Initial Regulatory Flexibility Analysis
Notice is hereby further given that pursuant to s. 227.114, Stats., it is not anticipated that the proposed rule will have an economic impact on small businesses.
Environmental Assessment
Notice is hereby further given that the Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch. NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
Hearing Information
May 18, 2000 Room 137
Thursday DOT Building
at 1:30 p.m. 141 NW Barstow Street
Waukesha
May 23, 2000 Basement Conference Room
Tuesday DNR Headquarters
at 3:30 p.m. 810 W. Maple
Spooner
May 24, 2000 Conference Room 1
Wednesday DNR Headquarters
at 2:30 p.m. 107 Sutliff Avenue
Rhinelander
Notice is hereby further given that pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of informational material in an alternative format, will be provided for qualified individuals with disabilities upon request, Please call Carroll Schaal at (608) 261-6423 with specific information on your request at least 10 days before the date of the scheduled hearing.
Written Comments and Contact Information
Written comments on the proposed rule may be submitted to Mr. Carroll Schaal, Bureau of Fisheries Management and Habitat Protection, P.O. Box 7921, Madison, WI 53707 no later than June 2, 2000. Written comments will have the same weight and effect as oral statements presented at the hearing. A copy of the proposed rule and fiscal estimate may be obtained from Mr. Schaal.
Fiscal Estimate
There is no fiscal effect.
Notice of Hearing
Revenue
Notice is hereby given that, pursuant to ss. 227.11(2)(a) and 565.10(14)(b)3m., Stats., and interpreting ss. 565.02(4)(g) and 565.10(14)(b)3m., Stats., the Department of Revenue will hold a public hearing at the time and place indicated below to consider both the emergency rule and the proposed permanent rule order revising ch. WGC 61, relating to the Wisconsin Lottery's retailer performance program.
Hearing Information
The hearing will be at 11:00 am on
Wednesday May 31st, 2000, and will be held at the Wisconsin Lottery Milwaukee Facility located at 4353 North Richardson Street, Milwaukee, Wisconsin.
Handicap access is available at the main front entrance of the building.
Comments on the Rule
Interested persons are invited to appear at the hearing and may make an oral presentation. It is requested that written comments reflecting the oral presentation be given to the department at the hearing. Written comments may also be submitted to the contact person shown below no later than Wednesday, June 7th, 2000, which is no less than 7 days after the hearing date. Written comments will be given the same consideration as testimony presented at the hearing.
Contact Person
James Amberson
Department of Revenue
1802 W. Beltline Highway
P.O. Box 8941
Madison, WI 53708-8941
Telephone (608) 267-4840
Analysis by the Department of Revenue
Statutory authority: ss. 227.11(2)(a) and 565.10(14)(b)3m.
Statutes interpreted: ss. 565.02(4)(g) and 565.10(14)(b)3m., Stats., as created by 1999 Wis. Act 9.
SECTION 1. WGC 61.02(5), (6) and (7) are renumbered WGC 61.02(6), (7) and (9), consistent with Legislative Council Rules Clearinghouse standards to insert, in alphabetical order, the definitions in Section 2.
SECTION 2. WGC 61.02(5) and (8) are created, to provide additional definitions relating to the Wisconsin lottery.
SECTIONS 3, 4 AND 5. WGC 61.04(1)(d) and 61.08(11)(c) and (21)(c) are amended and WGC 61.085 is created, to address the implementation and maintenance of the retailer performance program, or “RPP." The RPP was implemented effective January 1, 2000.
Text of Rule
SECTION 1. WGC 61.02(5), (6) and (7) are renumbered WGC 61.02(6), (7) and (9).
SECTION 2. WGC 61.02(5) and (8) are created to read:
WGC 61.02(5) “Retailer performance program" or “RPP" means a program that is designed to provide additional compensation, above the compensation provided under s. 565.10(14)(b)1. or 2., Stats., to retailers who meet certain performance goals identified by the Wisconsin lottery.
(8) “Winning lottery ticket" or “winning lottery share" means either of the following:
(a) For instant scratch tickets under s.565.01(6m)(a)1.,Stats., the terms mean any ticket that has been validated by the Wisconsin lottery as a ticket that entitles a player to a prize.
(b) For on-line tickets under s.565.01(6m)(a)2., Stats., the terms mean any ticket that has been identified by a secure method by the Wisconsin lottery as a ticket that entitles a player to a prize.
SECTION 3. WGC 61.04(1)(d) is amended to read:
WGC 61.04(1)(d) The applicant is expected to sell a minimum of 500 tickets a500 tickets a month $400 worth of instant scratch tickets each month, under s.565.01(6m)(a)1., Stats., which shall be represented in any retailer contract or addenda. The executive director executive director administrator may deny a contract to an applicant whose anticipated monthly sales will not meet a minimum of 500 tickets500 tickets
$400 worth of instant scratch tickets each month or whose historical monthly sales are less than 500 tickets 500 $400 worth of instant scratch tickets each month.
SECTION 4. WGC 61.08(11)(c) and (21)(c) are amended to read:
WGC 61.08(11)(c) The retailer shall sell at least 500 tickets a500 tickets a month.$400 worth of instant scratch tickets each month, under WGC61.04(1)(d).
(21)(c) The retailer failed to sell a monthly minimum of 500 lottery tickets 500 lottery tickets$400 worth of instant scratch tickets each month, under WGC61.04(1)(d);
SECTION 5. WGC 61.085 is created to read:
WGC 61.085 Retailer performance program. (1) PURPOSE. The retailer performance program or "RPP" is intended to provide additional compensation, above the compensation provided under s. 565.10(14)(b)1. or 2., Stats., to retailers who meet certain performance goals identified by the department. This additional compensation is authorized under ss. 565.02(4)(g) and 565.10(14)(b)3m., Stats.
(a) This program is applicable to lottery retailer sales transactions beginning on January 1st, 2000.
(2) DEFINITIONS. In this section:
(a) “Appropriate quarterly sales history" means the historical sales data that is used to calculate performance of a retail location within the RPP. The appropriate quarterly sales history data may be from either the comparable history quarter as defined under par. (b) or the immediately previous quarter as defined under par. (d).
(b) “Comparable history quarter" means the full sales quarter that is one year prior to the current sales quarter in which the RPP is being administered.
(c) “Gross sales" means the sales data as indicated by Wisconsin lottery accounts receivable documentation of weekly invoicing of the purchase of Wisconsin lottery products by retailers.
(d) “Immediately previous quarter" means the full sales quarter immediately prior to the current sales quarter in which the RPP is being administered.
(e) “Retail location" means the place of business at which lottery products such as instant tickets or terminal generated tickets are sold, as selected under"WGC61.04.
(f) “Sales goals incentive" means the component of the RPP that pays incentive to retailers who increase sales in a specified sales quarter or specified fiscal year, or both, when the sales quarter or fiscal year is compared to an appropriate quarterly sales history as defined under par. (a).
(g) “Sales quarter" means a quarter of the Wisconsin lottery fiscal year that is 13 weeks in length. Beginning in fiscal year 2001, the administrator shall determine the start and end dates of all sales quarters of a fiscal year no later than one month prior to the beginning of that fiscal year, and upon request shall provide the calendar dates that define each quarter of a fiscal year. A quarter shall start and end on dates that are consistent with the standard billing cycle that the lottery uses to collect revenue from retailer accounts.
(h) “Short-term incentive" means the component of the RPP that pays incentive to retailers who satisfy a performance expectation as established in short-term incentive features and procedures documentation. Short-term incentives shall have features and procedures documentation as indicated under sub. (4)(c). Short-term incentives shall be designed to support a certain product or product type or to strengthen sales during certain times of the fiscal year.
(i) “Winning ticket incentive" means the component of the RPP that pays an incentive to retailers who sell winning lottery tickets.
(3) ELIGIBILITY. Any retailer may participate in the RPP provided it meets all of the following eligibility requirements:
(a) The retailer shall honor the current retailer contract, including any applicable addenda, and shall sell a minimum amount of instant tickets as indicated under WGC61.08(11)(c).
(b) The retailer may not be a not-for-profit or nonprofit organization as defined in s. 565.10(14)(a), Stats.
(c) The retailer shall satisfy any qualifying requirements specific to each component of the RPP. If a retailer fails to satisfy the requirements specific to a component of the RPP, the retailer may not be considered qualified for that component of the RPP. A retailer shall qualify for each component separately, and qualifying for one component of the RPP may not affect qualifying for another component.
(4) DESIGN. The retailer performance program shall consist of 3 components, the winning ticket incentive, the sales goals incentive, and the short-term incentive described as follows:
(a) Winning ticket incentive. The expected performance of the winning ticket incentive component of the RPP is the selling of winning lottery tickets. To qualify for the winning ticket incentive, a retailer shall satisfy the eligibility requirements as stated in sub. (3). An incentive shall be paid to a retailer for selling any winning lottery ticket where the stated prize value of the winning lottery ticket is $600 or greater. The incentive shall be paid as follows:
1. For winning lottery tickets, 2% of the stated prize value shall be paid on each prize, up to a maximum of $100,000 per winning lottery ticket.
2. For lottery television program tickets, $30 shall be paid on each winning lottery ticket.
(b) Sales goals incentive. The sales goals incentive component of the RPP shall pay a retailer an incentive based on an increase in the amount of sales over the appropriate quarterly sales history as defined under sub. (2)(a) or the appropriate fiscal year in the case of jackpot terminal-generated games under subd. 3. The incentive shall be tracked, measured and paid based on one of 3 product types. For each product type, a retailer shall satisfy eligibility requirements as stated in sub. (3) and qualify for the product type under sub. (5). For the three product types, instant ticket sales, non-jackpot terminal-generated sales and jackpot terminal-generated sales, the retailer shall receive incentives calculated as follows:
1. For the instant ticket sales product type, the retailer shall receive an incentive calculated by comparing a sales quarter against the appropriate quarterly sales history as defined under sub. (2)(a) to determine if a sales increase has occurred. If a sales increase has not occurred, no incentive may be paid. If a sales increase has occurred, the retailer shall receive up to 10% of the sales increase. The administrator may adjust the payment percentage to a lower percentage under sub. (7) to ensure that appropriate funding authority is maintained within the current fiscal year. Any adjustment made shall consider historical sales and incentive information and shall be applied equally to all retailers. Information regarding the details of any adjustment shall be made available upon request.
2. For the non-jackpot terminal-generated sales product type, the retailer shall receive an incentive calculated by comparing a sales quarter against the appropriate quarterly sales history as defined under sub. (2)(a) to determine if a sales increase has occurred. If a sales increase has not occurred, no incentive may be paid. If a sales increase has occurred, the retailer shall receive up to 10% of the sales increase. The administrator may adjust the payment percentage to a lower percentage under sub. (7) to ensure that appropriate funding authority is maintained within the current fiscal year. Any adjustment made shall consider historical sales and incentive information and shall be applied equally to all retailers. Information regarding the details of any adjustment shall be made available upon request.
3. For the jackpot terminal-generated sales product type, the retailer shall receive an incentive calculated by comparing a fiscal year against the previous fiscal year to determine if a sales increase has occurred. If a sales increase has not occurred, no incentive may be paid. If a sales increase has occurred, the retailer shall receive up to 10% of the sales increase. The administrator may adjust the payment percentage to a lower percentage under sub. (7) to ensure that appropriate funding authority is maintained within the current fiscal year. Any adjustment made shall consider historical sales and incentive information and shall be applied equally to all retailers. Information regarding the details of any adjustment shall be made available upon request.
Note: For the fiscal year which ends on June 30
th, 2000, "fiscal year 2000," the Wisconsin lottery shall use the appropriate historical data from the fiscal year which ended on June 30th, 1999, "fiscal year 1999," to determine a one-half fiscal year goal for the jackpot terminal-generated game product type under subd. 3.
