565.17(5)(b)
(b) No person may sell a lottery ticket or lottery share to a person knowing that the purchaser is prohibited from purchasing a lottery ticket or lottery share under
par. (a).
565.17(5)(c)
(c) No person may pay a prize for a winning lottery ticket or lottery share to any person knowing that the purchaser was prohibited from purchasing a lottery ticket or lottery share under
par. (a).
565.20
565.20
Retailer rental payments. If a retailer's rental payment for the premises described in a contract entered into under
s. 565.10 is contractually computed, in whole or in part, on the basis of a percentage of retail sales and the computation of retail sales is not expressly defined, under the rental contract, to include sales of lottery tickets or lottery shares in the lottery under this chapter, any compensation received by the retailer under
s. 565.10 (14) shall be considered the amount of the retail sales from the lottery tickets or lottery shares for the purposes of computing the rental payment.
565.20 History
History: 1987 a. 119.
565.25
565.25
Contracting authority and purchasing procedures. 565.25(1)(1)
Definition. In this section, "department" means the department of administration.
565.25(1m)
(1m) Scope of authority. Subject to approval by the secretary of revenue, the administrator may determine whether lottery functions shall be performed by department of revenue employes or by one or more persons under contract with the department of administration, except that no contract may provide for the entire management of the lottery or for the entire operation of the lottery by any private person. The department of administration may contract for management consultation services to assist in the management or operation of the lottery. The department of administration may not contract for financial auditing or security monitoring services, except that, if the department of administration delegates under
s. 16.71 (1) to the department of revenue the authority to make a major procurement, the department of revenue may contract with the department of administration for warehouse and building protection services relating to the state lottery. If the department of administration delegates under
s. 16.71 (1) to the department of revenue the authority to make a major procurement, the department of revenue shall assume the powers and duties of the department of administration and the administrator shall assume the powers and duties of the secretary of administration under this section and
ss. 16.70 to
16.77, except under
ss. 16.72 (4) (a),
16.76 (1) and
16.77 (1).
565.25(2)(a)2.
2. Notwithstanding the provisions of
s. 16.75 (1) (a) relating to the lowest responsible bidder and
s. 16.75 (2m) (g) relating to the most advantageous proposal, all contracts or orders under
s. 16.75 (1) and
(2m) shall be awarded on the basis of a formula specified by the department that weighs all of the following factors, to the extent applicable:
565.25(2)(a)2.b.
b. The technical capability and expertise of the proposed vendor.
565.25(2)(a)2.c.
c. The integrity, reliability and expertise of the proposed vendor in providing the items covered by the bid or proposal.
565.25(2)(a)2.d.
d. The security for lottery operations provided under the bid or proposal.
565.25(2)(a)3.
3. In addition to the provisions of
ss. 16.75 (3m) and
16.765 that apply to purchasing or contracting state agencies, in awarding orders or contracts, the department shall give preference to a bidder if at least 5% of the individuals employed by the bidder and any subcontractors to produce, distribute, supply or sell the materials, supplies, equipment or services under the order or contract are minority group members and are employed in the state.
565.25(2)(a)4.
4. The administrator shall develop specifications for major procurements. If security is a factor in the materials, supplies, equipment, property or services to be purchased in any major procurement, then invitations for bids or competitive sealed proposals shall include specifications related to security. The administrator shall submit specifications for major procurement to the secretary of revenue for review and approval before the department of administration releases the specifications in invitations for bids or competitive sealed proposals. The department of administration shall require separate bids or separate competitive sealed proposals for each of the following supplies and services if the supplies or services are provided under contract as provided in
sub. (1m):
565.25(2)(a)5.
5. The vendor shall disclose such information as is required by the department, by rule, with the vendor's submission of a bid or proposal for a major procurement.
565.25(2)(a)6.
6. If the department of administration delegates under
s. 16.71 (1) to the department of revenue the authority to make a major procurement, the award of the major procurement contract is subject to the requirements in
ss. 16.72 (4) (a) and
16.76 (1). Copies of requisitions and contracts for major procurements shall be maintained by the administrator and shall be subject to inspection and copying under
subch. II of ch. 19.
565.25(2)(a)7.
7. No bill or statement for any purchase or engagement for the department of revenue relating to the state lottery may be paid until the bill or statement is approved by the administrator.
565.25(2)(c)
(c) A major procurement contract under this subsection may be for any term deemed to be in the best interests of the state lottery or the multijurisdictional lottery in which the state participates, but the term and any provisions for renewal or extension shall be incorporated in the bid specifications or proposal solicitation and the contract document.
565.25(3)(a)(a) No contract for a major procurement may be entered into with a person if, during the immediately preceding 10 years, the person has been convicted of, or entered a plea of guilty or no contest to, any of the following, unless the person has been pardoned:
565.25(3)(a)4.
4. A violation of this chapter or any rule promulgated under this chapter.
565.25(3)(b)1.1. Except as provided in
subd. 4., if the vendor is a partnership,
par. (a) applies to the partnership and each partner of the partnership.
565.25(3)(b)1L.
1L. Except as provided in
subd. 4., if the vendor is a limited liability company,
par. (a) applies to the limited liability company and to each of its members.
565.25(3)(b)2.
2. Except as provided in
subd. 4., if the vendor is an association,
par. (a) applies to the association and each officer and director of the association.
565.25(3)(b)3.
3. Except as provided in
subd. 4., if the vendor is a corporation,
par. (a) applies to the corporation, each officer or director of the corporation and each owner, directly or indirectly, of any equity security or other ownership interest in the corporation. In the case of owners of publicly held securities of a publicly traded corporation,
par. (a) only applies to those persons who are beneficial owners of 5% or more of the publicly held securities.
565.25(3)(b)4.
4. The restrictions under
par. (a) do not apply to the partnership, limited liability company, association or corporation if the department determines that the partnership, limited liability company, association or corporation has terminated its relationship with the partner, member, officer, director or owner who was convicted or entered the plea or with the partner, member, officer, director, owner or other individual whose actions directly contributed to the partnership's, limited liability company's, association's or corporation's conviction or entry of plea.
565.25(3)(c)
(c) No contract for a major procurement may be entered into unless the contract provides that the vendor has established or will, within a period of time specified in the contract, establish an office within the state from which the vendor will process, produce, distribute, supply or sell materials, supplies, equipment or services under the contract.
565.25(3m)
(3m) False statement or material omission. No person proposing to contract for a major procurement may intentionally make a false statement or material omission in any disclosure statement required under
sub. (2) (a) 5.
565.25(4)
(4) Background investigations. The department of justice shall conduct a background investigation of any person proposing to contract or contracting for a major procurement and of all partners, members, officers, directors, owners and beneficial owners identified under
sub. (3) (b). The department of justice may require the person and partners, members, officers, directors and shareholders identified under
sub. (3) (b) to be photographed and fingerprinted on 2 fingerprint cards each bearing a complete set of the person's fingerprints. The department of justice may submit the fingerprint cards to the federal bureau of investigation for the purposes of verifying the identity of the persons fingerprinted and obtaining records of their criminal arrests and convictions. If the results of the background investigation disclose information specified in
sub. (3) (a) with respect to the person, partner, member, officer, director, owner or beneficial owner, a contract with the vendor, if entered into prior to the disclosure, is void and the vendor shall forfeit any amount filed, deposited or established under
sub. (5) (b). The department of revenue shall reimburse the department of justice for the department of justice's services under this subsection and shall obtain payment from the person proposing to contract or the vendor in the amount of the reimbursement.
565.25(5)(b)
(b) For a major procurement, the department may require from a person proposing to contract on a bid, conditioned upon signing the contract if awarded to the person, or on a contract award, conditioned upon performance under the contract or payment of subcontractors, any of the following:
565.25(5)(b)1.
1. The deposit with the department of a bond payable to the department, in an amount required by the department.
565.25(5)(b)2.
2. The deposit and maintenance with the department of interest-bearing or interest-accruing securities approved by the department, which shall be held in trust by the department and shall have at all times a market value equal to at least the amount required by the department.
565.25(5)(b)3.
3. The filing with the department of an irrevocable letter of credit payable to and for the benefit of the department, in an amount required by the department.
565.25(5)(b)4.
4. The establishment with a financial institution of an escrow account, the terms, conditions and amount of which are established for the benefit of the department, in an amount required by the department.
565.27(1)(1)
Game features and procedures. 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. The features and procedures shall be in writing, shall be accessible to the public and shall include all of the following:
565.27(1)(b)
(b) The price of lottery tickets or lottery shares and any discount authorized for the price.
565.27(1)(c)
(c) The prize structure, including the number and value of prizes.
565.27(1)(d)
(d) The frequency of drawings or other winner selections.
565.27(2)(a)(a) The actual selection of any winning lottery ticket or lottery share may not be performed by an elected or appointed official or an employe of the lottery division in the department.
565.27(2)(b)
(b) If drawings are used to select among winning numbers, to select among entries or to select among finalists, all of the following requirements shall be met:
565.27(2)(b)1.
1. The drawings shall be witnessed by an independent certified public accountant.
565.27(2)(b)3.
3. The drawings shall be recorded on both videotape and audiotape.
565.27(2)(b)4.
4. Any equipment used for the drawing must be inspected by a certified public accountant and a department employe before and after the drawing, except that a department employe is not required to inspect the equipment if the drawing is used for a multijurisdictional lottery.
565.27(3)
(3) Ticket and share numbers. Every lottery ticket and lottery share shall have a unique number that distinguishes the ticket or share from every other ticket or share in the lottery game.
565.27(4)
(4) Lottery ticket appearance. No name of an elected or appointed official may appear on the lottery tickets of any lottery game.
565.30(1)(1)
Payment of prizes. The administrator shall direct the payment of a prize to the holder of the winning lottery ticket or lottery share or to a person designated under
sub. (2), except that a prize may be paid to another person under a court order or to the estate of a deceased prize winner. The department, administrator, state and any contractor for materials, equipment or services of the game in which the prize is won are discharged of all liability upon payment of the prize to the holder of a winning lottery ticket or lottery share.
565.30(2)
(2) Payment of prizes to minors. If the prize for a winning lottery ticket or lottery share given to a minor is less than $1,000, the administrator may make payment of the prize by delivering to an adult member of the minor's family, or to the minor's guardian, a check or draft payable to the minor. If the prize is $1,000 or more, the administrator shall make payment to the minor by paying or delivering the money to a broker or financial institution under
s. 880.65 (1) (b).
565.30(2m)
(2m) Prizes over years. If the prize for a winning lottery ticket or lottery share is monetary and is payable in instalments over a period of years, any informational material about the lottery must state the number of years over which the prize shall be paid.
565.30(3)(a)(a)
Period to claim. The holder of a winning lottery ticket or lottery share may claim a prize within 180 days after the drawing or other selection in which the prize is won or within 180 days after the game's end date, as determined by the administrator, whichever is later.
565.30(3)(b)
(b)
Retailer bonuses. Any bonuses offered by the department to retailers who sell winning lottery tickets or lottery shares shall be paid to the retailer regardless of whether the prize is claimed if the retailer can be identified as the seller of the winning ticket or share.
565.30(3m)
(3m) Value of certain prizes. A prize that is a lottery ticket or lottery share in the same lottery game in which the prize is won or in another lottery game shall, for prize structure accounting purposes, be valued at the same percentage of the retail price, as specified under
s. 25.75 (3) (a), as are other prizes in the same lottery game in which the prize is won.
565.30(4)
(4) Withholding of income taxes. The administrator shall withhold from lottery winnings any federal income taxes required to be withheld under
26 USC 3402 (q) (3) (B) and any state taxes required to be withheld under
s. 71.67 (4) (a).
565.30(4m)
(4m) Carry over of prize money. The department may carry over unexpended lottery prize money that is not unclaimed lottery prize money from one drawing of a game to another drawing of the same game.
565.30(5)
(5) Withholding of delinquent state taxes, child support or debts owed the state. The administrator shall report the name, address and social security number of each winner of a lottery prize equal to or greater than $1,000 to the department of revenue to determine whether the payee of the prize is delinquent in the payment of state taxes under
ch. 71,
72,
76,
77,
78 or
139 or in court-ordered payment of child support or has a debt owing to the state. Upon receipt of a report under this subsection, the department of revenue shall first ascertain based on certifications by the department of workforce development or its designee under
s. 49.855 (1) whether any person named in the report is currently delinquent in court-ordered payment of child support and shall next certify to the administrator whether any person named in the report is delinquent in court-ordered payment of child support or payment of state taxes under
ch. 71,
72,
76,
77,
78 or
139. Upon this certification by the department of revenue or upon court order the administrator shall withhold the certified amount and send it to the department of revenue for remittance to the appropriate agency or person. At the time of remittance, the department of revenue shall charge its administrative expenses to the state agency that has received the remittance. The administrative expenses received by the department of revenue shall be credited to the appropriation under
s. 20.566 (1) (h). In instances in which the payee of the prize is delinquent both in payments for state taxes and in court-ordered payments of child support, or is delinquent in one or both of these payments and has a debt owing to the state, the amount remitted to the appropriate agency or person shall be in proportion to the prize amount as is the delinquency or debt owed by the payee.
Effective date note
NOTE: Sub. (5) is shown as amended eff. 1-4-99 by
1997 Wis. Act 27. Prior to 1-4-99 it reads:
Effective date text
(5) Withholding of delinquent state taxes, child support or debts owed the state. The administrator shall report the name, address and social security number of each winner of a lottery prize equal to or greater than $1,000 to the department of revenue to determine whether the payee of the prize is delinquent in the payment of state taxes under ch. 71, 72, 76, 77, 78 or 139 or in court-ordered payment of child support or has a debt owing to the state. Upon receipt of a report under this subsection, the department of revenue shall first ascertain based on certifications by the department of workforce development under s. 49.855 (2) whether any person named in the report is currently delinquent in court-ordered payment of child support and shall next certify to the administrator whether any person named in the report is delinquent in court-ordered payment of child support or payment of state taxes under ch. 71, 72, 76, 77, 78 or 139. Upon this certification by the department of revenue or upon court order the administrator shall withhold the certified amount and send it to the department of revenue for remittance to the appropriate agency or person. At the time of remittance, the department of revenue shall charge its administrative expenses to the state agency that has received the remittance. The administrative expenses received by the department of revenue shall be credited to the appropriation under s. 20.566 (1) (h). In instances in which the payee of the prize is delinquent both in payments for state taxes and in court-ordered payments of child support, or is delinquent in one or both of these payments and has a debt owing to the state, the amount remitted to the appropriate agency or person shall be in proportion to the prize amount as is the delinquency or debt owed by the payee.
565.30(5m)
(5m) Withholding of child support, spousal support, maintenance or family support. The administrator shall report to the department of workforce development the name, address and social security number of each winner of a lottery prize that is payable in instalments. Upon receipt of the report, the department of workforce development shall certify to the administrator whether any payee named in the report is obligated to provide child support, spousal support, maintenance or family support under
s. 767.02 (1) (f) or
(g),
767.10,
767.23,
767.25,
767.26,
767.261,
767.458 (3),
767.465 (2m),
767.477,
767.51 (3),
767.62 (4) (a) or
948.22 (7) or
ch. 769 and the amount required to be withheld from the lottery prize under
s. 767.265. The administrator shall withhold the certified amount from each payment made to the winner and remit the certified amount to the department of workforce development.
565.30(5r)
(5r) Withholding of assessments, fines, restitution and surcharges. 565.30(5r)(a)(a) Annually, the administrator shall provide each clerk of circuit court in the state with a list of the winners of a lottery prize that is payable in instalments. The list shall include each winner since the date of the previous list.
565.30(5r)(b)
(b) If the administrator receives a notice under
s. 973.05 (5) (a) or
778.30 (2) (a) of the assignment of lottery prizes under
s. 973.05 (4) (c) or
778.30 (1) (c) and determines that the person subject to the assignment is a winner of a lottery prize that is payable in instalments, the administrator shall withhold the amount of the judgment that is the basis of the assignment from the next instalment payment. The administrator shall submit the withheld amount to the court that issued the assignment. At the time of the submittal, the administrator shall charge the administrative expenses related to that withholding and submittal to the winner of the lottery prize and withhold those expenses from the balance of the instalment payment. The administrator shall notify the winner of the reason that the amount is withheld from the instalment payment. If the initial instalment payment is insufficient to pay the judgment and administrative expenses, the administrator shall withhold and submit to the court an amount from any additional instalment payments until the judgment and administrative expenses are paid in full and the assignment is no longer in effect. The administrative expenses received by the department shall be credited to the appropriation under
s. 20.566 (1) (h).
565.30(5t)
(5t) Priority of withholding. The administrator shall withhold payments under this section from a winner of a lottery prize in the following order:
565.30(5t)(a)
(a) For any federal or state taxes required to be withheld under
sub. (4).
565.30(5t)(b)
(b) For any delinquent state taxes, child support or debt owed the state required to be withheld under
sub. (5).
