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

(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.