Banks Committee

JOINT FAVORABLE REPORT

SPONSORS OF BILL:

Banks Committee

Connecticut Lottery Corporation

REASONS FOR BILL:

To reflect current Lottery practice of issuing cash escrow agreements and letters of credit to ensure protection from financial loss. Current statute only explicitly allows for the use of surety bonds.

RESPONSE FROM ADMINISTRATION/AGENCY:

Ann M. Nobel, President and CEO, Connecticut Lottery Corporation is in favor of the bill. She testified that letters of credit and cash escrow agreements typically offer greater protection and quicker liquidity to the Lottery than a surety bond. Bond premiums can also be very costly in comparison to the other options. The Department of Consumer Protection, the Lottery regulator, has not indicated any concerns.

NATURE AND SOURCES OF SUPPORT:

None

NATURE AND SOURCES OF OPPOSITION:

None