PA 10-70—sSB 231

Public Safety and Security Committee

Finance, Revenue and Bonding Committee

AN ACT CREATING AN AMNESTY PROGRAM FOR DELINQUENT LOTTERY SALES AGENTS

SUMMARY: This act requires the Division of Special Revenue (DSR) executive director to establish a settlement initiative program, from October 1, 2010 through December 31, 2010, to collect money owed by lottery sales agents on whom he imposed a delinquency assessment before October 1, 2010. To participate in the program, an agent must (1) pay all the money he or she owes minus 50% of the interest and (2) waive all administrative and judicial appeal rights that have not expired on the date payment is made.

The executive director must deposit the money collected under the program in the General Fund. He may do all that is necessary to implement the program, notwithstanding any other law.

EFFECTIVE DATE: October 1, 2010

SETTLEMENT INITIATIVE PROGRAM

The act requires the DSR executive director to establish a settlement initiative program for any lottery sales agent who owes money from lottery ticket sales, provided the executive director had imposed a delinquency assessment against the agent before October 1, 2010. The executive director must send a written notice by November 1, 2010 to agents eligible to participate in the program.

An agent has 60 days from the date of receiving the notice to pay the total amount owed (the unremitted lottery proceeds plus the delinquency penalty and interest), minus 50% of the interest. In making this payment, the agent waives any administrative and judicial appeal rights that have not expired on the date the payment is made. Payments made under the program are nonrefundable.

Any duly notified agent who fails to make a payment within 60 days after receiving the notice can no longer participate in the program. The executive director must retain any payments the agent makes and apply them against any money he or she owes.

Agents are not eligible for any refund or credit for any amount paid to DSR before they received the program notice.

BACKGROUND

Delinquency Assessments

Under DSR regulations, when the Connecticut Lottery Corporation (CLC) determines that an agent has not submitted all proceeds from lottery sales, it must notify the agent and give him or her a reasonable time to make the payments. If the agent does not comply, CLC makes a delinquency finding and notifies DSR. The executive director must charge the agent (1) the amount due and not remitted; (2) a delinquency assessment of 10% of the amount or $10, whichever is more; and (3) 1. 5% interest on the amount due for each month or fraction of a month from the date the settlement was due to the date of the payment (Conn. Agencies Reg. 12-568a-13).

Agents may contest delinquency findings at a hearing before the executive director.

OLR Tracking: VR: SS: JL: DF