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.
565.25 Cross-reference
Cross Reference: See also ch.
Tax 62, Wis. adm. code.
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 employee 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 employee before and after the drawing, except that a department employee 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.
565.28
565.28
Lottery prize payment option. 565.28(1)(a)(a) A person who becomes entitled to receive payment of a lottery prize under
s. 565.30 (1) on or after October 29, 1999, may elect to receive payment of the lottery prize in the form of a lump sum or in installments over a period of years if the lottery prize is payable over at least 10 years.
565.28(1)(b)
(b) A person who chooses to make an election under
par. (a) shall make the election no later than 60 days after becoming entitled to the lottery prize. An election made under
par. (a) is final and may not be revoked.
565.28(1)(c)
(c) If a person eligible to make an election under
par. (a) does not make an election within 60 days after becoming entitled to a lottery prize, the administrator shall make payment in the form of an annuity.
565.28(2)(a)(a) A person who became entitled to receive payment of a lottery prize under
s. 565.30 (1) on or before October 21, 1998, and who currently receives payment of the lottery prize in the form of an annuity may elect to change the form of payment to a lump sum if the lottery prize is payable over at least 10 years.
565.28(2)(b)
(b) A person who chooses to make an election under
par. (a) shall make the election no earlier than July 1, 1999, and no later than December 31, 2000. An election made under
par. (a) is final and may not be revoked.
565.28 History
History: 1999 a. 9.
565.30(1)(1)
Payment of prizes. The administrator shall direct the payment of a prize, in the form elected under
s. 565.28, if applicable, 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 installments 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 or federal income tax number of each winner of a lottery prize equal to or greater than $1,000 and the name, address and social security number or federal income tax number of each person to whom a lottery prize equal to or greater than $1,000 has been assigned to the department of revenue to determine whether the payee or assignee of the prize is delinquent in the payment of state taxes under
ch. 71,
72,
76,
77,
78 or
139 or, if applicable, in the 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 or assignee 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 or assignee.
565.30(5m)
(5m) Withholding of child support, spousal support, maintenance or family support. 565.30(5m)(a)(a) 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 installments and the name, address and social security number or federal income tax number of the person who has been assigned a lottery prize that is payable in installments. Upon receipt of the report, the department of workforce development shall certify to the administrator whether any payee or assignee 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) or
948.22 (7) or
ch. 769 and the amount required to be withheld from the lottery prize under
s. 767.265. Subject to
par. (b), the administrator shall withhold the certified amount from each payment made to the winner or assignee and remit the certified amount to the department of workforce development.
565.30(5m)(b)
(b) The administrator may not withhold from any payment to an assignee of a lottery prize any child support, spousal support, maintenance or family support specified in
par. (a) that is owed by a winner of a lottery prize, nor may the administrator withhold from any payment to a winner any child support, spousal support maintenance or family support that is owed by an assignee.
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 or assignees of a lottery prize that is payable in installments. The list shall include each winner or assignee since the date of the previous list.
565.30(5r)(b)
(b) Subject to
par. (c), 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 or assignee of a lottery prize that is payable in installments, the administrator shall withhold the amount of the judgment that is the basis of the assignment from the next installment 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 or assignee of the lottery prize and withhold those expenses from the balance of the installment payment. The administrator shall notify the winner or assignee of the reason that the amount is withheld from the installment payment. If the initial installment payment is insufficient to pay the judgment and administrative expenses, the administrator shall withhold and submit to the court an amount from any additional installment 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(5r)(c)
(c) The administrator may not withhold from any payment to an assignee of a lottery prize the amount specified in
par. (b) that is owed by a winner of a lottery prize, nor may the administrator withhold from any payment to a winner the amount specified in
par. (b) that is owed by an assignee.
565.30(5t)
(5t) Priority of withholding. The administrator shall withhold payments under this section from a winner or assignee 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).
565.30(5t)(c)
(c) For any child support, spousal support, maintenance or family support required to be withheld under
sub. (5m).
565.30(5t)(d)
(d) For any assignment of lottery prizes required to be withheld under
sub. (5r).
565.30(6m)
(6m) Use of lottery prize as security for loan. 565.30(6m)(a)(a)
Definition. In this subsection, "prize winner" means a person who has won a lottery prize and any other person who is authorized by law to use a lottery prize as security for a loan.
565.30(6m)(b)
(b)
Security for a loan. A prize winner may use a lottery prize or part of a lottery prize as security for a loan only pursuant to a court order issued under this subsection.
565.30(6m)(c)
(c)
Judicial process for using lottery prizes as security for loans. Any prize winner who intends to use part or all of a lottery prize as security for a loan shall petition the circuit court of the county in which the prize winner resides or the circuit court of Dane County for a court order confirming the use of a lottery prize as security for a loan. The circuit court of the county in which the prize winner resides or the circuit court of Dane County shall issue an order confirming the use of a lottery prize as security for a loan only if all of the following occur:
565.30(6m)(c)1.
1. The prize winner is represented by independent legal counsel.
565.30(6m)(c)2.
2. A copy of the contract that provides for using any part of the lottery prize as security for the loan is attached to the petition.
565.30(6m)(c)3.
3. The contract is executed by the prize winner, is subject to the laws of this state and provides that the prize winner has the right to cancel the contract until midnight of the 3rd business day after the date on which the prize winner entered into the contract.
565.30(6m)(c)4.
4. The prize winner attests, by sworn affidavit, that he or she is of sound mind, is not acting under duress and acknowledges that the state will not make any of the lottery prize payments or parts of lottery prize payments to the prize winner that are being used as security for the loan in the event the prize winner defaults on the loan.
565.30(6m)(c)5.
5. The prize winner, by sworn affidavit, provides the court with an accounting of all claims to, or judgments, liens, security interests, garnishments, assignments or attachments against, all or any part of the lottery prize payments.
565.30(6m)(c)6.
6. The prize winner provides the court a certification from the administrator that lists the amounts of the lottery prize payments, if any, that the administrator is required to withhold for the prize winner under
subs. (4),
(5),
(5m) and
(5r).
565.30(6m)(c)7.
7. The part of the lottery prize that is being used as security for the loan does not include the amounts of any withholdings specified under
subs. (4),
(5),
(5m) and
(5r).
565.30(6m)(c)8.
8. The court determines that the interest rate on the loan does not exceed the weekly prime rate for the week prior to the date on which the court received a copy of the contract, as reported by the federal reserve board in federal reserve statistical release H. 15, plus 6%. In making the calculation under this subdivision, the court shall subtract from the compensation received by the individual or organization making the loan any required fees or other costs charged the prize winner.
565.30(6m)(d)
(d)
Contents of court order. A court order issued under
par. (c) shall include all of the following:
565.30(6m)(d)2.
2. The prize winner's social security number if the prize winner is an individual, or federal income tax identification number if the prize winner is an organization.
565.30(6m)(d)3.
3. The name of the individual or organization that is making the loan to the prize winner.
565.30(6m)(d)4.
4. The social security number of the individual or the federal income tax identification number of the organization that is making the loan to the prize winner.
