HB 7334

Version: Raised+Bill
Author: Public Safety and Security Committee

Created by BCL easyConverter SDK 5 (HTML Version)

Referred to Committee on PUBLIC SAFETY AND SECURITY

Introduced by: (PS)

AN ACT ESTABLISHING A COMMISSION ON GAMING.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

1Section 1. (NEW) (Effective July 1, 2019) (a) There is established a

2Commission on Gaming, which shall be under the direction and

3supervision of three commission members appointed by the Governor

4in accordance with the provisions of section 4-1a of the general statutes

5 and with the advice and consent of either house of the General

6Assembly. The members of the commission shall have experience with

7one or more of the following: (1) Legal and policy issues related to

8gaming, (2) gaming regulatory administration, (3) gaming industry

9management, (4) criminal investigations and law enforcement, or (5)

10corporate finance and securities. The Governor shall designate a

11member to serve as chairperson of the commission. The chairperson

12shall preside at all meetings. Two members shall constitute a quorum.

13The vote of a majority of the members shall be required for action of

14the commission. The salary of each appointed member shall be

15established by the Department of Administrative Services.

16(b) The Commission on Gaming shall constitute a successor agency,

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17in accordance with the provisions of sections 4-38d and 4-39 of the

18general statutes, to the Department of Consumer Protection with

19 respect to all functions, powers and duties of the department

20transferred to the commission under this section and chapters 98, 226

21to 226c, inclusive, 229a, 319j, 438a, 529, 545, 557 and 946 of the general

22statutes. The Commission on Gaming may implement policies and

23procedures consistent with the provisions of this section and chapters

2498, 226 to 226c, inclusive, 229a, 319j, 438a, 529, 545, 557 and 946 of the

25general statutes, while in the process of adopting the policy or

26procedure in regulation form, provided notice of intention to adopt

27regulations is posted on the eRegulations System not later than twenty

28days after implementation. Any such policy or procedure shall be

29valid until the time final regulations are effective.

30(c) The Commission on Gaming shall be responsible for: (1) The

31implementation and administration of provisions of the general

32statutes governing gaming; (2) the licensing and oversight of gambling

33entities operating in the state; (3) analysis of the gaming industry and

34market for gaming activities in the state and promotion of the gaming

35industry in the state; and (4) recommendations for legislation to

36implement a strategic plan for gaming in the state.

37(d) The Governor shall appoint, in accordance with the provisions of

38sections 4-5 to 4-8, inclusive, of the general statutes, as amended by

39this act, an executive director to supervise the daily operations of the

40commission. The executive director shall have professional experience

41in gaming regulatory administration or gaming industry management.

42The salary of the executive director shall be established by the

43Department of Administrative Services.

44(e) The commission shall consult with the Department of Consumer

45Protection regarding the department's powers and duties transferred

46to the commission under this section and chapters 98, 226 to 226c,

47inclusive, 229a, 319, 438a, 529, 545, 557 and 946 of the general statutes.

48(f) The Legislative Commissioners' Office shall, in codifying the

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49provisions of this section and chapters 98, 226 to 226c, inclusive, 229a,

50319j, 438a, 529, 545, 557 and 946 of the general statutes, make such

51technical, grammatical and punctuation changes as are necessary to

52carry out the purposes of this section.

53Sec. 2. Section 4-5 of the general statutes, as amended by section 3 of

54public act 18-91, is repealed and the following is substituted in lieu

55thereof (Effective July 1, 2019):

56As used in sections 4-6, 4-7 and 4-8, the term "department head"

60Commissioner of Children and Families, Commissioner of Consumer

61Protection, Commissioner of Correction, Commissioner of Economic

66Insurance Commissioner, Labor Commissioner, Commissioner of

67Mental Health and Addiction Services, Commissioner of Social

68Services, Commissioner of Developmental Services, Commissioner of

69Motor Vehicles, Commissioner of Transportation, Commissioner of

70 Veterans Affairs, Commissioner of Housing, Commissioner of

71Rehabilitation Services, the Commissioner of Early Childhood, the

72executive director of the Office of Military Affairs, [and] the executive

73director of the Office of Health Strategy, and the executive director of

74 the Commission on Gaming. As used in sections 4-6 and 4-7,

75"department head" also means the Commissioner of Education.

76Sec. 3. Section 4-5 of the general statutes, as amended by section 6 of

77public act 17-237, section 279 of public act 17-2 of the June special

78session and section 20 of public act 18-182, is repealed and the

79following is substituted in lieu thereof (Effective July 1, 2020):

80As used in sections 4-6, 4-7 and 4-8, the term "department head"

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81 means Secretary of the Office of Policy and Management,

82Commissioner of Administrative Services, Commissioner of Revenue

83Services, Banking Commissioner, Commissioner of Children and

84Families, Commissioner of Consumer Protection, Commissioner of

85Correction, Commissioner of Economic and Community Development,

86State Board of Education, Commissioner of Emergency Services and

87 Public Protection, Commissioner of Energy and Environmental

88Protection, Commissioner of Agriculture, Commissioner of Public

89Health, Insurance Commissioner, Labor Commissioner, Commissioner

90of Mental Health and Addiction Services, Commissioner of Social

91Services, Commissioner of Developmental Services, Commissioner of

92Motor Vehicles, Commissioner of Transportation, Commissioner of

93 Veterans Affairs, Commissioner of Housing, Commissioner of

94Rehabilitation Services, the Commissioner of Early Childhood, the

95executive director of the Office of Military Affairs, [and] the executive

96director of the Technical Education and Career System, and the

97executive director of the Commission on Gaming. As used in sections

984-6 and 4-7, "department head" also means the Commissioner of

99Education.

100Sec. 4. Section 4-38c of the general statutes, as amended by section

10113 of public act 18-169, is repealed and the following is substituted in

102lieu thereof (Effective July 1, 2019):

103There shall be within the executive branch of state government the

104following departments: Office of Policy and Management, Department

105of Administrative Services, Department on Aging, Department of

106Revenue Services, Department of Banking, Department of Agriculture,

107Department of Children and Families, Department of Consumer

108Protection, Department of Correction, Department of Economic and

109Community Development, State Board of Education, Department of

110Emergency Services and Public Protection, Department of Energy and

111Environmental Protection, Department of Public Health, Board of

112 Regents for Higher Education, Insurance Department, Labor

113Department, Department of Mental Health and Addiction Services,

114Department of Developmental Services, Department of Social Services,

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115Department of Rehabilitation Services, Department of Transportation,

116Department of Motor Vehicles, [and] Department of Veterans Affairs

117and Commission on Gaming.

118Sec. 5. Section 4-38c of the general statutes, as amended by section 7

119of public act 17-237, section 287 of public act 17-2 of the June special

120session and section 21 of public act 18-182, is repealed and the

121following is substituted in lieu thereof (Effective July 1, 2020):

122There shall be within the executive branch of state government the

123following departments: Office of Policy and Management, Department

127Department of Correction, Department of Economic and Community

128Development, State Board of Education, Department of Emergency

132Department, Department of Mental Health and Addiction Services,

133Department of Developmental Services, Department of Social Services,

134Department of Transportation, Department of Motor Vehicles,

135Department of Veterans Affairs, the Commission on Gaming and the

136Technical Education and Career System.

137Sec. 6. Section 7-169d of the general statutes is repealed and the

138following is substituted in lieu thereof (Effective July 1, 2019):

139(a) For the purposes of this section, (1) "bingo game" has the same

140meaning as provided in section 7-169, and (2) "bingo products" means

141bingo ball equipment, bingo cards or bingo paper.

142(b) Each group or organization authorized to operate or conduct a

143bingo game or series of bingo games pursuant to sections 7-169 to 7-

144169c, inclusive, shall use bingo products that are (1) owned in full by

145such group or organization, (2) used without compensation by such

146group or organization, or (3) rented or purchased from a bingo

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147product manufacturer or equipment dealer who is registered with the

148[Commissioner of Consumer Protection] Commission on Gaming in

149accordance with subsection (c) of this section.

150(c) Each applicant for registration as a bingo product manufacturer

151or equipment dealer shall apply to the [Commissioner of Consumer

152 Protection] Commission on Gaming on such forms as the

153commissioner prescribes. The application shall be accompanied by an

154annual fee of two thousand five hundred dollars payable to the State

155Treasurer. Each applicant for an initial registration shall submit to state

156and national criminal history records checks conducted in accordance

157with section 29-17a before such registration is issued.

158(d) No registered bingo product manufacturer or equipment dealer

159shall rent or sell any type of bingo product that has not been approved

160by the [Commissioner of Consumer Protection] Commission on

161Gaming.

162(e) The [Commissioner of Consumer Protection] Commission on

163Gaming may revoke for cause any registration issued pursuant to

164subsection (c) of this section.

165(f) The [Commissioner of Consumer Protection] Commission on

166Gaming may adopt regulations, in accordance with chapter 54, to

167implement the provisions of this section.

168Sec. 7. Section 7-169h of the general statutes is repealed and the

169following is substituted in lieu thereof (Effective July 1, 2019):

170(a) For the purposes of this section and section 7-169i, as amended

171by this act:

172[(1) "Commissioner" means the Commissioner of Consumer

173Protection;

174(2) "Department" means the Department of Consumer Protection;]

175(1) "Commission" means the Commission on Gaming;

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176[(3)] (2) "Sealed ticket" means a card with tabs which, when pulled,

177expose pictures of various objects, symbols or numbers and which

178entitles the holder of the ticket to receive a prize if the combination of

179objects, symbols or numbers pictured matches what is determined to

180be a winning combination;

181[(4)] (3) "Distributor" means a person who is a resident of this state

182and is registered with the [department] commission to provide

183services related to the sale and distribution of sealed tickets to any

184organization permitted to sell sealed tickets by the [department]

185commission; and

186[(5)] (4) "Manufacturer" means a person who is registered with the

187[department] commission and who manufactures or assembles sealed

188tickets from raw materials, supplies or subparts.

189(b) No person shall sell, offer for sale or distribute a sealed ticket

190who has not applied for and received a permit from the [department]

191commission to sell sealed tickets.

192(c) No organization permitted to sell sealed tickets in this state shall

193purchase sealed tickets from anyone other than a distributor.

194(d) A distributor shall not purchase sealed tickets for sale or use in

195this state from any person except a manufacturer. A distributor shall

196have a physical office in this state and such office shall be subject to

197 inspection by the [commissioner or the commissioner's duly

198designated agent] staff of the commission during normal business

199hours. No organization or group or any person affiliated with an

200organization or group permitted to sell sealed tickets under this

201section shall be permitted to be a distributor.

202(e) A manufacturer shall not sell sealed tickets to any person in this

203state except a distributor.

204(f) All sealed tickets purchased by a distributor for sale or use in this

205state shall be stored or warehoused in this state prior to their sale to

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206any organization permitted to sell sealed tickets.

207(g) All sealed tickets sold in this state shall meet the standards on

208pull-tabs adopted by the North American Gaming Regulators

209Association.

210(h) The [department] commission may issue a permit to sell sealed

211tickets to any organization or group specified in section 7-172.

212(i) On and after July 1, 2011, the [department] commission may sell

213any sealed tickets it has in its possession as of said date, provided it

214does not purchase any new sealed tickets after said date. Permittees

215shall purchase such sealed tickets from the [department] commission

216at a cost which is equal to ten per cent of their resale value, until the

217[department's] commission's supply of sealed tickets has been fully

218depleted. After the [department's] commission's supply of sealed

219tickets has been fully depleted, permittees shall purchase such sealed

220tickets from a distributor at a cost which is equal to ten per cent of their

221resale value. Each such distributor shall remit thirty per cent of its

222gross revenue derived from such purchase fees to the State Treasurer

223on a quarterly basis.

224(j) Each applicant for registration as a manufacturer or distributor

225shall apply to the [commissioner] commission on such forms as the

226[commissioner] commission prescribes. A distributor's application

227shall be accompanied by an annual fee of two thousand five hundred

228 dollars, payable to the State Treasurer, and a manufacturer's

229application shall be accompanied by an annual fee of five thousand

230dollars, payable to the State Treasurer. Each applicant for an initial

231manufacturer or distributor registration shall submit to state and

232national criminal history records checks conducted in accordance with

233section 29-17a before such registration is issued.

234(k) Notwithstanding the provisions of subsection (b) of section 53-

235278b and subsection (d) of section 53-278c, sealed tickets may be sold,

236offered for sale, displayed or open to public view only (1) during the

237course of a bingo game conducted in accordance with the provisions of

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238section 7-169 and only at the location at which such bingo game is

239conducted, (2) on the premises of any such organization or group

240specified in subdivision (2) of subsection (h) of this section, (3) during

241the conduct of a bazaar under the provisions of sections 7-170 to 7-186,

242inclusive, as amended by this act, or (4) in conjunction with any social

243function or event sponsored or conducted by any such organization

244specified in subdivision (4) of subsection (h) of this section. Subject to

245the provisions of section 7-169i, as amended by this act, permittees

246may utilize a mechanical or electronic ticket dispensing machine

247approved by the department to sell sealed tickets. Sealed tickets shall

248not be sold to any person less than eighteen years of age. All proceeds

249from the sale of tickets shall be used for a charitable purpose, as

250defined in section 21a-190a.

251(l) The fee for a permit to sell sealed tickets (1) issued to an

252organization authorized to conduct bingo under a "Class A" or "Class

253C" permit or to an organization specified in subdivision (4) of

254subsection (h) of this section in conjunction with any social function or

255event sponsored or conducted by such organization shall be fifty

256dollars, (2) issued to an organization which holds a club permit or

257nonprofit club permit under the provisions of chapter 545 shall be

258seventy-five dollars, and (3) issued to an organization authorized to

259conduct bingo under a "Class B" permit or an organization which

260holds a permit to operate a bazaar shall be five dollars per day.

261(m) The [commissioner] commission shall adopt regulations in

262accordance with the provisions of chapter 54 to carry out the purposes

263of this section including, but not limited to, regulations concerning (1)

264qualifications of a charitable organization, (2) the price at which the

265charitable organization shall resell tickets, (3) information required on

266the ticket, including, but not limited to, the price per ticket, (4) the

267percentage retained by the organization as profit, which shall be at

268least ten per cent of the resale value of tickets sold, (5) the percentage

269of the resale value of tickets to be awarded as prizes, which shall be at

270least forty-five per cent, (6) apportionment of revenues received by the

271[department] commission from the sale of tickets, and (7)

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272investigations of any charitable organization seeking a permit.

273(n) (1) Whenever it appears to the [commissioner] commission after

274an investigation that any person is violating or is about to violate any

275provision of this section or administrative regulations issued pursuant

276thereto, the [commissioner] commission may, [in his or her discretion,]

277to protect the public welfare, order that any permit issued pursuant to

278this section be immediately suspended or revoked and that the person

279cease and desist from the actions constituting such violation or which

280would constitute such violation. After such an order is issued, the

281person named therein may, within fourteen days after receipt of the

282order, file a written request for a hearing. Such hearing shall be held in

283accordance with the provisions of chapter 54.

284(2) Whenever the [commissioner] commission finds as the result of

285an investigation that any person has violated any provision of this

286section or administrative regulations issued pursuant thereto or made

287any false statement in any application for a permit or in any report

288required by the [commissioner] commission, the [commissioner]

289commission may send a notice to such person by certified mail, return

290receipt requested. Any such notice shall include (A) a reference to the

291section or regulation alleged to have been violated or the application

292or report in which an alleged false statement was made, (B) a short and

293plain statement of the matter asserted or charged, (C) the fact that any

294permit issued pursuant to this section may be suspended or revoked

295for such violation or false statement and the maximum penalty that

296may be imposed for such violation or false statement, and (D) the time

297and place for the hearing. Such hearing shall be fixed for a date not

298earlier than fourteen days after the notice is mailed.

299(3) The [commissioner] commission shall hold a hearing upon the

300charges made unless such person fails to appear at the hearing. Such

301hearing shall be held in accordance with the provisions of chapter 54. If

302such person fails to appear at the hearing or if, after the hearing, the

303[commissioner] commission finds that such person committed such a

304violation or made such a false statement, the [commissioner]

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305commission may [, in his or her discretion,] suspend or revoke such

306permit and order that a civil penalty of not more than five hundred

307dollars be imposed upon such person for such violation or false

308statement. The [commissioner] commission shall send a copy of any

309order issued pursuant to this subdivision by certified mail, return

310receipt requested, to any person named in such order. Any person

311aggrieved by a decision of the [commissioner] commission under this

312subdivision shall have a right of appeal pursuant to section 4-183.

313(4) Whenever the [commissioner] commission revokes a permit

314issued pursuant to this section, [he or she] the commission shall not

315issue any permit to such permittee for one year after the date of such

316revocation.

317Sec. 8. Section 7-169i of the general statutes is repealed and the

318following is substituted in lieu thereof (Effective July 1, 2019):

319(a) No permittee pursuant to section 7-169h, as amended by this act,

320may use a mechanical or electronic ticket dispensing machine to sell

321sealed tickets unless such machine is owned in full by the permittee or

322is rented or purchased from a manufacturer or dealer who is registered

323with the [Department of Consumer Protection] commission.

324(b) Each applicant for registration as a manufacturer or dealer in

325sealed ticket dispensing machines shall apply to the [commissioner]

326commission on such forms as the [commissioner] commission

327prescribes. The application for manufacturer shall be accompanied by

328an annual fee of one thousand two hundred fifty dollars payable to the

329State Treasurer. The application for dealer shall be accompanied by an

330annual fee of six hundred twenty-five dollars payable to the State

331Treasurer. Each applicant for initial registration shall submit to state

332and national criminal history records checks conducted in accordance

333with section 29-17a before such registration is issued.

334(c) The [Department of Consumer Protection] commission may

335revoke for cause any registration issued in accordance with subsection

336(a) of this section.

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337(d) The [commissioner] commission may adopt regulations, in

338accordance with chapter 54, to implement the provisions of this

339section.

340Sec. 9. Section 7-178 of the general statutes is repealed and the

341following is substituted in lieu thereof (Effective July 1, 2019):

342(a) No bazaar or raffle shall be conducted with any equipment

343except such as is owned absolutely or used without payment of any

344compensation therefor by the permittee or as is rented from a dealer in

345such equipment who (1) has a principal place of business in this state,

346and (2) is registered with the [Commissioner of Consumer Protection]

347Commission on Gaming in such manner and on such form as [he] the

348commission may prescribe, which form shall be accompanied by an

349annual fee of three hundred seventy-five dollars payable to the

350Treasurer of the state of Connecticut. No item of expense shall be

351incurred or paid in connection with the holding, operating or

352conducting of any bazaar or raffle pursuant to any permit issued under

353sections 7-170 to 7-186, inclusive, as amended by this act, except such

354as are bona fide items of reasonable amount for goods, wares and

355merchandise furnished or services rendered, which are reasonably

356necessary to be purchased or furnished for the holding, operating or

357conducting thereof, and no commission, salary, compensation, reward

358or recompense whatever shall be paid or given, directly or indirectly,

359to any person holding, operating or conducting, or assisting in the

360holding, operation or conduct of, any such bazaar or raffle. Each raffle

361ticket shall have printed thereon the time, date and place of the raffle,

362the three most valuable prizes to be awarded and the total number of

363prizes to be awarded as specified on the form prescribed in section 7-

364173. In addition to any other information required under this section to

365be printed on a raffle ticket, each ticket for a raffle authorized pursuant

366to a "Class No. 7" permit shall have printed thereon the time, date and

367place of each raffle drawing.

368(b) Notwithstanding the provisions of subsection (a) of this section,

369a permittee may rent equipment from a dealer who does not have a

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370principal place of business in this state if an in-state dealer is

371unavailable, provided such out-of-state dealer is registered with said

372[commissioner] commission pursuant to the provisions of said

373subsection (a).

374Sec. 10. Section 12-557b of the general statutes is repealed and the

375following is substituted in lieu thereof (Effective July 1, 2019):

376As used in this chapter, sections 12-578a to 12-578e, inclusive, as

377amended by this act, 12-579, as amended by this act, and 12-580,

378chapter 226b, and section 53-278g, as amended by this act, unless the

379context otherwise requires:

380[(1) "Commissioner" means the Commissioner of Consumer

381Protection;

382(2) "Department" means the Department of Consumer Protection;]

383(1) "Commission" means the Commission on Gaming;

384[(3)] (2) "Business organization" means a partnership, incorporated

385or unincorporated association, firm, corporation, trust or other form of

386business or legal entity, other than a financial institution regulated by a

387state or federal agency which is not exercising control over an

388association licensee, but does not mean a governmental or sovereign

389entity;

390[(4)] (3) "Control" means the power to exercise authority over or

391 direct the management and policies of a person or business

392organization;

393[(5)] (4) "Casino gaming facility" means any casino gaming facility

394authorized by any provision of the general statutes or a public or

395special act to conduct authorized games on its premises, but does not

396include any casino gaming facility located on Indian lands pursuant to

397the Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2701 et seq.;

398[(6)] (5) "Authorized game" means any game of chance specifically

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399authorized to be conducted at a casino gaming facility by any

400provision of the general statutes or a public or special act; and

401[(7)] (6) "Gross gaming revenue" means the total of all sums actually

402received by a casino gaming facility from gaming operations less the

403total of all sums paid as winnings to patrons of the casino gaming

404facility, provided the total of all sums paid as winnings to such patrons

405shall not include the cash equivalent value of any merchandise or

406thing of value included in a jackpot or payout, and provided further

407the issuance to or wagering by such patrons of any promotional

408gaming credit shall not be included in the total of all sums actually

409received by a casino gaming facility for the purposes of determining

410gross gaming revenue.

411Sec. 11. Section 12-559 of the general statutes is repealed and the

412following is substituted in lieu thereof (Effective July 1, 2019):

413The [commissioner] commission may employ stewards for

414thoroughbred racing, judges for harness racing, greyhound racing and

415jai alai, and veterinarians who shall be exempt from classified service,

416and may employ, subject to the provisions of chapter 67, such other

417employees as may be necessary to carry out the provisions of this

418chapter. The [commissioner] commission shall require such persons to

419submit to state and national criminal history records checks before

420being employed. The criminal history records checks required

421pursuant to this section shall be conducted in accordance with section

42229-17a. All persons employed pursuant to this section, with the

423exception of any steward, judge or veterinarian, shall be residents of

424the state at the time of and during the full term of their employment.

425Sec. 12. Section 12-560 of the general statutes is repealed and the

426following is substituted in lieu thereof (Effective July 1, 2019):

427The [commissioner] commission may, if [he] the executive director

428of the commission determines that it is necessary, require any of the

429[department's] commission's employees to give bond in such amount

430as the commissioner may determine. Every such bond when duly

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431executed and approved shall be filed in the office of the Secretary of

432the State. The cost of any such bond so given as aforesaid shall be part

433of the necessary expenses of the department.

434Sec. 13. Section 12-561 of the general statutes is repealed and the

435following is substituted in lieu thereof (Effective July 1, 2019):

436No [commissioner or] commission member, executive director of

437 the commission, unit head or employee of the [department]

438commission shall directly or indirectly, individually or as a member of

439a partnership or as a shareholder of a corporation, have any interest

440whatsoever in dealing in any lottery, racing, fronton, betting enterprise

441or casino gaming facility or in the ownership or leasing of any

442property or premises used by or for any lottery, racing, fronton,

443betting enterprise or casino gaming facility. No [commissioner or]

444commission member, executive director or unit head shall, directly or

445indirectly, wager at any off-track betting facility, race track or fronton

446authorized under this chapter, purchase lottery tickets issued under

447this chapter or play, directly or indirectly, any authorized game

448conducted at a casino gaming facility. The [commissioner] commission

449may adopt regulations in accordance with the provisions of chapter 54

450to prohibit any employee of the [department] commission from

451engaging, directly or indirectly, in any form of legalized gambling

452activity in which such employee is involved because of his or her

453employment with the [department] commission. For purposes of this

454section, "unit head" means a managerial employee with direct

455oversight of a legalized gambling activity.

456Sec. 14. Section 12-562 of the general statutes is repealed and the

457following is substituted in lieu thereof (Effective July 1, 2019):

458(a) Except as provided in subsection (b) of this section, the

459[commissioner] commission shall have power to enforce the provisions

460of this chapter and chapter 226b, and shall adopt all necessary

461regulations for that purpose and for carrying out, enforcing and

462preventing violation of any of the provisions of this chapter, for the

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463inspection of licensed premises, enterprises or casino gaming facilities,

464for insuring proper, safe and orderly conduct of licensed premises,

465enterprises or casino gaming facilities and for protecting the public

466against fraud or overcharge. The [commissioner] commission shall

467have power generally to do whatever is reasonably necessary for the

468carrying out of the intent of this chapter; and may call upon other

469administrative departments of the state government and of municipal

470governments for such information and assistance as [he or she] the

471commission deems necessary to the performance of [his or her] the

472commission's duties. The [commissioner] commission shall set racing

473and jai alai meeting dates, except that the [commissioner] commission

474may delegate to designated staff the authority for setting make-up

475performance dates. The [commissioner] commission shall, as far as

476practicable, avoid conflicts in the dates assigned for racing or the

477exhibition of the game of jai alai in the state.

478(b) The special [policemen] police officers in the [Department of

479Consumer Protection] commission and the legalized gambling

480investigative unit in the Division of State Police within the Department

481of Emergency Services and Public Protection shall be responsible for

482the criminal enforcement of the provisions of sections 7-169 to 7-186,

483inclusive, as amended by this act, this chapter and chapters 226b and

484229a. They shall have the powers and duties specified in section 29-7c,

485as amended by this act.

486Sec. 15. Section 12-563 of the general statutes is repealed and the

487following is substituted in lieu thereof (Effective July 1, 2019):

488All regulations of the [department] commission shall be adopted in

489the manner provided in chapter 54. The [commissioner] commission

490shall, at least annually, on or before December thirty-first of each year,

491either (1) publish in convenient pamphlet form all regulations then in

492force and shall furnish copies of such pamphlets to such persons who

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495Sec. 16. Section 12-563a of the general statutes is repealed and the

496following is substituted in lieu thereof (Effective July 1, 2019):

497The [Commissioner of Consumer Protection] commission shall,

498within available resources, prepare and distribute informational

499materials designed to inform the public of the programs available for

500the prevention, treatment and rehabilitation of compulsive gamblers in

501this state. The [commissioner] commission shall require any casino

502gaming facility and any person or business organization which is

503licensed to sell lottery tickets, operate an off-track betting system or

504conduct wagering on racing events or jai alai games, to display such

505informational materials at the casino gaming facility and each licensed

506premise, respectively.

507Sec. 17. Section 12-564 of the general statutes is repealed and the

508following is substituted in lieu thereof (Effective July 1, 2019):

509(a) The [commissioner] commission shall make an annual report in

510writing to the Governor as provided in section 4-60 and shall make

511such additional reports as the Governor may from time to time

512reasonably request. The annual report shall include a statement of the

513receipts and disbursements of the [department] commission, a

514statement of the costs of administering the [department] commission, a

515summary of its activities, and any additional information and

516recommendations which the [commissioner] commission may deem of

517value or which the Governor may request.

518 (b) The [commissioner] commission shall conduct studies

519concerning the effect of legalized gambling on the citizens of this state

520including, but not limited to, studies to determine the types of

521gambling activity engaged in by the public and the desirability of

522expanding, maintaining or reducing the amount of legalized gambling

523permitted in this state. Such studies shall be conducted as often as the

524[commissioner] commission deems necessary, except that no studies

525shall be conducted before the fiscal year ending June 30, 2009, and

526thereafter studies shall be conducted at least once every ten years. The

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527joint standing [committees] committee of the General Assembly having

528cognizance of matters relating to [legalized gambling] public safety

529and security shall [each] receive a report concerning each study carried

530out, stating the findings of the study and the costs of conducting the

531study.

532Sec. 18. Section 12-564a of the general statutes is repealed and the

533following is substituted in lieu thereof (Effective July 1, 2019):

534The [Commissioner of Consumer Protection] commission shall

535submit a report to the Commissioner of Emergency Services and Public

536Protection and the joint standing committee of the General Assembly

537having cognizance of matters relating to [legalized gambling] public

538safety and security, not later than the fifteenth business day of each

539month, which report shall set forth a detailed statement of (1) any

540investigations conducted by the [Department of Consumer Protection]

541commission in the previous month, and (2) such arrest data as the

542Commissioner of Emergency Services and Public Protection or the

543committee may require, including, but not limited to, the number of

544arrests made by the special [policemen] police officer in the security

545unit of the [Department of Consumer Protection] commission.

546Sec. 19. Section 12-565 of the general statutes is repealed and the

547following is substituted in lieu thereof (Effective July 1, 2019):

548The [commissioner] commission may conduct any inquiry,

549investigation or hearing necessary to carry out the provisions of this

550chapter. The [commissioner] commission shall have power to

551administer oaths and take testimony under oath concerning the matter

552of inquiry or investigation. At any hearing ordered, the [commissioner]

553commission or an agent authorized by law to issue such process may

554subpoena witnesses and require the production of records, papers and

555documents pertinent to such inquiry. No witness under subpoena

556issued under the provisions of this section shall be excused from

557testifying or from producing records, papers or documents on the

558ground that such testimony or the production of such records or other

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559documentary evidence would tend to incriminate him, but such

560evidence or the records or papers so produced shall not be used in any

561criminal proceeding against him. If any person disobeys such process

562or, having appeared in obedience thereto, refuses to answer any

563pertinent question put to him or to produce any records and papers

564pursuant thereto, the [commissioner] commission may apply to the

565superior court for the judicial district of Hartford or for the judicial

566district wherein the person resides or wherein the business has been

567conducted, or to any judge of said court if the same is not in session,

568setting forth such disobedience to process or refusal to answer. Said

569court or such judge shall cite such person to appear before said court

570or such judge to answer such question or to produce such records and

571papers and, upon his refusal to do so, shall commit such person to a

572community correctional center until he testifies, but not for a longer

573period than sixty days. Notwithstanding the serving of the term of

574such commitment by any person, the [commissioner] commission may

575proceed with such inquiry and examination as if the witness had not

576previously been called upon to testify. Officers who serve subpoenas

577 issued by the [commissioner] commission or under [his] the

578commission's authority and witnesses attending hearings conducted

579under this section shall receive the same fees and compensation as

580officers and witnesses in the courts of this state to be paid on vouchers

581of the [department] commission on order of the Comptroller. The

582[commissioner] commission may delegate the powers granted [to him]

583under this section.

584Sec. 20. Section 12-565a of the general statutes is repealed and the

585following is substituted in lieu thereof (Effective July 1, 2019):

586The [Commissioner of Consumer Protection] commission shall

587adopt regulations, in accordance with the provisions of chapter 54, to

588regulate wagering on sporting events to the extent permitted by state

589and federal law.

590Sec. 21. Section 12-566 of the general statutes is repealed and the

591following is substituted in lieu thereof (Effective July 1, 2019):

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592The [commissioner] commission shall provide books in which shall

593be kept a true, faithful and correct record of all of the [department's]

594commission's proceedings, which books shall be open to the public as

595provided in section 1-210.

596Sec. 22. Section 12-568a of the general statutes is repealed and the

597following is substituted in lieu thereof (Effective July 1, 2019):

598The [Department of Consumer Protection] commission shall adopt

599regulations, in accordance with chapter 54, for the purpose of assuring

600the integrity of the state lottery, concerning the regulation of the state

601lottery under the operation and management of the Connecticut

602Lottery Corporation. Such regulations shall include: (1) The licensing

603of employees of the Connecticut Lottery Corporation and any person

604or business organization awarded the primary contract by said

605corporation to provide facilities, components, goods or services which

606are necessary for the operation of the activities authorized by chapter

607229a; (2) the approval of procedures of the corporation; (3) the time

608period for complying with the regulations governing said approval of

609procedures; (4) offerings of lottery games; (5) minimum prize payouts

610and payments; (6) regulation of lottery sales agents including

611qualifications for licensure and license suspension and revocation; (7)

612assurance of the integrity of the state lottery including the computer

613gaming system, computer internal control and system testing; and (8)

614limitations on advertising and marketing content to assure public

615information as to the odds of winning the lottery and the prohibition

616of sales of tickets to minors.

617Sec. 23. Section 12-569 of the general statutes is repealed and the

618following is substituted in lieu thereof (Effective July 1, 2019):

619(a) If the president of the Connecticut Lottery Corporation

620determines that any lottery sales agent has breached such agent's

621fiduciary responsibility to the corporation in that the account of such

622lottery sales agent with respect to moneys received from the sale of

623lottery tickets has become delinquent in accordance with regulations

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624adopted as provided in section 12-568a, as amended by this act, the

625president shall notify the [commissioner] commission of the breach of

626fiduciary duty and the [commissioner] commission shall impose a

627delinquency assessment upon such account equal to ten per cent of the

628amount due or ten dollars, whichever amount is greater, plus interest

629at the rate of one and one-half per cent of such amount for each month

630or fraction of a month from the date such amount is due to the date of

631payment. Subject to the provisions of section 12-3a, the [commissioner]

632commission may waive all or part of the penalties provided under this

633subsection when it is proven to the [commissioner's] commission's

634satisfaction that the failure to pay such moneys to the state within the

635time allowed was due to reasonable cause and was not intentional or

636due to neglect. Any such delinquent lottery sales agent shall be

637notified of such delinquency assessment and shall be afforded an

638opportunity to contest the validity and amount of such assessment

639[before the commissioner who may conduct such hearing] at a

640commission hearing. Upon request of the president of the Connecticut

641Lottery Corporation, the [commissioner] commission may prepare and

642sign a warrant directed to any state marshal, constable or any

643collection agent employed by the Connecticut Lottery Corporation for

644distraint upon any property of such delinquent lottery sales agent

645within the state, whether personal or real property. An itemized bill

646shall be attached to the warrant certified by the [commissioner]

647commission as a true statement of the amount due from such lottery

648sales agent. Such warrant shall have the same force and effect as an

649execution issued in accordance with chapter 906. Such warrant shall be

650levied on any real, personal, tangible or intangible property of such

651agent and sale made pursuant to such warrant in the same manner and

652with the same force and effect as a levy and sale pursuant to an

653execution.

654(b) The [commissioner] commission shall adopt regulations in

655accordance with chapter 54 to carry out the purposes of this section.

656Sec. 24. Section 12-571 of the general statutes is repealed and the

657following is substituted in lieu thereof (Effective July 1, 2019):

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658(a) The [Commissioner of Consumer Protection] commission shall

659enter into negotiations with a person or business organization for the

660award of a contract of sale of the off-track betting system including,

661but not limited to, the assets and liabilities of the system and the right

662to operate the system. Such contract of sale shall authorize the

663purchaser of the system to establish and conduct a system of off-track

664betting on races held within or without the state pursuant to the

665provisions of this chapter. All proceeds derived from such sale shall be

666deposited as provided in section 39 of public act 93-332. Until the

667effective date of transfer of ownership of the off-track betting system,

668the [commissioner] commission shall establish and conduct systems of

669off-track betting on races held within or without the state pursuant to

670the provisions of this chapter. It is hereby declared that off-track

671betting on races conducted under the administration or regulatory

672authority of the [department] commission in the manner and subject to

673the conditions of this chapter shall be lawful notwithstanding the

674provisions of any other law, general, special or municipal, including

675any law prohibiting or restricting lotteries, bookmaking or any other

676kind of gambling, it being the purpose of this chapter to derive from

677such betting, as authorized by this chapter, a reasonable revenue for

678the support of state government and to prevent and curb unlawful

679bookmaking and illegal betting on races.

680(b) Until the effective date of transfer of ownership of the off-track

681betting system, the [commissioner] commission shall adopt rules and

682regulations, consistent with this chapter, establishing and governing

683the permitted method or methods of operation of the system of off-

684track betting.

685Sec. 25. Section 12-571a of the general statutes is repealed and the

686following is substituted in lieu thereof (Effective July 1, 2019):

687(a) The [Department of Consumer Protection] commission shall not

688operate or authorize the operation of more than twenty-four off-track

689betting branch facilities, except that the [department] commission may

690operate or authorize the operation of any off-track betting branch

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691facility approved prior to December 31, 1986, by the legislative body of

692a municipality in accordance with subsection (a) of section 12-572, as

693amended by this act. Any facility approved prior to December 31, 1986,

694shall be included within the twenty-four facilities authorized by this

695subsection.

696(b) The twenty-four off-track betting branch facilities authorized by

697subsection (a) of this section may include facilities which have screens

698for the simulcasting of off-track betting race programs or jai alai games

699and other amenities including, but not limited to, restaurants and

700concessions, and, on and after October 1, 2012, shall be located in the

701town and city of New Haven, the town of Windsor Locks, the town of

702East Haven, the town and city of Norwalk, the town and city of

703Hartford, the town and city of New Britain, the town and city of

704Bristol, the town and city of Torrington, the town and city of

705Waterbury, the town and city of Milford, the town and city of New

706London, the town of Manchester, the town of Windham, the town of

707Putnam, the town and city of Bridgeport and nine additional locations.

708The location of each such facility and the addition of simulcasting

709capability to any existing off-track betting branch facility that did not

710previously have such capability (1) shall be approved by the

711[commissioner] commission, and (2) shall be subject to the prior

712approval of the legislative body of the town in which such facility is

713located or is proposed to be located. The [department] commission

714shall report annually to the joint standing committee of the General

715Assembly having cognizance of matters relating to [legalized

716gambling] public safety and security on the status of the establishment

717or improvement of the off-track betting branch facility pursuant to this

718subsection.

719Sec. 26. Section 12-572 of the general statutes is repealed and the

720following is substituted in lieu thereof (Effective July 1, 2019):

721(a) The [commissioner] commission may establish or authorize the

722establishment of such off-track betting facilities throughout the state

723for the purpose of receiving moneys wagered on the results of races or

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724jai alai games as he shall deem will serve the convenience of the public

725and provide maximum economy and efficiency of operation, provided

726the establishment of such a facility in any municipality for the purpose

727of receiving moneys on the results of races or jai alai games shall be

728subject to the approval of the legislative body of such municipality

729which shall be given only after a public hearing on the same. Until the

730effective date of transfer of ownership of the off-track betting system,

731moneys received at such facilities shall be deposited in a betting fund

732from which daily payments, in such amount as the [commissioner]

733commission deems suitable, shall be made. If an operator of an off-

734track betting facility intends to conduct wagering on dog racing events

735or jai alai games, such operator (1) shall conduct wagering on dog

736racing events or jai alai games conducted by any association licensee

737which offers such racing events or games for off-track betting,

738provided such operator obtains the written consent of such licensee,

739and (2) may conduct wagering on out-of-state dog racing events or jai

740alai games when no such association licensee is conducting such racing

741events or games, provided such operator has complied with the

742provisions of subdivision (1) of this subsection. No operator of an off-

743track betting facility shall conduct wagering on any dog racing event

744or jai alai game if such racing event or game is conducted within forty

745miles of such facility unless such operator has obtained the written

746consent of the licensee conducting such racing event or game.

747(b) The [commissioner] commission may contract with any person

748or business organization to provide such facilities, components, goods

749or services as may be necessary for the effective operation of an off-

750track betting system. Compensation for such facilities, components,

751goods or services shall be deducted from the moneys retained

752pursuant to subsections (c) and (d) of this section in such amount as

753the [commissioner] commission shall determine.

754(c) The [department] commission or any person or business

755organization operating an off-track betting system shall distribute all

756sums deposited in a pari-mutuel pool, to the holders of winning tickets

757therein, less seventeen per cent of the total deposits of such pool plus

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758the breakage to the dime of the amount so retained, except as provided

759in subsection (d) of this section.

760(d) (1) If the multiple forms of wagering known as daily double,

761exacta and quinella are permitted, the [department] commission or any

762person or business organization operating the off-track betting system

763shall distribute all sums deposited in the pari-mutuel pool for any such

764event to the holders of winning tickets therein, less nineteen per cent of

765the total deposits in such pool plus the breakage to the dime.

766(2) If multiple forms of wagering on three or more animals are

767permitted, the [department] commission or such person or business

768organization operating an off-track betting system shall retain twenty-

769four and one-half per cent of the total sums deposited in the pool for

770such event, plus the breakage to the dime.

771(e) The [department] commission or any person or business

772organization operating an off-track betting system and conducting

773wagering on racing events or jai alai games held in this state and

774licensed under the provisions of this chapter shall distribute all sums

775deposited in a pari-mutuel pool to the holders of winning tickets

776therein, less the same percentage of the total deposits of such pool

777applicable to such racing events or jai alai games plus the breakage to

778the dime of the amount retained by each licensee conducting the racing

779events or jai alai games.

780(f) Any person or business organization which has entered into a

781contract with the state, acting through the [commissioner] commission

782under the provisions of subsection (b) of this section, except a contract

783with an individual for personal services, may, in the event of any

784disputed claims under such contract, bring an action against the state

785to the superior court for the judicial district of Hartford for the purpose

786of having such claims determined, provided notice of the general

787nature of such claims shall have been given in writing to the

788[department] commission not later than one year after the termination

789of such contract. No action shall be brought under this section later

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790than three years from the date of termination of the contract. Such

791action shall be tried to the court without a jury. Damages recoverable

792in such action shall not include any amount attributable to anticipated

793profits but shall be limited to the recovery of actual damages sustained

794arising out of such contract. All legal defenses except governmental

795immunity shall be reserved to the state.

796(g) The [department] commission or any person or business

797organization operating an off-track betting system may combine

798wagers placed within such off-track betting system with similar

799wagering pools at the facility where a racing program is being

800conducted, regardless of whether such facility is located within or

801without the state. Such pari-mutuel wagers shall be combined in such

802form and manner as the [commissioner] commission may determine to

803be in the best interests of the off-track betting system established

804pursuant to the provisions of section 12-571, as amended by this act.

805Notwithstanding the provisions of subsection (c) or (d) of this section,

806the [department] commission or any person or business organization

807operating an off-track betting system and conducting wagering on

808racing events held without this state, may distribute to the holders of

809winning tickets who have placed wagers in said combined pools such

810sums as may be deposited in said combined pari-mutuel pools, less the

811same percentage of the total deposits of such combined pools as is

812established at the facility where such racing program is conducted plus

813the breakage to the dime, as shall be determined by the [commissioner]

814commission.

815Sec. 27. Section 12-573 of the general statutes is repealed and the

816following is substituted in lieu thereof (Effective July 1, 2019):

817Until the effective date of transfer of ownership of the off-track

818betting system, and from time to time the [commissioner] commission

819shall estimate, and certify to the Comptroller, that portion of the

820balance in the betting fund which is in excess of the current needs of

821the [department] commission for the payment of prizes and for the

822payment of compensation under section 12-572, as amended by this

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823act. Upon receipt of any such certification, the amount so certified shall

824be transferred from the betting fund to the General Fund.

825Sec. 28. Section 12-573a of the general statutes is repealed and the

826following is substituted in lieu thereof (Effective July 1, 2019):

827The [department] commission may authorize the operation of

828frontons in the state for exhibition of the Spanish ball game called jai

829alai or pelota. The operation of all frontons shall be under the

830supervision of the [department] commission.

831Sec. 29. Section 12-574 of the general statutes is repealed and the

832following is substituted in lieu thereof (Effective July 1, 2019):

833(a) No person or business organization may conduct a meeting at

834which racing or the exhibition of jai alai is permitted for any stake,

835purse or reward or operate the off-track betting system unless such

836person or business organization is licensed as an association licensee

837by the [commissioner] commission. Any such licensee authorized to

838conduct a meeting or operate the off-track betting system shall

839indemnify and save harmless the state of Connecticut against any and

840all actions, claims, and demands of whatever kind or nature which the

841state may sustain or incur by reason or in consequence of issuing such

842license.

843(b) No person or business organization may operate any concession

844at any meeting at which racing or the exhibition of jai alai is permitted

845or any concession which is allied to an off-track betting facility unless

846such person or business organization is licensed as a concessionaire

847licensee by the [commissioner] commission.

848(c) No person or business organization awarded the primary

849contract by an association licensee to provide facilities, components,

850goods or services which are necessary for the operation of the activities

851authorized by the provisions of section 12-572, as amended by this act,

852may do so unless such person or business organization is licensed as a

853vendor licensee by the [commissioner] commission.

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854(d) No person or business organization may provide totalizator

855equipment and services to any association licensee for the operation of

856a pari-mutuel system unless such person or business organization is

857licensed as a totalizator licensee by the [commissioner] commission.

858(e) No business organization, other than a shareholder in a publicly

859traded corporation, may exercise control in or over an association, a

860concessionaire, a vendor or a totalizator licensee unless such business

861organization is licensed as an affiliate licensee by the [commissioner]

862commission. The [commissioner] commission shall issue affiliate

863licenses to qualified business organizations.

864(f) No person may participate in this state in any activity permitted

865under this chapter as an employee of an association, concessionaire,

866vendor, totalizator or affiliate licensee unless such person is licensed as

867an occupational licensee by the [commissioner] commission. Whether

868located in or out of this state, no officer, director, partner, trustee or

869owner of a business organization which obtains a license in accordance

870with this section may continue in such capacity unless such officer,

871director, partner, trustee or owner is licensed as an occupational

872licensee by the [commissioner] commission. An occupational license

873shall also be obtained by any shareholder, key executive, agent or

874other person connected with any association, concessionaire, vendor,

875 totalizator or affiliate licensee, who in the judgment of the

876[commissioner] commission will exercise control in or over any such

877licensee. Such person shall apply for a license not later than thirty days

878after the [commissioner] commission requests [him] such person, in

879writing, to do so. The [commissioner] commission shall complete [his]

880an investigation of an applicant for an occupational license and notify

881such applicant of [his] the commission's decision to approve or deny

882 the application within one year after its receipt, or, if the

883[commissioner] commission determines good cause exists for

884extending such period of investigation and gives the applicant a

885reasonable opportunity for a hearing, by the date prescribed by the

886[commissioner] commission.

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887(g) In determining whether to grant a license, the [commissioner]

888commission may require the applicant to submit information as to:

889Financial standing and credit; moral character; criminal record, if any;

890 previous employment; corporate, partnership or association

891affiliations; ownership of personal assets; and such other information

892as it or he deems pertinent to the issuance of such license.

893(h) The [commissioner] commission may reject for good cause an

894application for a license. Any license granted under the provisions of

895this chapter is a revocable privilege and no licensee shall be deemed to

896have acquired any vested rights based on the issuance of such license.

897The [commissioner, the deputy commissioner, the executive assistant]

898commission members, executive director, any unit head or any

899assistant unit head authorized by the [commissioner] commission may

900suspend or revoke for good cause any license issued by the

901[commissioner] commission after a hearing held in accordance with

902chapter 54. If any affiliate licensee fails to comply with the provisions

903of this chapter, the [commissioner] commission, after a hearing held in

904accordance with chapter 54, may revoke or suspend the license of any

905one or more of the following related licensees: Concessionaire, vendor

906or totalizator, and may fine any one or more of such licensees in an

907amount not to exceed two thousand five hundred dollars. In addition,

908if any affiliate licensee fails to comply with the provisions of this

909chapter, the [commissioner] commission, after a hearing held in

910accordance with chapter 54, may revoke or suspend the license of the

911related association licensee and may fine the related association

912licensee in an amount not to exceed seventy-five thousand dollars or

913both. If any license is suspended or revoked, the [commissioner]

914commission shall state the reasons for such suspension or revocation

915and cause an entry of such reasons to be made on the record books of

916the [department] commission. Any licensee whose license is

917suspended or revoked, or any applicant aggrieved by the action of the

918[commissioner] commission concerning an application for a license,

919may appeal pursuant to section 4-183.

920(i) The [commissioner] commission shall adopt regulations

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921governing the operation of the off-track betting system and facilities,

922tracks, stables, kennels and frontons, including the regulation of

923betting in connection therewith, to insure the integrity and security of

924the conduct of meetings and the broadcast of racing events held

925pursuant to this chapter. Such regulations shall include provision for

926the imposition of fines and suspension of licenses for violations

927thereof. Prior to the adoption of any regulations concerning the

928treatment of animals at any dog race track, the [commissioner]

929commission shall notify the National Greyhound Association of the

930contents of such regulations and of its right to request a hearing

931pursuant to chapter 54. The [commissioner] commission shall have the

932authority to impose a fine of up to (1) seventy-five thousand dollars for

933any violation of such regulations by a licensee authorized to conduct a

934meeting or operate the off-track betting system under this section; (2)

935five thousand dollars for any violation of such regulations by a

936business organization licensed as an affiliate licensee authorized to

937exercise control over an association; and (3) two thousand five

938hundred dollars for any such violation by any other licensee licensed

939by the [commissioner] commission. The stewards or judges of a

940meeting acting in accordance with such regulations shall have the

941authority to impose a fine of up to five hundred dollars for any such

942violation by such licensee, and the players' manager of a jai alai

943exhibition acting in accordance with such regulations shall have the

944authority to recommend to the judges that a fine should be considered

945 for a player who may have violated such regulations. The

946[commissioner] commission may delegate to the stewards and judges

947of a meeting the power to suspend the license of any occupational

948licensee employed in this state by an association licensee for a period

949not to exceed sixty days for any violation of such regulations. If any

950license is suspended, such stewards and judges of a meeting shall state

951the reasons therefor in writing. All fines imposed pursuant to this

952section shall be paid over to the General Fund upon receipt by the

953department. Any person or business organization fined or suspended

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956pursuant to chapter 54. Any person or business organization aggrieved

957by a decision of the [commissioner] commission following such a

958hearing shall have a right of appeal pursuant to section 4-183.

959(j) The [commissioner] commission shall have the power to require

960that the books and records of any licensee, other than an occupational

961licensee, shall be maintained in any manner which he may deem best,

962and that any financial or other statements based on such books and

963records shall be prepared in accordance with generally accepted

964accounting principles in such form as he shall prescribe. The

965[commissioner or his] commission or a commission designee shall also

966be authorized to visit, to investigate and to place expert accountants

967and such other persons as he may deem necessary, in the offices,

968tracks, frontons, off-track betting facilities or places of business of any

969such licensee, for the purpose of satisfying himself or herself that the

970[department's] commission's regulations are strictly complied with.

971(k) The [commissioner] commission may at any time for good cause

972require the removal of any employee or official employed by any

973licensee hereunder.

974(l) The [commissioner] commission may, on [his or her own] the

975commission's motion or upon application, exempt any person or

976business organization from the licensing requirements of this chapter

977or some or all of the disclosure requirements of chapter 226b, provided

978the applicant does not exercise control in or over an integral part of

979any activity which is authorized under this chapter. The burden of

980proving that an exemption should be granted rests solely with the

981applicant. The [commissioner] commission may limit or condition the

982terms of an exemption and such determination shall be final.

983(m) Any person aiding or abetting in the operation of an off-track

984betting system or the conduct of any meeting within this state at which

985racing or the exhibition of the game of jai alai shall be permitted for

986any stake, purse or reward, except in accordance with a license duly

987issued and unsuspended or unrevoked by the commissioner, shall be

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988guilty of a class A misdemeanor.

989(n) The majority of the membership of the board of directors of any

990corporation licensed to operate the off-track betting system or to hold

991or conduct any meeting within the state of Connecticut at which racing

992or the exhibition of the game of jai alai shall be permitted for any stake,

993purse or reward, shall be residents of the state of Connecticut.

994(o) Any license granted under this section, other than an association

995license authorizing the licensee to conduct a meeting or operate the off-

996track betting system, as described in subsection (a) of this section, or an

997affiliate license authorizing the licensee to exercise control in or over

998an association licensee, as described in subsection (e) of this section,

999shall be effective for not more than one year from the date of issuance.

1000 Initial application for and renewal of any license shall be in such form 1001 and manner as the [commissioner] commission shall prescribe by 1002 regulation.

1003 (p) Any person or business organization issued a license to conduct 1004 dog racing shall establish a pet adoption program for the proper 1005 housing and care of retired greyhounds and shall provide financial 1006 support for such program and any facility operated to implement such 1007 program.

1008 (q) Any person or business organization issued a license to conduct 1009 dog racing pursuant to subsection (c) of section 12-574c, as amended 1010 by this act, shall employ persons who, at the time of employment, are 1011 recipients of assistance under the state-administered general assistance 1012 program, state supplement program, medical assistance program, 1013 temporary family assistance program or supplemental nutrition 1014 assistance program to fill not less than twenty per cent of the positions 1015 created by the conversion of a jai alai fronton to a dog race track if such 1016 persons have been trained for such employment by public or publicly 1017 funded agencies in coordination with such licensee.

1018 (r) Any person or business organization issued a license to conduct 1019 dog racing pursuant to subsection (c) of section 12-574c, as amended

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1020 by this act, shall provide an on-site child care center, as described in 1021 section 19a-77, for use by employees of the dog race track. Such 1022 licensee shall employ persons who, at the time of employment, are 1023 recipients of aid under chapter 302 or 308 to fill not less than fifty per 1024 cent of the positions at such child care center if such persons have been 1025 trained for such employment by public or publicly funded agencies in 1026 coordination with such licensee.

1027 (s) Notwithstanding any other provisions of this chapter to the 1028 contrary, any person or business organization issued a license to 1029 conduct dog racing may operate on a year-round basis and may 1030 conduct such number of performances as it may elect, provided the 1031 total number of such performances does not exceed five hundred 1032 eighty performances in any calendar year.

1033 Sec. 30. Section 12-574a of the general statutes is repealed and the

1034 following is substituted in lieu thereof (Effective July 1, 2019):

1035 (a) Whenever a person or business organization files an application 1036 with the [department] commission for a license to conduct an activity 1037 regulated by section 12-574, as amended by this act, exclusive of 1038 renewal license applications, the [department] commission shall 1039 forward within five days to the town clerk of the town within which 1040 such activity is proposed to be carried on a statement specifying the 1041 prospective applicant, the proposed activity, the site on which such 1042 activity is proposed to be conducted and the fact that an application 1043 has been filed with the [department] commission. Within ten days 1044 after such statement has been filed, such town clerk shall cause notice 1045 of such filing to be published in a newspaper having a circulation in 1046 the town wherein the activity is to be conducted. The question of the 1047 approval of the conducting of such activity shall be submitted to the 1048 electors of such town at a special election called for the purpose to be 1049 held not less than thirty nor more than sixty days after such 1050 publication, in conformity with the provisions of section 9-369, or at a 1051 regular town election if such election is to be held more than sixty but 1052 not more than one hundred twenty days after such publication, such

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1053 question shall be so submitted and the vote shall be taken in the 1054 manner prescribed by said section 9-369. The town clerk shall notify 1055 the [department] commission of the results of such election. The 1056 disapproval of the conducting of such activity by a majority of those 1057 voting on the question shall be a bar to the granting of a license to such 1058 applicant to conduct such activity at such location. All costs incurred 1059 by a municipality in connection with such referendum shall be paid to 1060 said municipality by the person or business organization filing such 1061 application for such license. The provisions of this subsection shall not 1062 apply to any licensee authorized to operate the off-track betting system 1063 with respect to any off-track betting facility approved prior to June 25, 1064 1993.

1065 (b) No licensee may conduct any racing or jai alai event on any 1066 Sunday without the prior approval of the legislative body of the town 1067 in which the event is scheduled to take place.

1068 (c) No licensee authorized to operate the off-track betting system 1069 may conduct any off-track pari-mutuel wagering on any racing 1070 program on any Sunday without the prior approval of the legislative 1071 body of the town in which such off-track betting facility is located.

1072 (d) Notwithstanding the provisions of subsection (a) of this section, 1073 the prior approval of the legislative body only of the town shall be 1074 required in the event the [department] commission issues a license 1075 pursuant to subsection (c) of section 12-574c, as amended by this act.

1076 Sec. 31. Section 12-574c of the general statutes is repealed and the

1077 following is substituted in lieu thereof (Effective July 1, 2019):

1078 (a) The [Department of Consumer Protection] commission shall not 1079 issue a license authorizing any person, firm, corporation or association 1080 to conduct horse racing, dog racing or jai alai events.

1081 (b) Notwithstanding the provisions of subsection (a) of this section, 1082 the [department] commission may renew any license issued prior to 1083 May 23, 1979, or issue such a license to a currently operating facility.

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1084 (c) Notwithstanding the provisions of subsection (a) of this section, 1085 the [department] commission may, on or after July 5, 1991, issue one 1086 additional license authorizing a person or business organization to 1087 conduct dog racing to a person or business organization holding a 1088 license to conduct jai alai events or to the successor of such business 1089 organization upon the surrender of the license to conduct jai alai 1090 events.

1091 (d) No licensee shall move any horse race track, dog race track or jai 1092 alai fronton to any municipality other than the municipality in which 1093 such facility was located on July 5, 1991.

1094 Sec. 32. Section 12-574d of the general statutes is repealed and the

1095 following is substituted in lieu thereof (Effective July 1, 2019):

1096 (a) The [Commissioner of Consumer Protection] commission may 1097 order the random collection and testing of urine specimens from 1098 racing dogs following a race or at any time during a meet conducted 1099 by any licensee authorized to conduct dog racing events under the 1100 pari-mutuel system. If the [commissioner] commission determines 1101 from such random testing that the integrity of dog racing events may 1102 be compromised, the [commissioner] commission may order the 1103 conduct of more frequent testing at one or more dog race tracks for 1104 such period of time as the [commissioner] commission deems 1105 necessary or advisable. The [commissioner] commission shall 1106 determine the laboratory responsible for the conduct of such testing 1107 and the amount of the fee for such test which shall be based upon the 1108 actual cost of such test and which shall be payable on a basis 1109 determined by the [commissioner] commission. Each such licensee 1110 shall pay such fee directly to such laboratory with respect to racing 1111 dogs at its dog race track.

1112 (b) The [commissioner] commission shall adopt regulations, in 1113 accordance with the provisions of chapter 54, to implement the 1114 provisions of subsection (a) of this section. The [commissioner] 1115 commission may implement policies and procedures necessary to

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1116 carry out the provisions of subsection (a) of this section while in the 1117 process of adopting regulations, provided the [commissioner] 1118 commission prints notice of intent to adopt the regulations in the 1119 Connecticut Law Journal within twenty days after implementation. 1120 Such policies and procedures shall be valid until the time final 1121 regulations are effective.

1122 Sec. 33. Section 12-575 of the general statutes is repealed and the

1123 following is substituted in lieu thereof (Effective July 1, 2019):

1124 (a) The [department] commission may permit at racing events, 1125 exhibitions of the game of jai alai licensed under the provisions of this 1126 chapter or at off-track betting facilities, betting under a pari-mutuel 1127 system, so called, including standard pari-mutuel, daily double, 1128 exacta, quinella, trifecta, superfecta, twin trifecta, pick four and pick 1129 six betting, and such other forms of multiple betting as the department 1130 may determine.

1131 (b) The pari-mutuel system, so called, shall not be used or permitted 1132 at any location other than the race track at which the racing event is 1133 licensed to be conducted or the fronton at which the game of jai alai is 1134 licensed to be played or at an off-track betting facility operated by the 1135 [department] commission or by a licensee authorized to operate the 1136 off-track betting system. A computerized electronic totalizator system, 1137 approved by the [commissioner] commission, shall be used to conduct 1138 pari-mutuel wagering at each racing or jai alai event. A computerized 1139 electronic totalizator system approved by the [commissioner] 1140 commission and, where authorized by subsection (b) of section 12- 1141 571a, as amended by this act, and approved by the [commissioner] 1142 commission, a simulcast system shall be used to conduct pari-mutuel 1143 wagering and simulcasting of off-track betting race programs at off- 1144 track betting facilities. The [commissioner] commission may require 1145 any licensee to submit information concerning the daily operation of 1146 such totalizator or simulcast system which [he] the commission deems 1147 necessary for the effective administration of this chapter, including 1148 records of all wagering transactions, in such form and manner as [he]

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1149 the commission shall prescribe.

1150 (c) (1) Except as provided in subdivision (2) of this subsection, each 1151 licensee conducting horse racing events under the pari-mutuel system 1152 shall distribute all sums deposited in any pari-mutuel program to the 1153 holders of winning tickets therein, less seventeen per cent of the total 1154 deposits plus the breakage to the dime of the amount so retained; each 1155 licensee conducting jai alai events shall distribute all sums deposited in 1156 any pari-mutuel program to the holders of winning tickets therein, less 1157 a maximum of eighteen per cent of the deposits in the win, place or 1158 show pools and less a maximum of twenty-three per cent of the 1159 deposits in all other pools plus the breakage to the dime of the amount 1160 so retained; each licensee conducting dog racing events shall distribute 1161 all sums deposited in any pari-mutuel program to the holders of 1162 winning tickets therein, less a maximum of nineteen per cent of the 1163 deposits in the win, place or show pools and less a maximum of 1164 twenty-seven per cent of the deposits in all other pools plus the 1165 breakage to the dime of the amount so retained, or, shall distribute all 1166 sums deposited in all of its pari-mutuel programs conducted on any 1167 day to the holders of winning tickets therein less twenty per cent of the 1168 total deposits plus the breakage to the dime of the amount so retained, 1169 provided on and after July 1, 1992, each licensee conducting dog racing 1170 events on July 5, 1991, shall allocate four per cent of all sums deposited 1171 in any pari-mutuel program to purses, one-quarter of one per cent to 1172 capital expenditures for alterations, additions, replacement changes, 1173 improvements or major repairs to or upon the property owned or 1174 leased by any such licensee and used for such racing events, and one- 1175 quarter of one per cent to promotional marketing, to reduce the costs 1176 of admission, programs, parking and concessions and to offer 1177 entertainment and giveaways. Each licensee conducting dog racing 1178 events shall, on an annual basis, submit to the [department] 1179 commission certified financial statements verifying the use of such 1180 allocations for purses, capital improvements and promotional 1181 marketing. (2) Each licensee conducting racing or jai alai events may 1182 carry over all or a portion of the sums deposited in any pari-mutuel

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1201 pari-mutuel pool on each and every day the licensee conducts racing 1202 events or (B) on or after July 1, 1993, in the case of any licensee licensed 1203 prior to July 5, 1991, (i) a tax at the rate of two per cent on any amount 1204 up to and including fifty million dollars of the total money wagered in 1205 the pari-mutuel pool in any state fiscal year during which a licensee 1206 licensed prior to July 5, 1991, conducts racing events, (ii) a tax at the 1207 rate of three per cent on any amount in excess of fifty million dollars 1208 and up to and including eighty million dollars of the total money 1209 wagered in the pari-mutuel pool in any state fiscal year during which a 1210 licensee licensed prior to July 5, 1991, conducts racing events, and (iii) 1211 a tax at the rate of four per cent on any amount in excess of eighty 1212 million dollars of the total money wagered in the pari-mutuel pool in 1213 any state fiscal year during which a licensee licensed prior to July 5, 1214 1991, conducts racing events, and (2) a tax equal to one-half of the 1215 breakage to the dime resulting from such wagering.

1216 (f) Each licensee operating a fronton at which the game of jai alai is 1217 licensed to be played under the pari-mutuel system shall pay to the 1218 state and there is hereby imposed: (1) (A) A tax at the rate of two per 1219 cent on any amount up to and including fifty million dollars of the 1220 total money wagered on such games, (B) a tax at the rate of three per 1221 cent of any amount in excess of fifty million dollars and up to and 1222 including eighty million dollars of the total money wagered on such 1223 games, and (C) a tax at the rate of four per cent on any amount in 1224 excess of eighty million dollars of the total money wagered on such 1225 games, and (2) a tax equal to one-half of the breakage to the dime 1226 resulting from such wagering.

1227 (g) The licensee authorized to operate the system of off-track betting 1228 under the pari-mutuel system shall pay to the state and there is hereby 1229 imposed: (1) A tax at the rate of three and one-half per cent on the total 1230 money wagered in the pari-mutuel pool on each and every day the 1231 licensee broadcasts racing events, and (2) a tax equal to one-half of the 1232 breakage to the dime resulting from such wagering.

1233 (h) The [commissioner] commission shall assess and collect the taxes

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1234 imposed by this chapter under such regulations as [he] the commission 1235 may prescribe, in accordance with the provisions of chapter 54. All 1236 taxes hereby imposed shall be due and payable by the close of the next 1237 banking day after each day's racing or jai alai exhibition. If any such 1238 tax is not paid when due, the [commissioner] commission shall impose 1239 a delinquency assessment upon the licensee in the amount of ten per 1240 cent of such tax or ten dollars, whichever amount is greater, plus 1241 interest at the rate of one and one-half per cent of the unpaid principal 1242 of such tax for each month or fraction of a month from the date such 1243 tax is due to the date of payment. Subject to the provisions of section 1244 12-3a, the [commissioner] commission may waive all or part of the 1245 penalties provided under this subsection when it is proven to [his] the 1246 commission's satisfaction that the failure to pay such tax within the 1247 time required was due to reasonable cause and was not intentional or 1248 due to neglect. Failure to pay any such delinquent tax upon demand 1249 may be considered by the [commissioner] commission as cause for 1250 revocation of license.

1251 (i) The [commissioner] commission shall devise a system of 1252 accounting and shall supervise betting at such track, fronton or off- 1253 track betting facility in such manner that the rights of the state are 1254 protected and shall collect all fees and licenses under such regulations 1255 as [he] the commission shall prescribe, in accordance with the 1256 provisions of chapter 54.

1257 (j) The amount of unclaimed moneys, as determined by the 1258 [commissioner] commission, held by any licensee other than by 1259 licensees authorized to operate a jai alai fronton, dog race track or the 1260 off-track betting system on account of outstanding and uncashed 1261 winning tickets, shall be due and payable to the [commissioner] 1262 commission, for deposit in the General Fund of the state, at the 1263 expiration of one year after the close of the meeting during which such 1264 tickets were issued. If any such unclaimed moneys are not paid when 1265 due, the [commissioner] commission shall impose a delinquency 1266 assessment upon the licensee in the amount of ten per cent of such 1267 moneys or ten dollars, whichever amount is greater, plus interest at the

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1268 rate of one and one-half per cent of the unpaid principal of such 1269 moneys for each month or fraction of a month from the date such 1270 moneys are due to the date of payment. Subject to the provisions of 1271 section 12-3a, the [commissioner] commission may waive all or part of 1272 the penalties provided under this subsection when it is proven to his 1273 satisfaction that the failure to pay such moneys to the state within the 1274 time required was due to reasonable cause and was not intentional or 1275 due to neglect.

1276 (k) The [commissioner] commission may authorize deputies and the 1277 Commissioner of Revenue Services or his or her agents are authorized 1278 to enter upon the premises at any racing event, jai alai exhibition or 1279 off-track betting race event for the purpose of inspecting books and 1280 records, supervising and examining cashiers, ticket sellers, pool sellers 1281 and other persons handling money at said event and such other 1282 supervision as may be necessary for the maintenance of order at such 1283 event.

1284 (l) (1) The [commissioner] commission shall pay each municipality 1285 in which a horse race track is located, one-quarter of one per cent of the 1286 total money wagered on horse racing events at such race track, except 1287 that the [commissioner] commission shall pay each such municipality 1288 having a population in excess of fifty thousand one per cent of the total 1289 money wagered at such horse racing events in such municipality. The 1290 [commissioner] commission shall pay each municipality in which a jai 1291 alai fronton or dog race track is located one-half of one per cent of the 1292 total money wagered on jai alai games or dog racing events at such 1293 fronton or dog race track, except that the [commissioner] commission 1294 shall pay each such municipality having a population in excess of fifty 1295 thousand one per cent of the total money wagered on jai alai games or 1296 dog racing events at such fronton or dog race track located in such 1297 municipality. The [commissioner] commission shall pay each 1298 municipality in which an off-track betting facility is located one and 1299 three-fifths per cent of the total money wagered in such facility less 1300 amounts paid as refunds or for cancellations. The [commissioner] 1301 commission shall pay to both the city of New Haven and the town of

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1302 Windsor Locks an additional one-half of one per cent of the total 1303 money wagered less any amount paid as a refund or a cancellation in 1304 any facility equipped with screens for simulcasting after October 1, 1305 1997, located within a fifteen-mile radius of facilities in New Haven 1306 and Windsor Locks. Payment shall be made not less than four times a 1307 year and not more than twelve times a year as determined by the 1308 [commissioner] commission, and shall be made from the tax imposed 1309 pursuant to subsection (d) of this section for horse racing, subsection 1310 (e) of this section for dog racing, subsection (f) of this section for jai alai 1311 games and subsection (g) of this section for off-track betting. (2) If, for 1312 any calendar year after the surrender of a license to conduct jai alai 1313 events by any person or business organization pursuant to subsection 1314 (c) of section 12-574c, as amended by this act, and prior to the opening 1315 of any dog race track by such person or business organization, any 1316 other person or business organization licensed to conduct jai alai 1317 events is authorized to conduct a number of performances greater than 1318 the number authorized for such licensee in the previous calendar year, 1319 the [commissioner] commission shall pay the municipality in which 1320 the jai alai fronton for which such license was surrendered was 1321 located, rather than the municipality in which the jai alai fronton 1322 conducting the increased performances is located, one-half of one per 1323 cent of the total money wagered on jai alai games for such increased 1324 performances at the fronton which conducted the additional 1325 performances, except that the [commissioner] commission shall pay 1326 each such municipality having a population in excess of fifty thousand 1327 one per cent of the total money wagered on jai alai games for such 1328 increased performances at such fronton. (3) During any state fiscal year 1329 ending on or after June 30, 1993, the [commissioner] commission shall 1330 pay each municipality in which a dog race track was operating prior to 1331 July 5, 1991, one per cent of the total money wagered on dog racing 1332 events at such dog race track. (4) During the state fiscal year ending 1333 June 30, 2001, each municipality in which a dog race track was 1334 operating prior to July 5, 1991, shall pay the Northeast Connecticut 1335 Economic Alliance, Inc. two-tenths of one per cent of the total money 1336 wagered on dog racing events at any dog race track operating prior to

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1337 July 5, 1991. (5) In the event a licensee incurs a loss from the operation 1338 of a pari-mutuel facility, as determined by the [commissioner] 1339 commission, the legislative body of the city or town in which such 1340 facility is located may direct the [commissioner] commission to credit 1341 or rebate all or a part of the revenue otherwise due to the municipality 1342 back to the facility. In no case shall such credit and such 1343 reimbursement exceed the amount of the licensee's loss, and in no 1344 fiscal year shall these provisions affect the total fees paid to the state by 1345 the authorized operator of the off-track betting system on its off-track 1346 betting activities.

1347 Sec. 34. Section 12-575c of the general statutes is repealed and the

1348 following is substituted in lieu thereof (Effective July 1, 2019):

1349 (a) The [commissioner] commission may require all pari-mutuel 1350 betting conducted at any facility conducting betting under a pari- 1351 mutuel system within the state which is based on the results of any 1352 event which occurs at any place other than the facility conducting such 1353 betting, whether such place is within or without the state, to be 1354 combined into a single, state-wide pool for each such event, or for any 1355 of them, as the [commissioner] commission may determine.

1356 (b) The [commissioner] commission may permit all pari-mutuel 1357 betting conducted at any facility conducting betting under a pari- 1358 mutuel system within the state which is based on the results of any 1359 event which occurs at such facility, to be combined with the betting on 1360 such event at another facility where pari-mutuel betting is conducted, 1361 whether such facility is within or without the state, as a single pool for 1362 each event.

1363 Sec. 35. Section 12-576 of the general statutes is repealed and the

1364 following is substituted in lieu thereof (Effective July 1, 2019):

1365 (a) Any person who knowingly permits any minor to wager in any 1366 gambling activity authorized under this chapter and any minor who 1367 places a wager in any gambling activity authorized under this chapter 1368 shall be guilty of a class A misdemeanor.

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1369 (b) Any person who knowingly permits a minor to be present in any 1370 room, office, building or establishment when off-track betting 1371 authorized under this chapter takes place, or at any racetrack or 1372 fronton when any meeting authorized under this chapter takes place, 1373 shall be fined not more than twenty-five dollars. No minor shall be 1374 present in any room, office, building or establishment when off-track 1375 betting authorized under this chapter takes place, or at any racetrack 1376 or fronton when any meeting authorized under this chapter takes 1377 place. Any minor sixteen years of age or over present in any room, 1378 office, building or establishment when off-track betting authorized 1379 under this chapter takes place, or at any racetrack or fronton when any 1380 meeting authorized under this chapter takes place, shall be fined not 1381 more than twenty-five dollars. Any licensee authorized to conduct a 1382 meeting for the purpose of jai alai or racing shall be fined not more 1383 than fifty dollars if any minor is found at such facility in violation of 1384 this subsection.

1385 (c) Notwithstanding any provision of subsection (a) or (b) of this 1386 section, the [commissioner] commission may issue a license to a minor 1387 sixteen years of age or older, under the provisions of section 12-578, as 1388 amended by this act, and the regulations adopted thereunder, 1389 provided written permission from a parent or legal guardian of such 1390 minor is filed with the department.

1391 (d) The [commissioner] commission shall not pay any claim for 1392 winnings when such claim is made by, or on behalf of, a minor who 1393 has wagered in any gambling activity authorized under this chapter. 1394 Nothing in this subsection shall prohibit an adult from making a 1395 wager on behalf of a minor, provided the money for such wager is not 1396 provided by the minor from funds under such minor's control.

1397 (e) Nothing in this section shall be construed to prohibit any minor 1398 from entering onto a parking area at any building or establishment 1399 described in subsection (b) of this section for the purpose of attending 1400 an event at which gambling activities do not occur.

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1401 Sec. 36. Section 12-577 of the general statutes is repealed and the

1402 following is substituted in lieu thereof (Effective July 1, 2019):

1403 The [commissioner] commission shall annually cause to be made by 1404 some competent person or persons [in] within the [department] 1405 commission a thorough audit of the books and records of each 1406 association licensee under this chapter and each casino gaming facility 1407 and the [commissioner] commission may, from time to time, cause to 1408 be made by some competent person [in] within the [department] 1409 commission a thorough audit of the books and records of any other 1410 person or business organization licensed under this chapter. All such 1411 audit records shall be kept on file in the [commissioner's] commission's 1412 office at all times. Each licensee and casino gaming facility shall permit 1413 access to its books and records for the purpose of having such audit 1414 made, and shall produce, upon written order of the [commissioner] 1415 commission, any documents and information required for such 1416 purpose.

1417 Sec. 37. Section 12-578 of the general statutes is repealed and the

1418 following is substituted in lieu thereof (Effective July 1, 2019):

1419 (a) The [commissioner] commission shall adopt regulations, in 1420 accordance with the provisions of chapter 54, governing registration 1421 and the issuance and annual renewal of licenses and payment of 1422 annual nonrefundable application fees for the same in accordance with

1423 the following schedule:

1424 (1) Registration: (A) Stable name, one hundred dollars; (B) 1425 partnership name, one hundred dollars; (C) colors, twenty dollars; (D) 1426 kennel name, one hundred dollars.

1427 (2) Licenses: (A) Owner, one hundred dollars; (B) trainer, one 1428 hundred dollars; (C) assistant trainer, one hundred dollars; (D) jockey, 1429 forty dollars; (E) jockey agent, for each jockey, one hundred dollars; (F) 1430 stable employees, including exercise boy, groom, stable foreman, hot 1431 walker, outrider, twenty dollars; (G) veterinarian, one hundred dollars; 1432 (H) jockey apprentice, forty dollars; (I) driver, one hundred dollars; (J)

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1433 valet, twenty dollars; (K) blacksmith, twenty dollars; (L) plater, twenty 1434 dollars; (M) concessionaire, for each concession, two hundred fifty 1435 dollars; (N) concessionaire affiliate, for each concession of the 1436 concessionaire, two hundred fifty dollars; (O) concession employees, 1437 twenty dollars; (P) jai alai players, one hundred dollars; (Q) officials 1438 and supervisors, one hundred dollars; (R) pari-mutuel employees, 1439 forty dollars; (S) other personnel engaged in activities regulated under 1440 this chapter, twenty dollars; (T) vendor, for each contract, two hundred 1441 fifty dollars; (U) totalizator, for each contract, two hundred fifty 1442 dollars; (V) vendor and totalizator affiliates, for each contract of the 1443 vendor or totalizator, two hundred fifty dollars; (W) gaming employee, 1444 forty dollars; (X) nongaming vendor, two hundred fifty dollars; (Y) 1445 gaming services, five hundred dollars; and (Z) gaming affiliate, two 1446 hundred fifty dollars. For the purposes of this subdivision, 1447 "concessionaire affiliate" means a business organization, other than a 1448 shareholder in a publicly traded corporation, that may exercise control 1449 in or over a concessionaire; and "concessionaire" means any individual 1450 or business organization granted the right to operate an activity at a 1451 dog race track or off-track betting facility for the purpose of making a 1452 profit that receives or, in the exercise of reasonable business judgment, 1453 can be expected to receive more than twenty-five thousand dollars or 1454 twenty-five per cent of its gross annual receipts from such activity at 1455 such track or facility.

1456 (b) The [commissioner] commission shall require each applicant for 1457 a license under subdivision (2) of subsection (a) of this section to 1458 submit to state and national criminal history records checks before 1459 such license is issued. The criminal history records checks required 1460 pursuant to this subsection shall be conducted in accordance with 1461 section 29-17a.

1462 Sec. 38. Section 12-578a of the general statutes is repealed and the

1463 following is substituted in lieu thereof (Effective July 1, 2019):

1464 (a) Not later than twelve months after the date any authorization of 1465 a casino gaming facility by any provision of the general statutes or a

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1466 public or special act is effective, the [commissioner] commission shall 1467 adopt regulations, in accordance with the provisions of chapter 54, for 1468 the administration of casino gaming facilities. Such regulations shall 1469 include provisions to protect the public interest in the integrity of 1470 gaming operations and reduce the dangers of unsuitable, unfair or 1471 illegal practices, methods and activities in the conduct of gaming. Such

1472 regulations shall include, but need not be limited to:

1473 (1) Minimum accounting standards for a casino gaming facility;

1474 (2) Minimum security procedures including the video monitoring of 1475 casino gaming facilities;

1476 (3) Approved hours of operation for gaming and nongaming 1477 activities at casino gaming facilities;

1478 (4) Procedures governing the manufacture, sale, lease and 1479 distribution of gaming devices and equipment for use in casino 1480 gaming facilities;

1481 (5) Procedures for the recovery of winnings by patrons of casino 1482 gaming facilities;

1483 (6) Procedures governing how gross gaming revenue is calculated 1484 and reported by a casino gaming facility;

1485 (7) Requirements for regular auditing of the financial statements of a 1486 casino gaming facility;

1487 (8) Procedures to be followed by any casino gaming facility for cash 1488 transactions;

1489 (9) Procedures regarding the maintenance of lists of persons banned 1490 from any casino gaming facility and security measures to enforce such 1491 bans;

1492 (10) Standards for the provision of complimentary goods and 1493 services to casino gaming facility patrons;

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1494 (11) Minimum standards of training for persons employed in a 1495 casino gaming facility;

1496 (12) Procedures governing the submission of standards of operation 1497 and management of gaming operations by casino gaming facilities to 1498 the commissioner; and

1499 (13) Requirements for information and reports from casino gaming 1500 facilities to enable effective auditing of casino gaming operations.

1501 (b) Until such regulations are adopted and in effect, a casino gaming 1502 facility may operate pursuant to its standards of operation and 1503 management, provided such standards are approved by the 1504 [commissioner] commission pursuant to section 12-578b, as amended 1505 by this act.

1506 Sec. 39. Section 12-578b of the general statutes is repealed and the

1507 following is substituted in lieu thereof (Effective July 1, 2019):

1508 (a) Each casino gaming facility shall submit to the [commissioner] 1509 commission a description of its standards of operation and

1510 management of all gaming operations. The description shall include: 1511 (1) Accounting controls to be used in casino gaming operations; (2) job 1512 descriptions for all positions involved in casino gaming operations; (3) 1513 procedures for the security of chips, cash and other cash equivalents 1514 used in authorized games; (4) procedures for the safety and security of 1515 patrons of the casino gaming facility; (5) procedures and rules 1516 governing the conduct of any authorized games conducted at the 1517 casino gaming facility; (6) a certification by the attorney of the casino 1518 gaming facility that the submitted standards of operation and 1519 management conform to state law and regulations governing casino 1520 gaming operations; (7) a certification by the chief financial officer of the 1521 casino gaming facility or an independent auditor that the submitted 1522 standards of operation and management provide adequate and 1523 effective controls, establish a consistent overall system of procedures 1524 and administrative and accounting controls and conform to generally 1525 accepted accounting principles; and (8) any other standards required

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1526 by the [commissioner] commission.

1527 (b) The [commissioner] commission shall approve or reject a 1528 submission of standards of operation and management required under 1529 subsection (a) of this section not later than sixty days after the date on 1530 which the [commissioner] commission received such standards. If the 1531 [commissioner] commission fails to approve or reject a submission of 1532 standards of operation and management not later than sixty days after 1533 the date on which the [commissioner] commission received such 1534 standards of operation and management, such standards of operation 1535 and management shall be deemed approved. No casino gaming facility 1536 may commence casino gaming operations unless such standards of 1537 operation and management are approved by the [commissioner] 1538 commission or deemed approved.

1539 (c) No casino gaming facility shall revise any standards of operation 1540 and management that have been approved by the [commissioner] 1541 commission or deemed approved pursuant to subsection (b) of this 1542 section unless the revision has been approved by the [commissioner] 1543 commission. If the [commissioner] commission fails to approve or 1544 reject a submitted revision not later than sixty days after the date on 1545 which the [commissioner] commission received such revision, such 1546 revision shall be deemed approved.

1547 (d) A casino gaming facility aggrieved by an action of the 1548 [commissioner] commission under the provisions of this section may 1549 request a hearing before the commissioner. The [commissioner] 1550 commission shall hold such hearing in accordance with the provisions 1551 of chapter 54.

1552 (e) The [commissioner] commission shall periodically review a 1553 casino gaming facility's compliance with state law and regulations 1554 governing casino gaming facilities.

1555 Sec. 40. Section 12-578c of the general statutes is repealed and the

1556 following is substituted in lieu thereof (Effective July 1, 2019):

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1557 (a) No person may commence or continue employment on the 1558 gaming floor or in a gaming-related position in a casino gaming facility 1559 unless such person holds a gaming employee license issued by the 1560 [commissioner] commission pursuant to this section.

1561 (b) No person or business organization may provide more than 1562 twenty-five thousand dollars of nongaming goods or services per year 1563 in a casino gaming facility unless such person or business organization 1564 holds a nongaming vendor license issued by the [commissioner] 1565 commission pursuant to this section.

1566 (c) No person or business organization may provide gaming 1567 services or gaming equipment to a casino gaming facility unless such 1568 person or business organization holds a gaming services license issued 1569 by the [commissioner] commission pursuant to this section.

1570 (d) No business organization, other than a shareholder in a publicly 1571 traded corporation, may exercise control in or over a licensee licensed 1572 pursuant to this section unless such business organization holds a 1573 gaming affiliate license issued by the [commissioner] commission 1574 pursuant to this section.

1575 (e) Each applicant for a license issued pursuant to this section shall 1576 submit a completed application on forms prescribed by the 1577 [commissioner] commission. Such application forms may require the 1578 applicant to submit information as to: (1) Financial standing and credit; 1579 (2) moral character; (3) criminal record, if any; (4) previous 1580 employment; (5) corporate, partnership or association affiliations; (6) 1581 ownership of personal assets; and (7) any other information as the 1582 [commissioner] commission deems pertinent to the issuance of such 1583 license.

1584 (f) The [commissioner] commission shall, as soon as practicable after 1585 the receipt of a completed license application, grant or deny the license 1586 application. Any license issued by the [commissioner] commission 1587 pursuant to this section shall be effective for not more than one year 1588 from the date of issuance. Applications for renewal of any such license

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1589 shall be on such form as prescribed by the [commissioner] commission. 1590 Any holder of a license issued pursuant to this section who submits an 1591 application to renew such license may continue to be employed by a 1592 casino gaming facility or provide services to a casino gaming facility 1593 until the [commissioner] commission denies such renewal application.

1594 (g) The [commissioner] commission may issue a temporary license 1595 at the request of any person who has submitted an application for a 1596 license under this section. The [commissioner] commission shall 1597 require such applicant to submit to state and national criminal history 1598 records checks before receiving a temporary license. The criminal 1599 history records checks shall be conducted in accordance with section 1600 29-17a. A temporary license shall expire when the [commissioner] 1601 commission grants or denies the pending application for a license 1602 under this section.

1603 (h) The [commissioner] commission may investigate any person or 1604 business organization that holds a license pursuant to this section at 1605 any time and may suspend or revoke such license for good cause after 1606 a hearing held in accordance with the provisions of chapter 54. Any 1607 person or business organization whose license is suspended or 1608 revoked, or any applicant aggrieved by the action of the 1609 [commissioner] commission concerning an application for a license or 1610 renewal application, may appeal pursuant to section 4-183.

1611 Sec. 41. Section 12-578d of the general statutes is repealed and the

1612 following is substituted in lieu thereof (Effective July 1, 2019):

1613 (a) For the purposes of this section, "alcoholic liquor" has the same 1614 meaning as provided in section 30-1.

1615 (b) Except as provided in subsection (c) of this section, no person 1616 under the minimum age for the purchase of alcoholic liquor under the 1617 provisions of chapter 545 shall be admitted onto the gaming floor of 1618 any casino gaming facility nor be permitted to participate in any 1619 authorized games.

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1620 (c) A person eighteen years of age or older but under the minimum 1621 age for the purchase of alcoholic liquor may be employed in a casino 1622 gaming facility, provided such person is licensed by the 1623 [commissioner] commission pursuant to section 12-578c, as amended 1624 by this act, and such employment does not involve handling or serving 1625 alcoholic liquor.

1626 Sec. 42. Section 12-578e of the general statutes is repealed and the

1627 following is substituted in lieu thereof (Effective July 1, 2019):

1628 (a) Commencing in any fiscal year that a casino gaming facility is 1629 authorized by any provision of the general statutes to conduct 1630 authorized games, and on or before September thirtieth in each fiscal 1631 year thereafter, the [commissioner] commission shall: (1) Estimate, 1632 after consultation with each casino gaming facility, the reasonable and 1633 necessary costs that will be incurred by the [department] commission 1634 in the next fiscal year to regulate casino gaming facilities under 1635 chapters 226 and 545; and (2) assess each casino gaming facility its 1636 share of such estimated costs pro rata according to its annualized share 1637 of the gross gaming revenue of all casino gaming facilities in the prior 1638 fiscal year, if any. The estimated costs shall not exceed the estimate of 1639 expenditure requirements transmitted by the [commissioner] 1640 commission pursuant to section 4-77. The assessment for any fiscal 1641 year shall be: (A) Reduced pro rata by the amount of any surplus from 1642 the assessment of the prior fiscal year, which shall be maintained in 1643 accordance with subsection (d) of this section, or (B) increased pro rata 1644 by the amount of any deficit from the assessment of the prior fiscal 1645 year.

1646 (b) Each casino gaming facility shall pay to the [commissioner] 1647 commission the amount assessed to such casino gaming facility not 1648 later than the date specified by the [commissioner] commission for 1649 payment, provided such date is not less than thirty days from the date 1650 of such assessment. The [commissioner] commission shall remit to the 1651 Treasurer all funds received pursuant to this section.

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1652 (c) (1) There is established a fund to be known as the "State Gaming 1653 Regulatory Fund". The fund shall contain any moneys required or 1654 permitted to be deposited in the fund and shall be held by the 1655 Treasurer separate and apart from all other moneys, funds and 1656 accounts. Investment earnings credited to the assets of said fund shall 1657 become part of the assets of said fund. Any balance remaining in said 1658 fund at the end of any fiscal year shall be carried forward in said fund 1659 for the fiscal year next succeeding. Moneys in the fund shall be 1660 expended by the Treasurer for the purposes of paying the costs 1661 incurred by the [department] commission to regulate casino gaming 1662 facilities.

1663 (2) The Treasurer shall deposit all funds received pursuant to 1664 subsection (b) of this section in the State Gaming Regulatory Fund.

1665 (d) On or before September thirtieth, annually, the Comptroller shall 1666 calculate the actual reasonable and necessary costs incurred by the 1667 [department] commission to regulate casino gaming facilities during 1668 the prior fiscal year. The Treasurer shall set aside within the State 1669 Gaming Regulatory Fund amounts received in excess of such actual 1670 costs. Such excess amounts shall be considered a surplus for the 1671 purposes of subsection (a) of this section.

1672 (e) Any casino gaming facility aggrieved by an assessment under 1673 the provisions of this section may request a hearing before the 1674 [commissioner] commission not later than thirty days after such 1675 assessment. The [commissioner] commission shall hold such hearing in 1676 accordance with the provisions of chapter 54 not later than thirty days 1677 after receiving such request.

1678 Sec. 43. Section 12-578f of the general statutes is repealed and the

1679 following is substituted in lieu thereof (Effective July 1, 2019):

1680 (a) For the purposes of this section and section 12-578g:

1681 (1) "Authorized games" means any game of chance, including, but 1682 not limited to, blackjack, poker, dice, money-wheels, roulette, baccarat,

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1683 chuck-a-luck, pan game, over and under, horse race game, acey-deucy, 1684 beat the dealer, bouncing ball, video facsimile game and any other 1685 game of chance authorized by the [Commissioner of Consumer 1686 Protection] commission;

1687 (2) "Mashantucket Pequot memorandum of understanding" means 1688 the memorandum of understanding entered into by and between the 1689 state and the Mashantucket Pequot Tribe on January 13, 1993, as 1690 amended on April 30, 1993;

1691 (3) "Mashantucket Pequot procedures" means the Final

1692 Mashantucket Pequot Gaming Procedures prescribed by the Secretary 1693 of the United States Department of the Interior pursuant to Section 1694 2710(d)(7)(B)(vii) of Title 25 of the United States Code and published in 1695 56 Federal Register 24996 (May 31, 1991);

1696 (4) "MMCT Venture, LLC" means a limited liability company 1697 described in subsection (d) of this section;

1698 (5) "Mohegan compact" means the Tribal-State Compact entered 1699 into by and between the state and the Mohegan Tribe of Indians of 1700 Connecticut on May 17, 1994; and

1701 (6) "Mohegan memorandum of understanding" means the 1702 memorandum of understanding entered into by and between the state 1703 and the Mohegan Tribe of Indians of Connecticut on May 17, 1994.

1704 (b) MMCT Venture, LLC, is authorized to conduct authorized 1705 games at a casino gaming facility at 171 Bridge Street, East Windsor, 1706 Connecticut.

1707 (c) Such authorization shall not be effective unless the following

1708 conditions have been met:

1709 (1) (A) The Governor enters into amendments to the Mashantucket 1710 Pequot procedures and to the Mashantucket Pequot memorandum of 1711 understanding with the Mashantucket Pequot Tribe and amendments 1712 to the Mohegan compact and to the Mohegan memorandum of

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1713 understanding with the Mohegan Tribe of Indians of Connecticut 1714 concerning the operation of a casino gaming facility in the state.

1715 (B) The amendments to the Mashantucket Pequot procedures and 1716 the Mohegan compact shall include a provision that the authorization 1717 of MMCT Venture, LLC, to conduct authorized games in the state does 1718 not terminate the moratorium against the operation of video facsimile 1719 games by the Mashantucket Pequot Tribe and Mohegan Tribe of 1720 Indians of Connecticut on each tribe's reservation.

1721 (C) The amendments to each tribe's memorandum of understanding 1722 shall include a provision that the authorization of MMCT Venture, 1723 LLC, to conduct authorized games in the state does not relieve each 1724 tribe from each tribe's obligation to contribute a percentage of the gross 1725 operating revenues of video facsimile games to the state as provided in 1726 each tribe's memorandum of understanding.

1727 (2) The amendments to the Mashantucket Pequot procedures, the 1728 Mashantucket Pequot memorandum of understanding, the Mohegan 1729 compact and the Mohegan memorandum of understanding are 1730 approved or deemed approved by the Secretary of the United States 1731 Department of the Interior pursuant to the federal Indian Gaming 1732 Regulatory Act, P.L. 100-497, 25 USC 2701 et seq., and its 1733 implementing regulations. If such approval is overturned by a court in 1734 a final judgment, which is not appealable, the authorization provided 1735 under this section shall cease to be effective.

1736 (3) The amendments to the Mashantucket Pequot procedures and to 1737 the Mohegan compact are approved by the General Assembly 1738 pursuant to section 3-6c.

1739 (4) The amendments to the Mashantucket Pequot memorandum of 1740 understanding and to the Mohegan memorandum of understanding 1741 are approved by the General Assembly pursuant to the process 1742 described in section 3-6c.

1743 (5) The governing bodies of the Mashantucket Pequot Tribe and

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1744 Mohegan Tribe of Indians of Connecticut enact resolutions providing: 1745 (A) That if MMCT Venture, LLC, fails to pay any fees or taxes due the 1746 state, the tribes, as the members of MMCT Venture, LLC, waive the 1747 possible defense of sovereign immunity with respect to any action or 1748 claim by the state against the tribes as the members of MMCT Venture, 1749 LLC, to the extent such action or claim is permitted to be brought 1750 against a member of a limited liability company under state law to 1751 collect any fees or taxes, while preserving any other defenses available 1752 to the tribes, and (B) that the venue for such action or claim shall be in 1753 the judicial district of Hartford.

1754 (d) Such authorization shall apply to MMCT Venture, LLC, 1755 provided: (1) MMCT Venture, LLC, is a limited liability company 1756 jointly and exclusively owned by the Mashantucket Pequot Tribe and 1757 the Mohegan Tribe of Indians of Connecticut; (2) no other person or 1758 business organization holds an equity interest in MMCT Venture, LLC; 1759 and (3) each tribe holds at least a twenty-five per cent equity interest in 1760 MMCT Venture, LLC. If MMCT Venture, LLC, ceases to be a limited 1761 liability company jointly and exclusively owned by the Mashantucket 1762 Pequot Tribe and the Mohegan Tribe of Indians of Connecticut in 1763 which each tribe holds at least a twenty-five per cent equity interest, 1764 such authorization shall be void.

1765 Sec. 44. Section 12-578aa of the general statutes is repealed and the

1766 following is substituted in lieu thereof (Effective July 1, 2019):

1767 (a) For the purposes of this section:

1768 (1) "Entry fee" means the amount of cash or cash equivalent that is 1769 required to be paid by a fantasy contest player to a fantasy contest 1770 operator to participate in a fantasy contest;

1771 (2) "Fantasy contest" means any online fantasy or simulated game or 1772 contest with an entry fee in which: (A) The value of all prizes and 1773 awards offered to winning fantasy contest players is established and 1774 made known to the players in advance of the game or contest; (B) all 1775 winning outcomes reflect the knowledge and skill of the players and

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1776 are determined predominantly by accumulated statistical results of the 1777 performance of individuals, including athletes in the case of sporting 1778 events; and (C) no winning outcome is based on the score, point 1779 spread or any performance of any single actual team or combination of 1780 teams or solely on any single performance of an individual athlete or 1781 player in any single actual sporting event. Fantasy contests shall not 1782 include lottery games;

1783 (3) "Fantasy contest operator" means a person or entity that operates 1784 a fantasy contest and offers such fantasy contest to members of the 1785 general public in the state;

1786 (4) "Fantasy contest player" means a person who participates in a 1787 fantasy contest offered by a fantasy contest operator;

1788 (5) "Gross receipts" means the amount equal to the total of all entry 1789 fees that a fantasy contest operator collects from all fantasy contest 1790 players, less the total of all sums paid out as prizes to all fantasy 1791 contest players, multiplied by the location percentage;

1792 (6) "Location percentage" means the percentage rounded to the 1793 nearest tenth of a per cent of the total of entry fees collected from 1794 fantasy contest players located in the state, divided by the total of 1795 entry fees collected from all fantasy contest players;

1796 (7) "Mashantucket Pequot memorandum of understanding" means 1797 the memorandum of understanding entered into by and between the 1798 state and the Mashantucket Pequot Tribe on January 13, 1993, as 1799 amended on April 30, 1993;

1800 (8) "Mashantucket Pequot procedures" means the Final

1801 Mashantucket Pequot Gaming Procedures prescribed by the Secretary 1802 of the United States Department of the Interior pursuant to Section 1803 2710(d)(7)(B)(vii) of Title 25 of the United States Code and published in 1804 56 Federal Register 24996 (May 31, 1991);

1805 (9) "Mohegan compact" means the Tribal-State Compact entered

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1806 into by and between the state and the Mohegan Tribe of Indians of 1807 Connecticut on May 17, 1994; and

1808 (10) "Mohegan memorandum of understanding" means the 1809 memorandum of understanding entered into by and between the state 1810 and the Mohegan Tribe of Indians of Connecticut on May 17, 1994.

1811 (b) The provisions of this section shall not be effective unless the

1812 following conditions have been met:

1813 (1) The Governor enters into amendments to the Mashantucket 1814 Pequot procedures and to the Mashantucket Pequot memorandum of 1815 understanding with the Mashantucket Pequot Tribe and amendments 1816 to the Mohegan compact and to the Mohegan memorandum of 1817 understanding with the Mohegan Tribe of Indians of Connecticut 1818 concerning the authorization of fantasy contests in the state.

1819 (2) The amendments to the Mashantucket Pequot procedures and 1820 the Mohegan compact shall include a provision that the authorization 1821 of fantasy contests in the state does not terminate the moratorium 1822 against the operation of video facsimile games by the Mashantucket 1823 Pequot Tribe and Mohegan Tribe of Indians of Connecticut on each 1824 tribe's reservation.

1825 (3) The amendments to each tribe's memorandum of understanding 1826 shall include a provision that the authorization of fantasy contests in 1827 the state does not relieve each tribe from each tribe's obligation to 1828 contribute a percentage of the gross operating revenues of video 1829 facsimile games to the state as provided in each tribe's memorandum 1830 of understanding.

1831 (4) The amendments to the Mashantucket Pequot procedures, the 1832 Mashantucket Pequot memorandum of understanding, the Mohegan 1833 compact and the Mohegan memorandum of understanding are 1834 approved or deemed approved by the Secretary of the United States 1835 Department of the Interior pursuant to the federal Indian Gaming 1836 Regulatory Act, P.L. 100-497, 25 USC 2701 et seq., and its

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1837 implementing regulations. If such approval is overturned by a court in 1838 a final judgment, which is not appealable, the authorization provided 1839 under this section shall cease to be effective.

1840 (5) The amendments to the Mashantucket Pequot procedures and to 1841 the Mohegan compact are approved by the General Assembly 1842 pursuant to section 3-6c.

1843 (6) The amendments to the Mashantucket Pequot memorandum of 1844 understanding and to the Mohegan memorandum of understanding 1845 are approved by the General Assembly pursuant to the process 1846 described in section 3-6c.

1847 (c) Not later than July 1, 2018, the [Commissioner of Consumer 1848 Protection] commission shall adopt regulations, in accordance with the 1849 provisions of chapter 54, regarding the operation of, participation in 1850 and advertisement of fantasy contest in the state. Such regulations 1851 shall protect fantasy contest players who pay an entry fee to play 1852 fantasy contests from unfair or deceptive acts or practices. Such 1853 regulations shall include, but need not be limited to: (1) A prohibition 1854 on fantasy contest operators allowing persons under the age of 1855 eighteen to participate in a fantasy contest offered by such operators; 1856 (2) protections for fantasy contest players' funds on deposit with 1857 fantasy contest operators; (3) requirements regarding truthful 1858 advertising by fantasy contest operators; (4) procedures to ensure the 1859 integrity of fantasy contests offered by fantasy contest operators; (5) 1860 procedures to ensure that fantasy contest operators provide fantasy 1861 contest players with: (A) Information regarding responsible playing 1862 and places to seek assistance for addictive or compulsive behavior, and 1863 (B) protections against compulsive behavior; and (6) reporting 1864 requirements and procedures to demonstrate eligibility for a reduction 1865 of the initial registration fee and annual registration renewal fee 1866 pursuant to subsection (d) of this section.

1867 (d) (1) Not later than sixty days after the adoption of regulations 1868 pursuant to subsection (c) of this section, and thereafter, each fantasy

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1869 contest operator that operates fantasy contests in the state shall register 1870 annually with the [Commissioner of Consumer Protection] 1871 commission on a form prescribed by the [commissioner] commission. 1872 Each fantasy contest operator shall submit an initial registration fee of 1873 fifteen thousand dollars and an annual registration renewal fee of 1874 fifteen thousand dollars, except that the [commissioner] commission 1875 shall reduce the initial registration fee and annual registration fee so 1876 that such fees do not exceed ten per cent of the gross receipts of such 1877 operator for the registration period.

1878 (2) To demonstrate the eligibility of a fantasy contest operator for a 1879 reduction of the initial registration fee or annual registration renewal 1880 fee pursuant to subdivision (1) of this subsection, the fantasy contest 1881 operator shall provide to the [commissioner] commission, in a manner 1882 prescribed by the [commissioner] commission, an estimation of the 1883 gross receipts such operator expects to receive in the upcoming 1884 registration period. Prior to renewing a registration where such 1885 operator paid a reduced registration fee for the previous registration 1886 period, or after a registration period where such operator should have 1887 paid a reduced fee for the previous registration period, such operator 1888 shall submit to the [commissioner] commission, in a manner 1889 prescribed by the [commissioner] commission, the actual amount of 1890 gross receipts received by such operator in the previous registration 1891 period. The [commissioner] commission shall calculate the difference, 1892 if any, between the estimated gross receipts and the actual gross 1893 receipts and determine if the registration fee previously paid by such 1894 operator was the correct amount. If such operator paid an amount in 1895 excess of the amount determined to be the correct amount of the 1896 registration fee, the [commissioner] commission shall refund such 1897 operator accordingly or credit such amount against the registration fee 1898 for the upcoming registration period, provided such operator renews 1899 his or her registration. If such operator did not pay the amount 1900 determined to be the correct amount of the registration fee, such 1901 operator shall pay to the [commissioner] commission the difference 1902 between the correct amount and the registration fee previously paid.

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1903 (e) Any person who violates any provision of this section or any 1904 regulation adopted pursuant to subsection (c) of this section shall be 1905 fined not more than one thousand dollars for each violation.

1906 Sec. 45. Section 12-579 of the general statutes is repealed and the

1907 following is substituted in lieu thereof (Effective July 1, 2019):

1908 Any municipality may, by ordinance, impose a tax of ten per cent of 1909 the admission charge, as defined in subsection (3) of section 12-540, to 1910 any place licensed by the [Department of Consumer Protection] 1911 Commission on Gaming and containing a pari-mutuel system therein 1912 or to any off-track betting facility. The tax shall be imposed upon the 1913 person making such charge and reimbursement for the tax shall be 1914 collected by such person from the purchaser. Such reimbursement, 1915 termed "tax", shall be paid by the purchaser to the person making the 1916 admission charge. Such tax, when added to the admission charge, shall 1917 be a debt from the purchaser to the person making such charge and 1918 shall be recoverable at law.

1919 Sec. 46. Section 12-584 of the general statutes is repealed and the

1920 following is substituted in lieu thereof (Effective July 1, 2019):

1921 (a) Each licensee of the [department] Commission on Gaming, other 1922 than an occupational licensee, shall file, on or before April fifteenth of 1923 each year, with the [department] commission: (1) Certified financial 1924 statements for the prior calendar year or fiscal year, prepared in 1925 accordance with generally accepted accounting principles; (2) the 1926 names and addresses of every shareholder, person or business 1927 organization having a financial, property, leasehold, ownership or 1928 beneficial interest in such licensee; (3) (A) the names and addresses of 1929 every person or business organization which provides contractual 1930 services, equipment or property related to any of the activities 1931 authorized under chapter 226, and (B) the nature of such services 1932 rendered and equipment or property provided; and (4) copies of all 1933 state and federal tax returns filed by such licensee for the next 1934 preceding calendar year or taxable year, except that if any state or

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1935 federal tax return has not been filed with the state or federal 1936 government on or before said date, such licensee may file such return 1937 with the department at the same time he or it files such return with the 1938 state or federal government.

1939 (b) The [commissioner] commission may require any person, 1940 business organization or shareholder disclosed under the provisions of 1941 subdivision (2) of subsection (a) of this section to file on or before April 1942 fifteenth of each year, with the [department] commission: (1) A 1943 statement of financial position to be submitted under oath on forms 1944 provided by the [department] commission; (2) a statement of interest 1945 in any other gambling activity, within or without the state of 1946 Connecticut; and (3) copies of state and federal tax returns filed by 1947 such person, business organization or shareholder for the next 1948 preceding calendar year or taxable year, except that if any state or 1949 federal tax return has not been filed with the state or federal 1950 government on or before said date, such person, business organization 1951 or shareholder may file such return with the [department] commission 1952 at the same time he or it files such return with the state or federal 1953 government. The [commissioner] commission shall not require such 1954 filing more than once a year, except that the [commissioner] 1955 commission may require additional filings or additional information to 1956 ensure the integrity of legalized gambling. All information gathered by 1957 the [department] commission under this chapter and section 12-562, as 1958 amended by this act, may be transmitted by the [department] 1959 commission to any agency or department of the state and shall be 1960 made available for public dissemination or inspection, except that any 1961 state or federal tax returns gathered by the [department] commission 1962 pursuant to this section shall only be open to inspection by the 1963 [department] commission, its staff and such other state agencies or 1964 departments which require return information to perform their official 1965 duties.

1966 (c) Failure by any licensee to comply with the requirements of this 1967 section shall constitute grounds for the [commissioner] commission: (1) 1968 To suspend or revoke such license; (2) to impose a fine of not more

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1969 than two thousand five hundred dollars or, if the licensee is licensed to 1970 conduct a meeting or operate an off-track betting system under 1971 subsection (a) of section 12-575, as amended by this act, to impose a 1972 fine of not more than seventy-five thousand dollars; (3) to rescind the 1973 applicable contract; or (4) to impose any combination of such penalties.

1974 (d) Failure by any person, business organization or shareholder 1975 identified in subsection (b) of this section to comply with the 1976 requirements of this section shall constitute grounds for the 1977 [commissioner] commission: (1) To suspend or revoke such license; (2) 1978 to impose a fine of not more than two thousand five hundred dollars 1979 on such licensee or, if the licensee is licensed to conduct a meeting or 1980 operate an off-track betting system under subsection (a) of section 12- 1981 575, as amended by this act, a fine of not more than seventy-five 1982 thousand dollars on such licensee; or (3) to impose any combination of 1983 such penalties. In the case of a shareholder who fails to comply with 1984 the requirements of this section, the [department] commission shall 1985 notify the shareholder and the licensee which issued the shares of such 1986 failure. Upon receipt of such notice the shareholder shall immediately 1987 offer such shares to the licensee for purchase. The licensee shall 1988 purchase the shares not later than sixty days after they are so offered. 1989 Each licensee shall adopt appropriate amendments or additions to any 1990 existing corporate bylaws to permit compliance with this section.

1991 (e) Any licensee aggrieved by an action of the [commissioner] 1992 commission under this section shall have a right of appeal pursuant to 1993 section 4-183.

1994 Sec. 47. Section 12-585 of the general statutes is repealed and the

1995 following is substituted in lieu thereof (Effective July 1, 2019):

1996 (a) All reasonable expenses incurred by or on behalf of the 1997 [department] Commission on Gaming for any investigation of a person 1998 or business organization in connection with an initial application or 1999 contract, the application for transfer of ownership in whole or in part 2000 of an existing licensed facility, the assignment of an existing contract,

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2001 or the addition of or change in any member of a board of directors, 2002 officer, shareholder or bondholder of any such person or business 2003 organization, shall be paid to the [department] commission by the 2004 person or business organization under investigation. All funds 2005 received by the [department] commission under the provisions of this 2006 subsection shall be paid into the General Fund.

2007 (b) Each such person or business organization shall be billed for 2008 such expenses on a quarterly basis or at the conclusion of the 2009 investigation, as determined by the [commissioner] commission. 2010 Failure on the part of the person or business organization to remit 2011 payment within fifteen days after receipt of an invoice from the 2012 [department] commission shall constitute grounds to refuse to grant 2013 approval of the request of the person or business organization for 2014 which such investigation was undertaken, or in the case of a licensee, 2015 failure to remit payment within fifteen days shall, in addition, 2016 constitute grounds for the [commissioner] commission: (1) To suspend 2017 or revoke such license; (2) to impose a fine of not more than two 2018 thousand five hundred dollars or, if the licensee is licensed to conduct 2019 a meeting or operate an off-track betting system under subsection (a) 2020 of section 12-575, as amended by this act, a fine of not more than 2021 seventy-five thousand dollars; (3) to rescind the applicable contract; or 2022 (4) to impose any combination of such penalties.

2023 Sec. 48. Section 12-586f of the general statutes is repealed and the

2024 following is substituted in lieu thereof (Effective July 1, 2019):

2025 (a) For the purposes of this section, "tribe" means the Mashantucket 2026 Pequot Tribe and "compact" means the Tribal-State Compact between 2027 the tribe and the state of Connecticut, as incorporated and amended in 2028 the Final Mashantucket Pequot Gaming Procedures prescribed by the 2029 Secretary of the United States Department of the Interior pursuant to 2030 Section 2710(d)(7)(B)(vii) of Title 25 of the United States Code and 2031 published in 56 Federal Register 24996 (May 31, 1991).

2032 (b) The expenses of administering the provisions of the compact

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2033 shall be financed as provided in this section. Assessments for 2034 regulatory costs incurred by any state agency which are subject to 2035 reimbursement by the tribe in accordance with the provisions of the 2036 compact shall be made by the [Commissioner of Revenue Services] 2037 Commission on Gaming in accordance with the provisions of the 2038 compact, including provisions respecting adjustment of excess 2039 assessments. Any underassessment for a prior fiscal year may be 2040 included in a subsequent assessment but shall be specified as such. 2041 Payments made by the tribe in accordance with the provisions of the 2042 compact shall be deposited in the General Fund and shall be credited 2043 to the appropriation for the state agency incurring such costs.

2044 (c) Assessments for law enforcement costs incurred by any state 2045 agency which are subject to reimbursement by the tribe in accordance 2046 with the provisions of the compact shall be made by the Commissioner 2047 of Emergency Services and Public Protection in accordance with the 2048 provisions of the compact, including provisions respecting adjustment 2049 of excess assessments. Any underassessment for a prior fiscal year may 2050 be included in a subsequent assessment but shall be specified as such. 2051 Payments made by the tribe in accordance with the provisions of the 2052 compact shall be deposited in the General Fund and shall be credited 2053 to the appropriation for the state agency incurring such costs.

2054 (d) If the tribe is aggrieved due to any assessment levied pursuant to 2055 such compact and this section or by any failure to adjust an excess 2056 assessment in accordance with the provisions of the compact and this 2057 section, it may, within one month from the time provided for the 2058 payment of such assessment, appeal therefrom in accordance with the 2059 terms of the compact, to the superior court for the judicial district of 2060 Hartford, which appeal shall be accompanied by a citation to the 2061 [Commissioner of Consumer Protection] Commission on Gaming to 2062 appear before said court. Such citation shall be signed by the same 2063 authority, and such appeal shall be returnable at the same time and 2064 served and returned in the same manner as is required in case of a 2065 summons in a civil action. Proceedings in such matter shall be 2066 conducted in the same manner as provided for in section 38a-52.

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2067 (e) The [Commissioner of Consumer Protection] Commission on 2068 Gaming shall require each applicant for a casino gaming employee 2069 license, casino gaming service license or casino gaming equipment 2070 license to submit to state and national criminal history records checks 2071 before such license is issued. The criminal history records checks 2072 required pursuant to this subsection shall be conducted in accordance 2073 with section 29-17a.

2074 Sec. 49. Section 12-586g of the general statutes is repealed and the

2075 following is substituted in lieu thereof (Effective July 1, 2019):

2076 (a) For the purposes of this section, "tribe" means the Mohegan Tribe 2077 of Indians of Connecticut and "compact" means the Tribal-State 2078 Compact between the tribe and the state of Connecticut, dated May 17, 2079 1994.

2080 (b) The expenses of administering the provisions of the compact 2081 shall be financed as provided in this section. Assessments for 2082 regulatory costs incurred by any state agency which are subject to 2083 reimbursement by the tribe in accordance with the provisions of the 2084 compact shall be made by the [Commissioner of Revenue Services] 2085 Commission on Gaming in accordance with the provisions of the 2086 compact, including provisions respecting adjustment of excess 2087 assessments. Any underassessment for a prior fiscal year may be 2088 included in a subsequent assessment but shall be specified as such. 2089 Payments made by the tribe in accordance with the provisions of the 2090 compact shall be deposited in the General Fund and shall be credited 2091 to the appropriation for the state agency incurring such costs.

2092 (c) Assessments for law enforcement costs incurred by any state 2093 agency which are subject to reimbursement by the tribe in accordance 2094 with the provisions of the compact shall be made by the Commissioner 2095 of Emergency Services and Public Protection in accordance with the 2096 provisions of the compact, including provisions respecting adjustment 2097 of excess assessments. Any underassessment for a prior fiscal year may 2098 be included in a subsequent assessment but shall be specified as such.

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2099 Payments made by the tribe in accordance with the provisions of the 2100 compact shall be deposited in the General Fund and shall be credited 2101 to the appropriation for the state agency incurring such costs.

2102 (d) If the tribe is aggrieved due to any assessment levied pursuant to 2103 such compact and this section or by any failure to adjust an excess 2104 assessment in accordance with the provisions of the compact and this 2105 section, it may, within one month from the time provided for the 2106 payment of such assessment, appeal therefrom in accordance with the 2107 terms of the compact, to the superior court for the judicial district of 2108 New Britain, which appeal shall be accompanied by a citation to the 2109 [Commissioner of Consumer Protection] Commission on Gaming to 2110 appear before said court. Such citation shall be signed by the same 2111 authority, and such appeal shall be returnable at the same time and 2112 served and returned in the same manner as is required in case of a 2113 summons in a civil action. Proceedings in such matter shall be 2114 conducted in the same manner as provided for in section 38a-52.

2115 (e) The [Commissioner of Consumer Protection] Commission on 2116 Gaming shall require each applicant for a casino gaming employee 2117 license, casino gaming service license or casino gaming equipment 2118 license to submit to state and national criminal history records checks 2119 before such license is issued. The criminal history records checks 2120 required pursuant to this subsection shall be conducted in accordance 2121 with section 29-17a.

2122 Sec. 50. Section 12-802 of the general statutes is repealed and the

2123 following is substituted in lieu thereof (Effective July 1, 2019):

2124 (a) There is created a body politic and corporate, constituting a 2125 public instrumentality and political subdivision of the state created for 2126 the performance of an essential governmental revenue-raising 2127 function, which shall be named the Connecticut Lottery Corporation, 2128 and which may exercise the functions, powers and duties set forth in 2129 sections 12-563a, as amended by this act, and 12-800 to 12-818, 2130 inclusive, as amended by this act, to implement the purposes set forth

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2131 in said sections, which are public purposes for which public funds may 2132 be expended. The Connecticut Lottery Corporation shall not be 2133 construed to be a department, institution or agency of the state with 2134 respect to budgeting, procurement or personnel requirements, except 2135 as provided in sections 1-120, 1-121, 1-125, 12-563, as amended by this 2136 act, 12-563a, as amended by this act, 12-564, as amended by this act, 12- 2137 566, as amended by this act, 12-568a, as amended by this act, and 12- 2138 569, as amended by this act, subsection (c) of section 12-574, as 2139 amended by this act, and sections 12-800 to 12-818, inclusive, as 2140 amended by this act.

2141 (b) [(1) The] Prior to July 1, 2019, the corporation shall be governed 2142 by a board of thirteen directors. [The Governor, with the advice and 2143 consent of the General Assembly, shall appoint five directors who have 2144 skill, knowledge and experience in the fields of management, finance 2145 or operations in the private sector. Two directors shall be the State 2146 Treasurer and the Secretary of the Office of Policy and Management, 2147 both of whom shall serve ex officio and shall have all of the powers 2148 and privileges of a member of the board of directors. Each ex-officio 2149 director may designate his or her deputy or any member of his or her 2150 staff to represent him or her at meetings of the corporation with full 2151 power to act and vote on his or her behalf. Each director appointed by 2152 the Governor shall serve at the pleasure of the Governor, but no longer 2153 than the term of office of the Governor or until the director's successor 2154 is appointed and qualified, whichever term is longer. The Governor 2155 shall fill any vacancy for the unexpired term of a director appointed by 2156 the Governor. The procedures of section 4-7 shall apply to the 2157 confirmation of the Governor's appointments by both houses of the 2158 General Assembly.

2159 (2) Six directors shall be appointed as follows: One by the president 2160 pro tempore of the Senate, one by the majority leader of the Senate, 2161 one by the minority leader of the Senate, one by the speaker of the 2162 House of Representatives, one by the majority leader of the House of 2163 Representatives and one by the minority leader of the House of 2164 Representatives. Each director appointed by a member of the General

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2165 Assembly shall serve in accordance with the provisions of section 4-1a. 2166 The appropriate legislative appointing authority shall fill any vacancy 2167 for the unexpired term of a director appointed by such authority.

2168 (3) Any appointed director shall be eligible for reappointment. The 2169 Commissioner of Consumer Protection shall not serve as a director. 2170 Any director may be removed by order of the Superior Court upon 2171 application of the Attorney General for misfeasance, malfeasance or 2172 wilful neglect of duty. Such actions shall be tried to the court without a 2173 jury and shall be privileged in assignment for hearing. If the court, 2174 after hearing, finds there is clear and convincing evidence of such 2175 misfeasance, malfeasance or wilful neglect of duty it shall order the 2176 removal of such director. Any director so removed shall not be 2177 reappointed to the board.

2178 (c) The chairperson of the board shall be appointed by the Governor 2179 from among the members of the board. The directors shall annually 2180 elect one of their number as vice chairperson. The board may elect 2181 such other officers of the board as it deems proper. Directors shall 2182 receive no compensation for the performance of their duties under 2183 sections 12-563a and 12-800 to 12-818, inclusive, but shall be 2184 reimbursed for necessary expenses incurred in the performance of 2185 their duties.

2186 (d) Meetings of the corporation shall be held at such times as shall 2187 be specified in the bylaws adopted by the corporation and at such 2188 other time or times as the chairperson deems necessary.] On and after 2189 July 1, 2019, the corporation shall be governed by the Commission on 2190 Gaming established in section 1 of this act.

2191 (c) The corporation shall, within the first ninety days of the transfer 2192 to the corporation of the lottery, pursuant to section 12-808, as 2193 amended by this act, and on a fiscal quarterly basis thereafter, report 2194 on its operations for the preceding fiscal quarter to the Governor and 2195 the joint standing committees of the General Assembly having 2196 cognizance of matters relating to finance, revenue and bonding, and

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2197 public safety. The report shall include a summary of the activities of 2198 the corporation, a statement of operations and, if necessary, 2199 recommendations for legislation to promote the purposes of the 2200 corporation. The accounts of the corporation shall be subject to audit 2201 by the state Auditors of Public Accounts. The corporation shall have 2202 independent certified public accountants audit its books and accounts 2203 at least once each fiscal year. The books, records and financial 2204 statements of the corporation shall be prepared in accordance with 2205 generally accepted accounting principles.

2206 [(e)] (d) The Connecticut Lottery Corporation shall be a successor 2207 employer to the state and shall recognize existing bargaining units and 2208 collective bargaining agreements existing at the time of transfer of the 2209 lottery to the corporation. The employees of the corporation shall be 2210 considered state employees under the provisions of sections 5-270 to 5- 2211 280, inclusive. The corporation shall not be required to comply with 2212 personnel policies and procedures of the Department of 2213 Administrative Services and the Office of Policy and Management 2214 with regard to approval for the creation of new positions, the number 2215 of such positions, the decision to fill such positions or the time for 2216 filling such positions. The corporation, not the executive branch, shall 2217 have the power to determine whether an individual is qualified to fill a 2218 vacancy at the corporation. Nonmanagerial employees of the 2219 corporation shall be members of the classified service. Managerial 2220 employees shall be exempt from the classified service. The corporation 2221 shall have the ability to determine the qualifications and set the terms 2222 and conditions of employment of managerial employees including the 2223 establishment of incentive plans.

2224 [(f)] (e) (1) The corporation may create one or more new 2225 classifications of entrepreneurial sales employees as determined by the 2226 board of directors. Such classifications shall not be deemed comparable 2227 to other classifications in state service.

2228 (2) Upon the expiration of the collective bargaining agreement 2229 covering transferred sales employees, all terms and conditions of

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2230 employment in a new entrepreneurial sales classification shall be 2231 subject to collective bargaining as part of the negotiation of a common 2232 successor agreement.

2233 [(g)] (f) The executive branch shall negotiate on behalf of the 2234 corporation for employees of the corporation covered by collective 2235 bargaining and represent the corporation in all other collective 2236 bargaining matters. The corporation shall be entitled to have a 2237 representative present at all such bargaining.

2238 [(h)] (g) In any interest arbitration regarding employees of the 2239 corporation, the arbitrator shall take into account as a factor, in 2240 addition to those factors specified in section 5-276a, the purposes of 2241 sections 1-120, 1-121, 1-125, 12-563, as amended by this act, 12-563a, as 2242 amended by this act, 12-564, 12-566, as amended by this act, 12-568a, as 2243 amended by this act, and 12-569, as amended by this act, subsection (c) 2244 of section 12-574, as amended by this act, and sections 12-800 to 12-818, 2245 inclusive, as amended by this act, the entrepreneurial mission of the 2246 corporation and the necessity to provide flexibility and innovation to 2247 facilitate the success of the Connecticut Lottery Corporation in the 2248 marketplace. In any arbitration regarding any classification of 2249 entrepreneurial sales employees, the arbitrator shall include a term 2250 awarding incentive compensation for such employees for the purpose 2251 of motivating employees to maximize lottery sales.

2252 [(i)] (h) The officers and all other employees of the corporation shall 2253 be state employees for the purposes of group welfare benefits and 2254 retirement, including, but not limited to, those provided under chapter 2255 66 and sections 5-257 and 5-259. The corporation shall reimburse the 2256 appropriate state agencies for all costs incurred by such designation.

2257 Sec. 51. Section 12-802a of the general statutes is repealed and the

2258 following is substituted in lieu thereof (Effective July 1, 2019):

2259 No person shall be employed by the Connecticut Lottery 2260 Corporation until such person has obtained an occupational license 2261 issued by the [Commissioner of Consumer Protection] Commission on

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2262 Gaming in accordance with regulations adopted under section 12-568a, 2263 as amended by this act.

2264 Sec. 52. Section 12-804 of the general statutes is repealed and the

2265 following is substituted in lieu thereof (Effective July 1, 2019):

2266 (a) [The] (1) Prior to July 1, 2019, the powers of the corporation shall 2267 be vested in and exercised by the board of directors. Notwithstanding 2268 subsection (a) of section 1-121, until the appointment of five directors, 2269 a majority of the ex-officio directors then in office or their deputy or 2270 member of their staff designated to represent them as a member may 2271 take such action, including, without limitation, the adoption of interim 2272 bylaws, and approval of the transfer of lottery operations 2273 contemplated under section 12-808, as amended by this act, as is 2274 necessary to organize the corporation. From and after the five or more 2275 directors, including ex-officio directors, have been seated a majority of 2276 the directors of the board then seated shall constitute a quorum. The 2277 affirmative vote of a majority of the directors present at a meeting of 2278 the board at which a quorum is present shall be necessary and 2279 sufficient for any action taken by the board. No vacancy in the 2280 membership of the board shall impair the right of a quorum to exercise 2281 all the rights and perform all the duties of the board. Any action taken 2282 by the board may be authorized by resolution at any regular or special 2283 meeting and shall take effect immediately unless otherwise provided 2284 in the resolution. Following the initial seating of five or more directors, 2285 the board shall have the power, from time to time, to ratify, adopt, 2286 amend and repeal bylaws for the conduct of its affairs. Notice of any 2287 regular meeting shall be given to directors as set forth in the bylaws of 2288 the corporation.

2289 (2) The terms of board members shall end on June 30, 2019, and the 2290 board shall cease its existence on said date. On and after July 1, 2019, 2291 the Commission on Gaming established in section 1 of this act shall 2292 assume the functions previously performed by the board.

2293 (b) The [board] commission may delegate to three or more of the

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2294 directors powers and duties as it deems proper. The [board] 2295 commission shall establish such committees, subcommittees or other 2296 entities as it deems necessary to further the purposes of the 2297 corporation including, but not limited to, an executive committee and 2298 a finance committee.

2299 Sec. 53. Section 12-805 of the general statutes is repealed and the

2300 following is substituted in lieu thereof (Effective July 1, 2019):

2301 (a) The [board] Commission on Gaming shall appoint officers of the 2302 corporation, which shall include a president, a secretary, and such 2303 other officers as the [board] commission may approve. Such officers 2304 shall not be members of the [board] commission, shall serve at the 2305 pleasure of the [board] commission and shall receive such 2306 compensation as shall be determined by the [board] commission. The 2307 president and secretary shall not be the same person. The president 2308 shall be the chief executive officer of the corporation. The president 2309 shall have the general charge, supervision and control of the operation 2310 and management of business and affairs of the corporation subject to 2311 the direction of the [board of directors] commission. The president 2312 shall have such other powers and duties as are generally incident to 2313 the office of the president and as may be assigned by the [board of 2314 directors] commission. The president shall not be a state employee. 2315 The president shall attend all meetings of the [board] commission 2316 related to the business of the corporation. The secretary shall keep a 2317 true, faithful and correct record of all proceedings and maintain and be 2318 custodian of all books, documents and papers filed with the 2319 corporation and of the book of minutes of the corporation and of its 2320 official seal. The secretary may cause copies to be made of all minutes 2321 and other records and documents of the corporation and may give 2322 certificates under the official seal of the corporation to the effect that 2323 such copies are true copies, and all persons dealing with the 2324 corporation may rely upon such certificates. The president or [his] the 2325 president's designee may serve as a member of such other boards or 2326 committees as may be necessary or desirable to carry out the purposes 2327 of the corporation.

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2328 (b) The president shall take all such action as to the operation and 2329 management of the corporation as [he] the president in [his] the 2330 president's discretion deems advisable in order to enhance the 2331 monetary value of the corporation and the lottery.

2332 Sec. 54. Section 12-806 of the general statutes is repealed and the

2333 following is substituted in lieu thereof (Effective July 1, 2019):

2334 (a) The purposes of the corporation shall be to: (1) Operate and 2335 manage the lottery in an entrepreneurial and business-like manner free 2336 from the budgetary and other constraints that affect state agencies; (2) 2337 provide continuing and increased revenue to the people of the state 2338 through the lottery by being responsive to market forces and acting 2339 generally as a corporation engaged in entrepreneurial pursuits; and (3) 2340 ensure that the lottery continues to be operated with integrity and for 2341 the public good.

2342 (b) The corporation shall have the following powers:

2343 (1) To receive as transferee from the state of Connecticut all of the 2344 tangible and intangible assets constituting the lottery including the 2345 exclusive right to operate the lottery as the exclusive lottery of the state 2346 and, subject to subsection (b) of section 12-808, as amended by this act, 2347 to assume and discharge all of the agreements, covenants and 2348 obligations of the [Department of Consumer Protection] Commission 2349 on Gaming entered into which constitute a part of the operation and 2350 management of the lottery;

2351 (2) To operate and manage the lottery consistent with the provisions 2352 of sections 1-120, 1-121, 1-125, 12-563, as amended by this act, 12-563a, 2353 as amended by this act, 12-564, as amended by this act, 12-566, as 2354 amended by this act, 12-568a, as amended by this act, and 12-569, as 2355 amended by this act, subsection (c) of section 12-574, as amended by 2356 this act, and sections 12-800 to 12-818, inclusive, as amended by this 2357 act, and as specifically provided in section 12-812, as amended by this 2358 act;

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2359 (3) To have perpetual succession as a body corporate and to adopt 2360 bylaws, policies and procedures for the operation of its affairs and 2361 conduct of its businesses;

2362 (4) To introduce new lottery games, modify existing lottery games, 2363 utilize existing and new technologies, determine distribution channels 2364 for the sale of lottery tickets, introduce keno pursuant to signed 2365 agreements with the Mashantucket Pequot Tribe and the Mohegan 2366 Tribe of Indians of Connecticut, in accordance with section 12-806c, 2367 and, to the extent specifically authorized by regulations adopted by the 2368 [Department of Consumer Protection] Commission on Gaming 2369 pursuant to chapter 54, introduce instant ticket vending machines, 2370 kiosks and automated wagering systems or machines, with all such 2371 rights being subject to regulatory oversight by the [Department of 2372 Consumer Protection] commission, except that the corporation shall 2373 not offer any interactive on-line lottery games, including on-line video 2374 lottery games for promotional purposes;

2375 (5) To establish an annual budget of revenues and expenditures, 2376 along with reasonable reserves for working capital, capital 2377 expenditures, debt retirement and other anticipated expenditures, in a 2378 manner and at levels considered by the board of directors as 2379 appropriate and prudent;

2380 (6) To adopt such administrative and operating procedures which 2381 the [board of directors] commission deems appropriate;

2382 (7) To enter into agreements with one or more states or territories of 2383 the United States for the promotion and operation of joint lottery 2384 games and to continue to participate in any joint lottery game in which 2385 the corporation participates on July 1, 2003, regardless of whether any 2386 government-authorized lottery operated outside of the United States 2387 participates in such game;

2388 (8) Subject to the provisions of section 12-815, as amended by this 2389 act, to enter into agreements with vendors with respect to the 2390 operation and management of the lottery, including operation of

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2391 lottery terminals, management services, printing of lottery tickets,

2392 management expertise, marketing expertise, advertising or such other 2393 goods or services as the [board of directors] commission deems 2394 necessary and appropriate;

2395 (9) To purchase or lease operating equipment, including, but not 2396 limited to, computer gaming and automated wagering systems and to 2397 employ agents or employees to operate such systems;

2398 (10) To retain unclaimed prize funds as additional revenue for the 2399 state, or to use unclaimed prize funds to increase sales, or to return to 2400 participants unclaimed prize funds in a manner designed to increase 2401 sales;

2402 (11) To establish prize reserve accounts as the [board of directors] 2403 commission deems appropriate;

2404 (12) To pay lottery prizes as awarded under section 12-812, as 2405 amended by this act, to purchase annuities to fund such prizes, and to 2406 assure that all annuities from which payments to winners of lottery 2407 prizes are made are invested in instruments issued by agencies of the 2408 United States government and backed by the full faith and credit of the 2409 United States, or are issued by insurance companies licensed to do 2410 business in the state, provided the issuer has been determined by the 2411 [Department of Consumer Protection] Commission on Gaming to be 2412 financially stable and meets the minimum investment rating as 2413 determined by the department;

2414 (13) To pay the Office of Policy and Management to reimburse the 2415 [Department of Consumer Protection] Commission on Gaming for the 2416 reasonable and necessary costs arising from the [department's] 2417 commission's regulatory oversight of the corporation, in accordance 2418 with the assessment made pursuant to section 12-806b, as amended by 2419 this act, including costs arising directly or indirectly from the licensing 2420 of lottery agents, performance of state police background 2421 investigations, and the implementation of subsection (b) of section 12- 2422 562, as amended by this act, and sections 12-563a, as amended by this

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2423 act, 12-568a, as amended by this act, 12-569, as amended by this act, 12- 2424 570, 12-570a and 12-800 to 12-818, inclusive, as amended by this act;

2425 (14) In the event that the operation or management of the 2426 corporation becomes subject to the federal gaming occupation tax, to 2427 pay such tax on behalf of lottery sales agents and to assist agents 2428 subject thereto;

2429 (15) To determine the commissions payable to lottery sales agents, 2430 provided any agent's commission shall not average less than four per 2431 cent of such agent's lottery sales;

2432 (16) To invest in, acquire, lease, purchase, own, manage, hold and 2433 dispose of real property and lease, convey or deal in or enter into 2434 agreements with respect to such property on any terms necessary or 2435 incidental to carrying out the purposes of sections 12-563a, as amended 2436 by this act, and 12-800 to 12-818, inclusive, as amended by this act, 2437 provided such transactions shall not be subject to approval, review or 2438 regulation pursuant to title 4b or any other statute by any state agency, 2439 except that real property transactions shall be subject to review by the 2440 State Properties Review Board;

2441 (17) To borrow money for the purpose of obtaining working capital;

2442 (18) To hold patents, copyrights, trademarks, marketing rights, 2443 licenses or any other evidence of protection or exclusivity issued under 2444 the laws of the United States or any state;

2445 (19) To employ such assistants, agents and other employees as may 2446 be necessary or desirable to carry out its purposes in accordance with 2447 sections 12-563a, as amended by this act, and 12-800 to 12-818, 2448 inclusive, as amended by this act, to fix their compensation and, 2449 subject to the provisions of subsections [(e) and (f)] (d) and (e) of 2450 section 12-802, as amended by this act, establish all necessary and 2451 appropriate personnel practices and policies; to engage consultants, 2452 accountants, attorneys and financial and other independent 2453 professionals as may be necessary or desirable to assist the corporation

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2484 amended by this act, and 12-800 to 12-818, inclusive, as amended by 2485 this act; and

2486 (28) To exercise any powers necessary to carry out the purposes of 2487 sections 12-563a, as amended by this act, and 12-800 to 12-818, 2488 inclusive, as amended by this act.

2489 Sec. 55. Section 12-806a of the general statutes is repealed and the

2490 following is substituted in lieu thereof (Effective July 1, 2019):

2491 As used in this section, "procedure" has the same meaning as 2492 "procedure", as defined in subdivision (2) of section 1-120. The 2493 [Department of Consumer Protection] Commission on Gaming shall, 2494 for the purposes of section 12-568a, as amended by this act, subsection 2495 (c) of section 12-574, as amended by this act, sections 12-802a, as 2496 amended by this act, and 12-815a, as amended by this act, and this 2497 section, regulate the activities of the Connecticut Lottery Corporation 2498 to assure the integrity of the state lottery. In addition to the 2499 requirements of the provisions of chapter 12 and notwithstanding the 2500 provisions of section 12-806, as amended by this act, the Connecticut 2501 Lottery Corporation shall, prior to implementing any procedure 2502 designed to assure the integrity of the state lottery, obtain the written 2503 approval of the [Commissioner of Consumer Protection] Commission 2504 on Gaming in accordance with regulations adopted under section 12- 2505 568a, as amended by this act.

2506 Sec. 56. Section 12-806b of the general statutes is repealed and the

2507 following is substituted in lieu thereof (Effective July 1, 2019):

2508 (a) (1) Commencing July 1, 2011, and annually thereafter until July 2509 1, 2019, the Office of Policy and Management shall assess the 2510 Connecticut Lottery Corporation in an amount sufficient to 2511 compensate the Department of Consumer Protection for the reasonable 2512 and necessary costs incurred by the department for the regulatory 2513 activities specified in subdivision (13) of subsection (b) of section 12- 2514 806, as amended by this act, for the preceding fiscal year ending June 2515 thirtieth.

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2516 (2) Commencing July 1, 2020, and annually thereafter, the Office of 2517 Policy and Management shall assess the Connecticut Lottery 2518 Corporation in an amount sufficient to compensate the Commission on 2519 Gaming for the reasonable and necessary costs incurred by the 2520 commission for the regulatory activities specified in subdivision (13) of 2521 subsection (b) of section 12-806, as amended by this act, for the 2522 preceding fiscal year ending June thirtieth.

2523 (b) For the assessment year ending June 30, 2012, the Office of Policy 2524 and Management shall, on or before August 1, 2012, submit the total of 2525 the assessment made in accordance with subsection (a) of this section, 2526 together with a proposed assessment for the succeeding fiscal year 2527 based on the preceding fiscal year cost, to the Connecticut Lottery 2528 Corporation. The assessment for the preceding fiscal year shall be 2529 determined not later than September 15, 2011, after receiving any 2530 objections to the proposed assessments and making such changes or 2531 adjustments as the Secretary of the Office of Policy and Management 2532 determines to be warranted. The corporation shall pay the total 2533 assessment in quarterly payments to the Office of Policy and 2534 Management, with the first payment commencing on October 1, 2011, 2535 and with the remaining payments to be made on January 1, 2012, April 2536 1, 2012, and June 1, 2012. The office shall deposit any such payment in 2537 the lottery assessment account established under subsection (d) of this 2538 section.

2539 (c) For the assessment year ending June 30, 2013, and each 2540 assessment year thereafter, the Office of Policy and Management shall, 2541 on or before May first of each year, submit the total of the assessment 2542 made in accordance with subsection (a) of this section, together with a 2543 proposed assessment for the succeeding fiscal year based on the 2544 preceding fiscal year cost, to the Connecticut Lottery Corporation. The 2545 assessment for the preceding fiscal year shall be determined not later 2546 than June fifteenth of each year, after receiving any objections to the 2547 proposed assessments and making such changes or adjustments as the 2548 Secretary of the Office of Policy and Management determines to be 2549 warranted. The corporation shall pay the total assessment in quarterly

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2550 payments to the Office of Policy and Management, with the first 2551 payment commencing on July first of each year, and with the 2552 remaining payments to be made on October first, January first and 2553 April first annually. The office shall deposit any such payment in the 2554 lottery assessment account established under subsection (d) of this 2555 section.

2556 (d) (1) There is established an account to be known as the "lottery 2557 assessment account" which shall be a separate, nonlapsing account 2558 within the General Fund. The account shall contain any moneys 2559 required by law to be deposited in the account. Moneys in the account 2560 shall be expended by the [Department of Consumer Protection] 2561 Commission on Gaming.

2562 (2) The Office of Policy and Management shall transfer to the 2563 Department of Consumer Protection any portion of a payment that is 2564 received by the office on or after July 1, 2019, under an assessment for 2565 the reasonable and necessary costs incurred by the department for 2566 regulatory activities related to the Connecticut Lottery Corporation 2567 prior to July 1, 2019.

2568 (e) Notwithstanding any provision of this section, the final quarterly 2569 payment for the assessment for the fiscal year ending June 30, 2011, 2570 shall be paid on July 1, 2011.

2571 Sec. 57. Section 12-807 of the general statutes is repealed and the

2572 following is substituted in lieu thereof (Effective July 1, 2019):

2573 (a) The corporation shall:

2574 (1) Comply with all laws, rules and regulations of the United States 2575 and the state of Connecticut;

2576 (2) Comply with regulations, adopted by the [Department of 2577 Consumer Protection] Commission on Gaming in accordance with 2578 chapter 54;

2579 (b) The corporation shall not:

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2580 (1) Sell, transfer, assign, deliver, license, grant or otherwise alienate 2581 any portion or aspect of the lottery or lottery operations, but may sell 2582 real or personal property, provided any revenue from such sale shall 2583 be remitted to the state;

2584 (2) Take any action with respect to the introduction or modification 2585 of lottery games which would cause a violation of any compact or any 2586 memorandum of understanding or agreement from time to time in 2587 force between the state and the Mashantucket Pequot Tribal Nation or 2588 the Mohegan Tribe of Montville, Connecticut, or any future compact or 2589 agreement with a federally recognized tribe.

2590 Sec. 58. Section 12-808 of the general statutes is repealed and the

2591 following is substituted in lieu thereof (Effective July 1, 2019):

2592 (a) As soon as practicable after July 1, 1996, and the organization of 2593 the corporation, the corporation shall enter into such agreements as the 2594 board shall authorize in order to effect the transfer, assignment and 2595 delivery to the corporation from the state of all the tangible and 2596 intangible assets constituting the lottery, including the exclusive right 2597 to operate the lottery, and, subject to subsection (b) of this section, to 2598 effect the assignment to and assumption by the corporation of all 2599 agreements, covenants and obligations of the [Department of 2600 Consumer Protection] Commission on Gaming and other agencies of 2601 the state relating to the operation and management of the lottery. Such 2602 agreements may contain such other provisions as the board deems 2603 necessary or appropriate for the continued operation of the lottery by 2604 the corporation pursuant to sections 12-563a, as amended by this act, 2605 and 12-800 to 12-818, inclusive, as amended by this act.

2606 (b) The state shall transfer to the corporation ownership of all 2607 annuities it purchased for payment of lottery prizes and shall not be 2608 liable for any lottery awards. In addition, the state shall not be liable 2609 for any obligations of the lottery arising prior to the date of transfer as 2610 described in subsection (a) of this section, including those arising in the 2611 ordinary course of business under existing contracts specifically

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2612 assumed by the corporation. The [Department of Consumer 2613 Protection] Commission on Gaming shall assign to the corporation any 2614 annuity for payment of any lottery award arising on or before the date 2615 of such transfer. Unless otherwise agreed to in writing with the 2616 [department] commission, the corporation shall be solely responsible 2617 for the payment of all lottery prizes and the purchase of all annuities to 2618 provide revenue for such payment.

2619 (c) The corporation shall request and obtain all approvals, consents 2620 and rulings of and from all state and federal governmental agencies 2621 necessary or in order to effect the transactions contemplated by this 2622 section.

2623 Sec. 59. Section 12-809 of the general statutes is repealed and the

2624 following is substituted in lieu thereof (Effective July 1, 2019):

2625 [Each director and the] The president shall execute a surety bond in 2626 the penal sum of fifty thousand dollars. The [chairman of the board] 2627 Commission on Gaming may [execute] authorize the corporation to 2628 execute a blanket position surety bond, or arrange for separate surety 2629 bonds, covering [each director,] the president and the employees of the 2630 corporation at amounts determined by the [board] commission, but in 2631 no event less than the sum of fifty thousand dollars per person. Each 2632 surety bond shall be conditioned upon the faithful performance of the 2633 duties of the office or offices covered, be executed by a surety company 2634 authorized to transact business in this state as surety, be approved by 2635 the Attorney General and be filed in the office of the Secretary of the 2636 State. The cost of each such bond shall be paid by the corporation.

2637 Sec. 60. Section 12-811 of the general statutes is repealed and the

2638 following is substituted in lieu thereof (Effective July 1, 2019):

2639 (a) The president and all [directors,] officers and employees of the 2640 corporation shall be state employees for purposes of sections 1-79 to 1- 2641 89, inclusive.

2642 (b) No [director,] member of the Commission on Gaming or officer

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2643 or employee of the corporation shall, directly or indirectly, participate 2644 in, or share in the winnings from, a game conducted pursuant to 2645 sections 12-563a, as amended by this act, and 12-800 to 12-818, 2646 inclusive, as amended by this act.

2647 Sec. 61. Section 12-812 of the general statutes is repealed and the

2648 following is substituted in lieu thereof (Effective July 1, 2019):

2649 (a) The president of the corporation, subject to the direction of the 2650 [board] Commission on Gaming, shall conduct daily, weekly, 2651 multistate, special instant or other lottery games and shall determine 2652 the number of times a lottery shall be held each year, the form and 2653 price of the tickets and the aggregate amount of prizes, which shall not 2654 be less than forty-five per cent of the sales unless required by the terms 2655 of any agreement entered into for the conduct of multistate lottery 2656 games. The proceeds of the sale of tickets shall be deposited in the 2657 lottery fund of the corporation from which prizes shall be paid, upon 2658 vouchers signed by the president, or by either of two persons 2659 designated and authorized by [him] the president, in such numbers 2660 and amounts as the president determines. The corporation may limit 2661 its liability in games with fixed payouts and may cause a cessation of 2662 sales of tickets of certain designation when such liability limit has been 2663 reached.

2664 (b) The president, subject to the direction of the [board] commission, 2665 may enter into agreements for the sale of product advertising on 2666 lottery tickets, play slips and other lottery media.

2667 (c) On a weekly basis, the president shall estimate, and certify to the 2668 State Treasurer, that portion of the balance in the lottery fund which 2669 exceeds the current needs of the corporation for the payment of prizes, 2670 the payment of current operating expenses and funding of approved 2671 reserves of the corporation. The corporation shall transfer the amount 2672 so certified from the lottery fund of the corporation to the General 2673 Fund, upon notification of receipt of such certification by the 2674 Treasurer.

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2675 Sec. 62. Subsection (a) of section 12-813 of the general statutes is 2676 repealed and the following is substituted in lieu thereof (Effective July

2677 1, 2019):

2678 (a) The corporation may sell lottery tickets at any location in the 2679 state determined by the president which, in the opinion of the 2680 president, will best enhance lottery revenues, except that no license 2681 shall be issued by the [Department of Consumer Protection] 2682 Commission on Gaming to any person to engage in business 2683 exclusively as a lottery sales agent. Subject to the provisions of 2684 subdivision (15) of subsection (b) of section 12-806, as amended by this 2685 act, the president may authorize compensation to such agents in such 2686 manner and amounts and subject to such limitations as he may 2687 determine if he finds such compensation is necessary to assure 2688 adequate availability of lottery tickets, provided, if such agent is a 2689 lessee of state property and [his] the agent's rental fee is based upon 2690 the gross receipts of [his] the agent's business conducted thereon, all 2691 receipts from the sale of such lottery tickets shall be excluded from 2692 such gross receipts for rental purposes. The president may suspend for 2693 cause any licensed agent, subject to a final determination through a 2694 hearing provided by the [Department of Consumer Protection] 2695 Commission on Gaming.

2696 Sec. 63. Subsection (a) of section 12-815 of the general statutes is 2697 repealed and the following is substituted in lieu thereof (Effective July

2698 1, 2019):

2699 (a) The corporation shall establish and adopt specific policies, rules 2700 and procedures on purchasing and contracting. Such policies, rules 2701 and procedures or amendments thereto shall be approved by a two- 2702 thirds vote of the entire board. Notwithstanding any other provision of 2703 law to the contrary, the corporation may enter into management, 2704 consulting and other agreements for the provision of goods, services 2705 and professional advisors necessary or useful in connection with the 2706 operation and management of the lottery (1) pursuant to a process of 2707 open or competitive bidding, provided (A) the corporation shall first

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2708 determine the format, content and scope of any agreement for any 2709 procurement of goods or services, the conditions under which bidding 2710 will take place and the schedule and stipulations for contract award, 2711 and (B) the corporation may select the contractor deemed to have 2712 submitted the most favorable bid, considering price and other factors, 2713 when, in the judgment of the corporation, such award is in the best 2714 interests of the corporation, or (2) if the corporation, in its discretion, 2715 determines that, due to the nature of the agreement to be contracted 2716 for or procured, open or public bidding is either impracticable or not in 2717 the best interests of the corporation, by negotiation with such 2718 prospective providers as the corporation may determine. The terms 2719 and conditions of agreements and the fees or other compensation to be 2720 paid to such persons shall be determined by the corporation. The 2721 agreements entered into by the corporation in accordance with the 2722 provisions of this section shall not be subject to the approval of any 2723 state department, office or agency, except as provided in regulations 2724 adopted by the [Department of Consumer Protection] Commission on 2725 Gaming. Nothing in this section shall be deemed to restrict the 2726 discretion of the corporation to utilize its own staff and workforce for 2727 the performance of any of its assigned responsibilities and functions 2728 whenever, in the discretion of the corporation, it becomes necessary, 2729 convenient or desirable to do so. Copies of all agreements of the 2730 corporation shall be maintained by the corporation at its offices as 2731 public records, subject to said exemption.

2732 Sec. 64. Section 12-815a of the general statutes is repealed and the

2733 following is substituted in lieu thereof (Effective July 1, 2019):

2734 (a) The [Commissioner of Consumer Protection] Commission on 2735 Gaming shall issue vendor, affiliate and occupational licenses in 2736 accordance with the provisions of this section.

2737 (b) No person or business organization awarded a primary contract 2738 by the Connecticut Lottery Corporation to provide facilities, 2739 components, goods or services that are necessary for and directly 2740 related to the secure operation of the activities of said corporation shall

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2741 do so unless such person or business organization is issued a vendor 2742 license by the [Commissioner of Consumer Protection] Commission on 2743 Gaming. For the purposes of this subsection, "primary contract" means 2744 a contract to provide facilities, components, goods or services to said 2745 corporation by a person or business organization (1) that provides any 2746 lottery game or any online wagering system related facilities, 2747 components, goods or services and that receives or, in the exercise of 2748 reasonable business judgment, can be expected to receive more than 2749 seventy-five thousand dollars or twenty-five per cent of its gross 2750 annual sales from said corporation, or (2) that has access to the 2751 facilities of said corporation and provides services in such facilities 2752 without supervision by said corporation. Each applicant for a vendor 2753 license shall pay a nonrefundable application fee of two hundred fifty 2754 dollars.

2755 (c) No person or business organization, other than a shareholder in 2756 a publicly traded corporation, may be a subcontractor for the provision 2757 of facilities, components, goods or services that are necessary for and 2758 directly related to the secure operation of the activities of the 2759 Connecticut Lottery Corporation, or may exercise control in or over a 2760 vendor licensee unless such person or business organization is licensed 2761 as an affiliate licensee by the [commissioner] commission. Each 2762 applicant for an affiliate license shall pay a nonrefundable application 2763 fee of two hundred fifty dollars.

2764 (d) (1) Each employee of a vendor or affiliate licensee who has 2765 access to the facilities of the Connecticut Lottery Corporation and 2766 provides services in such facilities without supervision by said 2767 corporation or performs duties directly related to the activities of said 2768 corporation shall obtain an occupational license.

2769 (2) Each officer, director, partner, trustee or owner of a business 2770 organization licensed as a vendor or affiliate licensee and any 2771 shareholder, executive, agent or other person connected with any 2772 vendor or affiliate licensee who, in the judgment of the [commissioner] 2773 commission, will exercise control in or over any such licensee shall

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2774 obtain an occupational license.

2775 (3) Each employee of the Connecticut Lottery Corporation shall 2776 obtain an occupational license.

2777 (e) The [commissioner] commission shall issue occupational licenses 2778 in the following classes: (1) Class I for persons specified in subdivision 2779 (1) of subsection (d) of this section; (2) Class II for persons specified in 2780 subdivision (2) of subsection (d) of this section; (3) Class III for persons 2781 specified in subdivision (3) of subsection (d) of this section who, in the 2782 judgment of the [commissioner] commission, will not exercise 2783 authority over or direct the management and policies of the 2784 Connecticut Lottery Corporation; and (4) Class IV for persons specified 2785 in subdivision (3) of subsection (d) of this section who, in the judgment 2786 of the [commissioner] commission, will exercise authority over or 2787 direct the management and policies of the Connecticut Lottery 2788 Corporation. Each applicant for a Class I or III occupational license 2789 shall pay a nonrefundable application fee of twenty dollars. Each 2790 applicant for a Class II or IV occupational license shall pay a 2791 nonrefundable application fee of one hundred dollars. The 2792 nonrefundable application fee shall accompany the application for 2793 each such occupational license.

2794 (f) In determining whether to grant a vendor, affiliate or 2795 occupational license to any such person or business organization, the 2796 [commissioner] commission may require an applicant to provide 2797 information as to such applicant's: (1) Financial standing and credit; (2) 2798 moral character; (3) criminal record, if any; (4) previous employment; 2799 (5) corporate, partnership or association affiliations; (6) ownership of 2800 personal assets; and (7) such other information as the [commissioner] 2801 commission deems pertinent to the issuance of such license, provided 2802 the submission of such other information will assure the integrity of 2803 the state lottery. The [commissioner] commission shall require each 2804 applicant for a vendor, affiliate or occupational license to submit to 2805 state and national criminal history records checks and may require 2806 each such applicant to submit to an international criminal history

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2839 (i) The [commissioner] commission may require that the books and 2840 records of any vendor or affiliate licensee be maintained in any 2841 manner which the [commissioner] commission may deem best, and 2842 that any financial or other statements based on such books and records 2843 be prepared in accordance with generally accepted accounting 2844 principles in such form as the [commissioner] commission shall 2845 prescribe. The [commissioner or a designee] commission may visit, 2846 investigate and place expert accountants and such other persons as 2847 deemed necessary in the offices or places of business of any such 2848 licensee for the purpose of satisfying [himself or herself] the 2849 commission that such licensee is in compliance with the commission's 2850 regulations. [of the department.]

2851 (j) For the purposes of this section, (1) "business organization" 2852 means a partnership, incorporated or unincorporated association, firm, 2853 corporation, trust or other form of business or legal entity; (2) "control" 2854 means the power to exercise authority over or direct the management 2855 and policies of a licensee; and (3) "person" means any individual.

2856 (k) The [Commissioner of Consumer Protection] commission may 2857 adopt such regulations, in accordance with chapter 54, as are necessary 2858 to implement the provisions of this section.

2859 Sec. 65. Subsection (b) of section 17a-713 of the general statutes is 2860 repealed and the following is substituted in lieu thereof (Effective July

2861 1, 2019):

2862 (b) The program established by subsection (a) of this section shall be 2863 funded by imposition of: (1) A fee of one hundred thirty-five dollars on 2864 each association license, for each performance of jai alai or dog racing 2865 conducted under the provisions of chapter 226, provided no such 2866 licensee shall contribute more than forty-five thousand dollars in any 2867 one year; (2) a fee of twenty-five dollars for each teletheater 2868 performance on each operator of a teletheater facility; and (3) the 2869 amount received from the Connecticut Lottery Corporation pursuant 2870 to section 12-818. The [Commissioner of Consumer Protection]

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2871 Commission on Gaming shall collect the fee from each association 2872 licensee or such operator on a monthly basis. The receipts shall be 2873 deposited in the General Fund and credited to a separate, nonlapsing 2874 chronic gamblers treatment and rehabilitation account which shall be 2875 established by the Comptroller. All moneys in the account are deemed 2876 to be appropriated and shall be expended for the purposes established 2877 in subsection (a) of this section.

2878 Sec. 66. Section 21a-1 of the general statutes is repealed and the

2879 following is substituted in lieu thereof (Effective July 1, 2019):

2880 (a) There shall be a Department of Consumer Protection which shall 2881 be under the direction and supervision of a Commissioner of 2882 Consumer Protection, who shall be appointed by the Governor in 2883 accordance with the provisions of sections 4-5 to 4-8, inclusive.

2884 (b) The Department of Consumer Protection shall constitute a 2885 successor agency, in accordance with the provisions of sections 4-38d 2886 and 4-39, to the Department of Public Safety with respect to all 2887 functions, powers and duties of the Department of Public Safety under 2888 chapter 532. Where any order or regulation of said departments 2889 conflict, the Commissioner of Consumer Protection may implement 2890 policies and procedures consistent with the provisions of chapter 532 2891 while in the process of adopting the policy or procedure in regulation 2892 form, provided notice of intention to adopt regulations is printed in 2893 the Connecticut Law Journal within twenty days of implementation. 2894 The policy or procedure shall be valid until the time final regulations 2895 are effective.

2896 [(c) The Department of Consumer Protection shall constitute a 2897 successor agency to the Division of Special Revenue in accordance 2898 with the provisions of sections 4-38d and 4-39. Where any order or 2899 regulation of said division and department conflict, the Commissioner 2900 of Consumer Protection may implement policies and procedures 2901 consistent with chapters 98, 226, 438a, 529, 545, 557 and 946, while in 2902 the process of adopting the policy or procedure in regulation form,

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2903 provided notice of intention to adopt regulations is printed in the 2904 Connecticut Law Journal within twenty days of implementation. Any 2905 such policy or procedure shall be valid until the time final regulations 2906 are effective.

2907 (d) The Department of Consumer Protection shall constitute a 2908 successor agency to the Gaming Policy Board in accordance with the 2909 provisions of sections 4-38d and 4-39. Where any order or regulation of 2910 said board and department conflict, the Commissioner of Consumer 2911 Protection may implement policies and procedures consistent with 2912 chapters 98, 226 and 545 while in the process of adopting the policy or 2913 procedure in regulation form, provided notice of intention to adopt 2914 regulations is printed in the Connecticut Law Journal within twenty 2915 days of implementation. Any such policy or procedure shall be valid 2916 until the time final regulations are effective.]

2917 Sec. 67. Section 22-410 of the general statutes is repealed and the

2918 following is substituted in lieu thereof (Effective July 1, 2019):

2919 The Department of Agriculture and the [Department of Consumer 2920 Protection] Commission on Gaming, within the limitations of funds 2921 available, may offer cash awards to the breeders of Connecticut-bred 2922 horses which officially finish in first place in horse races conducted in 2923 this state where pari-mutuel betting is permitted and to those which 2924 finish first, second or third in horse races where pari-mutuel betting is 2925 permitted and the total purse is twenty thousand dollars or more, and 2926 to owners at the time of service of the stallions which sired such 2927 horses. Such awards shall be paid from the Connecticut Breeders' Fund 2928 to be administered by the [departments] department and commission. 2929 Said fund shall consist of revenues derived from pari-mutuel betting in 2930 such races in the state, both on and off-track, consisting of twenty-five 2931 per cent of the tax derived from the breakage of the state's share of the 2932 tax derived from such races, pursuant to subdivision (2) of subsection 2933 (d) of section 12-575, as amended by this act, with a limit set for the 2934 fund not to exceed fifty thousand dollars in any fiscal year.

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2935 Sec. 68. Section 22-412 of the general statutes is repealed and the

2936 following is substituted in lieu thereof (Effective July 1, 2019):

2937 The Department of Agriculture and the [Department of Consumer 2938 Protection] Commission on Gaming shall use part of said fund for 2939 programs to promote the equine industry in the state of Connecticut, 2940 such as equine activities, facilities and research. The Department of 2941 Agriculture and the [Department of Consumer Protection] 2942 Commission on Gaming may adopt regulations, in accordance with 2943 the provisions of chapter 54, to carry out the purposes of this section 2944 and sections 22-410, as amended by this act, and 22-411.

2945 Sec. 69. Section 29-7c of the general statutes is repealed and the

2946 following is substituted in lieu thereof (Effective July 1, 2019):

2947 There is established a unit in the Division of State Police within the 2948 Department of Emergency Services and Public Protection to be known 2949 as the legalized gambling investigative unit. The unit, in conjunction 2950 with the special [policemen] police officers in the [Department of 2951 Consumer Protection] Commission on Gaming, shall be responsible for 2952 (1) the criminal enforcement of the provisions of sections 7-169 to 7- 2953 186, inclusive, as amended by this act, and chapters 226, 226b and 229a, 2954 as amended by this act, and (2) the investigation, detection of and 2955 assistance in the prosecution of any criminal matter or alleged 2956 violation of criminal law with respect to legalized gambling, provided 2957 the legalized gambling investigative unit shall be the primary criminal 2958 enforcement agency. Nothing in this section shall limit the powers 2959 granted to persons appointed to act as special [policemen] police 2960 officers in accordance with the provisions of section 29-18c, as 2961 amended by this act.

2962 Sec. 70. Section 29-18c of the general statutes is repealed and the

2963 following is substituted in lieu thereof (Effective July 1, 2019):

2964 The Commissioner of Emergency Services and Public Protection 2965 may appoint not more than four persons employed as investigators in 2966 the security unit of the [Department of Consumer Protection]

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2967 Commission on Gaming, upon the nomination of the [Commissioner 2968 of Consumer Protection] commission, to act as special [policemen] 2969 police officers in said unit. Such appointees shall serve at the pleasure 2970 of the [Commissioner of Emergency Services and Public Protection] 2971 Commission on Gaming. During such tenure, they shall have all the 2972 powers conferred on state [policemen] police officers while 2973 investigating or making arrests for any offense arising from the 2974 operation of any off-track betting system or the conduct of any lottery 2975 game. Such special [policemen] police officers shall be certified under 2976 the provisions of sections 7-294a to 7-294e, inclusive.

2977 Sec. 71. Subsection (a) of section 30-20 of the general statutes is 2978 repealed and the following is substituted in lieu thereof (Effective July

2979 1, 2019):

2980 (a) A package store permit shall allow the retail sale of alcoholic 2981 liquor not to be consumed on the premises, such sales to be made only 2982 in sealed bottles or other containers. The holder of a package store 2983 permit may, in accordance with regulations adopted by the 2984 Department of Consumer Protection pursuant to the provisions of 2985 chapter 54, offer free samples of alcoholic liquor for tasting on the 2986 premises, conduct fee-based wine education and tasting classes and 2987 demonstrations and conduct tastings or demonstrations provided by a 2988 permittee or backer of a package store for a nominal charge to 2989 charitable nonprofit organizations. Any offering, tasting, wine 2990 education and tasting class or demonstration held on permit premises 2991 shall be conducted only during the hours a package store is permitted 2992 to sell alcoholic liquor under section 30-91. No tasting of wine on the 2993 premises shall be offered from more than ten uncorked bottles at any 2994 one time. No store operating under a package store permit shall sell 2995 any commodity other than alcoholic liquor except that, 2996 notwithstanding any other provision of law, such store may sell (1) 2997 cigarettes and cigars, (2) publications, (3) bar utensils, which shall 2998 include, but need not be limited to, corkscrews, beverage strainers, 2999 stirrers or other similar items used to consume or related to the 3000 consumption of alcoholic liquor, (4) gift packages of alcoholic liquor

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3001 shipped into the state by a manufacturer or out-of-state shipper, which 3002 may include a nonalcoholic item in the gift package that may be any 3003 item, except food or tobacco products, provided the dollar value of the 3004 nonalcoholic items does not exceed the dollar value of the alcoholic 3005 items of the package, (5) complementary fresh fruits used in the 3006 preparation of mixed alcoholic beverages, (6) cheese or crackers, or 3007 both, (7) olives, (8) nonalcoholic beverages, (9) concentrates used in the 3008 preparation of mixed alcoholic beverages, (10) beer and wine-making 3009 kits and products related to beer and wine-making kits, (11) ice in any 3010 form, (12) articles of clothing imprinted with advertising related to the 3011 alcoholic liquor industry, (13) gift baskets or other containers of 3012 alcoholic liquor, (14) multiple packages of alcoholic liquors, as defined 3013 in subdivision (3) of section 30-1, provided in all such cases the 3014 minimum retail selling price for such alcoholic liquor shall apply, (15) 3015 lottery tickets authorized by the [Department of Consumer Protection] 3016 Commission on Gaming, if licensed as an agent to sell such tickets by 3017 said department, and (16) gift baskets containing only containers of 3018 alcoholic liquor and commodities authorized for sale under 3019 subdivisions (1) to (15), inclusive, of this subsection. A package store 3020 permit shall also allow the taking and transmitting of orders for 3021 delivery of such merchandise in other states. Notwithstanding any 3022 other provision of law, a package store permit shall allow the 3023 participation in any lottery ticket promotion or giveaway sponsored by 3024 the [Department of Consumer Protection] Commission on Gaming. 3025 The annual fee for a package store permit shall be five hundred thirty- 3026 five dollars.

3027 Sec. 72. Subsection (h) of section 30-33b of the general statutes is 3028 repealed and the following is substituted in lieu thereof (Effective July

3029 1, 2019):

3030 (h) "Special sporting facility" means all of the land and buildings in 3031 which the principal business conducted is racing or jai alai exhibitions 3032 with pari-mutuel betting licensed by the [Department of Consumer 3033 Protection] Commission on Gaming.

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3067 permit issued under this chapter if the permittee has had a license 3068 suspended or revoked by the department until such license has been 3069 restored to such person.

3070 (b) The department may, upon notice from the Commission on 3071 Gaming of the name and address of any person who has had a license 3072 suspended or revoked by the commission, suspend any permit issued 3073 under this chapter until such license has been restored to such person. 3074 The department shall notify the commission of the name and address 3075 of any permittee whose permit has been suspended or revoked.

3076 Sec. 75. Subsection (c) of section 31-51y of the general statutes is 3077 repealed and the following is substituted in lieu thereof (Effective July

3078 1, 2019):

3079 (c) Nothing in sections 31-51t to 31-51aa, inclusive, as amended by 3080 this act, shall restrict or prevent a urinalysis drug test program 3081 conducted under the supervision of the [Department of Consumer 3082 Protection] Commission on Gaming relative to jai alai players, jai alai 3083 court judges, jockeys, harness drivers or stewards participating in 3084 activities upon which pari-mutuel wagering is authorized under 3085 chapter 226.

3086 Sec. 76. Section 53-278g of the general statutes is repealed and the

3087 following is substituted in lieu thereof (Effective July 1, 2019):

3088 (a) Nothing in sections 53-278a to 53-278f, inclusive, shall be 3089 construed to prohibit the publication of an advertisement of, or the 3090 operation of, or participation in, a state lottery, pari-mutuel betting at 3091 race tracks licensed by the state, off-track betting conducted by the 3092 state or a licensee authorized to operate the off-track betting system, 3093 authorized games at a casino gaming facility, a promotional drawing 3094 for a prize or prizes, conducted for advertising purposes by any 3095 person, firm or corporation other than a retail grocer or retail grocery 3096 chain, wherein members of the general public may participate without 3097 making any purchase or otherwise paying or risking credit, money, or 3098 any other tangible thing of value or a sweepstakes conducted pursuant

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3099 to sections 42-295 to 42-301, inclusive.

3100 (b) The Mashantucket Pequot tribe and the Mohegan Tribe of 3101 Indians of Connecticut, or their agents, may use and possess at any 3102 location within the state, solely for the purpose of training individuals 3103 in skills required for employment by the tribe or testing a gambling 3104 device, any gambling device which the tribes are authorized to utilize 3105 on their reservations pursuant to the federal Indian Gaming 3106 Regulatory Act; provided no money or other thing of value shall be 3107 paid to any person as a result of the operation of such gambling device 3108 in the course of such training or testing at locations outside of the 3109 reservation of the tribe. Any person receiving such training or testing 3110 such device may use any such device in the course of such training or 3111 testing. Whenever either of said tribes intends to use and possess at 3112 any location within the state any such gambling device for the purpose 3113 of testing such device, the tribe shall give prior notice of such testing to 3114 the [Department of Consumer Protection] Commission on Gaming.

3115 (c) Any casino gaming facility, or its agents, may use and possess at 3116 any location within the state, solely for the purpose of training 3117 individuals in skills required for employment by the casino gaming 3118 facility or testing a gambling device, any gambling device which the 3119 casino gaming facility may use for conducting authorized games at the 3120 casino gaming facility, provided no money or other thing of value shall 3121 be paid to any person as a result of the operation of such gambling 3122 device in the course of such training or testing at locations outside of 3123 the casino gaming facility. Any person receiving such training or 3124 testing such device may use any such device in the course of such 3125 training or testing. Whenever a casino gaming facility intends to use 3126 and possess at any location within the state any such gambling device 3127 for the purpose of testing such device, the casino gambling facility 3128 shall give prior notice of such testing to the [Department of Consumer 3129 Protection] Commission on Gaming.

3130 Sec. 77. Sections 12-570b and 21a-1b of the general statutes are 3131 repealed. (Effective July 1, 2019)

Raised Bill No. 7334

Raised Bill No. 7334

Statement of Purpose:

To establish a Commission on Gaming and transfer oversight of gambling in this state from the Department of Consumer Protection to the commission.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]

HB 7334

Version: Raised+Bill
Author: Public Safety and Security Committee

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