Sec. 12-584. Disclosure of financial information; filing requirements; penalties for failure to comply; appeal. - Connecticut Statutes

      Sec. 12-584. Disclosure of financial information; filing requirements; penalties for failure to comply; appeal. (a) Each licensee of the division or board, other than an occupational licensee, shall file, on or before April fifteenth of each year, with the division: (1) Certified financial statements for the prior calendar year or fiscal year, prepared in accordance with generally accepted accounting principles; (2) the names and addresses of every shareholder, person or business organization having a financial, property, leasehold, ownership or beneficial interest in such licensee; (3) (A) the names and addresses of every person or business organization which provides contractual services, equipment or property related to any of the activities authorized under chapter 226 and (B) the nature of such services rendered and equipment or property provided; and (4) copies of all state and federal tax returns filed by such licensee for the next preceding calendar year or taxable year, except that if any state or federal tax return has not been filed with the state or federal government on or before said date, such licensee may file such return with the division at the same time he or it files such return with the state or federal government.

      (b) The executive director, with the advice and consent of the board, may require any person, business organization or shareholder disclosed under the provisions of subdivision (2) of subsection (a) to file on or before April fifteenth of each year, with the division: (1) A statement of financial position to be submitted under oath on forms provided by the division; (2) a statement of interest in any other gambling activity, within or without the state of Connecticut; and (3) copies of state and federal tax returns filed by such person, business organization or shareholder for the next preceding calendar year or taxable year, except that if any state or federal tax return has not been filed with the state or federal government on or before said date, such person, business organization or shareholder may file such return with the division at the same time he or it files such return with the state or federal government. The executive director shall not require such filing more than once a year except that the executive director may require additional filings or additional information to ensure the integrity of legalized gambling, pursuant to a vote of at least four members of the board in favor of such requirement. All information gathered by the division under this chapter and section 12-562 may be transmitted by the division to any agency or department of the state and shall be made available for public dissemination or inspection, except that any state or federal tax returns gathered by the division pursuant to this section shall only be open to inspection by the division, its staff and such other state agencies or departments which require return information to perform their official duties.

      (c) Failure by any licensee to comply with the requirements of this section shall constitute grounds for the licensing authority: (1) To suspend or revoke such license; (2) if the executive director, to impose a fine of not more than two thousand five hundred dollars or if the board, to impose a fine of not more than seventy-five thousand dollars; (3) to rescind the applicable contract; or (4) to impose any combination of said penalties.

      (d) Failure by any person, business organization or shareholder identified in subsection (b) to comply with the requirements of this section shall constitute grounds for the authority which issued the license to the related licensee: (1) To suspend or revoke such license; (2) if the executive director, to impose a fine of not more than two thousand five hundred dollars on such licensee or, if the board, to impose a fine of not more than seventy-five thousand dollars on such licensee; or (3) any combination of said penalties. In the case of a shareholder who fails to comply with the requirements of this section, the division shall notify the shareholder and the licensee which issued the shares of such failure. Upon receipt of such notice the shareholder shall immediately offer such shares to the licensee for purchase. The licensee shall purchase the shares not later than sixty days after they are so offered. Each licensee shall adopt appropriate amendments or additions to any existing corporate bylaws to permit compliance with this section.

      (e) Any licensee aggrieved by an action of the executive director under this section shall have a right of appeal to the board in accordance with subsection (j) of section 12-574. Any licensee aggrieved by a decision of the board under this section shall have a right of appeal pursuant to section 4-183.

      (P.A. 77-543, S. 2, 7; P.A. 79-38; 79-404, S. 34, 45; P.A. 80-133, S. 7, 10.)

      History: P.A. 79-38 changed filing deadline from March fifteenth to April fifteenth and substituted returns filed "for the last preceding calendar year" for returns filed "during said calendar year"; P.A. 79-404 substituted "division", "executive director" and "board" for "commission on special revenue" and "commission" as necessary, allowed executive director to request additional filings with approval of four rather than six members and replaced previous provisions re disclosure of information to public with new provisions which avoid redundant reference to Subdiv. (4) previously found in section; P.A. 80-133 made provisions applicable to licensees other than occupational licensees, clarified statement of provisions and allowed for late filing of return, included in information to be filed statements of financial position and interest in other gambling facilities, removed provisions re failure to comply in Subsec. (b) and added Subsecs. (c), (d) and (e) containing detailed provisions re failure to comply and appeal to board.