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Senate Bill No. 487

PUBLIC ACT NO. 96-151

AN ACT CONCERNING PARI-MUTUEL BETTING FACILITIES.

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

Section 1. Section 12-574a of the general statutes is repealed and the following is substituted in lieu thereof:

(a) Whenever a person or business organization files an application with the board for a license to conduct an activity regulated by section 12-574, exclusive of renewal license applications, the board shall forward within five days to the town clerk of the town within which such activity is proposed to be carried on a statement specifying the prospective applicant, the proposed activity, the site on which such activity is proposed to be conducted and the fact that an application has been filed with the board. Within ten days after such statement has been filed, such town clerk shall cause notice of such filing to be published in a newspaper having a circulation in the town wherein the activity is to be conducted. The question of the approval of the conducting of such activity shall be submitted to the electors of such town at a special election called for the purpose to be held not less than thirty nor more than sixty days after such publication, in conformity with the provisions of section 9-369, or at a regular town election if such election is to be held more than sixty but not more than one hundred twenty days after such publication, such question shall be so submitted and the vote shall be taken in the manner prescribed by said section 9-369. The town clerk shall notify the board of the results of such election. The disapproval of the conducting of such activity by a majority of those voting on the question shall be a bar to the granting of a license to that applicant to conduct such activity at such location. All costs incurred by a municipality in connection with such referendum shall be paid to said municipality by the person or business organization filing such application for such license. The provisions of this subsection shall not apply to any licensee authorized to operate the off-track betting system with respect to any off-track betting facility approved prior to June 25, 1993.

(b) No licensee may conduct any racing or jai alai event on any Sunday without the prior approval of the legislative body of the town in which the event is scheduled to take place except that the board shall permit any licensee to conclude a Saturday evening performance not later than one o'clock a.m. on Sunday. Upon this approval, the board shall include Sundays in the meeting dates assigned to such licensee for racing or jai alai if requested to do so by the licensee, provided (1) no Sunday event may be authorized to begin prior to one o'clock p.m., and (2) no licensee may be authorized to conduct racing or jai alai events on more than six calendar days in any one calendar week.]

(c) No licensee authorized to operate the off-track betting system may conduct any off-track pari-mutuel wagering on any racing program on any Sunday without the prior approval of the legislative body of the town in which such off-track betting facility is located. [Upon this approval, the executive director of the Division of Special Revenue and the board shall authorize the conduct of off-track pari-mutuel wagering on any racing program held on any Sunday if requested to do so by the licensee, provided (1) only an off-track betting facility equipped to receive live telecasts of such racing programs shall be permitted to open on any Sunday, (2) no live telecast or live call of any such racing program shall begin prior to twelve-thirty o'clock p.m., and (3) no licensee shall be authorized to conduct such wagering on more than six afternoon and six evening racing programs per calendar week, irrespective of the number of calendar days, except that the executive director may authorize the licensee to conduct make-up programs if requested to do so by such licensee.]

(d) Notwithstanding the provisions of subsection (a) of this section, the prior approval of the legislative body only of the town shall be required in the event the division or the board issues a license pursuant to subsection (c) of section 12-574c.

Sec. 2. Section 12-575 of the general statutes is repealed and the following is substituted in lieu thereof:

(a) The board may permit at racing events, exhibitions of the game of jai alai licensed under the provisions of this chapter or at off-track betting facilities, betting under a pari-mutuel system, so called, including standard pari-mutuel, daily double, exacta, quinella, trifecta, superfecta, twin trifecta, pick four and pick six betting, and such other forms of multiple betting as the board may determine.

(b) The pari-mutuel system, so called, shall not be used or permitted at any location other than the race track at which the racing event is licensed to be conducted or the fronton at which the game of jai alai is licensed to be played or at an off-track betting facility operated by the division or by a licensee authorized to operate the off-track betting system. A computerized electronic totalizator system, approved by the executive director, shall be used to conduct pari-mutuel wagering at each racing or jai alai event. A computerized electronic totalizator system approved by the executive director and, where authorized by subsection (b) of section 12-571a, and approved by the executive director, a simulcast system shall be used to conduct pari-mutuel wagering and simulcasting of off-track betting race programs at off-track betting facilities. The executive director may require any licensee to submit information concerning the daily operation of such totalizator or simulcast system which he deems necessary for the effective administration of this chapter, including records of all wagering transactions, in such form and manner as he shall prescribe.

(c) (1) Except as provided in subdivision (2) of this subsection, each licensee conducting horse racing events under the pari-mutuel system shall distribute all sums deposited in any pari-mutuel program to the holders of winning tickets therein, less seventeen per cent of the total deposits plus the breakage to the dime of the amount so retained; each licensee conducting jai alai events shall distribute all sums deposited in any pari-mutuel program to the holders of winning tickets therein, less a maximum of twenty per cent of the total deposits plus the breakage to the dime of the amount so retained; each licensee conducting dog racing events shall distribute all sums deposited in any pari-mutuel program to the holders of winning tickets therein, less twenty per cent of the total deposits plus the breakage to the dime of the amount so retained, provided on and after July 1, 1992, each licensee conducting dog racing events on July 5, 1991, shall allocate four per cent of all sums deposited in any pari-mutuel program to purses, one-quarter of one per cent to capital expenditures for alterations, additions, replacement changes, improvements or major repairs to or upon the property owned or leased by any such licensee and used for such racing events, and one-quarter of one per cent to promotional marketing, to reduce the costs of admission, programs, parking and concessions and to offer entertainment and giveaways. Each licensee conducting dog racing events shall, on [a quarterly] AN ANNUAL basis, submit to the division certified financial statements verifying the use of such allocations for purses, capital improvements and promotional marketing. (2) Each licensee conducting racing or jai alai events may carry over all or a portion of the sums deposited in any pari-mutuel program, less the amount retained as herein provided, in the twin trifecta, pick four or pick six pari-mutuel pool to another pool, including a pool in a succeeding performance.

(d) Each licensee conducting horse racing events under the pari-mutuel system shall pay to the state, and there is hereby imposed: (1) A tax on the total money wagered in the pari-mutuel pool on each and every day the licensee conducts racing events, pursuant to the following schedule:

Total Wagered Tax

0 to $100,001 3.25% on the entire pool

$100,001 to $200,001 3.75% on the entire pool

$200,001 to $300,001 4.25% on the entire pool

$300,001 to $400,001 4.75% on the entire pool

$400,001 to $500,001 5.25% on the entire pool

$500,001 to $600,001 5.75% on the entire pool

$600,001 to $700,001 6.25% on the entire pool

$700,001 to $800,001 6.75% on the entire pool

$800,001 to $900,001 7.25% on the entire pool

$900,001 to $1,000,001 7.75% on the entire pool

$1,000,001 and over 8.75% on the entire pool

and (2) a tax equal to one-half of the breakage to the dime resulting from such wagering. The executive director, with the advice and consent of the board, shall by regulation designate the percentage of the difference between the seventeen per cent specified in subsection (c), and the tax specified in this subsection which shall be allocated as prize or purse money for the horses racing at each facility.

(e) Each licensee conducting dog racing events under the pari-mutuel system shall pay to the state, and there is hereby imposed: (1) (A) A tax at the rate of two per cent on the total money wagered in the pari-mutuel pool on each and every day the licensee conducts racing events or (B) on or after July 1, 1993, in the case of any licensee licensed prior to July 5, 1991, (i) a tax at the rate of two per cent on any amount up to and including fifty million dollars of the total money wagered in the pari-mutuel pool in any state fiscal year during which a licensee licensed prior to July 5, 1991, conducts racing events, (ii) a tax at the rate of three per cent on any amount in excess of fifty million dollars and up to and including eighty million dollars of the total money wagered in the pari-mutuel pool in any state fiscal year during which a licensee licensed prior to July 5, 1991, conducts racing events and (iii) a tax at the rate of four per cent on any amount in excess of eighty million dollars of the total money wagered in the pari-mutuel pool in any state fiscal year during which a licensee licensed prior to July 5, 1991, conducts racing events, and (2) a tax equal to one-half of the breakage to the dime resulting from such wagering.

(f) Each licensee operating a fronton at which the game of jai alai is licensed to be played under the pari-mutuel system shall pay to the state and there is hereby imposed: (1) (A) A tax at the rate of two per cent on any amount up to and including fifty million dollars of the total money wagered on such games, (B) a tax at the rate of three per cent of any amount in excess of fifty million dollars and up to and including eighty million dollars of the total money wagered on such games, and (C) a tax at the rate of four per cent on any amount in excess of eighty million dollars of the total money wagered on such games, and (2) a tax equal to one-half of the breakage to the dime resulting from such wagering.

(g) The licensee authorized to operate the system of off-track betting under the pari-mutuel system shall pay to the state and there is hereby imposed: (1) A tax at the rate of three and one-half per cent on the total money wagered in the pari-mutuel pool on each and every day the licensee broadcasts racing events and (2) a tax equal to one-half of the breakage to the dime resulting from such wagering.

(h) The executive director shall assess and collect the taxes imposed by this chapter under such regulations as, with the advice and consent of the board, he may prescribe. All taxes hereby imposed shall be due and payable by the close of the next banking day after each day's racing or jai alai exhibition. If any such tax is not paid when due, the executive director shall impose a delinquency assessment upon the licensee in the amount of ten per cent of such tax or ten dollars, whichever amount is greater, plus interest at the rate of one and one-half per cent of the unpaid principal of such tax for each month or fraction of a month from the date such tax is due to the date of payment. Subject to the provisions of section 12-3a, AS AMENDED the executive director may waive all or part of the penalties provided under this subsection when it is proven to his satisfaction that the failure to pay such tax within the time required was due to reasonable cause and was not intentional or due to neglect. Failure to pay any such delinquent tax upon demand may be considered by the executive director as cause for revocation of license.

(i) The executive director shall devise a system of accounting and shall supervise betting at such track, fronton or off-track betting facility in such manner that the rights of the state are protected and shall collect all fees and licenses under such regulations as, with the advice and consent of the board, he shall prescribe.

(j) The amount of unclaimed moneys, as determined by the executive director, held by any licensee other than by [a licensee] LICENSEES authorized to operate A JAI ALAI FRONTON, DOG RACE TRACK OR the off-track betting system on account of outstanding and uncashed winning tickets, shall be due and payable to the executive director, for deposit in the General Fund of the state, at the expiration of one year after the close of the meeting during which such tickets were issued. If any such unclaimed moneys are not paid when due, the executive director shall impose a delinquency assessment upon the licensee in the amount of ten per cent of such moneys or ten dollars, whichever amount is greater, plus interest at the rate of one and one-half per cent of the unpaid principal of such moneys for each month or fraction of a month from the date such moneys are due to the date of payment. Subject to the provisions of section 12-3a, AS AMENDED, the executive director may waive all or part of the penalties provided under this subsection when it is proven to his satisfaction that the failure to pay such moneys to the state within the time required was due to reasonable cause and was not intentional or due to neglect.

(k) The executive director may authorize deputies and the Commissioner of Revenue Services or his agents are authorized to enter upon the premises at any racing event, jai alai exhibition or off-track betting race event for the purpose of inspecting books and records, supervising and examining cashiers, ticket sellers, pool sellers and other persons handling money at said event and such other supervision as may be necessary for the maintenance of order at such event.

(l) The executive director shall, on or before the tenth day of each month, prepare and file with the Treasurer a full and complete statement of the division's receipts from all sources and shall turn over to the Treasurer all moneys in the division's possession.

(m) (1) The executive director shall pay each municipality in which a horse race track is located, one-quarter of one per cent of the total money wagered on horse racing events at such race track, except the executive director shall pay each such municipality having a population in excess of fifty thousand one per cent of the total money wagered at such horse racing events in such municipality. The executive director shall pay each municipality in which a jai alai fronton or dog race track is located one-half of one per cent of the total money wagered on jai alai games or dog racing events at such fronton or dog race track, except the executive director shall pay each such municipality having a population in excess of fifty thousand one per cent of the total money wagered on jai alai games or dog racing events at such fronton or dog race track located in such municipality. The executive director shall pay each municipality in which an off-track betting facility is located one per cent of the total money wagered in such facility less amounts paid as refunds or for cancellations. Payment shall be made not less than four times a year and not more than twelve times a year as determined by the executive director, and shall be made from the tax imposed pursuant to subsection (d) of this section for horse racing, subsection (e) of this section for dog racing, subsection (f) of this section for jai alai games and subsection (g) of this section for off-track betting. (2) If, for any calendar year after the surrender of a license to conduct jai alai events by any person or business organization pursuant to subsection (c) of section 12-574c and prior to the opening of any dog race track by such person or business organization, any other person or business organization licensed to conduct jai alai events is authorized to conduct a number of performances greater than the number authorized for such licensee in the previous calendar year, the executive director shall pay the municipality in which the jai alai fronton for which such license was surrendered was located, rather than the municipality in which the jai alai fronton conducting the increased performances is located, one-half of one per cent of the total money wagered on jai alai games for such increased performances at the fronton which conducted the additional performances, except the executive director shall pay each such municipality having a population in excess of fifty thousand one per cent of the total money wagered on jai alai games for such increased performances at such fronton. (3) During any state fiscal year ending on or after June 30, 1993, the executive director shall pay (A) each municipality in which a dog race track was operating prior to July 5, 1991, eight-tenths of one per cent of the total money wagered on dog racing events at such dog race track, except the executive director shall pay each such municipality having a population in excess of fifty thousand one per cent of the total money wagered on dog racing events at such dog race track located in such municipality and (B) the Northeast Connecticut Economic Alliance, Inc. two-tenths of one per cent of the total money wagered on dog racing events at any dog race track operating prior to July 5, 1991.

Sec. 3. This act shall take effect July 1, 1996.

Approved May 31, 1996. Effective July 1, 1996.

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