Connecticut Administrative Code › Title 12 - Taxation › 568a - Operation of Lottery › Section 12-568a-1 - Definitions, constructions, interpretations

Current through July 10, 2024
In applying the provisions of sections 12-568a-1 to
				12-568a-24,
				inclusive, of the Regulations of Connecticut State Agencies, the following
				definitions, constructions and interpretations shall apply:
(1) "Acceptance test" means a series of
			 hardware, software and terminal tests established and performed by the CLC to
			 assure integrity, conducted prior to the installation of the lottery gaming
			 system or prior to any software or hardware modifications to the lottery gaming
			 system.
(2) "Affiliate" means a
			 person, other than a shareholder in a publicly traded corporation, that may
			 exercise control in or over the CLC or a vendor licensee.
(3) "Agent" means a lottery sales agent,
			 lottery retailer, or a person who has been licensed by the department to sell
			 and redeem tickets as specified by the department.
(4) "Augmentation" means the process by which
			 a prize pool of a lottery game may be increased.
(5) "Business continuity plan" means the
			 written procedures to be followed to restore critical functions following a
			 disruption.
(6) "Business records"
			 means journals, books of accounts, correspondence, memorandums, tapes, discs,
			 papers, books and other documents that may be requested by the department from
			 time to time in any written or electronic form.
(7) "CLC" means the Connecticut Lottery
			 Corporation as created under section 12-802 of the Connecticut General
			 Statutes.
(8) "CLC Board" means the
			 governing Board of Directors of the Connecticut Lottery Corporation,
			 established pursuant to chapter 229a of the Connecticut General
			 Statutes.
(9) "Commissioner" means
			 the Commissioner of Consumer Protection or his or her designee.
(10) "Compliance officer" means the person
			 designated by the CLC to be responsible for overseeing and managing compliance
			 issues within the CLC, including compliance with all statutory and regulatory
			 requirements and compliance with the CLC's internal controls and rules of
			 operation.
(11) "Control" means the
			 power to exercise authority over, or direct the management and policies of, a
			 person.
(12) "Delinquency" means
			 the failure by an agent to remit all moneys due and owing as a result of the
			 agent's ticket sales upon the settlement date established for that
			 agent.
(13) "Department" means the
			 Department of Consumer Protection.
(14) "Designated employee" means an
			 individual who works at a licensed lottery sales location and is the contact
			 person regarding lottery matters at that licensed lottery sales location.
(15) "Disaster recovery plan" means
			 a plan which provides for a back-up site, detailing the computer systems,
			 communications equipment, power supply, security procedures, recovery
			 procedures, and time schedules for the recovery and continuation of the lottery
			 gaming system, if the primary site is deemed inoperable.
(16) "Drawing" means the process whereby
			 winners in a lottery game are conclusively determined.
(17) "Facility" means the physical location
			 where any lottery activity is conducted by the CLC or any lottery vendor,
			 affiliate or occupational licensee, except that it does not include an
			 employee's home, if the home is not the employee's primary work location and
			 the employee does not retain files at his or her home.
(18) "Final settlement" means the process by
			 which the CLC receives the monetary amount equivalent to all tickets sold by an
			 agent, minus an agent's authorized compensation, prizes, authorized adjustments
			 and cancels.
(19) "Hardware" means
			 all equipment, devices and peripherals, including, but not limited to,
			 computers and computer components.
(20) "High tier claim center" means an agent
			 designated by the CLC and approved by the department to pay and process claims
			 for lottery winnings of specified denominations, and required to post and
			 maintain a surety bond at the agent's sole expense, in an amount approved by
			 the CLC.
(21) "Immediate family"
			 means any spouse, domestic partner, child or relative who resides in an
			 individual's household.
(22)
			 "Incident" means a statutory, regulatory or criminal violation or allegation of
			 a violation that affects the CLC, a lottery game or the lottery gaming system;
			 it also means any irregularity that affects a lottery game or the lottery
			 gaming system.
(23) "Instant game"
			 means any game with a fixed prize structure where the outcome is predetermined
			 and immediately available to the purchaser.
(24) "Internal Control System" or "ICS" means
			 an electronic system that captures and accounts for lottery gaming transactions
			 and provides audit capability for the lottery gaming system.
(25) "Internal controls" has the meaning
			 prescribed in section 4-230(8) of the Connecticut General Statutes.
(26) "Key personnel" means any individual who
			 asserts influence and control over the day to day operations and who has the
			 power to exercise authority over or direct the management and policies of a
			 person and includes any individual that has a Class II or a Class IV
			 occupational license from the department.
(27) "Licensee" means any person licensed by
			 the commissioner to participate in lottery activities.
(28) "Lottery" means the lottery as defined
			 in section 12-801 of the Connecticut General Statutes.
(29) "Lottery game" means a terminal game,
			 instant game or other game offered by the CLC and approved by the
			 department.
(30) "Lottery gaming
			 system" means the complete integrated set of hardware and software elements
			 that communicates, records, reports, captures and accounts for gaming data,
			 including, but not limited to, issuing, canceling and validating wagers,
			 determining winners, and other functions necessary for the technological
			 operation of the lottery.
(31)
			 "Lottery sales agent license" means the right to sell tickets, or where the
			 context requires, the actual credential issued by the department evidencing
			 such right.
(32) "Major contractual
			 services" means goods or services supplied by a contractor who receives, or can
			 be expected to receive, more than $50,000 or twenty-five percent of its gross
			 annual sales from the CLC or any licensee, whichever is lower.
(33) "Management information system" or "MIS"
			 means a computer system that provides access to data within the lottery gaming
			 system.
(34) "Network" means the
			 communications network that provides interface and compatibility between
			 computers, agent terminals, modems, data sets, and the lottery gaming
			 system.
(35) "Occupational
			 licensee" means an individual licensed by the department pursuant to chapters
			 226 and 229a of the Connecticut General Statutes.
(36) "Official procedures" means the
			 documents which contain the methods of operation and management of lottery
			 games, including, but not limited to, technical specifications, prize claims
			 and payouts, prize structure, ticket characteristics and rules of play, and all
			 procedures concerning internal controls, security, administration, purchasing
			 and budgeting.
(37) "Person" means
			 any individual, partnership, association, limited liability company, firm,
			 corporation, trust, or other public or private entity, organized or existing
			 under the laws of the state or any other state, or the federal government,
			 including federal corporations and foreign entities.
(38) "Pool" means the amount of money wagered
			 for a particular drawing.
(39)
			 "President" means the chief executive officer or designee of the CLC
			 responsible for directing and supervising the operations and management of the
			 CLC.
(40) "Primary contract" means
			 a contract to provide facilities, components, goods or services to the CLC by a
			 person that (A) provides any lottery game or any lottery gaming system, related
			 facilities, components, goods or services and that receives or, in the exercise
			 of reasonable business judgment, can be expected to receive more than $75,000
			 or twenty-five percent (25%) of its gross annual sales from the CLC, or (B) has
			 access to the facilities of the CLC and provides services in such facilities
			 without supervision by the CLC.
(41) "Primary site" means the main location
			 of the lottery gaming system.
(42)
			 "Prize claim period" means the redemption period for winning tickets.
(43) "Promotion" means an event or activity
			 in which the CLC participates, conducted for the purpose of endorsing lottery
			 products or lottery games.
(44)
			 "Promotional drawing" means any drawing that determines the winner of any prize
			 that is provided by the CLC and that is not part of any lottery game prize
			 structure.
(45) "Purchaser" means a
			 person who participates in a lottery game by either purchasing a ticket from a
			 licensed agent location or by lawfully receiving a ticket purchased by
			 another.
(46) "Rules of operation"
			 means the written policies and procedures governing the general operation and
			 management of the CLC, as adopted by the CLC Board of Directors. Such policies
			 and procedures shall include, but need not be limited to, policies relating to
			 sales procedures, management structure, emergency response and resolution
			 policy, security, administration, purchasing and budgeting.
(47) "State" means the state of
			 Connecticut.
(48) "Subscription"
			 means a contract under which the purchaser is automatically entered in
			 designated drawings for a specified period of time.
(49) "Terminal game" means any lottery game
			 in which a ticket is produced by a machine that communicates with the lottery
			 gaming system.
(50) "Ticket" means
			 any lottery ticket approved for sale to the general public pursuant to sections
			 12-568a-1 to
			 12-568a-24,
			 inclusive, of the Regulations of Connecticut State Agencies.
(51) "Ticket vending machine" means a machine
			 that dispenses tickets for sale.
(52) "Unclaimed prize" means a prize
			 associated with a purchased ticket that remains unredeemed after the prize
			 claim period expires.
(53)
			 "Unclaimed prize funds" means the value of prizes associated with tickets that
			 remain unclaimed after the prize claim period expires.
(54) "Vendor" means a person awarded the
			 primary contract by the CLC to provide facilities, goods, components, and
			 services related to the operation of the CLC or necessary to carry out the
			 provisions of chapters 226 and 229a the Connecticut General Statutes.
(55) "Working papers" means specifications
			 for instant games, including, but not limited to, a game description, color
			 representation of the front and back of the ticket, prize structure,
			 representations of fonts, official procedures, packing information, delivery
			 schedule and price confirmation.