Tax 61.01 Purpose. The purpose of this chapter is to provide the executive director administrator with the procedure and criteria for selecting retailers to sell lottery tickets, to establish the retailer's duties and obligations under the contract, to provide the executive director
administrator with the procedure and criteria to terminate or suspend the retailer's contract , and to provide the applicant and retailer an appeal procedure if a contract is denied or a contract is terminated or suspended
Note to Revisor: Insert the following note at the end of Tax 61.01:
SECTION 2. Tax 61.02 (2) is amended to read:
Tax 61.02 (2) "Commencement of a game" means the date, designated by the executive director administrator, on which lottery tickets for a particular instant scratch lottery game shall go on sale to the general public.
SECTION 3. Tax 61.02 (3) is repealed.
SECTION 4. Tax 61.02 (4) to (10) are renumbered Tax 61.02 (3) to (9). As renumbered, Tax 61.02 (6), (7) and (9) are amended to read:
Tax 61.02 (6) “Selling location" means each cash register at a Wisconsin lottery retail outlet where a lottery ticket is sold.
(7) "Settlement date" means the date, designated by the executive director administrator, by which the retailer is to return unsold instant scratch tickets for a particular game.
(9) "Wisconsin lottery" means the commission, appointees, staff , and employees who administer the state lottery the department of revenue Wisconsin lottery division, the executive assistant, the secretary or the deputy secretary of revenue.
Note to Revisor: Insert the following note at the end of Tax 61.02:
SECTION 5. Tax 61.03 is amended to read:
Tax 61.03 Procedure for selecting and renewing contracting retailers. (1) Any person may apply for a contract to sell lottery tickets by submitting to the Wisconsin lottery a completed application for a lottery retail sales contract. Applications are available upon request by writingcontacting the Wisconsin Lottery, 1802 West Beltline Highway, P.O. Box 8941, Madison, WI 53708-8941 lottery. A nonrefundable check for $75.00 made payable to the Wisconsin lottery shall accompany each application for a contract. A nonrefundable electronic fund transfer or check for $25.00 made payable to the Wisconsin lottery shall accompany each application for a contract renewal.
Note to Revisor: Insert the following note at the end of sub. (1):
Note: Applications and application fees should be mailed or delivered to Wisconsin Lottery, 2135 Rimrock Road, PO Box 8941, Madison WI 53708-8941.
(2) The
executive director administrator shall examine the completed application, and based on criteria under s.
565.10 (2) to
(5), Stats., and s.
Tax 61.04 (1), shall either grant
a contract or deny the application. The
executive director administrator shall
either grant
the contract or deny the
applicant a contract application within 35 business days after
receipt by the Wisconsin lottery
of receives the completed application and application fee under sub. (1) or
within 35 business days after the
completion of administrator completes a credit check under s.
Tax 61.04 (1) (a), whichever is later.
Note to Revisor: Insert the following note at the end of Tax 61.03:
SECTION 6. Tax 61.04 (1) (intro.), (a) and (e), (3) and (4) are amended to read:
Tax 61.04 (1) (intro.) In addition to the criteria under s.
565.10 (1) to
(5), Stats., the
executive director
administrator shall determine if the applicant meets all of the following
conditions:
(a) The applicant or the applicant's business shall satisfactorily pass a credit check by the executive director administrator.
(e) The applicant may not be an employee or member of the commission or reside in the same household with a member or employee of the commission of the department of revenue Wisconsin lottery division, or the executive assistant, the secretary or the deputy secretary of revenue, per s.565.05 (1) (b).
(3) If the executive director administrator finds that there are so many qualified applicants in a given geographic area of the state that, if all those applicants would be granted contracts to sell lottery tickets, there would be an undue concentration of such retailers selling lottery tickets in that area, the executive director will administrator shall perform market evaluations on the retail establishments seeking a contract. Contracts shall only be granted to those retailers achieving the highest marketing evaluation score until the undue concentration is eliminated. The executive director administrator shall, however, grant a sufficient number of contracts in a given area to serve public convenience.
(4) (intro.) Any applicant or group of applicants, who has a physical or mental disability which that constitutes or results in a substantial handicap to the applicant's employment , may be awarded a contract exclusively to sell lottery tickets if each such applicant or group of applicants each meet the applicant meets all of the following conditions:
(a) Each applicant shall include includes with the retailer application a letter from the Wisconsin division of vocational rehabilitation verifying that the applicant's disability is a substantial handicap to employment ; .
(b) Each applicant meets all other criteria under subs. (1) through (3); and to (3).
(c) The commission approves the Each applicant's or the group's contract is approved by the Wisconsin lottery.
Note to Revisor: Insert the following note at the end of Tax 61.04:
SECTION 7. Tax 61.05 (1) is amended to read:
Tax 61.05 (1) The commission Wisconsin lottery may require from each retailer a fidelity bond in the amount determined by the executive director administrator and based upon the applicant's projected lottery ticket sales.
Note to Revisor: Insert the following note at the end of Tax 61.05:
SECTION 8. Tax 61.06 (2) and (4) are amended to read:
Tax 61.06 (2) The retailer will shall be issued a year-round certificate of authority if the retailer intends to sell lottery tickets all 12 months of the year. If the retailer intends to sell lottery tickets less than 12 months a year, the retailer may be issued a seasonal certificate of authority. If the retailer intends to sell lottery tickets throughout the year but only at selected times and places, such as at weekly events or at fairs and festivals, the retailer may be issued a temporary certificate of authority.
(4) A mutilated certificate shall be surrendered to the executive director administrator upon issuance of a duplicate. A lost certificate, when found, shall be surrendered to the executive director administrator within 15 calendar days of its recovery.
Note to Revisor: Insert the following note at the end of Tax 61.06:
SECTION 9. Tax 61.07 is amended to read:
Tax 61.07 Contract denial appeal procedure. (1) If the applicant was denied a contract, the executive director administrator shall notify the applicant, in writing, of the denial along with a brief statement why the applicant was denied a contract. The applicant shall also be notified that a request for a reconsideration must be made by the applicant within 30 calendar days and that the request must
shall contain the information in sub. (2).
(2) Within 30 calendar days of the mailing of the denial, the applicant may request a reconsideration by filing with the executive director, administrator a written statement setting forth the applicant's legal, factual, or equitable arguments and submitting any supporting documents. The request for reconsideration shall be deemed filed on the date it is received by the executive director administrator.
(3) Within 20 calendar days of receipt of the filing
request for reconsideration, the executive director administrator may, in writing, request the applicant to submit any additional facts, legal and equitable arguments , or documents
which the executive director that the administrator deems necessary to make a determination.
(4) The Wisconsin lottery's legal counsel shall compile a file containing all the material submitted by the applicant and any relevant material the executive director
administrator may have, including but not limited to, the completed application and credit check report. Legal counsel shall then review the file, research , if necessary, the applicable laws and rules , and prepare an analysis and recommendation for the executive director's administrator's consideration.
(5) The
executive director administrator, after considering all the facts and arguments submitted by the applicant, and legal counsel's recommendation, shall independently evaluate whether to grant or deny the applicant a contract. Within 45 calendar days of the
executive director's administrator's receipt of the
filing request for reconsideration or any supplemental information and documentation requested, the
executive director administrator shall notify the applicant, in writing, of the determination. If the applicant is denied a contract, the notice shall include a written statement setting forth the reasons for the denial and notifying the applicant of the right to a hearing on the denial under s.
227.42, Stats. The applicant shall be notified that a request for a hearing must be made by the applicant within 20 calendar days and that the request
must contain the information in sub. (6).
(6) (intro.) Within 20 calendar days of the
administrator's mailing of the final determination
by executive director, the applicant may
in writing request
, in writing, a hearing under s.
227.42, Stats. A request for a hearing shall be deemed filed on the date it is received by the
executive director administrator. A request shall contain all of the following:
(a) The applicant's name and address ; .
(b) The reasons why the applicant requests a hearing ; .
(c) The facts which that the applicant intends to prove at the hearing ; .
(d) A description of the mistake the applicant believes was made, if the applicant claims that the denial of contract is based on a mistake in fact or in law ; and .
(e) Any supporting documents not previously submitted to the executive director administrator.
(7) Within 20 calendar days of receipt of a request for hearing, the
executive director administrator shall
in writing grant or deny the request for a hearing
, in writing. A hearing shall be granted if the criteria in s.
227.42 (1), Stats., are met, and the
executive director administrator shall reasonably notify the applicant of the time and place of the hearing. A hearing shall be denied if criteria
in under s.
227.42 (1), Stats., are not met, and the
executive director administrator shall
in writing inform the applicant
, in writing, of the reason for denial.
(8) In the event that neither the applicant nor the applicant's representative appears at the time and place designated for the hearing, the executive director administrator may take action based upon the record as submitted. By failing to appear, an applicant waives any further right to appeal before the Wisconsin lottery.
Note to Revisor: Insert the following note at the end of Tax 61.07:
SECTION 10. Tax 61.08 (1), (3), (5), (7), (8), (10), (11) (b), (e) and (h), (13), (14) (b), (bm), (c) and (d), (15), (16), (19), (20) and (21) (intro.) and (a) to (h) are amended to read:
Tax 61.08 (1) CONTRACT PERIOD AND SALES AUTHORIZATION. The retailer's contract shall remain in effect for at least one year and shall expire on the date shown on the certificate of authority. The executive director administrator may renew the contract. However, the retailer does not have a substantial interest in, or a vested legal or equitable right to ,a contract renewal.
(3) RETAILER IS NOT AN EMPLOYEE OR AGENT OF THE STATE. The retailer is not an employee or agent of the state of Wisconsin , and is not entitled to any right, privilege , or benefit which that would accrue to an employee or agent of the state of Wisconsin.
(5) COMPLIANCE WITH STATE LAW AND RULES. During the term of the retailer contract, the retailer shall comply with ch.
565, Stats., the
commission's
Wisconsin lottery's administrative rules
, and any other applicable state law and administrative rules.
(7) CERTIFICATE OF AUTHORITY. The certificate of authority is not assignable and not or transferable and must shall be conspicuously displayed at the point of sale.
(8) NOTIFICATION OF CHANGES IN THE RETAILER'S APPLICATION. (a) The retailer shall in writing notify the executive director administrator, in writing, within 15 calendar days of every change of its organizational structure, including but not limited to changes from a sole proprietorship to a partnership or to a corporation.
(b) The retailer shall in writing notify the
executive director administrator, in writing, at least 30 calendar days in advance of any change of the retailer's business address.
(c) The retailer shall
in writing notify the
executive director administrator, in writing, within 15 calendar days if the retailer, or any of the retailer's partners, officers, directors
, or owners, as described under s.
565.10(3), Stats., have been convicted
of or pleaded guilty or no contest to a felony, a gambling related offense, or fraud or misrepresentation in any connection.
(10) INSURANCE REQUIREMENT. (a)(intro.) During the term of the retailer's contract , the retailer shall do all of the following:
1. Maintain worker's compensation insurance, if required to do so under ch.
102, Stats.
; and
2. Maintain public liability and property damage insurance against any claim which might that may occur in carrying out the retailer's contract. Minimum coverages are $300,000 single limit liability or $100,000 bodily injury per person and $300,000 per occurrence and $100,000 property damage.
(b) The insurance requirement requirements under par. (a) 1. and 2. do not apply to a state agency or a local unit of government.
(c) The retailer, by signing and executing the contract, warrants and represents to the Wisconsin lottery that the retailer has in place and will maintain during the contract period the insurance set forth under par. (a) 1. and 2. and at the minimum levels set forth under par. (a) 2.
(d) During the term of the retailer's contract, the executive director administrator reserves the right to request from the retailer verification that the retailer has complied with the insurance requirement requirements under par. (a) 1. and 2.
(11) (b) The retailer may not intentionally sell a lottery ticket to persons a person under 18 years of age.
(e) The retailer may not sell any lottery tickets at a price different from the price authorized by the Wisconsin lottery, condition the sale of a lottery ticket upon purchase of any other item or service , or impose any restriction upon the sale of a lottery ticket unless specifically authorized by the executive director administrator.
(h) The retailer shall may stamp each ticket with the retailer's identification number assigned by the Wisconsin lottery.
(13) RETAILER RESPONSIBILITY FOR TICKETS. (a) The retailer shall be responsible for the condition and security of lottery tickets received. If the retailer's lottery tickets are lost, stolen, mutilated, damaged, unaccountable or otherwise unsalable, the retailer shall be solely responsible for those tickets. The executive director administrator may not reimburse the retailer for such those losses or for instant scratch tickets not returned by the retailer in the proper sequentially numbered order.
(b) The retailer shall report by telephone within 24 hours any stolen tickets to the director of security Wisconsin lottery in Madison, Wisconsin, consistent with the instructions for reporting stolen tickets as idicated in the retailer contract.
(14) (b) The retailer's accounting records and correspondence under par. (a) shall be available to the executive director administrator for examination and copying during the retailer's regular business hours. All such of those records and correspondence are subject to seizure and audit without prior notice.
(bm) The retailer's electronic fund transfer account shall be debited once a week by the Wisconsin lottery for tickets received the previous week.
(c) If the retailer failed to place sufficient funds in the electronic fund transfer account for the tickets received the previous week, the retailer shall may not receive more tickets until the Wisconsin lottery is paid in full.
(d) The executive director administrator may assess the retailer a $20.00 surcharge for each dishonored retailer's check or electronic fund transfer.
(15) UNSOLD INSTANT SCRATCH TICKETS RETURNED FOR CREDIT. (a) On or before the settlement date, the retailer may return to the lottery unsold instant scratch tickets to the Wisconsin lottery and receive credit. Credit shall be the retailer's purchase price.
(b) The Wisconsin lottery shall credit the retailer's electronic fund transfer account for all returned unopened packs of tickets , and for one opened, partial pack of tickets per selling location.
(c) For tickets returned up to 90 calendar days after the settlement date, the lottery shall credit the retailer's account with what the credit would have been if timely returned , minus a 20% late penalty.
(d) The executive director administrator may not accept unsold tickets which for credit that are returned more than 90 calendar days after the settlement date.
(16) INSTANT SCRATCH TICKET REDEMPTION. (a) The retailer shall redeem low tier prizes for tickets sold at the retailer's outlet and presented to the retailer by the customer. If the customer elects to redeem the low tier prize from the Wisconsin lottery's office, the Wisconsin lottery shall debit the retailer's account in that amount.
(b) The retailer may not redeem winning lottery tickets for prizes in amounts different from the amounts authorized by the executive director administrator or condition redemption of a lottery prize upon the purchase of any other item or service, or impose any restriction upon the redemption of a lottery prize unless specifically authorized in writing by the executive director administrator.
(19) RIGHT TO APPEAL SUSPENSION OR TERMINATION. In the event the
executive director administrator suspends or terminates the retailer's contract, the retailer is entitled to an appeal in accordance with the provisions set forth under s.
Tax 61.10.
(20) SUSPENSION OR TERMINATION PROCEDURE. The retailer , upon notice of the suspension or termination, shall immediately stop selling lottery tickets. Within 2 weeks of the suspension or termination, the retailer shall make payment on any money owed for tickets for unsold tickets to the Wisconsin lottery and surrender all unsold tickets and all state owned lottery property.
(21) (intro.) GROUNDS FOR SUSPENSION OR TERMINATION. The retailer's contract may be suspended or terminated without prior notice by the Wisconsin lottery for any one of the following reasons:
(a) The retailer failed to meet
any one or more of the qualifications for being a retailer under s.
565.10, Stats., or under the
commission's Wisconsin lottery's administrative rules
; .
(b) The retailer violated a provision under ch.
565, Stats., or
any rule promulgated under of this chapter
; .
