Sen. Dave Syverson

Filed: 5/16/2017





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2    AMENDMENT NO. ______. Amend Senate Bill 1427 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Lottery Law is amended by changing
5Sections 3 and 7.12 as follows:
6    (20 ILCS 1605/3)  (from Ch. 120, par. 1153)
7    Sec. 3. For the purposes of this Act:
8    a. "Lottery" or "State Lottery" means the lottery, or
9lotteries, or the policy game commonly known as keno as
10established and operated pursuant to this Act.
11    b. "Board" means the Lottery Control Board created by this
13    c. "Department" means the Department of the Lottery.
14    d. (Blank).
15    e. "Chairman" means the Chairman of the Lottery Control



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1    f. "Multi-state game directors" means such persons,
2including the Director, as may be designated by an agreement
3between the Department and one or more additional lotteries
4operated under the laws of another state or states.
5    g. (Blank).
6    h. "Director" means the Director of the Department of the
8    i. "Management agreement" means an agreement or contract
9between the Department on behalf of the State with a private
10manager, as an independent contractor, whereby the private
11manager provides management services to the Lottery in exchange
12for compensation that may consist of, among other things, a fee
13for services and a performance-based bonus of no more than 5%
14of Lottery profits so long as the Department continues to
15exercise actual control over all significant business
16decisions made by the private manager as set forth in Section
18    j. "Person" means any individual, firm, association, joint
19venture, partnership, estate, trust, syndicate, fiduciary,
20corporation, or other legal entity, group, or combination.
21    k. "Private manager" means a person that provides
22management services to the Lottery on behalf of the Department
23under a management agreement.
24    l. "Profits" means total revenues accruing from the sale of
25lottery tickets or shares and related proceeds minus (1) the
26payment of prizes and retailer bonuses and (2) the payment of



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1costs incurred in the operation and administration of the
2lottery, excluding costs of services directly rendered by a
3private manager.
4    m. "Chief Procurement Officer" means the Chief Procurement
5Officer provided for under paragraph (4) of subsection (a) of
6Section 10-20 of the Illinois Procurement Code.
7(Source: P.A. 97-464, eff. 8-19-11; 98-499, eff. 8-16-13.)
8    (20 ILCS 1605/7.12)
9    (Section scheduled to be repealed on July 1, 2017)
10    Sec. 7.12. Internet program.
11    (a) The General Assembly finds that:
12        (1) the consumer market in Illinois has changed since
13    the creation of the Illinois State Lottery in 1974;
14        (2) the Internet has become an integral part of
15    everyday life for a significant number of Illinois
16    residents not only in regards to their professional life,
17    but also in regards to personal business and communication;
18    and
19        (3) the current practices of selling lottery tickets
20    does not appeal to the new form of market participants who
21    prefer to make purchases on the Internet at their own
22    convenience.
23    It is the intent of the General Assembly to create an
24Internet program for the sale of lottery tickets to capture
25this new form of market participant.



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1    (b) The Department shall create a program that allows an
2individual 18 years of age or older to purchase lottery tickets
3or shares on the Internet without using a Lottery retailer with
4on-line status, as those terms are defined by rule. The
5Department shall restrict the sale of lottery tickets on the
6Internet to transactions initiated and received or otherwise
7made exclusively within the State of Illinois. The Department
8shall adopt rules necessary for the administration of this
9program. These rules shall include, among other things,
10requirements for marketing of the Lottery to infrequent
11players, as well as limitations on the purchases that may be
12made through any one individual's lottery account. The
13provisions of this Act and the rules adopted under this Act
14shall apply to the sale of lottery tickets or shares under this
16    The Department may offer Lotto, Lucky Day Lotto, Mega
17Millions, Powerball, Pick 3, Pick 4, and other draw games that
18are offered at retail locations, as well as interactive instant
19win games, through the Internet program. The private manager
20shall obtain the Director's approval before providing any draw
21games or interactive instant win games and must submit the
22following information with the Director: the rationale for
23introducing the draw games or interactive instant win games,
24the consumer research on the target market, and the amount of
25net profit that is expected. Any games that are approved for
26sale by Lottery retail licensees are automatically approved for



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1sale on the Internet.
2    Before beginning the program, the Department of the Lottery
3must submit a request to the United States Department of
4Justice for review of the State's plan to implement a program
5for the sale of lottery tickets on the Internet and its
6propriety under federal law. The Department shall implement the
7Internet program only if the Department of Justice does not
8object to the implementation of the program within a reasonable
9period of time after its review.
10    The Department is obligated to implement the program set
11forth in this Section and Sections 7.15 and 7.16 only at such
12time, and to such extent, that the Department of Justice does
13not object to the implementation of the program within a
14reasonable period of time after its review. While the Illinois
15Lottery may only offer Lotto, Mega Millions, and Powerball
16games through the program, the Department shall request review
17from the federal Department of Justice for the Illinois Lottery
18to sell lottery tickets on the Internet on behalf of the State
19of Illinois that are not limited to just these games.
20    The Department shall authorize the private manager to
21implement and administer the program pursuant to the management
22agreement entered into under Section 9.1 and in a manner
23consistent with the provisions of this Section. If a private
24manager has not been selected pursuant to Section 9.1 at the
25time the Department is obligated to implement the program or
26has been terminated pursuant to Section 9.1, then the



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1Department shall not proceed with offering Lucky Day Lotto,
2Pick 3, Pick 4, other draw games, or interactive instant win
3games under the program until after the selection of a the
4private manager, at which time the Department shall authorize
5the private manager to implement and administer the program
6pursuant to the management agreement entered into under Section
79.1 and in a manner consistent with the provisions of this
8Section. The Department may continue offering Lotto, Mega
9Millions, and Powerball prior to the selection of a private
11    Nothing in this Section shall be construed as prohibiting
12the Department from implementing and operating a website portal
13whereby individuals who are 18 years of age or older with an
14Illinois mailing address may apply to purchase lottery tickets
15via subscription. Nothing in this Section shall also be
16construed as prohibiting the sale of Lotto, Mega Millions, and
17Powerball, Lucky Day Lotto, Pick 3, or Pick 4 games by a
18lottery licensee pursuant to the Department's rules.
19    (c) (Blank).
20    (d) (Blank). This Section is repealed on July 1, 2017.
21(Source: P.A. 98-499, eff. 8-16-13; 99-523, eff. 6-30-16.)
22    Section 99. Effective date. This Act takes effect upon
23becoming law.".