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 of the statutes is repealed and recreated to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AB774, s. 22 15Section 22. 564.02 (3) (c) of the statutes is repealed and recreated to read: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AB774, s. 23 18Section 23. 564.02 (4) of the statutes is repealed and recreated to read: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).
AB774,12,1310 (g) Upon denial of an application under par. (b), the department shall
11immediately notify the person in writing and shall state the reasons for the denial.
12A denial of an application under par. (b) shall be subject to judicial review under ch.
13227.
AB774,12,1614 (h) 1. The department shall charge, on behalf of a town, city or village, an
15annual license fee of $1,000 for each amusement device set up for the purpose of play.
16The person shall pay this fee directly to the town, city or village.
AB774,12,2217 2. The department shall charge an additional annual license fee of $500 for
18each amusement device set up for the purpose of play to defray the costs incurred by
19the department in enforcing this subsection, but the department may not charge any
20one person under this subdivision more than a total of $10,000 in license fees in any
21one year, regardless of the number of amusement devices that the person intends to
22set up for the purpose of play in this state.
AB774,12,2323 3. Any license issued under this subsection shall remain in effect for one year.
AB774,13,224 (i) The certificate of registration issued under par. (d) shall remain in effect
25unless it is canceled by the department of revenue, after consulting with the

1department of justice, or unless it is withdrawn by the person who is issued the
2certificate of registration.
AB774,13,53 (j) Every person registered under this section shall notify the department of
4any change in the information provided under par. (b) by the 10th day of the first
5month following the change in information.
AB774,13,86 (k) The department may not permit any amusement device located at one
7premises to be in any way linked to another amusement device located at another
8premises for the purpose of creating a progressive prize.
AB774,13,109 (L) The department shall deposit all moneys received under this subsection in
10the appropriation account under s. 20.566 (9) (j).
AB774,13,13 11(3) Prohibited practices relating to amusement devices. (a) No person may
12keep more than 5 amusement devices at any one premises operated under a Class
13"B" license under s. 125.26 or a "Class B" license under s. 125.51.
AB774,13,1814 (b) No person may play, or permit another person to play, an amusement device
15at a premises operated under a Class "B" or "Class B" license in a town, city or village
16during hours in which the premises is closed or the sale of fermented malt beverages
17or intoxicating liquor is prohibited under s. 125.32 (3) (a) or (c) or 125.68 (4) (c) 1. or
184.
AB774,13,2519 (c) No owner of a premises may set up for the purpose of play an amusement
20device at his or her premises unless he or she has entered into a written agreement
21with a person who owns the amusement device for the use of that amusement device
22at his or her premises and a copy of the agreement is kept on the premises and made
23available for inspection to any person authorized by the department. This paragraph
24shall not apply to an owner of a premises who is also the owner of every amusement
25device kept at his or her premises.
AB774,14,3
1(d) No person may engage in the advertising of any amusement device set up
2for the purpose of play or offer, or allow to be offered, to any other person any special
3inducement for playing an amusement device.
AB774,14,64 (e) No person registered under sub. (2) may purchase an amusement device
5from a person other than a person registered under sub. (2) or a distributor registered
6under sub. (4) (c).
AB774,14,87 (f) No person may play an amusement device if the person is under 21 years
8of age.
AB774,14,109 (g) No person may set up for the purpose of play an amusement device that
10permits more than one person to play the amusement device at the same time.
AB774,14,13 11(4) Manufacturers and distributors of amusement devices; registration and
12fees.
(a) No person who is a manufacturer of amusement devices may do any of the
13following:
AB774,14,1714 1. Do any business in this state related to amusement devices unless the person
15submits an application for registration with the department under par. (c), pays the
16first year's annual license fee and the nonrefundable fee set by the department to
17cover all costs of processing the application and is issued a manufacturer's license.
AB774,14,2018 2. Sell an amusement device to any person other than a distributor of
19amusement devices with a valid distributor's license issued by the commission under
20par. (c).
AB774,14,2221 3. Hold or control, either directly or indirectly, any ownership interest of a
22distributor with a valid distributor's license issued by the department under par. (c).
AB774,14,2323 4. Set up for the purpose of play any amusement device.
AB774,14,2524 (b) No person who is a distributor of amusement devices may do any of the
25following:
AB774,15,5
11. Sell, repair, distribute, warehouse, transport, display or market an
2amusement device unless the person submits an application for registration with the
3department under par. (c), pays the first year's annual license fee and the
4nonrefundable fee set by the department to cover all costs of processing the
5application and is issued a distributor's license.
AB774,15,66 2. Set up for the purpose of play any amusement device.
AB774,15,87 3. Sell an amusement device to any person other than a person registered with
8the department under sub. (2).
AB774,15,109 4. Hold or control, either directly or indirectly, any ownership interest of a
10person registered under sub. (2).
AB774,15,1111 (c) The department shall do all of the following:
AB774,15,2012 1. Upon receipt of an application of registration from a person under par. (a)
13or (b), submission of the first year's license fee and payment of a nonrefundable fee
14set by the department to cover all costs of processing the application, issue a
15manufacturer's license to each applicant under par. (a) and a distributor's license to
16each applicant under par. (b) who has met the requirements specified under sub. (2)
17(b) 1. and (f) for a person applying for a certificate of registration under sub. (2) and
18the requirements of this subsection. The license shall remain in effect unless it is
19canceled by the department of revenue, after consulting with the department of
20justice, or unless it is withdrawn by the person who is issued the license.
AB774,15,2221 2. Charge an annual fee for a manufacturer's license and distributor's license
22in the amount of $10,000. The license shall remain in effect for one year.
AB774,15,2523 3. Upon denial of an application under subd. 1., immediately notify the person
24in writing and state the reasons for the denial. A denial of an application under subd.
251. shall be subject to review under ch. 227.
AB774,16,2
14. Deposit all moneys received under this subsection in the appropriation
2account under s. 20.566 (9) (j).
AB774,16,4 3(4m) Rule making. (a) The department shall promulgate all rules necessary
4to administer this section.
AB774,16,95 (b) The department may provide by rule that an amusement device set up for
6the purpose of play may have a percentage of credits awarded to credits played that
7is equal to the minimum percentage for a similar amusement device under a compact
8entered into under s. 14.035, but only if the percentage is equal to or greater than
983%.
AB774,16,13 10(5) Conflicts of interest. No department employe and no department
11employe's immediate family, as defined in s. 19.42 (7), may, while that employe is a
12department employe or for 2 years following the termination of the employment of
13that department employe, do any of the following:
AB774,16,1514 (a) Have any direct or indirect interest in any person who is registered or
15required to be registered under sub. (2) or (4).
AB774,16,1716 (b) Accept or agree to accept money or any thing of value from any person who
17is registered or required to be registered under sub. (2) or (4).
AB774,16,1918 (c) Directly or indirectly own or operate any amusement device licensed under
19sub. (2).
AB774,16,24 20(6) Investigation and enforcement. (a) In response to a written complaint,
21the department shall conduct an investigation of any person registered under sub.
22(2) or (4). The department may conduct an inspection of a person registered under
23sub. (2) or (4), of the amusement device licensed to the person or of the premises on
24which the amusement device is played, at any time.
AB774,17,6
1(am) The department may conduct an investigation to determine if a person
2markets, leases, services, repairs, warehouses, transports or sets up for the purposes
3of play an amusement device or collects the proceeds of an amusement device which
4is set up for the purposes of play without being registered under sub. (2) or if a person
5sells, repairs, distributes, warehouses, displays or markets an amusement device
6without being registered under sub. (4).
AB774,17,107 (b) An action for violation of this section may be prosecuted in any circuit court
8of this state by the department in the name of the state and, in any such action, the
9department shall exercise all of the powers and perform all duties which the district
10attorney would otherwise be authorized to exercise or perform.
AB774,17,14 11(7) Seizure and sale. The department may seize any amusement device owned
12by a person who is convicted under sub. (8) and may sell the amusement device in
13the name of the state. The department and its agents are exempt from all liability
14to the owner of the amusement device for the seizure or sale of the amusement device.
AB774,17,18 15(8) Penalty. Any person who violates this section may be required to forfeit not
16less than $500 nor more than $5,000 for each offense. Each day of continued violation
17constitutes a separate offense. The period shall be measured by using the dates of
18the offenses which resulted in convictions.
AB774, s. 25 19Section 25. 564.04 of the statutes is created to read:
AB774,17,20 20564.04 Applicability. The requirements of ch. 565 do not apply to this chapter.
AB774, s. 26 21Section 26. 945.01 (1) (dm) of the statutes is created to read:
AB774,17,2222 945.01 (1) (dm) Playing an amusement device licensed under ch. 564.
AB774, s. 27 23Section 27. 945.01 (3) (a) of the statutes is amended to read:
AB774,18,424 945.01 (3) (a) A gambling machine is a contrivance which for a consideration
25affords the player an opportunity to obtain something of value, the award of which

1is determined by chance, even though accompanied by some skill and whether or not
2the prize is automatically paid by the machine. A gambling machine includes a slot
3machine that dispenses coins or tokens and that is activated by a lever, button, coin,
4token or debit or credit card.
AB774, s. 28 5Section 28. 945.01 (3) (b) 1m. of the statutes is created to read:
AB774,18,76 945.01 (3) (b) 1m. An amusement device licensed under ch. 564 or an
7amusement device possessed by a person who is registered under s. 564.03 (2) or (4).
AB774, s. 29 8Section 29. 945.01 (4) (am) of the statutes, as affected by 1995 Wisconsin Act
911
, is amended to read:
AB774,18,1510 945.01 (4) (am) "Gambling place" does not include a place where bingo or a
11raffle is conducted under ch. 563, where an amusement device licensed under ch. 564
12is played or stored,
where a lottery is conducted under ch. 565 or where a race is
13conducted under ch. 562 and does not include a gambling vessel that is in the process
14of construction, delivery, conversion or repair by a shipbuilding business that
15complies with s. 945.095.
AB774, s. 30 16Section 30. 945.01 (5) (am) of the statutes is amended to read:
AB774,18,2017 945.01 (5) (am) "Lottery" does not include bingo or a raffle conducted under ch.
18563, the playing of an amusement device licensed under ch. 564, pari-mutuel
19wagering conducted under ch. 562 or the state lottery or any multistate lottery
20conducted under ch. 565.
AB774, s. 31 21Section 31. 1995 Wisconsin Act 27, section 9123 (6ps) (a), (b), (c) 2. and (e) 2.
22are amended to read:
AB774,19,223[1995 Wisconsin Act 27] Section 9123 (6ps) (a) Assets and liabilities. On July
241, 1996, all assets and liabilities of the gaming commission shall become the assets
25and liabilities of the gaming board, except that those assets and liabilities that relate

1to crane games and the state lottery shall become the assets and liabilities of the
2department of revenue.
AB774,19,73 (b) Tangible personal property. On July 1, 1996, all tangible personal property,
4including records, of the gaming commission is transferred to the gaming board,
5except that the tangible personal property, including records, of the gaming
6commission that relate to crane games and the state lottery is transferred to the
7department of revenue.
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