Amendment JR3 AA1-SB1

LRBb0034/1

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January 2003 Special Session

2003 - 2004 LEGISLATURE

ASSEMBLY AMENDMENT 1, TO SENATE BILL 1

February 20, 2003 - Offered by Representatives Boyle, Sherman, Young, Gronemus, Plale, Balow, Sinicki, Vruwink, Travis, Zepnick, Suder, Turner, Hubler and Colon.

SB1-AA1,1,2 At the locations indicated, amend the bill, as shown by senate substitute amendment 1, as follows:

SB1-AA1,1,4 1. Page 1, line 5: after "prisons;" insert "and licensing and regulation of amusement devices by cities, villages, and towns;".

SB1-AA1,1,5 2. Page 1, line 12: before that line insert:

SB1-AA1,1,6 " Section 2b. 66.0424 of the statutes is created to read:

SB1-AA1,1,8 66.0424 Licensing and regulation of amusement devices. (1) In this section:

SB1-AA1,1,12 (a) "Adjusted gross receipts" means the total amount paid by cash or check to a Class "B" licensee or a "Class B" licensee under ch. 125 for the play of amusement devices less the total amount paid by cash or check to the players of the amusement devices for the play of the amusement devices.

SB1-AA1,2,4 (b) "Amusement device" means any video device that awards or is capable of awarding a 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.

SB1-AA1,2,6 (c) "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.

SB1-AA1,2,10 (2) Any city or village, acting under its power to determine its local affairs under article XI, section 3 (1), of the constitution, or any town that permits amusement devices to be set up for the purpose of play within its jurisdiction shall do all of the following:

SB1-AA1,2,12 (a) Require that amusement devices be played only at a premises issued a Class "B" license or a "Class B" license under ch. 125.

SB1-AA1,2,14 (b) Charge the owner of the amusement device an annual license fee of $100 for each amusement device set up for the purpose of play.

SB1-AA1,2,16 (c) Prohibit more than 5 amusement devices at any one premises operated under a Class "B" license or a "Class B" license issued under ch. 125.

SB1-AA1,2,21 (d) 1. Except as provided in subd. 2., require that any amusement device set up for the purpose of play have a percentage of credits awarded to credits played that is not less than the average percentage required under all unexpired Indian gaming compacts entered into under s. 14.035. In this subdivision, "average" means the arithmetic mean.

SB1-AA1,2,25 2. In calculating the percentage of credits awarded to credits played for an amusement device under subd. 1., the city, village, or town shall reduce the percentage by a percentage that produces an amount equal to the amount of any sales or use taxes generated from the play of the amusement device.

SB1-AA1,3,5 (e) Require that the adjusted gross receipts, less any amount paid as sales or use taxes from the play of an amusement device, be equally divided between the holder of the Class "B" license or "Class B" license issued under ch. 125 for the premises at which the amusement device is located, and the city, village, or town in which the premises is located.

SB1-AA1,3,12 (3) Beginning in 2005, any city, village, or town that does not permit amusement devices to be set up for the purpose of play shall have its next scheduled payment under s. 79.03 reduced by an amount equal to $5,000 multiplied by the number of premises located within its jurisdiction that are issued a Class "B" license or a "Class B" license under ch. 125. The reduction in payment shall continue for each year in which the city, village, or town does not permit amusement devices to be set up for the purpose of play.

SB1-AA1, s. 2c Section 2c. 77.51 (4) (c) 1m. of the statutes is created to read:

SB1-AA1,3,14 77.51 (4) (c) 1m. Adjusted gross receipts, as defined in s. 66.0424 (1) (a).

SB1-AA1, s. 2d Section 2d. 77.51 (15) (c) 1m. of the statutes is created to read:

SB1-AA1,3,16 77.51 (15) (c) 1m. Adjusted gross receipts, as defined in s. 66.0424 (1) (a).

SB1-AA1, s. 2e Section 2e. 125.12 (1) (a) of the statutes is amended to read:

SB1-AA1,3,20 125.12 (1) (a) Except as provided in this subsection and 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.

SB1-AA1, s. 2f Section 2f. 125.12 (1) (c) of the statutes is amended to read:

SB1-AA1,3,25 125.12 (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.

SB1-AA1, s. 2g Section 2g. 945.01 (1) (dm) of the statutes is created to read:

SB1-AA1,4,3 945.01 (1) (dm) Playing an amusement device, as defined in s. 66.0424 (1) (b), that is licensed as described in s. 66.0424 (2) (b).

SB1-AA1, s. 2h Section 2h. 945.01 (3) (a) of the statutes is amended to read:

SB1-AA1,4,8 945.01 (3) (a) A Subject to par. (b), a gambling machine is a contrivance which for a consideration affords the player an opportunity to obtain something of value, the award of which is determined by chance, even though accompanied by some skill and whether or not the prize is automatically paid by the machine.

SB1-AA1, s. 2i Section 2i. 945.01 (3) (b) 1m. of the statutes is created to read:

SB1-AA1,4,11 945.01 (3) (b) 1m. An amusement device, as defined in s. 66.0424 (1) (b), that is licensed as described in s. 66.0424 (2) (b).

SB1-AA1, s. 2k Section 2k. 945.01 (4) (am) of the statutes is renumbered 945.01 (4) (am) (intro.) and amended to read:

SB1-AA1,4,15 945.01 (4) (am) (intro.) "Gambling place" does not include a any of the following:

SB1-AA1,4,16 1. A place where bingo or a raffle is conducted under ch. 563,.

SB1-AA1,4,17 2. A place where a lottery is conducted under ch. 565 or.

SB1-AA1,4,18 3. A place where a race is conducted under ch. 562 and does not include a.

SB1-AA1,4,20 4. A gambling vessel that is in the process of construction, delivery, conversion, or repair by a shipbuilding business that complies with s. 945.095.

SB1-AA1, s. 2m Section 2m. 945.01 (4) (am) 5. of the statutes is created to read:

SB1-AA1,4,23 945.01 (4) (am) 5. A premises on which is located an amusement device, as defined in s. 66.0424 (1) (b), that is licensed as described in s. 66.0424 (2) (b).

SB1-AA1, s. 2n Section 2n. 945.01 (5) (am) of the statutes is amended to read:

SB1-AA1,5,4 945.01 (5) (am) "Lottery" does not include bingo or a raffle conducted under ch. 563,; the playing of an amusement device, as defined in s. 66.0424 (1) (b), that is licensed as described in s. 66.0424 (2) (b); pari-mutuel wagering conducted under ch. 562; or the state lottery or any multijurisdictional lottery conducted under ch. 565.

SB1-AA1, s. 2p Section 2p. 945.03 (1m) of the statutes, as affected by 2001 Wisconsin Act 109, is renumbered 945.03, and 945.03 (intro.), as renumbered, is amended to read:

SB1-AA1,5,9 945.03 Commercial gambling. (intro.) Whoever intentionally does any of the following is engaged in commercial gambling and, except as provided in sub. (2m), is guilty of a Class I felony:

SB1-AA1, s. 2q Section 2q. 945.03 (2m) of the statutes is repealed.

SB1-AA1, s. 2r Section 2r. 945.04 (1m) of the statutes is renumbered 945.04, and 945.04 (intro.), as renumbered, is amended to read:

SB1-AA1,5,15 945.04 Permitting premises to be used for commercial gambling. (intro.) Except as provided in sub. (2m), whoever Whoever intentionally does any of the following is guilty of a Class A misdemeanor:

SB1-AA1, s. 2s Section 2s. 945.04 (2m) of the statutes is repealed.

SB1-AA1, s. 2t Section 2t. 945.041 (1) of the statutes is amended to read:

SB1-AA1,6,6 945.041 (1) A license or permit issued under ch. 125 to any person who knowingly permits any slot machine, roulette wheel, other similar mechanical gambling device, or number jar or other device designed for like form of gambling, or any amusement device, as defined in s. 66.0424 (1) (b), that is not licensed as described under s. 66.0424 (2) (b), or any horse race betting or other bookmaking as defined in s. 945.01, or solicitation of drinks from customers under s. 944.36 to be set up, kept, managed, used, or conducted upon the licensed premises or in connection therewith upon premises controlled directly or indirectly by the person, shall be revoked by the circuit courts by a special proceeding as provided in this section. If a license or permit has been revoked, no other license or permit of any character provided for by ch. 125 may be issued to the person who held the license or permit, prior to the expiration of one year from the effective date of the revocation. If any appeal is taken from the revocation, any period during which the order is stayed shall be added to the one year.

SB1-AA1, s. 2u Section 2u. 945.041 (2) of the statutes is amended to read:

SB1-AA1,6,25 945.041 (2) Any sheriff, undersheriff, deputy sheriff, constable, or other municipal police officer or any person authorized to enforce the gambling laws under s. 165.60 shall within 10 days after acquiring such information report to the district attorney of the county the name and address of any licensee or permittee under ch. 125 who to his or her knowledge has knowingly suffered or permitted any gambling device in sub. (1), any amusement device, as defined in s. 66.0424 (1) (b), that is not licensed as described under s. 66.0424 (2) (b), or any horse race betting to be set up, kept, managed, used, or conducted upon the licensed premises or in connection therewith upon premises controlled directly or indirectly by such licensee or permittee. Such officer or person shall also report to the district attorney knowledge of the circumstances and the name of the municipality or officer by whom the license or permit has been issued. Any other person may in writing and signed by that person report any such name, address, and other information to the district attorney. Within 10 days after any report the district attorney shall institute a proceeding as hereinafter provided before the circuit court of the county or shall within such time report to the attorney general the reasons why such a proceeding has not been instituted. The attorney general may direct the department of justice or the district attorney to institute such proceeding within a reasonable time.

SB1-AA1, s. 2v Section 2v. 945.041 (3) of the statutes is amended to read:

SB1-AA1,8,7 945.041 (3) Such proceeding shall be in the name of the state and the issues may be determined by a jury. It shall be instituted by the filing of a petition and service of a notice as herein provided. The petition shall be directed to the circuit court and shall set forth a clear and concise statement of the grounds that are alleged to exist justifying a revocation of the license or permit under sub. (1), and shall request an order revoking such license or permit. It shall also request an injunction restraining the defendant from thereafter knowingly suffering or permitting any such gambling devices, any amusement device, as defined in s. 66.0424 (1) (b), that is not licensed as described under s. 66.0424 (2) (b), or any horse race betting to be set up, kept, managed, used, or conducted upon premises directly or indirectly controlled by the defendant. Upon the filing of such petition the court shall fix a time for hearing not to exceed 30 days from the date of filing at a place within the judicial circuit, and a copy of the petition and a notice of the time and place of hearing shall be served upon the defendant not less than 20 days prior to the date of hearing. Such service shall be made in the same manner as a summons is served in a civil action, except that it may also be made by leaving a copy of said petition and notice with any person charged with the operation of the licensed premises under s. 125.68 (2). The allegations of the petition shall be deemed controverted and shall be at issue without further pleading by the defendant. No hearing shall be adjourned except for cause. If upon such hearing the court finds that the allegations of the petition are true, it shall issue a written order revoking the license or permit and shall likewise enjoin the defendant from thereafter knowingly suffering or permitting any gambling devices referred to in sub. (1), any amusement device, as defined in s. 66.0424 (1) (b), that is not licensed as described under s. 66.0424 (2) (b), or any horse race betting to be set up, kept, managed, used, or conducted upon premises directly or indirectly controlled by the defendant. The district attorney shall forthwith cause a copy of the order to be filed with the issuing authority of the license or permit and shall cause a copy to be served upon the defendant as above provided or the defendant's attorney. The revocation and injunction shall become effective upon such service. In cases where a license is issued by a town, city, or village, a copy of the order shall also be filed with the department of revenue as provided under s. 125.13.

SB1-AA1, s. 2w Section 2w. 945.041 (11) of the statutes is repealed.

SB1-AA1, s. 2x Section 2x. 946.82 (4) of the statutes, as affected by 2001 Wisconsin Act 109, is amended to read:

SB1-AA1,8,24 946.82 (4) "Racketeering activity" means any activity specified in 18 USC 1961 (1) in effect as of April 27, 1982 or the attempt, conspiracy to commit, or commission of any of the felonies specified in: chs. 945 and 961 and ss. 49.49, 134.05, 139.44 (1), 180.0129, 181.0129, 185.825, 201.09 (2), 215.12, 221.0625, 221.0636, 221.0637, 221.1004, 551.41, 551.42, 551.43, 551.44, 553.41 (3) and (4), 553.52 (2), 940.01, 940.19 (4) to (6), 940.20, 940.201, 940.203, 940.21, 940.30, 940.305, 940.31, 941.20 (2) and (3), 941.26, 941.28, 941.298, 941.31, 941.32, 942.09, 943.01 (2), (2d), or (2g), 943.011, 943.012, 943.013, 943.02, 943.03, 943.04, 943.05, 943.06, 943.10, 943.20 (3) (bf) to (e), 943.201, 943.23 (1g), (2), and (3), 943.24 (2), 943.25, 943.27, 943.28, 943.30, 943.32, 943.34 (1) (bf), (bm), and (c), 943.38, 943.39, 943.40, 943.41 (8) (b) and (c), 943.50 (4) (bf), (bm), and (c), 943.60, 943.70, 943.76, 944.21 (5) (c) and (e), 944.32, 944.33 (2), 944.34, 945.03 (1m), 945.04 (1m), 945.05 (1), 945.08, 946.10, 946.11, 946.12, 946.13, 946.31, 946.32 (1), 946.48, 946.49, 946.61, 946.64, 946.65, 946.72, 946.76, 947.015, 948.05, 948.08, 948.12, and 948.30.".

SB1-AA1,9,1 3. Page 2, line 14: after that line insert:

SB1-AA1,9,3 "(3q) Advisory referendum. Section 565.015 of the statutes does not apply to the action of the legislature in enacting this act.".

SB1-AA1,9,4 4. Page 19, line 2: after that line insert:

SB1-AA1,9,5 " Section 9460. Effective dates; other.

SB1-AA1,9,9 (1q) The treatment of sections 66.0424, 77.51 (4) (c) 1m. and (15) (c) 1m., 125.12 (1) (a) and (c), 945.01 (1) (dm), (3) (a) and (b) 1m., (4) (am) (intro.) and 5., and (5) (am), 945.03 (1m) and (2m), 945.04 (1m) and (2m), 945.041 (1), (2), (3), and (11), and 946.82 (4) of the statutes takes effect on July 1, 2004.".

SB1-AA1,9,10 (End)