Amendment ASA1-AB776

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JS&RAC:kaf&skg:jlb

1995 - 1996 LEGISLATURE

ASSEMBLY SUBSTITUTE AMENDMENT 1, To 1995 ASSEMBLY BILL 776

May 1, 1996 - Offered by Representative Lehman.

AB776-ASA1,2,4 An Act to repeal 565.02 (1) (a) and 565.37 (4); to amend 16.84 (title), 20.505 (5) (ka), 20.566 (8) (v), 25.75 (1) (c) (intro.), 25.75 (2), 79.10 (10) (d), 561.06 (1), 561.06 (2), 561.06 (3), 561.06 (4), 565.02 (1) (b) 4., 565.02 (2) (b), 565.02 (2) (c) 3., 565.02 (3) (intro.), 565.02 (3) (b) 6., 565.02 (4) (intro.), 565.10 (1), 565.10 (7) (b), 565.10 (8), 565.10 (14) (b), 565.10 (15), 565.12 (2), 565.12 (3), 565.17 (5) (title), 565.25 (1m), 565.25 (2) (a) 6., 565.27 (1) (intro.), 565.27 (2) (a), 565.30 (1), 565.30 (3) (b), 565.30 (5), 565.32 (1), 565.32 (3) (a) (intro.), 565.37 (3), 565.40 (1) and 565.46; to repeal and recreate 16.84 (3), chapter 561 (title), 561.02, 565.05 (1) (intro.), 565.05 (1) (a) and 565.17 (5) (a); to create 79.10 (10) (bm), 79.10 (10) (f) and 565.017 of the statutes; and to affect 1995 Wisconsin Act 27, section 9123 (6ps) (f); relating to: a social security number requirement for audited lottery tax credit claims; special charges relating to lottery credit claims; creating a penalty for intentionally filing false lottery credit claims; transferring all state lottery rule-making and policy-making functions from the gaming board to the department of revenue; authorizing the department of revenue to enter into contracts with the department of administration or any other person for the performance of any security function relating to the state lottery; eliminating the requirement that a nationwide search be conducted for the administrator of the lottery division in the department of revenue; and granting rule-making authority.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB776-ASA1, s. 1 Section 1. 16.84 (title) of the statutes is amended to read:

AB776-ASA1,2,7 16.84 (title) Real estate and physical plant management; protection of persons; lottery security functions.

AB776-ASA1, s. 2 Section 2. 16.84 (3) of the statutes, as created by 1995 Wisconsin Act 27, is repealed and recreated to read:

AB776-ASA1,2,11 16.84 (3) Contract with the department of revenue for the performance of any lottery security function under ch. 565, if so requested by the department of revenue.

AB776-ASA1, s. 3 Section 3. 20.505 (5) (ka) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,3,5 20.505 (5) (ka) (title) Facility operations and maintenance; police and protection lottery security functions. The amounts in the schedule for the purpose of financing the costs of operation of state-owned or operated facilities that are not funded from other appropriations, including custodial and maintenance services; minor projects; utilities, fuel, heat and air conditioning; costs incurred under s. 16.895 by or on behalf of the department; repayment to the energy efficiency fund loans made to the department under s. 16.847 (6); and supplementing the costs of operation of child care facilities for children of state employes under s. 16.841; and for police and protection security functions under s. 16.84 (2) and (3). All moneys received from state agencies for the operation of such facilities, parking rental fees established under s. 16.843 (2) (bm) and miscellaneous other sources, all moneys received from assessments under s. 16.895, all moneys received for the performance of gaming protection lottery security functions under s. 16.84 (3), and all moneys transferred from the appropriation account under s. 20.865 (2) (e) for this purpose shall be credited to this appropriation account.

AB776-ASA1, s. 4 Section 4. 20.566 (8) (v) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,3,10 20.566 (8) (v) (title) On-line vendor Vendor fees. From the lottery fund, a sum sufficient to pay vendors for on-line services and supplies provided by the vendors under contract under s. 565.25 (2) (a).

AB776-ASA1, s. 5 Section 5. 25.75 (1) (c) (intro.) of the statutes is amended to read:

AB776-ASA1,3,13 25.75 (1) (c) (intro.) "Lottery proceeds" means the remainder of the gross lottery fund revenues after deducting all of the following:

AB776-ASA1, s. 6 Section 6. 25.75 (2) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,3,19 25.75 (2) Creation. There is created a separate nonlapsible trust fund known as the lottery fund, to consist of gross lottery fund revenues received by the department of revenue. Lottery fund revenues include gross lottery revenues and penalties collected under s. 79.10 (10) (f).

AB776-ASA1, s. 7 Section 7. 79.10 (10) (bm) of the statutes is created to read:

AB776-ASA1,3,23 79.10 (10) (bm) If the department of revenue audits a lottery credit claim, the department may require the claimant to include the claimant's social security number on the claimant's response to an audit questionnaire.

AB776-ASA1, s. 8 Section 8. 79.10 (10) (d) of the statutes is amended to read:

AB776-ASA1,4,8 79.10 (10) (d) If the department of revenue determines that a credit was claimed by a taxpayer who was not entitled to the credit for reasons other than that the taxpayer failed to furnish the information required under par. (a), the department of revenue shall collect the credit as a special charge against the county where the property for which the credit was claimed is located. The county shall instruct the appropriate taxation district to collect the credit as a special charge on the next property tax bill issued for the property. The department may dismiss the special charge if the owner of the property did not make the claim for the credit.

AB776-ASA1, s. 9 Section 9. 79.10 (10) (f) of the statutes is created to read:

AB776-ASA1,4,14 79.10 (10) (f) If a person intentionally files a false lottery credit claim under sub. (9) (bm), that person shall be subject to a penalty of $100. Each false claim constitutes a separate offense. Penalties collected under this paragraph shall be deposited in the lottery fund. Sections 71.91 and 71.93, as they apply to the taxes under ch. 71, apply to the penalty under this paragraph.

AB776-ASA1, s. 10 Section 10. Chapter 561 (title) of the statutes is repealed and recreated to read:

AB776-ASA1,4,17 CHAPTER 561

AB776-ASA1,4,18 GAMING

AB776-ASA1, s. 11 Section 11. 561.02 of the statutes, as affected by 1995 Wisconsin Act 27, is repealed and recreated to read:

AB776-ASA1,4,25 561.02 General powers and duties. (1) Gaming board. The board shall coordinate and regulate all activities relating to, and promulgate all rules relating to, racing and pari-mutuel wagering conducted under ch. 562, bingo and raffles conducted under ch. 563 and crane games conducted under ch. 564, and shall perform its duties and functions under ch. 569 regarding Indian gaming.

AB776-ASA1,5,3 (2) Department of revenue. The department of revenue shall coordinate and regulate all activities relating to, and promulgate all rules relating to, the state lottery under ch. 565.

AB776-ASA1, s. 12 Section 12. 561.06 (1) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,5,7 561.06 (1) Subject to s. 565.25 (1m), provide Provide all of the security services for the gaming operations under chs. 562 to 564 and 569.

AB776-ASA1, s. 13 Section 13. 561.06 (2) of the statutes is amended to read:

AB776-ASA1,5,10 561.06 (2) Monitor the regulatory compliance of gaming operations under chs. 562 to 564 and 569.

AB776-ASA1, s. 14 Section 14. 561.06 (3) of the statutes is amended to read:

AB776-ASA1,5,12 561.06 (3) Audit the gaming operations under chs. 562 to 564 and 569.

AB776-ASA1, s. 15 Section 15. 561.06 (4) of the statutes is amended to read:

AB776-ASA1,5,14 561.06 (4) Investigate suspected violations of chs. 562 to 564 and 569.

AB776-ASA1, s. 16 Section 16. 565.017 of the statutes is created to read:

AB776-ASA1,5,19 565.017 Lottery security. Subject to s. 565.25 (1m), the department may provide any security services for the lottery operations under this chapter or may contract with the department of administration or any person for the provision of any security services for the lottery operations under this chapter.

AB776-ASA1, s. 17 Section 17. 565.02 (1) (a) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed.

AB776-ASA1, s. 18 Section 18. 565.02 (1) (b) 4. of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,5,25 565.02 (1) (b) 4. A violation of a provision of this chapter or rule of the board department relating to the state lottery.

AB776-ASA1, s. 19 Section 19. 565.02 (2) (b) of the statutes, as affected by 1995 Wisconsin Act 27, section 6978b, is amended to read:

AB776-ASA1,6,5 565.02 (2) (b) The administrator shall appoint and supervise employes, as specified by the board department by rule under sub. (3) (a), as necessary to carry out the duties of the administrator.

AB776-ASA1, s. 20 Section 20. 565.02 (2) (c) 3. of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,6,9 565.02 (2) (c) 3. A violation of a provision of this chapter or rule of the board department relating to the state lottery.

AB776-ASA1, s. 21 Section 21. 565.02 (3) (intro.) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,6,13 565.02 (3) (intro.)  The board department shall promulgate all of the following rules:

AB776-ASA1, s. 22 Section 22. 565.02 (3) (b) 6. of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,6,17 565.02 (3) (b) 6. Qualifications for retailers, in addition to those under this section, as determined by the board department.

AB776-ASA1, s. 23 Section 23. 565.02 (4) (intro.) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,6,21 565.02 (4) (intro.)  The board department may promulgate all of the following rules:

AB776-ASA1, s. 24 Section 24. 565.05 (1) (intro.) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed and recreated to read:

AB776-ASA1,7,3 565.05 (1) (intro.) No employe of the department who performs any duty related to the state lottery or the executive assistant or the secretary or deputy secretary of revenue may do any of the following:

AB776-ASA1, s. 25 Section 25. 565.05 (1) (a) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed and recreated to read:

AB776-ASA1,7,9 565.05 (1) (a) Have a direct or indirect interest in, or be employed by, any vendor while serving as an employe in the department and performing any duty related to the state lottery or as the executive assistant or as secretary or deputy secretary of revenue or for 2 years following the person's termination of service.

AB776-ASA1, s. 26 Section 26. 565.10 (1) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,7,16 565.10 (1) Selection of retailers; retailer contract. Under rules promulgated by the board department under s. 565.02 (3) (b) and (4) (a), the administrator may contract with a person for the retail sale of lottery tickets or lottery shares. Retailers shall be selected for contract so as to provide adequate and convenient availability of lottery tickets and lottery shares to prospective buyers.

AB776-ASA1, s. 27 Section 27. 565.10 (7) (b) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,7,21 565.10 (7) (b) The administrator may, under rules promulgated by the board department, contract for a period that is shorter than 3 years in order to stagger lottery retailer contract expiration dates throughout a 3-year period.

AB776-ASA1, s. 28 Section 28. 565.10 (8) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,8,4 565.10 (8) Contract fees. A contract entered into under this section may require payment of a nonrefundable initial application fee or a nonrefundable annual fee for continuation, or both, in an amount promulgated by the board department by rule under s. 565.02 (4) (b). A separate nonrefundable fee, in an amount specified in rules promulgated under s. 565.02 (4) (b), may be required for each certificate of authority issued under sub. (11).

AB776-ASA1, s. 29 Section 29. 565.10 (14) (b) of the statutes, as affected by 1995 Wisconsin Act 27, section 6979m, is amended to read:

AB776-ASA1,8,12 565.10 (14) (b) The basic compensation to be paid to a retailer is 5.5% of the retail price of lottery tickets or lottery shares sold by the retailer. The board department may, in the rules promulgated under s. 565.02 (4) (f), provide for the payment of a higher rate of compensation to nonprofit organizations making sales under a contract issued on a temporary basis than the rate of compensation paid to other retailers.

AB776-ASA1, s. 30 Section 30. 565.10 (15) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,8,19 565.10 (15) Remitting proceeds. A retailer shall, on a daily basis, unless another basis, but not less than weekly, is provided by the board department by rule, remit to the department the lottery proceeds from the sale of lottery tickets or lottery shares. The amount of compensation deducted by the retailer, if any, shall be indicated as a deduction from the total remitted.

AB776-ASA1, s. 31 Section 31. 565.12 (2) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,9,9 565.12 (2) If the administrator determines that the immediate suspension or termination of a lottery retailer contract entered into under s. 565.10 is necessary to protect the public interest or the security, integrity or fiscal responsibility of the lottery, the administrator may, without prior notice or hearing, suspend for a specified period or terminate the lottery retailer contract by mailing to the retailer a notice of suspension or termination that includes a statement of the facts or conduct that warrant the suspension or termination and a notice that the retailer may, within 30 days after the date on which the notice of suspension or termination is mailed, have the suspension or termination reconsidered by the administrator. If, upon reconsideration, the administrator affirms the determination to suspend or terminate the lottery retailer contract, the retailer shall be afforded an opportunity for a hearing before the board department to review the determination of the administrator.

AB776-ASA1, s. 32 Section 32. 565.12 (3) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,9,13 565.12 (3) The board department shall render the final decisions under s. 227.47 for all terminations and suspensions under subs. (1) and (2).

AB776-ASA1, s. 33 Section 33. 565.17 (5) (title) of the statutes, as affected by 1995 Wisconsin Act 27, is amended to read:

AB776-ASA1,9,17 565.17 (5) (title) Board members and employes; certain Certain department employes.

AB776-ASA1, s. 34 Section 34. 565.17 (5) (a) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed and recreated to read:

AB776-ASA1,9,23 565.17 (5) (a) No employe of the department who performs any duty related to the state lottery or the executive assistant or the secretary or deputy secretary of revenue and no member of such a person's immediate family, as defined in s. 19.42 (7), may purchase a lottery ticket or lottery share.