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1 | AN ACT concerning State government.
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2 | Be it enacted by the People of the State of Illinois,
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3 | represented in the General Assembly:
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4 | Section 5. The Illinois Lottery Law is amended by changing | ||||||
5 | Sections 2, 7.2, 9, 19, 20, and 20.1 and by adding Section 20.2 | ||||||
6 | as follows:
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7 | (20 ILCS 1605/2) (from Ch. 120, par. 1152)
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8 | Sec. 2. This Act is enacted to implement and establish | ||||||
9 | within the State
a lottery to be operated by the State, the | ||||||
10 | entire net proceeds of which
are to be used for the support of | ||||||
11 | the State's Lottery Supports Schools Fund Common School Fund ,
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12 | except as provided in Sections 21.2, 21.5, 21.6, 21.7, and | ||||||
13 | 21.8.
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14 | (Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05; | ||||||
15 | 95-331, eff. 8-21-07; 95-673, eff. 10-11-07; 95-674, eff. | ||||||
16 | 10-11-07; 95-876, eff. 8-21-08.)
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17 | (20 ILCS 1605/7.2) (from Ch. 120, par. 1157.2)
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18 | Sec. 7.2. The rules and regulations of the Department may | ||||||
19 | include, but
shall not be limited to, the following:
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20 | (1) The types of lotteries to be conducted;
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21 | (2) The price, or prices, of tickets or shares in the | ||||||
22 | lottery;
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1 | (3) The numbers and sizes of the prizes on the winning | ||||||
2 | tickets or
shares;
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3 | (4) The manner of selecting the winning tickets or shares;
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4 | (5) The manner of payment of prizes to the holders of | ||||||
5 | winning
tickets or shares;
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6 | (6) The frequency of the drawing or selections of winning | ||||||
7 | tickets or
shares, without limitation;
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8 | (7) Without limit to number, the type or types of locations | ||||||
9 | at which
tickets or shares may be sold;
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10 | (8) The method to be used in selling tickets or shares;
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11 | (9) The manner and amount of compensation, if any, to be | ||||||
12 | paid
licensed sales agents necessary to provide for the | ||||||
13 | adequate availability
of tickets or shares to prospective | ||||||
14 | buyers and for the convenience of
the public;
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15 | (10) The apportionment of the total revenues accruing from | ||||||
16 | the sale
of lottery tickets or shares and from all other | ||||||
17 | sources among (i) the
payment of prizes to the holders of | ||||||
18 | winning tickets or shares, (ii) the
payment of costs incurred | ||||||
19 | in the operation and administration of the
lottery, including | ||||||
20 | the expenses of the Department and the costs resulting
from any | ||||||
21 | contract or contracts entered into for promotional, | ||||||
22 | advertising
or operational services or for the purchase or | ||||||
23 | lease of lottery
equipment and materials, and (iii) for monthly | ||||||
24 | transfers to the Lottery Supports Schools Fund Common
School | ||||||
25 | Fund . The net revenues accruing from the sale of lottery | ||||||
26 | tickets
shall be determined by deducting from total revenues |
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1 | the payments required
by paragraphs (i) and (ii) of this
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2 | subsection.
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3 | (11) Such other matters necessary or desirable for the | ||||||
4 | efficient and
economical operation and administration of the | ||||||
5 | lottery and for the
convenience of the purchasers of tickets or | ||||||
6 | shares and the holders of
winning tickets or shares.
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7 | Any rules and regulations of the Department with respect to
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8 | monthly transfers
to the Lottery Supports Schools Fund Common | ||||||
9 | School Fund are subject to Section 21.2.
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10 | (Source: P.A. 84-1128.)
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11 | (20 ILCS 1605/9) (from Ch. 120, par. 1159)
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12 | Sec. 9. The Superintendent, as administrative head of
the | ||||||
13 | Division, shall direct and supervise all its administrative and
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14 | technical activities and shall report to the Director. In | ||||||
15 | addition to the duties imposed upon him
elsewhere in this Act, | ||||||
16 | it
shall be the Superintendent's duty:
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17 | a. To supervise and administer the operation of the lottery | ||||||
18 | in
accordance with the provisions of this Act or such
rules and | ||||||
19 | regulations of the Department
adopted thereunder.
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20 | b. To attend meetings of the Board or to appoint a designee | ||||||
21 | to
attend in his stead.
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22 | c. To employ and direct such personnel in accord with the | ||||||
23 | Personnel Code,
as may be necessary to carry out the purposes | ||||||
24 | of this Act. The Superintendent may, subject to the approval of | ||||||
25 | the Director, use the services, personnel, or facilities of the |
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1 | Department.
In addition, the Superintendent
may by agreement | ||||||
2 | secure such services as he or she may deem necessary
from any | ||||||
3 | other department, agency, or unit of the State government, and
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4 | may employ and compensate such consultants and technical | ||||||
5 | assistants as may
be required and is otherwise permitted by | ||||||
6 | law.
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7 | d. To license, in accordance with the provisions of | ||||||
8 | Sections 10 and 10.1
of this Act and the rules and regulations | ||||||
9 | of the Department
adopted thereunder,
as agents to sell lottery | ||||||
10 | tickets such persons as in his opinion will best
serve the | ||||||
11 | public convenience and promote the sale of tickets or shares.
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12 | The Superintendent may require a bond from every licensed | ||||||
13 | agent, in such
amount as provided in the rules and regulations | ||||||
14 | of the Department. Every licensed
agent shall prominently | ||||||
15 | display his license, or a copy thereof, as provided
in the | ||||||
16 | rules and regulations of the Department.
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17 | e. To suspend or revoke any license issued pursuant to this | ||||||
18 | Act or the
rules and regulations promulgated by the Department | ||||||
19 | thereunder.
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20 | f. To confer regularly as necessary or desirable and not
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21 | less than once
every month with the Lottery Control Board on | ||||||
22 | the operation and administration
of the Lottery; to make | ||||||
23 | available for inspection by the Board or any member
of the | ||||||
24 | Board, upon request, all books, records, files, and other | ||||||
25 | information
and documents of his office; to advise the Board | ||||||
26 | and recommend such rules
and regulations and such other matters |
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1 | as he deems necessary and advisable
to improve the operation | ||||||
2 | and administration of the lottery.
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3 | g. To enter into contracts for the operation of the | ||||||
4 | lottery, or any part
thereof, and into contracts for the | ||||||
5 | promotion of the lottery on behalf of
the Department with any | ||||||
6 | person, firm or corporation, to perform any of the
functions | ||||||
7 | provided for in this Act or the rules and regulations | ||||||
8 | promulgated
thereunder. The Department shall not expend State | ||||||
9 | funds on a contractual
basis for such functions unless those | ||||||
10 | functions and expenditures are expressly
authorized by the | ||||||
11 | General Assembly.
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12 | h. To enter into an agreement or agreements with the | ||||||
13 | management of state
lotteries operated pursuant to the laws of | ||||||
14 | other states for the purpose of
creating and operating a | ||||||
15 | multi-state lottery game wherein a separate and
distinct prize | ||||||
16 | pool would be combined to award larger prizes to the public
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17 | than could be offered by the several state lotteries, | ||||||
18 | individually. No
tickets or shares offered in connection with a | ||||||
19 | multi-state lottery game
shall be sold within the State of | ||||||
20 | Illinois, except those offered by and
through the Department. | ||||||
21 | No such agreement shall purport to pledge the full
faith and | ||||||
22 | credit of the State of Illinois, nor shall the Department | ||||||
23 | expend
State funds on a contractual basis in connection with | ||||||
24 | any such game unless
such expenditures are expressly authorized | ||||||
25 | by the General Assembly,
provided, however, that in the event | ||||||
26 | of error or omission by the Illinois
State Lottery in the |
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1 | conduct of the game, as determined by the multi-state
game | ||||||
2 | directors, the Department shall be authorized to pay a prize | ||||||
3 | winner or
winners the lesser of a disputed prize or $1,000,000, | ||||||
4 | any such payment to
be made solely from funds appropriated for | ||||||
5 | game prize purposes. The
Department shall be authorized to | ||||||
6 | share in the ordinary operating expenses
of any such | ||||||
7 | multi-state lottery game, from funds appropriated by the | ||||||
8 | General Assembly,
and in the event the multi-state game control | ||||||
9 | offices are physically
located within the State of Illinois, | ||||||
10 | the Department is authorized to
advance start-up operating | ||||||
11 | costs not to exceed $150,000, subject to
proportionate | ||||||
12 | reimbursement of such costs by the other participating state
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13 | lotteries. The Department shall be authorized to share | ||||||
14 | proportionately in
the costs of establishing a liability | ||||||
15 | reserve fund from funds appropriated
by the General Assembly. | ||||||
16 | The Department is authorized to transfer prize
award funds | ||||||
17 | attributable to Illinois sales of multi-state lottery game | ||||||
18 | tickets to
the multi-state control office, or its designated | ||||||
19 | depository, for deposit
to such game pool account or accounts | ||||||
20 | as may be established by the
multi-state game directors, the | ||||||
21 | records of which account or accounts shall
be available at all | ||||||
22 | times for inspection in an audit by the Auditor General
of | ||||||
23 | Illinois and any other auditors pursuant to the laws of the | ||||||
24 | State of
Illinois.
No multi-state game prize awarded to a | ||||||
25 | nonresident of Illinois, with
respect to a ticket or share | ||||||
26 | purchased in a state other than the State of
Illinois, shall be |
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1 | deemed to be a prize awarded under this Act for the
purpose of | ||||||
2 | taxation under the Illinois Income Tax Act.
All of the net | ||||||
3 | revenues accruing from the sale of multi-state lottery
tickets | ||||||
4 | or shares shall be transferred into the Lottery Supports | ||||||
5 | Schools Fund Common School Fund pursuant
to Section 7.2.
The | ||||||
6 | Department shall promulgate such rules as may be appropriate to
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7 | implement the provisions of this Section.
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8 | i. To make a continuous study and investigation of (1) the | ||||||
9 | operation and
the administration of similar laws which may be | ||||||
10 | in effect in other states
or countries, (2) any literature on | ||||||
11 | the subject which from time to time
may be published or | ||||||
12 | available, (3) any Federal laws which may affect the
operation | ||||||
13 | of the
lottery, and (4) the reaction of Illinois citizens to | ||||||
14 | existing and potential
features of the lottery with a view to | ||||||
15 | recommending or effecting changes
that will tend to serve the | ||||||
16 | purposes of this Act.
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17 | j. To report monthly to the State Treasurer and the Lottery | ||||||
18 | Control Board
a full and complete statement of lottery | ||||||
19 | revenues, prize disbursements and
other expenses for each month | ||||||
20 | and the amounts to be transferred to the Common
School Fund | ||||||
21 | pursuant to Section 7.2 or such other funds as are otherwise
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22 | authorized by Section 21.2 of this Act, and to
make an annual | ||||||
23 | report, which shall include a full and complete statement
of | ||||||
24 | lottery revenues, prize disbursements and other expenses, to | ||||||
25 | the Governor
and the Board. All reports required by this | ||||||
26 | subsection shall be public
and copies of all
such reports shall |
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1 | be sent to the Speaker of the House, the President of
the | ||||||
2 | Senate, and the minority leaders of both houses.
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3 | (Source: P.A. 94-776, eff. 5-19-06.)
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4 | (20 ILCS 1605/19) (from Ch. 120, par. 1169)
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5 | Sec. 19. Period for claiming prizes; unclaimed prizes. The | ||||||
6 | Division shall establish an appropriate period for the
claiming | ||||||
7 | of prizes for each lottery game offered. Each claim period | ||||||
8 | shall
be stated in game rules and written play
instructions | ||||||
9 | issued by the Superintendent in accordance with Section 7.1 of
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10 | this Act. Written play instructions shall be made available to | ||||||
11 | all players
through sales agents licensed to sell game tickets | ||||||
12 | or shares.
Prizes for lottery games which involve the purchase | ||||||
13 | of a physical lottery
ticket may be claimed only by | ||||||
14 | presentation of a valid winning lottery
ticket that matches | ||||||
15 | validation records on file with the Lottery; no
claim may be | ||||||
16 | honored which is based on the assertion that the ticket was
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17 | lost or stolen. No lottery ticket which has been altered, | ||||||
18 | mutilated, or
fails to pass validation tests shall be deemed to | ||||||
19 | be a winning ticket.
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20 | If no claim
is made for the money within the established | ||||||
21 | claim period, the prize may
be included in the prize pool of | ||||||
22 | such special drawing or drawings as the
Division may, from time | ||||||
23 | to time, designate. Unclaimed
multi-state game prize money may | ||||||
24 | be included in the multi-state
prize
pool for such special | ||||||
25 | drawing or drawings as the multi-state game directors
may, from |
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1 | time to time, designate. Any bonuses offered by the Department
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2 | to sales agents who sell winning tickets or shares shall be
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3 | payable to such agents regardless of whether or not the prize | ||||||
4 | money on the
ticket or share is claimed, provided that the | ||||||
5 | agent can be identified as
the vendor of the winning ticket or | ||||||
6 | share, and
that the winning ticket or share was sold on or | ||||||
7 | after January 1, 1984.
All unclaimed prize money not included | ||||||
8 | in the prize pool of a special
drawing shall be transferred to | ||||||
9 | the Lottery Supports Schools Fund Common School Fund .
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10 | (Source: P.A. 94-776, eff. 5-19-06.)
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11 | (20 ILCS 1605/20) (from Ch. 120, par. 1170)
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12 | Sec. 20. State Lottery Fund.
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13 | (a) There is created in the State Treasury a special fund | ||||||
14 | to be
known as the "State Lottery Fund". Such fund shall | ||||||
15 | consist of all revenues
received from (1) the sale of lottery | ||||||
16 | tickets or shares, (net of
commissions, fees
representing those | ||||||
17 | expenses that are directly proportionate to the
sale of tickets | ||||||
18 | or shares at the agent location, and prizes of less
than
$600 | ||||||
19 | which
have been validly paid at the agent
level), (2) | ||||||
20 | application fees,
and (3) all other sources including moneys | ||||||
21 | credited or transferred thereto
from
any other fund
or source | ||||||
22 | pursuant to law. Interest earnings of the State Lottery Fund
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23 | shall be credited to the Lottery Supports Schools Fund Common | ||||||
24 | School Fund .
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25 | (b) The receipt and distribution of moneys under Section |
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1 | 21.5 of this Act shall be in accordance with Section 21.5.
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2 | (c) The receipt and distribution of moneys under Section | ||||||
3 | 21.6 of this Act shall be in accordance with Section 21.6. | ||||||
4 | (d) The receipt and distribution of moneys under Section | ||||||
5 | 21.7 of this Act shall be in accordance with Section 21.7.
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6 | (e)
The receipt and distribution of moneys under Section | ||||||
7 | 21.8
of this Act shall be in accordance with Section 21.8.
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8 | (Source: P.A. 94-120, eff. 7-6-05; 94-585, eff. 8-15-05; | ||||||
9 | 95-331, eff. 8-21-07; 95-673, eff. 10-11-07; 95-674, eff. | ||||||
10 | 10-11-07; 95-876, eff. 8-21-08.)
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11 | (20 ILCS 1605/20.1) (from Ch. 120, par. 1170.1)
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12 | Sec. 20.1. Department account.
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13 | (a) The Department is authorized to pay validated prizes
up | ||||||
14 | to $25,000 from funds held by the Department in an account | ||||||
15 | separate and
apart from all public moneys of the State. Moneys | ||||||
16 | in this account shall be
administered by the Director | ||||||
17 | exclusively for the purposes of issuing payments
to prize | ||||||
18 | winners authorized by this Section. Moneys in this account | ||||||
19 | shall be
deposited by the Department into the Public | ||||||
20 | Treasurers' Investment Pool
established under Section 17 of the | ||||||
21 | State Treasurer Act. The Department shall
submit vouchers from | ||||||
22 | time to time as needed for reimbursement of this account
from | ||||||
23 | moneys appropriated for prizes from the State Lottery Fund. | ||||||
24 | Investment
income earned from this account shall be deposited | ||||||
25 | monthly by the Department
into the Lottery Supports Schools |
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1 | Fund Common School Fund . The Department shall file quarterly | ||||||
2 | fiscal
reports specifying the activity of this account as | ||||||
3 | required under Section 16 of
the State Comptroller Act, and | ||||||
4 | shall file quarterly with the General Assembly,
the Auditor | ||||||
5 | General, the Comptroller, and the State Treasurer a report
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6 | indicating the costs associated with this activity.
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7 | (b) The Department is authorized to enter into an | ||||||
8 | interagency agreement
with the Office of the Comptroller or any | ||||||
9 | other State agency to establish
responsibilities, duties, and | ||||||
10 | procedures for complying with the Comptroller's
Offset System | ||||||
11 | under Section 10.05 of the State Comptroller Act. All federal
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12 | and State tax reporting and withholding requirements relating | ||||||
13 | to prize winners
under this Section shall be the responsibility | ||||||
14 | of the Department. Moneys from
this account may not be used to | ||||||
15 | pay amounts to deferred prize winners. Moneys
may not be | ||||||
16 | transferred from the State Lottery Fund to this account for | ||||||
17 | payment
of prizes under this Section until procedures are | ||||||
18 | implemented to comply with
the Comptroller's Offset System and | ||||||
19 | sufficient internal controls are in place
to validate prizes.
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20 | (Source: P.A. 87-1197; 88-676, eff. 12-14-94.)
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21 | (20 ILCS 1605/20.2 new)
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22 | Sec. 20.2. Lottery Supports Schools Fund. There is created | ||||||
23 | a Fund to be known as the Lottery Supports Schools Fund, which | ||||||
24 | is a non-appropriated trust fund held outside of the State | ||||||
25 | treasury. The Fund shall consist of moneys paid into it by the |
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1 | Division as provided in this Law. The Division shall certify | ||||||
2 | each month to the State Board of Education the proportion of | ||||||
3 | lottery sales in each school district in relation to statewide | ||||||
4 | lottery sales. The moneys in the Lottery Supports Schools Fund | ||||||
5 | must be distributed monthly by the State Board of Education to | ||||||
6 | each school district based upon that school district's portion | ||||||
7 | of statewide lottery sales. | ||||||
8 | Section 10. The School Code is amended by adding Section | ||||||
9 | 2-3.148 as follows: | ||||||
10 | (105 ILCS 5/2-3.148 new)
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11 | Sec. 2-3.148. Distributions from the Lottery Supports | ||||||
12 | Schools Fund. The State Board of Education shall make | ||||||
13 | distributions from the Lottery Supports Schools Fund as | ||||||
14 | provided in Section 20.2 of the Illinois Lottery Law; however, | ||||||
15 | the State Board of Education shall not take into account these | ||||||
16 | distributions when computing State aid under Section 18-8.05 of | ||||||
17 | this Code.
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18 | Section 99. Effective date. This Act takes effect upon | ||||||
19 | becoming law. |