AB776-ASA1, s. 3 12Section 3. 20.505 (5) (ka) of the statutes, as affected by 1995 Wisconsin Act 27,
13is amended to read:
AB776-ASA1,3,514 20.505 (5) (ka) (title) Facility operations and maintenance; police and
15protection lottery security functions. The amounts in the schedule for the purpose of
16financing the costs of operation of state-owned or operated facilities that are not
17funded from other appropriations, including custodial and maintenance services;
18minor projects; utilities, fuel, heat and air conditioning; costs incurred under s.
1916.895 by or on behalf of the department; repayment to the energy efficiency fund
20loans made to the department under s. 16.847 (6); and supplementing the costs of
21operation of child care facilities for children of state employes under s. 16.841; and
22for police and protection security functions under s. 16.84 (2) and (3). All moneys
23received from state agencies for the operation of such facilities, parking rental fees

1established under s. 16.843 (2) (bm) and miscellaneous other sources, all moneys
2received from assessments under s. 16.895, all moneys received for the performance
3of gaming protection lottery security functions under s. 16.84 (3), and all moneys
4transferred from the appropriation account under s. 20.865 (2) (e) for this purpose
5shall be credited to this appropriation account.
AB776-ASA1, s. 4 6Section 4. 20.566 (8) (v) of the statutes, as affected by 1995 Wisconsin Act 27,
7is amended to read:
AB776-ASA1,3,108 20.566 (8) (v) (title) On-line vendor Vendor fees. From the lottery fund, a sum
9sufficient to pay vendors for on-line services and supplies provided by the vendors
10under contract under s. 565.25 (2) (a).
AB776-ASA1, s. 5 11Section 5. 25.75 (1) (c) (intro.) of the statutes is amended to read:
AB776-ASA1,3,1312 25.75 (1) (c) (intro.) "Lottery proceeds" means the remainder of the gross lottery
13fund revenues after deducting all of the following:
AB776-ASA1, s. 6 14Section 6. 25.75 (2) of the statutes, as affected by 1995 Wisconsin Act 27, is
15amended to read:
AB776-ASA1,3,1916 25.75 (2) Creation. There is created a separate nonlapsible trust fund known
17as the lottery fund, to consist of gross lottery fund revenues received by the
18department of revenue
. Lottery fund revenues include gross lottery revenues and
19penalties collected under s. 79.10 (10) (f)
.
AB776-ASA1, s. 7 20Section 7. 79.10 (10) (bm) of the statutes is created to read:
AB776-ASA1,3,2321 79.10 (10) (bm) If the department of revenue audits a lottery credit claim, the
22department may require the claimant to include the claimant's social security
23number on the claimant's response to an audit questionnaire.
AB776-ASA1, s. 8 24Section 8. 79.10 (10) (d) of the statutes is amended to read:
AB776-ASA1,4,8
179.10 (10) (d) If the department of revenue determines that a credit was
2claimed by a taxpayer who was not entitled to the credit for reasons other than that
3the taxpayer failed to furnish the information required under par. (a), the
4department of revenue shall collect the credit as a special charge against the county
5where the property for which the credit was claimed is located. The county shall

6instruct the appropriate taxation district to collect the credit as a special charge on
7the next property tax bill issued for the property. The department may dismiss the
8special charge if the owner of the property did not make the claim for the credit.
AB776-ASA1, s. 9 9Section 9. 79.10 (10) (f) of the statutes is created to read:
AB776-ASA1,4,1410 79.10 (10) (f) If a person intentionally files a false lottery credit claim under
11sub. (9) (bm), that person shall be subject to a penalty of $100. Each false claim
12constitutes a separate offense. Penalties collected under this paragraph shall be
13deposited in the lottery fund. Sections 71.91 and 71.93, as they apply to the taxes
14under ch. 71, apply to the penalty under this paragraph.
AB776-ASA1, s. 10 15Section 10. Chapter 561 (title) of the statutes is repealed and recreated to
16read:
AB776-ASA1,4,1717 CHAPTER 561
AB776-ASA1,4,1818 GAMING
AB776-ASA1, s. 11 19Section 11. 561.02 of the statutes, as affected by 1995 Wisconsin Act 27, is
20repealed and recreated to read:
AB776-ASA1,4,25 21561.02 General powers and duties. (1) Gaming board. The board shall
22coordinate and regulate all activities relating to, and promulgate all rules relating
23to, racing and pari-mutuel wagering conducted under ch. 562, bingo and raffles
24conducted under ch. 563 and crane games conducted under ch. 564, and shall
25perform its duties and functions under ch. 569 regarding Indian gaming.
AB776-ASA1,5,3
1(2) Department of revenue. The department of revenue shall coordinate and
2regulate all activities relating to, and promulgate all rules relating to, the state
3lottery under ch. 565.
AB776-ASA1, s. 12 4Section 12. 561.06 (1) of the statutes, as affected by 1995 Wisconsin Act 27,
5is amended to read:
AB776-ASA1,5,76 561.06 (1) Subject to s. 565.25 (1m), provide Provide all of the security services
7for the gaming operations under chs. 562 to 564 and 569.
AB776-ASA1, s. 13 8Section 13. 561.06 (2) of the statutes is amended to read:
AB776-ASA1,5,109 561.06 (2) Monitor the regulatory compliance of gaming operations under chs.
10562 to 564 and 569.
AB776-ASA1, s. 14 11Section 14. 561.06 (3) of the statutes is amended to read:
AB776-ASA1,5,1212 561.06 (3) Audit the gaming operations under chs. 562 to 564 and 569.
AB776-ASA1, s. 15 13Section 15. 561.06 (4) of the statutes is amended to read:
AB776-ASA1,5,1414 561.06 (4) Investigate suspected violations of chs. 562 to 564 and 569.
AB776-ASA1, s. 16 15Section 16. 565.017 of the statutes is created to read:
AB776-ASA1,5,19 16565.017 Lottery security. Subject to s. 565.25 (1m), the department may
17provide any security services for the lottery operations under this chapter or may
18contract with the department of administration or any person for the provision of any
19security services for the lottery operations under this chapter.
AB776-ASA1, s. 17 20Section 17. 565.02 (1) (a) of the statutes, as affected by 1995 Wisconsin Act 27,
21is repealed.
AB776-ASA1, s. 18 22Section 18. 565.02 (1) (b) 4. of the statutes, as affected by 1995 Wisconsin Act
2327
, is amended to read:
AB776-ASA1,5,2524 565.02 (1) (b) 4. A violation of a provision of this chapter or rule of the board
25department relating to the state lottery.
AB776-ASA1, s. 19
1Section 19. 565.02 (2) (b) of the statutes, as affected by 1995 Wisconsin Act 27,
2section 6978b, is amended to read:
AB776-ASA1,6,53 565.02 (2) (b) The administrator shall appoint and supervise employes, as
4specified by the board department by rule under sub. (3) (a), as necessary to carry
5out the duties of the administrator.
AB776-ASA1, s. 20 6Section 20. 565.02 (2) (c) 3. of the statutes, as affected by 1995 Wisconsin Act
727
, is amended to read:
AB776-ASA1,6,98 565.02 (2) (c) 3. A violation of a provision of this chapter or rule of the board
9department relating to the state lottery.
AB776-ASA1, s. 21 10Section 21. 565.02 (3) (intro.) of the statutes, as affected by 1995 Wisconsin
11Act 27
, is amended to read:
AB776-ASA1,6,1312 565.02 (3) (intro.)  The board department shall promulgate all of the following
13rules:
AB776-ASA1, s. 22 14Section 22. 565.02 (3) (b) 6. of the statutes, as affected by 1995 Wisconsin Act
1527
, is amended to read:
AB776-ASA1,6,1716 565.02 (3) (b) 6. Qualifications for retailers, in addition to those under this
17section, as determined by the board department.
AB776-ASA1, s. 23 18Section 23. 565.02 (4) (intro.) of the statutes, as affected by 1995 Wisconsin
19Act 27
, is amended to read:
AB776-ASA1,6,2120 565.02 (4) (intro.)  The board department may promulgate all of the following
21rules:
AB776-ASA1, s. 24 22Section 24. 565.05 (1) (intro.) of the statutes, as affected by 1995 Wisconsin
23Act 27
, is repealed and recreated to read:
AB776-ASA1,7,3
1565.05 (1) (intro.) No employe of the department who performs any duty
2related to the state lottery or the executive assistant or the secretary or deputy
3secretary of revenue may do any of the following:
AB776-ASA1, s. 25 4Section 25. 565.05 (1) (a) of the statutes, as affected by 1995 Wisconsin Act 27,
5is repealed and recreated to read:
AB776-ASA1,7,96 565.05 (1) (a) Have a direct or indirect interest in, or be employed by, any
7vendor while serving as an employe in the department and performing any duty
8related to the state lottery or as the executive assistant or as secretary or deputy
9secretary of revenue or for 2 years following the person's termination of service.
AB776-ASA1, s. 26 10Section 26. 565.10 (1) of the statutes, as affected by 1995 Wisconsin Act 27,
11is amended to read:
AB776-ASA1,7,1612 565.10 (1) Selection of retailers; retailer contract. Under rules
13promulgated by the board department under s. 565.02 (3) (b) and (4) (a), the
14administrator may contract with a person for the retail sale of lottery tickets or
15lottery shares. Retailers shall be selected for contract so as to provide adequate and
16convenient availability of lottery tickets and lottery shares to prospective buyers.
AB776-ASA1, s. 27 17Section 27. 565.10 (7) (b) of the statutes, as affected by 1995 Wisconsin Act 27,
18is amended to read:
AB776-ASA1,7,2119 565.10 (7) (b) The administrator may, under rules promulgated by the board
20department, contract for a period that is shorter than 3 years in order to stagger
21lottery retailer contract expiration dates throughout a 3-year period.
AB776-ASA1, s. 28 22Section 28. 565.10 (8) of the statutes, as affected by 1995 Wisconsin Act 27,
23is amended to read:
AB776-ASA1,8,424 565.10 (8) Contract fees. A contract entered into under this section may
25require payment of a nonrefundable initial application fee or a nonrefundable

1annual fee for continuation, or both, in an amount promulgated by the board
2department by rule under s. 565.02 (4) (b). A separate nonrefundable fee, in an
3amount specified in rules promulgated under s. 565.02 (4) (b), may be required for
4each certificate of authority issued under sub. (11).
AB776-ASA1, s. 29 5Section 29. 565.10 (14) (b) of the statutes, as affected by 1995 Wisconsin Act
627
, section 6979m, is amended to read:
AB776-ASA1,8,127 565.10 (14) (b) The basic compensation to be paid to a retailer is 5.5% of the
8retail price of lottery tickets or lottery shares sold by the retailer. The board
9department may, in the rules promulgated under s. 565.02 (4) (f), provide for the
10payment of a higher rate of compensation to nonprofit organizations making sales
11under a contract issued on a temporary basis than the rate of compensation paid to
12other retailers.
AB776-ASA1, s. 30 13Section 30. 565.10 (15) of the statutes, as affected by 1995 Wisconsin Act 27,
14is amended to read:
AB776-ASA1,8,1915 565.10 (15) Remitting proceeds. A retailer shall, on a daily basis, unless
16another basis, but not less than weekly, is provided by the board department by rule,
17remit to the department the lottery proceeds from the sale of lottery tickets or lottery
18shares. The amount of compensation deducted by the retailer, if any, shall be
19indicated as a deduction from the total remitted.
AB776-ASA1, s. 31 20Section 31. 565.12 (2) of the statutes, as affected by 1995 Wisconsin Act 27,
21is amended to read:
AB776-ASA1,9,922 565.12 (2) If the administrator determines that the immediate suspension or
23termination of a lottery retailer contract entered into under s. 565.10 is necessary to
24protect the public interest or the security, integrity or fiscal responsibility of the
25lottery, the administrator may, without prior notice or hearing, suspend for a

1specified period or terminate the lottery retailer contract by mailing to the retailer
2a notice of suspension or termination that includes a statement of the facts or conduct
3that warrant the suspension or termination and a notice that the retailer may, within
430 days after the date on which the notice of suspension or termination is mailed,
5have the suspension or termination reconsidered by the administrator. If, upon
6reconsideration, the administrator affirms the determination to suspend or
7terminate the lottery retailer contract, the retailer shall be afforded an opportunity
8for a hearing before the board department to review the determination of the
9administrator.
AB776-ASA1, s. 32 10Section 32. 565.12 (3) of the statutes, as affected by 1995 Wisconsin Act 27,
11is amended to read:
AB776-ASA1,9,1312 565.12 (3) The board department shall render the final decisions under s.
13227.47 for all terminations and suspensions under subs. (1) and (2).
AB776-ASA1, s. 33 14Section 33. 565.17 (5) (title) of the statutes, as affected by 1995 Wisconsin Act
1527
, is amended to read:
AB776-ASA1,9,1716 565.17 (5) (title) Board members and employes; certain Certain department
17employes.
AB776-ASA1, s. 34 18Section 34. 565.17 (5) (a) of the statutes, as affected by 1995 Wisconsin Act 27,
19is repealed and recreated to read:
AB776-ASA1,9,2320 565.17 (5) (a) No employe of the department who performs any duty related to
21the state lottery or the executive assistant or the secretary or deputy secretary of
22revenue and no member of such a person's immediate family, as defined in s. 19.42
23(7), may purchase a lottery ticket or lottery share.
AB776-ASA1, s. 35 24Section 35. 565.25 (1m) of the statutes, as affected by 1995 Wisconsin Act 27,
25section 6981b, is amended to read:
AB776-ASA1,10,18
1565.25 (1m) Scope of authority. Subject to approval by the board secretary of
2revenue
, the administrator may determine whether lottery functions shall be
3performed by department of revenue employes or by one or more persons under
4contract with the department of administration, except that no contract may provide
5for the entire management of the lottery or for the entire operation of the lottery by
6any private person. The department of administration may contract for
7management consultation services to assist in the management or operation of the
8lottery. The department of administration may not contract for financial auditing
9or security monitoring services, except that, if the department of administration
10delegates under s. 16.71 (1) to the department of revenue the authority to make a
11major procurement, the department of revenue may contract with the department
12of administration for warehouse and building protection any security services
13relating to the state lottery. If the department of administration delegates under s.
1416.71 (1) to the department of revenue the authority to make a major procurement,
15the department of revenue shall assume the powers and duties of the department of
16administration and the administrator shall assume the powers and duties of the
17secretary of administration under this section and ss. 16.70 to 16.77, except under
18ss. 16.72 (4) (a), 16.76 (1) and 16.77 (1).
AB776-ASA1, s. 36 19Section 36. 565.25 (2) (a) 6. of the statutes, as affected by 1995 Wisconsin Act
2027
, is amended to read:
AB776-ASA1,11,221 565.25 (2) (a) 6. If the department of administration delegates under s. 16.71
22(1) to the department of revenue the authority to make a major procurement, the
23award of the major procurement contract is subject to approval by the board and to
24the requirements in ss. 16.72 (4) (a) and 16.76 (1). Copies of requisitions and

1contracts for major procurements shall be maintained by the administrator and shall
2be subject to inspection and copying under subch. II of ch. 19.
AB776-ASA1, s. 37 3Section 37. 565.27 (1) (intro.) of the statutes, as affected by 1995 Wisconsin
4Act 27
, is amended to read:
AB776-ASA1,11,115 565.27 (1)Game features and procedures. (intro.) Subject to this section, the
6rules promulgated under s. 565.02 (3) (d) and (4) (a) and board approval by the
7secretary of revenue
, the administrator shall determine the particular features of
8and procedures for each lottery game offered. The administrator shall recommend
9to the board for promulgation by rule under s. 565.02 (3) (d) the types of state or
10multistate lottery games to be offered.
The features and procedures shall be in
11writing, shall be accessible to the public and shall include all of the following:
AB776-ASA1, s. 38 12Section 38. 565.27 (2) (a) of the statutes, as affected by 1995 Wisconsin Act 27,
13is amended to read:
AB776-ASA1,11,1614 565.27 (2) (a) The actual selection of any winning lottery ticket or lottery share
15may not be performed by an elected or appointed official, or an employe of the lottery
16division in the department or a member or employe of the board.
AB776-ASA1, s. 39 17Section 39. 565.30 (1) of the statutes, as affected by 1995 Wisconsin Act 27,
18is amended to read:
AB776-ASA1,11,2519 565.30 (1) Payment of prizes. The administrator shall direct the payment of a
20prize to the holder of the winning lottery ticket or lottery share or to a person
21designated under sub. (2), except that a prize may be paid to another person under
22a court order or to the estate of a deceased prize winner. The board, department,
23administrator, state and any contractor for materials, equipment or services of the
24game in which the prize is won are discharged of all liability upon payment of the
25prize to the holder of a winning lottery ticket or lottery share.
AB776-ASA1, s. 40
1Section 40. 565.30 (3) (b) of the statutes is amended to read:
AB776-ASA1,12,52 565.30 (3) (b) Retailer bonuses. Any bonuses offered by the board department
3to retailers who sell winning lottery tickets or lottery shares shall be paid to the
4retailer regardless of whether the prize is claimed if the retailer can be identified as
5the seller of the winning ticket or share.
AB776-ASA1, s. 41 6Section 41. 565.30 (5) of the statutes is amended to read:
AB776-ASA1,13,57 565.30 (5) Withholding of delinquent state taxes, child support or debts
8owed the state.
The administrator shall report the name, address and social security
9number of each winner of a lottery prize equal to or greater than $1,000 to the
10department secretary of revenue to determine whether the payee of the prize is
11delinquent in the payment of state taxes under ch. 71, 72, 76, 77, 78 or 139 or in
12court-ordered payment of child support or has a debt owing to the state. Upon
13receipt of a report under this subsection, the department secretary of revenue shall
14first ascertain based on certifications by the department of health and family
15services under s. 46.255 (2) whether any person named in the report is currently
16delinquent in court-ordered payment of child support and shall next certify to the
17administrator whether any person named in the report is delinquent in
18court-ordered payment of child support or payment of state taxes under ch. 71, 72,
1976, 77, 78 or 139. Upon this certification by the department secretary of revenue or
20upon court order the administrator shall withhold the certified amount and send it
21to the department secretary of revenue for remittance to the appropriate agency or
22person. At the time of remittance, the department secretary of revenue shall charge
23its the department's administrative expenses to the state agency that has received
24the remittance. The administrative expenses received by the department of revenue
25shall be credited to the appropriation under s. 20.566 (1) (h). In instances in which

1the payee of the prize is delinquent both in payments for state taxes and in
2court-ordered payments of child support, or is delinquent in one or both of these
3payments and has a debt owing to the state, the amount remitted to the appropriate
4agency or person shall be in proportion to the prize amount as is the delinquency or
5debt owed by the payee.
AB776-ASA1, s. 42 6Section 42. 565.32 (1) of the statutes, as affected by 1995 Wisconsin Act 27,
7is amended to read:
AB776-ASA1,13,118 565.32 (1) Promotional advertising prohibition. The expenditure by the
9board, department or any other state agency of public funds or of revenues derived
10from lottery operations to engage in promotional advertising of the state lottery or
11any multistate lottery is prohibited.
AB776-ASA1, s. 43 12Section 43. 565.32 (3) (a) (intro.) of the statutes, as affected by 1995 Wisconsin
13Act 27
, is amended to read:
AB776-ASA1,13,1614 565.32 (3) (a) (intro.) Any advertising, as defined by the board department by
15rule under s. 565.02 (3) (f), of the lottery which describes a specific lottery game and
16each lottery ticket and lottery share shall include:
AB776-ASA1, s. 44 17Section 44. 565.37 (3) of the statutes, as affected by 1995 Wisconsin Act 27,
18is amended to read:
AB776-ASA1,13,2219 565.37 (3) Department report. The department shall submit quarterly reports
20on the operation of the lottery to the chief clerk of each house of the legislature, for
21distribution to the legislature under s. 13.172 (2) and to the governor, attorney
22general, state treasurer, secretary of state, board and state auditor.
AB776-ASA1, s. 45 23Section 45. 565.37 (4) of the statutes, as affected by 1995 Wisconsin Act 27,
24is repealed.
AB776-ASA1, s. 46
1Section 46. 565.40 (1) of the statutes, as affected by 1995 Wisconsin Act 27,
2is amended to read:
AB776-ASA1,14,73 565.40 (1) Investigations. The department of justice may investigate any
4activities by the board, vendors, or employes in the department, which affect the
5operation or administration of the state lottery or any multistate lottery in which the
6state participates, and shall report suspected violations of state or federal law to the
7appropriate prosecuting authority.
AB776-ASA1, s. 47 8Section 47. 565.46 of the statutes, as affected by 1995 Wisconsin Act 27, is
9amended to read:
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