Connecticut Seal

General Assembly

 

Raised Bill No. 5305

February Session, 2018

 

LCO No. 1608

 

*01608_______PS_*

Referred to Committee on PUBLIC SAFETY AND SECURITY

 

Introduced by:

 

(PS)

 

AN ACT CONCERNING A REQUEST FOR PROPOSALS TO QUALIFY AN ENTITY TO DEVELOP 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 ninety days after the effective date of this section, the Commissioners of Consumer Protection and Economic and Community Development shall jointly develop and issue a request for proposals to qualify an individual, a business organization or an Indian tribe to develop, manage and operate a possible casino gaming facility in the state.

(b) The request for proposals shall require a responder to:

(1) Provide an outline of the significant benefits that the proposed casino gaming facility will bring to the municipality in which the proposed casino gaming facility may be located, the surrounding municipalities and the state, and include a marketing and tourism plan;

(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 not later than January 1, 2019, and (B) a plan for revenue sharing with municipalities surrounding the municipality in which the proposed casino gaming facility may be located;

(3) Submit a workforce development agreement entered into by the responder with a municipality regarding the establishment of a regional workforce development center to be located in the municipality for the purposes of training employees of the proposed casino gaming facility;

(4) Submit a market analysis detailing the benefits of the proposed casino gaming facility;

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

(6) 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;

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

(8) Estimate the number of employees, not less than two thousand persons, to be employed at the proposed casino gaming facility and provide information regarding the pay rate and benefits for such employees;

(9) Provide evidence that the responder has a labor neutrality agreement with organized labor for the proposed casino gaming facility;

(10) 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;

(11) Submit a responsible gaming plan associated with the operation of the proposed casino gaming facility;

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

(13) Demonstrate the responder's ability to pay a one-time licensing fee of not less than fifty million dollars for a possible license to operate the proposed casino gaming facility in the state before the commencement of construction of the proposed casino gaming facility;

(14) Agree to pay to the state (A) a minimum of twenty-five per cent of the gross gaming revenue from the operation of all gambling games at the proposed casino gaming facility, and (B) a minimum of ten per cent of the gross gaming revenue from the operation of video slot machine games at the proposed casino gaming facility; and

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

(c) The response shall be submitted by January 1, 2019, and shall be accompanied by a fee of five million dollars, which shall be refundable if (1) the responder is not selected by the commissioners to be qualified and waives the right to challenge the commissioners' decision, or (2) the General Assembly does not authorize the operation of a casino gaming facility in the state.

(d) The commissioners shall develop selection criteria to evaluate responses and may qualify one person, business organization or Indian tribe that submits a response to the request for proposals to develop, manage and operate a possible casino gaming facility in the state.

(e) On or before April 1, 2019, 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 public safety and security and commerce that (1) describes and summarizes the request for proposals, the responses received and the selection criteria, (2) identifies the individual, business organization or Indian tribe selected jointly by the commissioners to be qualified to develop, manage, operate and maintain a proposed casino gaming facility in the state, and (3) demonstrates that such person, business organization or Indian tribe satisfies the requirements of the request for proposal set forth in subsection (b) of this section and meets the selection criteria.

(f) No individual, business organization or Indian tribe selected by the commissioners may operate a casino gaming facility in the state until the General Assembly has enacted legislation to provide for the licensing and operation of a casino gaming facility and such legislation has taken effect.

Sec. 2. Section 12-557b of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

As used in this chapter, sections [12-578a to 12-578e, inclusive,] 12-579 and 12-580 [,] and chapter 226b, [and section 53-278g,] unless the context otherwise requires:

(1) "Commissioner" means the Commissioner of Consumer Protection;

(2) "Department" means the Department of Consumer Protection;

(3) "Business organization" means a partnership, incorporated or unincorporated association, firm, corporation, trust or other form of business or legal entity, other than a financial institution regulated by a state or federal agency which is not exercising control over an association licensee; [, but does not mean a governmental or sovereign entity;] and

(4) "Control" means the power to exercise authority over or direct the management and policies of a person or business organization. [;]

[(5) "Casino gaming facility" means any casino gaming facility authorized by any provision of the general statutes or a public or special act to conduct authorized games on its premises, but does not include any casino gaming facility located on Indian lands pursuant to the Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2701 et seq.;

(6) "Authorized game" means any game of chance specifically authorized to be conducted at a casino gaming facility by any provision of the general statutes or a public or special act; and

(7) "Gross gaming revenue" means the total of all sums actually received by a casino gaming facility from gaming operations less the total of all sums paid as winnings to patrons of the casino gaming facility, provided the total of all sums paid as winnings to such patrons shall not include the cash equivalent value of any merchandise or thing of value included in a jackpot or payout, and provided further the issuance to or wagering by such patrons of any promotional gaming credit shall not be included in the total of all sums actually received by a casino gaming facility for the purposes of determining gross gaming revenue.]

Sec. 3. Section 12-561 of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

No commissioner or unit head or employee of the department shall directly or indirectly, individually or as a member of a partnership or as a shareholder of a corporation, have any interest whatsoever in dealing in any lottery, racing, fronton [,] or betting enterprise [or casino gaming facility] or in the ownership or leasing of any property or premises used by or for any lottery, racing, fronton [,] or betting enterprise. [or casino gaming facility.] No commissioner or unit head shall, directly or indirectly, wager at any off-track betting facility, race track or fronton authorized under this chapter [,] or purchase lottery tickets issued under this chapter. [or play, directly or indirectly, any authorized game conducted at a casino gaming facility.] The commissioner may adopt regulations in accordance with the provisions of chapter 54 to prohibit any employee of the department from engaging, directly or indirectly, in any form of legalized gambling activity in which such employee is involved because of his or her employment with the department. For purposes of this section, "unit head" means a managerial employee with direct oversight of a legalized gambling activity.

Sec. 4. Subsection (a) of section 12-562 of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Except as provided in subsection (b) of this section, the commissioner shall have power to enforce the provisions of this chapter and chapter 226b, and shall adopt all necessary regulations for that purpose and for carrying out, enforcing and preventing violation of any of the provisions of this chapter, for the inspection of licensed premises [,] or enterprises, [or casino gaming facilities,] for insuring proper, safe and orderly conduct of licensed premises [,] or enterprises [or casino gaming facilities] and for protecting the public against fraud or overcharge. The commissioner shall have power generally to do whatever is reasonably necessary for the carrying out of the intent of this chapter; and may call upon other administrative departments of the state government and of municipal governments for such information and assistance as he or she deems necessary to the performance of his or her duties. The commissioner shall set racing and jai alai meeting dates, except that the commissioner may delegate to designated staff the authority for setting make-up performance dates. The commissioner 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.

Sec. 5. Section 12-563a of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

The Commissioner of Consumer Protection shall, within available resources, prepare and distribute informational materials designed to inform the public of the programs available for the prevention, treatment and rehabilitation of compulsive gamblers in this state. The commissioner shall require [any casino gaming facility and] any person or business organization which is licensed to sell lottery tickets, operate an off-track betting system or conduct wagering on racing events or jai alai games, to display such informational materials at [the casino gaming facility and] each licensed premise. [, respectively.]

Sec. 6. Subdivision (2) of subsection (a) of section 12-578 of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(2) Licenses: (A) Owner, one hundred dollars; (B) trainer, one hundred dollars; (C) assistant trainer, one hundred dollars; (D) jockey, forty dollars; (E) jockey agent, for each jockey, one hundred dollars; (F) stable employees, including exercise boy, groom, stable foreman, hot walker, outrider, twenty dollars; (G) veterinarian, one hundred dollars; (H) jockey apprentice, forty dollars; (I) driver, one hundred dollars; (J) valet, twenty dollars; (K) blacksmith, twenty dollars; (L) plater, twenty dollars; (M) concessionaire, for each concession, two hundred fifty dollars; (N) concessionaire affiliate, for each concession of the concessionaire, two hundred fifty dollars; (O) concession employees, twenty dollars; (P) jai alai players, one hundred dollars; (Q) officials and supervisors, one hundred dollars; (R) pari-mutuel employees, forty dollars; (S) other personnel engaged in activities regulated under this chapter, twenty dollars; (T) vendor, for each contract, two hundred fifty dollars; (U) totalizator, for each contract, two hundred fifty dollars; and (V) vendor and totalizator affiliates, for each contract of the vendor or totalizator, two hundred fifty dollars. [; (W) gaming employee, forty dollars; (X) nongaming vendor, two hundred fifty dollars; (Y) gaming services, five hundred dollars; and (Z) gaming affiliate, two hundred fifty dollars.] For the purposes of this subdivision, "concessionaire affiliate" means a business organization, other than a shareholder in a publicly traded corporation, that may exercise control in or over a concessionaire; and "concessionaire" means any individual or business organization granted the right to operate an activity at a dog race track or off-track betting facility for the purpose of making a profit that receives or, in the exercise of reasonable business judgment, can be expected to receive more than twenty-five thousand dollars or twenty-five per cent of its gross annual receipts from such activity at such track or facility.

Sec. 7. Section 53-278g of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) Nothing in sections 53-278a to 53-278f, inclusive, shall be construed to prohibit the publication of an advertisement of, or the operation of, or participation in, a state lottery, pari-mutuel betting at race tracks licensed by the state, off-track betting conducted by the state or a licensee authorized to operate the off-track betting system, [authorized games at a casino gaming facility,] a promotional drawing for a prize or prizes, conducted for advertising purposes by any person, firm or corporation other than a retail grocer or retail grocery chain, wherein members of the general public may participate without making any purchase or otherwise paying or risking credit, money, or any other tangible thing of value or a sweepstakes conducted pursuant to sections 42-295 to 42-301, inclusive.

(b) The Mashantucket Pequot tribe and the Mohegan Tribe of Indians of Connecticut, or their agents, may use and possess at any location within the state, solely for the purpose of training individuals in skills required for employment by the tribe or testing a gambling device, any gambling device which the tribes are authorized to utilize on their reservations pursuant to the federal Indian Gaming Regulatory Act; provided no money or other thing of value shall be paid to any person as a result of the operation of such gambling device in the course of such training or testing at locations outside of the reservation of the tribe. Any person receiving such training or testing such device may use any such device in the course of such training or testing. Whenever either of said tribes intends to use and possess at any location within the state any such gambling device for the purpose of testing such device, the tribe shall give prior notice of such testing to the Department of Consumer Protection.

[(c) Any casino gaming facility, or its agents, may use and possess at any location within the state, solely for the purpose of training individuals in skills required for employment by the casino gaming facility or testing a gambling device, any gambling device which the casino gaming facility may use for conducting authorized games at the casino gaming facility, provided no money or other thing of value shall be paid to any person as a result of the operation of such gambling device in the course of such training or testing at locations outside of the casino gaming facility. Any person receiving such training or testing such device may use any such device in the course of such training or testing. Whenever a casino gaming facility intends to use and possess at any location within the state any such gambling device for the purpose of testing such device, the casino gambling facility shall give prior notice of such testing to the Department of Consumer Protection.]

Sec. 8. Subsection (a) of section 30-37k of the 2018 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) As used in this section and subsection (a) of section 30-91: (1) "Casino" means the premises within which a gaming facility is operated with other facilities, including, but not limited to, restaurants, hotels, nightclubs, bingo halls or convention centers; and (2) "gaming facility" means a room or rooms within which class III gaming, as defined in the Indian Gaming Regulatory Act, P.L. 100-497, 25 USC 2701, et seq., [or an authorized game, as defined in section 12-557b,] is legally conducted.

Sec. 9. Sections 12-578a to 12-578j, inclusive, of the general statutes are repealed. (Effective from passage)

Sec. 10. Section 17 of public act 17-89 is repealed. (Effective from passage)

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

Section 1

from passage

New section

Sec. 2

from passage

12-557b

Sec. 3

from passage

12-561

Sec. 4

from passage

12-562(a)

Sec. 5

from passage

12-563a

Sec. 6

from passage

12-578(a)(2)

Sec. 7

from passage

53-278g

Sec. 8

from passage

30-37k(a)

Sec. 9

from passage

Repealer section

Sec. 10

from passage

Repealer section

Statement of Purpose:

To (1) require the Commissioners of Consumer Protection and Economic and Community Development to develop and issue a request for proposals to qualify a person, business organization or Indian tribe to develop, manage and operate a casino gaming facility in the state, and (2) repeal the authority of MMCT Venture, LLC, to operate a 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.]