Amendment AA1-ASA2-AB144

AB144-ASA2-AA1,4,24 565.01 (6m) (bm) The play and operation of an amusement device licensed under s. 565.08.

AB144-ASA2-AA1, s. 22m Section 22m. 565.015 of the statutes is repealed.

AB144-ASA2-AA1, s. 23m Section 23m. 565.02 (7) of the statutes is amended to read:

AB144-ASA2-AA1,5,20 565.02 (7) Not later than March 1 of each year, the department shall submit to the joint committee on finance a report that includes an estimate for that fiscal year and for the subsequent fiscal year of the gross revenues from the sale of lottery tickets and lottery shares, the total amount paid as lottery ticket and share prizes and the lottery ticket and share prize payout ratio for each type of lottery game offered, and an evaluation of the effect of lottery ticket and share prize payout ratios of lottery games on lottery sales, lottery operating costs and on maximizing the revenue available for the lottery and gaming property tax credit. If, within 14 working days after the date on which the committee receives the report, the cochairpersons of the committee notify the department that the committee has scheduled a meeting for the purpose of reviewing the department's proposed lottery ticket and share prize payouts, the department may proceed with its plans for the lottery ticket and share prize payouts for the subsequent fiscal year only upon approval of the plans by the committee. If the cochairpersons of the committee do not notify the department within 14 working days after the date on which the committee receives the report that the committee has scheduled a meeting for the purpose of reviewing the department's proposed lottery ticket and share prize payouts, the department's plans for the lottery ticket and share prize payouts for the subsequent fiscal year are considered approved by the committee.

AB144-ASA2-AA1, s. 24m Section 24m. 565.08 of the statutes is created to read:

AB144-ASA2-AA1,5,24 565.08 Licensing and regulation of amusement devices. (1) The department shall license all amusement devices that are set up for the purpose of play in this state, subject to all of the following conditions:

AB144-ASA2-AA1,5,25 (a) An amusement device license may be issued only to the following:

AB144-ASA2-AA1,6,3 1. A person who has a Class "B" license under ch. 125 on the effective date of this subdivision .... [revisor inserts date], or a person to whom such a Class "B" license has been transferred under s. 125.04 (12) (b).

AB144-ASA2-AA1,6,4 2. A person who has a "Class B" license under ch. 125.

AB144-ASA2-AA1,6,6 3. A person who held a license on January 1, 2003, that was issued under s. 562.05 (1).

AB144-ASA2-AA1,6,9 (b) An amusement device that is set up for the purpose of play may be played only at a racetrack at which pari-mutuel wagering was conducted on January 1, 2003, or at a premises issued a Class "B" or "Class B" license under ch. 125.

AB144-ASA2-AA1,6,11 (c) The owner of the amusement device shall be charged an annual license fee of $100 for each amusement device that is set up for the purpose of play.

AB144-ASA2-AA1,6,14 (d) 1. No more than 5 amusement devices may be set up for the purpose of play at any one premises operated under a Class "B" license or a "Class B" license issued under ch. 125.

AB144-ASA2-AA1,6,17 2. No more than 5 amusement devices per 1,000 square feet of space may be set up for the purpose of play at any racetrack at which pari-mutuel wagering was conducted on January 1, 2003, as such space existed on January 1, 2003.

AB144-ASA2-AA1,6,19 (e) No one person may manufacture or distribute all of the amusement devices that are set up for the purpose of play.

AB144-ASA2-AA1,6,24 (f) 1. Except as provided in subd. 2., any amusement device set up for the purpose of play shall have a percentage of credits awarded to credits played that is not less than the average percentage required under all unexpired Indian gaming compacts entered into under s. 14.035. In this subdivision, "average" means the arithmetic mean.

AB144-ASA2-AA1,7,4 2. In calculating the percentage of credits awarded to credits played for an amusement device under subd. 1., the department shall reduce the percentage by a percentage that produces an amount equal to the amount of any sales or use taxes generated from the play of the amusement device.

AB144-ASA2-AA1,7,8 (g) The adjusted gross receipts, less any amount paid as sales or use taxes from the play of an amusement device, shall be equally divided between the state, for deposit in the lottery fund, and the holder of the license under par. (a) for the premises or racetrack at which the amusement device is located.

AB144-ASA2-AA1,7,14 (2) If the department attempts to verify the percentage of credits awarded to credits played of an amusement device under sub. (1) (f) and the owner of the premises or racetrack at which the amusement device is located fails, or is unable, to assist the department, with the result that the department cannot verify the percentage of credits awarded to credits played, the department shall do the following:

AB144-ASA2-AA1,7,17 (a) For the first offense, issue a warning to the owner, and the owner shall immediately assist the department in verifying the percentage of credits awarded to credits played of the amusement device.

AB144-ASA2-AA1,7,19 (b) For the 2nd offense, suspend for 30 days the license issued under sub. (1) (a) for that premises or racetrack.

AB144-ASA2-AA1,7,21 (c) For the 3rd offense, permanently revoke the license issued under sub. (1) (a) for that premises or racetrack.

AB144-ASA2-AA1, s. 25m Section 25m. 565.27 (1) (intro.) of the statutes is amended to read:

AB144-ASA2-AA1,8,3 565.27 (1) Game features and procedures. (intro.) Subject to this section, the rules promulgated under s. 565.02 (3) (d) and (4) (a) and approval by the secretary of revenue, the administrator shall determine the particular features of and procedures for each lottery game offered other than games played on amusement devices licensed under s. 565.08. The features and procedures shall be in writing, shall be accessible to the public and shall include all of the following:

AB144-ASA2-AA1, s. 26m Section 26m. 565.30 (title) of the statutes is amended to read:

AB144-ASA2-AA1,8,5 565.30 (title) Lottery ticket and share prizes.

AB144-ASA2-AA1, s. 27m Section 27m. 565.30 (8) of the statutes is created to read:

AB144-ASA2-AA1,8,9 565.30 (8) Applicability. This section applies only to prizes paid to the holder of a winning lottery ticket or share and not to prizes paid from an amusement device licensed under s. 565.08.

AB144-ASA2-AA1, s. 28m Section 28m. 945.01 (1) (dm) of the statutes is created to read:

AB144-ASA2-AA1,8,12 945.01 (1) (dm) Playing an amusement device, as defined in s. 565.01 (1g), that is licensed as described in s. 565.08.

AB144-ASA2-AA1, s. 29m Section 29m. 945.01 (3) (a) of the statutes is amended to read:

AB144-ASA2-AA1,8,17 945.01 (3) (a) A Subject to par. (b), 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.

AB144-ASA2-AA1, s. 30m Section 30m. 945.01 (3) (b) 1m. of the statutes is created to read:

AB144-ASA2-AA1,8,20 945.01 (3) (b) 1m. An amusement device, as defined in s. 565.01 (1g), that is licensed as described in s. 565.08.

AB144-ASA2-AA1, s. 31m Section 31m. 945.01 (4) (am) of the statutes is renumbered 945.01 (4) (am) (intro.) and amended to read:

AB144-ASA2-AA1,8,24 945.01 (4) (am) (intro.) "Gambling place" does not include a any of the following:

AB144-ASA2-AA1,8,25 1. A place where bingo or a raffle is conducted under ch. 563,.

AB144-ASA2-AA1,9,1 2. A place where a lottery is conducted under ch. 565 or.

AB144-ASA2-AA1,9,2 3. A place where a race is conducted under ch. 562 and does not include a.

AB144-ASA2-AA1,9,4 4. A gambling vessel that is in the process of construction, delivery, conversion or repair by a shipbuilding business that complies with s. 945.095.

AB144-ASA2-AA1, s. 32m Section 32m. 945.01 (4) (am) 5. of the statutes is created to read:

AB144-ASA2-AA1,9,7 945.01 (4) (am) 5. A premises on which is located an amusement device, as defined in s. 565.01 (1g), that is licensed as described in s. 565.08.

AB144-ASA2-AA1, s. 33m Section 33m. 945.01 (5) (am) of the statutes is amended to read:

AB144-ASA2-AA1,9,12 945.01 (5) (am) "Lottery" does not include bingo or a raffle conducted under ch. 563,; the playing of an amusement device, as defined in s. 565.01 (1g), that is licensed as described in s. 565.08; pari-mutuel wagering conducted under ch. 562; or the state lottery or any multijurisdictional lottery conducted under ch. 565.

AB144-ASA2-AA1, s. 34m Section 34m. 945.041 (1) of the statutes is amended to read:

AB144-ASA2-AA1,9,24 945.041 (1) A license or permit issued under ch. 125 to any person who knowingly permits any slot machine, roulette wheel, other similar mechanical gambling device, or number jar or other device designed for like form of gambling, or any amusement device, as defined in s. 565.01 (1g), that is not licensed as described under s. 565.08, or any horse race betting or other bookmaking as defined in s. 945.01, or solicitation of drinks from customers under s. 944.36 to be set up, kept, managed, used or conducted upon the licensed premises or in connection therewith upon premises controlled directly or indirectly by the person, shall be revoked by the circuit courts by a special proceeding as provided in this section. If a license or permit has been revoked, no other license or permit of any character provided for by ch. 125 may be issued to the person who held the license or permit, prior to the expiration of one year from the effective date of the revocation. If any appeal is taken from the revocation, any period during which the order is stayed shall be added to the one year.

AB144-ASA2-AA1, s. 35m Section 35m. 945.041 (2) of the statutes is amended to read:

AB144-ASA2-AA1,10,21 945.041 (2) Any sheriff, undersheriff, deputy sheriff, constable or other municipal police officer or any person authorized to enforce the gambling laws under s. 165.60 shall within 10 days after acquiring such information report to the district attorney of the county the name and address of any licensee or permittee under ch. 125 who to his or her knowledge has knowingly suffered or permitted any gambling device in sub. (1), any amusement device, as defined in s. 565.01 (1g), that is not licensed as described under s. 565.08, or any horse race betting to be set up, kept, managed, used or conducted upon the licensed premises or in connection therewith upon premises controlled directly or indirectly by such licensee or permittee. Such officer or person shall also report to the district attorney knowledge of the circumstances and the name of the municipality or officer by whom the license or permit has been issued. Any other person may in writing and signed by that person report any such name, address and other information to the district attorney. Within 10 days after any report the district attorney shall institute a proceeding as hereinafter provided before the circuit court of the county or shall within such time report to the attorney general the reasons why such a proceeding has not been instituted. The attorney general may direct the department of justice or the district attorney to institute such proceeding within a reasonable time.

AB144-ASA2-AA1, s. 36m Section 36m. 945.041 (3) of the statutes is amended to read:

AB144-ASA2-AA1,12,3 945.041 (3) Such proceeding shall be in the name of the state and the issues may be determined by a jury. It shall be instituted by the filing of a petition and service of a notice as herein provided. The petition shall be directed to the circuit court and shall set forth a clear and concise statement of the grounds that are alleged to exist justifying a revocation of the license or permit under sub. (1), and shall request an order revoking such license or permit. It shall also request an injunction restraining the defendant from thereafter knowingly suffering or permitting any such gambling devices, any amusement device, as defined in s. 565.01 (1g), that is not licensed as described under s. 565.08, or any horse race betting to be set up, kept, managed, used or conducted upon premises directly or indirectly controlled by the defendant. Upon the filing of such petition the court shall fix a time for hearing not to exceed 30 days from the date of filing at a place within the judicial circuit, and a copy of the petition and a notice of the time and place of hearing shall be served upon the defendant not less than 20 days prior to the date of hearing. Such service shall be made in the same manner as a summons is served in a civil action, except that it may also be made by leaving a copy of said petition and notice with any person charged with the operation of the licensed premises under s. 125.68 (2). The allegations of the petition shall be deemed controverted and shall be at issue without further pleading by the defendant. No hearing shall be adjourned except for cause. If upon such hearing the court finds that the allegations of the petition are true, it shall issue a written order revoking the license or permit and shall likewise enjoin the defendant from thereafter knowingly suffering or permitting any gambling devices referred to in sub. (1), any amusement device, as defined in s. 565.01 (1g), that is not licensed as described under s. 565.08, or any horse race betting to be set up, kept, managed, used or conducted upon premises directly or indirectly controlled by the defendant. The district attorney shall forthwith cause a copy of the order to be filed with the issuing authority of the license or permit and shall cause a copy to be served upon the defendant as above provided or the defendant's attorney. The revocation and injunction shall become effective upon such service. In cases where a license is issued by a town, city or village, a copy of the order shall also be filed with the department of revenue as provided under s. 125.13.

AB144-ASA2-AA1, s. 37m Section 37m. Nonstatutory provisions.

AB144-ASA2-AA1,12,6 (1) Advisory referendum. Section 565.015, 2001 stats., does not apply to the action of the legislature in enacting this act.

AB144-ASA2-AA1, s. 38m Section 38m. Effective dates. This act takes effect on July 1, 2003, or on the day after publication, whichever is later, except as follows:

AB144-ASA2-AA1,12,11 (1) The treatment of section 14.035 (2), (3), (4), and (5) of the statutes and the renumbering and amendment of section 14.035 of the statutes take effect on the day after publication.".

AB144-ASA2-AA1,12,12 (End)