Violations of rules and regulations

# (a)

Liability. Any officer or employee of the CLC violating the act or sections 12-568a-1 to 12-568a-23, inclusive, of the Regulations of Connecticut State Agencies, shall be liable for the penalties in this section. It is the duty and responsibility of all such officers to know sections 12-568a-1 to 12-568a-23, inclusive, of the Regulations of Connecticut State Agencies. Nothing in sections 12-568a-1 to 12-568a-23, inclusive, of the Regulations of Connecticut State Agencies shall be deemed to lessen the primary responsibility of the CLC to enforce these rules and regulations.

# (b)

Violations. A violation of chapters 226 and 229a of the Connecticut General Statutes or sections 12-568a-1 to 12-568a-23, inclusive, of the Regulations of Connecticut State Agencies, shall result in the following:

# (1)

The executive director or designee may for good cause suspend or revoke any occupational license. The executive director or designee may for good cause suspend and revoke any vendor licensee. Any licensee, vendor employee, or CLC employee or officer who is alleged to have defrauded, produced, altered, forged, passed or counterfeited a lottery ticket, may be summarily suspended from involvement with the lottery, and such licensee, employee or officer may be subject to license suspension or revocation.

# (2)

The executive director or the executive director's designee may order that any licensees under suspension shall be denied admission to or attendance at all

facilities subject to division regulation in Connecticut, including all pari-mutuel operations, CLC offices and lottery high tier claim centers.

# (3)

In the case of license revocation, the executive director may bar such licensees from all facilities subject to division regulation in Connecticut, including all parimutuel operations, CLC offices and lottery high tier claim centers.

# (4)

All parties cited for violations of this section shall be given the opportunity for a hearing in accordance with sections 12-568a-1 to 12-568a-23, inclusive, of the Regulations of Connecticut State Agencies, and the division rules of practice and hearing procedures.

# (5)

All decisions of the division may be appealed pursuant to section 4-183 of the Connecticut General Statutes.

# (c)

Fraudulent activity. Any licensee, vendor employee, or CLC employee or officer who, with intent to defraud, produces, alters, forges, passes or counterfeits a lottery ticket, shall be terminated from involvement with the lottery, and such licensee, employee or officer may be subject to license suspension or revocation.

# (d)

Wrongful validation of prizes. Any licensee or employee or officer of the CLC who influences or attempts to influence the winning of a prize, through the use of coercion, fraud, abuse, misuse or misappropriation of confidential system information, including the tampering of lottery files, software or equipment, may be subject to license suspension or revocation.

# (e)

Prohibition of prize payments for compromised tickets. The CLC shall insure that no prize shall be paid arising from claimed winning tickets that are stolen, counterfeit, altered, fraudulent, unissued, issued in error, unreadable, not received, unclaimed or not recorded by the CLC within applicable deadlines, lacking in captions that conform and agree with the play symbols appropriate to the lottery game involved, or not in compliance with specific rules and with the confidential validation and security tests of the CLC.

# (f)

Confidentiality of win files and restricted access to proprietary information. The CLC shall prohibit game win files from access by unauthorized person(s).
In the event that the CLC becomes aware of a compromise or potential compromise of security regarding exposure of information contained in the game win files, the CLC shall immediately notify the executive director and the division director of security. The CLC shall thereafter take all necessary steps to restore security as quickly as possible.

# (g)

Advance notification of expiring jackpot and grand prize winning tickets.
The CLC shall provide the public adequate advance notice of all-expiring jackpot and grand prize winning tickets. The CLC shall utilize broadcast media, and shall publish in at least two newspapers having substantial circulation in the state, that the winning ticket holders must claim by a certain date to be eligible for payment.

# (h)

Prohibition of financial interest in vendors. No CLCB member, CLC officer or employee or any spouse, child, brother, sister or parent of the foregoing persons shall have a financial interest in any vendor doing business or proposing to do business with the CLC.

# (i)

Prohibition from purchasing and claiming jackpot and grand prizewinners. The CLC shall not directly or indirectly acquire any beneficial interest in lottery ticket(s), and shall not directly or indirectly receive prizes.

# (j)

Summary suspension. If the division finds that public health, safety or welfare imperatively requires emergency action, and incorporates a finding to that effect in its order, summary suspension of an occupational or vendor license may be ordered

Division of Special Revenue § 12-568a-18 pending proceedings for revocation or other action. These proceedings shall be promptly instituted and determined by the division.