Sec. 12-815a. Vendor, affiliate and occupational licenses. Suspension or revocation of license. Compliance by licensees. Regulations. - Connecticut Statutes

      Sec. 12-815a. Vendor, affiliate and occupational licenses. Suspension or revocation of license. Compliance by licensees. Regulations. (a) The executive director of the Division of Special Revenue shall issue vendor, affiliate and occupational licenses in accordance with the provisions of this section.

      (b) No person or business organization awarded a primary contract by the Connecticut Lottery Corporation to provide facilities, components, goods or services that are necessary for and directly related to the secure operation of the activities of said corporation shall do so unless such person or business organization is issued a vendor license by the executive director of the Division of Special Revenue. For the purposes of this subsection, "primary contract" means a contract to provide facilities, components, goods or services to said corporation by a person or business organization (1) that provides any lottery game or any online wagering system related facilities, components, goods or services and that receives or, in the exercise of reasonable business judgment, can be expected to receive more than seventy-five thousand dollars or twenty-five per cent of its gross annual sales from said corporation, or (2) that has access to the facilities of said corporation and provides services in such facilities without supervision by said corporation. Each applicant for a vendor license shall pay a nonrefundable application fee of two hundred dollars.

      (c) No person or business organization, other than a shareholder in a publicly traded corporation, may be a subcontractor for the provision of facilities, components, goods or services that are necessary for and directly related to the secure operation of the activities of the Connecticut Lottery Corporation, or may exercise control in or over a vendor licensee unless such person or business organization is licensed as an affiliate licensee by the executive director. Each applicant for an affiliate license shall pay a nonrefundable application fee of two hundred dollars.

      (d) (1) Each employee of a vendor or affiliate licensee who has access to the facilities of the Connecticut Lottery Corporation and provides services in such facilities without supervision by said corporation or performs duties directly related to the activities of said corporation shall obtain an occupational license.

      (2) Each officer, director, partner, trustee or owner of a business organization licensed as a vendor or affiliate licensee and any shareholder, executive, agent or other person connected with any vendor or affiliate licensee who, in the judgment of the executive director, will exercise control in or over any such licensee shall obtain an occupational license.

      (3) Each employee of the Connecticut Lottery Corporation shall obtain an occupational license.

      (e) The executive director shall issue occupational licenses in the following classes: (1) Class I for persons specified in subdivision (1) of subsection (d) of this section; (2) Class II for persons specified in subdivision (2) of subsection (d) of this section; (3) Class III for persons specified in subdivision (3) of subsection (d) of this section who, in the judgment of the executive director, will not exercise authority over or direct the management and policies of the Connecticut Lottery Corporation; and (4) Class IV for persons specified in subdivision (3) of subsection (d) of this section who, in the judgment of the executive director, will exercise authority over or direct the management and policies of the Connecticut Lottery Corporation. Each applicant for a Class I or III occupational license shall pay a nonrefundable application fee of ten dollars. Each applicant for a Class II or IV occupational license shall pay a nonrefundable application fee of fifty dollars. The nonrefundable application fee shall accompany the application for each such occupational license.

      (f) In determining whether to grant a vendor, affiliate or occupational license to any such person or business organization, the executive director may require an applicant to provide information as to such applicant's: (1) Financial standing and credit; (2) moral character; (3) criminal record, if any; (4) previous employment; (5) corporate, partnership or association affiliations; (6) ownership of personal assets; and (7) such other information as the executive director deems pertinent to the issuance of such license, provided the submission of such other information will assure the integrity of the state lottery. The executive director shall require each applicant for a vendor, affiliate or occupational license to submit to state and national criminal history records checks and may require each such applicant to submit to an international criminal history records check before such license is issued. The state and national criminal history records checks required pursuant to this subsection shall be conducted in accordance with section 29-17a. The executive director shall issue a vendor, affiliate or occupational license, as the case may be, to each applicant who satisfies the requirements of this subsection and who is deemed qualified by the executive director. The executive director may reject for good cause an application for a vendor, affiliate or occupational license.

      (g) Each vendor, affiliate or Class I or II occupational license shall be effective for not more than one year from the date of issuance. Each Class III or IV occupational license shall remain in effect throughout the term of employment of any such employee holding such a license. The executive director may require each employee issued a Class IV occupational license to submit information as to such employee's financial standing and credit annually. Initial application for and renewal of any such license shall be in such form and manner as the executive director shall prescribe.

      (h) (1) The executive director may suspend or revoke for good cause a vendor, affiliate or occupational license after a hearing held before the executive director in accordance with chapter 54. The executive director may order summary suspension of any such license in accordance with subsection (c) of section 4-182.

      (2) Any such applicant aggrieved by the action of the executive director concerning an application for a license, or any person or business organization whose license is suspended or revoked, may appeal to the Gaming Policy Board not later than fifteen days after such decision. Any person or business organization aggrieved by a decision of the board may appeal pursuant to section 4-183.

      (3) The executive director may impose a civil penalty on any licensee for a violation of any provision of this chapter or any regulation adopted under section 12-568a in an amount not to exceed two thousand five hundred dollars after a hearing held in accordance with chapter 54.

      (i) The executive director may require that the books and records of any vendor or affiliate licensee be maintained in any manner which the executive director may deem best, and that any financial or other statements based on such books and records be prepared in accordance with generally accepted accounting principles in such form as the executive director shall prescribe. The executive director or a designee may visit, investigate and place expert accountants and such other persons as deemed necessary in the offices or places of business of any such licensee for the purpose of satisfying himself or herself that such licensee is in compliance with the regulations of the division.

      (j) For the purposes of this section, (1) "business organization" means a partnership, incorporated or unincorporated association, firm, corporation, trust or other form of business or legal entity; (2) "control" means the power to exercise authority over or direct the management and policies of a licensee; and (3) "person" means any individual.

      (k) The executive director of the Division of Special Revenue may adopt such regulations, in accordance with chapter 54, as are necessary to implement the provisions of this section.

      (P.A. 97-277, S. 6, 13; P.A. 01-175, S. 8, 32; June Sp. Sess. P.A. 05-3, S. 38.)

      History: P.A. 97-277 effective June 26, 1997; P.A. 01-175 referenced executive director and added language re state and national criminal history records checks in accordance with Sec. 29-17a, added prohibition re provision of facilities, components, goods or service without background investigation and added reference to Sec. 12-574 (i), effective July 1, 2001; June Sp. Sess. P.A. 05-3 rewrote section to provide for vendor, affiliate and occupational licensure, require certain information from an applicant and a criminal history records check, provide for suspension or revocation of licenses, appeal from suspension or revocation, civil penalties and review of licensee records and allow adoption of regulations, effective June 30, 2005.