HB4148sam003 97TH GENERAL ASSEMBLY

Sen. John J. Cullerton

Filed: 5/25/2012

 

 


 

 


 
09700HB4148sam003LRB097 17765 AMC 70198 a

1
AMENDMENT TO HOUSE BILL 4148

2    AMENDMENT NO. ______. Amend House Bill 4148, AS AMENDED, by
3replacing everything after the enacting clause with the
4following:
 
5    "Section 5. The Illinois Administrative Procedure Act is
6amended by changing Section 5-45 as follows:
 
7    (5 ILCS 100/5-45)  (from Ch. 127, par. 1005-45)
8    Sec. 5-45. Emergency rulemaking.
9    (a) "Emergency" means the existence of any situation that
10any agency finds reasonably constitutes a threat to the public
11interest, safety, or welfare.
12    (b) If any agency finds that an emergency exists that
13requires adoption of a rule upon fewer days than is required by
14Section 5-40 and states in writing its reasons for that
15finding, the agency may adopt an emergency rule without prior
16notice or hearing upon filing a notice of emergency rulemaking

 

 

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1with the Secretary of State under Section 5-70. The notice
2shall include the text of the emergency rule and shall be
3published in the Illinois Register. Consent orders or other
4court orders adopting settlements negotiated by an agency may
5be adopted under this Section. Subject to applicable
6constitutional or statutory provisions, an emergency rule
7becomes effective immediately upon filing under Section 5-65 or
8at a stated date less than 10 days thereafter. The agency's
9finding and a statement of the specific reasons for the finding
10shall be filed with the rule. The agency shall take reasonable
11and appropriate measures to make emergency rules known to the
12persons who may be affected by them.
13    (c) An emergency rule may be effective for a period of not
14longer than 150 days, but the agency's authority to adopt an
15identical rule under Section 5-40 is not precluded. No
16emergency rule may be adopted more than once in any 24 month
17period, except that this limitation on the number of emergency
18rules that may be adopted in a 24 month period does not apply
19to (i) emergency rules that make additions to and deletions
20from the Drug Manual under Section 5-5.16 of the Illinois
21Public Aid Code or the generic drug formulary under Section
223.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
23emergency rules adopted by the Pollution Control Board before
24July 1, 1997 to implement portions of the Livestock Management
25Facilities Act, (iii) emergency rules adopted by the Illinois
26Department of Public Health under subsections (a) through (i)

 

 

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1of Section 2 of the Department of Public Health Act when
2necessary to protect the public's health, (iv) emergency rules
3adopted pursuant to subsection (n) of this Section, or (v)
4emergency rules adopted pursuant to subsection (o) of this
5Section. Two or more emergency rules having substantially the
6same purpose and effect shall be deemed to be a single rule for
7purposes of this Section.
8    (d) In order to provide for the expeditious and timely
9implementation of the State's fiscal year 1999 budget,
10emergency rules to implement any provision of Public Act 90-587
11or 90-588 or any other budget initiative for fiscal year 1999
12may be adopted in accordance with this Section by the agency
13charged with administering that provision or initiative,
14except that the 24-month limitation on the adoption of
15emergency rules and the provisions of Sections 5-115 and 5-125
16do not apply to rules adopted under this subsection (d). The
17adoption of emergency rules authorized by this subsection (d)
18shall be deemed to be necessary for the public interest,
19safety, and welfare.
20    (e) In order to provide for the expeditious and timely
21implementation of the State's fiscal year 2000 budget,
22emergency rules to implement any provision of this amendatory
23Act of the 91st General Assembly or any other budget initiative
24for fiscal year 2000 may be adopted in accordance with this
25Section by the agency charged with administering that provision
26or initiative, except that the 24-month limitation on the

 

 

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1adoption of emergency rules and the provisions of Sections
25-115 and 5-125 do not apply to rules adopted under this
3subsection (e). The adoption of emergency rules authorized by
4this subsection (e) shall be deemed to be necessary for the
5public interest, safety, and welfare.
6    (f) In order to provide for the expeditious and timely
7implementation of the State's fiscal year 2001 budget,
8emergency rules to implement any provision of this amendatory
9Act of the 91st General Assembly or any other budget initiative
10for fiscal year 2001 may be adopted in accordance with this
11Section by the agency charged with administering that provision
12or initiative, except that the 24-month limitation on the
13adoption of emergency rules and the provisions of Sections
145-115 and 5-125 do not apply to rules adopted under this
15subsection (f). The adoption of emergency rules authorized by
16this subsection (f) shall be deemed to be necessary for the
17public interest, safety, and welfare.
18    (g) In order to provide for the expeditious and timely
19implementation of the State's fiscal year 2002 budget,
20emergency rules to implement any provision of this amendatory
21Act of the 92nd General Assembly or any other budget initiative
22for fiscal year 2002 may be adopted in accordance with this
23Section by the agency charged with administering that provision
24or initiative, except that the 24-month limitation on the
25adoption of emergency rules and the provisions of Sections
265-115 and 5-125 do not apply to rules adopted under this

 

 

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1subsection (g). The adoption of emergency rules authorized by
2this subsection (g) shall be deemed to be necessary for the
3public interest, safety, and welfare.
4    (h) In order to provide for the expeditious and timely
5implementation of the State's fiscal year 2003 budget,
6emergency rules to implement any provision of this amendatory
7Act of the 92nd General Assembly or any other budget initiative
8for fiscal year 2003 may be adopted in accordance with this
9Section by the agency charged with administering that provision
10or initiative, except that the 24-month limitation on the
11adoption of emergency rules and the provisions of Sections
125-115 and 5-125 do not apply to rules adopted under this
13subsection (h). The adoption of emergency rules authorized by
14this subsection (h) shall be deemed to be necessary for the
15public interest, safety, and welfare.
16    (i) In order to provide for the expeditious and timely
17implementation of the State's fiscal year 2004 budget,
18emergency rules to implement any provision of this amendatory
19Act of the 93rd General Assembly or any other budget initiative
20for fiscal year 2004 may be adopted in accordance with this
21Section by the agency charged with administering that provision
22or initiative, except that the 24-month limitation on the
23adoption of emergency rules and the provisions of Sections
245-115 and 5-125 do not apply to rules adopted under this
25subsection (i). The adoption of emergency rules authorized by
26this subsection (i) shall be deemed to be necessary for the

 

 

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1public interest, safety, and welfare.
2    (j) In order to provide for the expeditious and timely
3implementation of the provisions of the State's fiscal year
42005 budget as provided under the Fiscal Year 2005 Budget
5Implementation (Human Services) Act, emergency rules to
6implement any provision of the Fiscal Year 2005 Budget
7Implementation (Human Services) Act may be adopted in
8accordance with this Section by the agency charged with
9administering that provision, except that the 24-month
10limitation on the adoption of emergency rules and the
11provisions of Sections 5-115 and 5-125 do not apply to rules
12adopted under this subsection (j). The Department of Public Aid
13may also adopt rules under this subsection (j) necessary to
14administer the Illinois Public Aid Code and the Children's
15Health Insurance Program Act. The adoption of emergency rules
16authorized by this subsection (j) shall be deemed to be
17necessary for the public interest, safety, and welfare.
18    (k) In order to provide for the expeditious and timely
19implementation of the provisions of the State's fiscal year
202006 budget, emergency rules to implement any provision of this
21amendatory Act of the 94th General Assembly or any other budget
22initiative for fiscal year 2006 may be adopted in accordance
23with this Section by the agency charged with administering that
24provision or initiative, except that the 24-month limitation on
25the adoption of emergency rules and the provisions of Sections
265-115 and 5-125 do not apply to rules adopted under this

 

 

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1subsection (k). The Department of Healthcare and Family
2Services may also adopt rules under this subsection (k)
3necessary to administer the Illinois Public Aid Code, the
4Senior Citizens and Disabled Persons Property Tax Relief and
5Pharmaceutical Assistance Act, the Senior Citizens and
6Disabled Persons Prescription Drug Discount Program Act (now
7the Illinois Prescription Drug Discount Program Act), and the
8Children's Health Insurance Program Act. The adoption of
9emergency rules authorized by this subsection (k) shall be
10deemed to be necessary for the public interest, safety, and
11welfare.
12    (l) In order to provide for the expeditious and timely
13implementation of the provisions of the State's fiscal year
142007 budget, the Department of Healthcare and Family Services
15may adopt emergency rules during fiscal year 2007, including
16rules effective July 1, 2007, in accordance with this
17subsection to the extent necessary to administer the
18Department's responsibilities with respect to amendments to
19the State plans and Illinois waivers approved by the federal
20Centers for Medicare and Medicaid Services necessitated by the
21requirements of Title XIX and Title XXI of the federal Social
22Security Act. The adoption of emergency rules authorized by
23this subsection (l) shall be deemed to be necessary for the
24public interest, safety, and welfare.
25    (m) In order to provide for the expeditious and timely
26implementation of the provisions of the State's fiscal year

 

 

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12008 budget, the Department of Healthcare and Family Services
2may adopt emergency rules during fiscal year 2008, including
3rules effective July 1, 2008, in accordance with this
4subsection to the extent necessary to administer the
5Department's responsibilities with respect to amendments to
6the State plans and Illinois waivers approved by the federal
7Centers for Medicare and Medicaid Services necessitated by the
8requirements of Title XIX and Title XXI of the federal Social
9Security Act. The adoption of emergency rules authorized by
10this subsection (m) shall be deemed to be necessary for the
11public interest, safety, and welfare.
12    (n) In order to provide for the expeditious and timely
13implementation of the provisions of the State's fiscal year
142010 budget, emergency rules to implement any provision of this
15amendatory Act of the 96th General Assembly or any other budget
16initiative authorized by the 96th General Assembly for fiscal
17year 2010 may be adopted in accordance with this Section by the
18agency charged with administering that provision or
19initiative. The adoption of emergency rules authorized by this
20subsection (n) shall be deemed to be necessary for the public
21interest, safety, and welfare. The rulemaking authority
22granted in this subsection (n) shall apply only to rules
23promulgated during Fiscal Year 2010.
24    (o) In order to provide for the expeditious and timely
25implementation of the provisions of the State's fiscal year
262011 budget, emergency rules to implement any provision of this

 

 

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1amendatory Act of the 96th General Assembly or any other budget
2initiative authorized by the 96th General Assembly for fiscal
3year 2011 may be adopted in accordance with this Section by the
4agency charged with administering that provision or
5initiative. The adoption of emergency rules authorized by this
6subsection (o) is deemed to be necessary for the public
7interest, safety, and welfare. The rulemaking authority
8granted in this subsection (o) applies only to rules
9promulgated on or after the effective date of this amendatory
10Act of the 96th General Assembly through June 30, 2011.
11    (p) In order to provide for the expeditious and timely
12implementation of Internet gaming, the Division of Internet
13Gaming may adopt emergency rules to implement the provisions of
14Section 7.18 of the Illinois Lottery Law. The adoption of
15emergency rules authorized by this subsection (p) shall be
16deemed to be necessary for the public interest, safety, and
17welfare.
18(Source: P.A. 95-12, eff. 7-2-07; 95-331, eff. 8-21-07; 96-45,
19eff. 7-15-09; 96-958, eff. 7-1-10; 96-1500, eff. 1-18-11.)
 
20    Section 10. The Illinois Lottery Law is amended by changing
21Section 2 and by adding Section 7.18 as follows:
 
22    (20 ILCS 1605/2)  (from Ch. 120, par. 1152)
23    Sec. 2. (a) This Act is enacted to implement and establish
24within the State a lottery to be conducted by the State through

 

 

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1the Department. The entire net proceeds of the Lottery are to
2be used for the support of the State's Common School Fund,
3except as provided in subsection (o) of Section 9.1 and
4Sections 21.2, 21.5, 21.6, 21.7, and 21.8. The General Assembly
5finds that it is in the public interest for the Department to
6conduct the functions of the Lottery with the assistance of a
7private manager under a management agreement overseen by the
8Department. The Department shall be accountable to the General
9Assembly and the people of the State through a comprehensive
10system of regulation, audits, reports, and enduring
11operational oversight. The Department's ongoing conduct of the
12Lottery through a management agreement with a private manager
13shall act to promote and ensure the integrity, security,
14honesty, and fairness of the Lottery's operation and
15administration. It is the intent of the General Assembly that
16the Department shall conduct the Lottery with the assistance of
17a private manager under a management agreement at all times in
18a manner consistent with 18 U.S.C. 1307(a)(1), 1307(b)(1),
191953(b)(4).
20    (b) It is further the intent of the General Assembly that
21the Division of Internet Gaming of the Department shall conduct
22Internet wagering at all times in a manner consistent with the
23applicable provisions of State and federal law pursuant to
24Section 7.18 of this Law.
25(Source: P.A. 95-331, eff. 8-21-07; 95-673, eff. 10-11-07;
2695-674, eff. 10-11-07; 95-876, eff. 8-21-08; 96-34, eff.

 

 

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17-13-09.)
 
2    (20 ILCS 1605/7.18 new)
3    Sec. 7.18. Internet gaming; Division of Internet Gaming;
4powers.
5    (a) The General Assembly finds that the Internet has become
6an integral part of everyday life for a significant number of
7Illinois residents, not only in regards to their professional
8life, but also in regards to personal business and
9communication. Internet wagering on games of chance and games
10of skill is a core form of entertainment for millions of
11individuals worldwide. In multiple jurisdictions across the
12world, Internet gaming is legal, regulated, and taxed,
13generating billions of dollars in revenue for governments.
14    The General Assembly further finds that Illinois residents
15participate in illegal on-line gambling on unregulated
16Internet websites operated by offshore operators who are not
17subject to regulation or taxation in the United States. Neither
18federal nor Illinois laws provide sufficient consumer
19protections for Illinois residents who play games of chance or
20skill on these illegal websites, nor does the State realize any
21benefits from the revenues generated by illegal on-line gaming.
22    On September 20, 2011, the United States Department of
23Justice issued an opinion reversing its previous
24interpretation of the federal Wire Act, 18 U.S.C. 1804,
25allowing states, subject to certain restrictions, to legalize

 

 

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1and regulate Internet gaming and capture the revenue for the
2benefit of state governments. The Department of Justice's
3opinion was prompted in part by a request made by the
4Department pursuant to Public Act 96-34. In order to protect
5Illinois residents who wager on games of chance and skill
6through the Internet, and to capture revenues generated from
7Internet gaming, it is in the best interest of the State and
8its citizens to regulate this activity by authorizing and
9establishing a secure, responsible, fair, and legal system of
10Internet gaming that complies with the United States Department
11of Justice's September 2011 opinion concerning the federal Wire
12Act. It is also in the best interest of the State to establish
13an Internet gaming platform consistent with the provisions of
14this Section to ensure that Illinois is not precluded from
15reaping the benefits of Internet gaming as contemplated by
16proposed federal legislation pending before the United States
17Senate.
18    The General Assembly additionally finds that pursuant to
19the federal Unlawful Internet Gambling Enforcement Act of 2006
20(UIEGA), 31 U.S.C. 5301, the provisions of this Section
21prescribe a lawful exemption to UIEGA and specifically
22authorize use of the Internet to place, receive, or otherwise
23knowingly transmit a bet or wager where Internet wagering
24complies with this Section and rules adopted pursuant to this
25Section.
26    (b) As used in this Section:

 

 

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1    "Internet" means the international computer network of
2interoperable packet-switched data networks, inclusive of such
3additional technological platforms as mobile, satellite, and
4other electronic distribution channels approved by the
5Division.
6    "Internet game" means any variation or composite of an
7authorized game that is offered through the Internet so long as
8such games, or variations or composites, are found suitable for
9use by the Division after an appropriate test or experimental
10period. "Internet game" also includes gaming tournaments
11conducted via the Internet in which players compete against one
12another in one or more of the games authorized in this
13definition or by the Division or in approved variations or
14composites as authorized by the Division.
15    "Internet gaming platform" means an interactive set of
16related data networks controlled by the Division that may be
17accessed by licensed Internet gaming affiliates for the purpose
18of offering wagering on Internet games to authorized
19participants.
20    "Internet wagering" means the placing of wagers using the
21Division's Internet gaming platform through which licensed
22Internet gaming affiliates may offer Internet games to persons
23who have established an Internet wagering account with the
24Division and who are either physically present in Illinois when
25placing a wager or otherwise permitted to place a wager by law.
26The intermediate routing of electronic data in connection with

 

 

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1Internet wagering shall not determine the location or locations
2in which a wager is initiated, received, or otherwise made.
3    "Internet wagering account" means an electronic ledger
4wherein the following types of transactions relative to the
5Internet wager system are recorded: (i) deposits; (ii)
6withdrawals; (iii) amounts wagered; (iv) amounts paid on
7winning wagers; (v) service or other transaction-related
8charges authorized by the patron; and (vi) adjustments to the
9account.
10    "Licensed Internet gaming affiliate" means an individual
11who is licensed by the Division to offer wagering on Internet
12games to authorized participants using the Division's Internet
13gaming platform.
14    (c) The Division of Internet Gaming is established within
15the Department of the Lottery, and is authorized to establish
16an Internet gaming platform that may be accessed by licensed
17Internet gaming affiliates in order to offer wagering on
18Internet games to individuals who are (1) 21 years of age or
19older and (2) physically located within the State of Illinois
20or otherwise permitted to place wagers as provided by law. To
21the extent consistent with the provisions of this Section, the
22Division shall be subject to and governed by provisions of this
23Article and all of the laws and rules applicable to the
24Department. The Division shall not be subject to any private
25management agreement established pursuant to Section 9.1 of
26this Act. The Division of Internet Gaming is also authorized to

 

 

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1enter into agreements with other state gaming entities for the
2purpose of offering multistate Internet games to the extent
3consistent with State and federal laws. The Division shall not
4offer Internet wagering on any sporting event or contest,
5unless doing so is consistent with State and federal laws. The
6Division shall be funded with moneys appropriated to the
7Department of the Lottery, as well as from the proceeds of
8Internet gaming pursuant to subsection (l) of this Section.
9    (d) The Division of Internet Gaming shall only offer
10wagering on Internet games through the use of licensed Internet
11gaming affiliates and shall not directly offer wagering on
12Internet games to authorized participants. Licensed Internet
13gaming affiliates shall not offer wagering on Internet games to
14authorized participants unless such wagering is conducted
15using the Division's Internet gaming platform. The following
16individuals shall be eligible for licensure by the Division as
17licensed Internet gaming affiliates: (i) any person who holds a
18valid and unrevoked owners license issued pursuant to the
19Riverboat Gambling Act; (ii) any person who holds a valid and
20unrevoked organization license issued pursuant to the Illinois
21Horse Racing Act of 1975; and (iii) any person who holds a
22valid and unrevoked advance deposit wagering license issued
23pursuant to the Illinois Horse Racing Act of 1975.
24    A qualified person may apply to the Division for an
25Internet gaming affiliate license to offer wagering on Internet
26games using the Division's Internet gaming platform as provided

 

 

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1in this Act. The application shall be made on forms provided by
2the Division and shall contain such information as the Division
3prescribes, including, but not limited to, detailed
4information regarding the ownership and management of the
5applicant and detailed personal information regarding the
6applicant. An incomplete application shall be cause for denial
7of a license by the Division.
8    A fee of $5,000,000 shall be paid to the Division along
9with the application for licensure. All information, records,
10interviews, reports, statements, memoranda, or other data
11supplied to or used by the Division in the course of its review
12or investigation of an application for an Internet gaming
13affiliate license or a renewal under this Section shall be
14privileged, strictly confidential, and used only for the
15purpose of evaluating an applicant for a license or a renewal.
16A person who knowingly makes a false statement on an
17application is guilty of a Class A misdemeanor.
18    An application shall be filed and considered in accordance
19with the rules of the Division. The Division shall adopt rules
20to effectuate the provisions of this subsection within 30 days
21after the effective date of this amendatory Act of the 97th
22General Assembly.
23    (e) The Division shall have all powers necessary or
24desirable to effectuate the provisions of this Section,
25including, but not limited to, the power to:
26        (1) establish an Internet gaming platform for the

 

 

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1    purpose of offering wagering on Internet games by licensed
2    Internet gaming affiliates;
3        (2) establish procedures for use of and access to the
4    Division's Internet gaming platform by licensed Internet
5    gaming affiliates;
6        (3) accept wagers on Internet games offered on the
7    Division's Internet gaming platform;
8        (4) pay prizes to winners of Internet games;
9        (5) enter into contracts with any person, firm, or
10    corporation, including, but not limited to, contracts with
11    Internet gaming hub software providers, age and
12    identification software providers, geolocation software
13    providers, and other vendors that the Division deems
14    necessary for the establishment and maintenance of the
15    Internet gaming platform;
16        (6) acquire or lease real property and make
17    improvements thereon and acquire by lease or by purchase
18    personal property, including, but not limited to:
19            (A) computers;
20            (B) mechanical, electronic, and online equipment
21        and terminals; and
22            (C) intangible property, including, but not
23        limited to, computer programs, software, and systems;
24        and
25        (7) hold copyrights, trademarks, service marks, and
26    other intellectual property; pursuant to Section 7 of the

 

 

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1    Illinois Freedom of Information Act, such intellectual
2    property shall be exempt from disclosure; and
3        (8) enforce any rights held under paragraph (7) of this
4    subsection.
5    (f) The Division shall adopt such rules governing the
6administration and conduct of Internet gaming as it deems
7necessary to carry out the purpose of this Section. These rules
8shall be subject to the provisions of the Illinois
9Administrative Procedure Act and may include, but shall not be
10limited to:
11        (1) the types of Internet games to be offered;
12        (2) price points for Internet games;
13        (3) player fees and percentage of rake for Internet
14    games;
15        (4) player fees and percentage of rake payable to
16    licensed Internet gaming affiliates;
17        (5) forms of payment accepted for Internet games;
18        (6) the number, type, and amount of prizes for Internet
19    games;
20        (7) the method of selecting winners and validating
21    winnings;
22        (8) the manner and time for payment of prizes,
23    winnings, and sums due to licensed Internet gaming
24    affiliates;
25        (9) the frequency of Internet games;
26        (10) responsible gaming;

 

 

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1        (11) the Internet gaming platform;
2        (12) such other matters necessary or desirable for the
3    efficient and economical operation and administration of
4    Internet gaming and for the convenience of authorized
5    Internet gaming participants and licensed Internet gaming
6    affiliates.
7    The Division shall also issue written game rules, play
8instructions, directives, operations manuals, brochures, or
9any other publications necessary to conduct specific Internet
10games, as authorized by rule by the Division. Except for
11materials that the Division deems to be intellectual property,
12written game rules, instructions, directives, operations
13manuals, brochures, or other game publications issued by the
14Division that relate to specific Internet games offered by the
15Division shall be posted on the Division's Internet website and
16shall also be maintained as public records in the Division's
17principal office, and made available for public inspection and
18copying, but shall be exempt from the rulemaking procedures of
19the Illinois Administrative Procedure Act.
20    (g) Notwithstanding any law to the contrary, the
21Superintendent of the Lottery shall hire an Executive Director
22who shall be responsible to the Superintendent and shall serve
23subject only to removal by the Superintendent for incompetence,
24neglect of duty, or malfeasance in office. The Executive
25Director shall be responsible for the supervision and direction
26of the Division staff and for the necessary administrative

 

 

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1activities of the Division, subject only to the direction and
2approval of the Superintendent notwithstanding any law to the
3contrary.
4    Notwithstanding any law to the contrary, the Executive
5Director shall hire and employ employees as may be necessary to
6carry out the provisions of this Law or to perform the duties
7and exercise the powers conferred by law upon the Division. All
8employees of the Division shall receive the compensation fixed
9by the Executive Director, subject only to the Superintendent.
10The Superintendent, Executive Director, and Division employees
11shall be reimbursed for all actual and necessary traveling and
12other expenses and disbursements necessarily incurred or made
13by them in the discharge of their official duties. The
14Superintendent and Executive Director may also incur necessary
15expenses for office space, furniture, stationery, printing,
16operations, and other incidental expenses.
17    The Executive Director shall report monthly to the
18Superintendent, the State Treasurer, and the Lottery Control
19Board a full and complete statement of Internet gaming
20revenues, prize disbursements, payments to licensed Internet
21gaming affiliates, and other expenses for each month and the
22amounts to be transferred to the State Lottery Fund pursuant to
23this Section. The Executive Director shall also make an annual
24report, which shall include a full and complete statement of
25Internet gaming revenues, prize disbursements, payments to
26licensed Internet gaming affiliates, and other expenses, to the

 

 

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1Superintendent, the Governor, and the Board. All reports
2required by this subsection shall be public and copies of all
3such reports shall be sent to the Speaker of the House of
4Representatives, the President of the Senate, the Minority
5Leader of the House of Representatives, and the Minority Leader
6of the Senate.
7    The Executive Director shall make a continuous study and
8investigation of: (i) the operation and the administration of
9similar Internet gaming laws that may be in effect in other
10states or countries; (ii) any literature on Internet gaming
11that from time to time may be published or available; (iii) any
12federal laws that may affect the operation of Internet gaming;
13and (iv) the reaction of Illinois citizens to existing and
14potential features of Internet gaming with a view to
15recommending or effecting changes that will tend to serve the
16purposes of this Section.
17    (h) The Chief Procurement Officer for the needs of State
18agencies (Chief Procurement Officer), in consultation with the
19Division, shall procure one or more of the following private
20vendors: (i) Internet gaming hub software providers; (ii) age
21and identification software providers; and (iii) geolocation
22software providers. Except for Section 26-160 and Article 50 of
23the Illinois Procurement Code, the procurement of private
24vendors for Internet gaming hub software, age and
25identification software and geolocation software is subject to
26administration by the Chief Procurement Officer, but is not

 

 

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1subject to the requirements of the Illinois Procurement Code.
2Within 45 days after the effective date of this amendatory Act
3of the 97th General Assembly, the Chief Procurement Officer
4shall establish a process for awarding contracts under this
5subsection that is consistent with the requirements of 20-35 of
6the Illinois Procurement Code. The Chief Procurement Officer
7shall make the process available on the Division's Internet
8website and shall publish the process in the Illinois
9Procurement Bulletin. Contracts for the procurement of
10services from Internet gaming hub software providers, age and
11identification software providers, and geolocation software
12providers shall be based upon criteria determined by the Chief
13Procurement Officer and the Division. The procurement of
14vendors pursuant to this subsection shall be completed within
1590 days after the effective date of this amendatory Act of the
1697th General Assembly.
17    (i) The Division's Internet gaming platform shall provide
18one or more mechanisms to verify that a participant is 21 years
19of age or older and that wagering on Internet games is limited
20to transactions that are initiated and received or otherwise
21made exclusively within the State of Illinois. A participant
22must satisfy the verification requirements before he or she may
23establish an Internet gaming account and wager on Internet
24games offered by licensed Internet gaming affiliates using the
25Division's Internet gaming platform. At such a time that a
26legally compliant mechanism is established to permit wagering

 

 

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1on Internet games by individuals physically located outside of
2the State, the Division shall adopt rules and procedures to
3allow and govern wagering by those individuals. By rule, the
4Division shall establish funding procedures for Internet
5gaming accounts and shall provide a mechanism to prevent the
6unauthorized use of Internet gaming accounts. By rule, the
7Division shall also establish procedures to detect and prevent
8fraud and collusion in Internet gaming offered by licensed
9Internet gaming affiliates using the Division's Internet
10gaming platform. If any participant in Internet gaming violates
11any provisions of this Section or rule adopted by the Division,
12then the participant's winnings shall be forfeited. Any
13forfeited winnings shall be deposited into the State Lottery
14Fund.
15    The following persons shall not be authorized to establish
16Internet gaming accounts or wager on Internet games offered by
17licensed Internet gaming affiliates using the Division's
18Internet gaming platform: (i) any minor under 21 years of age;
19(ii) any member of the Lottery Control Board; (iii) any officer
20or other person employed by the Department of the Lottery or
21the Division of Internet Gaming; (iv) any spouse, child,
22brother, sister, or parent residing as a member of the same
23household in the principal place of abode of any persons
24identified in (ii) or (iii); and (iv) any individual whose name
25appears in the Division's responsible gaming database.
26    (j) The Division shall develop responsible gaming

 

 

09700HB4148sam003- 24 -LRB097 17765 AMC 70198 a

1measures, including a statewide responsible gaming database
2identifying individuals who shall be prohibited from
3establishing an Internet gaming account or participating in
4Internet gaming. The Executive Director may place a person on
5the responsible gaming database if that person (i) has been
6convicted in any jurisdiction of a felony, any crime of moral
7turpitude, or a crime involving gaming; (ii) has violated this
8Act, the Illinois Horse Racing Act of 1975, the Riverboat
9Gambling Act, the Raffles Act, the Illinois Pull Tabs and Jar
10Games Act, the Bingo License and Tax Act, the Charitable Games
11Act, or the Video Gaming Act; (iii) has performed any act or
12had a notorious or unsavory reputation that would adversely
13affect public confidence and trust in gaming; or (iv) has his
14or her name on any valid and current exclusion list from
15another jurisdiction in the United States. By rule, the
16Division shall adopt procedures for the establishment and
17maintenance of the responsible gaming database. The Illinois
18Gaming Board, the Illinois Racing Board, and the Department of
19the Lottery shall, in a format specified by the Division,
20provide the Division with names of individuals to be included
21in the responsible gaming database. The Division may impose
22reasonable fees on persons authorized to access and use the
23responsible gaming database.
24    The Division's Internet gaming platform shall offer
25responsible gambling services and technical controls to
26players, including both temporary and permanent self-exclusion

 

 

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1for all games offered; the ability for players to establish
2their own periodic deposit and wagering limits and maximum
3playing times; referrals to crisis counseling and referral
4services for individuals and families experiencing difficulty
5as a result of problem or compulsive gambling; and other
6services as the Division reasonably may determine are necessary
7or appropriate to reduce and prevent problem gambling. Any
8authorized participant who is allowed to participate in
9Internet gaming may voluntarily prohibit themselves from
10establishing an Internet gaming account. The Division shall
11incorporate the voluntary self-exclusion list for Internet
12gaming accounts into the responsible gaming database.
13    (k) There is created the Responsible Internet Gaming
14Advisory Board, consisting of the following members:
15        (1) the Superintendent of the Lottery, who shall be an
16    ex officio member and shall serve as Chairperson;
17        (2) the Executive Director of the Division of Internet
18    Gaming, who shall be an ex officio member;
19        (3) one representative from a national organization
20    dedicated to the study and prevention of problem gambling,
21    appointed by the Superintendent;
22        (4) one member who is an academic professional engaged
23    in the study of problem gambling at a university or other
24    institution of higher learning, appointed by the
25    Superintendent;
26        (5) one member who has professional experience and

 

 

09700HB4148sam003- 26 -LRB097 17765 AMC 70198 a

1    expertise in the field of technical controls for
2    responsible Internet gaming, appointed by the
3    Superintendent; and
4        (6) one member who is an Illinois citizen and a member
5    of the public, appointed by the Superintendent.
6    Each Advisory Board member shall serve for a term of 4
7years and until his or her successor is appointed and
8qualified. However, in making initial appointments, 2 shall be
9appointed to serve for 2 years and 2 shall be appointed to
10serve for 4 years. Appointments to fill vacancies shall be made
11in the same manner as original appointments for the unexpired
12portion of the vacated term. Initial terms shall begin on the
13effective date of this amendatory Act of the 97th General
14Assembly. Each member of the Advisory Board shall be eligible
15for reappointment at the discretion of the Superintendent. A
16member of the Advisory Board may be removed from office for
17just cause. Advisory Board members shall receive no
18compensation, but shall be reimbursed for expenses incurred in
19connection with their duties as Advisory Board members.
20    Four members shall constitute a quorum. A majority vote of
21the Advisory Board is required for an Advisory Board decision.
22The Advisory Board shall meet no less often than once every 6
23months and shall meet as often as the Chairperson deems
24necessary. Advisory Board members shall not be liable for any
25of their acts, omissions, decisions, or any other conduct in
26connection with their duties on the Advisory Board, except

 

 

09700HB4148sam003- 27 -LRB097 17765 AMC 70198 a

1those involving willful, wanton, or intentional misconduct.
2    The Advisory Board shall make recommendations to the
3Executive Director regarding the development of rules and
4procedures to reduce and prevent problem or compulsive gambling
5and to ensure the conduct of safe, fair, and responsible
6Internet gaming. The Advisory Board may have such powers as may
7be granted by the Executive Director to carry out the
8provisions of this Section regarding responsible Internet
9gaming.
10    (l) The Division shall distribute all proceeds of Internet
11gaming in the following priority and manner:
12        (1) the payment of prizes and winnings;
13        (2) the payment of costs incurred in the operation and
14    administration of the Division of Internet Gaming,
15    including the payment of sums due to licensed Internet
16    gaming affiliates; and
17        (3) on or before the last day of each fiscal year, any
18    remaining proceeds, subject to payments under items (1) and
19    (2), shall be deposited into the State Lottery Fund.
20    (m) There is created the Internet Gaming Advisory Committee
21as an advisory body within the Division of Internet Gaming. The
22Committee shall consist of the following members:
23        (1) the Superintendent of the Lottery, who shall be an
24    ex officio member and shall serve as Chairman;
25        (2) the Executive Director of the Division of Internet
26    Gaming, who shall serve ex officio;

 

 

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1        (3) one member appointed by the Governor's Office;
2        (4) one member who represents owners licensees under
3    the Riverboat Gambling Act, appointed by the
4    Superintendent;
5        (5) one member who represents organization licensees
6    under the Illinois Horse Racing Act of 1975, appointed by
7    the Superintendent;
8        (6) one member who represents horsemen, appointed by
9    the Superintendent; and
10        (7) one member who represents licensees under the Video
11    Gaming Act, appointed by the Superintendent.
12    Each Committee member shall serve for a term of 4 years and
13until his or her successor is appointed and qualified.
14Appointments to fill vacancies shall be made in the same manner
15as original appointments for the unexpired portion of the
16vacated term. Initial terms shall begin upon the effective date
17of this amendatory Act of the 97th General Assembly. Each
18member of the Committee shall be eligible for reappointment at
19the discretion of the Superintendent or the Governor. The
20Committee shall meet as often as the Chairperson deems
21necessary. Members of the Committee shall serve without
22compensation, but shall be reimbursed, within the limits of
23funds available to the Division, for necessary expenses
24incurred in the performance of their duties.
25    The Committee shall conduct an ongoing study to determine
26(i) the impact of Internet gaming on licensees under the

 

 

09700HB4148sam003- 29 -LRB097 17765 AMC 70198 a

1Illinois Horse Racing Act of 1975, the Riverboat Gambling Act,
2and the Video Gaming Act and (ii) the propriety and viability
3of alternative regulatory models or frameworks for Internet
4gaming to the extent consistent with the objectives set forth
5in subsection (a) of this Section. The Committee shall issue
6annual reports, which shall also include recommendations
7concerning prospective action on behalf of the General Assembly
8concerning Internet gaming. The Committee shall issue its first
9report no later than December 31, 2013.
 
10    Section 15. The Illinois Procurement Code is amended by
11changing Section 1-10 as follows:
 
12    (30 ILCS 500/1-10)
13    Sec. 1-10. Application.
14    (a) This Code applies only to procurements for which
15contractors were first solicited on or after July 1, 1998. This
16Code shall not be construed to affect or impair any contract,
17or any provision of a contract, entered into based on a
18solicitation prior to the implementation date of this Code as
19described in Article 99, including but not limited to any
20covenant entered into with respect to any revenue bonds or
21similar instruments. All procurements for which contracts are
22solicited between the effective date of Articles 50 and 99 and
23July 1, 1998 shall be substantially in accordance with this
24Code and its intent.

 

 

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1    (b) This Code shall apply regardless of the source of the
2funds with which the contracts are paid, including federal
3assistance moneys. This Code shall not apply to:
4        (1) Contracts between the State and its political
5    subdivisions or other governments, or between State
6    governmental bodies except as specifically provided in
7    this Code.
8        (2) Grants, except for the filing requirements of
9    Section 20-80.
10        (3) Purchase of care.
11        (4) Hiring of an individual as employee and not as an
12    independent contractor, whether pursuant to an employment
13    code or policy or by contract directly with that
14    individual.
15        (5) Collective bargaining contracts.
16        (6) Purchase of real estate, except that notice of this
17    type of contract with a value of more than $25,000 must be
18    published in the Procurement Bulletin within 7 days after
19    the deed is recorded in the county of jurisdiction. The
20    notice shall identify the real estate purchased, the names
21    of all parties to the contract, the value of the contract,
22    and the effective date of the contract.
23        (7) Contracts necessary to prepare for anticipated
24    litigation, enforcement actions, or investigations,
25    provided that the chief legal counsel to the Governor shall
26    give his or her prior approval when the procuring agency is

 

 

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1    one subject to the jurisdiction of the Governor, and
2    provided that the chief legal counsel of any other
3    procuring entity subject to this Code shall give his or her
4    prior approval when the procuring entity is not one subject
5    to the jurisdiction of the Governor.
6        (8) Contracts for services to Northern Illinois
7    University by a person, acting as an independent
8    contractor, who is qualified by education, experience, and
9    technical ability and is selected by negotiation for the
10    purpose of providing non-credit educational service
11    activities or products by means of specialized programs
12    offered by the university.
13        (9) Procurement expenditures by the Illinois
14    Conservation Foundation when only private funds are used.
15        (10) Procurement expenditures by the Illinois Health
16    Information Exchange Authority involving private funds
17    from the Health Information Exchange Fund. "Private funds"
18    means gifts, donations, and private grants.
19        (11) Public-private agreements entered into according
20    to the procurement requirements of Section 20 of the
21    Public-Private Partnerships for Transportation Act and
22    design-build agreements entered into according to the
23    procurement requirements of Section 25 of the
24    Public-Private Partnerships for Transportation Act.
25    (c) This Code does not apply to the electric power
26procurement process provided for under Section 1-75 of the

 

 

09700HB4148sam003- 32 -LRB097 17765 AMC 70198 a

1Illinois Power Agency Act and Section 16-111.5 of the Public
2Utilities Act.
3    (d) Except for Section 20-160 and Article 50 of this Code,
4and as expressly required by Section 9.1 of the Illinois
5Lottery Law, the provisions of this Code do not apply to the
6procurement process provided for under Section 9.1 of the
7Illinois Lottery Law. In addition, except for Section 20-160
8and Article 50 of this Code, the provisions of this Code also
9do not apply to contracts and subcontracts awarded pursuant to
10Section 7.18 of the Illinois Lottery Law.
11    (e) This Code does not apply to the process used by the
12Capital Development Board to retain a person or entity to
13assist the Capital Development Board with its duties related to
14the determination of costs of a clean coal SNG brownfield
15facility, as defined by Section 1-10 of the Illinois Power
16Agency Act, as required in subsection (h-3) of Section 9-220 of
17the Public Utilities Act, including calculating the range of
18capital costs, the range of operating and maintenance costs, or
19the sequestration costs or monitoring the construction of clean
20coal SNG brownfield facility for the full duration of
21construction.
22    (f) This Code does not apply to the process used by the
23Illinois Power Agency to retain a mediator to mediate sourcing
24agreement disputes between gas utilities and the clean coal SNG
25brownfield facility, as defined in Section 1-10 of the Illinois
26Power Agency Act, as required under subsection (h-1) of Section

 

 

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19-220 of the Public Utilities Act.
2    (g) (e) This Code does not apply to the processes used by
3the Illinois Power Agency to retain a mediator to mediate
4contract disputes between gas utilities and the clean coal SNG
5facility and to retain an expert to assist in the review of
6contracts under subsection (h) of Section 9-220 of the Public
7Utilities Act. This Code does not apply to the process used by
8the Illinois Commerce Commission to retain an expert to assist
9in determining the actual incurred costs of the clean coal SNG
10facility and the reasonableness of those costs as required
11under subsection (h) of Section 9-220 of the Public Utilities
12Act.
13(Source: P.A. 96-840, eff. 12-23-09; 96-1331, eff. 7-27-10;
1497-96, eff. 7-13-11; 97-239, eff. 8-2-11; 97-502, eff. 8-23-11;
15revised 9-7-11.)
 
16    Section 99. Effective date. This Act takes effect upon
17becoming law.".