Senate Bill No. 1220
               Senate Bill No. 1220

              PUBLIC ACT NO. 97-233


AN  ACT  CONCERNING  THE  TRANSFER OF OWNERSHIP OF
ANNUITIES FOR PAYMENT OF  LOTTERY  PRIZES  BY  THE
DIVISION  OF  SPECIAL  REVENUE  TO THE CONNECTICUT
LOTTERY CORPORATION.


    Be  it  enacted  by  the  Senate  and House of
Representatives in General Assembly convened:
    Section  1.  Section  12-808  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  As  soon  as  practicable  after  July 1,
1996, and the organization of the corporation, the
corporation  shall  enter  into such agreements as
the board shall authorize in order to  effect  the
transfer,   assignment   and   delivery   to   the
corporation from the state of all the tangible and
intangible   assets   constituting   the  lottery,
including  the  exclusive  right  to  operate  the
lottery,  and,  subject  to subsection (b) of this
section,  to  effect   the   assignment   to   and
assumption  by  the corporation of all agreements,
covenants  and  obligations  of  the  Division  of
Special  Revenue  and  other agencies of the state
relating to the operation and  management  of  the
lottery.  Such  agreements  may contain such other
provisions  as  the  board  deems   necessary   or
appropriate  for  the  continued  operation of the
lottery by the corporation  pursuant  to  sections
12-563a and 12-800 to 12-818, inclusive.
    (b)  The  state shall [retain] TRANSFER TO THE
CORPORATION  ownership   of   all   annuities   it
purchased  for payment of lottery prizes [prior to
the date of transfer described in  subsection  (a)
of  this  section  and shall remain liable for all
lottery awards occurring prior  to  such  transfer
but  payable  thereafter]  AND SHALL NOT BE LIABLE
FOR ANY LOTTERY AWARDS.  In  addition,  the  state
shall  [remain  liable  for all] NOT BE LIABLE FOR
ANY obligations of the lottery  arising  prior  to
the date of [such transfer other than] TRANSFER AS
DESCRIBED  IN  SUBSECTION  (a)  OF  THIS  SECTION,
INCLUDING  those arising in the ordinary course of
business  under  existing  contracts  specifically
assumed   by  the  corporation.  THE  DIVISION  OF
SPECIAL REVENUE SHALL ASSIGN  TO  THE  CORPORATION
ANY  ANNUITY  FOR  PAYMENT  OF  ANY  LOTTERY AWARD
ARISING ON OR BEFORE THE DATE  OF  SUCH  TRANSFER.
Unless  otherwise  agreed  to  in writing with the
[Division  of  Special  Revenue]   DIVISION,   the
corporation  shall  be  solely responsible for the
payment of all  lottery  prizes  [arising  on  and
after   the   date   of   such   transfer  to  the
corporation] and the purchase of all annuities  to
provide revenue for such payment.
    (c)  The  corporation shall request and obtain
all approvals, consents and rulings  of  and  from
all   state   and  federal  governmental  agencies
necessary or in order to effect  the  transactions
contemplated by this section.
    Sec.  2.  This  act  shall take effect July 1,
1997.

Approved June 24, 1997