AB774: Bill Text

AB774, s. 24 Section 24. 564.03 of the statutes is created to read:

AB774,9,2 564.03 Offering amusement devices for play; registration and licensing. (1) Definitions. In this section:

AB774,9,7 (a) "Amusement device" means any video amusement device if it awards or is capable of awarding the 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. An amusement device set up for the purpose of play shall have a percentage of credits awarded to credits played of not less than 83%.

AB774,9,8 (am) "Department" means the department of revenue.

AB774,9,10 (b) "Set up for the purpose of play" means offer a person, for consideration, an opportunity to play an amusement device.

AB774,9,13 (1m) Department authority; local option. (a) Subject to pars. (b) and (c), the department, on behalf of all towns, cities and villages, shall license and regulate amusement devices in the manner provided in this section.

AB774,9,19 (b) Electors of any town, city or village may determine, by ballot at the election held on the first Tuesday in April, the question of whether amusement devices shall be prohibited in the town, city or village. If the electors of any town, city or village determine that amusement devices shall be prohibited in the town, city or village, the department may not license any amusement device for the purpose of play in the town, city or village.

AB774,9,25 (c) The department may not license any amusement device for the purpose of play in a town, city or village that, before the effective date of this paragraph .... [revisor inserts date], enacted an ordinance that prohibited in the town, city or village the play of any amusement device, unless that town, city or village, on or after the effective date of this paragraph .... [revisor inserts date], enacts a subsequent ordinance authorizing the play of any amusement device in the town, city or village.

AB774,10,8 (2) Registration and licensing; fees. (a) No person may market, lease, service, repair, warehouse, transport or set up for the purpose of play in this state any amusement device or collect the proceeds from an amusement device set up for the purpose of play in this state unless the person has been a resident of this state during the year immediately prior to applying for a certificate of registration under this subsection, the person registers with the department under this subsection and a license with an identification number issued by the department is affixed to the amusement device.

AB774,10,13 (b) Any person who wishes to market, lease, service, repair, warehouse, transport or set up for the purpose of play in this state any amusement device or collect the proceeds from an amusement device set up for the purpose of play in this state shall file with the department, on application forms prescribed by the department, a signed application that includes all of the following information:

AB774,10,18 1. The name and address of the person. If the person is a corporation or other entity, the person shall also file with the department the name and address of all officers, directors, agents and stockholders or other persons holding or controlling, either directly or indirectly, 5% or more of the ownership of the corporation or other entity.

AB774,10,20 2. The person's place or places of residence in this state, if any, during the year immediately prior to applying for a certificate of registration under this subsection.

AB774,10,22 3. The serial number and manufacturer of each amusement device that the person intends to set up for the purpose of play in this state.

AB774,10,24 4. The location of the premises at which the amusement devices shall be set up for the purpose of play.

AB774,11,4 (c) A nonrefundable fee, set by the department to cover all costs of processing the application filed under par. (b), and the first year's license fees shall accompany the application under par. (b). If the department does not approve the application under par. (b), the department shall refund the license fees to the person.

AB774,11,8 (d) Upon receipt of the application under par. (b) and the fees specified under par. (c), but subject to pars. (e) to (f), the department shall issue a certificate of registration to each applicant who has met the requirements of this subsection and a license with an identification number for each amusement device.

AB774,11,13 (e) The department may not issue a certificate of registration under this subsection to any person who is a corporation or other entity unless at least 51% of the ownership in that corporation or other entity is held by one or more persons who have been residents of this state during the year immediately prior to applying for a certificate of registration.

AB774,11,17 (em) The department may not issue a license with an identification number for an amusement device that is set up for the purpose of play at a location in a town, city or village other than a premises issued a Class "B" license under s. 125.26 or a "Class B" license under s. 125.51.

AB774,11,20 (f) Notwithstanding ss. 111.321, 111.322 and 111.335, the department may not issue a certificate of registration under this subsection to any person to whom any of the following applies:

AB774,11,22 1. The person has been convicted of a misdemeanor, not involving chs. 340 to 349, at least 3 times.

AB774,11,23 2. The person has been convicted of a felony, unless pardoned.

AB774,11,24 3. The person is addicted to the use of a controlled substance under ch. 161.

AB774,11,25 4. The person has been convicted of 2 or more gambling offenses.

AB774,12,1 5. The person has been convicted of crimes relating to prostitution.

AB774,12,3 6. The person has been convicted of crimes relating to loaning money or anything of value to persons holding licenses or permits pursuant to ch. 125.

AB774,12,4 7. The person does not hold a permit under s. 77.52 (7), if the person is a retailer.

AB774,12,9 8. The person has been finally adjudged to be delinquent in the payment of taxes under ch. 71, 72, 76, 77, 78 or 139 or the person has been found delinquent in the payment of contributions to the unemployment reserve fund under s. 108.16 in a proceeding under s. 108.10 and the person remains so delinquent at the time of filing an application under par. (b).

AB774,12,13 (g) Upon denial of an application under par. (b), the department shall immediately notify the person in writing and shall state the reasons for the denial. A denial of an application under par. (b) shall be subject to judicial review under ch. 227.

AB774,12,16 (h) 1. The department shall charge, on behalf of a town, city or village, an annual license fee of $1,000 for each amusement device set up for the purpose of play. The person shall pay this fee directly to the town, city or village.

AB774,12,22 2. The department shall charge an additional annual license fee of $500 for each amusement device set up for the purpose of play to defray the costs incurred by the department in enforcing this subsection, but the department may not charge any one person under this subdivision more than a total of $10,000 in license fees in any one year, regardless of the number of amusement devices that the person intends to set up for the purpose of play in this state.

AB774,12,23 3. Any license issued under this subsection shall remain in effect for one year.

AB774,13,2 (i) The certificate of registration issued under par. (d) shall remain in effect unless it is canceled by the department of revenue, after consulting with the department of justice, or unless it is withdrawn by the person who is issued the certificate of registration.

AB774,13,5 (j) Every person registered under this section shall notify the department of any change in the information provided under par. (b) by the 10th day of the first month following the change in information.

AB774,13,8 (k) The department may not permit any amusement device located at one premises to be in any way linked to another amusement device located at another premises for the purpose of creating a progressive prize.

AB774,13,10 (L) The department shall deposit all moneys received under this subsection in the appropriation account under s. 20.566 (9) (j).

AB774,13,13 (3) Prohibited practices relating to amusement devices. (a) No person may keep more than 5 amusement devices at any one premises operated under a Class "B" license under s. 125.26 or a "Class B" license under s. 125.51.

AB774,13,18 (b) No person may play, or permit another person to play, an amusement device at a premises operated under a Class "B" or "Class B" license in a town, city or village during hours in which the premises is closed or the sale of fermented malt beverages or intoxicating liquor is prohibited under s. 125.32 (3) (a) or (c) or 125.68 (4) (c) 1. or 4.

AB774,13,25 (c) No owner of a premises may set up for the purpose of play an amusement device at his or her premises unless he or she has entered into a written agreement with a person who owns the amusement device for the use of that amusement device at his or her premises and a copy of the agreement is kept on the premises and made available for inspection to any person authorized by the department. This paragraph shall not apply to an owner of a premises who is also the owner of every amusement device kept at his or her premises.

AB774,14,3 (d) No person may engage in the advertising of any amusement device set up for the purpose of play or offer, or allow to be offered, to any other person any special inducement for playing an amusement device.

AB774,14,6 (e) No person registered under sub. (2) may purchase an amusement device from a person other than a person registered under sub. (2) or a distributor registered under sub. (4) (c).

AB774,14,8 (f) No person may play an amusement device if the person is under 21 years of age.

AB774,14,10 (g) No person may set up for the purpose of play an amusement device that permits more than one person to play the amusement device at the same time.

AB774,14,13 (4) Manufacturers and distributors of amusement devices; registration and fees. (a) No person who is a manufacturer of amusement devices may do any of the following:

AB774,14,17 1. Do any business in this state related to amusement devices unless the person submits an application for registration with the department under par. (c), pays the first year's annual license fee and the nonrefundable fee set by the department to cover all costs of processing the application and is issued a manufacturer's license.

AB774,14,20 2. Sell an amusement device to any person other than a distributor of amusement devices with a valid distributor's license issued by the commission under par. (c).

AB774,14,22 3. Hold or control, either directly or indirectly, any ownership interest of a distributor with a valid distributor's license issued by the department under par. (c).

AB774,14,23 4. Set up for the purpose of play any amusement device.

AB774,14,25 (b) No person who is a distributor of amusement devices may do any of the following:

AB774,15,5 1. Sell, repair, distribute, warehouse, transport, display or market an amusement device unless the person submits an application for registration with the department under par. (c), pays the first year's annual license fee and the nonrefundable fee set by the department to cover all costs of processing the application and is issued a distributor's license.

AB774,15,6 2. Set up for the purpose of play any amusement device.

AB774,15,8 3. Sell an amusement device to any person other than a person registered with the department under sub. (2).

AB774,15,10 4. Hold or control, either directly or indirectly, any ownership interest of a person registered under sub. (2).

AB774,15,11 (c) The department shall do all of the following:

AB774,15,20 1. Upon receipt of an application of registration from a person under par. (a) or (b), submission of the first year's license fee and payment of a nonrefundable fee set by the department to cover all costs of processing the application, issue a manufacturer's license to each applicant under par. (a) and a distributor's license to each applicant under par. (b) who has met the requirements specified under sub. (2) (b) 1. and (f) for a person applying for a certificate of registration under sub. (2) and the requirements of this subsection. The license shall remain in effect unless it is canceled by the department of revenue, after consulting with the department of justice, or unless it is withdrawn by the person who is issued the license.

AB774,15,22 2. Charge an annual fee for a manufacturer's license and distributor's license in the amount of $10,000. The license shall remain in effect for one year.

AB774,15,25 3. Upon denial of an application under subd. 1., immediately notify the person in writing and state the reasons for the denial. A denial of an application under subd. 1. shall be subject to review under ch. 227.

AB774,16,2 4. Deposit all moneys received under this subsection in the appropriation account under s. 20.566 (9) (j).

AB774,16,4 (4m) Rule making. (a) The department shall promulgate all rules necessary to administer this section.

AB774,16,9 (b) The department may provide by rule that an amusement device set up for the purpose of play may have a percentage of credits awarded to credits played that is equal to the minimum percentage for a similar amusement device under a compact entered into under s. 14.035, but only if the percentage is equal to or greater than 83%.

AB774,16,13 (5) Conflicts of interest. No department employe and no department employe's immediate family, as defined in s. 19.42 (7), may, while that employe is a department employe or for 2 years following the termination of the employment of that department employe, do any of the following:

AB774,16,15 (a) Have any direct or indirect interest in any person who is registered or required to be registered under sub. (2) or (4).

AB774,16,17 (b) Accept or agree to accept money or any thing of value from any person who is registered or required to be registered under sub. (2) or (4).

AB774,16,19 (c) Directly or indirectly own or operate any amusement device licensed under sub. (2).

AB774,16,24 (6) Investigation and enforcement. (a) In response to a written complaint, the department shall conduct an investigation of any person registered under sub. (2) or (4). The department may conduct an inspection of a person registered under sub. (2) or (4), of the amusement device licensed to the person or of the premises on which the amusement device is played, at any time.

AB774,17,6 (am) The department may conduct an investigation to determine if a person markets, leases, services, repairs, warehouses, transports or sets up for the purposes of play an amusement device or collects the proceeds of an amusement device which is set up for the purposes of play without being registered under sub. (2) or if a person sells, repairs, distributes, warehouses, displays or markets an amusement device without being registered under sub. (4).

AB774,17,10 (b) An action for violation of this section may be prosecuted in any circuit court of this state by the department in the name of the state and, in any such action, the department shall exercise all of the powers and perform all duties which the district attorney would otherwise be authorized to exercise or perform.

AB774,17,14 (7) Seizure and sale. The department may seize any amusement device owned by a person who is convicted under sub. (8) and may sell the amusement device in the name of the state. The department and its agents are exempt from all liability to the owner of the amusement device for the seizure or sale of the amusement device.

AB774,17,18 (8) Penalty. Any person who violates this section may be required to forfeit not less than $500 nor more than $5,000 for each offense. Each day of continued violation constitutes a separate offense. The period shall be measured by using the dates of the offenses which resulted in convictions.

AB774, s. 25 Section 25. 564.04 of the statutes is created to read:

AB774,17,20 564.04 Applicability. The requirements of ch. 565 do not apply to this chapter.

AB774, s. 26 Section 26. 945.01 (1) (dm) of the statutes is created to read:

AB774,17,22 945.01 (1) (dm) Playing an amusement device licensed under ch. 564.

AB774, s. 27 Section 27. 945.01 (3) (a) of the statutes is amended to read:

AB774,18,4 945.01 (3) (a) A gambling machine is a contrivance which for a consideration affords the player an opportunity to obtain something of value, the award of which is determined by chance, even though accompanied by some skill and whether or not the prize is automatically paid by the machine. A gambling machine includes a slot machine that dispenses coins or tokens and that is activated by a lever, button, coin, token or debit or credit card.

AB774, s. 28 Section 28. 945.01 (3) (b) 1m. of the statutes is created to read:

AB774,18,7 945.01 (3) (b) 1m. An amusement device licensed under ch. 564 or an amusement device possessed by a person who is registered under s. 564.03 (2) or (4).

AB774, s. 29 Section 29. 945.01 (4) (am) of the statutes, as affected by 1995 Wisconsin Act 11, is amended to read:

AB774,18,15 945.01 (4) (am) "Gambling place" does not include a place where bingo or a raffle is conducted under ch. 563, where an amusement device licensed under ch. 564 is played or stored, where a lottery is conducted under ch. 565 or where a race is conducted under ch. 562 and does not include a gambling vessel that is in the process of construction, delivery, conversion or repair by a shipbuilding business that complies with s. 945.095.

AB774, s. 30 Section 30. 945.01 (5) (am) of the statutes is amended to read:

AB774,18,20 945.01 (5) (am) "Lottery" does not include bingo or a raffle conducted under ch. 563, the playing of an amusement device licensed under ch. 564, pari-mutuel wagering conducted under ch. 562 or the state lottery or any multistate lottery conducted under ch. 565.

AB774, s. 31 Section 31. 1995 Wisconsin Act 27, section 9123 (6ps) (a), (b), (c) 2. and (e) 2. are amended to read:

AB774,19,2 [1995 Wisconsin Act 27] Section 9123 (6ps) (a) Assets and liabilities. On July 1, 1996, all assets and liabilities of the gaming commission shall become the assets and liabilities of the gaming board, except that those assets and liabilities that relate to crane games and the state lottery shall become the assets and liabilities of the department of revenue.

AB774,19,7 (b) Tangible personal property. On July 1, 1996, all tangible personal property, including records, of the gaming commission is transferred to the gaming board, except that the tangible personal property, including records, of the gaming commission that relate to crane games and the state lottery is transferred to the department of revenue.

AB774,19,12 (c) 2. All contracts entered into by the gaming commission that relate to crane games and the state lottery which are in effect on July 1, 1996, remain in effect and are transferred to the department of revenue. The department of revenue shall carry out any such contractual obligations until modified or rescinded by the department of revenue to the extent allowed under the contract.

AB774,19,17 (e) 2. Any matters pending with the gaming commission that relate to crane games and the state lottery on July 1, 1996, are transferred to the department of revenue and all materials submitted to or actions taken by the gaming commission with respect to any pending matter are considered as having been submitted to or taken by the department of revenue.

AB774, s. 32 Section 32. Nonstatutory provisions.

AB774,19,22 (1) Submission of amusement device rules to legislative council staff. The department of revenue shall submit the proposed rules under section 564.03 (4m) of the statutes, as created by this act, to the legislative council staff under section 227.15 (1) of the statutes no later than January 1, 1997.

AB774,20,2 (2) Regulation of amusement devices. The department of revenue shall administer section 564.03 of the statutes, as created by this act, on a case-by-case basis prior to the effective date of the rules promulgated under section 564.03 (4m) of the statutes, as created by this act.

AB774,20,6 (3) Amusement devices. The authorized FTE positions for the department of revenue are increased by 9.0 PR positions on July 1, 1996, to be funded from the appropriation under section 20.566 (9) (j) of the statutes, as created by this act, for the purpose of regulating and licensing amusement devices.