LRBs0208/1
MGG:eev:rs
2013 - 2014 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 1,
TO ASSEMBLY BILL 422
January 16, 2014 - Offered by Representative Jacque.
AB422-ASA1,1,7 1An Act to repeal 563.03 (12m) and 563.935 (6) (b); to renumber and amend
2563.90 and 563.935 (6) (a); to amend 563.03 (11), 563.05 (2), 563.91, 563.92
3(1m), 563.92 (2), 563.93 (1) (e), 563.93 (4) (a), 563.93 (4) (b), 563.93 (4m), 563.93
4(5), 563.93 (7), 563.93 (8), 563.93 (9), 563.935 (8), 563.935 (9), 563.935 (10)
5(intro.) and 945.01 (3) (b) 1.; and to create 563.03 (4p), 563.03 (5r), 563.03 (12r),
6563.908, 563.909 and 563.98 (1) (f) of the statutes; relating to: raffles that
7involve the racing of plastic or rubber ducks and other types of raffles.
Analysis by the Legislative Reference Bureau
The Wisconsin Constitution permits the legislature to authorize certain types
of gambling. A raffle conducted by a local religious, charitable, service, fraternal, or
veterans' organization is a type of gambling that may be authorized. Under current
law, the legislature has authorized the operation of raffles that are games of chance
in which tickets are sold and drawings are held.
Under current law, the division of gaming in the Department of Administration
(DOA) issues licenses to organizations that are authorized to conduct raffles. A Class
A license authorizes an organization to sell tickets to the raffle on days other than

the day on which the drawing will be held. A Class B license allows the sale of tickets
for a raffle only on the day the raffle will be held. Under either license, an
organization may hold up to 200 raffles a year or one calendar raffle a year. A
calendar raffle is one where a drawing is held and a prize awarded on certain dates
specified on the calendar.
This substitute amendment expands the types of raffles that may be allowed.
Under the amendment, DOA must approve a type of raffle that consists of flexible
plastic or rubber ducks being used in a race. Once DOA approves this type of raffle,
any organization holding a Class A or Class B license may conduct duck race raffles.
The substitute amendment also authorizes an organization that is licensed to hold
raffles to request approval to hold a raffle that is not a regular drawing raffle or a
duck race. The request for approval must include information such as a description
of the method to be used for selling tickets and the type of random selection process
to be used for determining winners. DOA may not approve a new type of raffle unless
it determines that the raffle will comply with the requirements under current law
that apply to raffles in general. These include requirements that the drawing, duck
race, or other method of selecting a winner be held in public and that all of the prizes
must be awarded. If DOA approves a new type of raffle, any other organization
holding a Class A or Class B license may conduct this new type of raffle without
seeking additional approval.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB422-ASA1,1 1Section 1. 563.03 (4p) of the statutes is created to read:
AB422-ASA1,2,32 563.03 (4p) "Certificate of participation" means a form of raffle ticket that
3entitles a person to enter into a raffle as described under s. 563.908 (2).
AB422-ASA1,2 4Section 2. 563.03 (5r) of the statutes is created to read:
AB422-ASA1,2,95 563.03 (5r) "Drawing" means a method of random selection of a raffle ticket
6portion from a container housing all raffle tickets purchased for the raffle, with such
7selection used to determine a winner; determination of a winner in a plastic or rubber
8duck race; or any other method that is used to determine a winner and that is
9approved by the department under s. 563.909.
AB422-ASA1,3 10Section 3. 563.03 (11) of the statutes is amended to read:
AB422-ASA1,3,2
1563.03 (11) "Premises" means any room, hall, enclosure, tent, or outdoor area
2in which bingo is being played or a raffle drawing is being held.
AB422-ASA1,4 3Section 4. 563.03 (12m) of the statutes is repealed.
AB422-ASA1,5 4Section 5. 563.03 (12r) of the statutes is created to read:
AB422-ASA1,3,75 563.03 (12r) "Raffle game" means a game as described under s. 563.908 (1) or
6a plastic or rubber duck race or other game of chance that has been approved by the
7department under s. 563.909.
AB422-ASA1,6 8Section 6. 563.05 (2) of the statutes is amended to read:
AB422-ASA1,3,129 563.05 (2) The department may promulgate rules requiring holders of licenses
10issued under this chapter to post a notice in a conspicuous place where a bingo
11occasion or raffle drawing is being conducted describing the procedures for filing a
12complaint against the holder.
AB422-ASA1,7 13Section 7. 563.90 of the statutes is renumbered 563.907 and amended to read:
AB422-ASA1,3,20 14563.907 Qualified organizations. Any local religious, charitable, service,
15fraternal or veterans organization or any organization to which contributions are
16deductible for federal income tax purposes or state income or franchise tax purposes,
17which has been in existence for one year immediately preceding its application for
18a license or which is chartered by a state or national organization which has been in
19existence for at least 3 years, may conduct a raffle upon receiving a license for the
20raffle event from the department. No other person may conduct a raffle in this state.
AB422-ASA1,8 21Section 8. 563.908 of the statutes is created to read:
AB422-ASA1,3,23 22563.908 Types of raffles allowed. A raffle may not be conducted in this state
23unless it is one of the following types:
AB422-ASA1,3,25 24(1) A game of chance for which tickets or calendars are sold and a drawing for
25prizes is held.
AB422-ASA1,4,5
1(2) A game of chance for which a method, other than the methods described in
2sub. (1), is used to determine a winner and that has been approved by the department
3under s. 563.909. Any method approved under s. 563.909 shall be based on the
4winner being determined by random selection with all participants having an equal
5opportunity to win.
AB422-ASA1,9 6Section 9. 563.909 of the statutes is created to read:
AB422-ASA1,4,12 7563.909 Approval for additional types of raffles. (1) The department
8shall approve a type of raffle that consists of flexible plastic or rubber ducks being
9used in a race. In approving this type of raffle, the department shall establish
10requirements for conducting this type of raffle so that the raffles will comply with the
11requirements under this subchapter and any applicable rules promulgated under s.
12563.04 or 563.05.
AB422-ASA1,4,17 13(2) An organization that holds a Class A or Class B license and that seeks to
14conduct a raffle that is not of the type that is described under s. 563.908 (1) or sub.
15(1) shall obtain approval from the department before conducting such a raffle. The
16request for approval submitted to the department shall include all of the following
17information:
AB422-ASA1,4,1818 (a) The name of the organization.
AB422-ASA1,4,1919 (b) The number of the license issued to the organization by the department.
AB422-ASA1,4,2020 (c) The address of the premises where the drawings will be held.
AB422-ASA1,4,2321 (d) A description of how this type of raffle will be conducted, including the
22method to be used for selling certificates of participation and the type of random
23selection process to be used for determining winners.
AB422-ASA1,4,2524 (e) A description of the record-keeping and accounting procedures that will be
25used for this type of raffle.
AB422-ASA1,5,2
1(f) The date on which the membership of the organization approved this type
2of raffle.
AB422-ASA1,5,43 (g) The signature of a member of the organization whom the organization has
4designated to submit the request for approval.
AB422-ASA1,5,12 5(3) The department may not approve a type of raffle under this section unless
6it determines that the raffle will comply with the requirements under this
7subchapter and with any applicable rules promulgated under s. 563.04 or 563.05.
8The department shall issue a written determination as to whether the type of raffle
9is approved or denied and the basis for its determination. If the raffle is approved,
10the determination shall include a description of how the raffle must be conducted and
11a description of record-keeping and accounting procedures that must be used. The
12department shall post a copy of the determination on the department's Internet site.
AB422-ASA1,5,15 13(4) Upon approval of a type of raffle under this section, any organization
14holding a Class A or Class B license issued under s. 563.92 may conduct this type of
15raffle without receiving specific approval under this section.
AB422-ASA1,10 16Section 10. 563.91 of the statutes is amended to read:
AB422-ASA1,5,18 17563.91 Limit. No qualified organization under s. 563.90 563.907 may conduct
18more than 200 raffles or more than one calendar raffle during a year.
AB422-ASA1,11 19Section 11. 563.92 (1m) of the statutes is amended to read:
AB422-ASA1,6,220 563.92 (1m) The department may issue a Class A license for the conduct of a
21raffle in which some or all of the tickets for that raffle are sold on days other than the
22same day as that the raffle drawing occurs and in which equal shares of a single ticket
23may be sold to one or more purchasers. The department may issue a Class B license
24for the conduct of a raffle in which all of the tickets for that raffle are sold on the same

1day as that the raffle drawing occurs or within the 24 hours immediately preceding
2the start of the drawing
.
AB422-ASA1,12 3Section 12. 563.92 (2) of the statutes is amended to read:
AB422-ASA1,6,104 563.92 (2) The fee for a raffle license shall be $25 and shall be remitted with
5the application. A raffle license shall be valid for 12 months and may be renewed as
6provided in s. 563.98 (1g). The department shall issue the license within 30 business
7days after the filing of an application if the applicant qualifies under s. 563.90
8563.907 and has not exceeded the limits of s. 563.91. All moneys received by the
9department under this subsection shall be credited to the appropriation account
10under s. 20.505 (8) (j).
AB422-ASA1,13 11Section 13. 563.93 (1) (e) of the statutes is amended to read:
AB422-ASA1,6,1212 563.93 (1) (e) The date, time and place of the each drawing or drawings.
AB422-ASA1,14 13Section 14. 563.93 (4) (a) of the statutes is amended to read:
AB422-ASA1,6,1514 563.93 (4) (a) Except as provided in par. (b), tickets for a proposed raffle may
15not be offered for sale more than 270 days before the raffle date of the drawing.
AB422-ASA1,15 16Section 15. 563.93 (4) (b) of the statutes is amended to read:
AB422-ASA1,6,1917 563.93 (4) (b) An organization that existed at least 5 years before the
18organization was issued a Class A license may offer tickets for sale for a proposed
19raffle up to one year before the date of the raffle drawing.
AB422-ASA1,16 20Section 16. 563.93 (4m) of the statutes is amended to read:
AB422-ASA1,6,2421 563.93 (4m) The organization that conducts a raffle under a Class A license
22shall provide the purchaser of a raffle ticket or calendar the purchaser's portion of
23the ticket or calendar before the each raffle drawing is held, but need not provide it
24to the purchaser at the time of purchase.
AB422-ASA1,17 25Section 17. 563.93 (5) of the statutes is amended to read:
AB422-ASA1,7,1
1563.93 (5) All raffle drawings shall be held in public.
AB422-ASA1,18 2Section 18. 563.93 (7) of the statutes is amended to read:
AB422-ASA1,7,43 563.93 (7) If a raffle drawing game is canceled, the organization shall refund
4the receipts to the ticket or calendar purchasers.
AB422-ASA1,19 5Section 19. 563.93 (8) of the statutes is amended to read:
AB422-ASA1,7,86 563.93 (8) The organization that holds a raffle drawing game shall furnish a
7list of prize winners to each ticket or calendar holder who provides the organization
8with a self-addressed stamped envelope and requests the list.
AB422-ASA1,20 9Section 20. 563.93 (9) of the statutes is amended to read:
AB422-ASA1,7,1310 563.93 (9) If a person who holds a Class A license sells equal shares of a single
11ticket to one or more purchasers for a raffle game, the person shall, prior to the date
12on which the
raffle drawing for which the shares were sold is held, purchase any
13shares of the ticket that have not been sold.
AB422-ASA1,21 14Section 21. 563.935 (6) (a) of the statutes is renumbered 563.935 (6) and
15amended to read:
AB422-ASA1,7,2216 563.935 (6) Except as provided in par. (b), the The purchaser of a ticket must
17be present at the drawing to win a prize, unless the purchaser gives the ticket to
18another person who may claim the prize on behalf of the purchaser, but only if that
19other person is present at the drawing. If the purchaser of the ticket gives the ticket
20to another person to claim a prize on behalf of the purchaser, the organization
21conducting the raffle and the department shall not be held responsible or liable in
22any dispute regarding the ownership of the ticket.
AB422-ASA1,22 23Section 22. 563.935 (6) (b) of the statutes is repealed.
AB422-ASA1,23 24Section 23. 563.935 (8) of the statutes is amended to read:
AB422-ASA1,8,3
1563.935 (8) The date, time , and place of the each drawing and, the prizes to be
2awarded, and the prize amount or the methodology used to determine the prize
3amount shall be posted or announced before the each drawing.
AB422-ASA1,24 4Section 24. 563.935 (9) of the statutes is amended to read:
AB422-ASA1,8,65 563.935 (9) If a raffle drawing game is canceled, the organization shall refund
6the receipts to the ticket purchasers.
AB422-ASA1,25 7Section 25. 563.935 (10) (intro.) of the statutes is amended to read:
AB422-ASA1,8,108 563.935 (10) (intro.) A raffle that is of the type described in s. 563.908 (1) and
9that is conducted
under a Class B license to which all of the following apply is one
10raffle for purposes of s. 563.91:
AB422-ASA1,26 11Section 26. 563.98 (1) (f) of the statutes is created to read:
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