Department of Consumer Protection | 7-169h-a1 to 7-169h-29 - Manufacture, Distribution and Sale of Sealed Tickets

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Regulations of Connecticut State Agencies TITLE 7. Municipalities

Agency Department of Consumer Protection

Subject Manufacture, Distribution and Sale of Sealed Tickets

Inclusive Sections §§ 7-169h-a1—7-169h-29

CONTENTS

Sec. 7-169h-a1. Definitions Sec. 7-169h-1. Sealed ticket permits Sec. 7-169h-2. Over-the-bar permit Sec. 7-169h-3. Personal sealed ticket sales permit Sec. 7-169h-4. Qualification of sales person Sec. 7-169h-5. Sales persons Sec. 7-169h-6. Investigation of permit applicants Sec. 7-169h-7. Unsuitable person barred Sec. 7-169h-8. Restrictions on sale or lease of equipment and renting of premises Sec. 7-169h-9. Facilities Sec. 7-169h-10. Notice on premises Sec. 7-169h-11. No other games of chance activity permitted on premises Sec. 7-169h-12. Sealed ticket games (Repealed) Sec. 7-169h-13. Official procedure filed (Repealed) Sec. 7-169h-14. Information required on sealed ticket (Repealed) Sec. 7-169h-15. Percentage retained by permittee as profit (Repealed) Sec. 7-169h-16. Percentage to be awarded as prizes (Repealed) Sec. 7-169h-17. Apportionment of revenues (Repealed) Sec. 7-169h-18. Purchase of sealed tickets Sec. 7-169h-19. Payment of sealed ticket prizes Sec. 7-169h-20. Records, control forms Sec. 7-169h-21. Bank accounts, expenses Sec. 7-169h-22. Amendment of permit application Sec. 7-169h-23. Notice of change in organization status Sec. 7-169h-24. Notice of change in personal status Sec. 7-169h-25. Monthly return to be filed Sec. 7-169h-25a. Qualifications for registration Sec. 7-169h-25b. Sealed ticket game products manufacturer Sec. 7-169h-25c. Sealed ticket game products distributor

Revised: 2015-10-7 R.C.S.A. §§ 7-169h-a1—7-169h-29 - I -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

Sec. 7-169h-25d. Sealed ticket dispensing machine equipment manufacturer Sec. 7-169h-25e. Sealed ticket dispensing machine equipment dealer Sec. 7-169h-26. Violations of statutes, rules and regulations, false statement Sec. 7-169h-27. Forms, statements under oath Sec. 7-169h-28. Waiver Sec. 7-169h-29. Repealed

Revised: 2015-10-7 R.C.S.A. §§ 7-169h-a1—7-169h-29 - II -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

Department of Consumer Protection §7-169h-a1

Manufacture, Distribution and Sale of Sealed Tickets

Sec. 7-169h-a1. Definitions As used in sections 7-169h-a1 to 7-169h-28, inclusive, of the Regulations of Connecticut

State Agencies: (1) ‘‘Commissioner’’ means the commissioner of the Department of Consumer

Protection. (2) ‘‘Department’’ means the Department of Consumer Protection. (3) ‘‘Form number’’ means the unique number or alphanumeric code that identifies the

cost per play, ticket count, payout structure, and extended payout structure (if any). (4) ‘‘Mailer or flyer’’ means a sheet of literature, containing an artwork representation

of a sealed ticket game, which is printed by a sealed ticket game products manufacturer. (5) ‘‘Member in charge’’ means a bona fide, active member of the organization

designated by the organization to be in charge of and primarily responsible for the procurement, distribution and sale of sealed tickets by the organization.

(6) ‘‘Packet’’ means a separate game or series of sealed tickets with a specific form number and a unique serial number.

(7) ‘‘Permittee’’ means a person that holds a sealed ticket permit issued by the department for the sale of sealed tickets within this state.

(8) ‘‘Person’’ means any individual, organization, partnership, association, Limited Liability Company, corporation, trust, or other public or private entity.

(9) ‘‘Sealed ticket dispensing machine’’ means a mechanical or electronic ticket dispensing device with one or more stacking columns that dispenses a sealed ticket after a player inserts an appropriate amount of coin or currency.

(10) ‘‘Sealed ticket dispensing machine equipment dealer’’ means a business registered with the department to sell or lease sealed ticket dispensing machines to any permittee.

(11) ‘‘Sealed ticket dispensing machine equipment manufacturer’’ means a business registered with the department and who manufactures or assembles sealed ticket dispensing machines.

(12) ‘‘Sealed ticket dispensing machine placement sheet’’ means a document submitted to the commissioner for each sealed ticket dispensing machine sold or leased by a registered sealed ticket dispensing machine equipment manufacturer or dealer to a permittee.

(13) ‘‘Sealed ticket game products distributor’’ means a person who is a resident of this state and is registered with the department to provide services related to the sale and distribution of sealed tickets to any permittee.

(14) ‘‘Sealed ticket game products manufacturer’’ means a person who is registered with the department and who manufactures or assembles sealed tickets from raw materials, supplies or subparts.

(15) ‘‘Sealed ticket or pull-tab’’ means a card with tabs which, when pulled, expose pictures of various objects, symbols or numbers and which entitles the holder of the ticket to receive a prize if the combination of objects, symbols or numbers pictured matches what is determined to be a winning combination.

Revised: 2015-10-7 R.C.S.A. §§ 7-169h-a1—7-169h-29 - 1 -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

§7-169h-1 Department of Consumer Protection

(16) ‘‘Serial number’’ means the unique identification assigned by the manufacturer identifying a specific packet of sealed tickets. A serial number may be numeric, alpha, or a combination of numeric and alpha characters. (Effective November 2, 2012)

Sec. 7-169h-1. Sealed ticket permits (a) A sealed ticket permit and permit number may be issued by the department to any

charitable, civic, educational, fraternal, veterans’ or religious organization, volunteer fire department or grange which holds a bingo permit issued in accordance with the provisions of section 7-169 of the Connecticut General Statutes, as amended. Such sealed ticket permit and permit number may be revoked for cause.

(b) The department may issue a permit to sell sealed tickets to any organization or group specified in section 7-172 of the Connecticut General Statutes which holds a permit to operate a bazaar, issued in accordance with the provisions of sections 7-170 to 7-186, inclusive, of the Connecticut General Statutes.

(c) The department may issue a permit to sell sealed tickets to any charitable, civic, educational, fraternal, veterans’ or religious organization, volunteer fire department or grange authorizing such organization to sell sealed tickets in conjunction with any social function or event sponsored or conducted by such organization. Any such organization shall have been organized for not less than two years prior to the date of its application for such permit. Such permit shall be renewed annually. (Effective October 1, 1987; Amended December 8, 1998; Amended November 2, 2012)

Sec. 7-169h-2. Over-the-bar permit The department may issue an over-the-bar permit and permit number to sell sealed tickets

to any charitable, civic, educational, fraternal, veterans’ or religious organization, volunteer fire department or grange which holds a club permit or non- profit club permit under the provisions of Chapter 545 of the Connecticut General Statutes. Such over-the-bar permit and permit number may be revoked for cause. (Effective March 22, 1989; Amended November 2, 2012)

Sec. 7-169h-3. Personal sealed ticket sales permit (a) No individual shall sell, offer for sale or distribute a sealed ticket who has not reached

the age of eighteen and who has not applied for and received a permit on forms prescribed by the commissioner and has provided information which the commissioner may reasonably require including, but not limited to, such individual’s criminal record, if any, moral character or business affiliations, and who thereafter has been assigned a permit number from the department to sell sealed tickets. Such personal sealed ticket sales permit and permit number may be revoked for cause.

(b) Notwithstanding the provisions of subsection (a) of this section, the commissioner may issue a personal sealed ticket sales permit and permit number to a minor sixteen years

R.C.S.A. §§ 7-169h-a1—7-169h-29 Revised: 2015-10-7 - 2 -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

Department of Consumer Protection §7-169h-5

of age or older allowing such minor to sell, offer for sale or distribute sealed tickets at an authorized bingo game or games, bazaar, or sealed ticket special event, provided written permission from a parent or legal guardian of such minor is filed with the department. (Effective March 22, 1989; Amended November 2, 2012)

Sec. 7-169h-4. Qualification of sales person (a) No individual shall sell sealed tickets during the operation of authorized bingo games,

bazaar events or sealed ticket special events unless he has been a bona fide, active member of at least one sponsoring organization permitted to sell sealed tickets.

(b) No individual shall sell sealed tickets over-the-bar unless he has been a bona fide, active member or worker of the sponsoring organization permitted to sell sealed tickets. (Effective March 22, 1989; Amended November 2, 2012)

Sec. 7-169h-5. Sales persons (a) Member in charge. Every organization permitted to sell sealed tickets shall designate

a bona fide, active member of the organization to be in charge of and primarily responsible for the procurement, distribution and sale of sealed tickets by the organization. The member in charge shall supervise all activities and be responsible for the conduct of all sealed ticket sales, including the preparation of all returns, control reports, certified statements and affidavits, the records of receipts and disbursements and bank accounts required by the department, and the disposition of funds. The member in charge may designate, in writing, a qualified sales person to act in his behalf and to discharge his responsibilities on occasions when he is unable to do so. The member in charge or his qualified designee shall be present on the premises continually during the time at which sealed tickets are sold, offered for sale or distributed, and shall be familiar with the Connecticut General Statutes and the Regulations of Connecticut State Agencies governing the distribution and sale of sealed tickets.

(b) Participation as sales person restricted. No individual shall assist in the conduct of sealed ticket sales except the holder of a personal sealed ticket sales permit.

(c) Identification required. The member in charge and those assisting him in any capacity shall possess and display such identification as may be specified by the commissioner.

(d) Payment of sales persons prohibited. No commission, salary, compensation in any form or gift shall be paid or given to any individual in any manner conducting or assisting in the conduct of sealed ticket sales either directly or indirectly. For the purposes of this subsection, compensation normally paid to bartenders of over- the-bar permittees shall not be considered as compensation for the sale or assistance in the selling of sealed tickets. No individual selling sealed tickets shall solicit or receive any gift or donation of cash or merchandise on the premises during the conduct of sealed ticket sales.

(e) Compensation of bookkeepers and accountants. Bookkeepers and accountants may receive reasonable compensation for necessary services ordinarily incidental to the

Revised: 2015-10-7 R.C.S.A. §§ 7-169h-a1—7-169h-29 - 3 -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

§7-169h-6 Department of Consumer Protection

sale of sealed tickets. (Effective March 22, 1989; Amended November 2, 2012)

Sec. 7-169h-6. Investigation of permit applicants The commissioner shall make or cause to be made an investigation of the qualifications

of permit applicants desiring to distribute or sell sealed tickets and the facts stated in any application and, if he determines that the permit applicant is qualified to distribute or sell sealed tickets, the department shall issue a permit and permit number to such applicant. (Effective October 1, 1987; Amended November 2, 2012)

Sec. 7-169h-7. Unsuitable person barred No individual shall operate or assist in the operation of authorized sealed ticket games

whose moral character, criminal record, if any, or business affiliations render such individual unsuitable in the opinion of the commissioner. (Effective October 1, 1987; Amended November 2, 2012)

Sec. 7-169h-8. Restrictions on sale or lease of equipment and renting of premises (a) No organization may use a mechanical or electronic ticket dispensing machine to sell

sealed tickets unless such machine was owned in full by the permittee before January 2, 2008 or is leased or purchased from a sealed ticket dispensing machine equipment dealer;

(b) No organization shall rent, lease or hire premises for the distribution or sale of sealed tickets on a percentage of gross or net earnings or income, or at a reduced rate or free of charge if the free or reduced rate for use of such premises carries with it an agreement of compensation or reward directly or indirectly in any form. Nothing in this subsection shall prohibit a permittee from utilizing an organization’s premises in exchange for the permittee identifying the organization as a sponsor. (Effective October 1, 1987; Amended November 2, 2012)

Sec. 7-169h-9. Facilities (a) Premises required to be open for inspection. The premises where sealed tickets

are distributed or sold or where it is intended that any sealed ticket activity be conducted shall, at reasonable times, including normal business hours, be open to inspection by the commissioner or his duly appointed representatives. (Effective March 22, 1989; Amended November 2, 2012)

Sec. 7-169h-10. Notice on premises (a) Certain notices required to be posted. Each organization authorized to sell sealed

tickets shall conspicuously post within that portion of the premises where sealed tickets are sold its sealed ticket permit and one or more notices as required by the commissioner containing certain designated rules governing the distribution and sale of sealed tickets. The notice or notices shall be in the form prescribed and shall be provided by the department.

R.C.S.A. §§ 7-169h-a1—7-169h-29 Revised: 2015-10-7 - 4 -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

Department of Consumer Protection §7-169h-17

(b) A notice shall be posted conspicuously on the premises where authorized sealed ticket sales are conducted providing (1) the name of the organization and its department-issued permit number; (2) the name of the member in charge thereof; the name of each sealed ticket game, the types of tickets for which are offered for sale, and the amount of the charges for such tickets; and (4) the amount of prizes to be offered. (Effective October 1, 1987; Amended November 2, 2012)

Sec. 7-169h-11. No other games of chance activity permitted on premises No games of chance of any kind other than bingo games, bazaars, raffles or other

permitted games authorized pursuant to the provisions of Chapter 98 of the Connecticut General Statutes, and regardless of whether any separate or additional charge or payment is required, shall be conducted or allowed in the room or rooms, on any occasion, where or when authorized sealed tickets are sold. (Effective October 1, 1987; Amended December 8, 1998; Amended November 2, 2012)

Sec. 7-169h-12. Sealed ticket games (Repealed) Repealed November 2, 2012.

(Effective October 1, 1987; Repealed November 2, 2012)

Sec. 7-169h-13. Official procedure filed (Repealed) Repealed November 2, 2012.

(Effective October 1, 1987; Repealed November 2, 2012)

Sec. 7-169h-14. Information required on sealed ticket (Repealed) Repealed November 2, 2012.

(Effective October 1, 1987; Repealed November 2, 2012)

Sec. 7-169h-15. Percentage retained by permittee as profit (Repealed) Repealed November 2, 2012.

(Effective March 22, 1989; Repealed November 2, 2012)

Sec. 7-169h-16. Percentage to be awarded as prizes (Repealed) Repealed November 2, 2012.

(Effective October 1, 1987; Repealed November 2, 2012)

Sec. 7-169h-17. Apportionment of revenues (Repealed) Repealed November 2, 2012.

(Effective October 1, 1987; Repealed November 2, 2012)

Revised: 2015-10-7 R.C.S.A. §§ 7-169h-a1—7-169h-29 - 5 -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

§7-169h-18 Department of Consumer Protection

Sec. 7-169h-18. Purchase of sealed tickets (a) Permittees shall only purchase sealed tickets from a sealed ticket game products

distributor at a cost which is equal to ten percent (10%) of their resale value. (b) The discontinuation of a sealed ticket game shall not affect the ability of any person

to claim a prize, provided such person purchased a sealed ticket prior to the effective date of the discontinuation of such game. (Effective October 1, 1987; Amended November 2, 2012)

Sec. 7-169h-19. Payment of sealed ticket prizes Sealed ticket prizes shall be paid only by a sealed ticket permittee and only at the

permittee’s place of sale. (Effective October 1, 1987)

Sec. 7-169h-20. Records, control forms (a) Record keeping. Accurate records and books shall be kept by each permittee

showing in detail, among other things, the amount and source of gross receipts, prizes, and the expenses incurred.

(b) Access to records. The commissioner or the commissioner’s authorized representatives shall at all times have access to all books and records of a permittee for the purpose of examining them. Such records shall be accessible where and when sealed tickets are sold or during normal business hours. (Effective March 22, 1989; Amended December 8, 1998; Amended November 2, 2012)

Sec. 7-169h-21. Bank accounts, expenses (a) Proceeds from sealed ticket sales shall be kept in a separate special sealed ticket bank

account which shall be in the form of a checking account. All receipts from sealed ticket sales less the amount awarded as cash prizes shall be deposited in the special sealed ticket account. The commingling of any funds derived from the sale of sealed tickets with any other funds of the permitted organization is strictly prohibited. Money shall be withdrawn from this special account for only the following purposes:

(1) Payment of expenses authorized pursuant to subsection (b) of this section. (2) Disbursement from net proceeds for charitable, civic, educational, fraternal, veterans’,

religious, volunteer fire department or grange purposes. (b) Payment of expenses. Money for reasonable and necessary expenses ordinarily

incidental to the sale of sealed tickets may be paid from the gross receipts of sealed ticket sales only by checks having preprinted consecutive numbers drawn on the special sealed ticket account required and authorized pursuant to subsection (a) of this section. Said checks must be payable to the specific person or organization providing the goods or rendering the services which gave rise to the expense item, and at no time may checks be payable to cash. Only those expenses which are reasonable and necessary and ordinarily incidental to the

R.C.S.A. §§ 7-169h-a1—7-169h-29 Revised: 2015-10-7 - 6 -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

Department of Consumer Protection §7-169h-25

sale of sealed tickets may be paid from the gross receipts of sealed ticket sales. (Effective March 22, 1989; Amended December 8, 1998; Amended November 2, 2012)

Sec. 7-169h-22. Amendment of permit application Sealed ticket sales may be conducted under conditions other than as stated in the original

application for a sealed ticket permit if an application to amend, prescribed by the commissioner, is filed with the and if the subject matter of the proposed amendment could lawfully and properly have been included in the original application and permit, and upon payment of such additional fee, if any, as would have been payable if it had been so included. In no case shall there be a refund of fees. After an investigation of all the facts, the department may approve or disapprove the application to amend. (Effective October 1, 1987; Amended November 2, 2012)

Sec. 7-169h-23. Notice of change in organization status No permittee shall sell sealed tickets after any substantial change has come about in its

status which is at variance with the facts contained in the original application for a sealed ticket permit until an application to amend is filed with the commissioner. After an investigation, the department may, if the facts so warrant, revoke such organization’s sealed ticket permit in accordance with Section 7-169h-26 of the Regulations of Connecticut State Agencies. (Effective October 1, 1987; Amended November 2, 2012)

Sec. 7-169h-24. Notice of change in personal status No individual shall sell, offer for sale or distribute a sealed ticket when any substantial

change has come about in said individual’s personal status which is at variance with the facts contained in the original application for a sealed ticket sales permit and permit number until an application to amend has been filed with the commissioner. After an investigation, the department may, if the facts so warrant, revoke such sealed ticket sales permit and permit number in accordance with Section 7-169h-26 of the Regulations of Connecticut State Agencies. (Effective October 1, 1987; Amended November 2, 2012)

Sec. 7-169h-25. Monthly return to be filed Any permittee, and its member in charge, shall furnish to the department a monthly return,

the form of which shall be prepared by the commissioner, including, but not limited to, the following:

1. The amount of the gross receipts derived from sealed ticket sales which shall include income from the sale of tickets or rights in any manner connected with participation in each such game or the right to participate therein.

2. Each item of expense incurred or paid, and each item of expenditure made or to be made, the name of each person to whom each such item has been paid or is to be paid, with

Revised: 2015-10-7 R.C.S.A. §§ 7-169h-a1—7-169h-29 - 7 -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

§7-169h-25a Department of Consumer Protection

a detailed description of the merchandise purchased or the services rendered therefor. 3. The net profit derived from sealed ticket sales, and the uses to which the net profit has

been or is to be applied. Such monthly return shall be furnished by the tenth of the next succeeding month.

(Effective March 22, 1989; Amended November 2, 2012)

Sec. 7-169h-25a. Qualifications for registration (a) If the department finds that the financial responsibility, experience, character and

general fitness of the applicant are such that the participation of such person is consistent with the public interest, convenience or necessity and with the best interest of charitable gaming, in conformity with the purposes of chapter 98 of the Connecticut General Statutes, it shall thereupon grant a registration. If the department finds that the applicant fails to meet any of such conditions, it shall not grant such registration and it shall notify the applicant of the denial.

(b) The commissioner may defer a decision of whether to grant or deny a registration if criminal charges are pending against the applicant. (Effective November 2, 2012)

Sec. 7-169h-25b. Sealed ticket game products manufacturer (a) Each applicant for registration as a sealed ticket game products manufacturer shall

apply to the commissioner on such forms as the commissioner prescribes. A manufacturer’s application shall be accompanied by an annual fee of five thousand dollars, payable to the State Treasurer. Each applicant for an initial sealed ticket game products manufacturer registration shall submit to state and national criminal history records checks conducted in accordance with section 29-17a of the Connecticut General Statutes before such registration may be issued.

(b) No sealed ticket game products manufacturer shall sell any type of sealed ticket game products in this state that have not been approved by the commissioner.

(c) A sealed ticket game products manufacturer shall not sell sealed tickets to any person in this state except a sealed ticket game products distributor registered with the department.

(d) Tickets shall be produced to meet the standards on pull-tabs adopted by the North American Gaming Regulators Association, including, but not limited to, specifications on game construction, opacity, randomization, printing, cutting, and minimum information required on a ticket.

(e) A sealed ticket game products manufacturer shall submit a mailer or flyer to the commissioner for approval of each sealed ticket game to be manufactured for distribution and sale in this state, which shall include an artwork representation of the game detailing (1) the name of the sealed ticket game, (2) a reproduction of a game ticket, (3) the price per ticket, (4) the number of winners per packet, (5) the total number of winners and total payout, (6) the winning ticket ratio, (7) the percentage retained by the permittee as gross profit for a fully sold game, which shall be at least ten percent of the resale value of tickets

R.C.S.A. §§ 7-169h-a1—7-169h-29 Revised: 2015-10-7 - 8 -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

Department of Consumer Protection §7-169h-25c

sold, (8) the percentage of the resale value of tickets to be awarded as prizes, which shall be at least forty- five percent, and (9) any other information the commissioner may reasonably require.

(f) A sealed ticket game products manufacturer shall establish a process to track each packet of sealed tickets by serial number or form number from the manufacturer to the next point of sale and shall retain this information for thirty six months.

(g) Defective tickets shall be addressed in accordance with procedures established by the commissioner. The commissioner reserves the right to suspend sealed ticket sales or remove a game from sale due to manufacturer defects.

(h) Sealed ticket game products sales shall not be conducted under conditions other than as stated in the original application for a sealed ticket game products manufacturer registration unless an application to amend, prescribed by the commissioner, is filed with the commissioner and if the subject matter of the proposed amendment could lawfully and properly have been included in the original application and registration. After an investigation of the facts, the department may approve or disapprove the application to amend based upon the information provided in the application to amend.

(i) No sealed ticket game products manufacturer shall sell sealed ticket game products to a sealed ticket game products distributor after any substantial change has come about in the sealed ticket game products manufacturer’s status which is at variance with the facts contained in the original application for a sealed ticket games products manufacturer registration until an application to amend is filed with the commissioner. After an investigation, the department may, if the facts so warrant, revoke such manufacturer’s registration in accordance with the provisions of Section 7-169h-26 of the Regulations of Connecticut State Agencies.

(j) A sealed ticket game products manufacturer shall file a report or reports with the commissioner on a quarterly basis, during the months of January, April, July and October, in a manner prescribed by the commissioner. Each such report shall include (1) the name, address and registration number of the sealed ticket game products distributor to whom sealed tickets were sold, (2) the name of the game, serial numbers and form numbers for all games sold to a sealed ticket game products distributor, (3) the date of sale, and (4) any other information the commissioner may require.

(k) The facilities of a sealed ticket game products manufacturer shall be subject to inspection by the commissioner or the commissioner’s duly designated agent during normal business hours. (Effective November 2, 2012)

Sec. 7-169h-25c. Sealed ticket game products distributor (a) Each applicant for registration as a sealed ticket game product distributor shall apply

to the commissioner on such forms as the commissioner prescribes. A sealed ticket game products distributor’s application shall be accompanied by an annual fee of two thousand five hundred dollars, payable to the State Treasurer. Each applicant for an initial sealed

Revised: 2015-10-7 R.C.S.A. §§ 7-169h-a1—7-169h-29 - 9 -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

§7-169h-25c Department of Consumer Protection

ticket game products distributor registration shall submit to state and national criminal history records checks conducted in accordance with section 29-17a of the Connecticut General Statutes before such registration is issued.

(b) A sealed ticket game products distributor shall have a physical office in this state and such office shall be subject to inspection by the commissioner or the commissioner’s duly designated agent during normal business hours. No permittee or person affiliated with a permittee shall be permitted to be a sealed ticket game products distributor.

(c) All sealed tickets purchased by a sealed ticket game products distributor for sale or use in this state shall be stored or warehoused in this state prior to their sale or distribution to any permittee during normal business hours, and such warehouse or storage facility shall be subject to inspection by the commissioner or the commissioner’s duly designated agent during normal business hours.

(d) A sealed ticket game products distributor shall not purchase sealed tickets for sale or use in this state from any person except a sealed ticket game products manufacturer registered with the department.

(e) All sealed tickets sold in this state shall be approved by the commissioner. (f) A sealed ticket game products distributor shall develop procedures to track each

packet of sealed tickets to sealed ticket permittees and account for all sealed ticket packets purchased, sold and in inventory. A distributor shall explain any discrepancy of packets not accounted for.

(g) Sealed ticket game products sales shall not be conducted under conditions other than as stated in the original application for a sealed ticket game products distributor registration unless an application to amend, prescribed by the commissioner, is filed with the commissioner and if the subject matter of the proposed amendment could lawfully and properly have been included in the original application and registration. After an investigation of the facts, the department may approve or disapprove the application to amend based upon the information provided in the application to amend.

(h) No sealed ticket game products distributor shall sell sealed tickets after any substantial change has come about in its status which is at variance with the facts contained in the original application for a sealed ticket games products distributor registration until an application to amend is filed with the commissioner. After an investigation, the department may, if the facts so warrant, revoke such distributor’s registration in accordance with the provisions of Section 7-169h-26 of the Regulations of Connecticut State Agencies.

(i) A sealed ticket game products distributor shall file a report with the commissioner on a quarterly basis, during the months of January, April, July and October, on a form prescribed by him, and pay to the State Treasurer a fee of thirty percent of the gross revenues derived from the sale of sealed tickets. Such report shall include (1) the date of sale, (2) the name of the game sold, (3) the serial numbers of all tickets sold, (4) the form numbers for all games sold, (5) the ticket count per packet for each game sold, (6) the name, address and permit number of each permittee to whom sealed tickets were sold, (7) the name and registration number of the sealed ticket game products manufacturer, and (8) any other

R.C.S.A. §§ 7-169h-a1—7-169h-29 Revised: 2015-10-7 - 10 -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

Department of Consumer Protection §7-169h-25d

information the commissioner may require. (j) The commissioner or his authorized representatives shall at all times have access to

all books and records of any sealed ticket game products distributor. (k) The department may investigate any matter arising from the sale, purchase or game

play of sealed tickets to ensure the integrity of the activity. (Effective November 2, 2012)

Sec. 7-169h-25d. Sealed ticket dispensing machine equipment manufacturer (a) Each applicant for registration as a sealed ticket dispensing machine equipment

manufacturer shall apply to the commissioner on such forms as the commissioner prescribes. A manufacturer’s application shall be accompanied by an annual fee of one thousand two hundred fifty dollars, payable to the State Treasurer. Each applicant for an initial sealed ticket dispensing machine equipment manufacturer registration shall submit to state and national criminal history records checks conducted in accordance with section 29-17a of the Connecticut General Statutes before such registration is issued.

(b) No sealed ticket dispensing machine equipment manufacturer shall sell any type of sealed ticket dispensing machine that has not been approved by the commissioner. A sealed ticket dispensing machine equipment manufacturer shall submit to the commissioner for approval each sealed ticket dispensing machine to be manufactured for distribution and sale in this state.

(c) A sealed ticket dispensing machine equipment manufacturer shall not sell or lease a sealed ticket dispensing machine to any person in this state except a sealed ticket dispensing machine equipment dealer or a permittee.

(d) A sealed ticket dispensing machine equipment manufacturer shall submit a sealed ticket dispensing machine placement sheet to the commissioner for each sealed ticket machine sold, distributed, or leased to any permittee.

(e) Sealed ticket game product sales shall not be conducted under conditions other than as stated in the original application for a sealed ticket dispensing machine equipment manufacturer registration unless an application to amend, prescribed by the commissioner, is filed with the commissioner and if the subject matter of the proposed amendment could lawfully and properly have been included in the original application and registration. After an investigation of the facts, the department may approve or disapprove the application to amend based upon the information provided in the application to amend.

(f) No sealed ticket dispensing machine equipment manufacturer shall sell sealed ticket dispensing machine equipment to a sealed ticket dispensing machine equip- ment dealer after any substantial change has come about in its status which is at variance with the facts contained in the original application for a sealed ticket dispensing machine equipment manufacturer registration until an application to amend is filed with the commissioner. After an investigation, the department may, if the facts so warrant, revoke such manufacturer’s registration in accordance with the provisions of section 7-169h-26 of the Regulations of

Revised: 2015-10-7 R.C.S.A. §§ 7-169h-a1—7-169h-29 - 11 -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

§7-169h-25e Department of Consumer Protection

Connecticut State Agencies. (Effective November 2, 2012)

Sec. 7-169h-25e. Sealed ticket dispensing machine equipment dealer (a) Each applicant for registration as a sealed ticket dispensing machine equipment dealer

shall apply to the commissioner on such forms as the commissioner prescribes. A dealer’s application shall be accompanied by an annual fee of six hundred twenty- five dollars, payable to the State Treasurer. Each applicant for an initial sealed ticket dispensing machine equipment dealer registration shall submit to state and national criminal history records checks conducted in accordance with section 29-17a of the Connecticut General Statutes before such registration is issued.

(b) A sealed ticket dispensing machine equipment dealer shall not purchase sealed ticket dispensing machines for sale, lease, distribution, or use in this state from any person except a sealed ticket dispensing machine equipment manufacturer.

(c) A sealed ticket dispensing machine equipment dealer shall submit a sealed ticket dispensing machine placement sheet to the commissioner, on a form prescribed by him, for each sealed ticket dispensing machine sold or leased to any permittee.

(d) Sealed ticket dispensing machine sales shall not be conducted under conditions other than as stated in the original application for a sealed ticket dispensing machine equipment dealer registration unless an application to amend, prescribed by the commissioner, is filed with the commissioner, and if the subject matter of the proposed amendment could lawfully and properly have been included in the original application and registration. After an investigation of the facts, the department may approve or disapprove the application to amend based upon the information provided in the application to amend.

(e) No sealed ticket dispensing machine equipment dealer shall sell sealed ticket dispensing machines after any substantial change has come about in its status which is at variance with the facts contained in the original application for a sealed ticket dispensing machine equipment dealer registration until an application to amend is filed with the commissioner. After an investigation, the department may, if the facts so warrant, revoke such dealer’s registration in accordance with the provisions of Section 7-169h-26 of the Regulations of Connecticut State Agencies.

(f) The commissioner or the commissioner’s duly designated agent may investigate any matter arising from the sale of sealed ticket dispensing machines to ensure the integrity of the activity. (Effective November 2, 2012)

Sec. 7-169h-26. Violations of statutes, rules and regulations, false statement (a) Whenever it appears to the commissioner after an investigation that any person is

violating or is about to violate any provisions of section 7-169h of the Connecticut General Statutes or Sections 7-169h-a1 to 7-169h-28, inclusive, of the Regulations of Connecticut State Agencies, the commissioner may in his discretion, to protect the public welfare, order

R.C.S.A. §§ 7-169h-a1—7-169h-29 Revised: 2015-10-7 - 12 -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

Department of Consumer Protection §7-169h-28

that any sealed ticket permit issued be immediately suspended or revoked and that the person cease and desist from the actions constituting such violation or which would constitute such violation. After such an order is issued, the person named therein may, within fourteen days after receipt of the order, file a written request for a hearing. Such hearing shall be held in accordance with the provisions of chapter 54 of the Connecticut General Statutes.

(b) Whenever the commissioner finds as the result of an investigation that any person has violated any provision of section 7-169h of the Connecticut General Statutes or sections 7-169h-a1 to 7-169h-28, inclusive, of the Regulations of Connecticut State Agencies, or made any false statement in any application for a registration or permit or in any report required by the commissioner, the commissioner may send a notice to such person by certified mail, return receipt requested. Any such notice shall include (1) a reference to the section or regulation alleged to have been violated or the application or report in which an alleged false statement was made, (2) a short and plain statement of the matter asserted or charged, (3) the fact that any registration or permit issued pursuant to this section may be suspended or revoked for such violation or false statement and the maximum penalty that may be imposed for such violation or false statement, and (4) the time and place for the hearing. Such hearing shall be fixed for a date not earlier than fourteen days after the notice is mailed.

(c) The commissioner shall hold a hearing upon the charges made unless such person fails to appear at the hearing. Such hearing shall be held in accordance with the provisions of chapter 54 of the Connecticut General Statutes. If such person fails to appear at the hearing or if, after the hearing, the commissioner finds that such person committed such a violation or made such a false statement, the commissioner may, in his discretion, suspend or revoke such registration or permit and order that a civil penalty of not more than five hundred dollars be imposed upon such person for such violation or false statement. The commissioner shall send a copy of any order issued pursuant to this subdivision by certified mail, return receipt requested, to any person named in such order.

(d) Whenever the commissioner revokes a registration or permit issued pursuant to section 7-169h of the Connecticut General Statutes, he shall not issue any registration or permit to such former registrant or permittee for one year after the date of such revocation. (Effective October 1, 1987; Amended December 8, 1998; Amended November 2, 2012)

Sec. 7-169h-27. Forms, statements under oath All forms, including control forms, used in compliance with the Connecticut General

Statutes and the Regulations of Connecticut State Agencies governing the manufacture, distribution and sale of sealed tickets shall be furnished by the department, and when required, all statements therein shall be made under oath (Effective October 1, 1987; Amended November 2, 2012)

Sec. 7-169h-28. Waiver The commissioner may waive any rule contained herein in his discretion, except any rule

Revised: 2015-10-7 R.C.S.A. §§ 7-169h-a1—7-169h-29 - 13 -

Regulations of Connecticut State Agencies TITLE 7. Municipalities

§7-169h-29 Department of Consumer Protection

specified in the Connecticut General Statutes, upon his finding that such waiver is in the best interests of the state of Connecticut and the distribution and sale of sealed tickets. (Effective October 1, 1987; Amended November 2, 2012)

Sec. 7-169h-29. Repealed Repealed December 8, 1998.

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