LRB-4181/1
RAC:skg:ks
1995 - 1996 LEGISLATURE
October 26, 1995 - Introduced by Representatives Handrick, Linton, Musser,
Ourada, Skindrud, Hahn, Gunderson, Ryba, Vander Loop, Reynolds, Lorge,
Seratti, Porter, Dobyns, Kreuser, Hasenohrl, Zukowski, Kreibich, F. Lasee
and Plombon, cosponsored by Senators Andrea, A. Lasee, Shibilski and
Breske. Referred to Joint survey committee on Tax Exemptions.
AB633,1,6
1An Act to amend 20.197 (1) (j), 561.02, 561.12 (title), 561.12 (1), chapter 564
2(title), 945.01 (3) (a), 945.01 (4) (am) and 945.01 (5) (am);
to repeal and
3recreate 20.197 (1) (j) and 561.02 (1); and
to create 77.51 (4) (b) 7., 564.03,
4564.04, 945.01 (1) (dm) and 945.01 (3) (b) 1m. of the statutes;
relating to: the
5regulation and licensing of certain video amusement devices by the gaming
6commission, granting rule-making authority and making an appropriation.
Analysis by the Legislative Reference Bureau
Under current law, the gaming commission regulates pari-mutuel wagering,
bingo, raffle and crane games and the state lottery. This bill requires the gaming
commission, on behalf of all cities and villages, to license and regulate certain video
amusement devices that award or are capable of awarding to players free replays or
redeemable credits. These devices may not change the ratio of plays to free replays
or credits and are required to have a percentage of credits awarded to credits played
of not less than 83%.
All cities and villages are required under the bill to permit the gaming
commission to license and regulate these video amusement devices in their
jurisdictions unless a city or village does either of the following: permits an election
to be held on the first Tuesday in April to determine whether such video amusement
devices shall be prohibited in the city or village and a majority of the electors in the
city or village votes to prohibit the play or possession of video amusement devices or
the city or village or enacts an ordinance before January 1, 1996 or the day after
publication, whichever is later, that prohibits the play or possession of any video
amusement device. If a city or village does not enact such an ordinance before
January 1, 1996 or the day after publication, whichever is later, or hold such an
election, a city or village may not prohibit the play or the possession of any video
amusement device licensed by the gaming commission.
Under the bill, no person may market, lease, service, repair, warehouse,
transport or set up for the purpose of play any amusement device or collect the
proceeds from an amusement device unless the person has been a resident of this
state during the year immediately prior to applying for registration, the person
registers with the gaming commission and a license with an identification number
issued by the gaming commission is affixed to the amusement device. In addition,
no manufacturer of video amusement devices may do business in this state related
to such devices unless the person is issued a manufacturer's license by the gaming
commission. Finally, no distributor may sell, repair, distribute, warehouse,
transport, display or market any video amusement device unless the person is issued
a distributor's license by the gaming commission.
The bill provides that the gaming commission may not permit the play of these
video amusement devices at any location other than in a city or village on a premises
issued a Class "B" or "Class B" alcohol beverage license. Under the bill, no more than
5 video amusement devices may be kept at any one premises issued a Class "B" or
"Class B" license and the play of these amusement devices is prohibited during hours
in which the premises is closed. The owner of a premises issued a Class "B" or "Class
B" license, who permits the play of video amusement devices at his or her premises,
is required to enter into a contract with the owner of the amusement devices and this
contract must be kept on the premises at all times, available for inspection by persons
authorized by the gaming commission. In addition, the bill prohibits the advertising
of video amusement devices and the offering of any special inducement for playing
such a device.
Under the bill, the gaming commission, on behalf of cities and villages, must
charge an annual license fee of $1,000 for each amusement device that is set up for
the purpose of play. The person charged this fee is required to pay the fee directly
to the city or village in which the amusement device will be set up for the purpose
of play. In addition, the gaming commission is required to charge an additional
annual license fee of $500 for each amusement device to defray the costs incurred by
the gaming commission in regulating video amusement devices, but the bill provides
that no person may be charged more than a total of $10,000 in any one year. The
gaming commission is also required to charge a manufacturer or distributor of
amusement devices an annual license fee of $10,000 and each manufacturer and
distributor is also required to pay the gaming commission a nonrefundable fee set
by the commission to cover all costs of processing the person's application for a
license. Finally, under the bill, an exemption from the sales tax is allowed for the
value of the redeemable credits awarded by each video amusement device, other than
credits used for free replays.
Under current law, it is unlawful to make a bet, set up for the purpose of play
any gambling machine, permit the operation of a gambling place or conduct an illegal
lottery. This bill provides that playing an amusement device that awards or is
capable of awarding any redeemable credits is not a bet; that an amusement device
that awards or is capable of awarding any redeemable credits or that is possessed by
a person licensed by the gaming commission is not a gambling machine; that a lottery
does not include the playing of an amusement device licensed by the gaming
commission; and, that the premises on which an amusement device licensed by the
gaming commission is located is not a gambling place.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
For further information see the state and local 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:
AB633,3,73
20.197
(1) (j) (title)
General program operations; charitable and crane games
4and amusement devices. The amounts in the schedule for general program
5operations under chs. 563 and 564. All moneys received by the gaming commission
6under ch. 563, except s. 563.80, and under
s. 564.02 (2) ch. 564 shall be credited to
7this appropriation account.
AB633, s. 2
8Section
2. 20.197 (1) (j) of the statutes, as affected by 1995 Wisconsin Acts 27,
9section 545m, and .... (this act), is repealed and recreated to read:
AB633,3,1410
20.197
(1) (j) (title)
General program operations; charitable and crane games
11and amusement devices. The amounts in the schedule for general program
12operations under chs. 563 and 564. All moneys received by the gaming board under
13ch. 563, except s. 563.80, and under ch. 564 shall be credited to this appropriation
14account.
AB633, s. 3
15Section
3. 77.51 (4) (b) 7. of the statutes is created to read:
AB633,3,1716
77.51
(4) (b) 7. The value of redeemable credits, except credits for replay, issued
17by an amusement device, as defined in s. 564.03 (1) (a).
AB633, s. 4
18Section
4. 561.02 of the statutes is amended to read:
AB633,4,6
1561.02 General powers and duties of commission. The commission shall
2coordinate and regulate all activities relating to, and promulgate all rules relating
3to, racing and pari-mutuel wagering conducted under ch. 562, bingo and raffles
4conducted under ch. 563, crane games conducted
and amusement devices licensed 5under ch. 564 and the state lottery conducted under ch. 565, and shall perform its
6duties and functions under ch. 569 regarding Indian gaming.
AB633,4,139
561.02
(1) The commission shall coordinate and regulate all activities relating
10to, and promulgate all rules relating to, racing and pari-mutuel wagering conducted
11under ch. 562, bingo and raffles conducted under ch. 563 and crane games conducted
12and amusement devices licensed under ch. 564, and shall perform its duties and
13functions under ch. 569 regarding Indian gaming.
AB633, s. 6
14Section
6. 561.12 (title) of the statutes is amended to read:
AB633,4,16
15561.12 (title)
Charitable gaming and, crane games and amusement
16devices.
AB633, s. 7
17Section
7. 561.12 (1) of the statutes is amended to read:
AB633,4,2018
561.12
(1) Advise the commission on policy making and rule making relating
19to the conduct of bingo and raffles under ch. 563, and to the play and regulation of
20crane games
and amusement devices under ch. 564.
AB633, s. 8
21Section
8. Chapter 564 (title) of the statutes is amended to read:
AB633,4,2423
CRANE GAMES
and
24
amusement devices
AB633, s. 9
25Section
9. 564.03 of the statutes is created to read:
AB633,5,2
1564.03 Offering amusement devices for play; registration and
2licensing. (1) Definitions. In this section:
AB633,5,73
(a) "Amusement device" means any video amusement device if it awards or is
4capable of awarding the player with one or more redeemable free replays or credits
5for achieving certain scores or results and does not change the ratio of plays to free
6replays or credits so awarded. An amusement device set up for the purpose of play
7shall have a percentage of credits awarded to credits played of not less than 83%.
AB633,5,98
(b) "Set up for the purpose of play" means offer a person, for consideration, an
9opportunity to play an amusement device.
AB633,5,12
10(1m) Gaming commission authority; local option. (a) Subject to pars. (b) and
11(c), the gaming commission, on behalf of all cities and villages, shall license and
12regulate amusement devices in the manner provided in this section.
AB633,5,1813
(b) Electors of any city or village may determine, by ballot at the election held
14on the first Tuesday in April, the question of whether amusement devices shall be
15prohibited in the city or village. If the electors of any city or village determine that
16amusement devices shall be prohibited in the city or village, the gaming commission
17may not license any amusement device for the purpose of play or possession in the
18city or village.
AB633,5,2519
(c) The gaming commission may not license any amusement device for the
20purpose of play or possession in a city or village that, before the effective date of this
21paragraph .... [revisor inserts date], enacted an ordinance that prohibited in the city
22or village the play and possession of any amusement device, unless that city or
23village, on or after the effective date of this paragraph .... [revisor inserts date],
24enacts a subsequent ordinance authorizing the play and possession of any
25amusement device in the city or village.
AB633,6,8
1(2) Registration and licensing; fees. (a) No person may market, lease, service,
2repair, warehouse, transport or set up for the purpose of play in this state any
3amusement device or collect the proceeds from an amusement device set up for the
4purpose of play in this state unless the person has been a resident of this state during
5the year immediately prior to applying for a certificate of registration under this
6subsection, the person registers with the commission under this subsection and a
7license with an identification number issued by the commission is affixed to the
8amusement device.
AB633,6,139
(b) Any person who wishes to market, lease, service, repair, warehouse,
10transport or set up for the purpose of play in this state any amusement device or
11collect the proceeds from an amusement device set up for the purpose of play in this
12state shall file with the commission, on application forms prescribed by the
13commission, a signed application that includes all of the following information:
AB633,6,1814
1. The name and address of the person. If the person is a corporation or other
15entity, the person shall also file with the commission the name and address of all
16officers, directors, agents and stockholders or other persons holding or controlling,
17either directly or indirectly, 5% or more of the ownership of the corporation or other
18entity.
AB633,6,2019
2. The person's place or places of residence in this state, if any, during the year
20immediately prior to applying for a certificate of registration under this subsection.
AB633,6,2221
3. The serial number and manufacturer of each amusement device that the
22person intends to set up for the purpose of play in this state.
AB633,6,2423
4. The location of the premises at which the amusement devices shall be set up
24for the purpose of play.
AB633,7,4
1(c) A nonrefundable fee, set by the commission to cover all costs of processing
2the application filed under par. (b), and the first year's license fees shall accompany
3the application under par. (b). If the commission does not approve the application
4under par. (b), the commission shall refund the license fees to the person.
AB633,7,85
(d) Upon receipt of the application under par. (b) and the fees specified under
6par. (c), but subject to pars. (e) to (f), the commission shall issue a certificate of
7registration to each applicant who has met the requirements of this subsection and
8a license with an identification number for each amusement device.
AB633,7,139
(e) The commission may not issue a certificate of registration under this
10subsection to any person who is a corporation or other entity unless at least 51% of
11the ownership in that corporation or other entity is held by one or more persons who
12have been residents of this state during the year immediately prior to applying for
13a certificate of registration.
