AB144-ASA3,5,224
565.01
(1c) "Adjusted gross receipts" means the total amount paid by cash or
25check to a person licensed under s. 565.08 (1) (a) for the play of amusement devices
1licensed under s. 565.08 less the total amount paid by cash or check to the players
2of the amusement devices for the play of the amusement devices.
AB144-ASA3,5,114
565.01
(1g) "Amusement device" means, before July 1, 2005, any video device
5that awards or is capable of awarding a player with one or more redeemable free
6replays or credits for achieving certain scores or results and does not change the ratio
7of plays to free replays or credits so awarded. Beginning on July 1, 2005, "amusement
8device" means any on-line video device that awards or is capable of awarding a
9player with one or more redeemable free replays or credits for achieving certain
10scores or results and does not change the ratio of plays to free replays or credits so
11awarded.
AB144-ASA3,5,1813
565.01
(4g) "On-line services and supplies" means those lottery products and
14associated services, including computerized transaction processing equipment,
15computerized retailer vending terminals, and those technologies necessary to
16maximize lottery revenues and minimize the lottery's total operating costs. The term
17does not include services related to instant lottery ticket services
or the playing of
18amusement devices licensed under s. 565.08.
AB144-ASA3, s. 18
19Section
18. 565.01 (4r) (intro.) of the statutes is amended to read:
AB144-ASA3,5,2420
565.01
(4r) (intro.) "Promotional advertising" means advertising which is for
21the purpose of inducing persons to purchase lottery tickets or lottery shares
or play
22amusement devices licensed under s. 565.08. "Promotional advertising" does not
23mean advertising which is designed to provide the public with information on any
24of the following:
AB144-ASA3,6,3
1565.01
(6c) "Set up for the purpose of play" means operated for the purpose of
2offering a person, for consideration, an opportunity to play an amusement device
3licensed under s. 565.08.
AB144-ASA3, s. 20
4Section
20. 565.01 (6m) (a) (intro.) of the statutes is renumbered 565.01 (6m)
5(intro.) and amended to read:
AB144-ASA3,6,66
565.01
(6m) (intro.) "The state lottery" means
an all of the following:
AB144-ASA3,6,9
7(a) An enterprise, including a multijurisdictional lottery in which the state
8participates, in which the player, by purchasing a ticket, is entitled to participate in
9a game of chance in which any of the following applies:
AB144-ASA3, s. 21
10Section
21. 565.01 (6m) (b) and (c) of the statutes are repealed.
AB144-ASA3,6,1312
565.01
(6m) (bm) The play and operation of an amusement device licensed
13under s. 565.08.
AB144-ASA3,7,916
565.02
(7) Not later than March 1 of each year, the department shall submit
17to the joint committee on finance a report that includes an estimate for that fiscal
18year and for the subsequent fiscal year of the gross revenues from the sale of lottery
19tickets and lottery shares, the total amount paid as
lottery ticket and share prizes
20and the
lottery ticket and share prize payout ratio for each type of lottery game
21offered, and an evaluation of the effect of
lottery ticket and share prize payout ratios
22of lottery games on lottery sales, lottery operating costs and on maximizing the
23revenue available for the lottery and gaming property tax credit. If, within 14
24working days after the date on which the committee receives the report, the
25cochairpersons of the committee notify the department that the committee has
1scheduled a meeting for the purpose of reviewing the department's proposed
lottery
2ticket and share prize payouts, the department may proceed with its plans for the
3lottery ticket and share prize payouts for the subsequent fiscal year only upon
4approval of the plans by the committee. If the cochairpersons of the committee do
5not notify the department within 14 working days after the date on which the
6committee receives the report that the committee has scheduled a meeting for the
7purpose of reviewing the department's proposed
lottery ticket and share prize
8payouts, the department's plans for the
lottery ticket and share prize payouts for the
9subsequent fiscal year are considered approved by the committee.
AB144-ASA3,7,13
11565.08 Licensing and regulation of amusement devices. (1) The
12department shall license all amusement devices that are set up for the purpose of
13play in this state, subject to all of the following conditions:
AB144-ASA3,7,1414
(a) An amusement device license may be issued only to the following:
AB144-ASA3,7,1715
1. A person who has a Class "B" license under ch. 125 on the effective date of
16this subdivision .... [revisor inserts date], or a person to whom such a Class "B" license
17has been transferred under s. 125.04 (12) (b).
AB144-ASA3,7,1818
2. A person who has a "Class B" license under ch. 125.
AB144-ASA3,7,2019
3. A person who held a license on January 1, 2003, that was issued under s.
20562.05 (1).
AB144-ASA3,7,2321
(b) An amusement device that is set up for the purpose of play may be played
22only at a racetrack at which pari-mutuel wagering was conducted on January 1,
232003, or at a premises issued a Class "B" or "Class B" license under ch. 125.
AB144-ASA3,7,2524
(c) The owner of the amusement device shall be charged an annual license fee
25of $100 for each amusement device that is set up for the purpose of play.
AB144-ASA3,8,3
1(d) 1. No more than 5 amusement devices may be set up for the purpose of play
2at any one premises operated under a Class "B" license or a "Class B" license issued
3under ch. 125.
AB144-ASA3,8,64
2. No more than 5 amusement devices per 1,000 square feet of space may be
5set up for the purpose of play at any racetrack at which pari-mutuel wagering was
6conducted on January 1, 2003, as such space existed on January 1, 2003.
AB144-ASA3,8,87
(e) No one person may manufacture or distribute all of the amusement devices
8that are set up for the purpose of play.
AB144-ASA3,8,139
(f) 1. Except as provided in subd. 2., any amusement device set up for the
10purpose of play shall have a percentage of credits awarded to credits played that is
11not less than the average percentage required under all unexpired Indian gaming
12compacts entered into under s. 14.035. In this subdivision, "average" means the
13arithmetic mean.
AB144-ASA3,8,1714
2. In calculating the percentage of credits awarded to credits played for an
15amusement device under subd. 1., the department shall reduce the percentage by a
16percentage that produces an amount equal to the amount of any sales or use taxes
17generated from the play of the amusement device.
AB144-ASA3,8,2118
(g) The adjusted gross receipts, less any amount paid as sales or use taxes from
19the play of an amusement device, shall be equally divided between the state, for
20deposit in the lottery fund, and the holder of the license under par. (a) for the
21premises or racetrack at which the amusement device is located.
AB144-ASA3,9,2
22(2) If the department attempts to verify the percentage of credits awarded to
23credits played of an amusement device under sub. (1) (f) and the owner of the
24premises or racetrack at which the amusement device is located fails, or is unable,
25to assist the department, with the result that the department cannot verify the
1percentage of credits awarded to credits played, the department shall do the
2following:
AB144-ASA3,9,53
(a) For the first offense, issue a warning to the owner, and the owner shall
4immediately assist the department in verifying the percentage of credits awarded to
5credits played of the amusement device.
AB144-ASA3,9,76
(b) For the 2nd offense, suspend for 30 days the license issued under sub. (1)
7(a) for that premises or racetrack.
AB144-ASA3,9,98
(c) For the 3rd offense, permanently revoke the license issued under sub. (1)
9(a) for that premises or racetrack.
AB144-ASA3, s. 26
10Section
26. 565.27 (1) (intro.) of the statutes is amended to read:
AB144-ASA3,9,1611
565.27
(1) Game features and procedures. (intro.) Subject to this section, the
12rules promulgated under s. 565.02 (3) (d) and (4) (a) and approval by the secretary
13of revenue, the administrator shall determine the particular features of and
14procedures for each lottery game offered
other than games played on amusement
15devices licensed under s. 565.08. The features and procedures shall be in writing,
16shall be accessible to the public and shall include all of the following:
AB144-ASA3,9,18
18565.30 (title)
Lottery ticket and share prizes.
AB144-ASA3,9,2220
565.30
(8) Applicability. This section applies only to prizes paid to the holder
21of a winning lottery ticket or share and not to prizes paid from an amusement device
22licensed under s. 565.08.
AB144-ASA3,9,2524
945.01
(1) (dm) Playing an amusement device, as defined in s. 565.01 (1g), that
25is licensed as described in s. 565.08.
AB144-ASA3,10,52
945.01
(3) (a)
A Subject to par. (b), a gambling machine is a contrivance which
3for a consideration affords the player an opportunity to obtain something of value,
4the award of which is determined by chance, even though accompanied by some skill
5and whether or not the prize is automatically paid by the machine.
AB144-ASA3, s. 31
6Section
31. 945.01 (3) (b) 1m. of the statutes is created to read:
AB144-ASA3,10,87
945.01
(3) (b) 1m. An amusement device, as defined in s. 565.01 (1g), that is
8licensed as described in s. 565.08.
AB144-ASA3, s. 32
9Section
32. 945.01 (4) (am) of the statutes is renumbered 945.01 (4) (am)
10(intro.) and amended to read:
AB144-ASA3,10,1211
945.01
(4) (am) (intro.) "Gambling place" does not include
a any of the
12following:
AB144-ASA3,10,13
131. A place where bingo or a raffle is conducted under ch. 563
,.
AB144-ASA3,10,14
142. A place where a lottery is conducted under ch. 565
or.
AB144-ASA3,10,15
153. A place where a race is conducted under ch. 562
and does not include a.
AB144-ASA3,10,17
164. A gambling vessel that is in the process of construction, delivery, conversion
17or repair by a shipbuilding business that complies with s. 945.095.
AB144-ASA3, s. 33
18Section
33. 945.01 (4) (am) 5. of the statutes is created to read:
AB144-ASA3,10,2019
945.01
(4) (am) 5. A premises on which is located an amusement device, as
20defined in s. 565.01 (1g), that is licensed as described in s. 565.08.
AB144-ASA3,10,2522
945.01
(5) (am) "Lottery" does not include bingo or a raffle conducted under ch.
23563
,; the playing of an amusement device, as defined in s. 565.01 (1g), that is licensed
24as described in s. 565.08; pari-mutuel wagering conducted under ch. 562
; or the state
25lottery or any multijurisdictional lottery conducted under ch. 565.
AB144-ASA3,11,142
945.041
(1) A license or permit issued under ch. 125 to any person who
3knowingly permits any slot machine, roulette wheel, other similar mechanical
4gambling device, or number jar or other device designed for like form of gambling,
5or any amusement device, as defined in s. 565.01 (1g), that is not licensed as
6described under s. 565.08, or any horse race betting or other bookmaking as defined
7in s. 945.01, or solicitation of drinks from customers under s. 944.36 to be set up, kept,
8managed, used or conducted upon the licensed premises or in connection therewith
9upon premises controlled directly or indirectly by the person, shall be revoked by the
10circuit courts by a special proceeding as provided in this section. If a license or permit
11has been revoked
, no other license or permit of any character provided for by ch. 125
12may be issued to the person who held the license or permit, prior to the expiration
13of one year from the effective date of the revocation. If any appeal is taken from the
14revocation, any period during which the order is stayed shall be added to the one year.
AB144-ASA3,12,816
945.041
(2) Any sheriff, undersheriff, deputy sheriff, constable or other
17municipal police officer or any person authorized to enforce the gambling laws under
18s. 165.60 shall within 10 days after acquiring such information report to the district
19attorney of the county the name and address of any licensee or permittee under ch.
20125 who to his or her knowledge has knowingly suffered or permitted any
gambling 21device in sub. (1)
, any amusement device, as defined in s. 565.01 (1g), that is not
22licensed as described under s. 565.08, or any horse race betting to be set up, kept,
23managed, used or conducted upon the licensed premises or in connection therewith
24upon premises controlled directly or indirectly by such licensee or permittee. Such
25officer or person shall also report to the district attorney knowledge of the
1circumstances and the name of the municipality or officer by whom the license or
2permit has been issued. Any other person may in writing and signed by that person
3report any such name, address and other information to the district attorney. Within
410 days after any report the district attorney shall institute a proceeding as
5hereinafter provided before the circuit court of the county or shall within such time
6report to the attorney general the reasons why such a proceeding has not been
7instituted. The attorney general may direct the department of justice or the district
8attorney to institute such proceeding within a reasonable time.
AB144-ASA3,13,1510
945.041
(3) Such proceeding shall be in the name of the state and the issues
11may be determined by a jury. It shall be instituted by the filing of a petition and
12service of a notice as herein provided. The petition shall be directed to the circuit
13court and shall set forth a clear and concise statement of the grounds that are alleged
14to exist justifying a revocation of the license or permit under sub. (1), and shall
15request an order revoking such license or permit. It shall also request an injunction
16restraining the defendant from thereafter knowingly suffering or permitting any
17such
gambling devices
, any amusement device, as defined in s. 565.01 (1g), that is
18not licensed as described under s. 565.08, or any horse race betting to be set up, kept,
19managed, used or conducted upon premises directly or indirectly controlled by the
20defendant. Upon the filing of such petition the court shall fix a time for hearing not
21to exceed 30 days from the date of filing at a place within the judicial circuit, and a
22copy of the petition and a notice of the time and place of hearing shall be served upon
23the defendant not less than 20 days prior to the date of hearing. Such service shall
24be made in the same manner as a summons is served in a civil action, except that it
25may also be made by leaving a copy of said petition and notice with any person
1charged with the operation of the licensed premises under s. 125.68 (2). The
2allegations of the petition shall be deemed controverted and shall be at issue without
3further pleading by the defendant. No hearing shall be adjourned except for cause.
4If upon such hearing the court finds that the allegations of the petition are true, it
5shall issue a written order revoking the license or permit and shall likewise enjoin
6the defendant from thereafter knowingly suffering or permitting any gambling
7devices referred to in sub. (1)
, any amusement device, as defined in s. 565.01 (1g),
8that is not licensed as described under s. 565.08, or any horse race betting to be set
9up, kept, managed, used or conducted upon premises directly or indirectly controlled
10by the defendant. The district attorney shall forthwith cause a copy of the order to
11be filed with the issuing authority of the license or permit and shall cause a copy to
12be served upon the defendant as above provided or the defendant's attorney. The
13revocation and injunction shall become effective upon such service. In cases where
14a license is issued by a town, city or village, a copy of the order shall also be filed with
15the department of revenue
as provided under s. 125.13.
AB144-ASA3,13,1817
(1)
Advisory referendum. Section 565.015, 2001 stats., does not apply to the
18action of the legislature in enacting this act.
AB144-ASA3, s. 39
19Section
39.
Effective dates. This act takes effect on July 1, 2003, or on the
20day after publication, whichever is later, except as follows:
AB144-ASA3,13,23
21(1) The treatment of section 14.035 (2), (3), (4), and (5) of the statutes and the
22renumbering and amendment of section 14.035 of the statutes take effect on the day
23after publication.