Wis. Admin. Code § Tax 61.08 — Retailer contract terms and conditions

The retailer’s contract shall include all of the following terms and conditions:

Tax 61.08(1) (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 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.

Tax 61.08(2) (2) Contract not assignable or transferable. The retailer’s contract may not be assigned or transferred from one person or location to another.

Tax 61.08(3) (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 that would accrue to an employee or agent of the state of Wisconsin.

Tax 61.08(4) (4) Indemnification. The retailer shall indemnify and hold harmless the state of Wisconsin, the Wisconsin lottery, and the Wisconsin lottery’s employees and agents from and against all claims, suits, or actions arising from any willful or negligent act or omission of the retailer or its agents while performing under the terms of the retailer contract.

Tax 61.08(5) (5) Compliance with state law and rules. During the term of the retailer contract, the retailer shall comply with ch. 565 , Stats., the Wisconsin lottery’s administrative rules and any other applicable state law and administrative rules.

Tax 61.08(6) (6) Compliance with retailer’s handbook. During the term of the retailer contract, the retailer shall comply with instructions and procedures for each game as set forth in the retailer handbook.

Tax 61.08(7) (7) Certificate of authority. The certificate of authority is not assignable or transferable and shall be conspicuously displayed at the point of sale.

Tax 61.08(8) (8) Notification of changes in the retailer’s application.

Tax 61.08(8)(a) (a) The retailer shall notify the 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.

Tax 61.08(8)(b) (b) The retailer shall notify the administrator, in writing, at least 30 calendar days in advance of any change of the retailer’s business address.

Tax 61.08(8)(c) (c) The retailer shall notify the 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.

Tax 61.08(9) (9) Records and recordkeeping.

Tax 61.08(9)(a) (a) During the term of the retailer’s contract and until the retailer gives a final accounting at the end of the contract term, the retailer shall maintain current, complete and accurate lottery accounting records and correspondence including but not limited to, the receipt, sale, handling, and returns for credit of all lottery tickets received by the retailer.

Tax 61.08(10) (10) Insurance requirement.

Tax 61.08(10)(a) (a) During the term of the retailer’s contract the retailer shall do all of the following:

Tax 61.08(10)(a)1. 1. Maintain worker’s compensation insurance, if required to do so under ch. 102 , Stats.

Tax 61.08(10)(a)2. 2. Maintain public liability and property damage insurance against any claim 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.

Tax 61.08(10)(b) (b) The insurance requirements under par. (a) 1. and 2. do not apply to a state agency or a local unit of government.

Tax 61.08(10)(c) (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.

Tax 61.08(10)(d) (d) During the term of the retailer’s contract, the administrator reserves the right to request from the retailer verification that the retailer has complied with the insurance requirements under par. (a) 1. and 2.

Tax 61.08(11) (11) Sale of tickets.

Tax 61.08(11)(a) (a) The retailer shall accept only cash for lottery tickets.

Tax 61.08(11)(b) (b) The retailer may not intentionally sell a lottery ticket to a person under 18 years of age.

Tax 61.08(11)(c) (c) The retailer shall sell a minimum monthly average of $400 worth of instant scratch tickets or instant break-open tickets or the sum of both each fiscal quarter, under s. Tax 61.04 (1) (d) .

Tax 61.08(11)(d) (d) The retailer may not exchange lottery tickets with any other person including other retailers.

Tax 61.08(11)(e) (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 administrator.

Tax 61.08(11)(f) (f) The retailer may not play the lottery games by using any method other than random, fair chance, or by any method contrary to the principle that every lottery ticket has an equal and random chance of winning.

Tax 61.08(11)(g) (g) The retailer shall make player brochures available to potential lottery ticket customers and explain the game rules when requested.

Tax 61.08(11)(h) (h) The retailer may not add any service fee, handling fee, or other expense to the purchase of a ticket or share.

Tax 61.08(11)(j) (j) The retailer may not charge any service fee, handling fee or other cost when validating a ticket regardless of whether the ticket or share is a winning or non-winning ticket or share, without the written permission of the administrator.

Tax 61.08(11)(k) (k) The retailer may not conduct sales of lottery tickets or shares to off-premises customers by telephone, email, instant messaging or similar electronic means, or by mail, parcel, delivery service, or similar service.

Tax 61.08(13) (13) Retailer responsibility for tickets.

Tax 61.08(13)(a) (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. Except as provided in pars. (c) and (cm) , the administrator may not reimburse the retailer for those losses.

Tax 61.08(13)(b) (b) The retailer shall report by telephone within 24 hours any stolen tickets to the Wisconsin lottery, consistent with the instructions for reporting stolen tickets as indicated in the retailer contract.

Tax 61.08(13)(c) (c) The administrator may credit the retailer’s account for the value that the retailer paid for instant scratch tickets that are unsalable after all the following conditions are met:

Tax 61.08(13)(c)1. 1. The tickets became unsalable due to any malfunction of lottery equipment used in the sale of the tickets or if the tickets are deemed to be misprinted or void, consistent with the features and procedures document of the game to which the ticket or share belongs.

Tax 61.08(13)(c)2. 2. The unsalable tickets are returned to the lottery before the settlement date of the game to which the pack belongs. Tickets returned after the settlement date may not be credited for value by the administrator.

Tax 61.08(13)(c)3. 3. There is no validation of any ticket that is returned for credit, and the latex or other protective measures on each returned ticket show no signs of tampering.

Tax 61.08(13)(c)4. 4. At the discretion of the administrator, the lottery may assess a service charge against the retailer account to recover the cost of returning the tickets.

Tax 61.08(13)(c)5. 5. Credit shall be the retailer’s purchase price, and any credit or service charge shall be made to the retailer’s electronic fund transfer account.

Tax 61.08(13)(cm) (cm)

Tax 61.08(13)(cm)1. 1. The administrator may credit the retailer’s account for the value the retailer paid for instant scratch tickets that are stolen. In determining whether to provide credit, the administrator may consider the following factors:

Tax 61.08(13)(cm)1.a. a. Compliance with the reporting requirement under par. (b) .

Tax 61.08(13)(cm)1.b. b. Whether the theft has been reported to law enforcement.

Tax 61.08(13)(cm)1.c. c. Final return date of the game to which the stolen tickets belong.

Tax 61.08(13)(cm)1.d. d. Validation of any ticket that is reported stolen.

Tax 61.08(13)(cm)1.e. e. The retailer’s prior record of reporting stolen tickets to the department.

Tax 61.08(13)(cm)1.f. f. Security of the retailer’s business and the place where tickets are stored.

Tax 61.08(13)(cm)1.g. g. Any other facts and circumstances the administrator believes pertinent.

Tax 61.08(13)(cm)2. 2. Credit under this paragraph shall be the retailer’s purchase price, and any credit shall be made to the retailer’s electronic fund transfer account.

Tax 61.08(13)(d) (d) In the event that the lottery administrator announces a settlement date for a game, a retailer may return tickets for credit on or before that announced settlement provided that conditions under par. (c) 2. to 5. are met.

Tax 61.08(13)(e) (e) The administrator may charge a retailer for shipments delivered on a date different than the retailer’s scheduled order delivery date or shipped on a date other than the retailer’s shipment date. If a retailer is charged, the expense shall be limited to the cost of the delivery.

Tax 61.08(14) (14) Retailer’s payment for tickets.

Tax 61.08(14)(a) (a) All lottery tickets received by the retailer shall be deemed to have been purchased by the retailer.

Tax 61.08(14)(b) (b) The retailer’s accounting records and correspondence under par. (a) shall be available to the administrator for examination and copying during the retailer’s regular business hours. All of those records and correspondence are subject to seizure and audit without prior notice.

Tax 61.08(14)(bm) (bm) The retailer’s electronic fund transfer account shall be debited no less often than every 60 days for tickets received within the last 60 days.

Tax 61.08(14)(c) (c) A retailer shall remit to the lottery, no less frequently than every sixty (60) days, the proceeds from the sale of lottery tickets received since the last remission of proceeds. The terms of billing processes shall be set by the administrator.

Tax 61.08(14)(d) (d) If the retailer failed to place sufficient funds in the electronic fund transfer account for the tickets received, the retailer may not receive more tickets until the retailer pays the amount due the lottery consistent with pars. (bm) and (c) , or until the retailer has signed an agreement with the administrator which indicates an alternative schedule of payment for outstanding debts consistent with s. Tax 61.02 (1m) . The administrator shall determine whether to offer an alternative payment agreement to a retailer on a case by case basis, taking into consideration the retailer’s previous payment history.

Tax 61.08(14)(e) (e) The administrator may assess the retailer a surcharge, an interest penalty, or both, for each dishonored retailer’s check or electronic fund transfer. The surcharge shall be equal to the costs incurred, incident to each dishonor. Interest may be charged only in the event that a retailer account is referred for overdue collection, and may be assessed at a rate not to exceed 8.5% of the overdue amount.