AB774: Bill Text

AB774,6,22 (1) Advise the board on policy making and rule making relating to the conduct of bingo and raffles under ch. 563.

AB774,6,24 (2) Under the direction of the board, administer the requirements under ch. 563.

AB774, s. 13 Section 13. Chapter 564 (title) of the statutes is amended to read:

AB774,7,1 CHAPTER 564

AB774,7,3 CRANE GAMES and amusement devices

AB774, s. 14 Section 14. 564.02 (1) (ag) of the statutes is created to read:

AB774,7,5 564.02 (1) (ag) "Department" means the department of revenue.

AB774, s. 15 Section 15. 564.02 (2) (a) of the statutes is repealed and recreated to read:

AB774,7,11 564.02 (2) (a) No person in this state who owns a crane game may set up for the purposes of play, permit a crane game to be set up for the purposes of play or collect the proceeds of a crane game which is set up for the purposes of play unless the person is registered by the department and unless an identification number issued by the department is affixed to each such crane game owned by the person.

AB774, s. 16 Section 16. 564.02 (2) (b) (intro.) of the statutes is repealed and recreated to read:

AB774,7,16 564.02 (2) (b) (intro.) Every person specified under par. (a) shall file with the department, on application forms prescribed by the department and signed by the person, all of the following information:

AB774, s. 17 Section 17. 564.02 (2) (d) of the statutes is repealed and recreated to read:

AB774,7,21 564.02 (2) (d) Upon receipt of the application and fee under pars. (b) and (c), the department shall, if the department considers the applicant qualified, issue a certificate of registration for the applicant and an identification number for each crane game for which registration is requested.

AB774, s. 18 Section 18. 564.02 (2) (e) of the statutes is repealed and recreated to read:

AB774,7,25 564.02 (2) (e) The registration issued under par. (d) shall remain in effect unless it is canceled by the department of revenue with the advice and consent of the department of justice or unless it is withdrawn by the registered person.

AB774, s. 19 Section 19. 564.02 (2) (f) of the statutes is repealed and recreated to read:

AB774,8,4 564.02 (2) (f) Every person registered under this section shall notify the department of any change in the information required to be furnished by the person under par. (b), within 10 days following the change.

AB774, s. 20 Section 20. 564.02 (2) (g) of the statutes, as affected by 1995 Wisconsin Act 27, is repealed and recreated to read:

AB774,8,8 564.02 (2) (g) The department shall deposit all moneys received by the department under this subsection in the appropriation under s. 20.566 (9) (j).

AB774, s. 21 Section 21. 564.02 (2m) (intro.) of the statutes is repealed and recreated to read:

AB774,8,14 564.02 (2m) Conflicts of interest. (intro.) No department employe and no member of a department employe's immediate family, as defined in s. 19.42 (7), may, while that employe is a department employe or for 2 years following the termination of the employment of that department employe, do any of the following:

AB774, s. 22 Section 22. 564.02 (3) (c) of the statutes is repealed and recreated to read:

AB774,8,17 564.02 (3) (c) The department of revenue shall reimburse the department of justice for the services of the department of justice under this subsection.

AB774, s. 23 Section 23. 564.02 (4) of the statutes is repealed and recreated to read:

AB774,8,24 564.02 (4) Seizure and sale. The department of justice may seize any crane game owned by a person who is convicted under sub. (5) and may sell the crane game in the name of the state. The department of justice and its agents are exempt from all liability to the owner of the crane game for the seizure or sale of the crane game. The department of revenue shall reimburse the department of justice for the services of the department of justice under this subsection.

AB774, s. 24 Section 24. 564.03 of the statutes is created to read:

AB774,9,2 564.03 Offering amusement devices for play; registration and licensing. (1) Definitions. In this section:

AB774,9,7 (a) "Amusement device" means any video amusement device if it 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. An amusement device set up for the purpose of play shall have a percentage of credits awarded to credits played of not less than 83%.

AB774,9,8 (am) "Department" means the department of revenue.

AB774,9,10 (b) "Set up for the purpose of play" means offer a person, for consideration, an opportunity to play an amusement device.

AB774,9,13 (1m) Department authority; local option. (a) Subject to pars. (b) and (c), the department, on behalf of all towns, cities and villages, shall license and regulate amusement devices in the manner provided in this section.

AB774,9,19 (b) Electors of any town, city or village may determine, by ballot at the election held on the first Tuesday in April, the question of whether amusement devices shall be prohibited in the town, city or village. If the electors of any town, city or village determine that amusement devices shall be prohibited in the town, city or village, the department may not license any amusement device for the purpose of play in the town, city or village.

AB774,9,25 (c) The department may not license any amusement device for the purpose of play in a town, city or village that, before the effective date of this paragraph .... [revisor inserts date], enacted an ordinance that prohibited in the town, city or village the play of any amusement device, unless that town, city or village, on or after the effective date of this paragraph .... [revisor inserts date], enacts a subsequent ordinance authorizing the play of any amusement device in the town, city or village.

AB774,10,8 (2) 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.

AB774,10,13 (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:

AB774,10,18 1. The name and address of the person. If the person is a corporation or other 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 entity.

AB774,10,20 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.

AB774,10,22 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.

AB774,10,24 4. The location of the premises at which the amusement devices shall be set up for the purpose of play.

AB774,11,4 (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.

AB774,11,8 (d) Upon receipt of the application under par. (b) and the fees specified under par. (c), but subject to pars. (e) to (f), 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.

AB774,11,13 (e) The department may not issue a certificate of registration under this subsection to any person who is a corporation or other entity unless at least 51% of the ownership in that corporation or other 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.

AB774,11,17 (em) 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 town, city or village other than a premises issued a Class "B" license under s. 125.26 or a "Class B" license under s. 125.51.

AB774,11,20 (f) 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:

AB774,11,22 1. The person has been convicted of a misdemeanor, not involving chs. 340 to 349, at least 3 times.

AB774,11,23 2. The person has been convicted of a felony, unless pardoned.

AB774,11,24 3. The person is addicted to the use of a controlled substance under ch. 161.

AB774,11,25 4. The person has been convicted of 2 or more gambling offenses.

AB774,12,1 5. The person has been convicted of crimes relating to prostitution.

AB774,12,3 6. The person has been convicted of crimes relating to loaning money or anything of value to persons holding licenses or permits pursuant to ch. 125.

AB774,12,4 7. The person does not hold a permit under s. 77.52 (7), if the person is a retailer.

AB774,12,9 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).

AB774,12,13 (g) 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.

AB774,12,16 (h) 1. The department shall charge, on behalf of a town, city or village, 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 town, city or village.

AB774,12,22 2. The department shall charge 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.

AB774,12,23 3. Any license issued under this subsection shall remain in effect for one year.

AB774,13,2 (i) The certificate of registration issued under par. (d) shall remain in effect unless it is canceled by the department of revenue, after consulting with the department of justice, or unless it is withdrawn by the person who is issued the certificate of registration.

AB774,13,5 (j) 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.

AB774,13,8 (k) The department may not permit any amusement device located at one premises to be in any way linked to another amusement device located at another premises for the purpose of creating a progressive prize.

AB774,13,10 (L) The department shall deposit all moneys received under this subsection in the appropriation account under s. 20.566 (9) (j).

AB774,13,13 (3) 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 under s. 125.26 or a "Class B" license under s. 125.51.

AB774,13,18 (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 town, 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. or 4.

AB774,13,25 (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.

AB774,14,3 (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.

AB774,14,6 (e) No person registered under sub. (2) may purchase an amusement device from a person other than a person registered under sub. (2) or a distributor registered under sub. (4) (c).

AB774,14,8 (f) No person may play an amusement device if the person is under 21 years of age.

AB774,14,10 (g) No person may set up for the purpose of play an amusement device that permits more than one person to play the amusement device at the same time.

AB774,14,13 (4) 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:

AB774,14,17 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.

AB774,14,20 2. Sell an amusement device to any person other than a distributor of amusement devices with a valid distributor's license issued by the commission under par. (c).

AB774,14,22 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).

AB774,14,23 4. Set up for the purpose of play any amusement device.

AB774,14,25 (b) No person who is a distributor of amusement devices may do any of the following:

AB774,15,5 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.

AB774,15,6 2. Set up for the purpose of play any amusement device.

AB774,15,8 3. Sell an amusement device to any person other than a person registered with the department under sub. (2).

AB774,15,10 4. Hold or control, either directly or indirectly, any ownership interest of a person registered under sub. (2).

AB774,15,11 (c) The department shall do all of the following:

AB774,15,20 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. (2) (b) 1. and (f) for a person applying for a certificate of registration under sub. (2) and the requirements of this subsection. The license shall remain in effect unless it is canceled by the department of revenue, after consulting with the department of justice, or unless it is withdrawn by the person who is issued the license.

AB774,15,22 2. Charge an annual fee for a manufacturer's license and distributor's license in the amount of $10,000. The license shall remain in effect for one year.

AB774,15,25 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.

AB774,16,2 4. Deposit all moneys received under this subsection in the appropriation account under s. 20.566 (9) (j).

AB774,16,4 (4m) Rule making. (a) The department shall promulgate all rules necessary to administer this section.

AB774,16,9 (b) The department may provide by rule that an amusement device set up for the purpose of play may have a percentage of credits awarded to credits played that is equal to the minimum percentage for a similar amusement device under a compact entered into under s. 14.035, but only if the percentage is equal to or greater than 83%.

AB774,16,13 (5) Conflicts of interest. No department employe and no department employe's immediate family, as defined in s. 19.42 (7), may, while that employe is a department employe or for 2 years following the termination of the employment of that department employe, do any of the following:

AB774,16,15 (a) Have any direct or indirect interest in any person who is registered or required to be registered under sub. (2) or (4).

AB774,16,17 (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. (2) or (4).

AB774,16,19 (c) Directly or indirectly own or operate any amusement device licensed under sub. (2).

AB774,16,24 (6) Investigation and enforcement. (a) In response to a written complaint, the department shall conduct an investigation of any person registered under sub. (2) or (4). The department may conduct an inspection of a person registered under sub. (2) or (4), of the amusement device licensed to the person or of the premises on which the amusement device is played, at any time.