Connecticut Seal

General Assembly

 

Raised Bill No. 7319

January Session, 2017

 

LCO No. 6107

 

*06107_______FIN*

Referred to Committee on FINANCE, REVENUE AND BONDING

 

Introduced by:

 

(FIN)

 

AN ACT CONCERNING A REQUEST FOR PROPOSALS FOR A CASINO GAMING FACILITY IN THE STATE.

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

Section 1. (Effective from passage) (a) Not later than January 1, 2018, the Commissioners of Consumer Protection and Economic and Community Development shall jointly develop and issue a request for proposals to select an individual, a business organization or an Indian tribe to develop, manage, operate and maintain a possible casino gaming facility in the state. The request for proposals shall require a responder to:

(1) Provide a market analysis detailing the benefits of the proposed casino gaming facility and the potential impacts on the municipality in which the proposed casino gaming facility may be located and on the surrounding region and the state. The market analysis shall include, but not be limited to, (A) the economic impact on the municipality and the surrounding region, (B) costs to and social, environmental, traffic and infrastructural impacts on the municipality and the surrounding region, (C) the impact of the proposed casino gaming facility on the existing casino gaming facilities in the state, (D) an estimate of the number of employees to be employed at the proposed casino gaming facility, including information regarding the pay rate and benefits for such employees and a statement of whether the responder has a contract with organized labor and has the support of organized labor for the responder's proposal, and (E) a plan to attract both residents and tourists to the proposed casino gaming facility;

(2) Submit (A) a development agreement entered into by the responder with a municipality regarding the establishment of the proposed casino gaming facility in the municipality, provided such development agreement (i) requires the responder to make an annual payment to the municipality in an amount not less than eight million dollars if and when the proposed casino gaming facility becomes operational, and (ii) was approved, notwithstanding the provisions of any municipal charter, special act or ordinance, by a referendum of the municipality, and (B) a plan for revenue sharing with municipalities adjoining the municipality in which the proposed casino gaming facility may be located;

(3) Provide information and documentation to demonstrate that the responder has sufficient business ability, experience and financial stability to develop, manage, operate and maintain the proposed casino gaming facility;

(4) Demonstrate the responder's ability to pay a nonrefundable licensing fee of fifty million dollars and agree to pay such fee, if the responder is selected to develop, manage, operate and maintain a casino gaming facility in the state, prior to the beginning of construction;

(5) Agree to make a total investment of not less than five hundred million dollars in the proposed casino gaming facility;

(6) Agree to pay to the state thirty-five per cent of the gross gaming revenue from the operation of (A) video slot machines, if any, at the proposed casino gaming facility, and (B) all other games at the proposed casino gaming facility;

(7) Submit the designs for the proposed casino gaming facility and a timeline for its construction;

(8) Describe the type and number of games to be conducted at the proposed casino gaming facility;

(9) Describe a process to maximize the use of small contractors and minority business enterprises, as both terms are defined in section 4a-60g of the general statutes, and veteran-owned micro businesses, as defined in subsection (c) of section 4a-59 of the general statutes, and agree to set aside, for award to small contractors, minority business enterprises and veteran-owned micro businesses, at least twenty-five per cent of the total value of all contracts it awards to build the proposed casino gaming facility;

(10) Submit a plan to mitigate the potential negative public health consequences associated with gambling and the operation of the proposed casino gaming facility;

(11) Provide a plan to protect off-track betting facilities throughout the state from any adverse impacts due to the operation of the proposed casino gaming facility;

(12) Certify that any principal stockholders or members of the responder will submit to the jurisdiction of the courts of this state and that the responder has designated an agent for service of process in the state; and

(13) Provide any other information the commissioners deem necessary to evaluate the qualifications of a responder.

(b) The response shall be accompanied by a fee of fifteen million dollars, which shall be refundable if the responder is not selected by the commissioners to develop, manage, operate and maintain a casino gaming facility in the state or if the General Assembly does not authorize the operation of a casino gaming facility in the state. The commissioners shall waive such fee for any response submitted by the Mashantucket Pequot Tribe or the Mohegan Tribe of Indians of Connecticut.

(c) The responder shall bear the costs incurred by a municipality in connection with the referendum under subparagraph (A)(ii) of subdivision (2) of subsection (a) of this section.

(d) When evaluating the responses submitted, the commissioners shall consider, and shall select the responder that best meets, the following criteria in addition to the requirements set forth in subsection (a) of this section:

(1) The responder has demonstrated it is adequately capitalized to develop, manage, operate and maintain a casino gaming facility of high quality;

(2) The designs and plans submitted by the responder meet the minimum investment level specified in subdivision (5) of subsection (a) of this section;

(3) The responder has a demonstrated history of creating a diverse range of skilled and unskilled permanent jobs, maximizing the creation of new jobs and implementing initial and ongoing workforce development training programs in the development, management and operation of casino gaming facilities. The potential for the creation of new jobs shall be evaluated with consideration given to the forecasted increase in net available jobs in the state after accounting for the potential positive or negative impacts of the proposed casino gaming facility on the existing casino gaming facilities in the state;

(4) The responder has a demonstrated history of excellence in resort design and architecture, including the prevalence of projects that meet or exceed gold certification under the applicable LEED Green Building Rating System, as defined in section 12-217mm of the general statutes, and the designs and plans submitted by the responder reflect the same;

(5) The responder has a demonstrated history of excellence in developing casino gaming facilities with high-quality gaming and nongaming amenities, and the designs and plans submitted by the responder reflect the same;

(6) The responder has a demonstrated history of developing, managing, operating and maintaining casino gaming facilities that match the existing infrastructure capabilities of the areas surrounding such facilities, and the designs and plans submitted by the responder reflect the same;

(7) The responder has a demonstrated history of maximizing revenue generated from out-of-state tourism through the development, management and operation of casino gaming facilities and of securing larger shares of the gaming market, and the designs and plans submitted by the responder reflect the same;

(8) The responder has a demonstrated ability to generate substantial revenues from casino gaming facilities in a competitive environment and under varying economic conditions, and the designs and plans submitted by the responder reflect the same;

(9) The responder owns or has secured the rights to use established or widely recognized casino brand names. For the purposes of this subdivision, brand names associated with the casino gaming facilities owned by the Mashantucket Pequot Tribe or the Mohegan Tribe of Indians of Connecticut shall be considered to be established or widely recognized casino brand names;

(10) The responder or its affiliates, or both, have a demonstrated history of entering into (A) collective bargaining agreements for the management and operation of its casino gaming facilities, and (B) project labor agreements for the development and construction of its casino gaming facilities;

(11) The responder has a demonstrated history of conducting business with small contractors, minority business enterprises and veteran-owned micro businesses; and

(12) The responder has a demonstrated history of coordinating with local and state law enforcement for public safety and security matters, and the designs and plans submitted by the responder reflect the same.

(e) The commissioners shall jointly submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to finance, revenue and bonding, public safety and security and commerce that (1) describes and summarizes the request for proposals and the responses received, (2) identifies the individual, business organization or Indian tribe selected jointly by the commissioners to develop, manage, operate and maintain a proposed casino gaming facility in the state, and (3) demonstrates that such individual, business organization or Indian tribe satisfies the requirements of the request for proposals set forth in subsection (a) of this section and meets the selection criteria set forth in subsection (d) of this section.

(f) No individual, business organization or Indian tribe selected may establish a casino gaming facility in the state until (1) the General Assembly has enacted legislation that provides for the operation of a casino gaming facility and authorizes participation in games at such facility, and such legislation has taken effect, and (2) has paid the nonrefundable licensing fee as set forth in subdivision (4) of subsection (a) of this section.

This act shall take effect as follows and shall amend the following sections:

Section 1

from passage

New section

Statement of Purpose:

To require the Commissioners of Consumer Protection and Economic and Community Development to jointly develop and issue a request for proposals to develop, manage, operate and maintain a possible casino gaming facility in the state.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]