Amendment JR2 AA33-ASA1-AB1

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January 2002 Special Session

2001 - 2002 LEGISLATURE

ASSEMBLY AMENDMENT 33, TO ASSEMBLY SUBSTITUTE AMENDMENT 1, TO ASSEMBLY BILL 1

March 14, 2002 - Offered by Representative Boyle.

AB1-ASA1-AA33,1,1 At the locations indicated, amend the substitute amendment as follows:

AB1-ASA1-AA33,1,2 1. Page 19, line 20: after that line insert:

AB1-ASA1-AA33,1,3 " Section 52k. 20.505 (8) (j) of the statutes is amended to read:

AB1-ASA1-AA33,1,9 20.505 (8) (j) General program operations; raffles and, crane games, and amusement devices. The amounts in the schedule for general program operations relating to raffles under subchs. II and VIII of ch. 563 and relating to crane games and amusement devices under ch. 564. All moneys received by the department of administration under ss. 563.92 (2), and 563.98 (1g) and 564.02 (2) ch. 564 shall be credited to this appropriation account.".

AB1-ASA1-AA33,1,10 2. Page 139, line 16: after that line insert:

AB1-ASA1-AA33,1,11 " Section 232po. 77.51 (4) (b) 8. of the statutes is created to read:

AB1-ASA1-AA33,2,2 77.51 (4) (b) 8. The value of redeemable credits, except credits for replay, issued by an amusement device, as defined in s. 564.03 (1) (a).".

AB1-ASA1-AA33,2,3 3. Page 164, line 16: after that line insert:

AB1-ASA1-AA33,2,4 " Section 292h. 125.12 (1) (a) of the statutes is amended to read:

AB1-ASA1-AA33,2,7 125.12 (1) (a) Except as provided in this subsection and in s. 945.041, any municipality or the department may revoke, suspend, or refuse to renew any license or permit under this chapter, as provided in this section.

AB1-ASA1-AA33, s. 292p Section 292p. 125.12 (1) (c) of the statutes is amended to read:

AB1-ASA1-AA33,2,12 125.12 (1) (c) Neither a municipality nor the department may consider an arrest or conviction for a violation punishable under s. 945.03 (2m), 945.04 (2m) or 945.05 (1m) in any action to revoke, suspend, or refuse to renew a Class "B" or "Class B" license or permit.".

AB1-ASA1-AA33,2,13 4. Page 221, line 4: after that line insert:

AB1-ASA1-AA33,2,14 " Section 506m. Chapter 564 (title) of the statutes is amended to read:

AB1-ASA1-AA33,2,15 CHAPTER 564

AB1-ASA1-AA33,2,17 CRANE GAMES and amusement devices

AB1-ASA1-AA33, s. 506n Section 506n. 564.03 of the statutes is created to read:

AB1-ASA1-AA33,2,20 564.03 Offering amusement devices for play; registration and licensing. (1) Definitions. In this section:

AB1-ASA1-AA33,2,24 (a) "Amusement device" means any video amusement device that awards or is capable of awarding the player with one or more redeemable free replays or credits for achieving certain scores or results and does not change the ratio of plays to free replays or credits so awarded.

AB1-ASA1-AA33,3,2 (b) "Set up for the purpose of play" means operated for the purpose of offering a person, for consideration, an opportunity to play an amusement device.

AB1-ASA1-AA33,3,5 (2) Department authority; local option. (a) Subject to pars. (b) and (c), beginning on April 2, 2003, the department, on behalf of all cities and villages, shall license and regulate amusement devices in the manner provided in this section.

AB1-ASA1-AA33,3,18 (b) The governing body of a city or village may adopt a resolution calling for a referendum, to be held at the 2003 spring election, on whether the play and possession of amusement devices shall be prohibited in that city or village. The governing body shall adopt such a resolution no later than February 17, 2003. The referendum question shall be substantially as follows: "Shall the play and possession of amusement devices be prohibited in .... [name of city or village]?" If a majority of the electors who vote in the referendum vote "Yes," the department may not license any amusement device for the purpose of play or possession in the city or village. The clerk of the city or village shall report the results of any referendum held under this paragraph to the department as soon as the deadline for filing a petition for a recount has passed. If a valid petition for a recount is filed, the clerk shall report the results as soon as the recount is completed and the time allowed for filing an appeal has passed or, if appealed, as soon as the appeal is decided.

AB1-ASA1-AA33,3,23 (c) The department may license any amusement device for the purpose of play or possession in a city or village that enacted an ordinance on April 1, 2003, that prohibited in the city or village the play and possession of any amusement device, if that city or village enacts a subsequent ordinance authorizing the play and possession of any amusement device in the city or village.

AB1-ASA1-AA33,4,6 (3) Registration and licensing; fees. (a) No person may market, lease, service, repair, warehouse, transport, or set up for the purpose of play in this state any amusement device or collect the proceeds from an amusement device set up for the purpose of play in this state unless the person has been a resident of this state during the year immediately prior to applying for a certificate of registration under this subsection, the person registers with the department under this subsection, and a license with an identification number issued by the department is affixed to the amusement device.

AB1-ASA1-AA33,4,11 (b) Any person who wishes to market, lease, service, repair, warehouse, transport, or set up for the purpose of play in this state any amusement device or collect the proceeds from an amusement device set up for the purpose of play in this state shall file with the department, on application forms prescribed by the department, a signed application that includes all of the following information:

AB1-ASA1-AA33,4,16 1. The name and address of the person. If the person is a corporation or other business entity, the person shall also file with the department the name and address of all officers, directors, agents, and stockholders or other persons holding or controlling, either directly or indirectly, 5% or more of the ownership of the corporation or other business entity.

AB1-ASA1-AA33,4,18 2. The person's place or places of residence in this state, if any, during the year immediately prior to applying for a certificate of registration under this subsection.

AB1-ASA1-AA33,4,20 3. The serial number and manufacturer of each amusement device that the person intends to set up for the purpose of play in this state.

AB1-ASA1-AA33,4,22 4. The location of the premises at which the amusement devices shall be set up for the purpose of play.

AB1-ASA1-AA33,5,2 (c) A nonrefundable fee, set by the department to cover all costs of processing the application filed under par. (b), and the first year's license fees shall accompany the application under par. (b). If the department does not approve the application under par. (b), the department shall refund the license fees to the person.

AB1-ASA1-AA33,5,6 (d) Upon receipt of the application under par. (b) and the fees specified under par. (c), but subject to pars. (e) to (g), the department shall issue a certificate of registration to each applicant who has met the requirements of this subsection and a license with an identification number for each amusement device.

AB1-ASA1-AA33,5,11 (e) The department may not issue a certificate of registration under this subsection to any person who is a corporation or other business entity unless at least 51% of the ownership in that corporation or other business entity is held by one or more persons who have been residents of this state during the year immediately prior to applying for a certificate of registration.

AB1-ASA1-AA33,5,15 (f) The department may not issue a license with an identification number for an amusement device that is set up for the purpose of play at a location in a city or village other than a premises issued a Class "B" license or a "Class B" license under ch. 125.

AB1-ASA1-AA33,5,18 (g) Notwithstanding ss. 111.321, 111.322, and 111.335, the department may not issue a certificate of registration under this subsection to any person to whom any of the following applies:

AB1-ASA1-AA33,5,20 1. The person has been convicted of a misdemeanor, not involving chs. 340 to 349, at least 3 times.

AB1-ASA1-AA33,5,21 2. The person has been convicted of a felony, unless pardoned.

AB1-ASA1-AA33,5,22 3. The person has been convicted of an offense under ch. 961.

AB1-ASA1-AA33,5,23 4. The person has been convicted of 2 or more gambling offenses.

AB1-ASA1-AA33,5,24 5. The person has been convicted of crimes relating to prostitution.

AB1-ASA1-AA33,6,2 6. The person has been convicted of crimes relating to loaning money or anything of value to persons holding licenses or permits under ch. 125.

AB1-ASA1-AA33,6,3 7. The person does not hold a permit under s. 77.52 (7), if the person is a retailer.

AB1-ASA1-AA33,6,8 8. The person has been finally adjudged to be delinquent in the payment of taxes under ch. 71, 72, 76, 77, 78, or 139 or the person has been found delinquent in the payment of contributions to the unemployment reserve fund under s. 108.16 in a proceeding under s. 108.10 and the person remains so delinquent at the time of filing an application under par. (b).

AB1-ASA1-AA33,6,12 (h) Upon denial of an application under par. (b), the department shall immediately notify the person in writing and shall state the reasons for the denial. A denial of an application under par. (b) shall be subject to judicial review under ch. 227.

AB1-ASA1-AA33,6,15 (i) 1. The department shall charge, on behalf of a city or village, the owner of an amusement device an annual license fee of $1,000 for each amusement device set up for the purpose of play. The person shall pay this fee directly to the city or village.

AB1-ASA1-AA33,6,22 2. The department shall charge the owner of an amusement device an additional annual license fee of $500 for each amusement device set up for the purpose of play to defray the costs incurred by the department in enforcing this subsection, but the department may not charge any one person under this subdivision more than a total of $10,000 in license fees in any one year, regardless of the number of amusement devices that the person intends to set up for the purpose of play in this state. The person shall pay this fee directly to the department.

AB1-ASA1-AA33,6,23 3. Any license issued under this subsection shall remain in effect for one year.

AB1-ASA1-AA33,7,2 (j) The certificate of registration issued under par. (d) shall remain in effect unless it is canceled by the department, after consulting with the department of justice, or unless it is withdrawn by the person who is issued the certificate of registration.

AB1-ASA1-AA33,7,5 (k) Every person registered under this section shall notify the department of any change in the information provided under par. (b) by the 10th day of the first month following the change in information.

AB1-ASA1-AA33,7,7 (L) The department shall deposit all moneys received by the department under this subsection in the appropriation account under s. 20.505 (8) (j).

AB1-ASA1-AA33,7,10 (4) Prohibited practices relating to amusement devices. (a) No person may keep more than 5 amusement devices at any one premises operated under a Class "B" license or a "Class B" license under ch. 125.

AB1-ASA1-AA33,7,15 (b) No person may play, or permit another person to play, an amusement device at a premises operated under a Class "B" or "Class B" license in a city or village during hours in which the premises is closed or the sale of fermented malt beverages or intoxicating liquor is prohibited under s. 125.32 (3) (a) or (c) or 125.68 (4) (c) 1., 3m., or 4.

AB1-ASA1-AA33,7,22 (c) No owner of a premises may set up for the purpose of play an amusement device at his or her premises unless he or she has entered into a written agreement with a person who owns the amusement device for the use of that amusement device at his or her premises and a copy of the agreement is kept on the premises and made available for inspection to any person authorized by the department. This paragraph shall not apply to an owner of a premises who is also the owner of every amusement device kept at his or her premises.

AB1-ASA1-AA33,7,25 (d) No person may engage in the advertising of any amusement device set up for the purpose of play or offer, or allow to be offered, to any other person any special inducement for playing an amusement device.

AB1-ASA1-AA33,8,3 (e) No person registered under sub. (3) may purchase an amusement device from a person other than a person registered under sub. (3) or a distributor registered under sub. (5) (c).

AB1-ASA1-AA33,8,6 (f) No person registered under sub. (3) may set up for the purpose of play any amusement device that has a percentage of credits awarded to credits played of not less than 83%.

AB1-ASA1-AA33,8,9 (5) Manufacturers and distributors of amusement devices; registration and fees. (a) No person who is a manufacturer of amusement devices may do any of the following:

AB1-ASA1-AA33,8,13 1. Do any business in this state related to amusement devices unless the person submits an application for registration with the department under par. (c), pays the first year's annual license fee and the nonrefundable fee set by the department to cover all costs of processing the application, and is issued a manufacturer's license.

AB1-ASA1-AA33,8,16 2. Sell an amusement device to any person other than a distributor of amusement devices with a valid distributor's license issued by the department under par. (c).

AB1-ASA1-AA33,8,18 3. Hold or control, either directly or indirectly, any ownership interest of a distributor with a valid distributor's license issued by the department under par. (c).

AB1-ASA1-AA33,8,19 4. Set up for the purpose of play any amusement device.

AB1-ASA1-AA33,8,21 (b) No person who is a distributor of amusement devices may do any of the following:

AB1-ASA1-AA33,9,2 1. Sell, repair, distribute, warehouse, transport, display, or market an amusement device unless the person submits an application for registration with the department under par. (c), pays the first year's annual license fee and the nonrefundable fee set by the department to cover all costs of processing the application, and is issued a distributor's license.

AB1-ASA1-AA33,9,3 2. Set up for the purpose of play any amusement device.

AB1-ASA1-AA33,9,5 3. Sell an amusement device to any person other than a person registered with the department under sub. (3).

AB1-ASA1-AA33,9,7 4. Hold or control, either directly or indirectly, any ownership interest of a person registered under sub. (3).

AB1-ASA1-AA33,9,8 (c) The department shall do all of the following:

AB1-ASA1-AA33,9,17 1. Upon receipt of an application of registration from a person under par. (a) or (b), submission of the first year's license fee, and payment of a nonrefundable fee set by the department to cover all costs of processing the application, issue a manufacturer's license to each applicant under par. (a) and a distributor's license to each applicant under par. (b) who has met the requirements specified under sub. (3) (b) 1. and (g) for a person applying for a certificate of registration under sub. (3) and the requirements of this subsection. The license shall remain in effect unless it is canceled by the department, after consulting with the department of justice, or unless it is withdrawn by the person who is issued the license.

AB1-ASA1-AA33,9,20 2. Charge an annual fee for a manufacturer's license and distributor's license in the amount of $10,000, payable directly to the department. The license shall remain in effect for one year.

AB1-ASA1-AA33,9,23 3. Upon denial of an application under subd. 1., immediately notify the person in writing and state the reasons for the denial. A denial of an application under subd. 1. shall be subject to review under ch. 227.

AB1-ASA1-AA33,9,25 4. Deposit all moneys received by the department under this subsection in the appropriation account under s. 20.505 (8) (j).

AB1-ASA1-AA33,10,2 (6) Rule making. The department shall promulgate all rules necessary to administer this section.

AB1-ASA1-AA33,10,6 (7) Conflicts of interest. No employee of the department and no member of the employee's immediate family, as defined in s. 19.42 (7), may, while that employee is employed by the department or for 2 years following the termination of employment, do any of the following:

AB1-ASA1-AA33,10,8 (a) Have any direct or indirect interest in any person who is registered or required to be registered under sub. (3) or (5).

AB1-ASA1-AA33,10,10 (b) Accept or agree to accept money or any thing of value from any person who is registered or required to be registered under sub. (3) or (5).

AB1-ASA1-AA33,10,12 (c) Directly or indirectly own or operate any amusement device licensed under sub. (3).

AB1-ASA1-AA33,10,17 (8) Investigation and enforcement. (a) In response to a written complaint, the department shall conduct an investigation of any person registered under sub. (3) or (5). The department may, at any time, conduct an inspection of a person registered under sub. (3) or (5), of the amusement device licensed to the person, or of the premises on which the amusement device is played.

AB1-ASA1-AA33,10,23 (b) The department may conduct an investigation to determine if a person markets, leases, services, repairs, warehouses, transports, or sets up for the purposes of play an amusement device or collects the proceeds of an amusement device which is set up for the purposes of play without being registered under sub. (3) or if a person sells, repairs, distributes, warehouses, displays, or markets an amusement device without being registered under sub. (5).

AB1-ASA1-AA33,11,2 (c) An action for violation of this section may be prosecuted in any circuit court of this state by the department in the name of the state and, in any such action, the department shall exercise all of the powers and perform all duties that the district attorney would otherwise be authorized to exercise or perform.