Substitute House Bill No. 6605
          Substitute House Bill No. 6605

              PUBLIC ACT NO. 93-332

AN ACT PROMOTING  SIMPLICITY  IN THE DETERMINATION
OF  THE  MEASURE  OF  SALES  AND  USE  TAXES,  AND
CONCERNING CERTAIN PROVISIONS  OF  STATE TAXES AND
THE  OPERATION  OF   THE   OFF-TRACK  BETTING  AND
PARI-MUTUEL FACILITIES.


    Section  1. Subsections (8) and (9) of section
12-407 of the general statutes  are  repealed  and
the following is substituted in lieu thereof:
    (8)  "Sales  price" means the total amount for
which tangible  personal  property  is  sold,  the
total amount of rent received for occupancy or the
total amount received for any service rendered  on
or  after  July  1,  1975,  or the total amount of
payment or periodic payments received for  leasing
or  rental  of  tangible personal property for the
term of any such lease or rental occurring  on  or
after  July 1, 1975, valued in money, whether paid
in money or otherwise, without  any  deduction  on
account  of  any of the following: (a) The cost of
the property sold; (b) the cost of materials used,
labor or service cost, interest charged, losses or
any   other   expenses;   [(c)   the    cost    of
transportation   of  the  property  prior  to  its
purchase] (c) FOR ANY SALE OCCURRING ON  OR  AFTER
JULY  1,  1993,  ANY  CHARGES BY THE SELLER TO THE
PURCHASER    FOR     SHIPPING     OR     DELIVERY,
NOTWITHSTANDING    WHETHER    SUCH   CHARGES   ARE
SEPARATELY STATED IN A WRITTEN CONTRACT, OR  ON  A
BILL  OR  INVOICE  RENDERED  TO  SUCH PURCHASER OR
WHETHER SUCH SHIPPING OR DELIVERY IS  PROVIDED  BY
THE  SELLER  OR  A  THIRD PARTY. THE PROVISIONS OF
SUBDIVISION (c) OF THIS SUBSECTION SHALL NOT APPLY
TO  ANY  ITEM  EXEMPT  FROM  TAXATION  PURSUANT TO
SECTION 12-412. Such total amounts include all  of
the following: (a) Any services that are a part of
the sale; (b) any amount for which credit is given
to   the   purchaser   by   the  seller;  (c)  all
compensation and all employment related  expenses,
whether  or  not  separately stated, paid to or on
behalf of employees of a retailer of  any  service
described  in subdivision (i) of subsection (2) of
this section. "Sales price" does not  include  any
of  the  following: (a) Cash discounts allowed and
taken on sales; (b)  any  portion  of  the  amount
charged  for property returned by customers, which
upon  rescission  of  the  contract  of  sale   is
refunded  either  in  cash or credit, provided the
property is returned within ninety days  from  the
date  of  purchase; (c) the amount of any tax, not
including any manufacturers' or importers'  excise
tax,  imposed  by  the  United States upon or with
respect to retail sales whether imposed  upon  the
retailer  or  the  consumer;  [(d)  transportation
charges separately stated, if  the  transportation
occurs after the purchase of the property is made;
(e)] (d) the amount charged for labor rendered  in
installing or applying the property sold, provided
such charge is separately stated and exclusive  of
such  charge  for  any service rendered within the
purview of subparagraph (I) of subdivision (i)  of
subsection  (2)  of  this  section;  [(f)] (e) the
amount charged for separately stated compensation,
fringe benefits, workers' compensation and payroll
taxes or assessments  paid  to  or  on  behalf  of
employees  of  a  retailer  who  has contracted to
manage a service recipient's property or  business
premises and renders management services described
in subdivision  (i)  of  subsection  (2)  of  this
section,  provided  (A) the employees perform such
services solely for the service recipient  at  its
property  or  business  premises  and  (B)  "sales
price"  shall  include   the   separately   stated
compensation,     fringe     benefits,    workers'
compensation and payroll taxes or assessments paid
to  or  on  behalf of any employee of the retailer
who is an officer, director or owner of more  than
five  per cent of the outstanding capital stock of
the retailer. Determination  whether  an  employee
performs  services  solely for a service recipient
at its property or business premises for  purposes
of  this subdivision shall be made by reference to
such employee's activities during the time  period
beginning  on the later of the commencement of the
management contract, the date  of  the  employee's
first employment by the retailer or the date which
is six months immediately preceding  the  date  of
such determination.
    (9)  "Gross  receipts"  means the total amount
of  the  sales  price,  of  the  retail  sales  of
retailers,   or  the  total  amount  of  the  rent
received  for  occupancy  or  the   total   amount
received for any service rendered on or after July
1,  1975,  or  the  total  amount  of  payment  or
periodic  payments  received for leasing or rental
of tangible personal property for the term of  any
such lease or rental occurring on or after July 1,
1975, valued in money, whether received  in  money
or  otherwise, without any deduction on account of
any of the following: (a) The cost of the property
sold; however, in accordance with such regulations
as  the  commissioner  of  revenue  services   may
prescribe,   a  deduction  may  be  taken  if  the
retailer has purchased  property  for  some  other
purpose than resale, has reimbursed his vendor for
tax which the vendor is required  to  pay  to  the
state  or has paid the use tax with respect to the
property, and has resold  the  property  prior  to
making   any   use  of  the  property  other  than
retention, demonstration or display while  holding
it  for sale in the regular course of business. If
such a deduction is  taken  by  the  retailer,  no
refund  or  credit  will  be allowed to his vendor
with respect to the sale of the property; (b)  the
cost of the materials used, labor or service cost,
interest paid, losses or any other  expense;  [(c)
the  cost  of transportation of the property prior
to its sale to the purchaser]  (c)  FOR  ANY  SALE
OCCURRING ON OR AFTER JULY 1, 1993, ANY CHARGES BY
THE  SELLER  TO  THE  PURCHASER  FOR  SHIPPING  OR
DELIVERY, NOTWITHSTANDING WHETHER SUCH CHARGES ARE
SEPARATELY STATED IN THE WRITTEN CONTRACT, OR ON A
BILL  OR  INVOICE  RENDERED  TO  SUCH PURCHASER OR
WHETHER SUCH SHIPPING OR DELIVERY IS  PROVIDED  BY
THE  SELLER  OR  A  THIRD PARTY. THE PROVISIONS OF
SUBDIVISION (c) OF THIS SUBSECTION SHALL NOT APPLY
TO  ANY  ITEM  EXEMPT  FROM  TAXATION  PURSUANT TO
SECTION 12-412. The  total  amount  of  the  sales
price  includes  all  of  the  following:  (a) Any
services that are a part  of  the  sale;  (b)  all
receipts,  cash, credits and property of any kind;
(c) any amount for which credit is allowed by  the
seller  to the purchaser; (d) all compensation and
all employment related expenses,  whether  or  not
separately   stated,  paid  to  or  on  behalf  of
employees of a retailer of any  service  described
in  subdivision  (i)  of  subsection  (2)  of this
section. "Gross receipts" do not  include  any  of
the  following:  (a)  Cash  discounts  allowed and
taken on sales; (b) any portion of the sales price
of  property  returned  by  customers,  which upon
rescission of the contract  of  sale  is  refunded
either in cash or credit, provided the property is
returned within ninety days from the date of sale;
(c)  the  amount  of  any  tax,  not including any
manufacturers' or importers' excise  tax,  imposed
by  the  United  States  upon  or  with respect to
retail sales whether imposed upon the retailer  or
the    consumer;   [(d)   transportation   charges
separately stated, if  the  transportation  occurs
after  the  sale  of  the  property is made to the
purchaser; (e)] (d) the amount charged  for  labor
rendered  in  installing  or applying the property
sold, provided such charge  is  separately  stated
and  exclusive  of  such  charge  for  any service
rendered within the purview of subparagraph (I) of
subdivision (i) of subsection (2) of this section;
[(f)] (e) the amount charged for separately stated
compensation,     fringe     benefits,    workers'
compensation and payroll taxes or assessments paid
to or on behalf of employees of a retailer who has
contracted  to  manage   a   service   recipient's
property   or   business   premises   and  renders
management services described in  subdivision  (i)
of  subsection  (2)  of this section, provided (A)
the employees perform such services solely for the
service  recipient  at  its  property  or business
premises and (B) "gross  receipts"  shall  include
the   separately   stated   compensation,   fringe
benefits, workers' compensation and payroll  taxes
or  assessments  paid  to  or  on  behalf  of  any
employee  of  the  retailer  who  is  an  officer,
director  or  owner  of more than five per cent of
the outstanding capital  stock  of  the  retailer.
Determination   whether   an   employee   performs
services solely for a  service  recipient  at  its
property or business premises for purposes of this
subdivision shall be made  by  reference  to  such
employee's   activities  during  the  time  period
beginning on the later of the commencement of  the
management  contract,  the  date of the employee's
first employment by the retailer or the date which
is  six  months  immediately preceding the date of
such determination.
    Sec.  2.  Subsection  (1) of section 12-411 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (1)  An  excise  tax  is hereby imposed on the
storage, acceptance, consumption or any other  use
in   this  state  of  tangible  personal  property
purchased   from   any   retailer   for   storage,
acceptance,  consumption  or any other use in this
state, the acceptance or receipt of  any  services
constituting    a    sale   in   accordance   with
subdivisions (i) to (l), inclusive, of  subsection
(2)   of   section   12-407,   or,   the  storage,
acceptance, consumption or any other use  in  this
state of tangible personal property which has been
manufactured, fabricated, assembled  or  processed
from  materials  by  a  person,  either  within or
without  this  state,  for  storage,   acceptance,
consumption  or  any  other  use by such person in
this state, TO BE MEASURED BY THE SALES  PRICE  OF
MATERIALS,  at  the  rate  of  six per cent of the
sales price of the property or  the  consideration
paid  for  any  such  services, except, in lieu of
said rate of six per cent, (A) at a rate  of  five
and  one-half  per  cent of the sales price of any
repair or replacement parts exclusively for use in
machinery,   as  defined  in  subsection  (34)  of
section 12-412, used directly in  a  manufacturing
or  agricultural production process, (B) at a rate
of four and one-half per cent of the  sales  price
of  any  motor vehicle sold to any person who is a
member of the armed forces of  the  United  States
and is on full-time active duty in Connecticut but
whose permanent residence is in another state, (C)
at  a rate of twelve per cent of the rent paid for
occupancy of any room  or  rooms  in  a  hotel  or
lodging   house   for  the  first  period  of  not
exceeding thirty consecutive  calendar  days,  and
(D)  with  respect  to  the  storage,  acceptance,
consumption  or  use  in  this  state  of  vessels
purchased   from   any   retailer   for   storage,
acceptance, consumption or any other use  in  this
state  by any resident of another state, at a rate
which is the lesser of: (i) Six per  cent  of  the
sales price thereof or (ii) the percentage of such
sales price that  is  payable  as  a  use  tax  by
purchasers  making  purchases  in  the purchaser's
state of residence, provided the retailer requires
and  maintains  an  affidavit  or  other evidence,
satisfactory to the commissioner,  concerning  the
purchaser's state of residence.
    Sec.   3.   Section  12-412c  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  On  [and] OR after July 1, 1986, the sale
of a new mobile manufactured home, AND ON OR AFTER
JULY  1,  1993,  THE  SALE  OF  A  NEW  MODULAR OR
PREFABRICATED HOME, from a manufacturer  shall  be
subject  to  sales  [tax] AND USE TAXES under this
chapter, except that for purposes  of  said  [tax]
TAXES   the   sales   price  of  such  new  mobile
manufactured home OR NEW MODULAR OR  PREFABRICATED
HOME shall be deemed to be seventy per cent of the
manufacturer's sales price applicable with respect
to  such sale. For the purpose of this subsection,
"mobile manufactured home" means a home  at  least
twelve  feet  in width, which cannot proceed under
its own power, which is towed or placed on flatbed
trucks  to  be  taken to its destination and which
requires a limited duration oversize  load  permit
in order to be transported on the highways of this
state, AND A "NEW MODULAR OR  PREFABRICATED  HOME"
MEANS  A MODULAR OR PREFABRICATED HOME, AS DEFINED
IN SECTION 21-85 WHICH  HAS  NOT  BEEN  PREVIOUSLY
SOLD OR OCCUPIED AS A DWELLING UNIT.
    (b)  On  [and]  OR  after  July  1,  1986, the
resale of any mobile manufactured home located  in
a  mobile manufactured home park licensed pursuant
to chapter 412 or located on a  single-family  lot
as  a  permitted nonconforming use or as otherwise
permitted  by  the  zoning  regulations   of   the
municipality  in which the home is located, AND ON
OR AFTER JULY 1, 1993, THE RESALE OF  ANY  MODULAR
HOME, shall be exempt from the sales [tax] AND USE
TAXES imposed by this chapter and shall  be  taxed
as  a  conveyance of realty in accordance with the
provisions of chapter 223.
    Sec.  4.  Subsection  (2) of section 12-408 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (2)  Reimbursement  for the tax hereby imposed
shall  be  collected  by  the  retailer  from  the
consumer  and such tax reimbursement, termed "tax"
in this and the following  subsections,  shall  be
paid  by  the  consumer  to  the retailer and each
retailer shall collect from the consumer the  full
amount  of  the  tax imposed by this chapter or an
amount equal as nearly as possible or  practicable
to  the average equivalent thereof. Such tax shall
be a debt from the consumer to the retailer,  when
so added to the original sales price, and shall be
recoverable at law in the  same  manner  as  other
debts  except  as provided in section 12-432a. THE
AMOUNT OF TAX REIMBURSEMENT,  WHEN  SO  COLLECTED,
SHALL  BE DEEMED TO BE A SPECIAL FUND IN TRUST FOR
THE  STATE  OF  CONNECTICUT.  Whenever  such  tax,
payable  by  the  consumer  (A)  with respect to a
charge account or  credit  sale  occurring  on  or
after July 1, 1984, is remitted by the retailer to
the commissioner  and  such  sale  as  an  account
receivable  is  determined  to be worthless and is
actually written off as uncollectible for  federal
income  tax  purposes  or  (B)  to  a retailer who
computes taxable income, for purposes of  taxation
under  the  Internal  Revenue Code of 1986, or any
subsequent corresponding internal revenue code  of
the  United  States, as from time to time amended,
on  the  cash  basis  method  of  accounting  with
respect  to  a  sale occurring on or after July 1,
1989,  is  remitted  by  the   retailer   to   the
commissioner   and   such   sale   as  an  account
receivable is  determined  to  be  worthless,  the
amount  of  such  tax  remitted  may  be  credited
against the tax due on the sales tax return  filed
by  the  retailer  for  the  monthly  or quarterly
period, whichever is  applicable,  next  following
the  period  in  which  such amount is actually so
written off, but in no event shall such credit  be
allowed  later than three years following the date
such tax is remitted. The commissioner  shall,  by
regulations adopted in accordance with chapter 54,
provide standards for proving any such  claim  for
credit.  If any account with respect to which such
credit is allowed is thereafter collected  by  the
retailer  in  whole  or  in  part,  the  amount so
collected shall  be  included  in  the  sales  tax
return   covering   the   period   in  which  such
collection occurs. The tax applicable in any  such
case  shall  be  determined in accordance with the
rate of sales tax in effect at  the  time  of  the
original sale.
    Sec.  5.  Subsection  (4) of section 12-411 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (4)  The  tax  required to be collected by the
retailer constitutes  a  debt  owed  [by]  TO  the
retailer  [to this state] BY THE PERSON PURCHASING
TANGIBLE PERSONAL PROPERTY OR SERVICES  FROM  SUCH
RETAILER.  THE  AMOUNT  OF TAX, WHEN SO COLLECTED,
SHALL BE DEEMED TO BE A SPECIAL FUND IN TRUST  FOR
THE STATE OF CONNECTICUT.
    Sec.  6.  Subdivision (2) of subsection (c) of
section 12-700 of the general statutes, as amended
by section 63 of public act 93-74, is repealed and
the following is substituted in lieu thereof:
    (2)  For  purposes  of subdivision (1) of THIS
SUBSECTION AND subsection (a), the [denominator of
the  fraction by which the tax computed as if such
part-year resident were a resident  is  multiplied
if, in the case] CONNECTICUT ADJUSTED GROSS INCOME
of a part-year resident (A)  changing  his  status
from  resident  to  nonresident  [, such part-year
resident's Connecticut adjusted gross  income,  as
defined  in section 12-701,] SHALL BE increased or
decreased, as  the  case  may  be,  by  the  items
accrued under subdivision (1) of subsection (c) of
section  12-717,  to  the  extent  not   otherwise
includible  in  Connecticut  adjusted gross income
for the taxable year and (B) changing  his  status
from  nonresident  to  resident  [, such part-year
resident's Connecticut adjusted gross  income,  as
defined  in section 12-701,] SHALL BE increased or
decreased, as  the  case  may  be,  by  the  items
accrued under subdivision (2) of subsection (c) of
section  12-717,  to  the   extent   included   in
Connecticut  adjusted gross income for the taxable
year.
    Sec.  7.  Subsection (19) of section 12-407 of
the general statutes, as amended by section 13  of
public  act  92-184  and  section 21 of public act
93-74,  is   repealed   and   the   following   is
substituted in lieu thereof:
    (19)  "Occupancy" means the use or possession,
or the right to the use or possession, of any room
or  rooms in a hotel or lodging house or the right
to the use or possession of the furnishings or the
services  and  accommodations accompanying the use
and possession of such room or rooms, [or space in
a   campground,]  for  the  first  period  of  not
exceeding thirty consecutive calendar days.
    Sec.  8.  Subsection  (c) of section 12-265 of
the general statutes, as amended  by  sections  11
and  65  of  public act 93-74, is repealed and the
following is substituted in lieu thereof:
    (c)  The  rate  of tax on the sale, furnishing
or distribution of electricity OR NATURAL GAS  for
use   directly   by   a   company   engaged  in  a
manufacturing production  process,  in  accordance
with   the   standard   Industrial  Classification
Manual, United States  Office  of  Management  and
Budget,  1987 edition, classifications [3000] 2000
to 3999, inclusive, shall be four  per  cent  with
respect  to  calendar  quarters  commencing  on or
after January 1, 1994, and  prior  to  January  1,
1995,  three  per  cent  with  respect to calendar
quarters commencing on or after January  1,  1995,
and  prior  to  January  1, 1996, and two per cent
with respect to calendar quarters commencing on or
after  January  1,  1996,  and prior to January 1,
1997. The  sale,  furnishing  or  distribution  of
electricity OR NATURAL GAS for use by a company as
provided in this subsection shall not  be  subject
to  the provisions of this chapter with respect to
calendar quarters commencing on or  after  January
1,  1997.  Not  later  than  thirty days after the
effective date of this section,  and  thirty  days
after  the  effective  date  of each rate decrease
provided for in this section each electric AND GAS
public  service  company,  as  defined  in section
16-1,  which  does  not  have  a   proposed   rate
amendment  under  section 16-19 pending before the
department of public utility control at such time,
shall   request   the  department  to  reopen  the
proceeding under section 16-19  on  the  company's
most recent rate amendment, solely for the purpose
of decreasing the company's rates to  reflect  the
decreases   required   under   this  section.  The
department   shall   immediately    reopen    such
proceedings, solely for such purpose.
    Sec.  9.  Subsection  (a) of section 12-217 of
the general statutes, as amended by section  6  of
public act 93-74, is repealed and the following is
substituted in lieu thereof:
    (a)  In  arriving  at net income as defined in
section 12-213, whether or  not  the  taxpayer  is
taxable  under  the federal corporation net income
tax, there shall be deducted  from  gross  income,
(A)   all   items  deductible  under  the  federal
corporation net income tax law  effective  and  in
force  on  the  last day of the income year except
(1) any taxes imposed under the provisions of this
chapter  which  are  paid or accrued in the income
year and in the income year commencing January  1,
1989,  and  thereafter,  any taxes in any state of
the United States or any political subdivision  of
such  state,  or the District of Columbia, imposed
on or measured by  the  income  or  profits  of  a
corporation  which  are  paid  or  accrued  in the
income year, and (2) deductions for  depreciation,
which  shall  be allowed as provided in subsection
(b) of this section, and (B) additionally, in  the
case of a regulated investment company, the sum of
(1) the exempt-interest dividends, as  defined  in
the  federal  corporation  net income tax law, and
(2) expenses, bond premium, and  interest  related
to   tax-exempt  income  that  are  disallowed  as
deductions  under  the  federal  corporation   net
income  tax law, and (C) in the case of a taxpayer
maintaining an international banking  facility  as
defined  in  the  laws of the United States or the
regulations of  the  Board  of  Governors  of  the
Federal  Reserve  System, as either may be amended
from time to time, the gross  income  attributable
to  the  international banking facility, provided,
no   expense   or   loss   attributable   to   the
international   banking   facility   shall   be  a
deduction under any provision of this section, and
(D)  additionally,  in  the case of all taxpayers,
all dividends as defined in the federal income tax
law  effective and in force on the last day of the
income year  not  otherwise  deducted  from  gross
income including dividends received from a DISC or
former DISC as  defined  in  Section  992  of  the
Internal  Revenue  Code of 1986, or any subsequent
corresponding internal revenue code of the  United
States,   as   from  time  to  time  amended,  and
dividends deemed to have  been  distributed  by  a
DISC  or former DISC as provided in Section 995 of
said Internal Revenue Code, other than thirty  per
cent   of   dividends  received  from  a  domestic
corporation in which the taxpayer owns  less  than
twenty  per  cent  of  the  total voting power and
value of the stock of such corporation; except  no
deduction   shall  be  allowed  for  (1)  expenses
related to dividends  which  are  allowable  as  a
deduction  or credit under the federal corporation
net income tax law and (2) federal taxes on income
or  profits,  losses  of  other calendar or fiscal
years, retroactive  to  include  all  calendar  or
fiscal  years  beginning  after  January  1, 1935,
interest received from federal,  state  and  local
government  securities, if any such deductions are
allowed by the federal government. Notwithstanding
anything  in this section to the contrary, (1) any
excess of the deductions provided in this  section
for any income year commencing on or after January
1, 1973, over the gross income for  such  year  or
the  amount  of  such  excess  apportioned to this
state under  the  provisions  of  section  12-218,
shall be an operating loss of such income year and
shall  be  deductible   as   an   operating   loss
carry-over  in  each  of  the  five  income  years
following such loss year, provided the portion  of
such  operating  loss  which may be deducted as an
operating  loss  carry-over  in  any  income  year
following  such  loss year shall be limited to the
lesser of (i) any net income greater than zero  of
such  income  year following such loss year, or in
the case of a company entitled  to  apportion  its
net income under the provisions of section 12-218,
the amount of such net income which is apportioned
to  this  state  pursuant  thereto,  or  (ii)  the
excess, if any, of such operating  loss  over  the
total  of  such  net  income for each of any prior
income years following such loss  year,  such  net
income   of   each  of  such  prior  income  years
following such loss year for such  purposes  being
computed  without  regard  to  any  operating loss
carry-over from such loss  year  allowed  by  this
sentence and being regarded as not less than zero,
and provided, further, the operating loss  of  any
income  year  shall  be deducted in any subsequent
year, to the extent available therefor, before the
operating  loss  of  any subsequent income year is
deducted, and (2) any net capital loss, as defined
in  the  federal  corporation  net  income tax law
effective and in force on  the  last  day  of  the
income  year, for any income year commencing on or
after January 1,  1973,  shall  be  allowed  as  a
capital  loss  carry-over to reduce, but not below
zero, any net capital gain, as so defined, in each
of  the  five  following income years, in order of
sequence, to the extent not exhausted by  the  net
capital  gain of any of the preceding of such five
following income years, and (3)  any  net  capital
losses  allowed  and  carried  forward  from prior
years  to  income  years  beginning  on  or  after
January  1,  1973, for federal income tax purposes
by companies entitled to a deduction for dividends
paid  under the federal corporation net income tax
law other than  companies  subject  to  the  gross
earnings taxes imposed under chapters 211 and 212,
shall be allowed as  a  capital  loss  carry-over.
This  section  shall not apply to a life insurance
company as defined in the federal income  tax  law
effective  and  in  force  on  the last day of the
income year. For purposes  of  this  section,  the
unpaid   loss   reserve  adjustment  required  for
nonlife insurance companies under  THE  PROVISIONS
OF  Section  832(b)(5)(B)  of the Internal Revenue
Code of  1986,  or  any  subsequent  corresponding
internal  revenue  code  of  the United states, as
from time to time amended, shall [not be  deducted
from  gross  income] BE APPLIED WITHOUT MAKING THE
ADJUSTMENT IN SUBPARAGRAPH  (B)  OF  SAID  SECTION
832(b)(5).
    Sec.   10.   Section  12-541  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    There  is hereby imposed a tax of ten per cent
of the admission charge to any place of amusement,
entertainment  or  recreation,  except that no tax
shall be imposed with  respect  to  any  admission
charge  (1) when the admission charge is less than
one dollar or, in the case of any  motion  picture
show,  when  the admission charge is less than two
dollars, (2) when  a  daily  admission  charge  is
imposed  which  entitles the patron to participate
in an athletic or sporting activity,  (3)  to  any
event,  all  of  the  proceeds  from  which  inure
exclusively to an  entity  which  is  exempt  from
federal  income  tax  under  the  Internal Revenue
Code, provided such entity actively engages in and
assumes  the  financial  risk  associated with the
presentation of such event, (4) to any event which
in  the  opinion of the commissioner, is conducted
primarily to raise funds for an  entity  which  is
exempt  from federal income tax under the Internal
Revenue  Code,  provided   the   commissioner   is
satisfied that the net profit which inures to such
entity from such event will exceed the  amount  of
the   admissions   tax   which,   but   for   this
subdivision, would  be  imposed  upon  the  person
making such charge to such event, (5) to any event
at the Hartford Civic Center, [or] the  New  Haven
Coliseum  OR  FACILITIES  OWNED  OR MANAGED BY THE
TENNIS FOUNDATION OF CONNECTICUT OR ANY  SUCCESSOR
ORGANIZATION,  (6)  paid by centers of service for
elderly persons, as described in  subdivision  (d)
of  section  17a-310  or  (7)  to  any  production
featuring live performances by actors or musicians
presented at any nonprofit theater or playhouse in
the state,  provided  such  theater  or  playhouse
possesses   evidence   confirming  exemption  from
federal tax under  Section  501  of  the  Internal
Revenue  Code.  The  tax shall be imposed upon the
person making such charge  and  reimbursement  for
the tax shall be collected by such person from the
purchaser. Such reimbursement, termed "tax", shall
be  paid by the purchaser to the person making the
admission charge. Such  tax,  when  added  to  the
admission   charge,  shall  be  a  debt  from  the
purchaser  to  the  person  making  the  admission
charge and shall be recoverable at law.
    Sec.   11.   Section  12-541  of  the  general
statutes, as amended by section 36 of  public  act
93-74  and section 10 of this act, is repealed and
the following is substituted in lieu thereof:
    There  is hereby imposed a tax of ten per cent
of the admission charge to any place of amusement,
entertainment  or  recreation,  except that no tax
shall be imposed with  respect  to  any  admission
charge  (1) when the admission charge is less than
one dollar or, in the case of any  motion  picture
show,  when  the admission charge is less than two
dollars, (2) when  a  daily  admission  charge  is
imposed  which  entitles the patron to participate
in an athletic or sporting activity,  (3)  to  any
event,  all  of  the  proceeds  from  which  inure
exclusively to an  entity  which  is  exempt  from
federal  income  tax  under  the  Internal Revenue
Code, provided such entity actively engages in and
assumes  the  financial  risk  associated with the
presentation of such event, (4) to any event which
in  the  opinion of the commissioner, is conducted
primarily to raise funds for an  entity  which  is
exempt  from federal income tax under the Internal
Revenue  Code,  provided   the   commissioner   is
satisfied that the net profit which inures to such
entity from such event will exceed the  amount  of
the   admissions   tax   which,   but   for   this
subdivision, would  be  imposed  upon  the  person
making such charge to such event, (5) to any event
at  the  Hartford  Civic  Center,  the  New  Haven
Coliseum, New Britain Beehive Stadium, NEW BRITAIN
VETERANS MEMORIAL  STADIUM,  facilities  owned  or
managed by the Tennis Foundation of Connecticut or
any  successor  organization  or  the  William  A.
O'Neill Convocation Center, (6) paid by centers of
service  for  elderly  persons,  as  described  in
subdivision  (d)  of section 17a-310 or (7) to any
production featuring live performances  by  actors
or musicians presented at any nonprofit theater or
playhouse in the state, provided such  theater  or
playhouse  possesses evidence confirming exemption
from federal tax under Section 501 of the Internal
Revenue  Code.  The  tax shall be imposed upon the
person making such charge  and  reimbursement  for
the tax shall be collected by such person from the
purchaser. Such reimbursement, termed "tax", shall
be  paid by the purchaser to the person making the
admission charge. Such  tax,  when  added  to  the
admission   charge,  shall  be  a  debt  from  the
purchaser  to  the  person  making  the  admission
charge and shall be recoverable at law.
    Sec.  12.  Subsection (c) of section 12-217 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (c)    Notwithstanding   the   provisions   of
subsections (a) and  (b)  of  this  section,  "net
income",  in  the  case of an S corporation, means
the nonseparately  computed  income  or  loss,  as
defined  in  Section  1366(a)(2)  of  the Internal
Revenue  Code,  of  such  S  corporation,  WITHOUT
SEPARATE  STATE  ADJUSTMENT  PURSUANT  TO  SECTION
12-233 OR 12-226a  FOR  THE  COMPENSATION  OF  ANY
OFFICER  OR  EMPLOYEE, to which shall be added (1)
any taxes imposed under  the  provisions  of  this
chapter  which  are  paid or accrued in the income
year and (2) any taxes in any state of the  United
States or any political subdivision of such state,
or  the  District  of  Columbia,  imposed  on   or
measured by the income or profits of a corporation
which are paid or accrued in the income year.
    Sec.   13.   Section  12-685  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    For the purposes of this chapter:
    (1)  "Commissioner"  means the commissioner of
revenue  services   or   any   employee   of   the
department.
    (2)   "Department"  means  the  department  of
revenue services.
    (3)  "Electronic  funds  transfer"  means  any
transfer of funds that  is  initiated  through  an
electronic   terminal,  telephonic  instrument  or
computer or magnetic tape so as to order, instruct
or  authorize  a financial institution to debit or
credit  an  account  but  shall  not  include  any
transfer  originated  by  check,  draft or similar
paper instrument.
    (4)    "PERSON"    MEANS    ANY    INDIVIDUAL,
PARTNERSHIP,   COMPANY,   SOCIETY,    ASSOCIATION,
TRUSTEE,    EXECUTOR,   ADMINISTRATOR   OR   OTHER
FIDUCIARY  OR   CUSTODIAN,   PUBLIC   OR   PRIVATE
CORPORATION,  OTHER  THAN ANY TOWN, CITY, BOROUGH,
CONSOLIDATED TOWN AND CITY  OR  CONSOLIDATED  TOWN
AND BOROUGH.
    [(4)]   (5)  "Tax"  means  the  tax  or  taxes
imposed under chapter 207,  208,  209,  210,  211,
212, 219, 220, 221, 225, 227 or 229.
    Sec.  14.  Subsection (8) of section 12-412 of
the general statutes, as amended by section 28  of
public act 93-74, is repealed and the following is
substituted in lieu thereof:
    (8)  Sales  of  tangible  personal property or
services    to    charitable     and     religious
organizations.  [and nonprofit organizations which
receive at least seventy-five per  cent  of  their
funds  from  the  state or a municipality] FOR THE
PURPOSES  OF  DETERMINING  EXEMPTION   UNDER   THE
PROVISIONS  OF  THIS SUBSECTION STATE OR MUNICIPAL
FUNDS  RECEIVED  BY  AN  ORGANIZATION  DEFINED  IN
SECTION  501(c)(3) OF THE INTERNAL REVENUE CODE OF
1986  OR  ANY  SUBSEQUENT  CORRESPONDING  INTERNAL
REVENUE CODE OF THE UNITED STATES, AS FROM TIME TO
TIME  AMENDED,   SHALL   BE   CONSIDERED   PRIVATE
DONATIONS.
    Sec.  15.  Subsections  (a),  (b)  and  (c) of
section 54 of public act 93-74  are  repealed  and
the following is substituted in lieu thereof:
    (a)  Every  resident individual, as defined in
section 12-701 of the general statutes, subject to
the  federal alternative minimum tax under Section
55 of the Internal  Revenue  Code  shall  pay,  in
addition  to  the tax imposed under section 12-700
of  the  general  statutes,  the  net  Connecticut
minimum  tax.  [at a rate of twenty-three per cent
of the adjusted federal  tentative  minimum  tax.]
The  provisions  of this subsection shall apply to
resident trusts and estates, as  defined  in  said
section 12-701, and, wherever reference is made in
this  section  to   resident   individuals,   such
reference  shall  be construed to include resident
trusts and estates, provided any  reference  to  a
resident's Connecticut adjusted gross income shall
be construed, in the case of a resident  trust  or
estate,  to  mean  the  resident trust or estate's
Connecticut taxable income.
    (b)  Every  nonresident individual, as defined
in section 12-701 of the general statutes, subject
to  the  federal  alternative  minimum  tax  under
Section 55 of the Internal Revenue Code shall pay,
in  addition  to  the  tax  imposed  under section
12-700  of   the   general   statutes,   the   net
Connecticut minimum tax, as calculated herein. The
tax shall be a product of an amount equal  to  the
tax  computed  as  if  such nonresident individual
were a resident individual and then multiplied  by
a   fraction,   the  numerator  of  which  is  the
nonresident's adjusted federal  tentative  minimum
tax  derived from or connected with sources within
this state, as such phrase is defined in  sections
12-711 and 12-713 of the general statutes, and the
denominator of which is the nonresident's adjusted
federal  tentative  minimum tax. The provisions of
this subsection shall apply to nonresident  trusts
and  estates,  as  defined in said section 12-701,
and, wherever reference is made in this section to
nonresident  individuals,  such reference shall be
construed  to  include  nonresident   trusts   and
estates, provided any reference to a nonresident's
Connecticut  adjusted  gross   income   shall   be
construed,  in  the case of a nonresident trust or
estate, to mean the nonresident trust or  estate's
Connecticut taxable income.
    (c)  Every  part-year  resident individual, as
defined in section 12-701 of the general statutes,
subject  to  the  federal  alternative minimum tax
under Section 55  of  the  Internal  Revenue  Code
shall  pay,  in  addition to the tax imposed under
section 12-700 of the general  statutes,  the  net
Connecticut   minimum   tax,   [at   a   rate   of
twenty-three per  cent  of  the  adjusted  federal
tentative  minimum tax,] as calculated herein. The
tax shall be a product of an amount equal  to  the
tax   computed   as  if  such  part-year  resident
individual were a  resident  individual  and  then
multiplied  by  a fraction, the numerator of which
is  the  part-year  resident's  adjusted   federal
tentative  minimum  tax  derived from or connected
with sources within this state, as such phrase  is
defined in section 12-717 of the general statutes,
and the denominator  of  which  is  the  part-year
resident's adjusted federal tentative minimum tax.
For  the  purposes  of   such   calculation,   the
provisions  of  subsection  (c)  of  said  section
12-717 providing  for  the  accrual  of  items  of
income, gain, loss or deduction shall apply to the
calculation of the part-year  resident's  adjusted
federal  tentative  minimum tax. The provisions of
this subsection shall apply to part-year  resident
trusts,  as  defined  in said section 12-701, and,
wherever reference is  made  in  this  section  to
part-year  resident  individuals,  such  reference
shall be construed to include  part-year  resident
trusts,  provided  any  reference  to  a part-year
resident's Connecticut adjusted gross income shall
be  construed, in the case of a part-year resident
trust, to  mean  the  part-year  resident  trust's
Connecticut taxable income.
    Sec.  16. Subdivision (3) of subsection (b) of
section 12-722 of the general statutes, as amended
by section 41 of public act 93-74, is repealed and
the following is substituted in lieu thereof:
    (3)   (A)   In   the   case  of  any  required
instalment, if the taxpayer establishes  that  the
annualized  income  instalment  is  less  than the
amount determined under subdivision [(4)]  (2)  of
this  subsection,  the  amount  of  such  required
instalment  shall   be   the   annualized   income
instalment,   and  any  reduction  in  a  required
instalment resulting from the application of  this
subdivision  shall be recaptured by increasing the
amount of the  next  required  instalment  by  the
amount   of   such  reduction  and  by  increasing
subsequent required instalments to the extent that
the  reduction  has not previously been recaptured
under this subdivision. (B) In  the  case  of  any
required   instalment,   the   annualized   income
instalment is the excess, if any, of (i) an amount
equal  to the applicable percentage of the tax for
the  taxable  year  computed  by  placing  on   an
annualized  basis  the  Connecticut taxable income
for months in the taxable year ending  before  the
due   date  for  the  instalment,  over  (ii)  the
aggregate amount of any prior required instalments
for  the  taxable  year.  (C) For purposes of this
subdivision, the  applicable  percentage  for  the
first   required   instalment  is  twenty-two  and
one-half, the applicable percentage for the second
required  instalment is forty-five, the applicable
percentage for the third  required  instalment  is
sixty-seven   and  one-half,  and  the  applicable
percentage for the fourth required  instalment  is
ninety.
    Sec.  17.  Subsection (a) of section 7-374b of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (a)  A  municipality,  as  defined  in section
7-369,  and  any  regional  school  district,  may
authorize  the  issuance  of bonds, notes or other
obligations in accordance with the  provisions  of
this   chapter   for  the  purpose  of  funding  a
judgment, a compromised or settled  claim  against
it  or an award or sum payable by it pursuant to a
determination by a court, or an officer,  body  or
agency    acting    in    an   administrative   or
quasi-judicial capacity, other than  an  award  or
sum  arising out of an employment contract, in any
case in which the amount of such judgment,  claim,
award  or  sum  exceeds five per cent of the total
annual receipts from taxation, as computed for the
purposes  of  subsection  (b)  of section 7-374 or
subsection (b) of section 10-56, as applicable, or
[one  million] TWO HUNDRED FIFTY THOUSAND dollars,
whichever  is  less,  provided   that   the   last
principal instalment of such bonds, notes or other
obligations shall mature  no  later  than  fifteen
years  from  the  date  of  original issue of such
bonds, notes or other obligations issued for  such
purposes. The temporary borrowing periods provided
by sections 7-378 and 7-378a shall  apply  to  the
computation  of  the maximum maturity permitted by
this section. This section shall not be applicable
to   the   issuance   of  bonds,  notes  or  other
obligations to fund judgments, settlements, awards
or  sums  payable  in connection with construction
projects.
    Sec.   18.  The  department  of  environmental
protection shall not  expend  any  funds  for  the
expansion  of the public boat ramp at Lattins Cove
on Lake Candlewood in Danbury.
    Sec.   19.   Section   8-423  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    The  commissioner of housing may make loans OR
GRANTS to municipalities which shall  be  used  by
such  municipalities  to make grants to homeowners
for costs incurred in the repair or reconstruction
of  faulty  residential subsurface sewage disposal
systems which were installed pursuant to  improper
municipal  approvals.  As  used  in  this section,
"costs"  includes   technical   and   installation
expenses and stabilization of topsoil but does not
include landscaping. As a condition  of  any  such
grant,   the   homeowner   shall   assign  to  the
municipality any claims  the  homeowner  may  have
against any party for the improper installation of
the  subsurface  sewage   disposal   system.   The
commissioner  may adopt regulations, in accordance
with chapter 54, to carry out  the  provisions  of
this section.
    Sec.  20.  Subsection (5) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (5)  Sales  of  tangible  personal property or
services to and by nonprofit charitable  hospitals
in  this state, NONPROFIT NURSING HOMES, NONPROFIT
REST  HOMES  AND  NONPROFIT  HOMES  FOR  THE  AGED
LICENSED BY THE STATE PURSUANT TO CHAPTER 368v for
the exclusive purposes of such institutions.
    Sec.  21.  Section  46  of public act 93-74 is
repealed and the following is substituted in  lieu
thereof:
    There  shall  be  paid  to the commissioner of
revenue services by  any  generator  of  regulated
waste,  other  than  a  municipality,  shipping to
storage, treatment or disposal facilities in  this
state  an  assessment  of five cents per gallon of
liquid regulated waste, one-half of one  cent  per
pound in the case of solid regulated waste entered
on a manifest in pounds and ten dollars per  cubic
yard   of  solid  regulated  waste  entered  on  a
manifest in cubic yards. As used in this  section,
"regulated waste" means waste for which a facility
permit is required under section  22a-454  of  the
general   statutes  for  persons  engaged  in  the
business  of  storing,  treating,   disposing   or
transporting such waste and shall include, but not
be limited to,  waste  PCB's,  nonhazardous  waste
oil,   wastewater   soluble  oil,  waste  chemical
liquids and waste chemical solids. The  assessment
required under this section shall not apply to any
waste subject to the assessment provided for under
section   22a-132  of  the  general  statutes,  as
amended by section 45 of this act,  or  any  waste
that  is  recycled.  The provisions of subsections
(b), (c) and (f) of said section  22a-132  of  the
general  statutes shall apply to the provisions of
this section in the same manner and with the  same
force  and  effect  as  if  the  language  of said
subsections had been  incorporated  in  full  into
this  section  and  had  expressly referred to the
assessment imposed under this section,  except  to
the extent that any such provision is inconsistent
with a provision of this section and  except  that
the  term "assessment" shall be read as "regulated
waste  assessment".  As  used  in   this   section
"recycled"   means  waste  that  is  processed  to
recover a usable product,  or  is  regenerated  or
reused.  Burning  for  heat  value  shall  not  be
considered recycling, PROVIDED FOR THE PURPOSES OF
THIS SECTION THE BURNING OF NONHAZARDOUS WASTE OIL
FOR ENERGY RECOVERY SHALL BE DEEMED RECYCLED.  Any
moneys  received  by  the  state  pursuant to this
section shall be deposited into the general fund.
    Sec.    22.   The   city   of   Shelton   may,
notwithstanding the provisions of section 7-253 of
the  general statutes or any bond resolution which
requires the last instalment of any assessment  on
any  bonds  or notes issued by the city in 1991 to
finance the construction of  a  sewer  system,  be
paid  not later than one year prior to the date of
the last maturity of such bonds,  extend  the  due
date  of  last  instalment of such assessment to a
date not more than fifteen years from the date  of
the  issuance of any bonds or notes by the city of
Shelton to finance the construction  of  a  sewage
system.  The  city  of Shelton may amend any sewer
assessments, applicable to any such bonds or notes
issued  in  1991, to conform such assessments with
the provisions of this section.
    Sec.  23. Subsection (74) of section 12-412 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (74)  Sales  of  computer  and data processing
services rendered TO A CUSTOMER (A) by a  retailer
which,  on  or  after  July  1, 1991, acquired the
operations of a data processing facility from  the
customer, [receiving such services,] provided such
customer operated the facility for its own use  OR
(B) BY A RETAILER WHICH, ON OR AFTER JULY 1, 1993,
ACQUIRED THE OPERATIONS  OF  THE  DATA  PROCESSING
FACILITY    FROM   THE   RETAILER   DESCRIBED   IN
SUBDIVISION (A) OF THIS SUBSECTION, PROVIDED  SUCH
CUSTOMER  FORMERLY  OPERATED  THE FACILITY FOR ITS
OWN USE.
    Sec.   24.   Section  12-35b  of  the  general
statutes, as amended by section 2  of  public  act
93-74,   is   repealed   and   the   following  is
substituted in lieu thereof:
    For  the  purposes of sections 12-204, 12-212,
12-330i, 12-235, as amended by section 9 of  [this
act]  PUBLIC  ACT 93-74, 12-268h, 12-309, 12-405d,
12-420, 12-441, 12-475, 12-488,  12-512,  12-555a,
12-594,   12-638j,   51-81b,  12-366,  12-734  and
sections 46 and 47 of [this act] PUBLIC ACT 93-74:
    (a)  "Bona  fide purchaser" means a person who
takes a conveyance of real estate  in  good  faith
from  the holder of legal title, and pays valuable
consideration,   without   actual,   implied,   or
constructive notice of any tax delinquency.
    (b)  "Qualified  encumbrancer"  means a person
who places  a  burden,  charge  or  lien  on  real
estate, in good faith, without actual, implied, or
constructive notice of any tax delinquency.
    (c)  "Commissioner"  means the commissioner of
revenue services or his authorized agent.
    Sec.  25.  Subsection (2) of section 12-407 of
the general statutes, as amended by section 23  of
public act 93-74, is repealed and the following is
substituted in lieu thereof:
    (2)  "Sale"  and  "selling"  mean and include:
(a) Any transfer of  title,  exchange  or  barter,
conditional  or otherwise, in any manner or by any
means whatsoever, of  tangible  personal  property
for  a consideration; (b) any withdrawal, except a
withdrawal pursuant to a transaction in foreign or
interstate commerce, of tangible personal property
from the place where it is located for delivery to
a  point  in  this  state  for  the purpose of the
transfer of title, exchange or barter, conditional
or  otherwise,  in  any  manner  or  by  any means
whatsoever, of the property for  a  consideration;
(c)   the   producing,   fabricating,  processing,
printing  or  imprinting  of   tangible   personal
property  for  a  consideration  for consumers who
furnish  either   directly   or   indirectly   the
materials  used  in  the  producing,  fabricating,
processing, printing or imprinting, including  but
not   limited   to,   computer  programming,  sign
construction,  photofinishing,   duplicating   and
photocopying;  (d) the furnishing and distributing
of tangible personal property for a  consideration
by  social  clubs  and  fraternal organizations to
their  members  or  others;  (e)  the  furnishing,
preparing, or serving for a consideration of food,
meals or drinks; (f)  a  transaction  whereby  the
possession  of  property  is  transferred  but the
seller retains  the  title  as  security  for  the
payment  of  the  price;  (g)  a  transfer  for  a
consideration of the title  of  tangible  personal
property  which  has  been produced, fabricated or
printed to the special order of the  customer,  or
of  any publication, including but not limited to,
computer    programming,    sign     construction,
photofinishing,  duplicating and photocopying; (h)
a transfer for a consideration of the occupancy of
any  room or rooms in a hotel or lodging house for
a period of thirty consecutive  calendar  days  or
less;  (i) the rendering of certain services for a
consideration, exclusive of such services rendered
by  an  employee for his employer, as follows: (A)
Computer and data processing  services,  including
but  not  limited to, time, (B) credit information
and reporting services, (C) services by employment
agencies    and   agencies   providing   personnel
services, (D) private  investigation,  protection,
patrol  work,  watchman  and armored car services,
(E)   painting   and   lettering   services,   (F)
photographic   studio   services,   (G)  telephone
answering services, (H) stenographic services, (I)
services     to    industrial,    commercial    or
income-producing real property, including but  not
limited   to,   such   services   as   management,
electrical, plumbing, painting and  carpentry  and
excluding  any  such  services  rendered  for  the
voluntary  containing  or  removing  of  hazardous
waste,  provided  income-producing  property shall
not  include   property   used   exclusively   for
residential  purposes  in  which the owner resides
and which contains no  more  than  three  dwelling
units,  or a housing facility for low and moderate
income  families   and   persons   owned   by   an
organization  which has as one of its purposes the
ownership of housing for low and  moderate  income
families,  and which organization has been granted
exemption  from  federal  income   taxation,   (J)
business    analysis,    management,    management
consulting  and  public  relations  services,  (K)
services providing "piped-in" music to business or
professional    establishments,     (L)     flight
instruction   and   chartering   services   by   a
certificated air carrier on an aircraft,  the  use
of which for such purposes, but for the provisions
of subsection (4) of section 12-410 and subsection
(12)  of  section 12-411, would be deemed a retail
sale and a taxable storage or  use,  respectively,
of  such  aircraft  by  such  carrier,  (M)  motor
vehicle repair services,  including  any  type  of
repair,  painting  or  replacement  related to the
body or any of the  operating  parts  of  a  motor
vehicle,  (N) motor vehicle parking, including the
provision of space, other than metered space, in a
lot  having  thirty  or more spaces, excluding (i)
space in a seasonal  parking  lot  provided  by  a
person  who  is  exempt  from  taxation under this
chapter pursuant to subsection (1), (5) or (8)  of
section  12-412,  as amended by sections 27 and 28
of this act, (ii) space in a parking lot owned  or
leased under the terms of a lease of not less than
ten years duration and operated by an employer for
the  exclusive  use  of  its  employees, and (iii)
valet parking provided at any airport,  (O)  radio
or   television  repair  services,  (P)  furniture
reupholstering and  repair  services,  (Q)  repair
services  to  any electrical or electronic device,
including but not limited to, such equipment  used
for purposes of refrigeration or air-conditioning,
(R) health and athletic club  services,  exclusive
of   any   such   services  provided  without  any
additional charge which are included in  any  dues
or  initiation  fees  paid to any such club, which
dues or fees are  subject  to  tax  under  section
12-543, (S) tax preparation services, (T) lobbying
or   consulting   services   for    purposes    of
representing the interests of a client in relation
to the functions of  any  governmental  entity  or
instrumentality,  (U) services of the agent of any
person in relation to the  sale  of  any  item  of
tangible   personal   property  for  such  person,
exclusive of the services of a  consignee  selling
works  of  art,  as  defined  in subsection (b) of
section  12-376c,  or  articles  of  clothing   or
footwear intended to be worn on or about the human
body  other  than  (i)  any  special  clothing  or
footwear  primarily designed for athletic activity
or protective use and which is not  normally  worn
except  when  used  for  the  athletic activity or
protective use for which it was designed and  (ii)
jewelry,  handbags,  luggage,  umbrellas, wallets,
watches and similar items carried on or about  the
human  body but not worn on the body in the manner
characteristic of clothing intended for  exemption
under  subdivision  (47)  of section 12-412, under
consignment or motor vehicles  being  sold  at  an
auction to persons who are engaged in the business
of  reselling  motor   vehicles,   (V)   locksmith
services,  (W)  advertising  or  public  relations
services, including layout, art direction, graphic
design,   mechanical   preparation  or  production
supervision, not related  to  the  development  of
media   advertising  or  cooperative  direct  mail
advertising,  (X)  landscaping  and   horticulture
services,   (Y)   window  cleaning  services,  (Z)
maintenance services,  (AA)  janitorial  services,
(BB)  exterminating  services,  (CC) swimming pool
cleaning and maintenance services, (DD) renovation
and   repair   services   as  set  forth  in  this
subparagraph, to other than industrial, commercial
or  income-producing  real property: Paving of any
sort, painting or staining, wallpapering, roofing,
siding   and   exterior  sheet  metal  work,  (EE)
miscellaneous  personal   services   included   in
industry  group  729  in  the  Standard Industrial
Classification Manual,  United  States  Office  of
Management  and Budget, 1987 edition, exclusive of
services rendered by massage  therapists  licensed
pursuant to chapter 384a, [and] (FF) any repair or
maintenance  service  to  any  item  of   tangible
personal   property   including  any  contract  of
warranty or service related to any such  item  AND
(GG)  BUSINESS  ANALYSIS,  MANAGEMENT  OR MANAGING
CONSULTING SERVICES RENDERED BY A GENERAL  PARTNER
TO  A  LIMITED  PARTNERSHIP, PROVIDED (i) THAT THE
GENERAL PARTNER IS COMPENSATED FOR  THE  RENDITION
OF SUCH SERVICES OTHER THAN THROUGH A DISTRIBUTIVE
SHARE OF PARTNERSHIP PROFITS, AND (ii) THE GENERAL
PARTNER  OFFERS SUCH SERVICES TO OTHERS, INCLUDING
ANY OTHER PARTNERSHIP; (j) the leasing  or  rental
of   tangible   personal   property  of  any  kind
whatsoever, including but not  limited  to,  motor
vehicles, linen or towels, machinery or apparatus,
office equipment and  data  processing  equipment,
provided  for purposes of this subdivision and the
application of sales and use tax to  contracts  of
lease or rental of tangible personal property, the
leasing or rental of any motion  picture  film  by
the  owner or operator of a motion picture theater
for purposes of display at such theater shall  not
constitute  a  sale  within  the  meaning  of this
subsection;     (k)     the      rendering      of
telecommunications    service,   as   defined   in
subsection   (26)   of   this   section,   for   a
consideration   on   or  after  January  1,  1990,
exclusive of  any  such  service  rendered  by  an
employee   for   his   employer,  subject  to  the
provisions related to  telecommunications  service
in   accordance  with  section  12-407a;  (l)  the
rendering of community antenna television service,
as defined in subsection (27) of this section, for
a consideration  on  or  after  January  1,  1990,
exclusive  of  any  such  service  rendered  by an
employee for his employer; (m)  the  rendering  of
transportation  service,  as defined in subsection
(28) of this section, for a  consideration  on  or
after  October  1,  1991,  exclusive  of  any such
service rendered by an employee for his  employer;
(n) the transfer for consideration of space or the
right to use any space for the purpose of  storage
or  mooring of any noncommercial vessel, exclusive
of dry or wet storage or mooring  of  such  vessel
during  the  period commencing on the first day of
November  in  any  year  to  and   including   the
thirtieth  day  of  April  of  the next succeeding
year. Wherever in this chapter reference  is  made
to  the  sale  of  tangible  personal  property or
services, it shall be construed to  include  sales
described  in  this  subsection,  except as may be
specifically provided to the contrary.
    Sec.  26.  Subsection (2) of section 12-407 of
the general statutes, as amended by section 24  of
public act 93-74, is repealed and the following is
substituted in lieu thereof:
    (2)  "Sale"  and  "selling"  mean and include:
(a) Any transfer of  title,  exchange  or  barter,
conditional  or otherwise, in any manner or by any
means whatsoever, of  tangible  personal  property
for  a consideration; (b) any withdrawal, except a
withdrawal pursuant to a transaction in foreign or
interstate commerce, of tangible personal property
from the place where it is located for delivery to
a  point  in  this  state  for  the purpose of the
transfer of title, exchange or barter, conditional
or  otherwise,  in  any  manner  or  by  any means
whatsoever, of the property for  a  consideration;
(c)   the   producing,   fabricating,  processing,
printing  or  imprinting  of   tangible   personal
property  for  a  consideration  for consumers who
furnish  either   directly   or   indirectly   the
materials  used  in  the  producing,  fabricating,
processing, printing or imprinting, including  but
not   limited   to,   computer  programming,  sign
construction,  photofinishing,   duplicating   and
photocopying;  (d) the furnishing and distributing
of tangible personal property for a  consideration
by  social  clubs  and  fraternal organizations to
their  members  or  others;  (e)  the  furnishing,
preparing, or serving for a consideration of food,
meals or drinks; (f)  a  transaction  whereby  the
possession  of  property  is  transferred  but the
seller retains  the  title  as  security  for  the
payment  of  the  price;  (g)  a  transfer  for  a
consideration of the title  of  tangible  personal
property  which  has  been produced, fabricated or
printed to the special order of the  customer,  or
of  any publication, including but not limited to,
computer    programming,    sign     construction,
photofinishing,  duplicating and photocopying; (h)
a transfer for a consideration of the occupancy of
any  room or rooms in a hotel or lodging house for
a period of thirty consecutive  calendar  days  or
less;  (i) the rendering of certain services for a
consideration, exclusive of such services rendered
by  an  employee for his employer, as follows: (A)
Computer and data processing  services,  including
but  not  limited to, time, (B) credit information
and reporting services, (C) services by employment
agencies    and   agencies   providing   personnel
services, (D) private  investigation,  protection,
patrol  work,  watchman  and armored car services,
(E)   painting   and   lettering   services,   (F)
photographic   studio   services,   (G)  telephone
answering services, (H) stenographic services, (I)
services     to    industrial,    commercial    or
income-producing real property, including but  not
limited   to,   such   services   as   management,
electrical, plumbing, painting and  carpentry  and
excluding  any  such  services  rendered  for  the
voluntary  containing  or  removing  of  hazardous
waste,  provided  income-producing  property shall
not  include   property   used   exclusively   for
residential  purposes  in  which the owner resides
and which contains no  more  than  three  dwelling
units,  or a housing facility for low and moderate
income  families   and   persons   owned   by   an
organization  which has as one of its purposes the
ownership of housing for low and  moderate  income
families,  and which organization has been granted
exemption  from  federal  income   taxation,   (J)
business    analysis,    management,    management
consulting  and  public  relations  services,  (K)
services providing "piped-in" music to business or
professional    establishments,     (L)     flight
instruction   and   chartering   services   by   a
certificated air carrier on an aircraft,  the  use
of which for such purposes, but for the provisions
of subsection (4) of section 12-410 and subsection
(12)  of  section 12-411, would be deemed a retail
sale and a taxable storage or  use,  respectively,
of  such  aircraft  by  such  carrier,  (M)  motor
vehicle repair services,  including  any  type  of
repair,  painting  or  replacement  related to the
body or any of the  operating  parts  of  a  motor
vehicle,  (N) motor vehicle parking, including the
provision of space, other than metered space, in a
lot  having  thirty  or more spaces, excluding (i)
space in a seasonal  parking  lot  provided  by  a
person  who  is  exempt  from  taxation under this
chapter pursuant to subsection (1), (5) or (8)  of
section  12-412,  as amended by sections 27 and 28
of this act, (ii) space in a parking lot owned  or
leased under the terms of a lease of not less than
ten years duration and operated by an employer for
the  exclusive  use  of  its  employees, and (iii)
valet parking provided at any airport,  (O)  radio
or   television  repair  services,  (P)  furniture
reupholstering and  repair  services,  (Q)  repair
services  to  any electrical or electronic device,
including but not limited to, such equipment  used
for purposes of refrigeration or air-conditioning,
(R) health and athletic club  services,  exclusive
of   any   such   services  provided  without  any
additional charge which are included in  any  dues
or  initiation  fees  paid to any such club, which
dues or fees are  subject  to  tax  under  section
12-543,  (S)  tax  preparation services, excluding
such   services   provided   for    a    business,
corporation,  partnership  and  business schedules
related to individual  returns,  (T)  lobbying  or
consulting  services  for purposes of representing
the interests of  a  client  in  relation  to  the
functions    of   any   governmental   entity   or
instrumentality, (U) services of the agent of  any
person  in  relation  to  the  sale of any item of
tangible  personal  property  for   such   person,
exclusive  of  the services of a consignee selling
works of art, as  defined  in  subsection  (b)  of
section   12-376c,  or  articles  of  clothing  or
footwear intended to be worn on or about the human
body  other  than  (i)  any  special  clothing  or
footwear primarily designed for athletic  activity
or  protective  use and which is not normally worn
except when used  for  the  athletic  activity  or
protective  use for which it was designed and (ii)
jewelry, handbags,  luggage,  umbrellas,  wallets,
watches  and similar items carried on or about the
human body but not worn on the body in the  manner
characteristic  of clothing intended for exemption
under subdivision (47) of  section  12-412,  under
consignment  or  motor  vehicles  being sold at as
auction to persons who are engaged in the business
of   reselling   motor   vehicles,  (V)  locksmith
services,  (W)  advertising  or  public  relations
services, including layout, art direction, graphic
design,  mechanical  preparation   or   production
supervision,  not  related  to  the development of
media  advertising  or  cooperative  direct   mail
advertising,   (X)  landscaping  and  horticulture
services,  (Y)  window  cleaning   services,   (Z)
maintenance  services,  (AA)  janitorial services,
(BB) exterminating services,  (CC)  swimming  pool
cleaning and maintenance services, (DD) renovation
and  repair  services  as  set   forth   in   this
subparagraph, to other than industrial, commercial
or income-producing real property: Paving  of  any
sort, painting or staining, wallpapering, roofing,
siding  and  exterior  sheet  metal   work,   (EE)
miscellaneous   personal   services   included  in
industry group  729  in  the  Standard  Industrial
Classification  Manual,  United  States  Office of
Management and Budget, 1987 edition, exclusive  of
services  rendered  by massage therapists licensed
pursuant to chapter 384a, [and] (FF) any repair or
maintenance   service  to  any  item  of  tangible
personal  property  including  any   contract   of
warranty  or  service related to any such item AND
(GG) BUSINESS  ANALYSIS,  MANAGEMENT  OR  MANAGING
CONSULTING  SERVICES RENDERED BY A GENERAL PARTNER
TO A LIMITED PARTNERSHIP, PROVIDED  (i)  THAT  THE
GENERAL  PARTNER  IS COMPENSATED FOR THE RENDITION
OF SUCH SERVICES OTHER THAN THROUGH A DISTRIBUTIVE
SHARE OF PARTNERSHIP PROFITS, AND (ii) THE GENERAL
PARTNER OFFERS SUCH SERVICES TO OTHERS,  INCLUDING
ANY  OTHER  PARTNERSHIP; (j) the leasing or rental
of  tangible  personal  property   of   any   kind
whatsoever,  including  but  not limited to, motor
vehicles, linen or towels, machinery or apparatus,
office  equipment  and  data processing equipment,
provided for purposes of this subdivision and  the
application  of  sales and use tax to contracts of
lease or rental of tangible personal property, the
leasing  or  rental  of any motion picture film by
the owner or operator of a motion picture  theater
for  purposes of display at such theater shall not
constitute a  sale  within  the  meaning  of  this
subsection;      (k)      the     rendering     of
telecommunications   service,   as   defined    in
subsection   (26)   of   this   section,   for   a
consideration  on  or  after  January   1,   1990,
exclusive  of  any  such  service  rendered  by an
employee  for  his  employer,   subject   to   the
provisions  related  to telecommunications service
in  accordance  with  section  12-407a;  (l)   the
rendering of community antenna television service,
as defined in subsection (27) of this section, for
a  consideration  on  or  after  January  1, 1990,
exclusive of  any  such  service  rendered  by  an
employee  for  his  employer; (m) the rendering of
transportation service, as defined  in  subsection
(28)  of  this  section, for a consideration on or
after October  1,  1991,  exclusive  of  any  such
service  rendered by an employee for his employer;
(n) the transfer for consideration of space or the
right  to use any space for the purpose of storage
or mooring of any noncommercial vessel,  exclusive
of  dry  or  wet storage or mooring of such vessel
during the period commencing on the first  day  of
November   in   any  year  to  and  including  the
thirtieth day of  April  of  the  next  succeeding
year.  Wherever  in this chapter reference is made
to the  sale  of  tangible  personal  property  or
services,  it  shall be construed to include sales
described in this subsection,  except  as  may  be
specifically provided to the contrary.
    Sec.  27. Subdivision (4) of subsection (a) of
section 12-701 of the general statutes is repealed
and the following is substituted in lieu thereof:
    (4)  "Resident  trust or estate" means (A) the
estate of a decedent who at the time of his  death
was  a resident of this state, (B) the estate of a
person who, at the time of commencement of a  case
under  Title  11  of the United States Code, was a
resident of this state, (C) a trust, or a  portion
of  a trust, consisting of property transferred by
will of a decedent who at the time  of  his  death
was  a resident of this state, and (D) a trust, or
a portion of a trust, consisting of  the  property
of  (i)  a person who was a resident of this state
at the time the property was  transferred  to  the
trust  if  the  trust was then irrevocable, (ii) a
person who, if the trust was revocable at the time
the property was transferred to the trust, and has
not  subsequently  become   irrevocable,   was   a
resident  of  this  state at the time the property
was transferred to the trust  or  (iii)  a  person
who,  if the trust was revocable when the property
was transferred to the trust  but  the  trust  has
subsequently become irrevocable, was a resident of
this  state  at  the   time   the   trust   became
irrevocable.  For purposes of this chapter, if any
trust or portion of a trust, other  than  a  trust
created  by  the  will  of  a  decedent, has [both
resident   and]   ONE    OR    MORE    nonresident
noncontingent   beneficiaries,   the   Connecticut
taxable  income  of  the  trust,  as  defined   in
subdivision  (9)  of  this  subsection,  shall  be
modified  as  follows:  The  Connecticut   taxable
income  of  the trust shall be the sum of all such
income derived  from  or  connected  with  sources
within  this state and that portion of such income
derived from or connected with all  other  sources
which  is  derived  by applying to all such income
derived from or connected with all other sources a
fraction  the  numerator of which is the number of
resident  noncontingent  beneficiaries   and   the
denominator  of  which  is  the  total  number  of
noncontingent  beneficiaries.  As  used  in   this
subdivision,  "noncontingent  beneficiary" means a
beneficiary whose interest is  not  subject  to  a
condition precedent.
    Sec.  28.  Subdivisions (8) and (9) of section
12-407 of the  general  statutes,  as  amended  by
public  act 92-184, are repealed and the following
is substituted in lieu thereof:
    (8)  "Sales  price" means the total amount for
which tangible  personal  property  is  sold,  the
total amount of rent received for occupancy or the
total amount received for any service rendered  on
or  after  July  1,  1975,  or the total amount of
payment or periodic payments received for  leasing
or  rental  of  tangible personal property for the
term of any such lease or rental occurring  on  or
after  July 1, 1975, valued in money, whether paid
in money or otherwise, without  any  deduction  on
account  of  any of the following: (a) The cost of
the property sold; (b) the cost of materials used,
labor or service cost, interest charged, losses or
any other expenses; (c) the cost of transportation
of  the property prior to its purchase. Such total
amounts include all  of  the  following:  (a)  Any
services  that  are  a  part  of the sale; (b) any
amount for which credit is given to the  purchaser
by  the  seller;  (c)  all  compensation  and  all
employment  related  expenses,  whether   or   not
separately   stated,  paid  to  or  on  behalf  of
employees of a retailer of any  service  described
in  subdivision  (i)  of  subsection  (2)  of this
section. "Sales price" does not include any of the
following: (a) Cash discounts allowed and taken on
sales; (b) any portion of the amount  charged  for
property   returned   by   customers,  which  upon
rescission of the contract  of  sale  is  refunded
either in cash or credit, provided the property is
returned within  ninety  days  from  the  date  of
purchase; (c) the amount of any tax, not including
any  manufacturers'  or  importers'  excise   tax,
imposed  by the United States upon or with respect
to retail sales whether imposed upon the  retailer
or   the   consumer;  (d)  transportation  charges
separately stated, if  the  transportation  occurs
after  the  purchase  of the property is made; (e)
the  amount  charged   for   labor   rendered   in
installing or applying the property sold, provided
such charge is separately stated and exclusive  of
such  charge  for  any service rendered within the
purview of subparagraph (I) of subdivision (i)  of
subsection  (2)  of  this  section; (f) the amount
charged for separately stated compensation, fringe
benefits,  workers' compensation and payroll taxes
or assessments paid to or on behalf  of  employees
of  a  retailer  who  has  contracted  to manage a
service recipient's property or business  premises
and   renders  management  services  described  in
subdivision (i) of subsection (2) of this section,
provided  (A)  the employees perform such services
solely for the service recipient at  its  property
or  business  premises and (B) "sales price" shall
include the separately stated compensation, fringe
benefits,  workers' compensation and payroll taxes
or  assessments  paid  to  or  on  behalf  of  any
employee  of  the  retailer  who  is  an  officer,
director or owner of more than five  per  cent  of
the  outstanding  capital  stock  of the retailer.
Determination   whether   an   employee   performs
services  solely  for  a  service recipient at its
property or business premises for purposes of this
subdivision  shall  be  made  by reference to such
employee's  activities  during  the  time   period
beginning  on the later of the commencement of the
management contract, the date  of  the  employee's
first employment by the retailer or the date which
is six months immediately preceding  the  date  of
such determination; AND (g) THE AMOUNT CHARGED FOR
SEPARATELY STATED COMPENSATION,  FRINGE  BENEFITS,
WORKERS'   COMPENSATION   AND   PAYROLL  TAXES  OR
ASSESSMENTS PAID TO OR ON BEHALF OF  AN  EMPLOYEE,
AS  DEFINED  AS  A  LEASED  EMPLOYEE  PURSUANT  TO
SECTION 414(n) OF THE  INTERNAL  REVENUE  CODE  OF
1986,  OR  ANY  SUBSEQUENT  CORRESPONDING INTERNAL
REVENUE CODE OF  THE  UNITED  STATES,  PROVIDED  A
LEASED  EMPLOYEE SHALL NOT INCLUDE AN EMPLOYEE WHO
IS HIRED BY A TEMPORARY HELP SERVICE AND  ASSIGNED
TO  SUPPORT  OR  SUPPLEMENT  THE  WORKFORCE  OF  A
TEMPORARY HELP SERVICE'S CLIENT.
    (9)  "Gross  receipts"  means the total amount
of  the  sales  price,  of  the  retail  sales  of
retailers,   or  the  total  amount  of  the  rent
received  for  occupancy  or  the   total   amount
received for any service rendered on or after July
1,  1975,  or  the  total  amount  of  payment  or
periodic  payments  received for leasing or rental
of tangible personal property for the term of  any
such lease or rental occurring on or after July 1,
1975, valued in money, whether received  in  money
or  otherwise, without any deduction on account of
any of the following: (a) The cost of the property
sold; however, in accordance with such regulations
as  the  commissioner  of  revenue  services   may
prescribe,   a  deduction  may  be  taken  if  the
retailer has purchased  property  for  some  other
purpose than resale, has reimbursed his vendor for
tax which the vendor is required  to  pay  to  the
state  or has paid the use tax with respect to the
property, and has resold  the  property  prior  to
making   any   use  of  the  property  other  than
retention, demonstration or display while  holding
it  for sale in the regular course of business. If
such a deduction is  taken  by  the  retailer,  no
refund  or  credit  will  be allowed to his vendor
with respect to the sale of the property; (b)  the
cost of the materials used, labor or service cost,
interest paid, losses or any  other  expense;  (c)
the  cost  of transportation of the property prior
to its sale to the purchaser. The total amount  of
the sales price includes all of the following: (a)
Any services that are a part of the sale; (b)  all
receipts,  cash, credits and property of any kind;
(c) any amount for which credit is allowed by  the
seller  to the purchaser; (d) all compensation and
all employment related expenses,  whether  or  not
separately   stated,  paid  to  or  on  behalf  of
employees of a retailer of any  service  described
in  subdivision  (i)  of  subsection  (2)  of this
section. "Gross receipts" do not  include  any  of
the  following:  (a)  Cash  discounts  allowed and
taken on sales; (b) any portion of the sales price
of  property  returned  by  customers,  which upon
rescission of the contract  of  sale  is  refunded
either in cash or credit, provided the property is
returned within ninety days from the date of sale;
(c)  the  amount  of  any  tax,  not including any
manufacturers' or importers' excise  tax,  imposed
by  the  United  States  upon  or  with respect to
retail sales whether imposed upon the retailer  or
the    consumer;    (d)   transportation   charges
separately stated, if  the  transportation  occurs
after  the  sale  of  the  property is made to the
purchaser;  (e)  the  amount  charged  for   labor
rendered  in  installing  or applying the property
sold, provided such charge  is  separately  stated
and  exclusive  of  such  charge  for  any service
rendered within the purview of subparagraph (I) of
subdivision (i) of subsection (2) of this section;
(f)  the  amount  charged  for  separately  stated
compensation,     fringe     benefits,    workers'
compensation and payroll taxes or assessments paid
to or on behalf of employees of a retailer who has
contracted  to  manage   a   service   recipient's
property   or   business   premises   and  renders
management services described in  subdivision  (i)
of  subsection  (2)  of this section, provided (A)
the employees perform such services solely for the
service  recipient  at  its  property  or business
premises and (B) "gross  receipts"  shall  include
the   separately   stated   compensation,   fringe
benefits, workers' compensation and payroll  taxes
or  assessments  paid  to  or  on  behalf  of  any
employee  of  the  retailer  who  is  an  officer,
director  or  owner  of more than five per cent of
the outstanding capital  stock  of  the  retailer.
Determination   whether   an   employee   performs
services solely for a  service  recipient  at  its
property or business premises for purposes of this
subdivision shall be made  by  reference  to  such
employee's   activities  during  the  time  period
beginning on the later of the commencement of  the
management  contract,  the  date of the employee's
first employment by the retailer or the date which
is  six  months  immediately preceding the date of
such determination; AND (g) THE AMOUNT CHARGED FOR
SEPARATELY  STATED  COMPENSATION, FRINGE BENEFITS,
WORKERS'  COMPENSATION  AND   PAYROLL   TAXES   OR
ASSESSMENTS  PAID  TO OR ON BEHALF OF AN EMPLOYEE,
AS  DEFINED  AS  A  LEASED  EMPLOYEE  PURSUANT  TO
SECTION  414(n)  OF  THE  INTERNAL REVENUE CODE OF
1986, OR  ANY  SUBSEQUENT  CORRESPONDING  INTERNAL
REVENUE  CODE  OF  THE  UNITED  STATES, PROVIDED A
LEASED EMPLOYEE SHALL NOT INCLUDE AN EMPLOYEE  WHO
IS  HIRED BY A TEMPORARY HELP SERVICE AND ASSIGNED
TO  SUPPORT  OR  SUPPLEMENT  THE  WORKFORCE  OF  A
TEMPORARY HELP SERVICE'S CLIENT.
    Sec.   29.   Section  12-571  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  The EXECUTIVE DIRECTOR OF THE DIVISION OF
SPECIAL REVENUE SHALL ENTER INTO NEGOTIATIONS WITH
A PERSON OR BUSINESS ORGANIZATION FOR THE AWARD OF
A CONTRACT OF SALE OF THE OFF-TRACK BETTING SYSTEM
INCLUDING,  BUT  NOT  LIMITED  TO,  THE ASSETS AND
LIABILITIES OF THE SYSTEM AND THE RIGHT TO OPERATE
THE  SYSTEM. SUCH CONTRACT OF SALE SHALL AUTHORIZE
THE PURCHASER  OF  THE  SYSTEM  TO  ESTABLISH  AND
CONDUCT  A  SYSTEM  OF  OFF-TRACK BETTING ON RACES
HELD WITHIN OR WITHOUT THE STATE PURSUANT  TO  THE
PROVISIONS  OF  THIS CHAPTER. ALL PROCEEDS DERIVED
FROM SUCH SALE SHALL BE DEPOSITED AS  PROVIDED  IN
SECTION  39  OF THIS ACT. UNTIL THE EFFECTIVE DATE
OF TRANSFER OF OWNERSHIP OF THE OFF-TRACK  BETTING
SYSTEM, THE executive director shall establish and
conduct systems of off-track betting on races held
within  or  without  the  state  pursuant  to  the
provisions of this chapter. It is hereby  declared
that  off-track  betting  on races conducted under
the administration OR REGULATORY AUTHORITY of  the
division   in   the  manner  and  subject  to  the
conditions  of  this  chapter  shall   be   lawful
notwithstanding  the  provisions of any other law,
general, special or municipal, including  any  law
prohibiting  or  restricting lotteries, bookmaking
or any  other  kind  of  gambling,  it  being  the
purpose  of  this  chapter  to  derive  from  such
betting,  as  authorized  by   this   chapter,   a
reasonable   revenue  for  the  support  of  state
government  and  to  prevent  and  curb   unlawful
bookmaking and illegal betting on races.
    (b)   [The]   UNTIL   THE  EFFECTIVE  DATE  OF
TRANSFER OF OWNERSHIP  OF  THE  OFF-TRACK  BETTING
SYSTEM,  THE  executive  director, with the advice
and consent of the board, shall  adopt  rules  and
regulations,   consistent   with   this   chapter,
establishing and governing the permitted method or
methods  of  operation  of the system of off-track
betting.
    Sec.  30.  Section  12-571a  of  the  general
statutes  is  repealed   and   the  following  is
substituted in lieu thereof:
    (a)  The  division  of special revenue and the
gaming policy board shall not operate or authorize
the  operation  of  more  than  eighteen off-track
betting  branch  facilities,   except   that   the
division  and  the  board may operate or authorize
the operation of any  off-track  betting  facility
approved  prior  to  December  31,  1986,  by  the
legislative body of a municipality  in  accordance
with   subsection   (a)  of  section  12-572.  Any
facility approved  prior  to  December  31,  1986,
shall  be  included  within  the  eighteen  branch
facilities authorized by this subsection.
    (b)  The  eighteen  off-track  betting  branch
facilities authorized by subsection  (a)  of  this
section  may  include  four  facilities which have
screens for the simulcasting of off-track  betting
race  programs  and other amenities including, but
not  limited  to,  restaurants  and   concessions,
provided,   on  and  after  June  19,  1992,  such
facilities shall be located in the town  and  city
of  New  Haven,  the town of Windsor Locks, within
the dog race track in the town of  Plainfield  and
within  the  fronton or dog race track in the town
and city of Bridgeport, provided no  [other]  SUCH
facility  EQUIPPED  WITH  SCREENS FOR SIMULCASTING
shall be within thirty-five miles of the  location
of  the  teletheater in the town of Windsor Locks.
Each such facility located within a fronton  or  a
dog  race  track shall be operated by the state OR
BY A LICENSEE AUTHORIZED TO OPERATE THE  OFF-TRACK
BETTING SYSTEM in conjunction with the licensee of
such fronton  or  dog  race  track  and  all  such
facilities  within  a  fronton or a dog race track
shall  be  operated  in  substantially  the   same
manner.  The  location of each such facility shall
be [determined] APPROVED by the executive director
with  the  consent  of the gaming policy board and
shall be subject to  the  prior  approval  of  the
legislative   body  of  the  town  in  which  such
facility is proposed to be located.  The  division
shall   report  annually  to  the  joint  standing
committee   of   the   general   assembly   having
cognizance   of   matters  relating  to  legalized
gambling on the status  of  the  establishment  or
improvement   of   the  off-track  betting  branch
[office] facility pursuant to this subsection.
    (c)  The  division  and  board  OR  A LICENSEE
AUTHORIZED TO OPERATE THE OFF-TRACK BETTING SYSTEM
may  operate  any  off-track betting branch office
facilities not  operated  in  the  manner  of  the
facilities  operated  under subsection (b) of this
section as  facilities  which  have  monitors  for
off-track  betting  information, bench seating and
adequate public rest room facilities for patrons.
    Sec.   31.   Section  12-572  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  The  executive  director, with the advice
and  consent  of  the  board,  may  establish   OR
AUTHORIZE  THE  ESTABLISHMENT  OF  such  off-track
betting facilities throughout the  state  for  the
purpose of receiving moneys wagered on the results
of  races  as  he  shall  deem  will   serve   the
convenience  of  the  public  and  provide maximum
economy and efficiency of operation, provided  the
establishment   of   such   a   facility   in  any
municipality for the purpose of  receiving  moneys
on  the  results  of races shall be subject to the
approval  of  the   legislative   body   of   such
municipality  which  shall  be  given only after a
public hearing on the  same.  [Moneys]  UNTIL  THE
EFFECTIVE  DATE  OF  TRANSFER  OF OWNERSHIP OF THE
OFF-TRACK BETTING SYSTEM, MONEYS received at  such
facilities  shall  be  deposited in a betting fund
from which daily payments, in such amount  as  the
executive director deems suitable, shall be made.
    (b)  The executive director, with the approval
of the board, is authorized to contract  with  any
person  or  business  organization to provide such
facilities, components, goods or services  as  may
be  necessary  for  the  effective operation of an
off-track betting system.  Compensation  for  such
facilities, components, goods or services shall be
deducted from  the  moneys  retained  pursuant  to
subsections  (c)  and  (d) OF THIS SECTION in such
amount as the executive director shall determine.
    (c)  The  division  or  any person or business
organization operating an off-track betting system
shall   distribute   all   sums   deposited  in  a
pari-mutuel  pool,  to  the  holders  of   winning
tickets  therein,  less  seventeen per cent of the
total deposits of such pool plus the  breakage  to
the  dime  of  the  amount  so retained, except as
provided in subsection (d) OF THIS SECTION.
    (d)  (1)  If  the  multiple  forms of wagering
known as daily double,  exacta  and  quinella  are
permitted by the board, the division or any person
or business organization operating  the  off-track
betting system shall distribute all sums deposited
in the pari-mutuel pool for any such event to  the
holders  of winning tickets therein, less nineteen
per cent of the total deposits in such  pool  plus
the breakage to the dime.
    (2)  If multiple forms of wagering on three or
more animals  are  permitted  by  the  board,  the
division  or  such person or business organization
operating an off-track betting system, may  retain
up  to  twenty-five  per  cent  of  the total sums
deposited in the pool for  such  event,  plus  the
breakage  to  the dime, the exact percentage to be
established by the  board,  provided  in  no  case
shall   the   percentage  retained  be  less  than
seventeen per cent.
    (e)  The  division  or  any person or business
organization operating an off-track betting system
and  conducting  wagering on racing events held in
this state and licensed under  the  provisions  of
this  chapter  shall distribute all sums deposited
in a pari-mutuel pool to the  holders  of  winning
tickets  therein,  less the same percentage of the
total deposits of such  pool  applicable  to  such
racing events plus the breakage to the dime of the
amount retained by each  licensee  conducting  the
racing events.
    (f)  Any person or business organization which
has entered into a contract with the state, acting
through   the   executive   director   under   the
provisions of  subsection  (b)  OF  THIS  SECTION,
except  a contract with an individual for personal
services, may, in the event of any disputed claims
under  such  contract, bring an action against the
state to  the  superior  court  for  the  judicial
district  of Hartford-New Britain* for the purpose
of having such claims determined, provided  notice
of  the  general  nature of such claims shall have
been given in writing to the  division  not  later
than  one  year  after  the  termination  of  such
contract. No action shall be  brought  under  this
section  later  than  three years from the date of
termination of the contract. Such action shall  be
tried   to  the  court  without  a  jury.  Damages
recoverable in such action shall not  include  any
amount  attributable  to  anticipated  profits but
shall be limited to the recovery of actual damages
sustained  arising out of such contract. All legal
defenses except  governmental  immunity  shall  be
reserved to the state.
    (g)  The  division  or  any person or business
organization  operating   an   off-track   betting
system,  with  the  approval  of  the  board,  may
combine  wagers  placed  within   such   off-track
betting  system with similar wagering pools at the
facility  where  a   racing   program   is   being
conducted,  regardless of whether such facility is
located  within  or  without   the   state.   Such
pari-mutuel  wagers shall be combined in such form
and manner as the executive director may determine
to  be  in  the  best  interests  of the off-track
betting  system  established   pursuant   to   the
provisions   of  section  12-571,  AS  AMENDED  BY
SECTION  29  OF  THIS  ACT.  Notwithstanding   the
provisions  of  subsection  (c)  or  (d)  of  this
section to  the  contrary,  the  division  or  any
person   or  business  organization  operating  an
off-track betting system and  conducting  wagering
on racing events held without this state, with the
approval of  the  board,  may  distribute  to  the
holders  of winning tickets who have placed wagers
in  said  combined  pools  such  sums  as  may  be
deposited in said combined pari-mutuel pools, less
the same percentage of the total deposits of  such
combined  pools  as is established at the facility
where such racing program is  conducted  plus  the
breakage  to  the  dime, as shall be determined by
the executive director with the  approval  of  the
board.
    Sec.   32.   Section  12-573  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    [From]  UNTIL  THE  EFFECTIVE DATE OF TRANSFER
OF OWNERSHIP OF THE OFF-TRACK BETTING SYSTEM,  AND
FROM  time  to  time  the executive director shall
estimate, and certify  to  the  comptroller,  that
portion  of  the balance in the betting fund which
is in excess of the current needs of the  division
for  the  payment of prizes and for the payment of
compensation under section 12-572, AS  AMENDED  BY
SECTION  31  OF THIS ACT. Upon receipt of any such
certification, the amount so  certified  shall  be
transferred  from  the betting fund to the general
fund.
    Sec.   33.   Section  12-574  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (a)  No  person  or  business organization may
conduct  a  meeting  at  which   racing   or   the
exhibition of jai alai is permitted for any stake,
purse or reward OR OPERATE THE  OFF-TRACK  BETTING
SYSTEM unless such person or business organization
is licensed as  an  association  licensee  by  the
board.  Any  such licensee authorized to conduct a
meeting OR OPERATE THE  OFF-TRACK  BETTING  SYSTEM
shall  indemnify  and  save  harmless the state of
Connecticut against any and all  actions,  claims,
and  demands  of whatever kind or nature which the
state  may  sustain  or  incur  by  reason  or  in
consequence of issuing such license.
    (b)  [After  July  1,  1980,  no]  NO business
organization,  other  than  a  shareholder  in   a
publicly  traded corporation, may exercise control
in or over an  association  licensee  unless  such
business  organization is licensed as an affiliate
licensee by the board.
    (c)  No  person  or  business organization may
operate any concession at  any  meeting  at  which
racing  or the exhibition of jai alai is permitted
or any concession which is allied to an  off-track
betting  facility  unless  such person or business
organization  is  licensed  as  a   concessionaire
licensee by the executive director.
    (d)  [After  July  1,  1980,  no] NO person or
business organization awarded the primary contract
by  the  state  OR  BY  AN ASSOCIATION LICENSEE to
provide facilities, components, goods or  services
which  are  necessary  for  the  operation  of the
activities  authorized  by   the   provisions   of
sections  12-568 and 12-572, AS AMENDED BY SECTION
31 OF THIS ACT, may do so unless  such  person  or
business  organization  is  licensed  as  a vendor
licensee by the executive director.
    (e)  [After  July  1,  1980,  no] NO person or
business  organization  may  provide   totalizator
equipment and services to any association licensee
for the operation of a pari-mutuel  system  unless
such  person  or business organization is licensed
as  a  totalizator  licensee  by   the   executive
director.
    (f)  [After  July  1,  1980,  no]  NO business
organization,  other  than  a  shareholder  in   a
publicly  traded corporation, may exercise control
in or over a concessionaire, vendor or totalizator
licensee  unless  such  business  organization  is
licensed as an affiliate licensee by the executive
director.
    (g)  No  person  may participate in this state
in any activity permitted under this chapter as an
employee   of   an   association,  concessionaire,
vendor, totalizator or affiliate  licensee  unless
such   person   is  licensed  as  an  occupational
licensee  by  the  executive   director.   Whether
located  in  or  out  of  this  state  no officer,
director, partner, trustee or owner of a  business
organization which obtains a license in accordance
with this section may continue  in  such  capacity
unless such officer, director, partner, trustee or
owner is licensed as an occupational  licensee  by
the  executive  director.  An occupational license
shall also be obtained  by  any  shareholder,  key
executive,  agent  or  other person connected with
any    association,    concessionaire,     vendor,
totalizator  or  affiliate  licensee,  who  in the
judgment of the executive director  will  exercise
control  in or over any such licensee. Such person
shall apply for a license not  later  than  thirty
days after the executive director requests him, in
writing, to do so. The  executive  director  shall
complete  his investigation of an applicant for an
occupational license and notify such applicant  of
his  decision  to  approve or deny the application
within one year after its receipt. Such period may
be  extended  by  the board upon a showing of good
cause by the executive director, after giving  the
applicant  a  reasonable opportunity for a hearing
before the board.
    (h)  [After July 1, 1980: (1)] If any business
organization qualifies to be licensed either as an
affiliate  of  an  association  licensee  or  as a
concessionaire, such business  organization  shall
be licensed as an affiliate licensee by the board.
[; (2) if] IF any business organization  qualifies
to  be  licensed  either  as  an  affiliate  of  a
concessionaire licensee or  as  a  concessionaire,
such business organization shall be licensed as an
affiliate licensee by the executive director.
    (i)  In determining whether to grant a license
the board or the executive  director  may  require
the   applicant   to  submit  information  as  to:
Financial standing and  credit;  moral  character;
criminal  record,  if  any;  previous  employment;
corporate,     partnership     or      association
affiliations;  ownership  of  personal assets; and
such other information as it or he deems pertinent
to  the  issuance  of  such license. The executive
director may reject for good cause an  application
for  a  license, and he, [or] the deputy executive
director, [or] THE EXECUTIVE ASSISTANT,  any  unit
head  OR ANY ASSISTANT UNIT HEAD authorized by the
executive director may suspend or revoke for  good
cause  any  license  issued by him after a hearing
held in accordance with chapter 54.  In  addition,
if   any   affiliate   licensee  licensed  by  the
executive  director  fails  to  comply  with   the
provisions of this chapter the executive director,
after a hearing held in  accordance  with  chapter
54,  may  revoke or suspend the license of any one
or  more  of  the  following  related   licensees:
Concessionaire,  vendor  or  totalizator,  and may
fine any one or  more  of  said  licensees  in  an
amount  not  to  exceed  two thousand five hundred
dollars. Any licensee whose license  is  suspended
or  revoked,  or  any  applicant  aggrieved by the
action of the  executive  director  concerning  an
application  for  a  license  may appeal not later
than fifteen days after such decision to the board
in accordance with subsection (j) OF THIS SECTION.
    (j)  The  executive  director, with the advice
and consent of the board shall  adopt  regulations
governing  the  operation of the OFF-TRACK BETTING
SYSTEM AND FACILITIES,  tracks,  stables,  kennels
and  frontons, including the regulation of betting
in connection therewith, to insure  the  integrity
and  security  of  the conduct of meetings AND THE
BROADCAST OF RACING EVENTS held pursuant  to  this
chapter.  Such regulations shall include provision
for the imposition  of  fines  and  suspension  of
licenses  for  violations  thereof.  Prior  to the
adoption  of  any   regulations   concerning   the
treatment  of  animals  at any dog race track, the
executive  director  shall  notify  the   National
Greyhound  Association  of  the  contents  of such
regulations and of its right to request a  hearing
pursuant  to  chapter 54. The board shall have the
authority to impose a fine of up  to  seventy-five
thousand   dollars   for  any  violation  of  such
regulations by a licensee authorized to conduct  a
meeting  OR  OPERATE  THE OFF-TRACK BETTING SYSTEM
under this section  and  a  fine  of  up  to  five
thousand   dollars   for  any  violation  of  such
regulations by any other licensee.  The  executive
director shall have the authority to impose a fine
of up to two thousand five hundred dollars for any
such violation by any licensee licensed by him and
the stewards or judges  of  a  meeting  acting  in
accordance  with  such  regulations shall have the
authority to impose a fine of up to  five  hundred
dollars  for  any such violation by such licensee,
and the players' manager of a jai alai  exhibition
acting  in  accordance with such regulations shall
have the authority to recommend to the judges that
a  fine  should be considered for a player who may
have violated  such  regulations.  The  board  may
delegate  to  the stewards and judges of a meeting
the  power  to  suspend   the   license   of   any
occupational licensee employed in this state by an
association licensee for a period  not  to  exceed
sixty  days for any violation of such regulations.
If any license is  suspended,  such  stewards  and
judges  of  a  meeting  shall  state  the  reasons
therefor in writing. All fines imposed pursuant to
this  section  shall  be  paid over to the general
fund upon receipt by the division. Any  person  or
business  organization  fined  or  suspended by an
authority other than the board or any licensee  or
applicant for a license aggrieved by a decision of
the executive director under subsection (i)  shall
have a right of appeal to the board for a hearing.
All hearings, other than appellate hearings before
the  board, shall be conducted pursuant to chapter
54. Any person or business organization  aggrieved
by  a  decision of the board shall have a right of
appeal pursuant to section 4-183.
    (k)  The  executive  director  shall  have the
power to require that the books and records of any
licensee,  other  than  an  occupational licensee,
shall be maintained in any  manner  which  he  may
deem   best,  and  that  any  financial  or  other
statements based on such books and  records  shall
be  prepared in accordance with generally accepted
accounting principles in such  form  as  he  shall
prescribe.  The executive director or his designee
shall also be authorized to visit, to  investigate
and  to  place  expert  accountants and such other
persons as he may deem necessary, in the  offices,
tracks,  frontons, OFF-TRACK BETTING FACILITIES or
places of business of any such licensee,  for  the
purpose  of satisfying himself that the division's
regulations are strictly complied with.
    (l)  The  executive  director  may at any time
for good cause require the removal of any employee
or official employed by any licensee hereunder.
    (m)  The  board shall have the right to reject
any application for a license for good  cause  and
the  action of the board as to the license and the
meeting dates assigned shall  be  final,  provided
any  person  or business organization aggrieved by
the action of the board concerning an  application
for   a   license  may  appeal  such  decision  in
accordance with section 4-183. The board shall, as
far  as  practicable, avoid conflicts in the dates
assigned for racing or the exhibition of the  game
of  jai  alai  in  the  state. Any license granted
under  the  provisions  of  this  chapter   is   a
revocable  privilege  and  no  licensee  shall  be
deemed to have acquired any vested rights based on
the  issuance  of  such  license. Any such license
shall be subject to the regulations set  forth  by
the executive director with the advice and consent
of the board. Any  license  issued  by  the  board
shall  be  subject to suspension or revocation for
good cause, after giving the licensee a reasonable
opportunity  for  a  hearing  before the board, at
which he shall have the right to be represented by
counsel.  In  addition,  if any affiliate licensee
licensed by the board fails  to  comply  with  the
provisions  of  this  chapter  the  board, after a
hearing held in accordance with  chapter  54,  may
revoke  or  suspend  the  license  of  the related
association licensee  and  may  fine  the  related
association  licensee  in  an amount not to exceed
seventy-five thousand  dollars  or  both.  If  any
license  is  suspended  or revoked the board shall
state  the  reasons   for   such   suspension   or
revocation  and  cause an entry of such reasons to
be made on the record  books  of  the  board.  Any
licensee  aggrieved by the action of the board may
appeal therefrom in accordance with section 4-183.
    (n)  The  appropriate licensing authority may,
on its own motion or upon application, exempt  any
person or business organization from the licensing
requirements of this chapter or some or all of the
disclosure   requirements  of  chapter  226b.  The
appropriate licensing  authority,  in  making  its
determination,    shall   consider   whether   the
applicant  seeking  the  exemption  will  exercise
control  in or over an activity which is ancillary
to and  not  an  integral  part  of  any  activity
authorized  under  this  chapter.  The  burden  of
proving that an exemption should be granted  rests
solely with the applicant. The licensing authority
making the determination may  limit  or  condition
the  terms  of an exemption and such determination
shall be final.
    (o)  Any  person  aiding  or  abetting  in the
OPERATION OF AN OFF-TRACK BETTING  SYSTEM  OR  THE
conduct  of any meeting within this state at which
racing or the exhibition of the game of  jai  alai
shall be permitted for any stake, purse or reward,
except in accordance with a  license  duly  issued
and  unsuspended  or unrevoked by the board or the
executive director, shall be guilty of a  class  A
misdemeanor.
    (p)  The  majority  of  the  membership of the
board of directors of any corporation licensed  to
OPERATE THE OFF-TRACK BETTING SYSTEM OR TO hold or
conduct  any   meeting   within   the   state   of
Connecticut  at  which racing or the exhibition of
the game of jai alai shall be  permitted  for  any
stake,  purse or reward, shall be residents of the
state of Connecticut.
    (q)  Any  license  granted  under this section
other than a license issued by the board shall  be
effective for not more than one year from the date
of issuance. Initial application for  and  renewal
of any license shall be in such form and manner as
the  executive  director  shall,   by   regulation
adopted  with the advice and consent of the board,
prescribe.
    (r)   Any   person  or  business  organization
issued a  license  to  conduct  dog  racing  shall
establish  a  pet  adoption program for the proper
housing and care of retired greyhounds  and  shall
provide financial support for such program and any
facility operated to implement such program.
    (s)   Any   person  or  business  organization
issued a license to conduct dog racing pursuant to
subsection  (c)  of  section  12-574c shall employ
persons  who,  at  the  time  of  employment,  are
recipients  of assistance under chapter 302 or 308
to fill not less  than  twenty  per  cent  of  the
positions  created by the conversion of a jai alai
fronton to a dog race track if such  persons  have
been  trained  for  such  employment  by public or
publicly-funded agencies in coordination with such
licensee.
    (t)   Any   person  or  business  organization
issued a license to conduct dog racing pursuant to
subsection (c) of section 12-574c shall provide an
on-site day care facility for use by employees  of
the  dog  race  track.  Such licensee shall employ
persons  who,  at  the  time  of  employment,  are
recipients of aid under chapter 302 or 308 to fill
not less than fifty per cent of the  positions  at
such  day  care facility if such persons have been
trained  for  such   employment   by   public   or
publicly-funded agencies in coordination with such
licensee.
    (u)  Notwithstanding  any  other provisions of
this  chapter  to  the  contrary,  any  person  or
business  organization issued a license to conduct
dog racing may operate on a year-round  basis  and
may  conduct such number of performances as it may
elect,  provided  the   total   number   of   such
performances  does  not  exceed  five  hundred and
eighty performances in any calendar year.
    Sec.   34.  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, AS AMENDED BY SECTION 33  OF  THIS
ACT,  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  THE  EFFECTIVE  DATE  OF THIS
SECTION.
    (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  [vendor  licensee awarded the primary
contract by the state to provide such  facilities,
components,  goods or services as may be necessary
for  the  effective  operation  of  an   off-track
betting  system  pursuant  to  the  provisions  of
subsection  (b)  of   section   12-572]   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  [vendor]  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 [vendor]  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  [vendor]  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.   35.   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,
[or] 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   [conducted]
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, AS AMENDED BY
SECTION 30  OF  THIS  ACT,  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 [conducting such
an event] 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;  until  June  30,  1994,  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,
and on and after July 1, 1994, each such  licensee
shall  distribute  all such sums less eighteen per
cent of the total deposits plus  the  breakage  to
the dime of the amount so retained; and until June
30, 1994,  each  licensee  conducting  dog  racing
events  shall distribute all sums deposited in any
pari-mutuel program  to  the  holders  of  winning
tickets  therein,  less  nineteen  per cent of the
total deposits plus the breakage to  the  dime  of
the amount so retained, provided that on and after
July 1, 1987, each licensee conducting dog  racing
shall  allocate three and one-half 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,
replacements,   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 give-aways and provided further
that on and after  July  1,  1992,  each  licensee
conducting  dog  racing  events  on  July 5, 1991,
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, and 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   give-aways.   Each   licensee
conducting dog racing events shall, on a quarterly
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 seven and one-quarter 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, 1992, in the
case of any licensee licensed  prior  to  July  5,
1991,  (i)  a  tax at the rate of five per cent on
any amount up to and including twenty-five 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
six   per   cent   on  any  amount  in  excess  of
twenty-five  million  dollars  and   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,  (iii)  a
tax at the rate of seven 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,  (iv)  a
tax  at the rate of seven and one-half per cent on
any amount in excess of eighty million dollars and
up  to  and  including  one  hundred  five 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 (v) a tax at the rate
of eight and one-half per cent on  any  amount  in
excess  of one hundred five 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  tax
at  the rate of six and three-quarters per cent on
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.
    [(g)]  (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,   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.
    [(h)]  (i) The executive director shall devise
a system of accounting and shall supervise betting
at  such  track, [or] 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.
    [(i)]  (j)  The amount of unclaimed moneys, as
determined by the executive director, held by  any
licensee  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, 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.
    [(j)]   (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,  [or]  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.
    [(k)]  (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.
    [(l)]  (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, [and] 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.   36.   Section  12-575  of  the  general
statutes, as amended by section 35 of this act, 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; [until June  30,  1994,]  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; [,
and on and after July 1, 1994, each such  licensee
shall  distribute  all such sums less eighteen per
cent of the total deposits plus  the  breakage  to
the dime of the amount so retained; and until June
30, 1994,] each  licensee  conducting  dog  racing
events  shall distribute all sums deposited in any
pari-mutuel program  to  the  holders  of  winning
tickets  therein,  less [nineteen] TWENTY per cent
of the total deposits plus  the  breakage  to  the
dime  of the amount so retained, provided [that on
and after July 1, 1987, each  licensee  conducting
dog  racing  shall allocate three and one-half 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,
replacements,   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 give-aways and provided further
that] on and after July  1,  1992,  each  licensee
conducting  dog  racing  events  on  July 5, 1991,
[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, and] 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   give-aways.   Each   licensee
conducting dog racing events shall, on a quarterly
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 [seven and one-quarter] 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, [1992]
1993, in the case of any licensee  licensed  prior
to  July  5, 1991, (i) a tax at the rate of [five]
TWO per cent on any amount  up  to  and  including
[twenty-five  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 six per cent on any amount in
excess of twenty-five million dollars  and  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,  [(iii)]
(ii)  a  tax at the rate of [seven] 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  [,  (iv)]  AND  (iii) a tax at the rate of
[seven and one-half] FOUR per cent on  any  amount
in excess of eighty million dollars [and up to and
including one hundred five 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 (v) a tax at the rate of eight  and  one-half
per  cent  on  any amount in excess of one hundred
five 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 [six and three-quarters] 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, 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 AUTHORIZED TO
OPERATE 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,  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.   37.   Each   permanent  state  employee
displaced by the sale  of  the  off-track  betting
system  shall be offered by order of seniority, as
determined pursuant to his  collective  bargaining
agreement  or  applicable statutes, any vacancy in
state  service  for  which   the   department   of
administrative  services  determines such employee
is qualified to fill.  Each  such  employee  shall
submit a standard state application for employment
to said department which will determine the  class
each  employee  is  qualified  to  fill. The class
determination shall be forwarded to  the  employee
and  all  agencies  in  state  service,  who  will
contact  employees  by  order  of  seniority.   No
vacancy existing in a state service class shall be
filled as of the effective date of  this  section,
until a determination of qualification is made for
each such employee who is still displaced  at  the
time   such  vacancy  is  to  be  filled  and,  if
appropriate, an offer of employment has been  made
to  each  such  employee.  The  provisions of this
section  shall   apply   until   said   department
certifies to all state agencies that the rights of
all such employees have been satisfied or June 30,
1994, whichever is earlier. The provisions of this
section shall not apply to any such  employee  who
is made an offer of employment by the state within
a radius of twenty-five miles from the location of
his  place  of  employment  at  the  time  of  his
displacement.
    Sec.   38.   Section   7-175  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    Permits   under  the  provisions  of  sections
7-170 to  7-186,  inclusive,  shall  be  of  seven
kinds.  "Class  No.  1"  permits  shall  allow the
operation of a raffle which shall  be  consummated
within  three months of the granting of the permit
and the aggregate value of  the  prize  or  prizes
offered  shall  be  not more than fifteen thousand
dollars. "Class No. 2"  permits  shall  allow  the
operation  of  a raffle which shall be consummated
within two months of the granting  of  the  permit
and  the  aggregate  value  of the prize or prizes
offered  shall  be  not  more  than  two  thousand
dollars.  "Class  No.  3" permits shall permit the
operation of a bazaar for a  period  of  not  more
than   ten   consecutive   days,  excluding  legal
holidays and holy days on which the bazaar is  not
functioning.  Any  bazaar held under the authority
of any such permit shall be held within six months
of  the  granting  of  such  permit. "Class No. 4"
permits shall allow  the  operation  of  a  raffle
which shall be consummated within one month of the
granting of the permit and the aggregate value  of
the prize or prizes offered shall be not more than
one hundred dollars. "Class No. 5"  permits  shall
allow  the  operation  of  a raffle which shall be
consummated within six months of the  granting  of
the permit and the aggregate value of the prize or
prizes  offered  shall  be  not  more  than  fifty
thousand  dollars.  "Class  No.  6"  permits shall
allow the operation of a  raffle  which  shall  be
consummated  within nine months of the granting of
the permit and the aggregate value of the prize or
prizes  offered shall be not more than one hundred
thousand dollars.  "Class  No.  7"  permits  shall
allow  the  operation  of  a raffle which shall be
consummated within fifteen months of the  granting
of  the  permit,  shall  allow no more than twelve
prize drawings on separate dates and the aggregate
value  of the prize or prizes offered shall be not
more than fifty thousand dollars. No more than one
"Class  No.  1"  permit,  [one]  TWO "Class No. 3"
[permit] PERMITS, one "Class No.  4"  permit,  one
"Class  No. 5" permit, one "Class No. 6" permit or
three "Class No. 2" permits shall be issued to any
qualifying  organization  within  any one calendar
year. The aggregate value of prizes offered  under
any  of  such  permits  shall represent the amount
paid by the applicant for the prize or  prizes  or
the retail value of the same if donated.
    Sec.  39.  (a)  All  moneys  received from the
sale of the off-track betting system  pursuant  to
the  provisions  of  section 12-571 of the general
statutes, as amended by section 29  of  this  act,
shall  be  deposited  in  the general fund, except
that the treasurer  shall  deposit  seven  million
dollars  in  an  off-track  betting account, which
shall be a separate nonlapsing account within  the
general fund.
    (b)  On  July  1,  1994,  the  balance  of the
off-track betting account shall be transfered from
such account to the general fund.
    Sec.  40.  Subsection (1) of section 12-411 of
the general statutes is repealed and the following
is substituted in lieu thereof:
    (1)  An  excise  tax  is hereby imposed on the
storage, acceptance, consumption or any other  use
in  this  state  of  tangible  personal  property,
EXCLUSIVE OF MAIL ORDER PURCHASES FROM A  RETAILER
OUTSIDE  OF  THIS  STATE  THE COST OF WHICH TO THE
PURCHASER  IS  TWO  HUNDRED   DOLLARS   OR   LESS,
purchased   from   any   retailer   for   storage,
acceptance, consumption or any other use  in  this
state,  the  acceptance or receipt of any services
constituting   a   sale   in    accordance    with
subdivisions  (i) to (l), inclusive, of subsection
(2) of section 12-407, or the storage, acceptance,
consumption  or  any  other  use  in this state of
tangible  personal   property   which   has   been
manufactured,  fabricated,  assembled or processed
from materials  by  a  person,  either  within  or
without   this  state,  for  storage,  acceptance,
consumption or any other use  by  such  person  in
this  state,  at  the  rate of six per cent of the
sales price of the property or  the  consideration
paid  for  any  such  services, except, in lieu of
said rate of six per cent, (A) at a rate  of  five
and  one-half  per  cent of the sales price of any
repair or replacement parts exclusively for use in
machinery,   as  defined  in  subsection  (34)  of
section 12-412, used directly in  a  manufacturing
or  agricultural production process, (B) at a rate
of four and one-half per cent of the  sales  price
of  any  motor vehicle sold to any person who is a
member of the armed forces of  the  United  States
and is on full-time active duty in Connecticut but
whose permanent residence is in another state, (C)
at  a rate of twelve per cent of the rent paid for
occupancy of any room  or  rooms  in  a  hotel  or
lodging   house   for  the  first  period  of  not
exceeding thirty consecutive  calendar  days,  and
(D)  with  respect  to  the  storage,  acceptance,
consumption  or  use  in  this  state  of  vessels
purchased   from   any   retailer   for   storage,
acceptance, consumption or any other use  in  this
state  by any resident of another state, at a rate
which is the lesser of: (i) Six per  cent  of  the
sales price thereof or (ii) the percentage of such
sales price that  is  payable  as  a  use  tax  by
purchasers  making  purchases  in  the purchaser's
state of residence, provided the retailer requires
and  maintains  an  affidavit  or  other evidence,
satisfactory to the commissioner,  concerning  the
purchaser's state of residence.
    Sec.  41.  Section   12-572a  of  the  general
statutes is repealed.
    Sec. 42. This  act  shall take effect from its
passage, except sections  21, 24 and 36 shall take
effect July 1,  1993,  and provided (1) sections 1
to 3, inclusive,  sections  23, 28 and 40 shall be
applicable to sales  occurring on or after July 1,
1993, (2) sections  6,  9, 12, 15, 16 and 27 shall
be applicable to  taxable  years  commencing on or
after January 1, 1993, (3) sections 7 and 10 shall
be applicable to  sales occurring on or after July
1, 1993, (4) sections 8 and 11 shall be applicable
to taxes due  and  payable  on or after January 1,
1994, (5) section  13  shall  be applicable to any
tax payments or  estimated  tax payments due on or
after July 1,  1993,  (6)  sections  14, 20 and 25
shall be applicable to sales occurring on or after
January 1, 1994,  and  (7)  section  26  shall  be
applicable to sales  occurring on or after January
1, 1995.

Approved June 25, 1993