565.25(3)(b)4.
4. The restrictions under
par. (a) do not apply to the partnership, limited liability company, association or corporation if the department determines that the partnership, limited liability company, association or corporation has terminated its relationship with the partner, member, officer, director or owner who was convicted or entered the plea or with the partner, member, officer, director, owner or other individual whose actions directly contributed to the partnership's, limited liability company's, association's or corporation's conviction or entry of plea.
565.25(3)(c)
(c) No contract for a major procurement may be entered into unless the contract provides that the vendor has established or will, within a period of time specified in the contract, establish an office within the state from which the vendor will process, produce, distribute, supply or sell materials, supplies, equipment or services under the contract.
565.25(3m)
(3m) False statement or material omission. No person proposing to contract for a major procurement may intentionally make a false statement or material omission in any disclosure statement required under
sub. (2) (a) 5.
565.25(4)
(4) Background investigations. The department of justice shall conduct a background investigation of any person proposing to contract or contracting for a major procurement and of all partners, members, officers, directors, owners and beneficial owners identified under
sub. (3) (b). The department of justice may require the person and partners, members, officers, directors and shareholders identified under
sub. (3) (b) to be photographed and fingerprinted on 2 fingerprint cards each bearing a complete set of the person's fingerprints. The department of justice may submit the fingerprint cards to the federal bureau of investigation for the purposes of verifying the identity of the persons fingerprinted and obtaining records of their criminal arrests and convictions. If the results of the background investigation disclose information specified in
sub. (3) (a) with respect to the person, partner, member, officer, director, owner or beneficial owner, a contract with the vendor, if entered into prior to the disclosure, is void and the vendor shall forfeit any amount filed, deposited or established under
sub. (5) (b). The department of revenue shall reimburse the department of justice for the department of justice's services under this subsection and shall obtain payment from the person proposing to contract or the vendor in the amount of the reimbursement.
565.25(5)(b)
(b) For a major procurement, the department may require from a person proposing to contract on a bid, conditioned upon signing the contract if awarded to the person, or on a contract award, conditioned upon performance under the contract or payment of subcontractors, any of the following:
565.25(5)(b)1.
1. The deposit with the department of a bond payable to the department, in an amount required by the department.
565.25(5)(b)2.
2. The deposit and maintenance with the department of interest-bearing or interest-accruing securities approved by the department, which shall be held in trust by the department and shall have at all times a market value equal to at least the amount required by the department.
565.25(5)(b)3.
3. The filing with the department of an irrevocable letter of credit payable to and for the benefit of the department, in an amount required by the department.
565.25(5)(b)4.
4. The establishment with a financial institution of an escrow account, the terms, conditions and amount of which are established for the benefit of the department, in an amount required by the department.
565.27(1)(1)
Game features and procedures. Subject to this section, the rules promulgated under
s. 565.02 (3) (d) and
(4) (a) and board approval, the administrator shall determine the particular features of and procedures for each lottery game offered. The administrator shall recommend to the board for promulgation by rule under
s. 565.02 (3) (d) the types of state or multistate lottery games to be offered. The features and procedures shall be in writing, shall be accessible to the public and shall include all of the following:
565.27(1)(b)
(b) The price of lottery tickets or lottery shares and any discount authorized for the price.
565.27(1)(c)
(c) The prize structure, including the number and value of prizes.
565.27(1)(d)
(d) The frequency of drawings or other winner selections.
565.27(2)(a)(a) The actual selection of any winning lottery ticket or lottery share may not be performed by an elected or appointed official, an employe of the lottery division in the department or a member or employe of the board.
565.27(2)(b)
(b) If drawings are used to select among winning numbers, to select among entries or to select among finalists, all of the following requirements shall be met:
565.27(2)(b)1.
1. The drawings shall be witnessed by an independent certified public accountant.
565.27(2)(b)3.
3. The drawings shall be recorded on both videotape and audiotape.
565.27(2)(b)4.
4. Any equipment used for the drawing must be inspected by a certified public accountant and a department employe before and after the drawing.
565.27(3)
(3) Ticket and share numbers. Every lottery ticket and lottery share shall have a unique number that distinguishes the ticket or share from every other ticket or share in the lottery game.
565.27(4)
(4) Lottery ticket appearance. No name of an elected or appointed official may appear on the lottery tickets of any lottery game.
565.30(1)(1)
Payment of prizes. The administrator shall direct the payment of a prize to the holder of the winning lottery ticket or lottery share or to a person designated under
sub. (2), except that a prize may be paid to another person under a court order or to the estate of a deceased prize winner. The board, department, administrator, state and any contractor for materials, equipment or services of the game in which the prize is won are discharged of all liability upon payment of the prize to the holder of a winning lottery ticket or lottery share.
565.30(2)
(2) Payment of prizes to minors. If the prize for a winning lottery ticket or lottery share given to a minor is less than $1,000, the administrator may make payment of the prize by delivering to an adult member of the minor's family, or to the minor's guardian, a check or draft payable to the minor. If the prize is $1,000 or more, the administrator shall make payment to the minor by paying or delivering the money to a broker or financial institution under
s. 880.65 (1) (b).
565.30(2m)
(2m) Prizes over years. If the prize for a winning lottery ticket or lottery share is monetary and is payable in instalments over a period of years, any informational material about the lottery must state the number of years over which the prize shall be paid.
565.30(3)(a)(a)
Period to claim. The holder of a winning lottery ticket or lottery share may claim a prize within 180 days after the drawing or other selection in which the prize is won or within 180 days after the game's end date, as determined by the administrator, whichever is later.
565.30(3)(b)
(b)
Retailer bonuses. Any bonuses offered by the board to retailers who sell winning lottery tickets or lottery shares shall be paid to the retailer regardless of whether the prize is claimed if the retailer can be identified as the seller of the winning ticket or share.
565.30(3m)
(3m) Value of certain prizes. A prize that is a lottery ticket or lottery share in the same lottery game in which the prize is won or in another lottery game shall, for prize structure accounting purposes, be valued at the same percentage of the retail price, as specified under
s. 25.75 (3) (a), as are other prizes in the same lottery game in which the prize is won.
565.30(4)
(4) Withholding of income taxes. The administrator shall withhold from lottery winnings any federal income taxes required to be withheld under
26 USC 3402 (q) (3) (B) and any state taxes required to be withheld under
s. 71.67 (4) (a).
565.30(4m)
(4m) Carry over of prize money. The department may carry over unexpended lottery prize money that is not unclaimed lottery prize money from one drawing of a game to another drawing of the same game.
565.30(5)
(5) Withholding of delinquent state taxes, child support or debts owed the state. The administrator shall report the name, address and social security number of each winner of a lottery prize equal to or greater than $1,000 to the department of revenue to determine whether the payee of the prize is delinquent in the payment of state taxes under
ch. 71,
72,
76,
77,
78 or
139 or in court-ordered payment of child support or has a debt owing to the state. Upon receipt of a report under this subsection, the department of revenue shall first ascertain based on certifications by the department of industry, labor and job development under
s. 49.855 (2) whether any person named in the report is currently delinquent in court-ordered payment of child support and shall next certify to the administrator whether any person named in the report is delinquent in court-ordered payment of child support or payment of state taxes under
ch. 71,
72,
76,
77,
78 or
139. Upon this certification by the department of revenue or upon court order the administrator shall withhold the certified amount and send it to the department of revenue for remittance to the appropriate agency or person. At the time of remittance, the department of revenue shall charge its administrative expenses to the state agency that has received the remittance. The administrative expenses received by the department of revenue shall be credited to the appropriation under
s. 20.566 (1) (h). In instances in which the payee of the prize is delinquent both in payments for state taxes and in court-ordered payments of child support, or is delinquent in one or both of these payments and has a debt owing to the state, the amount remitted to the appropriate agency or person shall be in proportion to the prize amount as is the delinquency or debt owed by the payee.
565.30(5m)
(5m) Withholding of child support, spousal support, maintenance or family support. The administrator shall report to the department of industry, labor and job development the name, address and social security number of each winner of a lottery prize that is payable in instalments. Upon receipt of the report, the department of industry, labor and job development shall certify to the administrator whether any payee named in the report is obligated to provide child support, spousal support, maintenance or family support under
s. 767.02 (1) (f) or
(g),
767.10,
767.23,
767.25,
767.26,
767.261,
767.465 (2m),
767.51 (3) or
948.22 (7) or
ch. 769 and the amount required to be withheld from the lottery prize under
s. 767.265. The administrator shall withhold the certified amount from each payment made to the winner and remit the certified amount to the department of industry, labor and job development.
565.30(6)
(6) Nonassignability. The right of any person to a prize may not be assigned.
565.30(7)
(7) Payment from terminals prohibited. If computer terminals or other devices are used to play lottery games, no coins or currencies may be dispensed, as prizes, to players from the terminals or devices.
565.30 Annotation
Advising Lottery Winners. MacGregor & Gawart. Wis. Law. Aug. 1994.
565.32
565.32
Promotional advertising; advertising, ticket and share contents. 565.32(1)(1)
Promotional advertising prohibition. The expenditure by the board, department or any other state agency of public funds or of revenues derived from lottery operations to engage in promotional advertising of the state lottery or any multistate lottery is prohibited.
565.32(2)
(2) Promotional advertising by retailers or vendors. 565.32(2)(a)(a) A retailer or a combination of retailers, a vendor or a combination of vendors or a combination of retailers and vendors may engage in promotional advertising of the state lottery or any multistate lottery in which the state participates.
565.32(2)(b)
(b) Promotional advertising by vendors under
par. (a) shall clearly indicate that the advertising is paid for by the vendor.
565.32(3)
(3) Required contents of advertising, tickets and shares. 565.32(3)(a)(a) Any advertising, as defined by the board by rule under
s. 565.02 (3) (f), of the lottery which describes a specific lottery game and each lottery ticket and lottery share shall include:
565.32(3)(a)1.
1. Except for the games under
subd. 2., the prize structure, the prize amounts and the odds of a specific lottery ticket or lottery share being selected as the winning lottery ticket or lottery share for each prize amount.
565.32(3)(a)2.
2. For games in which the amount of the winnings and the odds of winning are determined by the number of participants in the game, all of the following:
565.32(3)(a)2.a.
a. An explanation that the amount of the winnings and the odds of winning are determined by the number of participants in the game.
565.32(3)(a)2.c.
c. Estimates of the amounts of prizes and the odds of a particular lottery ticket or lottery share winning each prize. The estimates of the prize amounts and the odds of a particular lottery ticket or lottery share winning each prize may be given as a range of values.
565.37
565.37
Audits, financial reports and odds verification. 565.37(1)(1)
Financial and performance audits. The department shall annually contract with the legislative audit bureau to conduct a financial audit of the transactions and accounts of the state lottery, and, to the extent of the department's participation, of any multistate lotteries in which the state participates, for the preceding fiscal year and shall biennially contract with the legislative audit bureau for a performance audit of the state lottery and, to the extent of the department's participation, of those multistate lotteries.
565.37(2)
(2) Independent postaudit. At no less than 3-year intervals, the department may retain an independent certified public accountant to conduct a postaudit of all the lottery division's accounts and transactions. The department shall provide copies of each such postaudit to the legislative audit bureau, the board and the department of justice.
565.37(3)
(3) Department report. The department shall submit quarterly reports on the operation of the lottery to the chief clerk of each house of the legislature, for distribution to the legislature under
s. 13.172 (2) and to the governor, attorney general, state treasurer, secretary of state, board and state auditor.
565.37(4)
(4) Administrator report. The administrator shall submit monthly financial reports to the board.
565.37(5)
(5) Verification of odds. The department shall contract with the legislative audit bureau to verify the odds on winning a lottery game that are represented by the department, a contractor or a retailer.
565.37(5r)
(5r) Withholding of assessments, fines, restitution and surcharges. If the administrator receives a notice of the assignment of lottery prizes under
s. 973.05 (4) (b), he or she shall periodically determine if the person subject to the assignment is a winner of a lottery prize that is payable in instalments. If the administrator determines that a person subject to an assignment of lottery prizes under
s. 973.05 (4) (b) is a winner of a lottery prize that is payable in instalments, the administrator shall withhold the amount of the judgment that is the basis of the assignment from the next instalment payment. The administrator shall submit the withheld amount to the court that issued the assignment. The administrator shall notify the winner of the reason that the amount is withheld from the lottery prize. If the initial instalment payment is insufficient to pay the judgment, the administrator shall withhold and submit to the court an amount from any additional instalment payments until the judgment is paid in full or until the court notifies the administrator that the judgment is paid and the assignment is no longer in effect.
565.37(6)
(6) Audit of lottery security. By July 1, 1990, and at least biennially thereafter, the department shall hire an independent firm to perform an audit of lottery security that is independent of any other audit under this section.
565.40
565.40
Department of justice enforcement authority. 565.40(1)(1)
Investigations. The department of justice may investigate any activities by the board, vendors, or employes in the department, which affect the operation or administration of the state lottery or any multistate lottery in which the state participates, and shall report suspected violations of state or federal law to the appropriate prosecuting authority.
565.40(1m)
(1m) Subpoena power. For the purpose of an investigation under
sub. (1), the attorney general may issue a subpoena to compel the production of any books, papers, correspondence, memoranda, agreements or other documents or records which the attorney general deems relevant or material to the investigation.
Section 885.12 shall apply to any failure to obey a subpoena under this subsection.
565.40(2)
(2) Prosecutions. The attorney general and district attorneys have concurrent jurisdiction to commence prosecutions for alleged violations of this chapter.
565.45
565.45
Report on expense limitation. Before January 1, 1992, and every 2 years thereafter, the department shall submit a report to the chief clerk of each house of the legislature, for distribution to the legislature under
s. 13.172 (2), on the effects on the operation of the lottery of the 15% expense limitation under
s. 25.75 (3) (b).
565.46
565.46
Minority advertising, procurements, retailers and hiring. The board shall promulgate rules establishing goals that attempt to increase the total amount of expenditures by the department for advertising, public relations and other procurements that are directed to minority businesses, the number of retailers that are minority businesses and the number of employes of the lottery division in the department who are minority group members.
565.46 History
History: 1991 a. 39,
269;
1995 a. 27.
565.50(1)(1) Any person who violates
s. 565.02 (2m),
565.05,
565.10 (3m),
565.17,
565.25 (3m) or
565.32 (1),
(2) (b) or
(3) or any rule promulgated under
s. 565.02 (2m),
565.05,
565.10 (3m),
565.17,
565.25 (3m) or
565.32 (1),
(2) (b) or
(3) shall be fined not more than $10,000 or imprisoned for not more than 9 months or both.
565.50(2)
(2) Any person who alters or forges a lottery ticket or share or intentionally utters or transfers an altered or forged lottery ticket or share shall be fined not more than $10,000 or imprisoned for not more than 5 years or both.
565.50(3)
(3) Any person who possesses an altered or forged lottery ticket or share with intent to defraud shall be fined not more than $10,000 or imprisoned for not more than 2 years or both.
565.50 History
History: 1987 a. 119.
