HB 6615 — AN ACT CONCERNING DOG RACING.

(1) A tax on the total money wagered in the pari-mutuel pool on each [and LCOevery] 3906day {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06618the oflicensee 19conducts R01-HB.docxracing }events, Billpursuant No.to the following schedule:

6615T1 every]Total dayWagered Tax T2 0 to $100,001 3.25% on the licenseeentire conductspool racingT3 events,$100,001 pursuantto $200,001 3.75% on the entire pool T4 $200,001 to $300,001 4.25% on the followingentire schedule:pool T5 $300,001 to $400,001 4.75% on the entire pool HB6615 / File No.

T188 Total8 WageredHB6615 TaxFile T2No. 0 to $100,001 3.25% on the entire pool T3 $100,001 to $200,001 3.75% on the entire pool T4 $200,001 to $300,001 4.25% on the entire pool T5 $300,001 to $400,001 4.75% on the entire pool T6 $400,001 to $500,001 5.25% on the entire pool T7 $500,001 to $600,001 5.75% on the entire pool T8 $600,001 to $700,001 6.25% on the entire pool T9 $700,001 to $800,001 6.75% on the entire pool T10 $800,001 to $900,001 7.25% on the entire pool T11 $900,001 to $1,000,001 7.75% on the entire pool T12 $1,000,001 and over 8.75% on the entire pool and (2) a tax equal to one-half of the breakage to the dime resulting from such wagering.

88 T6 $400,001 to $500,001 5.25% on the entire pool T7 $500,001 to $600,001 5.75% on the entire pool T8 $600,001 to $700,001 6.25% on the entire pool T9 $700,001 to $800,001 6.75% on the entire pool T10 $800,001 to $900,001 7.25% on the entire pool T11 $900,001 to $1,000,001 7.75% on the entire pool T12 $1,000,001 and over 8.75% on the entire pool and (2) a tax equal to one-half of the breakage to the dime resulting from such wagering.

(1) (A) A tax at the rate of two per cent on the total money wagered in the pari-mutuel pool on each and every day the licensee conducts racing events or (B) on or after July 1, 1993, in the case of any licensee licensed prior to July 5, 1991, (i) a tax at the rate of two per cent on any amount up to and including fifty million dollars of the total money wagered in the pari-mutuel pool in any state fiscal year during which a licensee licensed prior to July 5, 1991, conducts racing events, (ii) a tax at the rate of three per cent on any amount in excess of fifty million dollars LCOand 3906up {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06615-to 9and including eighty million dollars of 19the R01-HB.docxtotal }money Billwagered in the pari-mutuel pool in any state fiscal year during which a licensee licensed prior to July 5, 1991, conducts racing events, and (iii) a tax at the rate of four per cent on any amount in excess of eighty million dollars of the total money wagered in the pari-mutuel pool in any state fiscal year during which a licensee licensed prior to July 5, 1991, conducts racing events, and (2) a tax equal to one-half of the breakage to the dime resulting from such wagering.] [(f)] (e) Each licensee operating a fronton at which the game of jai alai is licensed to be played under the pari-mutuel system shall pay to the HB6615 / File No.

661588 and9 upHB6615 toFile andNo. including eighty million dollars of the total money wagered in the pari-mutuel pool in any state fiscal year during which a licensee licensed prior to July 5, 1991, conducts racing events, and (iii) a tax at the rate of four per cent on any amount in excess of eighty million dollars of the total money wagered in the pari-mutuel pool in any state fiscal year during which a licensee licensed prior to July 5, 1991, conducts racing events, and (2) a tax equal to one-half of the breakage to the dime resulting from such wagering.] [(f)] (e) Each licensee operating a fronton at which the game of jai alai is licensed to be played under the pari-mutuel system shall pay to the state and there is hereby imposed:

88 state and there is hereby imposed:

(1) A tax at the rate of three and one-half per cent on the total money wagered in the pari-mutuel pool on each [and every] day the licensee broadcasts racing events, and (2) a tax equal to one-one-half half of the breakage to the dime resulting from such wagering.

If any such tax is not paid when due, the commissioner shall impose a delinquency assessment upon the licensee in the amount of ten per cent of such tax or ten dollars, whichever amount is greater, plus LCOinterest 3906at {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-0661510the rate of 19one R01-HB.docxand }one-half Billper No.cent of the unpaid principal of such tax for each month or fraction of a month from the date such tax is due to the date of payment.

6615 interest at the rate of one and one-half per cent of the unpaid principal of such tax for each month or fraction of a month from the date such tax is due to the date of payment.

[(i)] (h) The commissioner shall devise a system of accounting and shallHB6615 supervise/ bettingFile atNo. such track, fronton or off-track betting facility in such manner that the rights of the state are protected and shall collect all fees and licenses under such regulations as [he] the commissioner shall prescribe, in accordance with the provisions of chapter 54.

[(j)]88 (i)10 TheHB6615 amountFile ofNo. unclaimed moneys, as determined by the commissioner, held by any licensee other than by licensees authorized to operate a jai alai fronton [, dog race track] or the off-track betting system on account of outstanding and uncashed winning tickets, shall be due and payable to the commissioner, for deposit in the General Fund of the state, at the expiration of one year after the close of the meeting during which such tickets were issued.

88 shall supervise betting at such track, fronton or off-track betting facility in such manner that the rights of the state are protected and shall collect all fees and licenses under such regulations as [he] the commissioner shall prescribe, in accordance with the provisions of chapter 54.

[(j)] (i) The amount of unclaimed moneys, as determined by the commissioner, held by any licensee other than by licensees authorized to operate a jai alai fronton [, dog race track] or the off-track betting system on account of outstanding and uncashed winning tickets, shall bedueandpayabletothecommissioner,fordepositintheGeneralFund of the state, at the expiration of one year after the close of the meeting during which such tickets were issued.

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 [his] the commissioner's satisfaction that the failure to pay such moneys to the state within the time required was due to reasonable cause and was LCOnot 3906intentional {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06611or ofdue 19to R01-HB.docxneglect. } Bill No.

6615 not intentional or due to neglect.

[(l)] (k) (1) The commissioner shall pay each municipality in which a horse race track isislocated,one-quarterofoneper located, one-quarter of one per cent ofofthetotalmoney the total money wagered on horse racing events at such race track, except the commissioner shall pay each such municipality having a population in excessHB6615 of/ fiftyFile thousandNo. one per cent of the total money wagered at such horse racing events in such municipality.

The88 commissioner11 shallHB6615 payFile eachNo. municipality in which a jai alai fronton [or dog race track] is located one-half of one per cent of the total money wagered on jai alai games [or dog racing events] at such fronton, [or dog race track,] except the commissioner shall pay each such municipality having a population in excess of fifty thousand one per cent of the total money wagered on jai alai games [or dog racing events] at such fronton [or dog race track] located in such municipality.

88 excess of fifty thousand one per cent of the total money wagered at such horse racing events in such municipality.

The commissioner shall pay eachmunicipality inwhichajaialaifronton[or dograce track]islocated one-half of one per cent of the total money wagered on jai alai games [or dog racing events] at such fronton, [or dog race track,] except the commissioner shall pay each such municipality having a population in excess of fifty thousand one per cent of the total money wagered on jai alai games [or dog racing events] at such fronton [or dog race track] located in such municipality.

The commissioner shall pay to both the city of New Haven and the town of Windsor Locks an additional one-half of one per cent of the total money wagered less any amount paid as a refund or a cancellation in any facility equipped with screens for simulcasting after October 1, 1997, located within a fifteen-milefifteen- mile radius of facilities in New Haven and Windsor Locks.

Payment shall be made not less than four times a year and not more than twelve times a year as determined by the commissioner, and shall be made from the tax imposed pursuant to LCOsubsection 3906(d) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06612of this section for horse racing, subsection (e) of 19this R01-HB.docxsection }[for Billdog No.racing, subsection (f) of this section] for jai alai games and subsection [(g)] (f) of this section for off- track betting.

6615(2) subsection[If, (d)for any calendar year after the surrender of thisa sectionlicense forto horseconduct racing,jai alai events by any person or business organization pursuant to subsection (e)(c) of this section [for12-574c and prior to the opening of any dog racing,race subsectiontrack (f)by such person or business organization, any other person or business organization licensed to conduct jai alai events is authorized to conduct a number of thisperformances section]greater than the number authorized for such licensee in the previous calendar year, the commissioner shall pay the municipality in which the jai alai gamesfrontonfor andwhich subsectionsuch [(g)]license (f)was surrendered was located, rather than the municipality in which the jai alai fronton conducting the increased performances is located, one-half of thisone sectionper cent of the total money wagered on jai alai games for off-tracksuch betting.increased performances at the fronton which conducted the additional performances, except the HB6615 / File No.

(2)88 [If,12 forHB6615 anyFile calendarNo. year after the surrender of a license to conduct jai alai events by any person or business organization pursuant to subsection (c) of section 12-574c and prior to the opening of any dog race track by such person or business organization, any other person or business organization licensed to conduct jai alai events is authorized to conduct a number of performances greater than the number authorized for such licensee in the previous calendar year, the commissioner shall pay the municipality in which the jai alai fronton for which such license was surrendered was located, rather than the municipality in which the jai alai fronton conducting the increased performances is located, one-half of one per cent of the total money wagered on jai alai games for such increased performances at the fronton which conducted the additional performances, except the commissioner shall pay each such municipality having a population in excess of fifty thousand one per cent of the total money wagered on jai alai games for such increased performances at such fronton.

88 commissioner shall pay each such municipality having a population in excess of fifty thousand one per cent of the total money wagered on jai alai games for such increased performances at such fronton.

In no case shall such credit and such reimbursement exceed the amount of the licensee's loss, and in no fiscal year shall these provisions affect the total fees paid to the state by the authorized operator of the off-track LCObetting 3906system {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06613on ofits 19off-track R01-HB.docxbetting }activities. Bill No.

6615 betting system on its off-track betting activities.

(F) stable employees, including exercise boy, groom, stable foreman, hot walker,HB6615 outrider,/ twentyFile dollars;No.

88 13 HB6615 File No.

88 walker, outrider, twenty dollars;

For the purposes of this subdivision, "concessionaire affiliate" means a business organization, other than a LCOshareholder 3906in {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06614a ofpublicly 19traded R01-HB.docxcorporation, }that Billmay No.exercise control in or over a concessionaire;

6615and shareholder"concessionaire" inmeans aany publiclyindividual tradedor corporation,business organization granted the right to operate an activity at [a dog race track or] an off-track betting facility for the purpose of making a profit that mayreceives or, in the exercise controlof inreasonable business judgment, can be expected to receive more than twenty-five thousand dollars or overtwenty- afive concessionaire;per cent of its gross annual receipts from such activity at such [track or] facility.

and "concessionaire" means any individual or business organization granted the right to operate an activity at [a dog race track or] an off-track betting facility for the purpose of making a profit that receives or, in the exercise of reasonable business judgment, can be expected to receive more than twenty-five thousand dollars or twenty-five per cent of its gross annual receipts from such activity at such [track or] facility.

The criminalcriminalhistoryrecordschecksrequiredpursuant history records checks required pursuant to thisthissubsection subsection shall be conducted in accordance with section 29-17a.

Subsection (a) of section 12-572 of the general statutes is repealed andandthefollowing theissubstituted followinginlieuthereof(EffectiveOctober is substituted in lieu thereof (Effective October 1, 2023):

(a)HB6615 The/ commissionerFile mayNo. establish or authorize the establishment of such off-track betting facilities throughout the state for the purpose of receiving moneys wagered on the results of races or jai alai games as [he shall deem] the commissioner deems will serve the convenience of the public and provide maximum economy and efficiency of operation, provided the establishment of such a facility in any municipality for the purpose of receiving moneys on the results of races or jai alai games shall be subject to the approval of the legislative body of such municipality which shall be given only after a public hearing on the same.

88 14 HB6615 File No.

88 (a) The commissioner may establish or authorize the establishment of such off-track betting facilities throughout the state for the purpose of receiving moneys wagered on the results of races or jai alai games as [he shall deem] the commissioner deems will serve the convenience of the public and provide maximum economy and efficiency of operation, provided the establishment of such a facility in any municipality for the purpose of receiving moneys on the results of races or jai alai games shall be subject to the approval of the legislative body of such municipality which shall be given only after a public hearing on the same.

If an operator of an off-trackoff- track betting facility intends to conduct wagering on [dog racing events or] jai alai games, such operator (1) shall conduct wagering on [dog racing events or] jai alai games conducted by any association licensee which offers such [racing events or] games for off-off-track LCObetting, 3906providedsuchoperator {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06615obtainsthewrittenconsent ofsuchlicensee, and (2) may conduct wagering on out-of-state [dog racing events or] jai alai games when no such association licensee is conducting such [racing events or] games, provided such operator has complied with the provisions of 19subdivision R01-HB.docx(1) }of Billthis No.subsection.

6615No track betting, provided such operator obtains the written consent of suchan licensee,off- andtrack (2)betting mayfacility shall conduct wagering on out-of-stateany [dog racing eventsevent or] jai alai gamesgame whenif no such association[racing licenseeevent or] game is conductingconducted suchwithin [racingforty eventsmiles or]of games,such providedfacility unless such operator has compliedobtained with the provisionswritten consent of subdivisionthe (1)licensee ofconducting thissuch subsection.[racing event or] game.

NoAn operator of an off-track betting facility shallmay conduct wagering on anyout- [dogof-state dog racing eventevents. or] jai alai game if such [racing event or] game is conducted within forty miles of such facility unless such operator has obtained the written consent of the licensee conducting such [racing event or] game.

An operator of an off-track betting facility may conduct wagering on out-of-state dog racing events.

The commissioner may employ stewards for thoroughbred racing, judges for harness racing [, greyhound racing] and jai alai, and veterinarians who shall be exempt from classified service, and may employ, subject to the provisions of chapter 67, such other employees as mayHB6615 be/ necessaryFile toNo. carry out the provisions of this chapter.

88 15 HB6615 File No.

88 may be necessary to carry out the provisions of this chapter.

Subsection (b) of section 17a-713 of the general statutes is repealed andandthefollowing theissubstituted followinginlieuthereof(EffectiveOctober is substituted in lieu thereof (Effective October 1, 2023):

(1) Imposition of a fee of one hundred thirty-five dollars on each association license, for each performance of jai alai [or dog racing] conducted under the provisions of chapter 226, provided no such LCOlicensee 3906shall {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06616contribute ofmore 19than R01-HB.docxforty-five }thousand Billdollars No.in any one year;

6615 licensee shall contribute more than forty-five thousand dollars in any one year;

(A) In any area of a building or portion of a building, ownedHB6615 and/ operatedFile orNo. leased and operated by the state or any political subdivision of the state;

88 16 HB6615 File No.

88 owned and operated or leased and operated by the state or any political subdivision of the state;

(E) in any area of an establishment with a permit issued for the sale of alcoholic liquor pursuant to section 30-20a, 30-21, 30-21b, 30-22,30- 22, 30-22c, 30-28, 30-28a, 30-33a, 30-33b, 30-35a, 30-37a, 30-30-37e 37e or 30-37f, in any area of an establishment with a permit for the sale of alcoholic liquor pursuant to section 30-22aa issued after May 1, 2003, and, on and after April 1, 2004, in any area of an establishment with a permit issued for the sale of alcoholic liquor pursuant to section 30-22a or 30-26;

(G) within a child care facility or on the grounds of such child care facility, except, if the child care facility is a family child care home, as defined in section 19a-77, such smoking is prohibited only when a LCOchild 3906enrolled {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-066117in ofsuch 19home R01-HB.docxis }present Billduring No.customary business hours;

6615(H) child enrolled in suchany homepassengerelevator;(I)inanyareaofadormitoryinanypublicorprivate isinstitution presentof duringhigher customaryeducation; business hours;

(H) in any passenger elevator;

(I) in any area of a dormitory in any public or private institution of higher education;

(b) (1) No person shall use an electronic nicotine or cannabis delivery systemHB6615 or/ vaporFile product:No.

88 17 HB6615 File No.

88 system or vapor product:

(E) in any area of an establishment with a permit issued for the sale of alcoholic liquor pursuant to section 30-20a, 30-21, 30-21b, 30-22,30- 22, 30-22a, 30-22c, 30-26, 30-28, 30-28a, 30-33a, 30-33b, 30-30-35a, 35a, 30-37a, 30-37e30- 37e or 30-37f, in any area of establishment with a permit issued for the sale of alcoholic liquor pursuant to section 30-22aa issued after May 1, 2003;

(G) within a child care facility or on the grounds of such child care facility, except, if the child care facility is a LCOfamily 3906child {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-0661518care ofhome 19as R01-HB.docxdefined }in Billsection No.19a-77, such use is prohibited only when a child enrolled in such home is present during customary business hours;

6615 family child care home as defined in section 19a-77, such use is prohibited only when a child enrolled in such home is present during customary business hours;

(I) in any area of a dormitory in any public or privateprivateinstitutionofhighereducation;(J)inanyareaof institution[adogracetrack or] a facility equipped with screens for the simulcasting of higheroff-track education;betting race programs or jai alai games;

(J) in any area of [a dog race track or] a facility equipped with screens for the simulcasting of off-track betting race programs or jai alai games;

or (M) in any area of a platform or a shelter at a rail, busway or bus station, owned and operatedoperatedor or leased and operated by the state or any political subdivision of the state.

SectionHB6615 1/ OctoberFile 1,No. 2023 12-574(i) to (s) Sec.

88 18 HB6615 File No.

88 Section 1 October 1, 2023 12-574(i) to (s) Sec.

3 October 1, 2023 12-574a October 1, 2023 Sec.

4 October 1, 2023 12-575 Sec.

10 October 1, 2023 19a-342a(b)(1) October 1, 2023 Sec.

11 October 1, 2023 Repealer section GL Joint Favorable LCOHB6615 3906/ {\\PRDFS1\HCOUSERS\BARRYJN\WS\2023HB-06615-File 19No. of 19 R01-HB.docx }

88 19 HB6615 File No.

88 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

None Explanation The bill results in no fiscal impact to the state or municipalities as greyhound racing has not occurred in Connecticut since 2006.

The Out Years State Impact:

None Municipal Impact:

None HB6615 / File No.

88 20 HB6615 File No.

88 OLR Bill Analysis HB 6615 AN ACT CONCERNING DOG RACING.

SUMMARY This bill repeals the statutes authorizing dog tracks and dog racing in Connecticut, but explicitly allows off-track betting operators to conduct betting on out-of-state dog races.

Current law generally prohibits the Department of Consumer Protection from issuing any new licenses to conduct dog racing.

The bill makes numerous conforming changes, including repealing provisions on the (1) tax and takeout rates for bets at dog racing facilities, (2) fees imposed on dog races to fund chronic gambling rehabilitation programs, and (3) bans on smoking and vaping at dog racetracks.

It also makes technical changes.

EFFECTIVE DATE:

October 1, 2023 BACKGROUND Dog Racing There has not been an active dog racetrack in the state since 2006.

Plainfield Greyhound Park, the state’s first track, opened in 1976 and closed in 2005.

A state jai alai track in Bridgeport was converted into the Shoreline Star greyhound racing facility in 1995.

The racetrack closed in 2005, but the facility was renamed Winners Shoreline Star and operated simulcast wagering until 2021 on horse races, greyhound races, and jai alai.

COMMITTEE ACTION General Law Committee Joint Favorable Yea 23 Nay 0 (03/02/2023) HB6615 / File No.

88 21