AB942, s. 12 6Section 12. 71.45 (2) (a) 15. of the statutes is created to read:
AB942,12,97 71.45 (2) (a) 15. By subtracting from federal taxable income all income that is
8realized from the purchase and subsequent sale or redemption of lottery prizes that
9is treated as nonapprotionable income under sub. (3r).
AB942, s. 13 10Section 13. 71.45 (3r) of the statutes is created to read:
AB942,12,1311 71.45 (3r) Allocation of certain proceeds. All income that is realized from
12the purchase and subsequent sale or redemption of lottery prizes if the winning
13tickets were originally bought in Wisconsin shall be allocated to this state.
AB942, s. 14 14Section 14. 71.46 (3) of the statutes is amended to read:
AB942,12,2115 71.46 (3) The tax imposed under this subchapter on each domestic insurer on
16or measured by its entire net income attributable to lines of insurance in this state
17may not exceed 2% of the gross premiums, as defined in s. 76.62, received during the
18taxable year by the insurer on all policies on those lines of insurance if the subject
19of that insurance was resident, located or to be performed in this state plus 7.9% of
20the income realized from the purchase and subsequent sale or redemption of lottery
21prizes if the winning tickets were originally bought in Wisconsin
.
AB942, s. 15 22Section 15. 71.67 (4) (a) of the statutes, as affected by 1997 Wisconsin Act 27,
23is amended to read:
AB942,13,424 71.67 (4) (a) The administrator of the lottery division in the department under
25ch. 565 shall withhold from any lottery prize of $2,000 or more an amount determined

1by multiplying the amount of the prize by the highest rate applicable to individuals
2under s. 71.06 (1) or (1m)
the person who claims the prize. The administrator shall
3deposit the amounts withheld, on a monthly basis, as would an employer depositing
4under s. 71.65 (3) (a).
AB942, s. 16 5Section 16. 565.02 (2) (e) of the statutes is created to read:
AB942,13,96 565.02 (2) (e) If requested by a lottery prize winner to provide a certification
7that lists the amounts of the lottery prize payments, if any, that the administrator
8is required to withhold under ss. 565.30 (4), (5) and (5m) and 565.37 (5r), the
9administrator shall provide the certification.
AB942, s. 17 10Section 17. 565.30 (5) of the statutes, as affected by 1997 Wisconsin Act 27,
11is amended to read:
AB942,14,1012 565.30 (5) Withholding of delinquent state taxes, child support or debts
13owed the state.
The administrator shall report the name, address and social security
14number of each winner of a lottery prize equal to or greater than $1,000 and each
15person to whom a lottery prize equal to or greater than $1,000 has been assigned
to
16the department of revenue to determine whether the payee or assignee of the prize
17is delinquent in the payment of state taxes under ch. 71, 72, 76, 77, 78 or 139 or in
18court-ordered payment of child support or has a debt owing to the state. Upon
19receipt of a report under this subsection, the department of revenue shall first
20ascertain based on certifications by the department of workforce development under
21s. 49.855 (2) whether any person named in the report is currently delinquent in
22court-ordered payment of child support and shall next certify to the administrator
23whether any person named in the report is delinquent in court-ordered payment of
24child support or payment of state taxes under ch. 71, 72, 76, 77, 78 or 139.Upon this
25certification by the department of revenue or upon court order the administrator

1shall withhold the certified amount and send it to the department of revenue for
2remittance to the appropriate agency or person. At the time of remittance, the
3department of revenue shall charge its administrative expenses to the state agency
4that has received the remittance. The administrative expenses received by the
5department of revenue shall be credited to the appropriation under s. 20.566 (1) (h).
6In instances in which the payee or assignee of the prize is delinquent both in
7payments for state taxes and in court-ordered payments of child support, or is
8delinquent in one or both of these payments and has a debt owing to the state, the
9amount remitted to the appropriate agency or person shall be in proportion to the
10prize amount as is the delinquency or debt owed by the payee or assignee.
AB942, s. 18 11Section 18. 565.30 (5) of the statutes, as affected by 1997 Wisconsin Act ....
12(this act), is repealed and recreated to read:
AB942,15,1213 565.30 (5) Withholding of delinquent state taxes, child support or debts
14owed the state.
The administrator shall report the name, address and social security
15number of each winner of a lottery prize equal to or greater than $1,000 and each
16person to whom a lottery prize equal to or greater than $1,000 has been assigned to
17the department of revenue to determine whether the payee or assignee of the prize
18is delinquent in the payment of state taxes under ch. 71, 72, 76, 77, 78 or 139 or in
19court-ordered payment of child support or has a debt owing to the state. Upon
20receipt of a report under this subsection, the department of revenue shall first
21ascertain based on certifications by the department of workforce development or its
22designee under s. 49.855 (1) whether any person named in the report is currently
23delinquent in court-ordered payment of child support and shall next certify to the
24administrator whether any person named in the report is delinquent in
25court-ordered payment of child support or payment of state taxes under ch. 71, 72,

176, 77, 78 or 139. Upon this certification by the department of revenue or upon court
2order the administrator shall withhold the certified amount and send it to the
3department of revenue for remittance to the appropriate agency or person. At the
4time of remittance, the department of revenue shall charge its administrative
5expenses to the state agency that has received the remittance. The administrative
6expenses received by the department of revenue shall be credited to the
7appropriation under s. 20.566 (1) (h). In instances in which the payee or assignee of
8the prize is delinquent both in payments for state taxes and in court-ordered
9payments of child support, or is delinquent in one or both of these payments and has
10a debt owing to the state, the amount remitted to the appropriate agency or person
11shall be in proportion to the prize amount as is the delinquency or debt owed by the
12payee.
AB942, s. 19 13Section 19. 565.30 (5m) of the statutes, as affected by 1997 Wisconsin Act 35,
14is renumbered 565.30 (5m) (a) and amended to read:
AB942,16,215 565.30 (5m) (a) The administrator shall report to the department of workforce
16development the name, address and social security number of each winner of a
17lottery prize that is payable in instalments and the name, address and social security
18number or federal income tax number of the person who has been assigned a lottery
19prize that is payable in instalments
. Upon receipt of the report, the department of
20workforce development shall certify to the administrator whether any payee or
21assignee
named in the report is obligated to provide child support, spousal support,
22maintenance or family support under s. 767.02 (1) (f) or (g), 767.10, 767.23, 767.25,
23767.26, 767.261, 767.465 (2m), 767.51 (3) or 948.22 (7) or ch. 769 and the amount
24required to be withheld from the lottery prize under s. 767.265. The Subject to par.
25(b), the
administrator shall withhold the certified amount from each payment made

1to the winner or assignee and shall remit the certified amount to the department of
2workforce development.
AB942, s. 20 3Section 20. 565.30 (5m) (b) of the statutes is created to read:
AB942,16,84 565.30 (5m) (b) The administrator may not withhold from any payment to an
5assignee of a lottery prize any child support, spousal support, maintenance or family
6support specified in par. (a) that is owed by a winner of a lottery prize, nor may the
7administrator withhold from any payment to a winner any child support, spousal
8support maintenance or family support that is owed by an assignee.
AB942, s. 21 9Section 21. 565.30 (5t) of the statutes is created to read:
AB942,16,1210 565.30 (5t) Use of lottery prize as security for loan. (a) Definition. In this
11subsection, "prize winner" means a person who has won a lottery prize and any other
12person who is authorized by law to use a lottery prize as security for a loan.
AB942,16,1513 (b) Security for a loan. A prize winner may use a lottery prize or part of a lottery
14prize as security for a loan only pursuant to a court order issued under this
15subsection.
AB942,16,2216 (c) Judicial process for using lottery prizes as security for loans. Any prize
17winner who intends to use part or all of a lottery prize as security for a loan shall
18petition the circuit court of the county in which the prize winner resides or the circuit
19court of Dane County for a court order confirming the use of a lottery prize as security
20for a loan. The circuit court of the county in which the prize winner resides or the
21circuit court of Dane County shall issue an order confirming the use of a lottery prize
22as security for a loan only if all of the following occur:
AB942,16,2323 1. The prize winner is represented by independent legal counsel.
AB942,16,2524 2. A copy of the contract that provides for using any part of the lottery prize as
25security for the loan is attached to the petition.
AB942,17,4
13. The contract is executed by the prize winner, is subject to the laws of this
2state and provides that the prize winner has the right to cancel the contract until
3midnight of the 3rd business day after the date on which the prize winner entered
4into the contract.
AB942,17,85 4. The prize winner attests, by sworn affidavit, that he or she is of sound mind,
6is not acting under duress and acknowledges that the state will not make any of the
7lottery prize payments or parts of lottery prize payments to the prize winner that are
8being used as security for the loan in the event the prize winner defaults on the loan.
AB942,17,119 5. The prize winner, by sworn affidavit, provides the court with an accounting
10of all claims to, or judgments, liens, security interests, garnishments, assignments
11or attachments against, all or any part of the lottery prize payments.
AB942,17,1512 6. The prize winner provides the court a certification from the administrator
13that lists the amounts of the lottery prize payments, if any, that the administrator
14is required to withhold for the prize winner under subs. (4), (5) and (5m) and s. 565.37
15(5r).
AB942,17,1816 7. The part of the lottery prize that is being used as security for the loan does
17not include the amounts of any withholdings specified under subs. (4), (5) and (5m)
18and s. 565.37 (5r).
AB942,17,2419 8. The court determines that the interest rate on the loan does not exceed the
20weekly prime rate for the week prior to the date on which the court received a copy
21of the contract, as reported by the federal reserve board in federal reserve statistical
22release H. 15, plus 6%. In making the calculation under this subdivision, the court
23shall subtract from the compensation received by the individual or organization
24making the loan any required fees or other costs charged the prize winner.
AB942,18,2
1(d) Contents of court order. A court order issued under par. (c) shall include all
2of the following:
AB942,18,33 1. The name of the prize winner.
AB942,18,64 2. The prize winner's social security number if the prize winner is an
5individual, or federal income tax identification number if the prize winner is an
6organization.
AB942,18,87 3. The name of the individual or organization that is making the loan to the
8prize winner.
AB942,18,109 4. The social security number of the individual or the federal income tax
10identification number of the organization that is making the loan to the prize winner.
AB942,18,1311 5. If an individual is making the loan to the prize winner, the citizenship of the
12individual. If the individual is not a citizen of the United States of America, the order
13shall include the individual's resident alien number.
AB942,18,2114 (e) Administration. Upon receipt of a court order issued under par. (c), the
15individual or organization making the loan shall provide a certified copy of the court
16order to the administrator. The administrator shall acknowledge receipt of the court
17order in writing to the individual or organization making the loan and shall make
18all lottery prize payments according to the terms specified in the court order. The
19administrator may charge an initial processing fee, in an amount determined by
20rule, to cover any costs associated with processing the lottery prize payments in
21accordance with the terms specified in the court order.
AB942, s. 22 22Section 22. 565.30 (6) of the statutes is repealed and recreated to read:
AB942,18,2523 565.30 (6) Voluntary assignment of lottery prize. (a) Definition. In this
24subsection, "assignor" means a lottery prizewinner or a person who has the right to
25assign all or part of a lottery prize.
AB942,19,3
1(b) Voluntary assignment. An assignor may make a voluntary assignment of
2a lottery prize or part of a lottery prize only pursuant to a court order issued under
3this subsection.
AB942,19,94 (c) Judicial process for assignment. Any assignor who intends to voluntarily
5assign part or all of a lottery prize to any individual or organization shall petition the
6circuit court of the county in which the assignor resides or the circuit court of Dane
7County for a court order confirming the assignment. The circuit court of the county
8in which the assignor resides or the circuit court of Dane County shall issue an order
9confirming the assignment only if all of the following occur:
AB942,19,1010 1. The assignor is represented by independent legal counsel.
AB942,19,1111 2. A copy of the assignment is attached to the petition.
AB942,19,1312 3. The assignment is in writing, is executed by the assignor and is subject to
13the laws of this state.
AB942,19,1614 3m. The contract for the assignment provides that the assignor has the right
15to cancel the contract until midnight of the 3rd business day after the date on which
16the assignor entered into the contract.
AB942,19,2017 3r. The contract for the assignment provides that the assignor, from the
18proceeds received from the individual or organization to whom part or all of the
19lottery prized is assigned, agrees to pay in full any delinquent payments that may
20be owed by the assignor under subs. (4), (5) and (5m) and s. 565.37 (5r).
AB942,19,2321 4. The assignor attests, by sworn affidavit, that he or she is of sound mind, is
22not acting under duress and acknowledges that the state will not make any of the
23assigned lottery prize payments or parts of lottery prize payments to the assignor.
AB942,20,3
15. The assignor, by sworn affidavit, provides the court with an accounting of all
2claims to, or judgments, liens, security interests, garnishments, assignments or
3attachments against, all or any part of the lottery prize payments.
AB942,20,54 6. The assignment does not include the amounts of any withholdings specified
5under sub. (4), (5) or (5m) or s. 565.37 (5r).
AB942,20,86 7. The assignor provides the court a certification from the administrator that
7lists the amounts of the lottery prize payments, if any, that the administrator is
8required to withhold for the assignor under subs. (4), (5) and (5m) and s. 565.37 (5r).
AB942,20,169 8. The payment that the assignor will receive as compensation for the
10assignment is at least equal to the present value of the assigned lottery prize
11payments, discounted at a rate no greater than the weekly prime rate for the week
12prior to the date on which the court received a copy of the assignment, as reported
13by the federal reserve board in federal reserve statistical release H. 15, plus 6%. In
14making the calculation under this subdivision, the court shall subtract from the
15compensation received by the assignor any required fees or other costs charged the
16assignor.
AB942,20,2017 9. The individual or organization to whom part or all of the lottery prized is
18assigned specifies in an affidavit that the individual or organization agrees to report
19and pay any state income or franchise tax that is owed on any income or gain realized
20from the purchase and subsequent sale or redemption of any lottery prize.
AB942,20,2221 (d) Contents of court order. A court order issued under par. (c) shall include all
22of the following:
AB942,20,2423 1. The name of the prizewinner or the name of the assignor, if different from
24the prizewinner.
AB942,21,2
12. The assignor's social security number if the assignor is an individual, or
2federal income tax identification number if the assignor is an organization.
AB942,21,43 3. The name of the individual or organization to whom part or all of the lottery
4prize is assigned.
AB942,21,75 4. The social security number of the individual or the federal income tax
6identification number of the organization to whom part or all of the lottery prize is
7assigned.
AB942,21,108 5. If part or all of the lottery prize is assigned to an individual, the citizenship
9of the individual. If the individual is not a citizen of the United States of America,
10the order shall include the individual's resident alien number.
AB942,21,1211 6. The number of assigned lottery prize payments and the dates on which the
12assigned lottery prize payments are to be paid.
AB942,21,1413 7. The gross amount of each of the lottery prize payments that are subject to
14withholding for tax purposes and that are assigned.
AB942,21,2315 (e) Administration of lottery prize assignment. Upon receipt of a court order
16issued under par. (c), the individual or organization to whom the lottery prized is
17assigned shall provide a certified copy of the court order to the administrator. The
18administrator shall acknowledge receipt of the court order in writing to the
19individual or organization to whom the lottery prized is assigned and shall make all
20lottery prize payments according to the terms specified in the court order. The
21administrator may charge an initial processing fee, in an amount determined by
22rule, to cover any costs associated with processing the lottery prize payments in
23accordance with the terms specified in the court order.
AB942, s. 23 24Section 23. 565.37 (5r) of the statutes is renumbered 565.37 (5r) (a) and
25amended to read:
AB942,22,14
1565.37 (5r) (a) If the administrator receives a notice of the assignment of lottery
2prizes under s. 973.05 (4) (b), he or she shall periodically determine if the person
3subject to the assignment is a winner or assignee of a lottery prize that is payable in
4instalments. If the administrator determines that a person subject to an assignment
5of lottery prizes under s. 973.05 (4) (b) is a winner or assignee of a lottery prize that
6is payable in instalments, the administrator, subject to par. (b), shall withhold the
7amount of the judgment that is the basis of the assignment from the next instalment
8payment. The administrator shall submit the withheld amount to the court that
9issued the assignment. The administrator shall notify the winner or assignee of the
10reason that the amount is withheld from the lottery prize. If the initial instalment
11payment is insufficient to pay the judgment, the administrator shall withhold and
12submit to the court an amount from any additional instalment payments until the
13judgment is paid in full or until the court notifies the administrator that the
14judgment is paid and the assignment is no longer in effect.
AB942, s. 24 15Section 24. 565.37 (5r) (b) of the statutes is created to read:
AB942,22,1916 565.37 (5r) (b) The administrator may not withhold from any payment to an
17assignee of a lottery prize the amount specified in par. (a) that is owed by a winner
18of a lottery prize, nor may the administrator withhold from any payment to a winner
19the amount specified in par. (a) that is owed by an assignee.
AB942, s. 25 20Section 25. Initial applicability; revenue.
AB942,22,2421 (1) Situs of income. The treatment of sections 71.04 (1) (a) and (9), 71.23 (1)
22and (2), 71.25 (5) (b), 71.26 (1) (a), 71.362 (1) and (2), 71.43 (1) and (2), 71.45 (1), (2)
23(a) 15. and (3r), 71.46 (3) and 71.67 (4) (a) of the statutes first applies to taxable years
24beginning on January 1, 1998.
AB942, s. 26
1Section 26. Effective dates. This act takes effect on the day after publication,
2except as follows:
AB942,23,53 (1) The repeal and recreation of section 565.30 (5) of the statutes takes effect
4on October 1, 1999, or the date stated in the Wisconsin Administrative Register
5under section 767.29 (1) (f) of the statutes, whichever is earlier.
AB942,23,66 (End)
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