SB628: Bill Text

February 21, 2014 - Introduced by Senators Leibham, Lazich and Gudex, cosponsored by Representatives Kuglitsch, Tittl, Ballweg, Bies, Knodl, Petryk, Skowronski, Strachota and Endsley. Referred to Committee on Workforce Development, Forestry, Mining, and Revenue.

SB628,2,2 An Act to repeal 563.04 (11), 563.04 (14), 563.905 (intro.), 563.93 (2), 563.93 (2m), 563.93 (4) (b), 563.93 (8), 563.935 (3), 563.935 (10) (intro.), 563.98 (1) (e), 563.98 (1c) and 563.98 (1m); to renumber 563.90; to renumber and amend 563.905 (1), 563.905 (2), 563.93 (1), 563.93 (1s), 563.93 (3), 563.93 (4) (a), 563.93 (4m), 563.93 (5), 563.93 (6), 563.93 (7), 563.93 (9), 563.935 (10) (a), 563.935 (10) (b), 563.935 (10) (c) and 563.97; to amend 563.02 (1), 563.03 (4m), 563.03 (12m), 563.04 (2), 563.04 (3), 563.05 (2), 563.05 (3), 563.05 (4), 563.10, 563.91, 563.92 (2), 563.92 (4), 563.935 (1), 563.935 (4), 563.935 (6) (a), 563.94, 563.95, 563.98 (1) (intro.), 563.98 (1g) and 563.98 (2); to repeal and recreate 563.05 (title) and 563.92 (1m); and to create 563.02 (1m), 563.03 (14w), 563.03 (17), 563.05 (4m), 563.925, 563.93 (2g) (intro.), (a), (b), (g) and (h), 563.93 (2r), 563.93 (3e), 563.93 (3i), 563.93 (3m), 563.935 (1m), 563.97 (2) and 563.98 (1e) of the statutes; relating to: the regulation of raffles.

Analysis by the Legislative Reference Bureau

Under current law, a not-for-profit, religious, charitable, service, fraternal, or veterans organization that serves a geographic area that is limited to Wisconsin and that has existed for at least one year or is chartered by a state or national organization that has existed for at least three years may obtain a license to conduct raffles.

Under rules promulgated by the Department of Administration (DOA), an organization with a Class A raffle license may conduct single-event raffles or a calendar raffle. Current law defines a calendar raffle as a raffle for which a drawing is held and a prize awarded on each date specified in a calendar. This bill defines a single-event raffle to be a raffle for which one or more drawings from a single container are held and one or more prizes are awarded on one date and at one location. Under current law, an organization with a Class B raffle license may conduct raffles in which more than one drawing may be made from more than one container, each container is specific to a prize or group of prizes, and ticket purchasers place their tickets in the containers of their choice.

Under current law, a Class A licensee may charge up to $100 for a raffle ticket and up to $10 for each month covered by a calendar raffle. Under a Class B raffle, current law allows tickets to be sold for no more than $10 each. This bill removes all limits on the prices of raffle tickets and calendars.

Under current law, an organization with a raffle license may conduct no more than 200 raffles in a 12-month period. This bill increases this maximum to 365 raffles.

Under current law, an organization with a Class B raffle license may sell tickets for a raffle drawing only on the day of the drawing. Under this bill, a Class B licensee may sell tickets before the day of a drawing if the tickets are not delivered to purchasers until the day of the drawing.

Under current law, a Class A licensee may sell raffle tickets up to 270 days before the day of a raffle drawing. This bill extends this period to one year.

Current law allows a Class A licensee to sell equal shares of a single ticket to one or more purchasers. This bill allows this only if certain requirements are met, including that not more than four shares of a single ticket be sold and that no discount be offered to the purchaser of more than one share of a ticket.

Current law requires DOA to promulgate rules relating to the conduct of raffles. This bill removes that authority.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

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

SB628,1 Section 1. 563.02 (1) of the statutes is amended to read:

SB628,3,5 563.02 (1) All phases of the conduct of bingo and raffles, except bingo games using free cards and donated prizes for which no payment of consideration is made by participants, should be closely controlled by appropriate laws and rules, which should be strictly and uniformly enforced throughout this state.

SB628,2 Section 2. 563.02 (1m) of the statutes is created to read:

SB628,3,8 563.02 (1m) All phases of the conduct of raffles should be closely controlled by appropriate laws, which should be uniformly enforced throughout this state.

SB628,3 Section 3. 563.03 (4m) of the statutes is amended to read:

SB628,3,12 563.03 (4m) "Calendar raffle" means a raffle for which a drawing is held and a prize awarded on each date specified in a calendar as a date upon which a prize will be awarded.

SB628,4 Section 4. 563.03 (12m) of the statutes is amended to read:

SB628,3,15 563.03 (12m) "Raffle" means a game of chance in which tickets or calendars are sold and a drawing one or more drawings for prizes is are held.

SB628,5 Section 5. 563.03 (14w) of the statutes is created to read:

SB628,3,19 563.03 (14w) "Single-event raffle" means a raffle for which one or more drawings from a single container are held and one or more prizes are awarded on one date and at one location.

SB628,6 Section 6. 563.03 (17) of the statutes is created to read:

SB628,4,2 563.03 (17) "Ticket" means an instrument that entitles the purchaser to one entry in a raffle other than a calendar raffle.

SB628,7 Section 7. 563.04 (2) of the statutes is amended to read:

SB628,4,5 563.04 (2) Conduct hearings on the suspension or revocation of a license for violation of this chapter or any applicable rules promulgated under it.

SB628,8 Section 8. 563.04 (3) of the statutes is amended to read:

SB628,4,9 563.04 (3) Promulgate rules under ch. 227 relating to the issuance, renewal, amendment, suspension, and revocation of bingo and raffle licenses and the conduct of bingo under this chapter.

SB628,9 Section 9. 563.04 (11) of the statutes is repealed.

SB628,10 Section 10. 563.04 (14) of the statutes is repealed.

SB628,11 Section 11. 563.05 (title) of the statutes is repealed and recreated to read:

SB628,4,13 563.05 (title) Departmental duties; powers; prohibitions.

SB628,12 Section 12. 563.05 (2) of the statutes is amended to read:

SB628,4,18 563.05 (2) The department may promulgate rules requiring holders of licenses issued under this chapter subch. III to post a notice in a conspicuous place where a bingo occasion or raffle drawing is conducted describing the procedures for filing a complaint against the holder.

SB628,13 Section 13. 563.05 (3) of the statutes is amended to read:

SB628,4,23 563.05 (3) The department may promulgate rules specifying the number of business days within which the department must review and make a determination on an application for a permit, as defined in s. 227.116 (1g), license that is issued under this chapter subch. III.

SB628,14 Section 14. 563.05 (4) of the statutes is amended to read:

SB628,5,4 563.05 (4) The department may promulgate rules defining relating to bingo that establish procedures to be used by the department for receiving, filing, and investigating complaints, for commencing disciplinary proceedings, and for conducting hearings under this chapter.

SB628,15 Section 15. 563.05 (4m) of the statutes is created to read:

SB628,5,8 563.05 (4m) Notwithstanding s. 227.11, the department may not promulgate or enforce any rule that interprets the provisions under subch. VIII or any other provisions under this chapter that relate to raffles.

SB628,16 Section 16. 563.10 of the statutes is amended to read:

SB628,5,18 563.10 Rules governing commingling of receipts restricted. Notwithstanding ss. 227.11 (2), 227.24 (1) (a) and 563.04 (3), the The department may not promulgate any emergency rule relating to the commingling of bingo and raffle receipts unless it can clearly establish that commingling will occur without such rule and that the rule will effectively prevent commingling. The department shall set forth any such finding in its proposed rule. If upon review under s. 227.40, the court finds that the finding of fact upon which any emergency rule relating to such commingling is based is unsupported by clear and convincing evidence, the rule is invalid.

SB628,17 Section 17. 563.90 of the statutes is renumbered 563.90 (1).

SB628,18 Section 18. 563.905 (intro.) of the statutes is repealed.

SB628,19 Section 19. 563.905 (1) of the statutes is renumbered 563.90 (2) and amended to read:

SB628,6,2 563.90 (2) "Local organization" means an organization Local organizations that may conduct raffles include only those organizations whose activities are limited to this state, to a specific geographical area within this state, or to a specific geographical area that is partly within this state and partly within another state.

SB628,20 Section 20. 563.905 (2) of the statutes is renumbered 563.90 (3), and 563.90 (3) (intro.), as renumbered, is amended to read:

SB628,6,6 563.90 (3) (intro.) "Service organization" includes Service organizations that may conduct raffles include all of the following:

SB628,21 Section 21. 563.91 of the statutes is amended to read:

SB628,6,11 563.91 Limit. No qualified organization under s. 563.90 may conduct more than 200 365 raffles or more than one calendar raffle during a year. A single-event raffle or a raffle conducted under a Class B license is one raffle for purposes of this section.

SB628,22 Section 22. 563.92 (1m) of the statutes is repealed and recreated to read:

SB628,6,14 563.92 (1m) (a) The department may issue a Class A license or a Class B license to any qualified organization that applies.

SB628,6,15 (b) Under a Class A license, an organization may do all of the following:

SB628,6,16 1. Conduct single-event raffles or a calendar raffle.

SB628,6,17 2. Sell some or all tickets on days other than the same day as the drawing.

SB628,6,18 3. Sell equal shares of a single ticket to one or more purchasers.

SB628,6,19 (c) Under a Class B license, an organization may do all of the following:

SB628,6,20 1. Conduct raffles for which all of the following apply:

SB628,6,21 2. Sell tickets in either of the following ways:

SB628,6,22 a. On the same day as the drawing.

SB628,6,24 b. On more than one day if the organization distributes tickets to purchasers only at the event at which the drawing will take place.

SB628,23 Section 23. 563.92 (2) of the statutes is amended to read:

SB628,7,10 563.92 (2) The fee for a raffle license shall be $25 and shall be remitted with the application. A raffle license shall be valid for 12 months and may be renewed as provided in s. 563.98 (1g). The department shall issue the license within 30 days after the filing of an a complete application if the applicant qualifies under s. 563.90 and has not exceeded the limits of s. 563.91. The department shall notify the applicant if the raffle license application is incomplete within 15 days after it is filed or the application shall be considered complete. A complete license application that is not denied within 30 days after its filing shall be considered approved. All moneys received by the department under this subsection shall be credited to the appropriation account under s. 20.505 (8) (j).

SB628,24 Section 24. 563.92 (4) of the statutes is amended to read:

SB628,7,15 563.92 (4) Proceedings to The department may conduct proceedings to suspend or revoke a an organization's license to conduct raffles shall be initiated by the department pursuant to the rules promulgated under s. 563.05 (4) for failing to comply with the requirements of this subchapter.

SB628,25 Section 25. 563.925 of the statutes is created to read:

SB628,7,19 563.925 Liability. (1) With respect to a raffle conducted under a Class A license, the department shall not be held responsible or liable in any dispute regarding the ownership or sale of a share of a ticket under s. 563.93 (3i).

SB628,7,23 (2) The department and the organization conducting a raffle under a Class B license shall not be held responsible or liable in any dispute regarding the ownership of a ticket if the purchaser of the ticket gives the ticket to another person to claim a prize on behalf of the purchaser under s. 563.935 (6) (a).

SB628,26 Section 26. 563.93 (1) of the statutes is renumbered 563.93 (1m), and 563.93 (1m) (intro.), (e) and (f), as renumbered, are amended to read:

SB628,8,2 563.93 (1m) (intro.) All raffle tickets and all calendars shall be identical in form and include:

SB628,8,3 (e) The date, time, and place of the each drawing or drawings.

SB628,8,5 (f) A list of each prize to be awarded which that has a retail fair market value of $500 $1,000 or more.

SB628,27 Section 27. 563.93 (1s) of the statutes is renumbered 563.93 (2g) (e) and amended to read:

SB628,8,12 563.93 (2g) (e) Each raffle ticket and each calendar sold by an organization shall include a separate Print an identification number, printed on both the purchaser's and the organization's portion of the ticket or calendar ,. The tickets or calendars shall be numbered consecutively in relation to the other tickets or calendars for the same drawing.

SB628,28 Section 28. 563.93 (2) of the statutes is repealed.

SB628,29 Section 29. 563.93 (2g) (intro.), (a), (b), (g) and (h) of the statutes are created to read:

SB628,8,17 563.93 (2g) (intro.) An organization that conducts a raffle under a Class A raffle license shall do all of the following:

SB628,8,20 (a) Prominently display, at each place where tickets may be purchased, a notice describing any state or federal law that imposes an age restriction on who may possess a prize that will be awarded in the raffle.

SB628,8,23 (b) Make a good faith effort to award all of the prizes offered for a raffle. If the organization is unable to award a prize, it may hold the prize and use it for future fund-raising purposes.

SB628,8,25 (g) Place the organization's portion of the ticket or calendar in the drawing container prior to the time of the drawing.

SB628,9,3 (h) Retain the organization's portion of each ticket or calendar sold for one year after the date on which the drawing is held and provide any of these portions to the department upon request.

SB628,30 Section 30. 563.93 (2m) of the statutes is repealed.

SB628,31 Section 31. 563.93 (2r) of the statutes is created to read:

SB628,9,7 563.93 (2r) An organization that conducts a calendar raffle shall do all of the following:

SB628,9,9 (a) Print identical drawing dates and identical prize amounts for each drawing on every calendar sold.