Connecticut Administrative Code › Title 12 - Taxation › 574-E - Licensing and Disclosure › Section 12-574-E2 - Definitions

Current through July 10, 2024
The following definitions, constructions and interpretations of
				these rules and regulations, including all amendments thereto, shall apply to
				Sections
				12-574-E1
				through E7 inclusive; 12-584-1; 12-585-1; and 12-578-1:
(1)
Act
. Chapters 226 and 226b
			 of the Connecticut General Statutes and all amendments thereto.
(2)
Affiliate
. A business
			 organization, other than a shareholder in a publicly traded corporation, which
			 may exercise control in or over an association, totalisator, concessionaire, or
			 vendor licensee.
(3)
Agent
. Anyone to whom control or management terms, as defined
			 herein, apply or any person or entity actually or ostensibly authorized to
			 represent or act on behalf of any principal.
(4)
Applicant
. Any individual or
			 business organization seeking to obtain a license from either the board or the
			 division.
(5)
Association
. Any individual or business organization licensed to
			 conduct a racing or jai alai meeting pursuant to Section
			 12-574(a)
			 of the Connecticut General Statutes or licensed to operate the off-track
			 betting system pursuant to Section
			 12-572
			 of the Connecticut General Statutes.
(6)
Board
. The gaming policy
			 board of the state of Connecticut as established by Section 12-557d of the
			 Connecticut General Statutes.
(7)
Business organization.
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.
(8)
Concessionaire
. Any individual or business organization granted
			 the right to operate an activity at a parimutuel or off-track betting facility
			 for the purpose of making a profit, and which person or business organization
			 receives or, in the exercise of reasonable business judgment, can be expected
			 to receive more than $25,000 or 25 percent of its gross annual receipts from
			 such activity at the facility. By way of example and not limitation, parking
			 contractors, restaurant or catering contractors, closed-circuit television
			 contractors, handicappers, security services, contractual kennel owners and
			 cleaning and maintenance contractors may be concessionaires. Notwithstanding
			 the provisions of Section
			 12-574-E1(b)
			 of these regulations, those persons or business organizations requesting an
			 exemption from the licensing requirements as concessionaires must submit
			 satisfactory evidence to the division that they are within the dollar or
			 percentage limit defined above.
(9)
Control
. The power to exercise authority over or direct the
			 management and policies of a person or business organization.
(10)
Division
. The division of
			 special revenue of the state of Connecticut and its duly authorized
			 representatives.
(11)
Facility
. The total real estate, land and buildings of an
			 association utilized for racing, OTB, or jai alai performances.
(12)
Key executive and other control
			 person
. Any individual or business organization to which the terms
			 "control," "management," "related," or "principal owner" apply.
(13)
Licensee
. Any individual or
			 business organization licensed by either the board or the division to
			 participate in any activity permitted under the act except as specifically
			 excluded in Section
			 12-574-E1(a).
(14)
Major contractual services
.
			 Goods or services supplied to a licensee by a contractor who receives or, in
			 the exercise of reasonable business judgment, can be expected to receive more
			 than $25,000 or 25 percent of its gross annual sales from the licensee. Where
			 such a contractor actually supplies such goods and services at a facility (as
			 contrasted with simply delivering such goods to the facility or providing such
			 services off the facility) said contractor will be a concessionaire.
(15)
Management
. Any persons or
			 entities having responsibility to manage, direct, or administer the affairs of
			 a person or business organization. Management includes but is not limited to
			 members of the board of directors of a corporation, officers in charge of
			 principal business functions, or principal owners.
(16)
Principal owner or principal
			 stockholder
. An owner or beneficial owner of more than 10 percent of a
			 licensee's debt or equity or 10 percent of the voting interest of the licensee
			 or an owner or beneficial owner who receives more than 10 percent of income
			 earned or distributed from a licensee. Excluded from this classification are
			 financial institutions, insurance companies, or pension funds who are holders
			 of the licensee's (or applicant's) debt, but who do not exercise control over
			 such licensee (or applicant). The division will not require holders of a
			 licensee's debt which are financial institutions, insurance companies, or
			 pension funds which are not exercising control over a licensee to be
			 licensed.
(17)
Privately-held
			 corporations
. Corporations that are other than publicly-traded
			 corporations.
(18)
Publicly-traded corporations
. Corporations whose debt or equity
			 securities are traded in a public market in a foreign or domestic stock
			 exchange or in the over-the-counter market, and are required to file financial
			 statements with the Securities and Exchange Commission.
(19)
Related
. Any person or
			 business organization that has the ability to significantly influence the
			 management or operating policies of a licensee (or applicant) to the extent
			 that such licensee (or applicant) may be prevented from pursuing its own
			 separate interests. These include, but are not limited to, affiliates,
			 principal owners and close kin, management and close kin, parents and
			 subsidiaries, and debt or equity method investors and investments.
(20)
Totalisator
. The system or
			 equipment or services whereby tickets are printed as purchased and the purchase
			 automatically recorded at a central place within the facility, the approximate
			 odds at any particular time are quickly determined and flashed on an electronic
			 display board for the public view, and the payoffs are correctly determined and
			 flashed when the game or race is over.
(21)
Vendor
. A person or
			 business organization awarded the primary contract by the state to provide
			 facilities, goods, components, and services necessary to carry out the
			 provisions of Sections
			 12-568 and
			 12-572
			 of the General Statutes.