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1    AN ACT concerning the lottery.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Civil Administrative Code of Illinois is
5amended by changing Section 5-20 and by adding Section 5-372 as
6follows:
 
7    (20 ILCS 5/5-20)  (was 20 ILCS 5/4)
8    Sec. 5-20. Heads of departments. Each department shall have
9an officer as its head who shall be known as director or
10secretary and who shall, subject to the provisions of the Civil
11Administrative Code of Illinois, execute the powers and
12discharge the duties vested by law in his or her respective
13department.
14    The following officers are hereby created:
15    Director of Aging, for the Department on Aging.
16    Director of Agriculture, for the Department of
17Agriculture.
18    Director of Central Management Services, for the
19Department of Central Management Services.
20    Director of Children and Family Services, for the
21Department of Children and Family Services.
22    Director of Commerce and Economic Opportunity, for the
23Department of Commerce and Economic Opportunity.

 

 

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1    Director of Corrections, for the Department of
2Corrections.
3    Director of the Illinois Emergency Management Agency, for
4the Illinois Emergency Management Agency.
5    Director of Employment Security, for the Department of
6Employment Security.
7    Secretary of Financial and Professional Regulation, for
8the Department of Financial and Professional Regulation.
9    Director of Healthcare and Family Services, for the
10Department of Healthcare and Family Services.
11    Director of Human Rights, for the Department of Human
12Rights.
13    Secretary of Human Services, for the Department of Human
14Services.
15    Director of Juvenile Justice, for the Department of
16Juvenile Justice.
17    Director of Labor, for the Department of Labor.
18    Director of the Lottery, for the Department of the Lottery.
19    Director of Natural Resources, for the Department of
20Natural Resources.
21    Director of Public Health, for the Department of Public
22Health.
23    Director of Revenue, for the Department of Revenue.
24    Director of State Police, for the Department of State
25Police.
26    Secretary of Transportation, for the Department of

 

 

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1Transportation.
2    Director of Veterans' Affairs, for the Department of
3Veterans' Affairs.
4(Source: P.A. 96-328, eff. 8-11-09; 97-464, eff. 10-15-11;
597-618, eff. 10-26-11; 97-813, eff. 7-13-12.)
 
6    (20 ILCS 5/5-372 new)
7    Sec. 5-372. In the Department of the Lottery. The Director
8of the Lottery shall receive the annual salary set by law for
9the Director of the Lottery.
 
10    Section 10. The Illinois Lottery Law is amended by changing
11Sections 3, 5, 6, 7.6, 7.8a, 7.12, 9, 10, 13, 14.4, 19, 20.1,
1221, 21.5, 21.6, 21.7, 21.8, 27, and 29 as follows:
 
13    (20 ILCS 1605/3)  (from Ch. 120, par. 1153)
14    Sec. 3. For the purposes of this Act:
15    a. "Lottery" or "State Lottery" means the lottery or
16lotteries established and operated pursuant to this Act.
17    b. "Board" means the Lottery Control Board created by this
18Act.
19    c. "Department" means the Department of the Lottery.
20    d. (Blank).
21    e. "Chairman" means the Chairman of the Lottery Control
22Board.
23    f. "Multi-state game directors" means such persons,

 

 

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1including the Director Superintendent, as may be designated by
2an agreement between the Department and one or more additional
3lotteries operated under the laws of another state or states.
4    g. (Blank).
5    h. "Director" "Superintendent" means the Director
6Superintendent of the Department of the Lottery.
7    i. "Management agreement" means an agreement or contract
8between the Department on behalf of the State with a private
9manager, as an independent contractor, whereby the private
10manager provides management services to the Lottery in exchange
11for compensation that may consist of, among other things, a fee
12for services and a performance-based bonus of no more than 5%
13of Lottery profits so long as the Department continues to
14exercise actual control over all significant business
15decisions made by the private manager as set forth in Section
169.1.
17    j. "Person" means any individual, firm, association, joint
18venture, partnership, estate, trust, syndicate, fiduciary,
19corporation, or other legal entity, group, or combination.
20    k. "Private manager" means a person that provides
21management services to the Lottery on behalf of the Department
22under a management agreement.
23    l. "Profits" means total revenues accruing from the sale of
24lottery tickets or shares and related proceeds minus (1) the
25payment of prizes and retailer bonuses and (2) the payment of
26costs incurred in the operation and administration of the

 

 

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1lottery, excluding costs of services directly rendered by a
2private manager.
3    m. "Chief Procurement Officer" means the Chief Procurement
4Officer provided for under paragraph (4) of subsection (a) of
5Section 10-20 of the Illinois Procurement Code.
6(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
7eff. 12-23-09; 97-464, eff. 8-19-11.)
 
8    (20 ILCS 1605/5)  (from Ch. 120, par. 1155)
9    Sec. 5. (a) The Department shall be under the supervision
10and direction of a Director Superintendent, who shall be a
11person qualified by training and experience to perform the
12duties required by this Act. The Director Superintendent shall
13be appointed by the Governor, by and with the advice and
14consent of the Senate. The term of office of the Director
15Superintendent shall expire on the third Monday of January in
16odd numbered years provided that he or she shall hold office
17until a successor is appointed and qualified. The annual salary
18of the Director Superintendent is $142,000.
19    Any vacancy occurring in the office of the Director
20Superintendent shall be filled in the same manner as the
21original appointment. In case of a vacancy during the recess of
22the Senate, the Governor shall make a temporary appointment
23until the next meeting of the Senate, when the Governor shall
24nominate some person to fill the office, and any person so
25nominated who is confirmed by the Senate shall hold office

 

 

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1during the remainder of the term and until his or her successor
2is appointed and qualified.
3    During the absence or inability to act of the Director
4Superintendent, or in the case of a vacancy in the office of
5Director Superintendent until a successor is appointed and
6qualified, the Governor may designate some person as Acting
7Director Superintendent of the Lottery to execute the powers
8and discharge the duties vested by law in that office. A person
9who is designated as an Acting Director Superintendent shall
10not continue in office for more than 60 calendar days unless
11the Governor files a message with the Secretary of the Senate
12nominating that person to fill the office. After 60 calendar
13days, the office is considered vacant and shall be filled only
14under this Section. No person who has been appointed by the
15Governor to serve as Acting Director Superintendent shall,
16except at the Senate's request, be designated again as an
17Acting Director Superintendent at the same session of that
18Senate, subject to the provisions of this Section. A person
19appointed as an Acting Director Superintendent is not required
20to meet the requirements of paragraph (1) of subsection (b) of
21this Section. In no case may the Governor designate a person to
22serve as Acting Director Superintendent if that person has
23prior to the effective date of this amendatory Act of the 97th
24General Assembly exercised any of the duties and functions of
25the office of Director Superintendent without having been
26nominated by the Governor to serve as Director Superintendent.

 

 

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1    (b) The Director Superintendent shall devote his or her
2entire time and attention to the duties of the office and shall
3not be engaged in any other profession or occupation. The
4Superintendent shall receive such salary as shall be provided
5by law.
6    The Director Superintendent shall:
7        (1) be qualified by training and experience to direct a
8    lottery, including, at a minimum, 5 years of senior
9    executive-level experience in the successful advertising,
10    marketing, and selling of consumer products, 4 years of
11    successful experience directing a lottery on behalf of a
12    governmental entity, or 5 years of successful senior-level
13    management experience at a lottery on behalf of a
14    governmental entity;
15        (2) have significant and meaningful management and
16    regulatory experience; and
17        (3) have a good reputation, particularly as a person of
18    honesty, independence, and integrity.
19    The Director Superintendent shall not during his or her
20term of appointment: become a candidate for any elective
21office; hold any other elected or appointed public office; be
22actively involved in the affairs of any political party or
23political organization; advocate for the appointment of
24another person to an appointed or elected office or position;
25or actively participate in any campaign for any elective
26office. The Director Superintendent may be appointed to serve

 

 

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1on a governmental advisory or board study commission or as
2otherwise expressly authorized by law.
3    (c) No person shall perform the duties and functions of the
4Director Superintendent, or otherwise exercise the authority
5of the Director Superintendent, unless the same shall have been
6appointed by the Governor pursuant to this Section.
7(Source: P.A. 97-464, eff. 8-19-11.)
 
8    (20 ILCS 1605/6)  (from Ch. 120, par. 1156)
9    Sec. 6. There is hereby created an independent board to be
10known as the Lottery Control Board, consisting of 5 members,
11all of whom shall be citizens of the United States and
12residents of this State and shall be appointed by the Governor
13with the advice and consent of the Senate. No more than 3 of
14the 5 members shall be members of the same political party. A
15chairman of the Board shall be chosen annually from the
16membership of the Board by a majority of the members of the
17Board at the first meeting of the Board each fiscal year.
18    Initial members shall be appointed to the Board by the
19Governor as follows: one member to serve until July 1, 1974,
20and until his successor is appointed and qualified; 2 members
21to serve until July 1, 1975, and until their successors are
22appointed and qualified; 2 members to serve until July 1, 1976,
23and until their successors are appointed and qualified. As
24terms of members so appointed expire, their successors shall be
25appointed for terms to expire the first day in July 3 years

 

 

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1thereafter, and until their successors are appointed and
2qualified.
3    Any vacancy in the Board occurring for any reason other
4than expiration of term, shall be filled for the unexpired term
5in the same manner as the original appointment.
6    Any member of the Board may be removed by the Governor for
7neglect of duty, misfeasance, malfeasance, or nonfeasance in
8office.
9    Board members shall receive as compensation for their
10services $100 for each day they are in attendance at any
11official board meeting, but in no event shall members receive
12more than $1,200 per year. They shall receive no other
13compensation for their services, but shall be reimbursed for
14necessary traveling and other reasonable expenses incurred in
15the performance of their official duties. Each member shall
16make a full financial disclosure upon appointment.
17    The Board shall hold at least one meeting each quarter of
18the fiscal year. In addition, special meetings may be called by
19the Chairman, any 2 Board members, or the Director
20Superintendent of the Department, upon delivery of 72 hours'
21written notice to the office of each member. All Board meetings
22shall be open to the public pursuant to the Open Meetings Act.
23    Three members of the Board shall constitute a quorum, and 3
24votes shall be required for any final determination by the
25Board. The Board shall keep a complete and accurate record of
26all its meetings.

 

 

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1(Source: P.A. 97-464, eff. 10-15-11.)
 
2    (20 ILCS 1605/7.6)  (from Ch. 120, par. 1157.6)
3    Sec. 7.6. The Board shall advise and make recommendations
4to the Director Superintendent regarding the functions and
5operations of the State Lottery. A copy of all such
6recommendations shall also be forwarded to the Governor, the
7Attorney General, the Speaker of the House, the President of
8the Senate and the minority leaders of both houses.
9(Source: P.A. 97-464, eff. 10-15-11.)
 
10    (20 ILCS 1605/7.8a)  (from Ch. 120, par. 1157.8a)
11    Sec. 7.8a. The Board shall establish advertising policy to
12ensure that advertising content and practices do not target
13with the intent to exploit specific groups or economic classes
14of people, and that its content is accurate and not misleading.
15The Board shall review, at least quarterly, all past
16advertising and proposed concepts for major media campaigns to
17ensure that they do not target with the intent to exploit
18specific groups or economic classes of people, and that their
19content is accurate and not misleading. If the Board finds that
20advertising conflicts with such policy, it shall have the
21authority to direct the Department to cease that advertising.
22The Director or his or her designee shall provide a briefing on
23proposed major media campaigns at any regularly scheduled
24meeting upon written request from any Board member. Such

 

 

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1written request must be received by the Director at least 10
2days prior to the regularly scheduled meeting.
3(Source: P.A. 85-183.)
 
4    (20 ILCS 1605/7.12)
5    Sec. 7.12. Internet pilot program.
6    (a) The General Assembly finds that:
7        (1) the consumer market in Illinois has changed since
8    the creation of the Illinois State Lottery in 1974;
9        (2) the Internet has become an integral part of
10    everyday life for a significant number of Illinois
11    residents not only in regards to their professional life,
12    but also in regards to personal business and communication;
13    and
14        (3) the current practices of selling lottery tickets
15    does not appeal to the new form of market participants who
16    prefer to make purchases on the Internet at their own
17    convenience.
18    It is the intent of the General Assembly to create an
19Internet pilot program for the sale of lottery tickets to
20capture this new form of market participant.
21    (b) The Department shall create a pilot program that allows
22an individual 18 years of age or older to purchase lottery
23tickets or shares on the Internet without using a Lottery
24retailer with on-line status, as those terms are defined by
25rule. The Department shall restrict the sale of lottery tickets

 

 

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1on the Internet to transactions initiated and received or
2otherwise made exclusively within the State of Illinois. The
3Department shall adopt rules necessary for the administration
4of this program. These rules shall include, among other things,
5requirements for marketing of the Lottery to infrequent
6players, as well as limitations on the purchases that may be
7made through any one individual's lottery account. The
8provisions of this Act and the rules adopted under this Act
9shall apply to the sale of lottery tickets or shares under this
10program.
11    Before beginning the pilot program, the Department of the
12Lottery must submit a request to the United States Department
13of Justice for review of the State's plan to implement a pilot
14program for the sale of lottery tickets on the Internet and its
15propriety under federal law. The Department shall implement the
16Internet pilot program only if the Department of Justice does
17not object to the implementation of the program within a
18reasonable period of time after its review.
19    The Department is obligated to implement the pilot program
20set forth in this Section and Sections 7.15 and 7.16 only at
21such time, and to such extent, that the Department of Justice
22does not object to the implementation of the program within a
23reasonable period of time after its review. While the Illinois
24Lottery may only offer Lotto, Mega Millions, and Powerball
25games through the pilot program, the Department shall request
26review from the federal Department of Justice for the Illinois

 

 

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1Lottery to sell lottery tickets on the Internet on behalf of
2the State of Illinois that are not limited to just these games.
3    The Department shall authorize the private manager to
4implement and administer the program pursuant to the management
5agreement entered into under Section 9.1 and in a manner
6consistent with the provisions of this Section. If a private
7manager has not been selected pursuant to Section 9.1 at the
8time the Department is obligated to implement the pilot
9program, then the Department shall not proceed with the pilot
10program until after the selection of the private manager, at
11which time the Department shall authorize the private manager
12to implement and administer the program pursuant to the
13management agreement entered into under Section 9.1 and in a
14manner consistent with the provisions of this Section.
15    The pilot program shall last for not less than 36 months,
16but not more than 48 months from the date of its initial
17operation.
18    Nothing in this Section shall be construed as prohibiting
19the Department from implementing and operating a website portal
20whereby individuals who are 18 years of age or older with an
21Illinois mailing address may apply to purchase lottery tickets
22via subscription. Nothing in this Section shall also be
23construed as prohibiting the sale of Lotto, Mega Millions, and
24Powerball games by a lottery licensee pursuant to the
25Department's rules.
26    (c) There is created the Internet Lottery Study Committee

 

 

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1as an advisory body within the Department. The Department shall
2conduct a study to determine the impact of the Internet pilot
3program on lottery licensees. The Department shall also
4determine the feasibility of the sale of stored value cards by
5lottery licensees as a non-exclusive option for use by
6individuals 18 years of age or older who purchase tickets for
7authorized lottery games in the Internet pilot program. For the
8purposes of this study, it is anticipated that the stored value
9cards will have, but need not be limited to, the following
10characteristics: (1) the cards will be available only to
11individuals 18 years of age and older; (2) the cards will be
12rechargeable, closed-loop cards that can only be loaded with
13cash; (3) the cards will have unique identifying numbers to be
14used for on-line play; (4) the cards will have on-line play
15subtracted from the card's value; (5) the cards may have
16on-line winnings added to them; (6) the cards will be used at
17Lottery retailers to cash out winnings of up to $600; and (7)
18the cards will meet all technological, programming, and
19security requirements mandated by the Department and the
20governing bodies of both Mega Millions and Powerball.
21    To the fullest extent possible, but subject to available
22resources, the Department shall ensure that the study evaluates
23and analyzes at least the following issues:
24        (1) economic benefits to the State from Internet
25    Lottery sales from stored value cards and from resulting
26    sales taxes;

 

 

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1        (2) economic benefits to local governments from sales
2    taxes generated from Internet Lottery sales through stored
3    value cards;
4        (3) economic benefits to Lottery retailers from
5    Internet Lottery sales and from ancillary retail product
6    sales in connection with the same;
7        (4) enhanced player age verification from face-to-face
8    interaction;
9        (5) enhanced control of gambling addiction from
10    face-to-face interaction;
11        (6) elimination of credit card overspending through
12    the use of stored value cards and resulting reduced debt
13    issues;
14        (7) the feasibility of the utilization of existing
15    Lottery machines to dispense stored value cards;
16        (8) the technological, programming, and security
17    requirements to make stored value cards an appropriate
18    sales alternative; and
19        (9) the cost and project time estimates for
20    implementation, including adaptation of existing Lottery
21    machines, programming, and technology enhancements and
22    impact to operations.
23    The Study Committee shall consist of the Director
24Superintendent or his or her designee; the chief executive
25officer of the Lottery's private manager or his or her
26designee; a representative appointed by the Governor's Office;

 

 

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12 representatives of the lottery licensee community appointed
2by the Director Superintendent; one representative of a
3statewide association representing food retailers appointed by
4the Director Superintendent; and one representative of a
5statewide association representing retail merchants appointed
6by the Director Superintendent.
7    Members of the Study Committee shall be appointed within 30
8days after the effective date of this amendatory Act of the
997th General Assembly. No later than 6 months after the
10effective date of this amendatory Act of the 97th General
11Assembly, the Department shall provide to the members of the
12Study Committee the proposed findings and recommendations of
13the study in order to solicit input from the Study Committee.
14Within 30 calendar days thereafter, the Study Committee shall
15convene a meeting of the members to discuss the proposed
16findings and recommendations of the study. No later than 15
17calendar days after meeting, the Study Committee shall submit
18to the Department any written changes, additions, or
19corrections the Study Committee wishes the Department to make
20to the study. The Department shall consider the propriety of
21and respond to each change, addition, or correction offered by
22the Study Committee in the study. The Department shall also set
23forth any such change, addition, or correction offered by
24members of the Study Committee and the Department's responses
25thereto in the appendix to the study. No later than 15 calendar
26days after receiving the changes, additions, or corrections

 

 

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1offered by the Study Committee, the Department shall deliver
2copies of the final study and appendices, if any, to the
3Governor, President of the Senate, Minority Leader of the
4Senate, Speaker of the House of Representatives, Minority
5Leader of the House of Representatives, and each of the members
6of the Study Committee.
7(Source: P.A. 96-34, eff. 7-13-09; 96-37, eff. 7-13-09; 96-840,
8eff. 12-23-09; 97-464, eff. 10-15-11; 97-1121, eff. 8-27-12.)
 
9    (20 ILCS 1605/9)  (from Ch. 120, par. 1159)
10    Sec. 9. The Director Superintendent, as administrative
11head of the Department, shall direct and supervise all its
12administrative and technical activities. In addition to the
13duties imposed upon him elsewhere in this Act, it shall be the
14Director's Superintendent's duty:
15    a. To supervise and administer the operation of the lottery
16in accordance with the provisions of this Act or such rules and
17regulations of the Department adopted thereunder.
18    b. To attend meetings of the Board or to appoint a designee
19to attend in his stead.
20    c. To employ and direct such personnel in accord with the
21Personnel Code, as may be necessary to carry out the purposes
22of this Act. In addition, the Director Superintendent may by
23agreement secure such services as he or she may deem necessary
24from any other department, agency, or unit of the State
25government, and may employ and compensate such consultants and

 

 

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1technical assistants as may be required and is otherwise
2permitted by law.
3    d. To license, in accordance with the provisions of
4Sections 10 and 10.1 of this Act and the rules and regulations
5of the Department adopted thereunder, as agents to sell lottery
6tickets such persons as in his opinion will best serve the
7public convenience and promote the sale of tickets or shares.
8The Director Superintendent may require a bond from every
9licensed agent, in such amount as provided in the rules and
10regulations of the Department. Every licensed agent shall
11prominently display his license, or a copy thereof, as provided
12in the rules and regulations of the Department.
13    e. To suspend or revoke any license issued pursuant to this
14Act or the rules and regulations promulgated by the Department
15thereunder.
16    f. To confer regularly as necessary or desirable and not
17less than once every month with the Lottery Control Board on
18the operation and administration of the Lottery; to make
19available for inspection by the Board or any member of the
20Board, upon request, all books, records, files, and other
21information and documents of his office; to advise the Board
22and recommend such rules and regulations and such other matters
23as he deems necessary and advisable to improve the operation
24and administration of the lottery.
25    g. To enter into contracts for the operation of the
26lottery, or any part thereof, and into contracts for the

 

 

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1promotion of the lottery on behalf of the Department with any
2person, firm or corporation, to perform any of the functions
3provided for in this Act or the rules and regulations
4promulgated thereunder. The Department shall not expend State
5funds on a contractual basis for such functions unless those
6functions and expenditures are expressly authorized by the
7General Assembly.
8    h. To enter into an agreement or agreements with the
9management of state lotteries operated pursuant to the laws of
10other states for the purpose of creating and operating a
11multi-state lottery game wherein a separate and distinct prize
12pool would be combined to award larger prizes to the public
13than could be offered by the several state lotteries,
14individually. No tickets or shares offered in connection with a
15multi-state lottery game shall be sold within the State of
16Illinois, except those offered by and through the Department.
17No such agreement shall purport to pledge the full faith and
18credit of the State of Illinois, nor shall the Department
19expend State funds on a contractual basis in connection with
20any such game unless such expenditures are expressly authorized
21by the General Assembly, provided, however, that in the event
22of error or omission by the Illinois State Lottery in the
23conduct of the game, as determined by the multi-state game
24directors, the Department shall be authorized to pay a prize
25winner or winners the lesser of a disputed prize or $1,000,000,
26any such payment to be made solely from funds appropriated for

 

 

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1game prize purposes. The Department shall be authorized to
2share in the ordinary operating expenses of any such
3multi-state lottery game, from funds appropriated by the
4General Assembly, and in the event the multi-state game control
5offices are physically located within the State of Illinois,
6the Department is authorized to advance start-up operating
7costs not to exceed $150,000, subject to proportionate
8reimbursement of such costs by the other participating state
9lotteries. The Department shall be authorized to share
10proportionately in the costs of establishing a liability
11reserve fund from funds appropriated by the General Assembly.
12The Department is authorized to transfer prize award funds
13attributable to Illinois sales of multi-state lottery game
14tickets to the multi-state control office, or its designated
15depository, for deposit to such game pool account or accounts
16as may be established by the multi-state game directors, the
17records of which account or accounts shall be available at all
18times for inspection in an audit by the Auditor General of
19Illinois and any other auditors pursuant to the laws of the
20State of Illinois. No multi-state game prize awarded to a
21nonresident of Illinois, with respect to a ticket or share
22purchased in a state other than the State of Illinois, shall be
23deemed to be a prize awarded under this Act for the purpose of
24taxation under the Illinois Income Tax Act. The Department
25shall promulgate such rules as may be appropriate to implement
26the provisions of this Section.

 

 

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1    i. To make a continuous study and investigation of (1) the
2operation and the administration of similar laws which may be
3in effect in other states or countries, (2) any literature on
4the subject which from time to time may be published or
5available, (3) any Federal laws which may affect the operation
6of the lottery, and (4) the reaction of Illinois citizens to
7existing and potential features of the lottery with a view to
8recommending or effecting changes that will tend to serve the
9purposes of this Act.
10    j. To report monthly to the State Treasurer and the Lottery
11Control Board a full and complete statement of lottery
12revenues, prize disbursements and other expenses for each month
13and the amounts to be transferred to the Common School Fund
14pursuant to Section 7.2 or such other funds as are otherwise
15authorized by Section 21.2 of this Act, and to make an annual
16report, which shall include a full and complete statement of
17lottery revenues, prize disbursements and other expenses, to
18the Governor and the Board. All reports required by this
19subsection shall be public and copies of all such reports shall
20be sent to the Speaker of the House, the President of the
21Senate, and the minority leaders of both houses.
22(Source: P.A. 96-37, eff. 7-13-09; 97-464, eff. 10-15-11.)
 
23    (20 ILCS 1605/10)  (from Ch. 120, par. 1160)
24    Sec. 10. The Department, upon application therefor on forms
25prescribed by the Department, and upon a determination by the

 

 

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1Department that the applicant meets all of the qualifications
2specified in this Act, shall issue a license as an agent to
3sell lottery tickets or shares. No license as an agent to sell
4lottery tickets or shares shall be issued to any person to
5engage in business exclusively as a lottery sales agent.
6    Before issuing such license the Director Superintendent
7shall consider (a) the financial responsibility and security of
8the person and his business or activity, (b) the accessibility
9of his place of business or activity to the public, (c) the
10sufficiency of existing licenses to serve the public
11convenience, (d) the volume of expected sales, and (e) such
12other factors as he or she may deem appropriate.
13    Until September 1, 1987, the provisions of Sections 2a, 4,
145, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 6, 6a, 6b, 6c, 8, 9,
1510, 12 and 13.5 of the Retailers' Occupation Tax Act which are
16not inconsistent with this Act shall apply to the subject
17matter of this Act to the same extent as if such provisions
18were included in this Act. For purposes of this Act, references
19in such incorporated Sections of the Retailers' Occupation Tax
20Act to retailers, sellers or persons engaged in the business of
21selling tangible personal property mean persons engaged in
22selling lottery tickets or shares; references in such
23incorporated Sections to sales of tangible personal property
24mean the selling of lottery tickets or shares; and references
25in such incorporated Sections to certificates of registration
26mean licenses issued under this Act. The provisions of the

 

 

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1Retailers' Occupation Tax Act as heretofore applied to the
2subject matter of this Act shall not apply with respect to
3tickets sold by or delivered to lottery sales agents on and
4after September 1, 1987, but such provisions shall continue to
5apply with respect to transactions involving the sale and
6delivery of tickets prior to September 1, 1987.
7    All licenses issued by the Department under this Act shall
8be valid for a period not to exceed 2 years after issuance
9unless sooner revoked, canceled or suspended as in this Act
10provided. No license issued under this Act shall be
11transferable or assignable. Such license shall be
12conspicuously displayed in the place of business conducted by
13the licensee in Illinois where lottery tickets or shares are to
14be sold under such license.
15    For purposes of this Section, the term "person" shall be
16construed to mean and include an individual, association,
17partnership, corporation, club, trust, estate, society,
18company, joint stock company, receiver, trustee, referee, any
19other person acting in a fiduciary or representative capacity
20who is appointed by a court, or any combination of individuals.
21"Person" includes any department, commission, agency or
22instrumentality of the State, including any county, city,
23village, or township and any agency or instrumentality thereof.
24(Source: P.A. 97-464, eff. 10-15-11.)
 
25    (20 ILCS 1605/13)  (from Ch. 120, par. 1163)

 

 

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1    Sec. 13. Except as otherwise provided in Section 13.1, no
2prize, nor any portion of a prize, nor any right of any person
3to a prize awarded shall be assignable. Any prize, or portion
4thereof remaining unpaid at the death of a prize winner, may be
5paid to the estate of such deceased prize winner, or to the
6trustee under a revocable living trust established by the
7deceased prize winner as settlor, provided that a copy of such
8a trust has been filed with the Department along with a
9notarized letter of direction from the settlor and no written
10notice of revocation has been received by the Department prior
11to the settlor's death. Following such a settlor's death and
12prior to any payment to such a successor trustee, the Director
13Superintendent shall obtain from the trustee a written
14agreement to indemnify and hold the Director Department and the
15Department harmless with respect to any claims that may be
16asserted against the Department arising from payment to or
17through the trust. Notwithstanding any other provision of this
18Section, any person pursuant to an appropriate judicial order
19may be paid the prize to which a winner is entitled, and all or
20part of any prize otherwise payable by State warrant under this
21Section shall be withheld upon certification to the State
22Comptroller from the Department of Healthcare and Family
23Services as provided in Section 10-17.5 of The Illinois Public
24Aid Code. The Director and the Department Superintendent shall
25be discharged of all further liability upon payment of a prize
26pursuant to this Section.

 

 

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1(Source: P.A. 97-464, eff. 10-15-11.)
 
2    (20 ILCS 1605/14.4)
3    Sec. 14.4. Investigators.
4    (a) The Department has the power to appoint investigators
5to conduct investigations, searches, seizures, arrests, and
6other duties required to enforce the provisions of this Act and
7prevent the perpetration of fraud upon the Department or the
8public. These investigators have and may exercise all the
9powers of peace officers solely for the purpose of ensuring the
10integrity of the lottery games operated by the Department.
11    (b) The Director Superintendent must authorize to each
12investigator employed under this Section and to any other
13employee of the Department exercising the powers of a peace
14officer a distinct badge that, on its face, (i) clearly states
15that the badge is authorized by the Department and (ii)
16contains a unique identifying number. No other badge shall be
17authorized by the Department.
18(Source: P.A. 97-1121, eff. 8-27-12.)
 
19    (20 ILCS 1605/19)  (from Ch. 120, par. 1169)
20    Sec. 19. The Department shall establish an appropriate
21period for the claiming of prizes for each lottery game
22offered. Each claim period shall be stated in game rules and
23written play instructions issued by the Director
24Superintendent in accordance with Section 7.1 of this Act.

 

 

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1Written play instructions shall be made available to all
2players through sales agents licensed to sell game tickets or
3shares. Prizes for lottery games which involve the purchase of
4a physical lottery ticket may be claimed only by presentation
5of a valid winning lottery ticket that matches validation
6records on file with the Lottery; no claim may be honored which
7is based on the assertion that the ticket was lost or stolen.
8No lottery ticket which has been altered, mutilated, or fails
9to pass validation tests shall be deemed to be a winning
10ticket.
11    If no claim is made for the money within the established
12claim period, the prize may be included in the prize pool of
13such special drawing or drawings as the Department may, from
14time to time, designate. Unclaimed multi-state game prize money
15may be included in the multi-state prize pool for such special
16drawing or drawings as the multi-state game directors may, from
17time to time, designate. Any bonuses offered by the Department
18to sales agents who sell winning tickets or shares shall be
19payable to such agents regardless of whether or not the prize
20money on the ticket or share is claimed, provided that the
21agent can be identified as the vendor of the winning ticket or
22share, and that the winning ticket or share was sold on or
23after January 1, 1984. All unclaimed prize money not included
24in the prize pool of a special drawing shall be transferred to
25the Common School Fund.
26(Source: P.A. 97-464, eff. 10-15-11.)
 

 

 

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1    (20 ILCS 1605/20.1)  (from Ch. 120, par. 1170.1)
2    Sec. 20.1. Department account.
3    (a) The Department is authorized to pay validated prizes up
4to $25,000 from funds held by the Department in an account
5separate and apart from all public moneys of the State. Moneys
6in this account shall be administered by the Director
7Superintendent exclusively for the purposes of issuing
8payments to prize winners authorized by this Section. Moneys in
9this account shall be deposited by the Department into the
10Public Treasurers' Investment Pool established under Section
1117 of the State Treasurer Act. The Department shall submit
12vouchers from time to time as needed for reimbursement of this
13account from moneys appropriated for prizes from the State
14Lottery Fund. Investment income earned from this account shall
15be deposited monthly by the Department into the Common School
16Fund. The Department shall file quarterly fiscal reports
17specifying the activity of this account as required under
18Section 16 of the State Comptroller Act, and shall file
19quarterly with the General Assembly, the Auditor General, the
20Comptroller, and the State Treasurer a report indicating the
21costs associated with this activity.
22    (b) The Department is authorized to enter into an
23interagency agreement with the Office of the Comptroller or any
24other State agency to establish responsibilities, duties, and
25procedures for complying with the Comptroller's Offset System

 

 

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1under Section 10.05 of the State Comptroller Act. All federal
2and State tax reporting and withholding requirements relating
3to prize winners under this Section shall be the responsibility
4of the Department. Moneys from this account may not be used to
5pay amounts to deferred prize winners. Moneys may not be
6transferred from the State Lottery Fund to this account for
7payment of prizes under this Section until procedures are
8implemented to comply with the Comptroller's Offset System and
9sufficient internal controls are in place to validate prizes.
10(Source: P.A. 97-464, eff. 10-15-11.)
 
11    (20 ILCS 1605/21)  (from Ch. 120, par. 1171)
12    Sec. 21. All lottery sales agents or distributors shall be
13liable to the Lottery for any and all tickets accepted or
14generated by any employee or representative of that agent or
15distributor, and such tickets shall be deemed to have been
16purchased by the agent or distributor unless returned to the
17Lottery within the time and in the manner prescribed by the
18Director Superintendent. All moneys received by such agents or
19distributors from the sale of lottery tickets or shares, less
20the amount retained as compensation for the sale of the tickets
21or shares and the amount paid out as prizes, shall be paid over
22to a lottery representative or deposited in a bank or savings
23and loan association approved by the State Treasurer, as
24prescribed by the Director Superintendent.
25    No bank or savings and loan association shall receive

 

 

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1public funds as permitted by this Section, unless it has
2complied with the requirements established pursuant to Section
36 of the Public Funds Investment Act.
4    Each payment or deposit shall be accompanied by a report of
5the agent's receipts and transactions in the sale of lottery
6tickets in such form and containing such information as the
7Director Superintendent may require. Any discrepancies in such
8receipts and transactions may be resolved as provided by the
9rules and regulations of the Department.
10    If any money due the Lottery by a sales agent or
11distributor is not paid when due or demanded, it shall
12immediately become delinquent and be billed on a subsequent
13monthly statement. If on the closing date for any monthly
14statement a delinquent amount previously billed of more than
15$50 remains unpaid, interest in such amount shall be accrued at
16the rate of 2% per month or fraction thereof from the date when
17such delinquent amount becomes past due until such delinquent
18amount, including interest, penalty and other costs and charges
19that the Department may incur in collecting such amounts, is
20paid. In case any agent or distributor fails to pay any moneys
21due the Lottery within 30 days after a second bill or statement
22is rendered to the agent or distributor, such amount shall be
23deemed seriously delinquent and may be referred by the
24Department to a collection agency or credit bureau for
25collection. Any contract entered into by the Department for the
26collection of seriously delinquent accounts with a collection

 

 

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1agency or credit bureau may be satisfied by a commercially
2reasonable percentage of the delinquent account recouped,
3which shall be negotiated by the Department in accordance with
4commercially accepted standards. Any costs incurred by the
5Department or others authorized to act in its behalf in
6collecting such delinquencies may be assessed against the agent
7or distributor and included as a part of the delinquent
8account.
9    In case of failure of an agent or distributor to pay a
10seriously delinquent amount, or any portion thereof, including
11interest, penalty and costs, the Department may issue a Notice
12of Assessment. In determining amounts shown on the Notice of
13Assessment, the Department shall utilize the financial
14information available from its records. Such Notice of
15Assessment shall be prima facie correct and shall be prima
16facie evidence of delinquent sums due under this Section at any
17hearing before the Board, or its Hearing Officers, or at any
18other legal proceeding. Reproduced copies of any of the
19Department's records relating to an account, including, but not
20limited to, notices of assessment, suspension, revocation, and
21personal liability and any other such notice prepared in the
22Department's ordinary course of business and books, records, or
23other documents offered in the name of the Department, under
24certificate of the Director or any officer or employee of the
25Department designated in writing by the Director shall, without
26further proof, be admitted into evidence in any hearing before

 

 

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1the Board or its Hearing Officers or any legal proceeding and
2shall be prima facie proof of the information contained
3therein. Reproduced copies of the Department's records
4relating to a delinquent account or a Notice of Assessment
5offered in the name of the Department, under the Certificate of
6the Superintendent or any officer or employee of the Department
7designated in writing by the Superintendent shall, without
8further proof, be admitted into evidence in any such hearing or
9any legal proceeding and shall be prima facie proof of the
10delinquency, including principal and any interest, penalties
11and costs, as shown thereon. The Attorney General may bring
12suit on behalf of the Department to collect all such delinquent
13amounts, or any portion thereof, including interest, penalty
14and costs, due the Lottery.
15    Any person who accepts money that is due to the Department
16from the sale of lottery tickets under this Act, but who
17wilfully fails to remit such payment to the Department when due
18or who purports to make such payment but wilfully fails to do
19so because his check or other remittance fails to clear the
20bank or savings and loan association against which it is drawn,
21in addition to the amount due and in addition to any other
22penalty provided by law, shall be assessed, and shall pay, a
23penalty equal to 5% of the deficiency plus any costs or charges
24incurred by the Department in collecting such amount.
25    The Director Superintendent may make such arrangements for
26any person(s), banks, savings and loan associations or

 

 

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1distributors, to perform such functions, activities or
2services in connection with the operation of the lottery as he
3deems advisable pursuant to this Act, the State Comptroller
4Act, or the rules and regulations of the Department, and such
5functions, activities or services shall constitute lawful
6functions, activities and services of such person(s), banks,
7savings and loan associations or distributors.
8    All income arising out of any activity or purpose of the
9Department shall, pursuant to the State Finance Act, be paid
10into the State Treasury except as otherwise provided by the
11rules and regulations of the Department and shall be covered
12into a special fund to be known as the State Lottery Fund.
13Banks and savings and loan associations may be compensated for
14services rendered based upon the activity and amount of funds
15on deposit.
16(Source: P.A. 97-464, eff. 10-15-11.)
 
17    (20 ILCS 1605/21.5)
18    Sec. 21.5. Carolyn Adams Ticket For The Cure.
19    (a) The Department shall offer a special instant
20scratch-off game with the title of "Carolyn Adams Ticket For
21The Cure". The game shall commence on January 1, 2006 or as
22soon thereafter, in the discretion of the Director
23Superintendent, as is reasonably practical, and shall be
24discontinued on December 31, 2016. The operation of the game
25shall be governed by this Act and any rules adopted by the

 

 

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1Department. The Department must consult with the Carolyn Adams
2Ticket For The Cure Board, which is established under Section
32310-347 of the Department of Public Health Powers and Duties
4Law of the Civil Administrative Code of Illinois, regarding the
5design and promotion of the game. If any provision of this
6Section is inconsistent with any other provision of this Act,
7then this Section governs.
8    (b) The Carolyn Adams Ticket For The Cure Grant Fund is
9created as a special fund in the State treasury. The net
10revenue from the Carolyn Adams Ticket For The Cure special
11instant scratch-off game shall be deposited into the Fund for
12appropriation by the General Assembly solely to the Department
13of Public Health for the purpose of making grants to public or
14private entities in Illinois for the purpose of funding breast
15cancer research, and supportive services for breast cancer
16survivors and those impacted by breast cancer and breast cancer
17education. In awarding grants, the Department of Public Health
18shall consider criteria that includes, but is not limited to,
19projects and initiatives that address disparities in incidence
20and mortality rates of breast cancer, based on data from the
21Illinois Cancer Registry, and populations facing barriers to
22care. The Department of Public Health shall, before grants are
23awarded, provide copies of all grant applications to the
24Carolyn Adams Ticket For The Cure Board, receive and review the
25Board's recommendations and comments, and consult with the
26Board regarding the grants. For purposes of this Section, the

 

 

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1term "research" includes, without limitation, expenditures to
2develop and advance the understanding, techniques, and
3modalities effective in the detection, prevention, screening,
4and treatment of breast cancer and may include clinical trials.
5The grant funds may not be used for institutional,
6organizational, or community-based overhead costs, indirect
7costs, or levies.
8    Moneys received for the purposes of this Section,
9including, without limitation, net revenue from the special
10instant scratch-off game and gifts, grants, and awards from any
11public or private entity, must be deposited into the Fund. Any
12interest earned on moneys in the Fund must be deposited into
13the Fund.
14    For purposes of this subsection, "net revenue" means the
15total amount for which tickets have been sold less the sum of
16the amount paid out in prizes and the actual administrative
17expenses of the Department solely related to the Ticket For The
18Cure game.
19    (c) During the time that tickets are sold for the Carolyn
20Adams Ticket For The Cure game, the Department shall not
21unreasonably diminish the efforts devoted to marketing any
22other instant scratch-off lottery game.
23    (d) The Department may adopt any rules necessary to
24implement and administer the provisions of this Section.
25(Source: P.A. 96-1290, eff. 7-26-10; 97-92, eff. 7-11-11;
2697-464, eff. 10-15-11; 97-813, eff. 7-13-12.)
 

 

 

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1    (20 ILCS 1605/21.6)
2    Sec. 21.6. Scratch-off for Illinois veterans.
3    (a) The Department shall offer a special instant
4scratch-off game for the benefit of Illinois veterans. The game
5shall commence on January 1, 2006 or as soon thereafter, at the
6discretion of the Director Superintendent, as is reasonably
7practical. The operation of the game shall be governed by this
8Act and any rules adopted by the Department. If any provision
9of this Section is inconsistent with any other provision of
10this Act, then this Section governs.
11    (b) The Illinois Veterans Assistance Fund is created as a
12special fund in the State treasury. The net revenue from the
13Illinois veterans scratch-off game shall be deposited into the
14Fund for appropriation by the General Assembly solely to the
15Department of Veterans Affairs for making grants, funding
16additional services, or conducting additional research
17projects relating to each of the following:
18        (i) veterans' post traumatic stress disorder;
19        (ii) veterans' homelessness;
20        (iii) the health insurance costs of veterans;
21        (iv) veterans' disability benefits, including but not
22    limited to, disability benefits provided by veterans
23    service organizations and veterans assistance commissions
24    or centers;
25        (v) the long-term care of veterans; provided that,

 

 

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1    beginning with moneys appropriated for fiscal year 2008, no
2    more than 20% of such moneys shall be used for health
3    insurance costs; and
4        (vi) veteran employment and employment training.
5    In order to expend moneys from this special fund, beginning
6with moneys appropriated for fiscal year 2008, the Director of
7Veterans' Affairs shall appoint a 3-member funding
8authorization committee. The Director Superintendent shall
9designate one of the members as chairperson. The committee
10shall meet on a quarterly basis, at a minimum, and shall
11authorize expenditure of moneys from the special fund by a
12two-thirds vote. Decisions of the committee shall not take
13effect unless and until approved by the Director of Veterans'
14Affairs. Each member of the committee shall serve until a
15replacement is named by the Director of Veterans' Affairs. One
16member of the committee shall be a member of the Veterans'
17Advisory Council.
18    Moneys collected from the special instant scratch-off game
19shall be used only as a supplemental financial resource and
20shall not supplant existing moneys that the Department of
21Veterans Affairs may currently expend for the purposes set
22forth in items (i) through (v).
23    Moneys received for the purposes of this Section,
24including, without limitation, net revenue from the special
25instant scratch-off game and from gifts, grants, and awards
26from any public or private entity, must be deposited into the

 

 

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1Fund. Any interest earned on moneys in the Fund must be
2deposited into the Fund.
3    For purposes of this subsection, "net revenue" means the
4total amount for which tickets have been sold less the sum of
5the amount paid out in the prizes and the actual administrative
6expenses of the Department solely related to the scratch-off
7game under this Section.
8    (c) During the time that tickets are sold for the Illinois
9veterans scratch-off game, the Department shall not
10unreasonably diminish the efforts devoted to marketing any
11other instant scratch-off lottery game.
12    (d) The Department may adopt any rules necessary to
13implement and administer the provisions of this Section.
14(Source: P.A. 97-464, eff. 10-15-11; 97-740, eff. 7-5-12.)
 
15    (20 ILCS 1605/21.7)
16    Sec. 21.7. Scratch-out Multiple Sclerosis scratch-off
17game.
18    (a) The Department shall offer a special instant
19scratch-off game for the benefit of research pertaining to
20multiple sclerosis. The game shall commence on July 1, 2008 or
21as soon thereafter, in the discretion of the Director
22Superintendent, as is reasonably practical. The operation of
23the game shall be governed by this Act and any rules adopted by
24the Department. If any provision of this Section is
25inconsistent with any other provision of this Act, then this

 

 

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1Section governs.
2    (b) The Multiple Sclerosis Research Fund is created as a
3special fund in the State treasury. The net revenue from the
4scratch-out multiple sclerosis scratch-off game created under
5this Section shall be deposited into the Fund for appropriation
6by the General Assembly to the Department of Public Health for
7the purpose of making grants to organizations in Illinois that
8conduct research pertaining to the repair and prevention of
9damage caused by an acquired demyelinating disease of the
10central nervous system.
11    Moneys received for the purposes of this Section,
12including, without limitation, net revenue from the special
13instant scratch-off game and from gifts, grants, and awards
14from any public or private entity, must be deposited into the
15Fund. Any interest earned on moneys in the Fund must be
16deposited into the Fund.
17    For purposes of this Section, the term "research" includes,
18without limitation, expenditures to develop and advance the
19understanding, techniques, and modalities effective for
20maintaining function, mobility, and strength through
21preventive physical therapy or other treatments and to develop
22and advance the repair, and also the prevention, of myelin,
23neuron, and axon damage caused by an acquired demyelinating
24disease of the central nervous system and the restoration of
25function, including but not limited to, nervous system repair
26or neuroregeneration.

 

 

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1    The grant funds may not be used for institutional,
2organizational, or community-based overhead costs, indirect
3costs, or levies.
4    For purposes of this subsection, "net revenue" means the
5total amount for which tickets have been sold less the sum of
6the amount paid out in the prizes and the actual administrative
7expenses of the Department solely related to the scratch-off
8game under this Section.
9    (c) During the time that tickets are sold for the
10scratch-out multiple sclerosis scratch-off game, the
11Department shall not unreasonably diminish the efforts devoted
12to marketing any other instant scratch-off lottery game.
13    (d) The Department may adopt any rules necessary to
14implement and administer the provisions of this Section.
15(Source: P.A. 97-464, eff. 10-15-11.)
 
16    (20 ILCS 1605/21.8)
17    Sec. 21.8. Quality of Life scratch-off game.
18    (a) The Department shall offer a special instant
19scratch-off game with the title of "Quality of Life". The game
20shall commence on July 1, 2007 or as soon thereafter, in the
21discretion of the Director Superintendent, as is reasonably
22practical, and shall be discontinued on December 31, 2017. The
23operation of the game is governed by this Act and by any rules
24adopted by the Department. The Department must consult with the
25Quality of Life Board, which is established under Section

 

 

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12310-348 of the Department of Public Health Powers and Duties
2Law of the Civil Administrative Code of Illinois, regarding the
3design and promotion of the game. If any provision of this
4Section is inconsistent with any other provision of this Act,
5then this Section governs.
6    (b) The Quality of Life Endowment Fund is created as a
7special fund in the State treasury. The net revenue from the
8Quality of Life special instant scratch-off game must be
9deposited into the Fund for appropriation by the General
10Assembly solely to the Department of Public Health for the
11purpose of HIV/AIDS-prevention education and for making grants
12to public or private entities in Illinois for the purpose of
13funding organizations that serve the highest at-risk
14categories for contracting HIV or developing AIDS. Grants shall
15be targeted to serve at-risk populations in proportion to the
16distribution of recent reported Illinois HIV/AIDS cases among
17risk groups as reported by the Illinois Department of Public
18Health. The recipient organizations must be engaged in
19HIV/AIDS-prevention education and HIV/AIDS healthcare
20treatment. The Department must, before grants are awarded,
21provide copies of all grant applications to the Quality of Life
22Board, receive and review the Board's recommendations and
23comments, and consult with the Board regarding the grants.
24Organizational size will determine an organization's
25competitive slot in the "Request for Proposal" process.
26Organizations with an annual budget of $300,000 or less will

 

 

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1compete with like size organizations for 50% of the Quality of
2Life annual fund. Organizations with an annual budget of
3$300,001 to $700,000 will compete with like organizations for
425% of the Quality of Life annual fund, and organizations with
5an annual budget of $700,001 and upward will compete with like
6organizations for 25% of the Quality of Life annual fund. The
7lottery may designate a percentage of proceeds for marketing
8purpose. The grant funds may not be used for institutional,
9organizational, or community-based overhead costs, indirect
10costs, or levies.
11    Grants awarded from the Fund are intended to augment the
12current and future State funding for the prevention and
13treatment of HIV/AIDS and are not intended to replace that
14funding.
15    Moneys received for the purposes of this Section,
16including, without limitation, net revenue from the special
17instant scratch-off game and gifts, grants, and awards from any
18public or private entity, must be deposited into the Fund. Any
19interest earned on moneys in the Fund must be deposited into
20the Fund.
21    For purposes of this subsection, "net revenue" means the
22total amount for which tickets have been sold less the sum of
23the amount paid out in prizes and the actual administrative
24expenses of the Department solely related to the Quality of
25Life game.
26    (c) During the time that tickets are sold for the Quality

 

 

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1of Life game, the Department shall not unreasonably diminish
2the efforts devoted to marketing any other instant scratch-off
3lottery game.
4    (d) The Department may adopt any rules necessary to
5implement and administer the provisions of this Section in
6consultation with the Quality of Life Board.
7(Source: P.A. 97-464, eff. 10-15-11; 97-1117, eff. 8-27-12.)
 
8    (20 ILCS 1605/27)  (from Ch. 120, par. 1177)
9    Sec. 27. (a) The State Treasurer may, with the consent of
10the Director Superintendent, contract with any person or
11corporation, including, without limitation, a bank, banking
12house, trust company or investment banking firm, to perform
13such financial functions, activities or services in connection
14with operation of the lottery as the State Treasurer and the
15Director Superintendent may prescribe.
16    (b) All proceeds from investments made pursuant to
17contracts executed by the State Treasurer, with the consent of
18the Director Superintendent, to perform financial functions,
19activities or services in connection with operation of the
20lottery, shall be deposited and held by the State Treasurer as
21ex-officio custodian thereof, separate and apart from all
22public money or funds of this State in a special trust fund
23outside the State treasury. Such trust fund shall be known as
24the "Deferred Lottery Prize Winners Trust Fund", and shall be
25administered by the Director Superintendent.

 

 

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1    The Director Superintendent shall, at such times and in
2such amounts as shall be necessary, prepare and send to the
3State Comptroller vouchers requesting payment from the
4Deferred Lottery Prize Winners Trust Fund to deferred prize
5winners, in a manner that will insure the timely payment of
6such amounts owed.
7    This Act shall constitute an irrevocable appropriation of
8all amounts necessary for that purpose, and the irrevocable and
9continuing authority for and direction to the Director
10Superintendent and the State Treasurer to make the necessary
11payments out of such trust fund for that purpose.
12    (c) Moneys invested pursuant to subsection (a) of this
13Section may be invested only in bonds, notes, certificates of
14indebtedness, treasury bills, or other securities constituting
15direct obligations of the United States of America and all
16securities or obligations the prompt payment of principal and
17interest of which is guaranteed by a pledge of the full faith
18and credit of the United States of America. Interest earnings
19on moneys in the Deferred Lottery Prize Winners Trust Fund
20shall remain in such fund and be used to pay the winners of
21lottery prizes deferred as to payment until such obligations
22are discharged. Proceeds from bonds purchased and interest
23accumulated as a result of a grand prize multi-state game
24ticket that goes unclaimed will be transferred after the
25termination of the relevant claim period directly from the
26lottery's Deferred Lottery Prize Winners Trust Fund to each

 

 

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1respective multi-state partner state according to its
2contribution ratio.
3    (c-5) If a deferred lottery prize is not claimed within the
4claim period established by game rule, then the securities or
5other instruments purchased to fund the prize shall be
6liquidated and the liquidated amount shall be transferred to
7the State Lottery Fund for disposition pursuant to Section 19
8of this Act.
9    (c-10) The Director Superintendent may use a portion of the
10moneys in the Deferred Lottery Prize Winners Trust Fund to
11purchase bonds to pay a lifetime prize if the prize duration
12exceeds the length of available securities. If the winner of a
13lifetime prize exceeds his or her life expectancy as determined
14using actuarial assumptions and the securities or moneys set
15aside to pay the prize have been exhausted, moneys in the State
16Lottery Fund shall be used to make payments to the winner for
17the duration of the winner's life.
18    (c-15) From time to time, the Director Superintendent may
19request that the State Comptroller transfer any excess moneys
20in the Deferred Lottery Prize Winners Trust Fund to the State
21Lottery Fund.
22    (d) This amendatory Act of 1985 shall be construed
23liberally to effect the purposes of the Illinois Lottery Law.
24(Source: P.A. 97-464, eff. 10-15-11; revised 10-17-12.)
 
25    (20 ILCS 1605/29)

 

 

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1    Sec. 29. The Department of the Lottery.
2    (a) Executive Order No. 2003-09 is hereby superseded by
3this amendatory Act of the 97th General Assembly to the extent
4that Executive Order No. 2003-09 transfers the powers, duties,
5rights, and responsibilities of the Department of the Lottery
6to the Division of the Lottery within the Department of
7Revenue.
8    (b) The Division of the Lottery within the Department of
9Revenue is hereby abolished and the Department of the Lottery
10is created as an independent department. On the effective date
11of this amendatory Act of the 97th General Assembly, all
12powers, duties, rights, and responsibilities of the Division of
13the Lottery within the Department of Revenue shall be
14transferred to the Department of the Lottery.
15    (c) The personnel of the Division of the Lottery within the
16Department of Revenue shall be transferred to the Department of
17the Lottery. The status and rights of such employees under the
18Personnel Code shall not be affected by the transfer. The
19rights of the employees and the State of Illinois and its
20agencies under the Personnel Code and applicable collective
21bargaining agreements or under any pension, retirement, or
22annuity plan shall not be affected by this amendatory Act of
23the 97th General Assembly. To the extent that an employee
24performs duties for the Division of the Lottery within the
25Department of Revenue and the Department of Revenue itself or
26any other division or agency within the Department of Revenue,

 

 

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1that employee shall be transferred at the Governor's
2discretion.
3    (d) All books, records, papers, documents, property (real
4and personal), contracts, causes of action, and pending
5business pertaining to the powers, duties, rights, and
6responsibilities transferred by this amendatory Act of the 97th
7General Assembly from the Division of the Lottery within the
8Department of Revenue to the Department of the Lottery,
9including, but not limited to, material in electronic or
10magnetic format and necessary computer hardware and software,
11shall be transferred to the Department of the Lottery.
12    (e) All unexpended appropriations and balances and other
13funds available for use by the Division of the Lottery within
14the Department of Revenue shall be transferred for use by the
15Department of the Lottery pursuant to the direction of the
16Governor. Unexpended balances so transferred shall be expended
17only for the purpose for which the appropriations were
18originally made.
19    (f) The powers, duties, rights, and responsibilities
20transferred from the Division of the Lottery within the
21Department of Revenue by this amendatory Act of the 97th
22General Assembly shall be vested in and shall be exercised by
23the Department of the Lottery.
24    (g) Whenever reports or notices are now required to be made
25or given or papers or documents furnished or served by any
26person to or upon the Division of the Lottery within the

 

 

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1Department of Revenue in connection with any of the powers,
2duties, rights, and responsibilities transferred by this
3amendatory Act of the 97th General Assembly, the same shall be
4made, given, furnished, or served in the same manner to or upon
5the Department of the Lottery.
6    (h) This amendatory Act of the 97th General Assembly does
7not affect any act done, ratified, or canceled or any right
8occurring or established or any action or proceeding had or
9commenced in an administrative, civil, or criminal cause by the
10Division of the Lottery within the Department of Revenue before
11this amendatory Act of the 97th General Assembly takes effect;
12such actions or proceedings may be prosecuted and continued by
13the Department of the Lottery.
14    (i) Any rules of the Division of the Lottery within the
15Department of Revenue, including any rules of its predecessor
16Department of the Lottery, that relate to its powers, duties,
17rights, and responsibilities and are in full force on the
18effective date of this amendatory Act of the 97th General
19Assembly shall become the rules of the recreated Department of
20the Lottery. This amendatory Act of the 97th General Assembly
21does not affect the legality of any such rules in the Illinois
22Administrative Code.
23    Any proposed rules filed with the Secretary of State by the
24Division of the Lottery within the Department of Revenue that
25are pending in the rulemaking process on the effective date of
26this amendatory Act of the 97th General Assembly and pertain to

 

 

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1the powers, duties, rights, and responsibilities transferred,
2shall be deemed to have been filed by the Department of the
3Lottery. As soon as practicable hereafter, the Department of
4the Lottery shall revise and clarify the rules transferred to
5it under this amendatory Act of the 97th General Assembly to
6reflect the reorganization of powers, duties, rights, and
7responsibilities affected by this amendatory Act, using the
8procedures for recodification of rules available under the
9Illinois Administrative Procedure Act, except that existing
10title, part, and section numbering for the affected rules may
11be retained. The Department of the Lottery may propose and
12adopt under the Illinois Administrative Procedure Act such
13other rules of the Division of the Lottery within the
14Department of Revenue that will now be administered by the
15Department of the Lottery.
16    To the extent that, prior to the effective date of this
17amendatory Act of the 97th General Assembly, the Superintendent
18of the Division of the Lottery within the Department of Revenue
19had been empowered to prescribe rules or had other rulemaking
20authority jointly with the Director of the Department of
21Revenue with regard to the powers, duties, rights, and
22responsibilities of the Division of the Lottery within the
23Department of Revenue, such duties shall be exercised from and
24after the effective date of this amendatory Act of the 97th
25General Assembly solely by the Superintendent or Director of
26the Department of the Lottery.

 

 

SB2197 Engrossed- 49 -LRB098 05665 AMC 35704 b

1(Source: P.A. 97-464, eff. 10-15-11; 97-813, eff. 7-13-12.)
 
2    Section 99. Effective date. This Act takes effect upon
3becoming law.

 

 

SB2197 Engrossed- 50 -LRB098 05665 AMC 35704 b

1 INDEX
2 Statutes amended in order of appearance
3    20 ILCS 5/5-20was 20 ILCS 5/4
4    20 ILCS 5/5-372 new
5    20 ILCS 1605/3from Ch. 120, par. 1153
6    20 ILCS 1605/5from Ch. 120, par. 1155
7    20 ILCS 1605/6from Ch. 120, par. 1156
8    20 ILCS 1605/7.6from Ch. 120, par. 1157.6
9    20 ILCS 1605/7.8afrom Ch. 120, par. 1157.8a
10    20 ILCS 1605/7.12
11    20 ILCS 1605/9from Ch. 120, par. 1159
12    20 ILCS 1605/10from Ch. 120, par. 1160
13    20 ILCS 1605/13from Ch. 120, par. 1163
14    20 ILCS 1605/14.4
15    20 ILCS 1605/19from Ch. 120, par. 1169
16    20 ILCS 1605/20.1from Ch. 120, par. 1170.1
17    20 ILCS 1605/21from Ch. 120, par. 1171
18    20 ILCS 1605/21.5
19    20 ILCS 1605/21.6
20    20 ILCS 1605/21.7
21    20 ILCS 1605/21.8
22    20 ILCS 1605/27from Ch. 120, par. 1177
23    20 ILCS 1605/29