1. (1) Consistent with s. 227.04, Stats., the lottery shall exercise the following discretion in the enforcement of rules and guidelines against a small business:

   1. (a) For purposes of this section the definition of small business, under s. 227.114 (1), Stats., shall include any retailer who holds a contract under s. Tax 61.08, so that all retailers may expect the same treatment with respect to this section.

   Note: Section 227.04 (2m) (a), Stats., provides that: “Each agency shall promulgate a rule that requires the agency to disclose in advance the discretion that the agency will follow in the enforcement of rules against a small business that has committed a minor violation.” Section 227.04 (1) (a), Stats., defines minor violation as follows: “ “Minor violation” means a rule violation that does not cause serious harm to the public, is committed by a small business, and the violation is not willful, the violation is not likely to be repeated, there is a history of compliance by the violator, or the small business has voluntarily disclosed the violation.”

2. (2) If a retailer voluntarily discloses an actual or potential violation of lottery rules, guidelines, or terms of a contract with the lottery, the retailer shall be entitled to a reduction or waiver of any penalties associated with the disclosed potential violation. The amount of the reduction or the extent of the waiver shall be determined by the administrator on a case-by-case basis.

3. (3) Notwithstanding the provisions of sub. (2), no reduction or waiver may be granted for any of the following situations:

   1. (a) The agency discovers the violation before the small business discloses the violation.
   2. (b) The violation is disclosed after an agency audit or inspection of the small business has been scheduled.
   3. (c) The violation was identified as part of the monitoring or sampling requirements that are consistent with the requirements under an existing permit.
   4. (d) The violation results in a substantial economic advantage for the small business.
   5. (e) The small business has repeatedly violated the same rule or guideline.
   6. (f) The violation may result in an imminent endangerment to the environment, or to public health or safety.
   7. (g) The violation is determined to be an act of deceit, fraud, misrepresentation or other conduct prejudicial to public confidence in the lottery.
   8. (h) The violation may give the retailer an unfair economic advantage over another retailer.

4. (4) A retailer may appeal a determination of inappropriate use of discretion as outlined in section s. Tax 61.10. The administrator shall review each appeal on a case by case basis.

   Note: Section Tax 61.25 interprets ss. 227.04, 565.10, and 565.12, Stats.

History

History: CR 07-087: cr. Register April 2008 No. 628, eff. 5-1-08; correction in (1) made under s. 13.92 (4) (b) 7., Stats., Register June 2014 No. 702.