursuant to section 4 of this act, by 1061 being responsive to market forces and acting generally as a corporation 1062 engaged in entrepreneurial pursuits; (3) pay to the trustee of the 1063 Connecticut Teachers' Retirement Fund Bonds Special Capital Reserve 1064 Fund, established in section 10-183vv, the amounts, if any, required 1065 pursuant to subsection (c) of section 12-812, as amended by this act; and 1066 (4) ensure that the lottery, [continues] and retail sports wagering and 1067 online sports wagering, if authorized to operate such wagering 1068 pursuant to section 4 of this act, continue to be operated with integrity 1069 and for the public good. 1070 (b) The corporation shall have the following powers: 1071 (1) To receive as transferee from the state of Connecticut all of the 1072 tangible and intangible assets constituting the lottery including the 1073 exclusive right to operate the lottery as the exclusive lottery of the state 1074 and, subject to subsection (b) of section 12-808, to assume and discharge 1075 all of the agreements, covenants and obligations of the Department of 1076 Consumer Protection entered into which constitute a part of the 1077 operation and management of the lottery; 1078 (2) To operate and manage the lottery consistent with the provisions 1079 of sections 1-120, 1-121, 1-125, 12-563, 12-563a, as amended by this act, 1080 12-564, 12-566, 12-568a and 12-569, subsection (c) of section 12-574, [and] 1081 sections 12-800 to 12-818, inclusive, and section 4 of this act, and as 1082 specifically provided in section 12-812, as amended by this act; 1083 (3) To have perpetual succession as a body corporate and to adopt 1084 bylaws, policies and procedures for the operation of its affairs and 1085 conduct of its businesses; 1086 (4) (A) To introduce new lottery games, modify existing lottery 1087 games, utilize existing and new technologies, determine distribution 1088 channels for the sale of lottery tickets, introduce keno pursuant to signed 1089 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 36 of 56 agreements with the Mashantucket Pequot Tribe and the Mohegan 1090 Tribe of Indians of Connecticut, in accordance with section 12-806c, as 1091 amended by this act, or pursuant to section 4 of this act, and, to the 1092 extent specifically authorized by regulations adopted by the 1093 Department of Consumer Protection pursuant to chapter 54, introduce 1094 instant ticket vending machines, kiosks and automated wagering 1095 systems or machines, with all such rights being subject to regulatory 1096 oversight by the Department of Consumer Protection; [, except that the 1097 corporation shall not offer any interactive on-line lottery games, 1098 including on-line video lottery games for promotional purposes;] and 1099 (B) (i) To sell lottery draw games through the corporation's Internet 1100 web site, online service or mobile application in accordance with section 1101 4 of this act and to advertise lottery games on the corporation's Internet 1102 web site, online service or mobile application; and (ii) to offer interactive 1103 lottery games for promotional purposes through the corporation's 1104 Internet web site, online service or mobile application, provided (I) there 1105 is no cost to play such interactive lottery games for promotional 1106 purposes, (II) no prizes or rewards of any monetary value are awarded 1107 for playing such interactive lottery games for promotional purposes, 1108 and (III) no lottery ticket purchase is required to play such interactive 1109 lottery games for promotional purposes. The corporation shall not offer 1110 any interactive lottery game, including for promotional purposes, 1111 except as expressly permitted pursuant to this subdivision; 1112 (5) To establish an annual budget of revenues and expenditures, 1113 along with reasonable reserves for working capital, c apital 1114 expenditures, debt retirement and other anticipated expenditures, in a 1115 manner and at levels considered by the board of directors as appropriate 1116 and prudent; 1117 (6) To adopt such administrative and operating procedures which the 1118 board of directors deems appropriate; 1119 (7) To enter into agreements with one or more states or territories of 1120 the United States for the promotion and operation of joint lottery games 1121 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 37 of 56 and to continue to participate in any joint lottery game in which the 1122 corporation participates on July 1, 2003, regardless of whether any 1123 government-authorized lottery operated outside of the United States 1124 participates in such game; 1125 (8) Subject to the provisions of section 12-815, as amended by this act, 1126 to enter into agreements with vendors with respect to (A) the operation 1127 and management of the lottery, including operation of lottery terminals, 1128 management services, printing of lottery tickets, management expertise, 1129 marketing expertise, advertising or such other goods or services as the 1130 board of directors deems necessary and appropriate, and (B) services 1131 related to operation of a skin for online sport wagering; 1132 (9) To purchase or lease operating equipment, including, but not 1133 limited to, computer gaming and automated wagering systems and to 1134 employ agents or employees to operate such systems; 1135 (10) To retain unclaimed prize funds as additional revenue for the 1136 state, or to use unclaimed prize funds to increase sales, or to return to 1137 participants unclaimed prize funds in a manner designed to increase 1138 sales; 1139 (11) To establish prize reserve accounts as the board of directors 1140 deems appropriate; 1141 (12) To pay lottery prizes as awarded under section 12-812, as 1142 amended by this act, to purchase annuities to fund such prizes, and to 1143 assure that all annuities from which payments to winners of lottery 1144 prizes are made are invested in instruments issued by agencies of the 1145 United States government and backed by the full faith and credit of the 1146 United States, or are issued by insurance companies licensed to do 1147 business in the state, provided the issuer has been determined by the 1148 Department of Consumer Protection to be financially stable and meets 1149 the minimum investment rating as determined by the department; 1150 (13) To pay the Office of Policy and Management to reimburse the 1151 Department of Consumer Protection for the reasonable and necessary 1152 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 38 of 56 costs arising from the department's regulatory oversight of the 1153 operation of the lottery, keno, retail sports wagering and online sports 1154 wagering by the corporation, in accordance with the assessment made 1155 pursuant to section 12-806b, including costs arising directly or indirectly 1156 from the licensing of lottery agents, performance of state police 1157 background investigations, and the implementation of subsection (b) of 1158 section 12-562 and sections 12-563a, as amended by this act, 12-568a, 12-1159 569, 12-570, 12-570a and 12-800 to 12-818, inclusive, and section 4 of this 1160 act; 1161 (14) In the event that the operation or management of the corporation 1162 becomes subject to the federal gaming occupation tax, to pay such tax 1163 on behalf of lottery sales agents and to assist agents subject thereto; 1164 (15) To determine the commissions payable to lottery sales agents, 1165 provided any agent's commission shall not average less than four per 1166 cent of such agent's lottery sales; 1167 (16) To invest in, acquire, lease, purchase, own, manage, hold and 1168 dispose of real property and lease, convey or deal in or enter into 1169 agreements with respect to such property on any terms necessary or 1170 incidental to carrying out the purposes of sections 12-563a, as amended 1171 by this act, and 12-800 to 12-818, inclusive, provided such transactions 1172 shall not be subject to approval, review or regulation pursuant to title 1173 4b or any other statute by any state agency, except that real property 1174 transactions shall be subject to review by the State Properties Review 1175 Board; 1176 (17) To borrow money for the purpose of obtaining working capital; 1177 (18) To hold patents, copyrights, trademarks, marketing rights, 1178 licenses or any other evidence of protection or exclusivity issued under 1179 the laws of the United States or any state; 1180 (19) To employ such assistants, agents and other employees as may 1181 be necessary or desirable to carry out its purposes in accordance with 1182 sections 12-563a, as amended by this act, and 12-800 to 12-818, inclusive, 1183 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 39 of 56 and section 4 and sections 6 to 8, inclusive, of this act, to fix their 1184 compensation and, subject to the provisions of subsections (e) and (f) of 1185 section 12-802, establish all necessary and appropriate personnel 1186 practices and policies; to engage consultants, accountants, attorneys and 1187 financial and other independent professionals as may be necessary or 1188 desirable to assist the corporation in performing its purposes in 1189 accordance with sections 12-563a, as amended by this act, and 12-800 to 1190 12-818, inclusive, and section 4 and sections 6 to 8, inclusive, of this act; 1191 (20) To make and enter into all contracts and agreements necessary 1192 or incidental to the performance of its duties and the execution of its 1193 powers under sections 12-563a, as amended by this act, and 12-800 to 1194 12-818, inclusive, and section 4 and sections 6 to 8, inclusive, of this act; 1195 (21) In its own name, to sue and be sued, plead and be impleaded, 1196 adopt a seal and alter the same at pleasure; 1197 (22) Subject to the approval of the board and to the requirement to 1198 remit excess lottery funds to the General Fund as set forth in section 12-1199 812, as amended by this act, to invest any funds not needed for 1200 immediate use or disbursement, including any funds held in approved 1201 reserve accounts, in investments permitted by sections 3-20 and 3-27a 1202 for the proceeds of state bonds; 1203 (23) To procure insurance against any loss in connection with its 1204 property and other assets in such amounts and from such insurers as it 1205 deems desirable; 1206 (24) To the extent permitted under any contract with other persons to 1207 which the corporation is a party, to consent to any termination, 1208 modification, forgiveness or other change of any term of any contractual 1209 right, payment, royalty, contract or agreement of any kind; 1210 (25) To acquire, lease, purchase, own, manage, hold and dispose of 1211 personal property, and lease, convey or deal in or enter into agreements 1212 with respect to such property on any terms necessary or incidental to 1213 the carrying out of these purposes; 1214 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 40 of 56 (26) To account for and audit funds of the corporation; 1215 (27) To pay or provide for payment from operating revenues all 1216 expenses, costs and obligations incurred by the corporation in the 1217 exercise of the powers of the corporation under sections 12-563a, as 1218 amended by this act, and 12-800 to 12-818, inclusive, and section 4 and 1219 sections 6 to 8, inclusive, of this act; [and] 1220 (28) To operate retail sports wagering at up to fifteen facilities located 1221 throughout the state and one skin for online sports wagering pursuant 1222 to the provisions of section 4 and sections 6 to 8, inclusive, of this act; 1223 and 1224 [(28)] (29) To exercise any powers necessary to carry out the purposes 1225 of sections 12-563a, as amended by this act, and 12-800 to 12-818, 1226 inclusive, and section 4 and sections 6 to 8, inclusive, of this act. 1227 Sec. 23. Section 12-806a of the general statutes is repealed and the 1228 following is substituted in lieu thereof (Effective July 1, 2021): 1229 As used in this section, "procedure" has the same meaning as 1230 "procedure", as defined in subdivision (2) of section 1-120. The 1231 Department of Consumer Protection shall, for the purposes of section 1232 12-568a, subsection (c) of section 12-574, sections 12-802a and 12-815a, 1233 sections 4 and sections 6 to 8, inclusive, of this act and this section, 1234 regulate the activities of the Connecticut Lottery Corporation to assure 1235 the integrity of the state lottery, retail sports wagering and online sports 1236 wagering. In addition to the requirements of the provisions of chapter 1237 12 and notwithstanding the provisions of section 12-806, as amended by 1238 this act, the Connecticut Lottery Corporation shall, prior to 1239 implementing any procedure designed to assure the integrity of the 1240 state lottery, retail sports wagering or online sports wagering, obtain the 1241 written approval of the Commissioner of Consumer Protection in 1242 accordance with regulations adopted under section 12-568a. 1243 Sec. 24. Section 12-810 of the general statutes is repealed and the 1244 following is substituted in lieu thereof (Effective July 1, 2021): 1245 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 41 of 56 (a) The Freedom of Information Act, as defined in section 1-200, shall 1246 apply to all actions, meetings and records of the corporation, except (1) 1247 where otherwise limited by subsection (c) of this section as to new 1248 lottery games and serial numbers of unclaimed lottery tickets, [and] (2) 1249 with respect to financial, credit and proprietary information submitted 1250 by any person to the corporation in connection with any proposal to 1251 provide goods, services or professional advice to the corporation as 1252 provided in section 12-815, as amended by this act, and (3) where 1253 otherwise limited by subsection (d) of this section as to information 1254 submitted by any person to the corporation regarding such person's 1255 participation in the corporation's voluntary self-exclusion process 1256 established pursuant to subparagraph (F) of subdivision (4) of 1257 subsection (a) of section 4 of this act. 1258 (b) The records of proceedings as provided in subsection (a) of section 1259 12-805 shall be subject to disclosure pursuant to the provisions of 1260 subsection (a) of section 1-210. 1261 (c) Any new lottery game and the procedures for such game, until the 1262 game is publicly announced by the corporation, and any serial number 1263 of an unclaimed lottery ticket shall not be deemed public records, as 1264 defined in section 1-200, and shall not be available to the public under 1265 the provisions of section 1-210. The president shall submit a fiscal note 1266 prepared by the corporation with respect to the procedures for a new 1267 lottery game to the joint standing committees of the General Assembly 1268 having cognizance of matters relating to finance, revenue, bonding and 1269 public safety after approval of such game by the board. 1270 (d) The name and any personally identifying information of a person 1271 who is participating or who has participated in the corporation's 1272 voluntary self-exclusion process shall not be deemed public records, as 1273 defined in section 1-200, and shall not be available to the public under 1274 the provisions of the Freedom of Information Act, as defined in section 1275 1-200, except that the president may disclose the name and any relevant 1276 records of such person, other than records regarding such person's 1277 participation in the voluntary self-exclusion process, if such person 1278 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 42 of 56 claims a winning lottery ticket from the use of the online lottery 1279 program established pursuant to subdivision (4) of subsection (a) of 1280 section 4 of this act. 1281 Sec. 25. Section 12-811 of the general statutes is repealed and the 1282 following is substituted in lieu thereof (Effective July 1, 2021): 1283 (a) The president and all directors, officers and employees of the 1284 corporation shall be state employees for purposes of sections 1-79 to 1-1285 89, inclusive. 1286 (b) No director, officer or employee of the corporation shall, directly 1287 or indirectly, participate in, or share in the winnings from, a game 1288 conducted pursuant to sections 12-563a, as amended by this act, [and] 1289 12-800 to 12-818, inclusive, section 4 of this act or sections 6 to 8, 1290 inclusive, of this act. 1291 Sec. 26. Section 12-812 of the general statutes is repealed and the 1292 following is substituted in lieu thereof (Effective from passage): 1293 (a) The president of the corporation, subject to the direction of the 1294 board, shall conduct daily, weekly, multistate, special instant or other 1295 lottery games and shall determine the number of times a lottery shall be 1296 held each year, the form and price of the tickets and the aggregate 1297 amount of prizes, which shall not be less than forty-five per cent of the 1298 sales unless required by the terms of any agreement entered into for the 1299 conduct of multistate lottery games. The proceeds of the sale of tickets 1300 shall be deposited in the lottery fund of the corporation from which 1301 prizes shall be paid, upon vouchers signed by the president, or by either 1302 of two persons designated and authorized by him, in such numbers and 1303 amounts as the president determines. The corporation may limit its 1304 liability in games with fixed payouts and may cause a cessation of sales 1305 of tickets of certain designation when such liability limit has been 1306 reached. 1307 (b) The president, subject to the direction of the board, may enter into 1308 agreements for the sale of product advertising on lottery tickets, play 1309 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 43 of 56 slips and other lottery media. 1310 (c) On a weekly basis, the president shall estimate, and certify to the 1311 State Treasurer, that portion of the balance in the lottery fund which 1312 exceeds the current needs of the corporation for the payment of prizes, 1313 the payment of current operating expenses and funding of approved 1314 reserves of the corporation. The corporation shall transfer the amount 1315 so certified from the lottery fund of the corporation to the General Fund 1316 upon notification of receipt of such certification by the Treasurer, except 1317 that if the amount on deposit in the Connecticut Teachers' Retirement 1318 Fund Bonds Special Capital Reserve Fund, established in section 10-1319 183vv, is less than the required minimum capital reserve, as defined in 1320 subsection (b) of said section, the corporation shall pay such amount so 1321 certified to the trustee of the fund for deposit in the fund. If the 1322 corporation transfers any moneys to the General Fund at any time when 1323 the amount on deposit in said capital reserve fund is less than the 1324 required minimum capital reserve, the amount of such transfer shall be 1325 deemed appropriated from the General Fund to the Connecticut 1326 Teachers' Retirement Fund Bonds Special Capital Reserve Fund. 1327 (d) On a weekly basis, the president shall estimate, and certify to the 1328 State Treasurer, that portion of the balance in the fund established 1329 pursuant to section 19 of this act which exceeds the current needs of the 1330 corporation for the payment of prizes, the payment of current operating 1331 expenses and funding of approved reserves of the corporation for the 1332 online lottery program established pursuant to section 4 of this act. The 1333 corporation shall transfer the amount so certified to the debt-free 1334 community college account established pursuant to section 20 of this act 1335 upon notification of receipt of such certification by the State Treasurer. 1336 Sec. 27. Section 12-815 of the general statutes is repealed and the 1337 following is substituted in lieu thereof (Effective July 1, 2021): 1338 (a) (1) The corporation shall establish and adopt specific policies, 1339 rules and procedures on purchasing and contracting. Such policies, 1340 rules and procedures or amendments thereto shall be approved by a 1341 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 44 of 56 two-thirds vote of the entire board. Notwithstanding any other 1342 provision of law to the contrary, the corporation may enter into 1343 management, consulting and other agreements for the provision of 1344 goods, services and professional advisors necessary or useful in 1345 connection with the operation and management of the lottery [(1)] (A) 1346 pursuant to a process of open or competitive bidding, provided [(A)] (i) 1347 the corporation shall first determine the format, content and scope of 1348 any agreement for any procurement of goods or services, the conditions 1349 under which bidding will take place and the schedule and stipulations 1350 for contract award, and [(B)] (ii) the corporation may select the 1351 contractor deemed to have submitted the most favorable bid, 1352 considering price and other factors, when, in the judgment of the 1353 corporation, such award is in the best interests of the corporation, or 1354 [(2)] (B) if the corporation, in its discretion, determines that, due to the 1355 nature of the agreement to be contracted for or procured, open or public 1356 bidding is either impracticable or not in the best interests of the 1357 corporation, by negotiation with such prospective providers as the 1358 corporation may determine. The terms and conditions of agreements 1359 and the fees or other compensation to be paid to such persons shall be 1360 determined by the corporation. The agreements entered into by the 1361 corporation in accordance with the provisions of this section shall not 1362 be subject to the approval of any state department, office or agency, 1363 except as provided in regulations adopted by the Department of 1364 Consumer Protection. Nothing in this section shall be deemed to restrict 1365 the discretion of the corporation to utilize its own staff and workforce 1366 for the performance of any of its assigned responsibilities and functions 1367 whenever, in the discretion of the corporation, it becomes necessary, 1368 convenient or desirable to do so. Copies of all agreements of the 1369 corporation shall be maintained by the corporation at its offices as public 1370 records, subject to said exemption. 1371 (2) The corporation may enter into agreements pursuant to 1372 subdivision (1) of this subsection with vendors for the provision of 1373 services for a skin for online sports wagering, provided such services 1374 (A) are not branded along with an operator of a casino that operates in 1375 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 45 of 56 any jurisdiction, and (B) do not directly or indirectly promote a casino 1376 that operates in another jurisdiction, including through awarding of 1377 players' points, free play, promotions or other marketing activities. If the 1378 corporation enters an agreement with a vendor that is owned by an 1379 operator of a casino in any jurisdiction, the vendor may not share any 1380 customer information with such operator for purposes of marketing or 1381 any other purposes related to acquiring customers. 1382 (b) The corporation shall not be subject to rules, regulations or 1383 restrictions on purchasing or procurement or the disposition of assets 1384 generally applicable to Connecticut state agencies, including those 1385 contained in titles 4a and 4b and the corresponding rules and 1386 regulations. The board shall adopt rules and procedures on purchasing, 1387 procurement and the disposition of assets applicable to the corporation. 1388 The adoption of such rules or procedures shall not be subject to chapter 1389 54. Any such rules or procedures shall be a public record, as defined in 1390 section 1-200. 1391 Sec. 28. Section 12-816 of the general statutes is repealed and the 1392 following is substituted in lieu thereof (Effective July 1, 2021): 1393 The exercise of the powers granted by sections 1-120, 1-121, 1-125, 12-1394 563, 12-563a, as amended by this act, 12-564, 12-566, 12-568a and 12-569, 1395 subsection (c) of section 12-574, [and] sections 12-800 to 12-818, 1396 inclusive, and section 4 and sections 6 to 8, inclusive, of this act 1397 constitute the performance of an essential governmental function and 1398 all operations of the corporation shall be free from any form of federal 1399 or state taxation. In addition, except pursuant to any federal 1400 requirements, the corporation shall not be required to pay any taxes or 1401 assessments upon or in respect to sales of lottery tickets, or any property 1402 or moneys of the corporation, levied by the state or any political 1403 subdivision or municipal taxing authority. The corporation and its 1404 assets, property and revenues shall at all times be free from taxation of 1405 every kind by the state and by the municipalities and all other political 1406 subdivisions or special districts having taxing powers in the state. 1407 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 46 of 56 Sec. 29. Section 12-561 of the general statutes is repealed and the 1408 following is substituted in lieu thereof (Effective July 1, 2021): 1409 No commissioner or unit head or employee of the department shall 1410 directly or indirectly, individually or as a member of a partnership or as 1411 a shareholder of a corporation, have any interest whatsoever in dealing 1412 in any lottery, racing, fronton, or betting enterprise or casino gaming 1413 facility or in the ownership or leasing of any property or premises used 1414 by or for any lottery, racing, fronton, or betting enterprise or casino 1415 gaming facility. No commissioner or unit head shall, directly or 1416 indirectly, (1) wager at any off-track betting facility, race track or fronton 1417 authorized under this chapter, (2) purchase lottery tickets issued under 1418 this chapter, [or] (3) play [, directly or indirectly,] any authorized game 1419 conducted at a casino gaming facility, (4) place a sports wager, as 1420 defined in section 1 of this act, or (5) participate in online casino gaming, 1421 as defined in section 1 of this act. The commissioner may adopt 1422 regulations in accordance with the provisions of chapter 54 to prohibit 1423 any employee of the department from engaging, directly or indirectly, 1424 in any form of legalized gambling activity in which such employee is 1425 involved because of his or her employment with the department. For 1426 purposes of this section, "unit head" means a managerial employee with 1427 direct oversight of a legalized gambling activity. 1428 Sec. 30. Section 12-563a of the general statutes is repealed and the 1429 following is substituted in lieu thereof (Effective July 1, 2021): 1430 The Commissioner of Consumer Protection shall, within available 1431 resources, prepare and distribute informational materials designed to 1432 inform the public of the programs available for the prevention, 1433 treatment and rehabilitation of compulsive gamblers in this state. The 1434 commissioner shall require any casino gaming facility and any person 1435 or business organization which is licensed to sell lottery tickets, operate 1436 an off-track betting system or conduct wagering on racing events or jai 1437 alai games, or conduct retail sports wagering to display such 1438 informational materials at the casino gaming facility and each licensed 1439 premise or retail sports wagering facility, respectively. 1440 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 47 of 56 Sec. 31. Section 52-553 of the general statutes is repealed and the 1441 following is substituted in lieu thereof (Effective July 1, 2021): 1442 All wagers, and all contracts and securities of which the whole or any 1443 part of the consideration is money or other valuable thing won, laid or 1444 bet, at any game, horse race, sport or pastime, and all contracts to repay 1445 any money knowingly lent at the time and place of such game, race, 1446 sport or pastime, to any person so gaming, betting or wagering, or to 1447 repay any money lent to any person who, at such time and place, so 1448 pays, bets or wagers, shall be void, provided nothing in this section shall 1449 (1) affect the validity of any negotiable instrument held by any person 1450 who acquired the same for value and in good faith without notice of 1451 illegality in the consideration, (2) apply to the sale of a raffle ticket 1452 pursuant to section 7-172, (3) apply to online casino gaming, online 1453 sports wagering and retail sports wagering, as such terms are defined 1454 in section 1 of this act, and conducted pursuant to sections 3 to 7, 1455 inclusive, of this act, as applicable, (4) apply to the participation in the 1456 program established by the Connecticut Lottery Corporation pursuant 1457 to section 4 of this act to sell lottery tickets for lottery draw games 1458 through the corporation's Internet web site, online service or mobile 1459 application, or [(3)] (5) apply to any wager or contract otherwise 1460 authorized by law. 1461 Sec. 32. Section 52-554 of the general statutes is repealed and the 1462 following is substituted in lieu thereof (Effective July 1, 2021): 1463 Any person who, by playing at any game, or betting on the sides or 1464 hands of such as play at any game, excluding any game permitted under 1465 chapter 226 or any activity not prohibited under the provisions of 1466 sections 53-278a to 53-278g, inclusive, as amended by this act, loses the 1467 sum or value of one dollar in the whole and pays or delivers the same 1468 or any part thereof, may, within three months next following, recover 1469 from the winner the money or the value of the goods so lost and paid or 1470 delivered, with costs of suit in a civil action, without setting forth the 1471 special matter in his complaint. If the defendant refuses to testify, if 1472 called upon in such action, relative to the discovery of the property so 1473 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 48 of 56 won, [he] the defendant shall be defaulted; but no evidence so given by 1474 [him] the defendant shall be offered against him or her in any criminal 1475 prosecution. Nothing in this section shall prohibit any person from 1476 using a credit card to participate in (1) online casino gaming, online 1477 sports wagering and retail sports wagering, as such terms are defined 1478 in section 1 of this act, and conducted pursuant to sections 3 to 7, 1479 inclusive, of this act, as applicable, or (2) the program established by the 1480 Connecticut Lottery Corporation pursuant to section 4 of this act to sell 1481 lottery tickets for lottery draw games through the corporation's Internet 1482 web site, online service or mobile application. 1483 Sec. 33. Subdivision (2) of section 53-278a of the general statutes is 1484 repealed and the following is substituted in lieu thereof (Effective July 1, 1485 2021): 1486 (2) "Gambling" means risking any money, credit, deposit or other 1487 thing of value for gain contingent in whole or in part upon lot, chance 1488 or the operation of a gambling device, including the playing of a casino 1489 gambling game such as blackjack, poker, craps, roulette or a slot 1490 machine, but does not include: Legal contests of skill, speed, strength or 1491 endurance in which awards are made only to entrants or the owners of 1492 entries; legal business transactions which are valid under the law of 1493 contracts; activity legal under the provisions of sections 7-169 to 7-186, 1494 inclusive; any lottery or contest conducted by or under the authority of 1495 any state of the United States, Commonwealth of Puerto Rico or any 1496 possession or territory of the United States; and other acts or 1497 transactions expressly authorized by law on or after October 1, 1973. 1498 Fantasy contests, as defined in section 12-578aa, as amended by this act, 1499 shall not be considered gambling, provided the conditions set forth in 1500 subsection (b) of section 12-578aa, as amended by this act, have been met 1501 and the operator of such contests is [registered] licensed pursuant to 1502 [subdivision (1) of subsection (d) of] section 12-578aa, as amended by 1503 this act. Online casino gaming, online sports wagering and retail sports 1504 wagering, as such terms are defined in section 1 of this act, shall not be 1505 considered gambling if the online casino gaming, online sports 1506 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 49 of 56 wagering or retail sports wagering is conducted pursuant to sections 3 1507 to 7, inclusive, of this act; 1508 Sec. 34. Subdivision (4) of section 53-278a of the general statutes is 1509 repealed and the following is substituted in lieu thereof (Effective July 1, 1510 2021): 1511 (4) "Gambling device" means any device or mechanism by the 1512 operation of which a right to money, credits, deposits or other things of 1513 value may be created, as the result of the operation of an element of 1514 chance; any device or mechanism which, when operated for a 1515 consideration, does not return the same value or thing of value for the 1516 same consideration upon each operation thereof; any device, 1517 mechanism, furniture or fixture designed primarily for use in 1518 connection with professional gambling; and any subassembly or 1519 essential part designed or intended for use in connection with any such 1520 device, mechanism, furniture, fixture, construction or installation, 1521 provided an immediate and unrecorded right of replay mechanically 1522 conferred on players of pinball machines and similar amusement 1523 devices shall be presumed to be without value. "Gambling device" does 1524 not include a crane game machine or device or a redemption machine. 1525 A device or equipment used to play fantasy contests, as defined in 1526 section 12-578aa, as amended by this act, shall not be considered a 1527 gambling device, provided [the conditions set forth in subsection (b) of 1528 section 12-578aa have been met] such device or equipment is used by a 1529 licensee pursuant to section 12-578aa, as amended by this act. A device 1530 or equipment used to participate in online casino gaming, online sports 1531 wagering or retail sports wagering, as such terms are defined in section 1532 1 of this act, shall not be considered a gambling device if the conditions 1533 set forth in sections 3 to 7, inclusive, of this act, as applicable, have been 1534 met; 1535 Sec. 35. Section 53-278g of the general statutes is repealed and the 1536 following is substituted in lieu thereof (Effective July 1, 2021): 1537 (a) Nothing in sections 53-278a to 53-278f, inclusive, as amended by 1538 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 50 of 56 this act, shall be construed to prohibit the publication of an 1539 advertisement of, or the operation of, or participation in, a state lottery, 1540 pari-mutuel betting at race tracks licensed by the state, off-track betting 1541 conducted by the state or a licensee authorized to operate the off-track 1542 betting system, authorized games at a casino gaming facility, online 1543 casino gaming, online sports wagering and retail sports wagering, as 1544 authorized by sections 3 to 7, inclusive, of this act, a promotional 1545 drawing for a prize or prizes, conducted for advertising purposes by 1546 any person, firm or corporation other than a retail grocer or retail 1547 grocery chain, wherein members of the general public may participate 1548 without making any purchase or otherwise paying or risking credit, 1549 money, or any other tangible thing of value or a sweepstakes conducted 1550 pursuant to sections 42-295 to 42-301, inclusive. 1551 (b) The Mashantucket Pequot [tribe] Tribe and the Mohegan Tribe of 1552 Indians of Connecticut, or their agents, may use and possess at any 1553 location within the state, solely for the purpose of training individuals 1554 in skills required for employment by the tribe or testing a gambling 1555 device, any gambling device which the tribes are authorized to utilize 1556 on their reservations pursuant to the federal Indian Gaming Regulatory 1557 Act; provided no money or other thing of value shall be paid to any 1558 person as a result of the operation of such gambling device in the course 1559 of such training or testing at locations outside of the reservation of the 1560 tribe. Any person receiving such training or testing such device may use 1561 any such device in the course of such training or testing. Whenever 1562 either of said tribes intends to use and possess at any location within the 1563 state any such gambling device for the purpose of testing such device, 1564 the tribe shall give prior notice of such testing to the Department of 1565 Consumer Protection. 1566 (c) Any casino gaming facility, or its agents, may use and possess at 1567 any location within the state, solely for the purpose of training 1568 individuals in skills required for employment by the casino gaming 1569 facility or testing a gambling device, any gambling device which the 1570 casino gaming facility may use for conducting authorized games at the 1571 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 51 of 56 casino gaming facility, provided no money or other thing of value shall 1572 be paid to any person as a result of the operation of such gambling 1573 device in the course of such training or testing at locations outside of the 1574 casino gaming facility. Any person receiving such training or testing 1575 such device may use any such device in the course of such training or 1576 testing. Whenever a casino gaming facility intends to use and possess at 1577 any location within the state any such gambling device for the purpose 1578 of testing such device, the casino gambling facility shall give prior notice 1579 of such testing to the Department of Consumer Protection. 1580 Sec. 36. Subsection (a) of section 30-91 of the general statutes is 1581 repealed and the following is substituted in lieu thereof (Effective July 1, 1582 2021): 1583 (a) The sale or the dispensing or consumption or the presence in 1584 glasses or other receptacles suitable to permit the consumption of 1585 alcoholic liquor by an individual in places operating under hotel 1586 permits, restaurant permits, cafe permits, Connecticut craft cafe permits, 1587 restaurant permits for catering establishments, bowling establishment 1588 permits, racquetball facility permits, club permits, coliseum permits, 1589 coliseum concession permits, special sporting facility restaurant 1590 permits, special sporting facility employee recreational permits, special 1591 sporting facility guest permits, special sporting facility concession 1592 permits, special sporting facility bar permits, golf country club permits, 1593 nonprofit public museum permits, university permits, airport 1594 restaurant permits, airport bar permits, airport airline club permits, 1595 tavern permits, manufacturer permits for beer, casino permits, caterer 1596 liquor permits and charitable organization permits shall be unlawful on: 1597 (1) Monday, Tuesday, Wednesday, Thursday and Friday between the 1598 hours of one o'clock a.m. and nine o'clock a.m.; (2) Saturday between the 1599 hours of two o'clock a.m. and nine o'clock a.m.; (3) Sunday between the 1600 hours of two o'clock a.m. and ten o'clock a.m.; (4) Christmas, except [(A)] 1601 for alcoholic liquor that is served where food is also available during the 1602 hours otherwise permitted by this section for the day on which 1603 Christmas falls; [, and (B) by casino permittees at casinos, as defined in 1604 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 52 of 56 section 30-37k;] and (5) January first between the hours of three o'clock 1605 a.m. and nine o'clock a.m., except that on any Sunday that is January 1606 first the prohibitions of this section shall be between the hours of three 1607 o'clock a.m. and ten o'clock a.m. 1608 Sec. 37. Subsection (l) of section 30-91 of the general statutes is 1609 repealed and the following is substituted in lieu thereof (Effective July 1, 1610 2021): 1611 (l) Notwithstanding any provision of subsection (a) of this section, it 1612 shall be lawful for casino permittees at casinos, as defined in section 30-1613 37k, to (1) allow the sale or dispensing of alcohol to, or consumption or 1614 presence in glasses or other receptacles suitable to permit the 1615 consumption of alcoholic liquor by, an individual who is staying at a 1616 hotel in the casino or a hotel or campground affiliated with the casino 1617 and accessible by a shuttle service, except such alcoholic liquor shall not 1618 be served to a patron of such casino during (A) Monday, Tuesday, 1619 Wednesday, Thursday, Friday and Saturday between the hours of four 1620 o'clock a.m. and nine o'clock a.m.; and (B) Sunday between the hours of 1621 four o'clock a.m. and ten o'clock a.m.; and (2) allow the presence of 1622 alcoholic liquor in glasses or other receptacles suitable to permit the 1623 consumption thereof by an individual at any time on its gaming facility, 1624 as defined in subsection (a) of section 30-37k. [, provided such alcoholic 1625 liquor shall not be served to a patron of such casino during the hours 1626 specified in subsection (a) of this section.] Each casino permittee shall 1627 maintain, in writing, an alcohol service policy that provides for the safe 1628 sale and dispensing of alcohol pursuant to the casino permit. Each 1629 casino permittee shall review such policy at least once each year. For 1630 purposes of this section, "receptacles suitable to permit the consumption 1631 of alcoholic liquor" [shall] does not include bottles of distilled spirits or 1632 bottles of wine. 1633 Sec. 38. Subparagraph (G) of subdivision (1) of subsection (b) of 1634 section 12-18b of the general statutes is repealed and the following is 1635 substituted in lieu thereof (Effective July 1, 2021): 1636 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 53 of 56 (G) [Forty-five] One hundred per cent of the property taxes that 1637 would have been paid with respect to any land designated within the 1638 1983 Settlement boundary and taken into trust by the federal 1639 government for the Mashantucket Pequot Tribal Nation prior to June 8, 1640 1999, or taken into trust by the federal government for the Mohegan 1641 Tribe of Indians of Connecticut, provided the real property subject to 1642 this subparagraph shall be the land only, and shall not include the 1643 assessed value of any structures, buildings or other improvements on 1644 such land; and 1645 Sec. 39. Section 3-55i of the general statutes is repealed and the 1646 following is substituted in lieu thereof (Effective July 1, 2021): 1647 (a) There is established the "Mashantucket Pequot and Mohegan 1648 Fund" which shall be a separate nonlapsing fund. All funds received by 1649 the state of Connecticut from the Mashantucket Pequot Tribe pursuant 1650 to the joint memorandum of understanding entered into by and 1651 between the state and the tribe on January 13, 1993, as amended on April 1652 30, 1993, and any successor thereto, shall be deposited in the General 1653 Fund. [During the fiscal year] For the fiscal years ending June 30, 2015, 1654 [and each fiscal year thereafter,] to June 30, 2021, inclusive, from the 1655 funds received by the state from the tribe pursuant to said joint 1656 memorandum of understanding, as amended, and any successor 1657 thereto, an amount equal to the appropriation to the Mashantucket 1658 Pequot and Mohegan Fund for Grants to Towns shall be transferred to 1659 the Mashantucket Pequot and Mohegan Fund. [and shall be distributed 1660 by the Office of Policy and Management, during said fiscal year, in 1661 accordance with the provisions of section 3-55j.] For the fiscal year 1662 ending June 30, 2022, and each fiscal year thereafter, one hundred thirty-1663 seven million dollars of the funds deposited in the General Fund 1664 pursuant to this subsection, the memorandum of understanding entered 1665 into by and between the state and the Mohegan Tribe of Indians of 1666 Connecticut on May 17, 1994, as amended from time to time and section 1667 8 of this act shall be transferred from the General Fund to the 1668 Mashantucket Pequot and Mohegan Fund. During each fiscal year, the 1669 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 54 of 56 Office of Policy and Management shall make distributions from the 1670 Mashantucket Pequot and Mohegan Fund in accordance with the 1671 provisions of section 3-55j. The amount of the grant payable to each 1672 municipality during any fiscal year, in accordance with said section, 1673 shall be reduced proportionately if the total of such grants exceeds the 1674 amount of funds available for such year. The grant shall be paid in three 1675 installments as follows: The Secretary of the Office of Policy and 1676 Management shall, annually, not later than the fifteenth day of 1677 December, the fifteenth day of March and the fifteenth day of June 1678 certify to the Comptroller the amount due each municipality under the 1679 provisions of section 3-55j and the Comptroller shall draw an order on 1680 the Treasurer on or before the fifth business day following the fifteenth 1681 day of December, the fifth business day following the fifteenth day of 1682 March and the fifth business day following the fifteenth day of June and 1683 the Treasurer shall pay the amount thereof to such municipality on or 1684 before the first day of January, the first day of April and the thirtieth day 1685 of June. 1686 (b) The transfers from the General Fund to the Mashantucket Pequot 1687 and Mohegan Fund required by subsection (a) of this section shall not 1688 be reduced except upon (1) submission to the General Assembly by the 1689 Governor of a certification of an emergency requiring such reduction; 1690 and (2) a vote of at least two-thirds of the members of each house of the 1691 General Assembly approving such reduction. 1692 Sec. 40. (Effective July 1, 2021) Notwithstanding the provisions of 1693 section 1-3 of the general statutes, if any provision of sections 1 to 13, 1694 inclusive, 19 or 20 of this act, or any amendment made to the provisions 1695 of the general statutes pursuant to this act, except for those provisions 1696 regarding keno and the sale of lottery tickets for lottery draw games 1697 through the corporation's Internet web site, online service or mobile 1698 application, is held invalid by a court of competent jurisdiction in a final 1699 judgment which is not appealable, (1) the provisions of sections 1 to 13, 1700 inclusive, 19 and 20 of this act shall cease to be effective, except for those 1701 provisions regarding keno and the sale of lottery tickets for lottery draw 1702 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 55 of 56 games through the corporation's Internet web site, online service or 1703 mobile application, and (2) the amendments made to the provisions of 1704 the sections of the general statutes pursuant to this act shall be 1705 inoperative, except for those provisions regarding keno and the sale of 1706 lottery tickets for lottery draw games through the corporation's Internet 1707 web site, online service or mobile application. 1708 Sec. 41. Sections 12-565a and 12-578j of the general statutes are 1709 repealed. (Effective from passage) 1710 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2021 New section Sec. 2 July 1, 2021 New section Sec. 3 July 1, 2021 New section Sec. 4 July 1, 2021 New section Sec. 5 July 1, 2021 New section Sec. 6 July 1, 2021 New section Sec. 7 July 1, 2021 New section Sec. 8 July 1, 2021 New section Sec. 9 July 1, 2021 New section Sec. 10 July 1, 2021 New section Sec. 11 July 1, 2021 New section Sec. 12 July 1, 2021 New section Sec. 13 July 1, 2021 New section Sec. 14 July 1, 2021 12-586f Sec. 15 July 1, 2021 12-586g Sec. 16 July 1, 2021 12-578aa Sec. 17 July 1, 2021 12-578f Sec. 18 July 1, 2021 12-806c Sec. 19 July 1, 2021 New section Sec. 20 from passage New section Sec. 21 July 1, 2021 12-801 Sec. 22 July 1, 2021 12-806 Sec. 23 July 1, 2021 12-806a Sec. 24 July 1, 2021 12-810 Sec. 25 July 1, 2021 12-811 Sec. 26 from passage 12-812 Substitute Bill No. 570 LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-00570- R02-SB.docx } 56 of 56 Sec. 27 July 1, 2021 12-815 Sec. 28 July 1, 2021 12-816 Sec. 29 July 1, 2021 12-561 Sec. 30 July 1, 2021 12-563a Sec. 31 July 1, 2021 52-553 Sec. 32 July 1, 2021 52-554 Sec. 33 July 1, 2021 53-278a(2) Sec. 34 July 1, 2021 53-278a(4) Sec. 35 July 1, 2021 53-278g Sec. 36 July 1, 2021 30-91(a) Sec. 37 July 1, 2021 30-91(l) Sec. 38 July 1, 2021 12-18b(b)(1)(G) Sec. 39 July 1, 2021 3-55i Sec. 40 July 1, 2021 New section Sec. 41 from passage Repealer section Statement of Legislative Commissioners: In Section 21, the exclusion from the definition of "lottery fund" was rewritten for clarity and in Section 36, the exception was deleted for consistency with standard drafting conventions. PS Joint Favorable Subst.