(1) SCOPE. This section applies to any
contract for goods and services or both entered into by any person licensed by
the division pursuant to s.
562.05(1) (a) or (b), Stats., and any other person.
(2) DIVISION APPROVAL.
(a) Any contract in excess of $10,000 per
year for any goods or services or both shall be subject to approval by the
division and submitted to the division for approval by the licensee. Such a
contract shall not, as a matter of public policy, become effective and binding
on the parties to the contract unless and until it has been approved by the
division. Any contract not so approved shall be considered void as against
public policy. Any person requesting division approval of a contract pursuant
to this section shall provide the administrator a copy of the contract, which
has been signed by all parties to the contract, within 15 days of
execution.
(b) Any multiple
contracts under $10,000 per year which the division finds are for same or
substantially similar goods or services or both shall be deemed to be a
contract requiring approval. Any multiple contracts deemed to be a contract
requiring approval shall not be binding on the parties unless and until it has
been approved by the division. Any contract or contracts not so approved shall
be considered void as against public policy. If the division finds that the use
of multiple contracts was to circumvent the requirements of this section, the
parties thereto shall be subject to a forfeiture not to exceed $10,000 or
suspension or revocation of licensure or both.
(c) Any amendment, alteration, addition or
deletion of the terms of a contract previously approved by the division shall
also be approved by the division. Such amendment, addition, alteration or
deletion shall not, as a matter of public policy, become effective and binding
on the parties until approved by the division. Any amendment, alteration,
addition or deletion not so approved shall be considered void as against public
policy. Any person requesting division approval of an amendment, alteration,
addition or deletion shall provide the administrator a copy of the same, which
has been signed by all parties, within 15 days of execution.
(d) Upon a determination, after a hearing
pursuant to ch. Game 3, that a person, without division approval, has entered
into a contract or amendment thereto governed by this section, whether the
contract or amendment is oral or written, or has attempted to circumvent the
requirements of this section by behaving as if a contractual agreement existed
although not reduced to writing or otherwise not meeting all legal requirements
for formation of a binding contract, shall be subject to a forfeiture not to
exceed $10,000, and suspension or revocation of the license.
(3) FILING WITH THE DIVISION. Any
contract for any goods or services or both not in excess of $10,000 per year
entered into by any person licensed by the division and any other person shall
be filed with the division by the licensee within 15 days of the effective date
of the agreement. Any amendment, alteration, addition or deletion thereto shall
be filed with the division by the licensee within 15 days of the effective date
of the amendment, alteration, addition or deletion. Any amendment, alteration,
addition or deletion which makes the total value of any goods or services or
both governed by the contract and amendment, alteration, addition or deletion
to be in excess of $10,000 per year shall require division approval of both the
original contract and amendment, alteration, addition or deletion as provided
in this section. Failure to so obtain division approval by the licensee shall
subject the licensee to the disciplinary procedures which may include license
suspension or revocation or imposition of a forfeiture.
