LRBa0332/1
RAC:kmg:rs
2003 - 2004 LEGISLATURE
ASSEMBLY AMENDMENT 1,
TO ASSEMBLY SUBSTITUTE AMENDMENT 2,
TO 2003 ASSEMBLY BILL 144
March 12, 2003 - Offered by Representatives Boyle and Hubler.
AB144-ASA2-AA1,1,11 At the locations indicated, amend the substitute amendment as follows:
AB144-ASA2-AA1,1,3 21. Page 1, line 2: after "compacts" insert "and licensing and regulating
3amusement devices under the state lottery and making appropriations".
AB144-ASA2-AA1,1,4 42. Page 2, line 23: after that line insert:
AB144-ASA2-AA1,1,5 5" Section 5m. 20.566 (8) (g) of the statutes is created to read:
AB144-ASA2-AA1,1,96 20.566 (8) (g) Licensing and regulation of amusement devices. All moneys
7received under s. 565.08 (1) (c), to pay the costs incurred by the department of
8revenue in issuing licenses and regulating the operation of amusement devices
9under s. 565.08.
AB144-ASA2-AA1, s. 6m 10Section 6m. 20.566 (8) (t) of the statutes is created to read:
AB144-ASA2-AA1,1,1211 20.566 (8) (t) Payment to municipalities. From the lottery fund, a sum
12sufficient to make the payments under s. 79.037.
AB144-ASA2-AA1, s. 7m
1Section 7m. 25.75 (1) (b) of the statutes is amended to read:
AB144-ASA2-AA1,2,82 25.75 (1) (b) "Gross lottery revenues" means gross revenues from the sale of
3lottery tickets and lottery shares under ch. 565, adjusted gross revenues received by
4the state under s. 565.08 (1) (g),
and revenues from the imposition of fees, if any,
5under s. 565.10 (8) and includes compensation, including bonuses, if any, paid to
6retailers under s. 565.10 (14), regardless of whether the compensation is deducted
7by the retailer prior to transmitting lottery ticket and lottery share revenues to the
8commission.
AB144-ASA2-AA1, s. 8m 9Section 8m. 77.51 (4) (c) 1m. of the statutes is created to read:
AB144-ASA2-AA1,2,1010 77.51 (4) (c) 1m. Adjusted gross receipts, as defined in s. 565.01 (1c).
AB144-ASA2-AA1, s. 9m 11Section 9m. 77.51 (15) (c) 1m. of the statutes is created to read:
AB144-ASA2-AA1,2,1212 77.51 (15) (c) 1m. Adjusted gross receipts, as defined in s. 565.01 (1c).
AB144-ASA2-AA1, s. 10m 13Section 10m. 79.035 (1) of the statutes is amended to read:
AB144-ASA2-AA1,2,1614 79.035 (1) Subject to reductions under s. ss. 79.036 (3) and 79.037, in 2004 and
15subsequent years, each county and municipality shall receive a payment from the
16county and municipal aid account in an amount determined under sub. (2).
AB144-ASA2-AA1, s. 11m 17Section 11m. 79.037 of the statutes is created to read:
AB144-ASA2-AA1,3,3 1879.037 Adjusted gross receipts. Beginning with the distribution in 2004,
19the department of revenue shall reduce the payment from the county and municipal
20aid account under s. 79.035 to each municipality in which the state collects adjusted
21gross receipts, as defined in s. 565.01 (1c), by an amount equal to the adjusted gross
22receipts, as defined in s. 565.01 (1c), that the state collected in the municipality in
23the fiscal year preceding the fiscal year of the payment under s. 79.035 and shall pay
24each such municipality from the appropriation under s. 20.566 (8) (t) an amount, to
25be used solely for the purpose of reducing the property tax levy in the municipality,

1equal to the adjusted gross receipts, as defined in s. 565.01 (1c), that the state
2collected in the municipality in the fiscal year preceding the fiscal year of the
3payment under s. 79.035.
AB144-ASA2-AA1, s. 12m 4Section 12m. 125.12 (1) (a) of the statutes is amended to read:
AB144-ASA2-AA1,3,75 125.12 (1) (a) Except as provided in this subsection and s. 945.041, any
6municipality or the department may revoke, suspend or refuse to renew any license
7or permit under this chapter, as provided in this section.
AB144-ASA2-AA1, s. 13m 8Section 13m. 565.01 (1) of the statutes is renumbered 565.01 (1dm).
AB144-ASA2-AA1, s. 14m 9Section 14m. 565.01 (1c) of the statutes is created to read:
AB144-ASA2-AA1,3,1310 565.01 (1c) "Adjusted gross receipts" means the total amount paid by cash or
11check to a person licensed under s. 565.08 (1) (a) for the play of amusement devices
12licensed under s. 565.08 less the total amount paid by cash or check to the players
13of the amusement devices for the play of the amusement devices.
AB144-ASA2-AA1, s. 15m 14Section 15m. 565.01 (1g) of the statutes is created to read:
AB144-ASA2-AA1,3,2215 565.01 (1g) "Amusement device" means, before July 1, 2005, any video device
16that awards or is capable of awarding a player with one or more redeemable free
17replays or credits for achieving certain scores or results and does not change the ratio
18of plays to free replays or credits so awarded. Beginning on July 1, 2005, "amusement
19device" means any on-line video device that awards or is capable of awarding a
20player with one or more redeemable free replays or credits for achieving certain
21scores or results and does not change the ratio of plays to free replays or credits so
22awarded.
AB144-ASA2-AA1, s. 16m 23Section 16m. 565.01 (4g) of the statutes is amended to read:
AB144-ASA2-AA1,4,424 565.01 (4g) "On-line services and supplies" means those lottery products and
25associated services, including computerized transaction processing equipment,

1computerized retailer vending terminals, and those technologies necessary to
2maximize lottery revenues and minimize the lottery's total operating costs. The term
3does not include services related to instant lottery ticket services or the playing of
4amusement devices licensed under s. 565.08
.
AB144-ASA2-AA1, s. 17m 5Section 17m. 565.01 (4r) (intro.) of the statutes is amended to read:
AB144-ASA2-AA1,4,106 565.01 (4r) (intro.) "Promotional advertising" means advertising which is for
7the purpose of inducing persons to purchase lottery tickets or lottery shares or play
8amusement devices licensed under s. 565.08
. "Promotional advertising" does not
9mean advertising which is designed to provide the public with information on any
10of the following:
AB144-ASA2-AA1, s. 18m 11Section 18m. 565.01 (6c) of the statutes is created to read:
AB144-ASA2-AA1,4,1412 565.01 (6c) "Set up for the purpose of play" means operated for the purpose of
13offering a person, for consideration, an opportunity to play an amusement device
14licensed under s. 565.08.
AB144-ASA2-AA1, s. 19m 15Section 19m. 565.01 (6m) (a) (intro.) of the statutes is renumbered 565.01 (6m)
16(intro.) and amended to read:
AB144-ASA2-AA1,4,1717 565.01 (6m) (intro.) "The state lottery" means an all of the following:
AB144-ASA2-AA1,4,20 18(a) An enterprise, including a multijurisdictional lottery in which the state
19participates, in which the player, by purchasing a ticket, is entitled to participate in
20a game of chance in which any of the following applies:
AB144-ASA2-AA1, s. 20m 21Section 20m. 565.01 (6m) (b) and (c) of the statutes are repealed.
AB144-ASA2-AA1, s. 21m 22Section 21m. 565.01 (6m) (bm) of the statutes is created to read:
AB144-ASA2-AA1,4,2423 565.01 (6m) (bm) The play and operation of an amusement device licensed
24under s. 565.08.
AB144-ASA2-AA1, s. 22m 25Section 22m. 565.015 of the statutes is repealed.
AB144-ASA2-AA1, s. 23m
1Section 23m. 565.02 (7) of the statutes is amended to read:
AB144-ASA2-AA1,5,202 565.02 (7) Not later than March 1 of each year, the department shall submit
3to the joint committee on finance a report that includes an estimate for that fiscal
4year and for the subsequent fiscal year of the gross revenues from the sale of lottery
5tickets and lottery shares, the total amount paid as lottery ticket and share prizes
6and the lottery ticket and share prize payout ratio for each type of lottery game
7offered, and an evaluation of the effect of lottery ticket and share prize payout ratios
8of lottery games on lottery sales, lottery operating costs and on maximizing the
9revenue available for the lottery and gaming property tax credit. If, within 14
10working days after the date on which the committee receives the report, the
11cochairpersons of the committee notify the department that the committee has
12scheduled a meeting for the purpose of reviewing the department's proposed lottery
13ticket and share
prize payouts, the department may proceed with its plans for the
14lottery ticket and share prize payouts for the subsequent fiscal year only upon
15approval of the plans by the committee. If the cochairpersons of the committee do
16not notify the department within 14 working days after the date on which the
17committee receives the report that the committee has scheduled a meeting for the
18purpose of reviewing the department's proposed lottery ticket and share prize
19payouts, the department's plans for the lottery ticket and share prize payouts for the
20subsequent fiscal year are considered approved by the committee.
AB144-ASA2-AA1, s. 24m 21Section 24m. 565.08 of the statutes is created to read:
AB144-ASA2-AA1,5,24 22565.08 Licensing and regulation of amusement devices. (1) The
23department shall license all amusement devices that are set up for the purpose of
24play in this state, subject to all of the following conditions:
AB144-ASA2-AA1,5,2525 (a) An amusement device license may be issued only to the following:
AB144-ASA2-AA1,6,3
11. A person who has a Class "B" license under ch. 125 on the effective date of
2this subdivision .... [revisor inserts date], or a person to whom such a Class "B" license
3has been transferred under s. 125.04 (12) (b).
AB144-ASA2-AA1,6,44 2. A person who has a "Class B" license under ch. 125.
AB144-ASA2-AA1,6,65 3. A person who held a license on January 1, 2003, that was issued under s.
6562.05 (1).
AB144-ASA2-AA1,6,97 (b) An amusement device that is set up for the purpose of play may be played
8only at a racetrack at which pari-mutuel wagering was conducted on January 1,
92003, or at a premises issued a Class "B" or "Class B" license under ch. 125.
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