SB 1237 — AN ACT CONCERNING THE CONNECTICUT LOTTERY CORPORATION AND DELINQUENCY ASSESSMENTS, TICKET DISTRIBUTION SERVICES, OCCUPATIONAL LICENSES, PROHIBITED ADVERTISING PRACTICES AND LOTTERY TICKET REDEMPTION.
Last action — FILE NO. 575
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✓Introduced
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2In Committee
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3Passed Senate
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4Passed House
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5To Executive
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6Enacted
This bill died with 2025 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.
Bill Text
What changed in the latest version
581 added · 395 removed581 line(s) added, 395 removed.
Senate General Assembly RaisedFile Bill No.
1237575 January Session, 2025 LCOSubstitute Senate Bill No.
42821237 ReferredSenate, toApril 8, 2025 The Committee on GENERALGeneral LAWLaw Introducedreported by:through SEN.
(GL)MARONEY ANof ACTthe CONCERNING14th THEDist., CONNECTICUTChairperson LOTTERYof CORPORATIONthe ANDCommittee DELINQUENCYon ASSESSMENTS,the TICKETpart DISTRIBUTIONof SERVICES,the OCCUPATIONALSenate, LICENSESthat ANDthe PROHIBITEDsubstitute ADVERTISINGbill PRACTICES.ought to pass.
AN ACT CONCERNING THE CONNECTICUT LOTTERY CORPORATION AND DELINQUENCY ASSESSMENTS, TICKET DISTRIBUTION SERVICES, OCCUPATIONAL LICENSES, PROHIBITED ADVERTISING PRACTICES AND LOTTERY TICKET REDEMPTION.
[(a)] (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 [in accordance with regulations adoptedsSB1237 under/ sectionFile 12-568a] by failure to remit all moneys due and owing upon the settlement date established by the Connecticut Lottery LCO No.
4282575 1 ofsSB1237 14File RaisedNo. Bill No.1237 Corporation, the president shall notify the commissioner of the breach of fiduciary duty.
575 adopted under section 12-568a] 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.
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, providedexcept (A)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 apayment schedule permitting anagent topay 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 grantedbygranted thepresident,and(B)anagentby who fails to pay the principalpresident. amount due but unremitted and the penalty in accordance with a payment schedule entered into pursuant to subparagraph (A) of this subdivision shall be ineligible for a further hardship waiver LCO No.
4282An 2agent ofwho 14fails Raisedto Billpay No.1237the principal amount due but unremitted and the penalty in accordance with a payment schedule entered into pursuant to this subdivision.subdivision shall sSB1237 / File No.
575 2 sSB1237 File No.
575 be ineligible for a further hardship waiver pursuant to this subdivision.
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.
[(b)] (c) The commissioner shall adopt regulations in accordance with LCOthe No.provisions of chapter 54 to carry out the purposes of this section.
4282sSB1237 3/ ofFile 14No. Raised Bill No.1237 the provisions of chapter 54 to carry out the purposes of this section.
Sec.575 3 sSB1237 File No.
575 Sec.
(3) Class III for persons specified in subdivision (3) of subsection (d) of this section who, in the LCOjudgment No.of the commissioner, will not exercise authority over or direct the management and policies of the Connecticut Lottery Corporation;
4282and 4(4) ofClass 14IV Raisedfor Billpersons No.1237specified judgmentin ofsubdivision the(3) commissioner,of willsubsection not(d) exercisesSB1237 authority/ overFile orNo. direct the management and policies of the Connecticut Lottery Corporation;
and575 (4)4 ClasssSB1237 IVFile forNo. persons specified in subdivision (3) of subsection (d) of this section who, in the judgment of the commissioner, will exercise authority over or direct the management and policies of the Connecticut Lottery Corporation.
575 of this section who, in the judgment of the commissioner, will exercise authority over or direct the management and policies of the Connecticut Lottery Corporation.
(f) Each applicant for a Class III or Class IV occupational license, and each employee of the corporation holding such a license on January 1, 2026, shall disclose, in a form and manner prescribed by the commissioner, the forms of gaming under this chapter and chapter 229b thaton which such applicant or such licensed employee will work on as an employee of the corporation.
For an applicant approved for a Class III or Class IV occupational license, or for an employee of the corporation who currently holds such a license, the commissioner may issue a separate endorsement authorizing such licensee to engage in the corporation's operation, under chapter 229b, of Internet games or retail sports wagering, as such terms are defined underin section 12-850, and such employee shall not be required to apply for a license pursuant to section 12-858, as amended by thisthisact,or act,section12-859,asamended or section 12-859, as amended by this act, in order to engage in such operation.
All Class III or Class IV occupational licensees shall report to the department any criminal conviction not later than two business days after the order or judgment of such conviction is rendered.
LCO[(f)] No.(g) No person or business organization may be a lottery sales agent unless such person or organization is licensed as a lottery sales agent by the commissioner.
4282sSB1237 5/ ofFile 14No. Raised Bill No.1237 [(f)] (g) No person or business organization may be a lottery sales agent unless such person or organization is licensed as a lottery sales agent by the commissioner.
[(g)]575 (h)5 InsSB1237 determiningFile whetherNo. to grant a vendor, affiliate, lottery sales agent or occupational license to any such person or business organization, the commissioner may require an applicant to provide information as to such applicant and person in charge related to:
575 [(g)] (h) In determining whether to grant a vendor, affiliate, lottery sales agent or occupational license to any such person or business organization, the commissioner may require an applicant to provide information as to such applicant and person in charge related to:
The commissioner may require each employee issued a Class IV occupational license to submit information as to such employee's LCOfinancial No.standing and credit annually.
4282 6 of 14 Raised Bill No.1237 financial standing and credit annually.
[(i)] (j) (1) Upon petition of the corporation, a vendor licensee or an affiliatesSB1237 licensee,/ theFile departmentNo. may authorize an applicant for an occupational license to provisionally performthe work permitted under the license applied for, if:
575 6 sSB1237 File No.
575 affiliate licensee, the department may authorize an applicant for an occupational license to provisionally performthe work permitted under the license applied for, if:
LCO(4) No.An individual whose provisional authorization expires pursuant to subparagraph (B) of subdivision (2) of this subsection may apply for anadditionalprovisionalauthorization.Thedepartmentmayissuesuch additional provisional authorization upon a determination that the conditions of subparagraph (B) of subdivision (1) of this subsection exist.
4282sSB1237 7/ ofFile 14 Raised Bill No.
1237575 (4)7 AnsSB1237 individualFile whoseNo. provisional authorization expires pursuant to subparagraph (B) of subdivision (2) of this subsection may apply for anadditionalprovisionalauthorization.Thedepartmentmayissuesuch additional provisional authorization upon a determination that the conditions of subparagraph (B) of subdivision (1) of this subsection exist.
575 [(j)] (k) When an incident occurs, or is reasonably suspected to have occurred, that causes a disruption in the operation, security, accuracy, integrity or availability of the lottery gaming system, the vendor licensed to provide such lottery gaming system shall, immediately upon discovery of such incident, but not later than twenty-four hours after discovery of such incident, provide the department with a written incident report including the details of the incident and the vendor's proposed corrections.
(2) Any such applicant aggrieved by the action of the commissioner concerning an application for a license, or any person or business LCOorganization No.whose license is suspended or revoked, may appeal pursuant to section 4-183.
4282 8 of 14 Raised Bill No.1237 organization whose license is suspended or revoked, may appeal pursuant to section 4-183.
[(l)] (m) The commissioner may require that the books and records of anysSB1237 vendor/ orFile affiliateNo. licensee be maintained in any manner which the commissioner may deembest,andthat any financialor other statements based on such books and records be prepared in accordance with generally accepted accounting principles in such form as the commissioner shall prescribe.
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575 8 sSB1237 File No.
575 any vendor or affiliate licensee be maintained in any manner which the commissioner may deembest,andthat any financialor other statements based on such books and records be prepared in accordance with generally accepted accounting principles in such form as the commissioner shall prescribe.
(a)An occupationalemployee, otherthanakey employee,ofamaster wagering licensee or a licensed online gaming operator, online gaming LCOservice No.provider or sports wagering retailer who will be directly or substantially involved in the operation of Internet games or retail sports wagering in a manner impacting the integrity of such gaming or wagering, data security, patron interaction, game or equipment testing or any other aspect of the gaming activity of a licensee that impacts the integrity of gaming, shall obtain an occupational employee license prior to commencing such employment.
4282An 9employee of 14the RaisedConnecticut BillLottery No.1237Corporation serviceholding provideran oractive sportsClass wageringIII retaileror whoClass willIV belicense directlywith oran substantiallyendorsement involvedto inoperate the operation of Internet games or retail sports wagering inissued apursuant mannerto impactingsubsection the(f) integrity of suchsection gaming12-815a, oras wagering,amended databy security,this patronsSB1237 interaction,/ gameFile orNo. equipment testing or any other aspect of the gaming activity of a licensee that impacts the integrity of gaming, shall obtain an occupational employee license prior to commencing such employment.
An575 employee9 ofsSB1237 theFile ConnecticutNo. Lottery Corporation holding an active Class III or Class IV license with an endorsement to operate Internet games or retail sports wagering issued pursuant to subsection (f) of section 12-815a, as amended by this act, shall not be required to obtain an occupational employee license pursuant to this section.
575 act, shall not be required to obtain an occupational employee license pursuant to this section.
Subsection (b) of section 12-859 of the general statutes is repealedandthefollowingissubstitutedinlieurepealedandthefollowingissubstitutedinlieuthereof(EffectiveJanuary thereof(EffectiveJanuary 1, 2026):
(b) A key employee of a master wagering licensee or licensed online gaming operator, online gaming service provider or sports wagering LCOretailer No.shall obtain a key employee license from the department pursuant to this section.
4282 10 of 14 Raised Bill No.1237 retailer shall obtain a key employee license from the department pursuant to this section.
Sec.sSB1237 / File No.
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575 Sec.
(e) Advertising, marketing and other promotional materials LCOpublished, No.aired, displayed or disseminated by or on behalf of any gaming entity licensee shall:
4282 11 of 14 Raised Bill No.
1237 published, aired, displayed or disseminated by or on behalf of any gaming entity licensee shall:
(3)sSB1237 Not/ directlyFile advertise,No. target or promote Internet games or retail sports wagering to specific individuals, rather than a general audience, who are excluded pursuant to a self-exclusion process as described in subdivision (5) of subsection (c) of this section, through methods, including, but not limited to, electronic mail, telephone calls, text messages, direct messaging applications, mail and social media;
575 11 sSB1237 File No.
575 (3) Not directly advertise, target or promote Internet games or retail sports wagering to specific individuals, rather than a general audience, who are excluded pursuant to a self-exclusion process as described in subdivision (5) of subsection (c) of this section, through methods, including, but not limited to, electronic mail, telephone calls, text messages, direct messaging applications, mail and social media;
(7) Not be published, aired, displayed or disseminated to a media outlet or on social media, that appeal primarily to individuals under LCOtwenty-one No.years or age, or, if pertaining exclusively to keno, online lottery ticket sales or fantasy contests, or any combination thereof, to those under eighteen years of age;
4282 12 of 14 Raised Bill No.
1237 twenty-one years or age, or, if pertaining exclusively to keno, online lottery ticket sales or fantasy contests, or any combination thereof, to those under eighteen years of age;
(10) Not imply greater chances of winning based on wagering in greater quantity or amount, except for [a lottery draw game that was approvedsSB1237 prior/ toFile JanuaryNo. 1, 2024, is available for patron wagering as of June 6, 2024, includes] online keno and online lottery draw games that include game features approved by the department that increase the chances of winning;
[and575 is12 notsSB1237 exclusivelyFile soldNo. by lottery sales agents;] (11)Not containclaims or representationsthatgaming willguarantee an individual's social, financial or personal success;
575 approved prior to January 1, 2024, is available for patron wagering as of June 6, 2024, includes] online keno and online lottery draw games that include game features approved by the department that increase the chances of winning;
[and is not exclusively sold by lottery sales agents;] (11)Not containclaims or representationsthatgaming will guarantee an individual's social, financial or personal success;
Sec.
8.
(NEW) (Effective January 1, 2026) Not later than July 1, 2026, the Connecticut Lottery Corporation shall adopt procedures establishing a period of not less than three hundred sixty-five days for a person to redeem a winning lottery ticket.
3 January 1, 2026 12-815a(e) to (n) LCOSec. No.
42824 13January of1, 142026 Raised12-858(a) BillSec. No.
1237 January 1, 2026 Sec.
4 12-858(a) Sec.
7 from passage 12-863(e) StatementSec. of Purpose:
To8 (1)January authorize1, hardship2026 waiversNew ofsection interestStatement for delinquent lottery sales agents, (2) specify that persons providing ticket distribution services for the Connecticut Lottery Corporation shall not be required to obtain a vendor license, (3) authorize the Commissioner of ConsumerLegislative ProtectionCommissioners: to issue an endorsement to a corporation employee's occupational license to enable suchemployee to engage inthecorporation'soperation of certain forms of gaming or wagering without obtaining an additional license, and (4) authorize advertising, marketing and other promotional materials promulgated by or on behalf of a gaming entity licensee to imply greater chances of winning based on larger wagers in certain online keno and lottery draw games.
[ProposedIn deletionsSection are1(b)(3), enclosedprovisions inwere brackets.redrafted for clarity.
ProposedGL additionsJoint areFavorable indicatedSubst. by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.
4282sSB1237 14/ ofFile 14No.
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575 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:
Agency Affected Fund-Effect FY 26 $ FY 27 $ Connecticut Lottery Corporation Lottery Less than Less than Enterprise Fund - 10,000 10,000 Savings Resources of the General Fund GF - Revenue See Below See Below Impact Note:
GF=General Fund Municipal Impact:
None Explanation The bill makes various changes regarding the Connecticut Lottery Corporation (CLC) resulting in the impact described below.
Section 1 allows delinquent lottery sales agents to file a hardship waiver application to reduce the amount of interest owed resulting in a potential revenue loss to the state to the extent these applications are granted.
Currently, there are over 400 delinquent lottery agents with over $390 million in interest owed.
1 Section 2 exempts certain people or businesses from needing a vendor license resulting in a potential revenue loss to the state to the extent fewer vendor licenses are applied for.
A vendor license has an application fee of $250.
Sections 3-5 exempt certain lottery employees from having to obtain anoccupationallicenseiftheyholdanactiveClassIIIorClassIVlicense, resulting a revenue loss to the state and a corresponding savings to the 1The amount of principal owed to the state for these delinquent agents is $4.2 million.
sSB1237 / File No.
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575 CLC of less than $10,000 per year.
This affects approximately 25 employees who are currently required to obtain both licenses.
Section 7 eliminates a prohibition on certain advertising relating to online lottery draw games and online keno.
To the extent this increases gaming activity in these areas, this results in a potential General Fund revenue gain beginning in FY 26.
Section 8 requires the CLC, by July 1, 2026, to adopt procedures extending, from 180 days to 365 days, the valid window within which a winning lottery ticket may be redeemed.
To the extent this results in winning tickets being redeemed that otherwise would not be, this results in a potential General Fund revenue loss beginning as early as FY 26.
The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the number of hardship waiver applications granted and the number of affected licenses.
The CLC pays for these employee license fees.
sSB1237 / File No.
575 15 sSB1237 File No.
575 OLR Bill Analysis sSB 1237 AN ACT CONCERNING THE CONNECTICUT LOTTERY CORPORATION AND DELINQUENCY ASSESSMENTS, TICKET DISTRIBUTION SERVICES, OCCUPATIONAL LICENSES, PROHIBITED ADVERTISING PRACTICES AND LOTTERY TICKET REDEMPTION.
SUMMARY This bill makes several changes relating to the Connecticut Lottery Corporation (CLC) and its operations.
Generally, it:
1.
extends eligibility for hardship waivers to include lottery sales agents with delinquent accounts on or after July 1, 2025, rather than just those whose delinquency assessments were subject to compounding interest and were outstanding on June 30, 2022 (§ 1);
2.
allows certain CLC employees to receive Department of Consumer Protection (DCP) endorsements for those who work on online lottery, online keno, or online or retail sports wagering, instead of having to get a separate DCP license (§§ 4 & 5);
3.
requirestheseCLCemployeestodisclosetoDCPwhentheyhave a criminal conviction or change in scope of employment requiring additional endorsements (§ 3);
4.
exempts from licensure as a vendor a person or business that distributes tickets for the CLC (Generally, under existing law, a person or business awarded a primary contract to provide facilities, components, goods, or services necessary for and directly related to the CLC’s secure operation of activities must receive a vendor license from DCP.) (§ 2);
sSB1237 / File No.
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575 5.
permits the CLC, or someone on the CLC’s behalf, to conduct certainadvertisingforonlinekenoandonlinelotterydrawgames with DCP-approved game features that increase the chances of winning (§ 7);
and 6.
requires the CLC, by July 1, 2026, to adopt procedures that allow a person at least 365 days to redeem a winning lottery ticket (existing regulations permit the CLC to set redemption periods in its procedures (Conn.
Agencies Regs., §§ 12-568a-2(a)(4) & - 4(b)), which currently require peopleto redeem a winning lottery ticket within 180 calendar days) (§ 8).
The bill also makes minor, technical, and conforming changes.
EFFECTIVE DATE:
January 1, 2026, except the provision on delinquency assessments is effective July 1, 2025, and the provisions on ticket distributors and advertising are effective upon passage.
§ 1 — DELINQUENCY ASSESSMENTS By law, lottery sales agents are delinquent when they fail to remit money due from their lottery ticket sales by the settlement dates set by CLC.
The CLC president is responsible for making delinquency determinations and notifying the DCP commissioner.
The DCP commissioner, in turn, must impose a penalty of 10% of the amount due or $10, whichever is greater, plus interest of 1.5% per month or partial month from the due date to the payment date.
The bill specifies that the (1) penalty and interest are calculated based on the principal amount due but unremitted and (2) penalty is effective when the agent’s notice is delivered.
Current law refers to the penalty and interest as the delinquency assessment.
The bill instead defines “delinquency assessment” as the (1) principal amount due but unremitted as of the stated past settlement date,(2)penaltyimposedbytheDCPcommissioner,and(3)interestdue and outstanding.
Hardship Waivers sSB1237 / File No.
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575 Current law allowed lottery sales agents whose delinquency assessments were subject to compounding interest and were outstanding on June 30, 2022, to be eligible for hardship waivers.
The law allowed these agents to request the waiver from the DCP commissioner to reduce what they owe by recalculating the interest owed using simple interest.
Under the bill, sales agents with delinquent accounts on or after July 1, 2025, may apply to the CLC president for a hardship waiver to reduce the amount of interest owed.
When applying for the waiver, they must pay any principalandpenaltiesdue asofthestatedpast settlementdate.
If the CLC president determines that an undue hardship prevents the agent from paying what he or she owes in principal and penalties, he may enter into a payment plan that allows the agent to pay CLC over a period of up to one year from the date the waiver is provisionally granted.
If an agent is given a payment schedule and does not make payments, the agent is ineligible for a further waiver.
The bill authorizes the CLC president to reduce the amount of interest owed by the agent if he determines that doing so would be beneficial for the state.
He must (1) establish procedures specifying requirements for these waiver applications and the availability of payment plans and (2) publish and maintain them on CLC’s website.
The bill prohibits any hardship waiver from resulting in a credit of any amount an agent previously paid.
§§ 3-5 — DCP LICENSING Under existing law, all CLC staff members must be licensed by DCP (i.e.
class III and IV licensees).
Current law also requires staff members who work on its “Internet games” (i.e.
online lottery, online keno, or online sports wagering) or retail sports wagering to get additional licensing.
The bill instead allows CLC employees and applicants for those jobs to instead receive endorsements on the CLC license, rather than having to get a separate DCP license.
The bill requires each applicant for a CLC staff position and each sSB1237 / File No.
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575 current CLC employee, as of January 1, 2026, to disclose in a DCP- prescribed way the required gaming forms the applicant or licensed employee will work on at CLC.
For these individuals, the DCP commissioner may issue a separate endorsement allowing them to operate CLC’s Internet games or retail sports wagering.
Under the bill, these employees are not required to apply for a separate DCP gaming license.
The bill requires these CLC staff members to report to DCP any criminal conviction within two business days of any conviction order or judgment.
CLC and its employees must immediately report to DCP any change in an employee’s scope of employment that would require the employee to get an additional endorsement.
§ 7 — ADVERTISING Current law prohibits gaming entity licensees including the CLC, or someone acting on their behalf, from conducting advertising that implies a greater chance of winning based on wagering a greater quantity or amount, except for a lottery draw game that (1) was approved before January 1, 2024;
(2) was available on June 6, 2024;
(3) has DCP-approved features that increase the chance of winning;
and (4) is not exclusively sold by lottery sales agents.
The bill eliminates this exception and instead exempts advertising relating to online keno and online lottery draw games with DCP-approved features that increase the chances of winning.
By law, gaming entity licensees are master wagering licensees (the CLC and the Mashantucket Pequot or Mohegan tribes), licensed online gaming operators, licensed online gaming service providers, and licensed sports wagering retailers.
BACKGROUND Related Bills HB 5269, favorably reported by the General Law Committee, among other things, prohibits gaming entities and those acting on their behalf from advertising offers of a financial incentive to induce people to sSB1237 / File No.
575 19 sSB1237 File No.
575 engage in gaming.
HB 5272, favorably reported by the General Law Committee, prohibits gaming entities and those acting on their behalf from advertising offers or providing bonuses, credits, or other inducements to engage in or continue gaming.
COMMITTEE ACTION General Law Committee Joint Favorable Substitute Yea 22 Nay 0 (03/24/2025) sSB1237 / File No.
575 20
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View plain text versions (3)
- File No. 575 View text pdf
- Raised Bill View text Current pdf
- Substitute GL Joint Favorable Substitute pdf
Action History
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FILE NO. 575
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SENATE CALENDAR NUMBER 318
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FAV. RPT., TAB. FOR CAL., SEN.
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RPTD. OUT OF LCO
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REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 04/07/25
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FILED WITH LCO
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Joint Favorable Substitute
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PUBLIC HEARING 0214
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REF. TO JOINT COMM. ON General Law
Sponsorship breakdown
Export CSV (upgrade) →0 sponsors · 0 co-sponsors · 187 not signed on
Sponsors (0)
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Co-sponsors (0)
None.
Not signed on (187)
187 members have not signed on to this bill.
Show all 187 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
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