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-AA1,1,3
21. Page 1, line 2: after "compacts" insert "and licensing and regulating
3amusement devices under the state lottery and making appropriations".
AB144-ASA2-AA1,1,96
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-AA1,1,1211
20.566
(8) (t)
Payment to municipalities. From the lottery fund, a sum
12sufficient to make the payments under s. 79.037.
AB144-ASA2-AA1,2,82
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-AA1,2,1010
77.51
(4) (c) 1m. Adjusted gross receipts, as defined in s. 565.01 (1c).
AB144-ASA2-AA1,2,1212
77.51
(15) (c) 1m. Adjusted gross receipts, as defined in s. 565.01 (1c).
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-AA1,3,3
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-AA1,3,75
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-AA1,3,1310
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-AA1,3,2215
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-AA1,4,424
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-AA1,4,106
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-AA1,4,1412
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-AA1,4,2423
565.01
(6m) (bm) The play and operation of an amusement device licensed
24under s. 565.08.
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-AA1,5,24
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.
AB144-ASA2-AA1,6,1110
(c) The owner of the amusement device shall be charged an annual license fee
11of $100 for each amusement device that is set up for the purpose of play.
AB144-ASA2-AA1,6,1412
(d) 1. No more than 5 amusement devices may be set up for the purpose of play
13at any one premises operated under a Class "B" license or a "Class B" license issued
14under ch. 125.
AB144-ASA2-AA1,6,1715
2. No more than 5 amusement devices per 1,000 square feet of space may be
16set up for the purpose of play at any racetrack at which pari-mutuel wagering was
17conducted on January 1, 2003, as such space existed on January 1, 2003.
AB144-ASA2-AA1,6,1918
(e) No one person may manufacture or distribute all of the amusement devices
19that are set up for the purpose of play.
AB144-ASA2-AA1,6,2420
(f) 1. Except as provided in subd. 2., any amusement device set up for the
21purpose of play shall have a percentage of credits awarded to credits played that is
22not less than the average percentage required under all unexpired Indian gaming
23compacts entered into under s. 14.035. In this subdivision, "average" means the
24arithmetic mean.
AB144-ASA2-AA1,7,4
12. In calculating the percentage of credits awarded to credits played for an
2amusement device under subd. 1., the department shall reduce the percentage by a
3percentage that produces an amount equal to the amount of any sales or use taxes
4generated from the play of the amusement device.
AB144-ASA2-AA1,7,85
(g) The adjusted gross receipts, less any amount paid as sales or use taxes from
6the play of an amusement device, shall be equally divided between the state, for
7deposit in the lottery fund, and the holder of the license under par. (a) for the
8premises or racetrack at which the amusement device is located.
AB144-ASA2-AA1,7,14
9(2) If the department attempts to verify the percentage of credits awarded to
10credits played of an amusement device under sub. (1) (f) and the owner of the
11premises or racetrack at which the amusement device is located fails, or is unable,
12to assist the department, with the result that the department cannot verify the
13percentage of credits awarded to credits played, the department shall do the
14following:
AB144-ASA2-AA1,7,1715
(a) For the first offense, issue a warning to the owner, and the owner shall
16immediately assist the department in verifying the percentage of credits awarded to
17credits played of the amusement device.
AB144-ASA2-AA1,7,1918
(b) For the 2nd offense, suspend for 30 days the license issued under sub. (1)
19(a) for that premises or racetrack.
AB144-ASA2-AA1,7,2120
(c) For the 3rd offense, permanently revoke the license issued under sub. (1)
21(a) for that premises or racetrack.
AB144-ASA2-AA1,8,323
565.27
(1) Game features and procedures. (intro.) Subject to this section, the
24rules promulgated under s. 565.02 (3) (d) and (4) (a) and approval by the secretary
25of revenue, the administrator shall determine the particular features of and
1procedures for each lottery game offered
other than games played on amusement
2devices licensed under s. 565.08. The features and procedures shall be in writing,
3shall be accessible to the public and shall include all of the following:
AB144-ASA2-AA1,8,5
5565.30 (title)
Lottery ticket and share prizes.
AB144-ASA2-AA1,8,97
565.30
(8) Applicability. This section applies only to prizes paid to the holder
8of a winning lottery ticket or share and not to prizes paid from an amusement device
9licensed under s. 565.08.
AB144-ASA2-AA1,8,1211
945.01
(1) (dm) Playing an amusement device, as defined in s. 565.01 (1g), that
12is licensed as described in s. 565.08.
AB144-ASA2-AA1,8,1714
945.01
(3) (a)
A Subject to par. (b), a gambling machine is a contrivance which
15for a consideration affords the player an opportunity to obtain something of value,
16the award of which is determined by chance, even though accompanied by some skill
17and whether or not the prize is automatically paid by the machine.
AB144-ASA2-AA1,8,2019
945.01
(3) (b) 1m. An amusement device, as defined in s. 565.01 (1g), that is
20licensed as described in s. 565.08.
AB144-ASA2-AA1, s. 31m
21Section 31m. 945.01 (4) (am) of the statutes is renumbered 945.01 (4) (am)
22(intro.) and amended to read:
AB144-ASA2-AA1,8,2423
945.01
(4) (am) (intro.) "Gambling place" does not include
a any of the
24following:
AB144-ASA2-AA1,8,25
251. A place where bingo or a raffle is conducted under ch. 563
,.
AB144-ASA2-AA1,9,1
12. A place where a lottery is conducted under ch. 565
or.
