Amendment AA4-AB144

LRBa0307/1

RAC:kmg:pg

2003 - 2004 LEGISLATURE

ASSEMBLY AMENDMENT 4, TO 2003 ASSEMBLY BILL 144

March 12, 2003 - Offered by Representatives Boyle and Hubler.

AB144-AA4,1,1 At the locations indicated, amend the bill as follows:

AB144-AA4,1,3 1. Page 1, line 2: after "compacts" insert "and licensing and regulating amusement devices under the state lottery and making appropriations".

AB144-AA4,1,4 2. Page 2, line 24: after that line insert:

AB144-AA4,1,5 " Section 5m. 20.566 (8) (g) of the statutes is created to read:

AB144-AA4,1,9 20.566 (8) (g) Licensing and regulation of amusement devices. All moneys received under s. 565.08 (1) (c), to pay the costs incurred by the department of revenue in issuing licenses and regulating the operation of amusement devices under s. 565.08.

AB144-AA4, s. 6m Section 6m. 20.566 (8) (t) of the statutes is created to read:

AB144-AA4,1,12 20.566 (8) (t) Payment to municipalities. From the lottery fund, a sum sufficient to make the payments under s. 79.037.

AB144-AA4, s. 7m Section 7m. 25.75 (1) (b) of the statutes is amended to read:

AB144-AA4,2,7 25.75 (1) (b) "Gross lottery revenues" means gross revenues from the sale of lottery tickets and lottery shares under ch. 565, adjusted gross revenues received by the state under s. 565.08 (1) (g), and revenues from the imposition of fees, if any, under s. 565.10 (8) and includes compensation, including bonuses, if any, paid to retailers under s. 565.10 (14), regardless of whether the compensation is deducted by the retailer prior to transmitting lottery ticket and lottery share revenues to the commission.

AB144-AA4, s. 8m Section 8m. 77.51 (4) (c) 1m. of the statutes is created to read:

AB144-AA4,2,9 77.51 (4) (c) 1m. Adjusted gross receipts, as defined in s. 565.01 (1c).

AB144-AA4, s. 9m Section 9m. 77.51 (15) (c) 1m. of the statutes is created to read:

AB144-AA4,2,11 77.51 (15) (c) 1m. Adjusted gross receipts, as defined in s. 565.01 (1c).

AB144-AA4, s. 10m Section 10m. 79.035 (1) of the statutes is amended to read:

AB144-AA4,2,15 79.035 (1) Subject to reductions under s. ss. 79.036 (3) and 79.037, in 2004 and subsequent years, each county and municipality shall receive a payment from the county and municipal aid account in an amount determined under sub. (2).

AB144-AA4, s. 11m Section 11m. 79.037 of the statutes is created to read:

AB144-AA4,3,2 79.037 Adjusted gross receipts. Beginning with the distribution in 2004, the department of revenue shall reduce the payment from the county and municipal aid account under s. 79.035 to each municipality in which the state collects adjusted gross receipts, as defined in s. 565.01 (1c), by an amount equal to the adjusted gross receipts, as defined in s. 565.01 (1c), that the state collected in the municipality in the fiscal year preceding the fiscal year of the payment under s. 79.035 and shall pay each such municipality from the appropriation under s. 20.566 (8) (t) an amount, to be used solely for the purpose of reducing the property tax levy in the municipality, equal to the adjusted gross receipts, as defined in s. 565.01 (1c), that the state collected in the municipality in the fiscal year preceding the fiscal year of the payment under s. 79.035.

AB144-AA4, s. 12m Section 12m. 125.12 (1) (a) of the statutes is amended to read:

AB144-AA4,3,6 125.12 (1) (a) Except as provided in this subsection and s. 945.041, any municipality or the department may revoke, suspend or refuse to renew any license or permit under this chapter, as provided in this section.

AB144-AA4, s. 13m Section 13m. 565.01 (1) of the statutes is renumbered 565.01 (1dm).

AB144-AA4, s. 14m Section 14m. 565.01 (1c) of the statutes is created to read:

AB144-AA4,3,12 565.01 (1c) "Adjusted gross receipts" means the total amount paid by cash or check to a person licensed under s. 565.08 (1) (a) for the play of amusement devices licensed under s. 565.08 less the total amount paid by cash or check to the players of the amusement devices for the play of the amusement devices.

AB144-AA4, s. 15m Section 15m. 565.01 (1g) of the statutes is created to read:

AB144-AA4,3,21 565.01 (1g) "Amusement device" means, before July 1, 2005, any video device that awards or is capable of awarding a player with one or more redeemable free replays or credits for achieving certain scores or results and does not change the ratio of plays to free replays or credits so awarded. Beginning on July 1, 2005, "amusement device" means any on-line video device that awards or is capable of awarding a player with one or more redeemable free replays or credits for achieving certain scores or results and does not change the ratio of plays to free replays or credits so awarded.

AB144-AA4, s. 16m Section 16m. 565.01 (4g) of the statutes is amended to read:

AB144-AA4,4,3 565.01 (4g) "On-line services and supplies" means those lottery products and associated services, including computerized transaction processing equipment, computerized retailer vending terminals, and those technologies necessary to maximize lottery revenues and minimize the lottery's total operating costs. The term does not include services related to instant lottery ticket services or the playing of amusement devices licensed under s. 565.08.

AB144-AA4, s. 17m Section 17m. 565.01 (4r) (intro.) of the statutes is amended to read:

AB144-AA4,4,9 565.01 (4r) (intro.) "Promotional advertising" means advertising which is for the purpose of inducing persons to purchase lottery tickets or lottery shares or play amusement devices licensed under s. 565.08. "Promotional advertising" does not mean advertising which is designed to provide the public with information on any of the following:

AB144-AA4, s. 18m Section 18m. 565.01 (6c) of the statutes is created to read:

AB144-AA4,4,13 565.01 (6c) "Set up for the purpose of play" means operated for the purpose of offering a person, for consideration, an opportunity to play an amusement device licensed under s. 565.08.

AB144-AA4, s. 19m Section 19m. 565.01 (6m) (a) (intro.) of the statutes is renumbered 565.01 (6m) (intro.) and amended to read:

AB144-AA4,4,16 565.01 (6m) (intro.) "The state lottery" means an all of the following:

AB144-AA4,4,19 (a) An enterprise, including a multijurisdictional lottery in which the state participates, in which the player, by purchasing a ticket, is entitled to participate in a game of chance in which any of the following applies:

AB144-AA4, s. 20m Section 20m. 565.01 (6m) (b) and (c) of the statutes are repealed.

AB144-AA4, s. 21m Section 21m. 565.01 (6m) (bm) of the statutes is created to read:

AB144-AA4,4,23 565.01 (6m) (bm) The play and operation of an amusement device licensed under s. 565.08.

AB144-AA4, s. 22m Section 22m. 565.015 of the statutes is repealed.

AB144-AA4, s. 23m Section 23m. 565.02 (7) of the statutes is amended to read:

AB144-AA4,5,19 565.02 (7) Not later than March 1 of each year, the department shall submit to the joint committee on finance a report that includes an estimate for that fiscal year and for the subsequent fiscal year of the gross revenues from the sale of lottery tickets and lottery shares, the total amount paid as lottery ticket and share prizes and the lottery ticket and share prize payout ratio for each type of lottery game offered, and an evaluation of the effect of lottery ticket and share prize payout ratios of lottery games on lottery sales, lottery operating costs and on maximizing the revenue available for the lottery and gaming property tax credit. If, within 14 working days after the date on which the committee receives the report, the cochairpersons of the committee notify the department that the committee has scheduled a meeting for the purpose of reviewing the department's proposed lottery ticket and share prize payouts, the department may proceed with its plans for the lottery ticket and share prize payouts for the subsequent fiscal year only upon approval of the plans by the committee. If the cochairpersons of the committee do not notify the department within 14 working days after the date on which the committee receives the report that the committee has scheduled a meeting for the purpose of reviewing the department's proposed lottery ticket and share prize payouts, the department's plans for the lottery ticket and share prize payouts for the subsequent fiscal year are considered approved by the committee.

AB144-AA4, s. 24m Section 24m. 565.08 of the statutes is created to read:

AB144-AA4,5,23 565.08 Licensing and regulation of amusement devices. (1) The department shall license all amusement devices that are set up for the purpose of play in this state, subject to all of the following conditions:

AB144-AA4,5,24 (a) An amusement device license may be issued only to the following:

AB144-AA4,6,3 1. A person who has a Class "B" license under ch. 125 on the effective date of this subdivision .... [revisor inserts date], or a person to whom such a Class "B" license has been transferred under s. 125.04 (12) (b).

AB144-AA4,6,4 2. A person who has a "Class B" license under ch. 125.

AB144-AA4,6,6 3. A person who held a license on January 1, 2003, that was issued under s. 562.05 (1).

AB144-AA4,6,9 (b) An amusement device that is set up for the purpose of play may be played only at a racetrack at which pari-mutuel wagering was conducted on January 1, 2003, or at a premises issued a Class "B" or "Class B" license under ch. 125.