Sec. 12-569. Breach of fiduciary responsibility by lottery sales agent.
Sec. 12-569. Breach of fiduciary responsibility by lottery sales agent. (a) For purposes of this section, “delinquency assessment” means the principal amount due but unremitted as of the stated past settlement date, the penalty imposed by the commissioner and the interest due and outstanding.
(b) (1) If the president of the Connecticut Lottery Corporation determines that any lottery sales agent has breached such agent's fiduciary responsibility to the corporation in that the account of such lottery sales agent with respect to moneys received from the sale of lottery tickets has become delinquent by failure to remit all moneys due and owing upon the settlement date established by the Connecticut Lottery Corporation, the president shall notify the commissioner of the breach of fiduciary duty. The commissioner shall impose (A) a penalty upon such delinquent account equal to ten per cent of the principal amount due but unremitted or ten dollars, whichever amount is greater, which shall be effective upon delivery of notice to the agent, and (B) simple interest at the rate of one and one-half per cent of such principal amount due but unremitted for each month or fraction of a month from the date such principal amount is due but unremitted to the date of payment.
(2) A lottery sales agent whose account was delinquent prior to July 1, 2022, and whose delinquency assessment was subject to compounding interest on June 30, 2022, may apply to the commissioner on or after July 1, 2022, for a hardship waiver to reduce the amount of interest delinquent, outstanding and payable to an amount based on simple interest.
(3) A lottery sales agent whose account is delinquent on or after July 1, 2025, may file an application with the president of the Connecticut Lottery Corporation for a hardship waiver to reduce the amount of interest delinquent, outstanding and payable. Each lottery sales agent applying for a hardship waiver shall pay, with such application, the principal amount due but unremitted as of the stated past settlement date and the penalty imposed in accordance with subdivision (1) of this subsection, except that if the president determines that an undue hardship exists which prevents such agent from paying the principal amount due but unremitted as of the stated past settlement date and the penalty at the time of application for such hardship waiver, the president may enter into a payment schedule permitting an agent to pay the principal amount due but unremitted and the penalty over a period of time not to exceed one year from the date the hardship waiver is provisionally granted by the president. An agent who fails to pay the principal amount due but unremitted and the penalty in accordance with a payment schedule entered into pursuant to this subdivision shall be ineligible for a further hardship waiver pursuant to this subdivision. If the president determines that it would be beneficial to the state to do so, the president may reduce the amount of any interest delinquent, outstanding and payable by such agent. The president shall establish procedures, to be published and maintained on the Internet web site of the Connecticut Lottery Corporation, specifying the requirements for hardship waiver applications and the availability of payment plans. In no event shall a hardship waiver result in a refund or credit of any amount of money, penalty or interest previously paid by such agent.
(4) Subject to the provisions of section 12-3a, the commissioner may waive all or part of the penalties provided under this subsection when it is proven to the commissioner's satisfaction that the failure to pay such moneys to the state within the time allowed was due to reasonable cause and was not intentional or due to neglect.
(5) Any such delinquent lottery sales agent shall be notified of such delinquency assessment and shall be afforded an opportunity to contest the validity and amount of such assessment before the commissioner who may conduct such hearing. Upon request of the president of the Connecticut Lottery Corporation, the commissioner may prepare and sign a warrant directed to any state marshal, constable or any collection agent employed by the Connecticut Lottery Corporation for distraint upon any property of such delinquent lottery sales agent within the state, whether personal or real property. An itemized bill shall be attached to the warrant certified by the commissioner as a true statement of the amount due from such lottery sales agent. Such warrant shall have the same force and effect as an execution issued in accordance with chapter 906. Such warrant shall be levied on any real, personal, tangible or intangible property of such agent and sale made pursuant to such warrant in the same manner and with the same force and effect as a levy and sale pursuant to an execution.
(c) The commissioner shall adopt regulations in accordance with the provisions of chapter 54 to carry out the purposes of this section.
(1971, P.A. 865, S. 13; 1972, P.A. 187, S. 6; P.A. 73-235, S. 1, 2; P.A. 75-14, S. 1, 2; P.A. 78-242, S. 1, 2; P.A. 79-27; 79-404, S. 20, 45; P.A. 80-39; P.A. 82-163, S. 1, 6; P.A. 91-281, S. 1, 2; P.A. 96-212, S. 29, 32; P.A. 00-99, S. 42, 154; P.A. 10-70, S. 1; P.A. 11-51, S. 191; 11-233, S. 12; P.A. 13-299, S. 65; P.A. 22-120, S. 1; P.A. 25-112, S. 1.)
History: 1972 act amended Subsec. (a) to exclude lottery sales receipts from gross receipts when agent is a lessee of state property whose rental fee is based on gross receipts, amended Subsec. (b) to specify that agents may be required to make deposits “in a special or suspense account in the name of the commission” and added Subsecs. (c) and (d) re compensation to depositories and claim centers; P.A. 73-235 allowed sales of lottery tickets at off-track betting facilities; P.A. 75-14 allowed sales of tickets at commission main office; P.A. 78-242 amended Subsec. (b) to include provisions re delinquency assessments; P.A. 79-27 added provision in Subsec. (b) declaring moneys received from sale of tickets to be state property while in sales agents' hands; P.A. 79-404 substituted “executive director” and “division” for “commission” and required advice and consent of gaming policy board for establishment of rules and regulations and ticket prices; P.A. 80-39 allowed employees of licensed sales agents to sell lottery tickets in Subsec. (a); P.A. 82-163 amended Subsec. (b) so as to provide penalty and interest re late payment by state lottery agents in amounts and under conditions as to be comparable to such provisions applicable with respect to other state taxes; P.A. 91-281 amended Subsec. (b) to require that all moneys received by lottery sales agents from the sale of lottery tickets be held in trust for the state and that lottery sales agents deposit such moneys in a special or suspense account; P.A. 96-212 deleted Subsecs. (a), (c) and (d) and portions of Subsec. (b) re operation and administration of state lottery, effective July 1, 1996 (Revisor's note: The word “Corporation” was added editorially by the Revisors in the first sentence reference to “president of the Connecticut Lottery Corporation” for consistency); P.A. 00-99 replaced reference to sheriff and deputy sheriff with state marshal, effective December 1, 2000; P.A. 10-70 added Subsec. designators (a) and (b), added reference to Sec. 12-569b in Subsec. (a) and made technical changes; P.A. 11-51 replaced “executive director” with “commissioner” and, in Subsec. (a), deleted exception re Sec. 12-569b, effective July 1, 2011; P.A. 11-233 amended Subsec. (a) by deleting exception re Sec. 12-569b, effective July 1, 2011; P.A. 13-299 amended Subsec. (b) to delete provision re advice and consent of the Gaming Policy Board, effective July 1, 2013; P.A. 22-120 amended Subsec. (a) by designating existing provisions as Subdivs. (1), (3) and (4), inserting “simple” and making a technical change in Subdiv. (1) and adding Subdiv. (2) re hardship waivers, effective July 1, 2022; P.A. 25-112 added new Subsec. (a) defining “delinquency assessment”, redesignated existing Subsecs. (a) and (b) as Subsecs. (b) and (c), amended redesignated Subsec. (b) by substantially amending provisions in Subdiv. (1) re enforcement and penalty for failure to remit moneys, adding new Subdiv. (3) re hardship waiver and redesignating existing Subdivs. (3) and (4) as Subdivs. (4) and (5), and made a technical change in Subsec. (c), effective July 1, 2025.
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