SECTION 7. Tax 61.05 (1) is amended to read:
Tax 61.05 (1) The commission Wisconsin lottery may require from each retailer a fidelity bond in the amount determined by the executive director administrator and based upon the applicant's projected lottery ticket sales.
Note to Revisor: Insert the following note at the end of Tax 61.05:
SECTION 8. Tax 61.06 (2) and (4) are amended to read:
Tax 61.06 (2) The retailer will shall be issued a year-round certificate of authority if the retailer intends to sell lottery tickets all 12 months of the year. If the retailer intends to sell lottery tickets less than 12 months a year, the retailer may be issued a seasonal certificate of authority. If the retailer intends to sell lottery tickets throughout the year but only at selected times and places, such as at weekly events or at fairs and festivals, the retailer may be issued a temporary certificate of authority.
(4) A mutilated certificate shall be surrendered to the executive director administrator upon issuance of a duplicate. A lost certificate, when found, shall be surrendered to the executive director administrator within 15 calendar days of its recovery.
Note to Revisor: Insert the following note at the end of Tax 61.06:
SECTION 9. Tax 61.07 is amended to read:
Tax 61.07 Contract denial appeal procedure. (1) If the applicant was denied a contract, the executive director administrator shall notify the applicant, in writing, of the denial along with a brief statement why the applicant was denied a contract. The applicant shall also be notified that a request for a reconsideration must be made by the applicant within 30 calendar days and that the request must
shall contain the information in sub. (2).
(2) Within 30 calendar days of the mailing of the denial, the applicant may request a reconsideration by filing with the executive director, administrator a written statement setting forth the applicant's legal, factual, or equitable arguments and submitting any supporting documents. The request for reconsideration shall be deemed filed on the date it is received by the executive director administrator.
(3) Within 20 calendar days of receipt of the filing
request for reconsideration, the executive director administrator may, in writing, request the applicant to submit any additional facts, legal and equitable arguments , or documents
which the executive director that the administrator deems necessary to make a determination.
(4) The Wisconsin lottery's legal counsel shall compile a file containing all the material submitted by the applicant and any relevant material the executive director
administrator may have, including but not limited to, the completed application and credit check report. Legal counsel shall then review the file, research , if necessary, the applicable laws and rules , and prepare an analysis and recommendation for the executive director's administrator's consideration.
(5) The
executive director administrator, after considering all the facts and arguments submitted by the applicant, and legal counsel's recommendation, shall independently evaluate whether to grant or deny the applicant a contract. Within 45 calendar days of the
executive director's administrator's receipt of the
filing request for reconsideration or any supplemental information and documentation requested, the
executive director administrator shall notify the applicant, in writing, of the determination. If the applicant is denied a contract, the notice shall include a written statement setting forth the reasons for the denial and notifying the applicant of the right to a hearing on the denial under s.
227.42, Stats. The applicant shall be notified that a request for a hearing must be made by the applicant within 20 calendar days and that the request
must contain the information in sub. (6).
(6) (intro.) Within 20 calendar days of the
administrator's mailing of the final determination
by executive director, the applicant may
in writing request
, in writing, a hearing under s.
227.42, Stats. A request for a hearing shall be deemed filed on the date it is received by the
executive director administrator. A request shall contain all of the following:
(a) The applicant's name and address ; .
(b) The reasons why the applicant requests a hearing ; .
(c) The facts which that the applicant intends to prove at the hearing ; .
(d) A description of the mistake the applicant believes was made, if the applicant claims that the denial of contract is based on a mistake in fact or in law ; and .
(e) Any supporting documents not previously submitted to the executive director administrator.
(7) Within 20 calendar days of receipt of a request for hearing, the
executive director administrator shall
in writing grant or deny the request for a hearing
, in writing. A hearing shall be granted if the criteria in s.
227.42 (1), Stats., are met, and the
executive director administrator shall reasonably notify the applicant of the time and place of the hearing. A hearing shall be denied if criteria
in under s.
227.42 (1), Stats., are not met, and the
executive director administrator shall
in writing inform the applicant
, in writing, of the reason for denial.
(8) In the event that neither the applicant nor the applicant's representative appears at the time and place designated for the hearing, the executive director administrator may take action based upon the record as submitted. By failing to appear, an applicant waives any further right to appeal before the Wisconsin lottery.
Note to Revisor: Insert the following note at the end of Tax 61.07:
SECTION 10. Tax 61.08 (1), (3), (5), (7), (8), (10), (11) (b), (e) and (h), (13), (14) (b), (bm), (c) and (d), (15), (16), (19), (20) and (21) (intro.) and (a) to (h) are amended to read:
Tax 61.08 (1) CONTRACT PERIOD AND SALES AUTHORIZATION. The retailer's contract shall remain in effect for at least one year and shall expire on the date shown on the certificate of authority. The executive director administrator may renew the contract. However, the retailer does not have a substantial interest in, or a vested legal or equitable right to ,a contract renewal.
(3) RETAILER IS NOT AN EMPLOYEE OR AGENT OF THE STATE. The retailer is not an employee or agent of the state of Wisconsin , and is not entitled to any right, privilege , or benefit which that would accrue to an employee or agent of the state of Wisconsin.
(5) COMPLIANCE WITH STATE LAW AND RULES. During the term of the retailer contract, the retailer shall comply with ch.
565, Stats., the
commission's
Wisconsin lottery's administrative rules
, and any other applicable state law and administrative rules.
(7) CERTIFICATE OF AUTHORITY. The certificate of authority is not assignable and not or transferable and must shall be conspicuously displayed at the point of sale.
(8) NOTIFICATION OF CHANGES IN THE RETAILER'S APPLICATION. (a) The retailer shall in writing notify the executive director administrator, in writing, within 15 calendar days of every change of its organizational structure, including but not limited to changes from a sole proprietorship to a partnership or to a corporation.
(b) The retailer shall in writing notify the
executive director administrator, in writing, at least 30 calendar days in advance of any change of the retailer's business address.
(c) The retailer shall
in writing notify the
executive director administrator, in writing, within 15 calendar days if the retailer, or any of the retailer's partners, officers, directors
, or owners, as described under s.
565.10(3), Stats., have been convicted
of or pleaded guilty or no contest to a felony, a gambling related offense, or fraud or misrepresentation in any connection.
(10) INSURANCE REQUIREMENT. (a)(intro.) During the term of the retailer's contract , the retailer shall do all of the following:
1. Maintain worker's compensation insurance, if required to do so under ch.
102, Stats.
; and
2. Maintain public liability and property damage insurance against any claim which might that may occur in carrying out the retailer's contract. Minimum coverages are $300,000 single limit liability or $100,000 bodily injury per person and $300,000 per occurrence and $100,000 property damage.
(b) The insurance requirement requirements under par. (a) 1. and 2. do not apply to a state agency or a local unit of government.
(c) The retailer, by signing and executing the contract, warrants and represents to the Wisconsin lottery that the retailer has in place and will maintain during the contract period the insurance set forth under par. (a) 1. and 2. and at the minimum levels set forth under par. (a) 2.
(d) During the term of the retailer's contract, the executive director administrator reserves the right to request from the retailer verification that the retailer has complied with the insurance requirement requirements under par. (a) 1. and 2.
(11) (b) The retailer may not intentionally sell a lottery ticket to persons a person under 18 years of age.
(e) The retailer may not sell any lottery tickets at a price different from the price authorized by the Wisconsin lottery, condition the sale of a lottery ticket upon purchase of any other item or service , or impose any restriction upon the sale of a lottery ticket unless specifically authorized by the executive director administrator.
(h) The retailer shall may stamp each ticket with the retailer's identification number assigned by the Wisconsin lottery.
(13) RETAILER RESPONSIBILITY FOR TICKETS. (a) The retailer shall be responsible for the condition and security of lottery tickets received. If the retailer's lottery tickets are lost, stolen, mutilated, damaged, unaccountable or otherwise unsalable, the retailer shall be solely responsible for those tickets. The executive director administrator may not reimburse the retailer for such those losses or for instant scratch tickets not returned by the retailer in the proper sequentially numbered order.
(b) The retailer shall report by telephone within 24 hours any stolen tickets to the director of security Wisconsin lottery in Madison, Wisconsin, consistent with the instructions for reporting stolen tickets as idicated in the retailer contract.
(14) (b) The retailer's accounting records and correspondence under par. (a) shall be available to the executive director administrator for examination and copying during the retailer's regular business hours. All such of those records and correspondence are subject to seizure and audit without prior notice.
(bm) The retailer's electronic fund transfer account shall be debited once a week by the Wisconsin lottery for tickets received the previous week.
(c) If the retailer failed to place sufficient funds in the electronic fund transfer account for the tickets received the previous week, the retailer shall may not receive more tickets until the Wisconsin lottery is paid in full.
(d) The executive director administrator may assess the retailer a $20.00 surcharge for each dishonored retailer's check or electronic fund transfer.
(15) UNSOLD INSTANT SCRATCH TICKETS RETURNED FOR CREDIT. (a) On or before the settlement date, the retailer may return to the lottery unsold instant scratch tickets to the Wisconsin lottery and receive credit. Credit shall be the retailer's purchase price.
(b) The Wisconsin lottery shall credit the retailer's electronic fund transfer account for all returned unopened packs of tickets , and for one opened, partial pack of tickets per selling location.
(c) For tickets returned up to 90 calendar days after the settlement date, the lottery shall credit the retailer's account with what the credit would have been if timely returned , minus a 20% late penalty.
(d) The executive director administrator may not accept unsold tickets which for credit that are returned more than 90 calendar days after the settlement date.
(16) INSTANT SCRATCH TICKET REDEMPTION. (a) The retailer shall redeem low tier prizes for tickets sold at the retailer's outlet and presented to the retailer by the customer. If the customer elects to redeem the low tier prize from the Wisconsin lottery's office, the Wisconsin lottery shall debit the retailer's account in that amount.
(b) The retailer may not redeem winning lottery tickets for prizes in amounts different from the amounts authorized by the executive director administrator or condition redemption of a lottery prize upon the purchase of any other item or service, or impose any restriction upon the redemption of a lottery prize unless specifically authorized in writing by the executive director administrator.
(19) RIGHT TO APPEAL SUSPENSION OR TERMINATION. In the event the
executive director administrator suspends or terminates the retailer's contract, the retailer is entitled to an appeal in accordance with the provisions set forth under s.
Tax 61.10.
(20) SUSPENSION OR TERMINATION PROCEDURE. The retailer , upon notice of the suspension or termination, shall immediately stop selling lottery tickets. Within 2 weeks of the suspension or termination, the retailer shall make payment on any money owed for tickets for unsold tickets to the Wisconsin lottery and surrender all unsold tickets and all state owned lottery property.
(21) (intro.) GROUNDS FOR SUSPENSION OR TERMINATION. The retailer's contract may be suspended or terminated without prior notice by the Wisconsin lottery for any one of the following reasons:
(a) The retailer failed to meet
any one or more of the qualifications for being a retailer under s.
565.10, Stats., or under the
commission's Wisconsin lottery's administrative rules
; .
(b) The retailer violated a provision under ch.
565, Stats., or
any rule promulgated under of this chapter
; .
(c) The retailer failed to sell a monthly minimum of $400 worth of instant scratch tickets each month, under s.
Tax 61.04 (1) (d) ; .
(d) The retailer intentionally sold a lottery ticket to a person under 18 ; years of age.
(e) The retailer endangered the security of the Wisconsin lottery ; .
(f) The retailer engaged in fraud, deceit, misrepresentation or other conduct prejudicial to public confidence in the Wisconsin lottery ; .
(g) The retailer failed to remit money owed to the Wisconsin lottery or failed at least 3 times to make payment on or before the settlement date ; .
(h) The retailer engaged in telecommunication or printed advertising of lottery products or services, or both, that in the executive director's administrator's determination was false, deceptive , or misleading ; or
.
Note to Revisor: Insert the following note at the end of Tax 61.08:
SECTION 11. Tax 61.09 and 61.10 are amended to read:
Tax 61.09 Limitation on length of suspension. A suspension shall be limited to a maximum of 45 calendar days, during which time the executive director administrator shall consider the appropriate permanent action to be taken, including, but not limited to, termination of the retailer contract.
Note to Revisor: Insert the following note at the end of Tax 61.09:
61.10 Appeal procedure for a contract termination. (1) The executive director administrator shall give the retailer written notice of the retailer's terminated contract and state the grounds for the termination. The retailer shall also be notified that a request for a reconsideration must be made by the retailer within 30 calendar days and that the request must contain the information in sub. (2).
(2) Within 30 calendar days of the mailing of the notice of the termination, the retailer may request a reconsideration by filing with the executive director administrator a written statement setting forth the retailer's legal, factual , or equitable arguments and submitting any supporting documents. The request for reconsideration shall be deemed filed on the date it is received by the executive director administrator.
(3) Within 20 calendar days of receipt of the filing
request for reconsideration, the executive director may
administrator may, in writing, request the retailer to submit any additional facts, legal and equitable arguments , or documents
which the executive director that the administrator deems necessary to make a determination.
(4) The Wisconsin lottery's legal counsel shall compile all relevant correspondence, lottery accounting records , and all materials submitted to the executive director
administrator by the retailer for reconsideration. Legal counsel shall then review the file, research, if necessary, the applicable laws and rules , and prepare an analysis and recommendation for the executive director's administrator's consideration.
(5) The
executive director administrator, after considering all the facts and arguments submitted by the retailer, and legal counsel's recommendation, shall independently evaluate whether to either reinstate or terminate the contract. Within 45 calendar days of the
executive director's administrator's receipt of the
filing request for reconsideration or any supplemental information and documentation requested, the
executive director administrator shall notify the retailer, in writing, of the determination. If the contract is terminated, the notification shall include a statement setting forth the reasons for the termination and notifying the retailer of the right to a hearing under s.
227.42, Stats. The retailer shall also be notified that a request for a hearing must be made by the retailer within 20
calendar days and that the request
must contain the information in sub. (6).
Note to Revisor: Remove the note at the end of sub. (5).
(6) (intro.) Within 20 calendar days of the
administrator's mailing of the final determination
by the executive director, the retailer may
in writing request
, in writing, a hearing under s.
227.42, Stats. A request shall be deemed filed on the date
it is received by the
executive director administrator. A request for a hearing under s.
227.42 Stats., shall contain all of the following:
(a) The retailer's name and address ; .
(b) The reasons why a retailer requests a hearing ;
.
(c) The facts which that the retailer intends to prove at the hearing ; .
(d) A description of the mistake the retailer believes was made, if the retailer claims that the termination of contract is based on a mistake in fact or in law ; and .
(e) Any supporting documents not previously submitted to the executive director administrator.
(7) Within 20 calendar days of receipt of a request for hearing, the
executive director administrator shall
in writing grant or deny the request for a hearing
, in writing, under s.
227.42, Stats. A hearing shall be granted if the criteria under s.
227.42 (1), Stats., are met. The
executive director administrator shall reasonably notify the retailer of the time and place of the hearing. The
executive director
administrator shall inform the retailer
, in writing
, of the reason for denying a hearing.
(8) In the event that neither the retailer nor the retailer's representative appears at the time and place designated for the hearing, the executive director administrator may take action based upon the record as submitted. By failing to appear, the retailer waives any further right to appeal before the Wisconsin lottery.
Note to Revisor: Insert the following note at the end of Tax 61.10:
SECTION 12. Tax 62.01 is amended to read:
Tax 62.01 Purpose. The purpose of this chapter is to provide the executive director administrator with procedures regarding the Wisconsin lottery's major procurements.
