565.01 (6) “Retailer" means a person who sells lottery tickets or lottery shares on behalf of the commission department under the terms of a lottery retailer contract entered into under s. 565.10.
27,6977j
Section 6977j. 565.01 (6m) (b) 9. (intro.) of the statutes is amended to read:
565.01 (6m) (b) 9. (intro.) Any game or device that is commonly known as a video game of chance or a video gaming machine or that is commonly known as or considered to be a video gambling machine, except a video device authorized by the commission department to permit the sale of tickets by retailers in a game authorized under par. (a) if all of the following apply:
27,6977L
Section 6977L. 565.01 (6m) (b) 11. of the statutes is amended to read:
565.01 (6m) (b) 11. Any other game that is commonly considered to be a form of gambling and is not, or is not substantially similar to, a game that the commission
department has the authority to conduct under this chapter.
27,6977m
Section 6977m. 565.017 of the statutes is created to read:
565.017 Recommendation of proposed rules by the department. The department may recommend proposed rules to the board.
27,6977n
Section 6977n. 565.02 (1) (a) of the statutes is amended to read:
565.02 (1) (a) Prior to appointing an administrator, the commission department shall conduct a nationwide search to find the best, most qualified appointee and consider the business management experience, marketing experience, computer experience and lottery management experience of the applicants.
27,6977p
Section 6977p. 565.02 (1) (b) 4. of the statutes is amended to read:
565.02 (1) (b) 4. A violation of a provision of this chapter or rule of the commission board.
27,6977r
Section 6977r. 565.02 (1) (c) of the statutes is amended to read:
565.02 (1) (c) Before appointment of an administrator is made, the commission department, with the assistance of the department of justice, shall conduct a background investigation of the proposed administrator. The commission department shall require the propose proposed administrator 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 person fingerprinted and obtaining records of his or her criminal arrests and convictions. The commission department shall reimburse the department of justice for the department's services under this paragraph.
27,6977t
Section 6977t. 565.02 (2) (a) of the statutes is amended to read:
565.02 (2) (a) The administrator shall perform the duties assigned to the administrator under this chapter and by the commission secretary of revenue.
27,6978
Section 6978. 565.02 (2) (b) of the statutes is amended to read:
565.02 (2) (b) The administrator shall appoint and supervise employes, including, outside the classified service, the deputy and assistant of the lottery division, as specified by the commission by rule under sub. (3) (a), as necessary to carry out the duties of the commission and administrator.
27,6978b
Section 6978b. 565.02 (2) (b) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:
565.02 (2) (b) The administrator shall appoint and supervise employes, as specified by the commission
board by rule under sub. (3) (a), as necessary to carry out the duties of the commission and administrator.
27,6978c
Section 6978c. 565.02 (2) (c) 3. of the statutes is amended to read:
565.02 (2) (c) 3. A violation of a provision of this chapter or rule of the commission board.
27,6978d
Section 6978d. 565.02 (2) (d) of the statutes is amended to read:
565.02 (2) (d) Before appointment of employes is made under par. (b), the commission department, with the assistance of the department of justice, shall conduct a background investigation of the proposed employes. The commission department shall require the persons proposed as employes 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 person fingerprinted and obtaining records of his or her criminal arrests and convictions. The commission department shall reimburse the department of justice for the department's services under this paragraph.
27,6978e
Section 6978e. 565.02 (2r) of the statutes is amended to read:
565.02 (2r) The commission
department may require a fidelity bond from the administrator or any other employe of the lottery division in the department.
27,6978f
Section 6978f. 565.02 (3) (intro.) of the statutes is amended to read:
565.02 (3) (intro.) The commission board shall promulgate all of the following rules:
27,6978g
Section 6978g. 565.02 (3) (b) 6. of the statutes is amended to read:
565.02 (3) (b) 6. Qualifications for retailers, in addition to those under this section, as determined by the commission board.
27,6978gm
Section 6978gm. 565.02 (3) (e) of the statutes is repealed.
27,6978h
Section 6978h. 565.02 (4) (intro.) of the statutes is amended to read:
565.02 (4) (intro.) The commission board may promulgate all of the following rules:
27,6978i
Section 6978i. 565.02 (6) of the statutes is amended to read:
565.02 (6) The commission department shall deposit all gross lottery revenues, as defined in s. 25.75 (1) (b), in the lottery fund.
27,6978j
Section 6978j. 565.02 (7) of the statutes is amended to read:
565.02 (7) Not later than March 1 of each year, the commission 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 prizes and the prize payout ratio for each type of lottery game offered, and an evaluation of the effect of prize payout ratios of lottery games on lottery sales, lottery operating costs and on maximizing the revenue available for the lottery 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 commission department that the committee has scheduled a meeting for the purpose of reviewing the commission's department's proposed prize payouts, the commission department may proceed with its plans for the 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 commission 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 commission's department's proposed prize payouts, the commission's department's plans for the prize payouts for the subsequent fiscal year are considered approved by the committee.
27,6978k
Section 6978k. 565.05 (1) (intro.) of the statutes is amended to read:
565.05 (1) (intro.) No member or employe of the commission board, secretary of revenue, deputy secretary of revenue or employe in the lottery division of the department may do any of the following:
27,6978L
Section 6978L. 565.05 (1) (a) of the statutes is amended to read:
565.05 (1) (a) Have a direct or indirect interest in or be employed by any vendor while serving as a commission member or employe of the board, secretary of revenue, deputy secretary of revenue or employe in the lottery division of the department or for 2 years following the member's or employe's person's termination of service.
27,6978m
Section 6978m. 565.10 (1) of the statutes is amended to read:
565.10 (1) Selection of retailers; retailer contract. Under rules promulgated by the commission board under s. 565.02 (3) (b) and (4) (a), the administrator may contract with a person for the retail sale of lottery tickets or lottery shares. Retailers shall be selected for contract so as to provide adequate and convenient availability of lottery tickets and lottery shares to prospective buyers.
27,6978n
Section 6978n. 565.10 (3) (c) 4. of the statutes is amended to read:
565.10 (3) (c) 4. The restrictions under par. (a) do not apply to the partnership, limited liability company, association or corporation if the commission 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.
27,6978no
Section 6978no. 565.10 (4) (b) (intro.) of the statutes is amended to read:
565.10 (4) (b) (intro.) Subject to approval of each such retailer contract by the commission department, the retailer contract is with one of the following:
27,6978p
Section 6978p. 565.10 (5) (a) of the statutes is amended to read:
565.10 (5) (a) In entering into a lottery retailer contract with state agencies, other than the commission
department, and agencies of local units of government, the administrator shall attempt to minimize the competitive effect of sales by the state or local agencies on other retailers. An application for a retailer contract by a local unit of government shall be approved by the governing body of the local unit of government.
27,6978q
Section 6978q. 565.10 (5) (b) of the statutes is amended to read:
565.10 (5) (b) A lottery retailer contract may be entered into with a private person operating activities on state or local government property. The commission
department shall give preference to an individual, group of individuals or nonprofit organization, as specified under sub. (4) (b), in entering into contracts under this paragraph.
27,6978r
Section 6978r. 565.10 (7) (b) of the statutes is amended to read:
565.10 (7) (b) The administrator may, under rules promulgated by the commission board, contract for a period that is shorter than 3 years in order to stagger lottery retailer contract expiration dates throughout a 3-year period.
27,6978s
Section 6978s. 565.10 (8) of the statutes is amended to read:
565.10 (8) Contract fees. A contract entered into under this section may require payment of a nonrefundable initial application fee or a nonrefundable annual fee for continuation, or both, in an amount promulgated by the commission board by rule under s. 565.02 (4) (b). A separate nonrefundable fee, in an amount specified in rules promulgated under s. 565.02 (4) (b), may be required for each certificate of authority issued under sub. (11).
27,6978t
Section 6978t. 565.10 (8m) of the statutes is amended to read:
565.10 (8m) (title) Payment to
commission department or contractor. Payment by a retailer to the
commission department or to any contractor for lottery tickets or lottery shares shall be by check, bank draft, electronic fund transfer or other recorded means, as determined by the administrator. No payment under this subsection may be in cash.
27,6978u
Section 6978u. 565.10 (11) of the statutes is amended to read:
565.10 (11) Certificate of authority; required display. The commission department shall issue to each retailer a separate certificate of authority for each location from which the retailer may sell lottery tickets or lottery shares. Each retailer shall conspicuously display the certificate of authority on the premises where retail sales of lottery tickets or lottery shares are authorized under the certificate in a location which is accessible for public inspection.
27,6979
Section 6979
. 565.10 (14) (b) of the statutes is amended to read:
565.10 (14) (b) The basic compensation to be paid to a retailer is 5% 5.5% of the retail price of lottery tickets or lottery shares sold by the retailer. The commission may, in the rules promulgated under s. 565.02 (4) (f), provide for the payment of a higher rate of compensation to nonprofit organizations making sales under a contract issued on a temporary basis than the rate of compensation paid to other retailers.
27,6979m
Section 6979m. 565.10 (14) (b) of the statutes, as affected by 1995 Wisconsin Act .... (this act), is amended to read:
565.10 (14) (b) The basic compensation to be paid to a retailer is 5.5% of the retail price of lottery tickets or lottery shares sold by the retailer. The commission
board may, in the rules promulgated under s. 565.02 (4) (f), provide for the payment of a higher rate of compensation to nonprofit organizations making sales under a contract issued on a temporary basis than the rate of compensation paid to other retailers.
27,6980
Section 6980
. 565.10 (14) (c) of the statutes is repealed.
27,6980c
Section 6980c. 565.10 (15) of the statutes is amended to read:
565.10 (15) Remitting proceeds. A retailer shall, on a daily basis, unless another basis, but not less than weekly, is provided by the commission board by rule, remit to the commission department the lottery proceeds from the sale of lottery tickets or lottery shares. The amount of compensation deducted by the retailer, if any, shall be indicated as a deduction from the total remitted.
27,6980e
Section 6980e. 565.12 (1) (intro.) of the statutes is amended to read:
565.12 (1) (intro.) A lottery retailer contract entered into under s. 565.10 may be terminated or suspended for a specified period if the commission department finds that the retailer has done any of the following:
27,6980g
Section 6980g. 565.12 (1) (e) of the statutes is amended to read:
565.12 (1) (e) Failed to account accurately for lottery tickets, revenues or prizes or lottery shares, as required by the commission department, or is delinquent in remitting lottery ticket or lottery share revenues.
27,6980i
Section 6980i. 565.12 (2) of the statutes is amended to read:
565.12 (2) If the administrator determines that the immediate suspension or termination of a lottery retailer contract entered into under s. 565.10 is necessary to protect the public interest or the security, integrity or fiscal responsibility of the lottery, the administrator may, without prior notice or hearing, suspend for a specified period or terminate the lottery retailer contract by mailing to the retailer a notice of suspension or termination that includes a statement of the facts or conduct that warrant the suspension or termination and a notice that the retailer may, within 30 days after the date on which the notice of suspension or termination is mailed, have the suspension or termination reconsidered by the administrator. If, upon reconsideration, the administrator affirms the determination to suspend or terminate the lottery retailer contract, the retailer shall be afforded an opportunity for a hearing before the commission board to review the determination of the administrator.
27,6980k
Section 6980k. 565.12 (3) of the statutes is amended to read:
565.12 (3) The commission board shall render the final decisions under s. 227.47 for all terminations and suspensions under subs. (1) and (2).
27,6980m
Section 6980m. 565.15 of the statutes is amended to read:
565.15 (title) Commission Department retail outlet. The commission department may establish and operate a lottery ticket or lottery share retail sales outlet or sell lottery tickets or lottery shares to the public at a special event. In considering whether to engage in direct retail sales, the commission department shall attempt to minimize the competitive effects of its sales on sales by other retailers.
27,6980p
Section 6980p. 565.17 (1) of the statutes is amended to read:
565.17 (1) Who may sell. Lottery tickets or lottery shares may not be sold by any person other than a retailer or the commission department.
27,6980q
Section 6980q. 565.17 (2) of the statutes is amended to read:
565.17 (2) Price. No person may sell lottery tickets or lottery shares at a price other than the retail sales price established by the administrator under s. 565.27 (1) (b), except to the extent of any discount authorized by the administrator or the commission department.
27,6980s
Section 6980s. 565.17 (5) (title) of the statutes is amended to read:
565.17 (5) (title) Commission Board members and employes; certain department employes.
27,6980u
Section 6980u. 565.17 (5) (a) of the statutes is amended to read:
565.17 (5) (a) No member or employe of the commission board, secretary of revenue, deputy secretary of revenue or employe of the lottery division in the department or any relative residing in the same household with a member or employe of the commission board, secretary of revenue, deputy secretary of revenue or employe of the lottery division in the department may purchase a lottery ticket or lottery share.
27,6981
Section 6981
. 565.25 (1m) of the statutes is amended to read:
565.25 (1m) Scope of authority. Subject to approval by the commission, the administrator may determine whether lottery functions shall be performed by commission employes or by one or more persons under contract with the department, except that no contract may provide for the entire management of the lottery or for the entire operation of the lottery by any private person. The department may contract for management consultation services to assist in the management or operation of the lottery. The department may not contract for financial auditing or security monitoring services, except that if the department delegates under s. 16.71 (1) to the commission the authority to make a major procurement the commission may contract with the department for warehouse and building protection services. If the department delegates under s. 16.71 (1) to the commission the authority to make a major procurement, the commission shall assume the powers and duties of the department and the administrator shall assume the powers and duties of the secretary of administration under this section and ss. 16.70 to 16.77, except under ss. 16.72 (4) (a), 16.76 (1) and 16.77 (1).
27,6981b
Section 6981b. 565.25 (1m) of the statutes, as affected by 1995 Wisconsin Act ....(this act), is amended to read:
565.25 (1m) Scope of authority. Subject to approval by the commission board, the administrator may determine whether lottery functions shall be performed by commission department of revenue employes or by one or more persons under contract with the department of administration, except that no contract may provide for the entire management of the lottery or for the entire operation of the lottery by any private person. The department of administration may contract for management consultation services to assist in the management or operation of the lottery. The department of administration may not contract for financial auditing or security monitoring services, except that, if the department of administration delegates under s. 16.71 (1) to the commission department of revenue the authority to make a major procurement, the commission department of revenue may contract with the department of administration for warehouse and building protection services relating to the state lottery. If the department of administration delegates under s. 16.71 (1) to the commission department of revenue the authority to make a major procurement, the department of revenue shall assume the powers and duties of the department of administration and the administrator shall assume the powers and duties of the secretary of administration under this section and ss. 16.70 to 16.77, except under ss. 16.72 (4) (a), 16.76 (1) and 16.77 (1).
27,6981c
Section 6981c. 565.25 (2) (a) 4. (intro.) of the statutes is amended to read:
565.25 (2) (a) 4. (intro.) The administrator shall develop specifications for major procurements. If security is a factor in the materials, supplies, equipment, property or services to be purchased in any major procurement, then invitations for bids or competitive sealed proposals shall include specifications related to security. The administrator shall submit specifications for major procurement to the commission secretary of revenue for review and approval before the department of administration releases the specifications in invitations for bids or competitive sealed proposals. The department of administration shall require separate bids or separate competitive sealed proposals for each of the following supplies and services if the supplies or services are provided under contract as provided in sub. (1m):
