Under current law, it is unlawful to make a bet, set up for the purpose of play
any gambling machine, permit the operation of a gambling place or conduct an illegal
lottery. This bill provides that playing an amusement device licensed by DOR is not
a bet; that an amusement device licensed by DOR or that is possessed by a person
licensed by DOR is not a gambling machine; that a lottery does not include the
playing of an amusement device licensed by DOR; and, that the premises on which
an amusement device licensed by DOR is located is not a gambling place.
Finally, under current law the gaming commission regulates and licenses the
playing of crane games. The bill requires DOR to regulate and license crane games.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB774, s. 1 1Section 1. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert
2the following amounts for the purposes indicated: - See PDF for table PDF
AB774, s. 2 3Section 2. 20.197 (1) (j) of the statutes, as affected by 1995 Wisconsin Act 27,
4section 545m, is amended to read:
AB774,3,85 20.197 (1) (j) (title) General program operations; charitable and crane games.
6The amounts in the schedule for general program operations under chs. ch. 563 and
7564
. All moneys received by the gaming board under ch. 563, except s. 563.80, and
8under s. 564.02 (2)
shall be credited to this appropriation account.
AB774, s. 3
1Section 3. 20.566 (9) of the statutes is created to read:
AB774,4,52 20.566 (9) Amusement devices and crane games. (j) General program
3operations.
The amounts in the schedule for general program operations under ch.
4564. All moneys received by the department under ch. 564 shall be credited to this
5appropriation account.
AB774, s. 4 6Section 4. 25.75 (2) of the statutes, as affected by 1995 Wisconsin Act 27, is
7amended to read:
AB774,4,108 25.75 (2) Creation. There is created a separate nonlapsible trust fund known
9as the lottery fund, to consist of gross lottery revenues received by the department
10of revenue and all revenues collected under subch. X of ch. 77.
AB774, s. 5 11Section 5. Chapter 77 (title) of the statutes, as affected by 1995 Wisconsin Act
1256
, is amended to read:
AB774,4,2313 CHAPTER 77
14 TAXATION OF FOREST CROPLANDS;
15 REAL ESTATE TRANSFER FEES;
16 SALES AND USE TAXES;
17 COUNTY and special district
18 SALES AND USE TAXES;
19 MANAGED FOREST LAND;
20 TEMPORARY RECYCLING SURCHARGE;
21 LOCAL FOOD AND BEVERAGE TAX;
22 LOCAL RENTAL CAR TAX; amusement
23Device Tax
AB774, s. 6 24Section 6. 77.51 (4) (b) 7. of the statutes is created to read:
AB774,5,2
177.51 (4) (b) 7. The value of the net proceeds of an amusement device, as defined
2in s. 564.03 (1) (a).
AB774, s. 7 3Section 7. 77.51 (15) (b) 6. of the statutes is created to read:
AB774,5,54 77.51 (15) (b) 6. The value of the net proceeds of an amusement device, as
5defined in s. 564.03 (1) (a).
AB774, s. 8 6Section 8. Subchapter X of chapter 77 [precedes 77.994] of the statutes is
7created to read:
AB774,5,88 Chapter 77
AB774,5,109 Subchapter X
10 Amusement device tax
AB774,5,14 1177.994 Imposition. There is imposed a tax at the rate of 5% of the value of
12the net proceeds of an amusement device, as defined in s. 564.03 (1) (a). The tax
13under this section is imposed on all persons who set up an amusement device for play,
14as provided under s. 564.03.
AB774,5,17 1577.9942 Administration. (1) The department of revenue shall administer
16the tax under this subchapter and may take any action, conduct any proceeding and
17impose interest and penalties.
AB774,5,20 18(2) Sections 77.52 (3) and (18), 77.58 (1) to (5) and (7), 77.59, 77.60, 77.61 (2),
19(5), (8), (9) and (12) to (14) and 77.62 as they apply to the taxes under subch. V apply
20to the tax under this subchapter.
AB774,5,24 21(3) Persons who are subject to the tax under this subchapter shall register with
22the department of revenue. Any person who is required to register; including any
23person who is authorized to act on behalf of a corporation, partnership or other
24person who is required to register; and who fails to do so is guilty of a misdemeanor.
AB774,6,2
1(4) The department of revenue shall deposit all revenue collected under this
2subchapter in the lottery fund.
AB774, s. 9 3Section 9. 561.02 (1) of the statutes, as affected by 1995 Wisconsin Act 27, is
4repealed and recreated to read:
AB774,6,85 561.02 (1) The board shall coordinate and regulate all activities relating to, and
6promulgate all rules relating to, racing and pari-mutuel wagering conducted under
7ch. 562 and bingo and raffles conducted under ch. 563, and shall perform its duties
8and functions under ch. 569 regarding Indian gaming.
AB774, s. 10 9Section 10. 561.06 (1) of the statutes, as affected by 1995 Wisconsin Act 27,
10is amended to read:
AB774,6,1211 561.06 (1) Subject to s. 565.25 (1m), provide all of the security services for the
12gaming operations under chs. 562 to, 563, 565 and 569.
AB774, s. 11 13Section 11. 561.06 (2) to (4) of the statutes are amended to read:
AB774,6,1514 561.06 (2) Monitor the regulatory compliance of gaming operations under chs.
15562 to, 563, 565 and 569.
AB774,6,16 16(3) Audit the gaming operations under chs. 562 to, 563, 565 and 569.
AB774,6,17 17(4) Investigate suspected violations of chs. 562 to, 563, 565 and 569.
AB774, s. 12 18Section 12. 561.12 of the statutes is repealed and recreated to read:
AB774,6,20 19561.12 Charitable gaming. The board shall establish a separate subunit in
20the board to do all of the following:
AB774,6,22 21(1) Advise the board on policy making and rule making relating to the conduct
22of bingo and raffles under ch. 563.
AB774,6,24 23(2) Under the direction of the board, administer the requirements under ch.
24563.
AB774, s. 13 25Section 13. Chapter 564 (title) of the statutes is amended to read:
AB774,7,1
1CHAPTER 564
AB774,7,32 CRANE GAMES and
3 amusement devices
AB774, s. 14 4Section 14. 564.02 (1) (ag) of the statutes is created to read:
AB774,7,55 564.02 (1) (ag) "Department" means the department of revenue.
AB774, s. 15 6Section 15. 564.02 (2) (a) of the statutes is repealed and recreated to read:
AB774,7,117 564.02 (2) (a) No person in this state who owns a crane game may set up for
8the purposes of play, permit a crane game to be set up for the purposes of play or
9collect the proceeds of a crane game which is set up for the purposes of play unless
10the person is registered by the department and unless an identification number
11issued by the department is affixed to each such crane game owned by the person.
AB774, s. 16 12Section 16. 564.02 (2) (b) (intro.) of the statutes is repealed and recreated to
13read:
AB774,7,1614 564.02 (2) (b) (intro.) Every person specified under par. (a) shall file with the
15department, on application forms prescribed by the department and signed by the
16person, all of the following information:
AB774, s. 17 17Section 17. 564.02 (2) (d) of the statutes is repealed and recreated to read:
AB774,7,2118 564.02 (2) (d) Upon receipt of the application and fee under pars. (b) and (c),
19the department shall, if the department considers the applicant qualified, issue a
20certificate of registration for the applicant and an identification number for each
21crane game for which registration is requested.
AB774, s. 18 22Section 18. 564.02 (2) (e) of the statutes is repealed and recreated to read:
AB774,7,2523 564.02 (2) (e) The registration issued under par. (d) shall remain in effect
24unless it is canceled by the department of revenue with the advice and consent of the
25department of justice or unless it is withdrawn by the registered person.
AB774, s. 19
1Section 19. 564.02 (2) (f) of the statutes is repealed and recreated to read:
AB774,8,42 564.02 (2) (f) Every person registered under this section shall notify the
3department of any change in the information required to be furnished by the person
4under par. (b), within 10 days following the change.
AB774, s. 20 5Section 20. 564.02 (2) (g) of the statutes, as affected by 1995 Wisconsin Act 27,
6is repealed and recreated to read:
AB774,8,87 564.02 (2) (g) The department shall deposit all moneys received by the
8department under this subsection in the appropriation under s. 20.566 (9) (j).
AB774, s. 21 9Section 21. 564.02 (2m) (intro.) of the statutes is repealed and recreated to
10read:
AB774,8,1411 564.02 (2m) Conflicts of interest. (intro.) No department employe and no
12member of a department employe's immediate family, as defined in s. 19.42 (7), may,
13while that employe is a department employe or for 2 years following the termination
14of the employment of that department employe, do any of the following:
AB774, s. 22 15Section 22. 564.02 (3) (c) of the statutes is repealed and recreated to read:
AB774,8,1716 564.02 (3) (c) The department of revenue shall reimburse the department of
17justice for the services of the department of justice under this subsection.
AB774, s. 23 18Section 23. 564.02 (4) of the statutes is repealed and recreated to read:
AB774,8,2419 564.02 (4) Seizure and sale. The department of justice may seize any crane
20game owned by a person who is convicted under sub. (5) and may sell the crane game
21in the name of the state. The department of justice and its agents are exempt from
22all liability to the owner of the crane game for the seizure or sale of the crane game.
23The department of revenue shall reimburse the department of justice for the services
24of the department of justice under this subsection.
AB774, s. 24 25Section 24. 564.03 of the statutes is created to read:
AB774,9,2
1564.03 Offering amusement devices for play; registration and
2licensing.
(1) Definitions. In this section:
AB774,9,73 (a) "Amusement device" means any video amusement device if it awards or is
4capable of awarding the player with one or more redeemable free replays or credits
5for achieving certain scores or results and does not change the ratio of plays to free
6replays or credits so awarded. An amusement device set up for the purpose of play
7shall have a percentage of credits awarded to credits played of not less than 83%.
AB774,9,88 (am) "Department" means the department of revenue.
AB774,9,109 (b) "Set up for the purpose of play" means offer a person, for consideration, an
10opportunity to play an amusement device.
AB774,9,13 11(1m) Department authority; local option. (a) Subject to pars. (b) and (c), the
12department, on behalf of all towns, cities and villages, shall license and regulate
13amusement devices in the manner provided in this section.
AB774,9,1914 (b) Electors of any town, city or village may determine, by ballot at the election
15held on the first Tuesday in April, the question of whether amusement devices shall
16be prohibited in the town, city or village. If the electors of any town, city or village
17determine that amusement devices shall be prohibited in the town, city or village,
18the department may not license any amusement device for the purpose of play in the
19town, city or village.
AB774,9,2520 (c) The department may not license any amusement device for the purpose of
21play in a town, city or village that, before the effective date of this paragraph ....
22[revisor inserts date], enacted an ordinance that prohibited in the town, city or
23village the play of any amusement device, unless that town, city or village, on or after
24the effective date of this paragraph .... [revisor inserts date], enacts a subsequent
25ordinance authorizing the play of any amusement device in the town, city or village.
AB774,10,8
1(2) Registration and licensing; fees. (a) No person may market, lease, service,
2repair, warehouse, transport or set up for the purpose of play in this state any
3amusement device or collect the proceeds from an amusement device set up for the
4purpose of play in this state unless the person has been a resident of this state during
5the year immediately prior to applying for a certificate of registration under this
6subsection, the person registers with the department under this subsection and a
7license with an identification number issued by the department is affixed to the
8amusement device.
AB774,10,139 (b) Any person who wishes to market, lease, service, repair, warehouse,
10transport or set up for the purpose of play in this state any amusement device or
11collect the proceeds from an amusement device set up for the purpose of play in this
12state shall file with the department, on application forms prescribed by the
13department, a signed application that includes all of the following information:
AB774,10,1814 1. The name and address of the person. If the person is a corporation or other
15entity, the person shall also file with the department the name and address of all
16officers, directors, agents and stockholders or other persons holding or controlling,
17either directly or indirectly, 5% or more of the ownership of the corporation or other
18entity.
AB774,10,2019 2. The person's place or places of residence in this state, if any, during the year
20immediately prior to applying for a certificate of registration under this subsection.
AB774,10,2221 3. The serial number and manufacturer of each amusement device that the
22person intends to set up for the purpose of play in this state.
AB774,10,2423 4. The location of the premises at which the amusement devices shall be set up
24for the purpose of play.
AB774,11,4
1(c) A nonrefundable fee, set by the department to cover all costs of processing
2the application filed under par. (b), and the first year's license fees shall accompany
3the application under par. (b). If the department does not approve the application
4under par. (b), the department shall refund the license fees to the person.
AB774,11,85 (d) Upon receipt of the application under par. (b) and the fees specified under
6par. (c), but subject to pars. (e) to (f), the department shall issue a certificate of
7registration to each applicant who has met the requirements of this subsection and
8a license with an identification number for each amusement device.
AB774,11,139 (e) The department may not issue a certificate of registration under this
10subsection to any person who is a corporation or other entity unless at least 51% of
11the ownership in that corporation or other entity is held by one or more persons who
12have been residents of this state during the year immediately prior to applying for
13a certificate of registration.
AB774,11,1714 (em) The department may not issue a license with an identification number for
15an amusement device that is set up for the purpose of play at a location in a town,
16city or village other than a premises issued a Class "B" license under s. 125.26 or a
17"Class B" license under s. 125.51.
AB774,11,2018 (f) Notwithstanding ss. 111.321, 111.322 and 111.335, the department may not
19issue a certificate of registration under this subsection to any person to whom any
20of the following applies:
AB774,11,2221 1. The person has been convicted of a misdemeanor, not involving chs. 340 to
22349, at least 3 times.
AB774,11,2323 2. The person has been convicted of a felony, unless pardoned.
AB774,11,2424 3. The person is addicted to the use of a controlled substance under ch. 161.
AB774,11,2525 4. The person has been convicted of 2 or more gambling offenses.
AB774,12,1
15. The person has been convicted of crimes relating to prostitution.
AB774,12,32 6. The person has been convicted of crimes relating to loaning money or
3anything of value to persons holding licenses or permits pursuant to ch. 125.
AB774,12,44 7. The person does not hold a permit under s. 77.52 (7), if the person is a retailer.
AB774,12,95 8. The person has been finally adjudged to be delinquent in the payment of
6taxes under ch. 71, 72, 76, 77, 78 or 139 or the person has been found delinquent in
7the payment of contributions to the unemployment reserve fund under s. 108.16 in
8a proceeding under s. 108.10 and the person remains so delinquent at the time of
9filing an application under par. (b).
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