Amendment ASA3-AB144

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB144-ASA3, s. 1 Section 1. 14.035 of the statutes is renumbered 14.035 (1) and amended to read:

AB144-ASA3,2,2 14.035 (1) The Subject to subs. (2) to (5), the governor may, on behalf of this state, enter into any compact that has been negotiated under 25 USC 2710 (d).

AB144-ASA3, s. 2 Section 2. 14.035 (2) of the statutes is created to read:

AB144-ASA3,2,10 14.035 (2) The governor may not enter into, amend, extend, or renew any compact negotiated under sub. (1) that authorizes a gaming establishment on lands acquired by the U.S. secretary of the interior in trust for the benefit of an Indian tribe after October 17, 1988, until the governor submits the compact to the legislature and the legislature approves the proposed compact by joint resolution. If the legislature does not approve without change the proposed compact, the compact shall be returned to the governor for renegotiation.

AB144-ASA3, s. 3 Section 3. 14.035 (3) of the statutes is created to read:

AB144-ASA3,2,17 14.035 (3) The governor may not enter into, amend, extend, or renew any compact negotiated under sub. (1) that is for a period longer than 15 years until the governor submits the compact to the legislature and the legislature approves the proposed compact by joint resolution. If the legislature does not approve without change the proposed compact, the compact shall be returned to the governor for renegotiation.

AB144-ASA3, s. 4 Section 4. 14.035 (4) of the statutes is created to read:

AB144-ASA3,2,22 14.035 (4) The governor may not enter into, amend, extend, or renew any compact negotiated under sub. (1) containing terms that in any way condition which gaming activities may be conducted under the compact based on gaming activities that are conducted in Canada.

AB144-ASA3, s. 5 Section 5. 14.035 (5) of the statutes is created to read:

AB144-ASA3,3,6 14.035 (5) The governor may not enter into, amend, extend, or renew any compact negotiated under sub. (1) unless that compact or its amendment requires the American Indian tribe or band to make a good faith effort to enter into an agreement with each local unit of government that provides services relating to the operation of gaming establishments authorized under the compact and that agreement specifies that the tribe or band shall reimburse the local unit of government for costs incurred by the local unit of government in providing such services.

AB144-ASA3, s. 6 Section 6. 20.566 (8) (g) of the statutes is created to read:

AB144-ASA3,3,11 20.566 (8) (g) Licensing and regulation of amusement devices. All moneys received under s. 565.08 (1) (c), to pay the costs incurred by the department of revenue in issuing licenses and regulating the operation of amusement devices under s. 565.08.

AB144-ASA3, s. 7 Section 7. 20.566 (8) (t) of the statutes is created to read:

AB144-ASA3,3,14 20.566 (8) (t) Payment to municipalities. From the lottery fund, a sum sufficient to make the payments under s. 79.037.

AB144-ASA3, s. 8 Section 8. 25.75 (1) (b) of the statutes is amended to read:

AB144-ASA3,3,22 25.75 (1) (b) "Gross lottery revenues" means gross revenues from the sale of lottery tickets and lottery shares under ch. 565, adjusted gross revenues received by the state under s. 565.08 (1) (g), and revenues from the imposition of fees, if any, under s. 565.10 (8) and includes compensation, including bonuses, if any, paid to retailers under s. 565.10 (14), regardless of whether the compensation is deducted by the retailer prior to transmitting lottery ticket and lottery share revenues to the commission.

AB144-ASA3, s. 9 Section 9. 77.51 (4) (c) 1m. of the statutes is created to read:

AB144-ASA3,3,24 77.51 (4) (c) 1m. Adjusted gross receipts, as defined in s. 565.01 (1c).

AB144-ASA3, s. 10 Section 10. 77.51 (15) (c) 1m. of the statutes is created to read:

AB144-ASA3,4,1 77.51 (15) (c) 1m. Adjusted gross receipts, as defined in s. 565.01 (1c).

AB144-ASA3, s. 11 Section 11. 79.035 (1) of the statutes is amended to read:

AB144-ASA3,4,5 79.035 (1) Subject to reductions under s. ss. 79.036 (3) and 79.037, in 2004 and subsequent years, each county and municipality shall receive a payment from the county and municipal aid account in an amount determined under sub. (2).

AB144-ASA3, s. 12 Section 12. 79.037 of the statutes is created to read:

AB144-ASA3,4,17 79.037 Adjusted gross receipts. Beginning with the distribution in 2004, the department of revenue shall reduce the payment from the county and municipal aid account under s. 79.035 to each municipality in which the state collects adjusted gross receipts, as defined in s. 565.01 (1c), by an amount equal to the adjusted gross receipts, as defined in s. 565.01 (1c), that the state collected in the municipality in the fiscal year preceding the fiscal year of the payment under s. 79.035 and shall pay each such municipality from the appropriation under s. 20.566 (8) (t) an amount, to be used solely for the purpose of reducing the property tax levy in the municipality, equal to the adjusted gross receipts, as defined in s. 565.01 (1c), that the state collected in the municipality in the fiscal year preceding the fiscal year of the payment under s. 79.035.

AB144-ASA3, s. 13 Section 13. 125.12 (1) (a) of the statutes is amended to read:

AB144-ASA3,4,21 125.12 (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.

AB144-ASA3, s. 14 Section 14. 565.01 (1) of the statutes is renumbered 565.01 (1dm).

AB144-ASA3, s. 15 Section 15. 565.01 (1c) of the statutes is created to read:

AB144-ASA3,5,2 565.01 (1c) "Adjusted gross receipts" means the total amount paid by cash or check to a person licensed under s. 565.08 (1) (a) for the play of amusement devices licensed under s. 565.08 less the total amount paid by cash or check to the players of the amusement devices for the play of the amusement devices.

AB144-ASA3, s. 16 Section 16. 565.01 (1g) of the statutes is created to read:

AB144-ASA3,5,11 565.01 (1g) "Amusement device" means, before July 1, 2005, 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. Beginning on July 1, 2005, "amusement device" means any on-line 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.

AB144-ASA3, s. 17 Section 17. 565.01 (4g) of the statutes is amended to read:

AB144-ASA3,5,18 565.01 (4g) "On-line services and supplies" means those lottery products and associated services, including computerized transaction processing equipment, computerized retailer vending terminals, and those technologies necessary to maximize lottery revenues and minimize the lottery's total operating costs. The term does not include services related to instant lottery ticket services or the playing of amusement devices licensed under s. 565.08.

AB144-ASA3, s. 18 Section 18. 565.01 (4r) (intro.) of the statutes is amended to read:

AB144-ASA3,5,24 565.01 (4r) (intro.) "Promotional advertising" means advertising which is for the purpose of inducing persons to purchase lottery tickets or lottery shares or play amusement devices licensed under s. 565.08. "Promotional advertising" does not mean advertising which is designed to provide the public with information on any of the following:

AB144-ASA3, s. 19 Section 19. 565.01 (6c) of the statutes is created to read:

AB144-ASA3,6,3 565.01 (6c) "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 licensed under s. 565.08.

AB144-ASA3, s. 20 Section 20. 565.01 (6m) (a) (intro.) of the statutes is renumbered 565.01 (6m) (intro.) and amended to read:

AB144-ASA3,6,6 565.01 (6m) (intro.) "The state lottery" means an all of the following:

AB144-ASA3,6,9 (a) An enterprise, including a multijurisdictional lottery in which the state participates, in which the player, by purchasing a ticket, is entitled to participate in a game of chance in which any of the following applies:

AB144-ASA3, s. 21 Section 21. 565.01 (6m) (b) and (c) of the statutes are repealed.

AB144-ASA3, s. 22 Section 22. 565.01 (6m) (bm) of the statutes is created to read:

AB144-ASA3,6,13 565.01 (6m) (bm) The play and operation of an amusement device licensed under s. 565.08.

AB144-ASA3, s. 23 Section 23. 565.015 of the statutes is repealed.

AB144-ASA3, s. 24 Section 24. 565.02 (7) of the statutes is amended to read:

AB144-ASA3,7,9 565.02 (7) Not later than March 1 of each year, the 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 lottery ticket and share prizes and the lottery ticket and share prize payout ratio for each type of lottery game offered, and an evaluation of the effect of lottery ticket and share prize payout ratios of lottery games on lottery sales, lottery operating costs and on maximizing the revenue available for the lottery and gaming 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 department that the committee has scheduled a meeting for the purpose of reviewing the department's proposed lottery ticket and share prize payouts, the department may proceed with its plans for the lottery ticket and share 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 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 department's proposed lottery ticket and share prize payouts, the department's plans for the lottery ticket and share prize payouts for the subsequent fiscal year are considered approved by the committee.

AB144-ASA3, s. 25 Section 25. 565.08 of the statutes is created to read:

AB144-ASA3,7,13 565.08 Licensing and regulation of amusement devices. (1) The department shall license all amusement devices that are set up for the purpose of play in this state, subject to all of the following conditions:

AB144-ASA3,7,14 (a) An amusement device license may be issued only to the following:

AB144-ASA3,7,17 1. A person who has a Class "B" license under ch. 125 on the effective date of this subdivision .... [revisor inserts date], or a person to whom such a Class "B" license has been transferred under s. 125.04 (12) (b).

AB144-ASA3,7,18 2. A person who has a "Class B" license under ch. 125.

AB144-ASA3,7,20 3. A person who held a license on January 1, 2003, that was issued under s. 562.05 (1).

AB144-ASA3,7,23 (b) An amusement device that is set up for the purpose of play may be played only at a racetrack at which pari-mutuel wagering was conducted on January 1, 2003, or at a premises issued a Class "B" or "Class B" license under ch. 125.

AB144-ASA3,7,25 (c) The owner of the amusement device shall be charged an annual license fee of $100 for each amusement device that is set up for the purpose of play.

AB144-ASA3,8,3 (d) 1. No more than 5 amusement devices may be set up for the purpose of play at any one premises operated under a Class "B" license or a "Class B" license issued under ch. 125.

AB144-ASA3,8,6 2. No more than 5 amusement devices per 1,000 square feet of space may be set up for the purpose of play at any racetrack at which pari-mutuel wagering was conducted on January 1, 2003, as such space existed on January 1, 2003.

AB144-ASA3,8,8 (e) No one person may manufacture or distribute all of the amusement devices that are set up for the purpose of play.

AB144-ASA3,8,13 (f) 1. Except as provided in subd. 2., any amusement device set up for the purpose of play shall 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.

AB144-ASA3,8,17 2. In calculating the percentage of credits awarded to credits played for an amusement device under subd. 1., the department 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.

AB144-ASA3,8,21 (g) The adjusted gross receipts, less any amount paid as sales or use taxes from the play of an amusement device, shall be equally divided between the state, for deposit in the lottery fund, and the holder of the license under par. (a) for the premises or racetrack at which the amusement device is located.

AB144-ASA3,9,2 (2) If the department attempts to verify the percentage of credits awarded to credits played of an amusement device under sub. (1) (f) and the owner of the premises or racetrack at which the amusement device is located fails, or is unable, to assist the department, with the result that the department cannot verify the percentage of credits awarded to credits played, the department shall do the following:

AB144-ASA3,9,5 (a) For the first offense, issue a warning to the owner, and the owner shall immediately assist the department in verifying the percentage of credits awarded to credits played of the amusement device.

AB144-ASA3,9,7 (b) For the 2nd offense, suspend for 30 days the license issued under sub. (1) (a) for that premises or racetrack.

AB144-ASA3,9,9 (c) For the 3rd offense, permanently revoke the license issued under sub. (1) (a) for that premises or racetrack.

AB144-ASA3, s. 26 Section 26. 565.27 (1) (intro.) of the statutes is amended to read:

AB144-ASA3,9,16 565.27 (1) Game features and procedures. (intro.) Subject to this section, the rules promulgated under s. 565.02 (3) (d) and (4) (a) and approval by the secretary of revenue, the administrator shall determine the particular features of and procedures for each lottery game offered other than games played on amusement devices licensed under s. 565.08. The features and procedures shall be in writing, shall be accessible to the public and shall include all of the following:

AB144-ASA3, s. 27 Section 27. 565.30 (title) of the statutes is amended to read:

AB144-ASA3,9,18 565.30 (title) Lottery ticket and share prizes.

AB144-ASA3, s. 28 Section 28. 565.30 (8) of the statutes is created to read:

AB144-ASA3,9,22 565.30 (8) Applicability. This section applies only to prizes paid to the holder of a winning lottery ticket or share and not to prizes paid from an amusement device licensed under s. 565.08.

AB144-ASA3, s. 29 Section 29. 945.01 (1) (dm) of the statutes is created to read:

AB144-ASA3,9,25 945.01 (1) (dm) Playing an amusement device, as defined in s. 565.01 (1g), that is licensed as described in s. 565.08.

AB144-ASA3, s. 30 Section 30. 945.01 (3) (a) of the statutes is amended to read:

AB144-ASA3,10,5 945.01 (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.

AB144-ASA3, s. 31 Section 31. 945.01 (3) (b) 1m. of the statutes is created to read:

AB144-ASA3,10,8 945.01 (3) (b) 1m. An amusement device, as defined in s. 565.01 (1g), that is licensed as described in s. 565.08.

AB144-ASA3, s. 32 Section 32. 945.01 (4) (am) of the statutes is renumbered 945.01 (4) (am) (intro.) and amended to read:

AB144-ASA3,10,12 945.01 (4) (am) (intro.) "Gambling place" does not include a any of the following:

AB144-ASA3,10,13 1. A place where bingo or a raffle is conducted under ch. 563,.

AB144-ASA3,10,14 2. A place where a lottery is conducted under ch. 565 or.

AB144-ASA3,10,15 3. A place where a race is conducted under ch. 562 and does not include a.

AB144-ASA3,10,17 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.

AB144-ASA3, s. 33 Section 33. 945.01 (4) (am) 5. of the statutes is created to read:

AB144-ASA3,10,20 945.01 (4) (am) 5. A premises on which is located an amusement device, as defined in s. 565.01 (1g), that is licensed as described in s. 565.08.

AB144-ASA3, s. 34 Section 34. 945.01 (5) (am) of the statutes is amended to read:

AB144-ASA3,10,25 945.01 (5) (am) "Lottery" does not include bingo or a raffle conducted under ch. 563,; the playing of an amusement device, as defined in s. 565.01 (1g), that is licensed as described in s. 565.08; pari-mutuel wagering conducted under ch. 562; or the state lottery or any multijurisdictional lottery conducted under ch. 565.

AB144-ASA3, s. 35 Section 35. 945.041 (1) of the statutes is amended to read:

AB144-ASA3,11,14 945.041 (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. 565.01 (1g), that is not licensed as described under s. 565.08, 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.