Section 12-865-8 - Occupational Employee and Key Employee Licensing(a) No individual shall act as an occupational licensee, or represent that such person is an occupational licensee, unless such individual has obtained a license from the department pursuant to this subsection. Such individual shall apply for a license on a form and in a manner prescribed by the commissioner. The department shall permit occupational employee applicants with comparable credentials in another state that has substantially similar license requirements to apply for reciprocal licensing if licensed in good standing in another state. If the department issues an occupational employee license to an applicant based on reciprocity, the applicant shall provide all information required of a non-reciprocal initial applicant no later than three months prior to the renewal date when such license expires.(b) The following individuals who are directly or substantially involved in the operation of internet games or retail sports wagering in a manner that impacts the integrity of gaming shall obtain an occupational employee license:(1) Individuals who have system access or authority to modify any critical component of the electronic wagering platform or to impact or revise the outcome of a wager;(2) Individuals who have authority to modify a patron's bank account information, full birth date, social security or tax identification number, deposit patron funds from external funding sources, wagering limits, or wager history in an internet gaming account, excluding those individuals who are authorized only to update patron contact information, resolve patron complaints, including through the issuance of complimentaries, and other non-material changes to internet gaming accounts;(3) Individuals who manage or supervise information technology employees;(4) Individuals who manage or supervise data security staff;(5) Individuals who have the managerial authority to approve deployment of code for internet games or an electronic wagering platform;(6) Individuals who manage or supervise individuals responsible for testing of internet games or gaming equipment;(7) Individuals who accept wagers at a sports wagering retail facility; and(8) The general manager of a sports wagering retail facility.(c) In addition to the individuals listed in subsection (b) of this section, occupational employees may include, at the discretion of the department, managerial or supervisory level employees that have the potential to materially impact or influence the integrity of internet games, retail sports wagering, or gaming activity.(d) No individual shall act as a key employee, or represent that such individual is a key employee, unless such individual has obtained a license from the department pursuant to this subsection, is within the thirty-day notice period specified in subsection (g) of this section, or has submitted a preliminary application, with payment in full, to the department and the individual's license application is pending review by the department. Such individual shall apply for a license on a form and in a manner prescribed by the commissioner. The department shall permit key employee applicants to apply for reciprocal licensing based on the applicant's status as a licensee in good standing in another state that uses the multi-jurisdictional personal history disclosure form. If the department issues a key employee license to an applicant based on reciprocity, the applicant shall provide all information required of a non-reciprocal initial applicant no later than three months prior to the renewal date when such license expires.(e) The following individuals are required to obtain a key employee license: (1) President or chief officer, who is the top-ranking individual of the licensee and is responsible for all staff and the overall direction of business operations;(2) Financial manager, who is the individual who reports to the president or chief officer who is generally responsible for oversight of the financial operations of the licensee, including, but not limited to, revenue generation, distributions, tax compliance and budget implementation;(3) Compliance manager, who is the individual that reports to the president or chief officer and who is generally responsible for ensuring the licensee complies with all laws, regulations and requirements related to the operation of the licensee;(4) Chief information officer or chief data security officer, or any individual with a similar title who exercises control over information systems and technical systems;(5) Individuals who are responsible for establishing the policies or procedures on, or make management decisions related to, wagering structures or outcomes for a gaming entity licensee; and(6) Individuals with an ownership interest in a gaming entity licensee provided the interest held by such individual and such individual's spouse, parent, and child, in the aggregate, is five per cent or more of the total ownership or interest rights in the gaming entity licensee.(f) In addition to the individuals listed in subsection (e) of this section, key employees may include, at the discretion of the department, individuals who have control over technical systems or general operation of the licensee that materially impact the integrity of gaming, internet games and retail sports wagering. For the purpose of this section, "control" means the authority of employees, directors, members, and trustees to establish policies or procedures on, or making management decisions related to, technical systems, financial management, and wagering structures or outcomes for a gaming entity licensee, or supervisory oversight over occupational employees.(g) An individual who requires licensure as a key employee shall submit a preliminary application to the department no later than thirty days after commencement of employment in such role or thirty days after notice to the gaming entity licensee by the department that an individual is a key employee. An individual who requires licensure as a key employee shall submit a complete application to the department no later than ninety days after commencement of employment in such role, unless an extension is granted by the department. No individual shall be designated a key employee without attaining at least eighteen years of age.(h) An individual, who would otherwise be a key employee based on the individual's ownership interest in a gaming entity licensee may request that the commissioner waive the application requirement for a key employee license by providing evidence acceptable to the commissioner that the applicant is a passive or institutional investor. The commissioner may grant a waiver, in the commissioner's sole discretion, if the commissioner concludes that the investor is unable to exert control over the gaming entity licensee. To determine whether an investor is able to exercise control, the commissioner may consider among other things: (1) Whether the investor is a financial institution; and(2) The nature of the investment interest, including the extent to which it is attributable to debt warrants or other unexercised rights. (i) The key employee license application form shall require the applicant for a key employee license to submit to a state and national criminal history records check conducted in accordance with section 29-17a of the Connecticut General Statutes, which may include a financial history check if requested by the commissioner, to determine the character and fitness of the applicant for the license.(j) A key employee applicant may be denied a license in the event the applicant's background check reveals a conviction related to the mismanagement of funds, consumer fraud, computer fraud, a violation of communication or data privacy laws, other financial or computer crimes, or other crimes that may disqualify the applicant based on the criteria in section 46a-80 of the Connecticut General Statutes. If the key employee is denied a license after the individual has commenced employment as a key employee, the gaming entity licensee employing the key employee shall immediately upon receipt of notice cease utilizing such individual in activity requiring a key employee license.(k) A key employee may appeal a denial by requesting a hearing before the commissioner in accordance with chapter 54 of the Connecticut General Statutes. Such request for hearing shall be made in writing to the commissioner within ten days of receipt from the department of a license denial.Conn. Agencies Regs. § 12-865-8